Document:

Exhibit 10.1

 

Executive
Employment Agreement

 

This Executive Employment
Agreement (this “Agreement”) is made as of the 24th day of October, 2014 by and between Liquid
Holdings Group, Inc., a Delaware corporation (“Holdings” or the “Employer”),
and Peter R. Kent (the “Executive”) (each of Employer and Executive, a “Party
and together, the “Parties”). Holdings, any direct or indirect wholly-owned subsidiary of Holdings, and
any other affiliate company of the foregoing are sometimes referred to herein individually as a “Liquid Company”
and collectively as the “Liquid Company Group.”

 

WHEREAS, the Employer
wishes to employ the Executive as its Chief Financial Officer upon the terms and conditions provided in this Agreement; and

 

WHEREAS, in consideration
of the employment terms and conditions set forth in this Agreement, including without limitation the grant of options referenced
in Section 4(d) hereof, the Executive is willing to be employed by the Employer as its Chief Financial Officer;

 

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

 

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

 

2.      Term.
Subject to the provisions for earlier termination as hereinafter provided, the term of this Agreement will begin on October 24,
2014 (the “Effective Date”) and will continue until December 31, 2016 (the “Initial
Term of Employment”). This Agreement will be automatically renewed for successive one (1) year terms (each, a “Renewal
Term”) unless either the Employer or the Executive sends written notice of termination to the other Party not less
than sixty (60) days prior to the expiration of the Initial Term of Employment or any Renewal Term. The Initial Term of Employment
together with any Renewal Term(s) will hereinafter be referred to as the “Term of Employment.”

 

3.      Position
and Duties; Place of Performance.

 

(a)          The
Executive will serve as Chief Financial Officer of Holdings, reporting to the Chief Executive Officer of Holdings, and in
such role Executive shall have such duties, responsibilities and authority customarily possessed by an executive in such position
(subject to the input, direction and oversight of his supervisor and of the Board of Directors of Holdings (the “Board”)),
together with such other duties as may reasonably be assigned from time-to-time by the Board.

 

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

 

(c)          The
Executive shall at all times comply with, and be subject to, such reasonable policies, procedures, rules and regulations as the
Employer may establish and maintain in effect from time to time, including without limitation the Employer’s Code of Business
Conduct (collectively, the “Policies”).

 

    	 

    	 

    

  

4.      Compensation.

 

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

 

(b)          Annual
Bonus. During the Term of Employment, the Executive shall be eligible to receive an annual performance bonus, with a target
of 50% of Base Salary, for each fiscal year of the Employer at the discretion of the Employer, payable in cash (each an “Annual
Bonus”), which shall be determined in accordance with criteria established by the Board or any compensation committee
appointed by the Board. No Annual Bonus will be payable in respect of 2014.

 

(c)          Incentive
Compensation Awards. The Executive shall be entitled to participate in any equity-based compensation plan (or similar substitute
equity incentive plan) of the Employer as determined by the Board.

 

(d)          Option
Grant. As an inducement to become an employee of Employer, the Executive shall be entitled to receive options to purchase one
million (1,000,000) shares of the Employer’s common stock (the “Options”) at a strike price determined
by the Human Resources and Compensation Committee of the Board at the time of grant and otherwise on terms substantially similar
to those applicable to grants of incentive compensation pursuant to the Employer’s 2012 Amended and Restated Stock Incentive
Plan, including without limitation vesting of one third of the Options on each of the first three anniversaries of the Effective
Date.

 

(e)          Executive
Benefits.

 

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

 

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

 

(f)          Expenses.
The Executive will be entitled to reimbursement by the Employer for the out-of-pocket expenses incurred by him in performing services
under this Agreement to the extent such expenses are reimbursable under Employer’s expense reimbursement policies.

 

(g)          Paid
Time Off. The Executive shall be entitled to paid time off (“PTO”) of twenty (20) days per year and
such other paid absences in accordance with the Policies as in effect for other senior executives of the Employer. The Executive
shall have five (5) days of PTO in respect of the year ending December 31, 2014.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)        any
change in Executive’s principal place of work to a location more than fifty (50) miles outside the Borough of Manhattan,
New York City, New York without the prior written consent of Executive; or

 

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

 

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

 

6.      Compensation
Upon Termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(ii)         continuation
of the Base Salary (the “Severance Payments”), at the rate in effect on the date of Executive’s
termination of employment (determined without regard to any reduction constituting Good Reason) and, subject to Section 6(d),
payable to the Executive in accordance with the Employer’s standard payroll procedures, for a period of nine (9) months (increasing
to twelve (12) months after the Initial Term of Employment) from the date of termination (the “Severance Period”);

 

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

 

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

 

(v)         should
such termination occur during the Initial Term of Employment, the accelerated vesting to the date of termination of the next unvested
tranche of (A) the Options, and (B) any other incentive compensation received by the Executive, in each case that would otherwise
vest but for the termination;

 

(vi)        should
such termination occur within twelve (12) months of a Change of Control (as defined below in paragraph (d) of this Section 6),
the accelerated vesting to the date of termination of all unvested (A) Options and (B) other incentive compensation received by
the Executive; and

 

(vii)       if
the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”),
reimbursement by Employer for the difference between the monthly COBRA premium paid by the Executive for himself and his dependents
and the monthly premium amount paid by similarly situated active executives. Such reimbursement shall be paid to the Executive
on the 15th of the month immediately following the month in which the Executive timely remits the premium payment. The
Executive shall be eligible to receive such reimbursement until the earliest of: (i) the end of the Severance Period; (ii) the
date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the date on which the Executive becomes
eligible to receive substantially similar coverage from another employer. Notwithstanding the foregoing, if the Company’s
making payments under this Section 6(c)(vi) would violate the nondiscrimination rules applicable to non-grandfathered
plans, or result in the imposition of penalties under the Patient Protection and Affordable Care Act of 2010 and the related regulations
and guidance promulgated thereunder (the “PPACA”), the Parties agree to reform this Section 6(c)(vi)
in a manner as is necessary to comply with the PPACA.

 

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(d)          For
purposes of this Agreement, a “Change of Control” shall be deemed to occur upon the happening of any of the following
during the Term of Employment:

 

(i)          Individuals
who, as of the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason
to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the Effective Date whose
selection or nomination for election was approved by a vote of the Incumbent Directors then on the Board (either by a specific
vote or by approval of the Employer’s proxy statement in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or
nominated as a director of the Employer as a result of an actual or threatened election contest (“Election Contest”)
or other actual or threatened solicitation of proxies or consent by or on behalf of any “person” (as such term is defined
in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used
in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy Contest”), including
by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director.

 

(ii)         Any
person becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Employer representing fifty percent (50%) or more of the combined voting power of the Employer’s then
outstanding securities eligible to vote for the election of the Board (the “Voting Securities”); provided,
however, that the event described in this paragraph (ii) shall not be deemed to be a Change of Control of the Employer by virtue
of any of the following acquisitions: (a) by any Liquid Company; (b) by any employee benefit plan (or related trust) sponsored
or maintained by any Liquid Company, (c) by any underwriter temporarily holding securities pursuant to an offering of such securities,
(d) pursuant to a Non-Qualifying Transaction (as defined below in paragraph (d)(iii) of this Section 6), (e) pursuant to
any acquisition by the Executive or any group of persons including the Executive (or any entity or entities controlled by the Executive
or any group of persons including the Executive), or (f) pursuant to any acquisition by Douglas Von Allmen (“Von Allmen”)
or any group of persons including Von Allmen (or any entity or entities controlled by Von Allmen or any group of persons including
Von Allmen).

 

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(iii)        The
consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving any Liquid
Company that requires the approval of the Employer’s stockholders, whether for such transaction or the issuance of securities
in the transaction (a “Reorganization”), or sale or other disposition of all or substantially all of
the Employer’s assets to an entity that is not an affiliate of the Employer (a “Sale”), unless
immediately following such Reorganization or Sale: (a) more than 50% of the total voting power of (x) the corporation resulting
from such Reorganization or the corporation which has acquired all or substantially all of the assets of the Employer (in either
case, the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly
or indirectly has beneficial ownership of at least a majority of the voting securities eligible to elect directors of the Surviving
Corporation (the “Parent Corporation”), is represented by Voting Securities that were outstanding immediately
prior to such Reorganization or Sale (or, if applicable, is represented by shares into which such Voting Securities were converted
pursuant to such Reorganization or Sale), and such voting power among the holders thereof is in substantially the same proportion
as the voting power of such Voting Securities among the holders thereof immediately prior to the Reorganization or Sale, (b) no
person (other than the Executive, affiliates of the Executive, Von Allmen, affiliates of Von Allmen or any employee benefit plan
(or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), becomes the beneficial owner,
directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect directors
of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (c) at least a majority of the
members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
following the consummation of the Reorganization of the Reorganization or Sale were Incumbent Directors at the time of the Board’s
approval of the execution of the initial agreement providing for such Reorganization or Sale (any Reorganization or Sale which
satisfied all of the criteria specified in (a), (b) and (c) above shall be deemed to be a “Non-Qualifying Transaction”).

 

(iv)        The
stockholders of the Employer approve a plan of complete liquidation or dissolution of the Employer.

 

Notwithstanding the foregoing,
a Change of Control of the Employer shall not be deemed to occur solely because any person acquires beneficial ownership of more
than 50% of the Voting Securities as a result of the acquisition of Voting Securities by the Employer which reduces the number
of Voting Securities outstanding; provided, that if after such acquisition by the Employer such person becomes the beneficial owner
of additional Voting Securities that increases the percentage of outstanding Voting Securities beneficially owned by such person,
a Change of Control of the Employer shall then occur.

 

Furthermore, notwithstanding
the foregoing, a Change of Control shall not occur unless such transaction constitutes a change in the ownership of the Company,
a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company’s assets
under Section 409A (as defined in Section 20 below).

 

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

 

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

 

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

 

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

 

7.      Non-Competition
& Other Covenants.

 

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

 

(b)          During
the Term of Employment and for one (1) year after termination of the Executive’s employment or non-renewal of this Agreement
pursuant to Section 2 (the “Noncompete Period”), the Executive must not in North America, or in
any foreign country in which the Liquid Company Group is, as of the date of termination, conducting business or has taken significant
steps to commence conducting business, directly or indirectly, whether as an individual on the Executive’s own account, or
as a shareholder, partner, member, joint venturer, director, officer, employee, consultant, creditor and/or agent, of any person,
firm or organization or otherwise:

 

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

 

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

 

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

 

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

 

(d)          For
purposes of Section 7, the “Business” shall mean operation of a commercial “front end”
trading technology company and/or “risk management” technology company engaged in selling/licensing “front end”
trading systems and/or “risk management” systems to traders or firms and receiving remuneration for the license. A
“front end” is a program that enables a trader to enter orders to a single or multiple exchanges on a manual basis.
A “risk management” system is used to evaluate and quantify risk of traders’ and/or firms’ trading exposure.

 

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(e)          Notwithstanding
the foregoing, Section 7 shall not preclude the Executive from (i) creating a technology company that does not operate in
the financial services space, is not engaged in the Business and does not otherwise compete with any member of the Liquid Company
Group, or (v) creating technology that will support Executive’s personal trading activities, which technology will not be
sold, resold or licensed; provided that in all cases the Executive shall continue to be bound by the terms and conditions set forth
in the Proprietary Rights Agreement (as defined below).

 

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

 

8.      Rights
and Remedies Upon Breach.

 

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

 

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

 

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

 

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

 

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

 

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(b)          During
the ten-year period prior to the date of this Agreement:

 

(i)          no
petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or
similar officer was appointed by a court for the business or property of, Executive, or any partnership in which the Executive
was a general partner at or within two years before the time of such filing or appointment, or any corporation or business association
of which the Executive was an executive officer at or within two years before the time of such filing or appointment;

 

(ii)         the
Executive was not convicted in a criminal proceeding and is not named subject of a pending criminal proceeding (excluding traffic
violations and other minor offenses);

 

(iii)        the
Executive was not been the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court
of competent jurisdiction, permanently or temporarily enjoining the Executive from, or otherwise limiting, the following activities:

 

1)        acting
as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the U.S. Commodity Futures Trading Commission (the “CFTC”),
or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as
an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company,
or engaging in or continuing any conduct or practice in connection with such activity;

 

2)        engaging
in any type of business practice; or

 

3)        engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
or state securities laws or federal commodities laws;

 

(iv)        the
Executive was not the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal
or state authority barring, suspending or otherwise limiting for more than sixty (60) days the right of the Executive to engage
in any activity described above in paragraph (b)(iii)(1) of this Section 9, or to be associated with persons engaged in
any such activity;

 

(v)         the
Executive was not found by a court of competent jurisdiction in a civil action or by the U.S. Securities and Exchange Commission
(the “SEC”) to have violated any federal or state securities law, and the judgment in such civil action
or finding by the SEC was not subsequently reversed, suspended, or vacated;

 

(vi)        the
Executive was not found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any federal commodities
law, and the judgment in such civil action or finding by the CFTC was not subsequently reversed, suspended or vacated;

 

(vii)       the
Executive was not the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding,
not subsequently reversed, suspended or vacated, relating to an alleged violation of:

 

    	-10-

    	 

    

 

1)        any
federal or state securities or commodities law or regulation; or

 

2)        any
law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent
injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal
or prohibition order; or

 

3)        any
law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

(viii)      the
Executive was not the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any
self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section
1(a)(29) of the Commodity Exchange Act, as amended), or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member.

 

(c)          Employee
(i) was the subject of an Acceptance, Waiver & Consent (an “AWC”) in NASD Case No. C10020069, with
a resolution date of July 23, 2002, and (ii) has executed one or more AWCs on behalf of Employee’s employing firm. Employer
acknowledges that neither item (i) nor item (ii) in the preceding sentence, assuming their accuracy, shall be considered a violation
of the representations in paragraph (b) of this Section 9.

 

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

 

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

 

12.    Entire
Agreement. This Agreement and the At Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement
executed by the Executive as a condition to his employment by Employer, a form of which is attached hereto as Exhibit B
(the “Proprietary Rights Agreement”), contain the entire understanding of the Parties with regard to
their subject matter and supersede all prior agreements and understandings between the Parties with regard to their subject matter.

 

    	-11-

    	 

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-12-

    	 

    

  

20.    Tax
Withholding; Section 409A Compliance.

 

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

 

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

 

(c)          Notwithstanding
any provision of this Agreement to the contrary, if the Executive is a “specified employee” within the meaning of Section
409A, any payments or arrangements due upon or following a termination of the Executive’s employment under any arrangement
that constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A shall be delayed and
paid or provided, without interest, on the earlier of (i) the first business day after the date which is six months after the Executive’s
“separation from service” (as such term is defined in Section 409A and the regulations and other published guidance
thereunder) for any reason other than death, and (ii) the date of the Executive’s death. For the purposes of clarification,
any payments that are subject to Section 409A of the Code shall not include any payments on the occurrence of an involuntary termination
of employment that would satisfy the short-term deferral exclusions described in Section 1.409A-1(b)(4) of the Income Tax Regulations
or the separation pay exception described in Section 1.409A-1(b)(9) of the Income Tax Regulations; and such payments may be made
immediately upon such termination of employment.

 

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

 

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

 

    	-13-

    	 

    

  

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

 

	If to Holdings:	
        800 Third Avenue, 38th Floor

        New York, NY 10022

        Attention: General Counsel

        Telephone: (212) 293-1836

        E-mail: legal@liquidholdings.com

         

	If to the Executive:	
        Peter R. Kent

        118 Hiawatha Avenue

        Oceanport, New Jersey 07757

        Telephone:

        E-mail: prkent3@gmail.com 

 

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

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

    	-14-

    	 

    

  

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

 

	 	LIQUID HOLDINGS GROUP, INC.
	 	 
	 	By:	   /s/
    Brian M. Storms
	 	 	Name: Brian M. Storms
	 	 	Title: Chief Executive Officer
	 	 
	 	EXECUTIVE:
	 	 
	 	            /s/
    Peter R. Kent
	 	Peter R. Kent

 

Signature Page to

Executive Employment Agreement

 

    	 

    	 

    

  

EXHIBIT A

 

FORM OF RELEASE

 

    	 

    	 

    

   

SEPARATION
AGREEMENT AND RELEASE

 

This Separation
Agreement and Release (“Agreement”) is made by and between Peter Kent (“Employee”) and Liquid
Holdings Group, Inc., a Delaware corporation (“Employer”) (collectively referred to as the “Parties”
or individually referred to as a “Party”).

 

RECITALS

 

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

 

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

 

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

 

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

 

1.          Subject
to Employee’s compliance with this Agreement and Release, Employer agrees to provide Employee with severance in the amount
of ________________________, minus applicable withholdings and deductions, to be paid for a period of nine months after the Separation
Date. Employee may elect to continue health insurance coverage, following the Separation Date, in accordance with the provisions
of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) regardless of whether Employee enters into
this Agreement and Release. If Employee elects to continue coverage under COBRA under the circumstances set forth in Section 6
of the Employee’s Executive Employment Agreement with Employer, dated __________ (the “Employment Agreement”),
Employer will reimburse premiums to the extent provided in said Section 6 of the Employment Agreement. The consideration set forth
in this Paragraph 1 is inclusive of any and all amounts, including but not limited to attorneys’ fees, that may be claimed
by Employee or on Employee’s behalf against Employer. Employee’s benefits will be governed by applicable plan terms.

 

2.          Employee
will receive by __________________ any salary, wages, incentives, bonuses, commissions and any other type of compensation due
to Employee, to be paid in full for work performed through and including the Separation Date. Employee further acknowledges that,
as of the date of Employee’s signing of this Agreement and Release, Employee has sustained no injury or illness related
in any way to Employee’s employment with Employer for which a workers compensation claim has not already been filed.

 

    	 

    	 

    

  

3.          In
return for Employer’s agreement to provide Employee with the consideration referred to in Paragraph 1, Employee, for Employee
and Employee’s heirs, beneficiaries, devisees, privies, executors, administrators, attorneys, representatives, and agents,
and Employee’s and their assigns, successors and predecessors, hereby releases and forever discharges Employer, ADP TotalSource,
their respective parents, subsidiaries and affiliates (including without limitation Liquid Holdings Group, Inc.), and the officers,
directors, employees, members, agents, attorneys, predecessors, successors and assigns of each of the foregoing entities (collectively,
the “Released Parties”) from any and all actions, causes of action, suits, debts, claims, complaints, charges,
contracts, controversies, agreements, promises, damages, counterclaims, cross-claims, claims for contribution and/or indemnity,
claims for costs and/or attorneys’ fees, judgments and demands whatsoever, in law or equity, known or unknown, Employee
ever had, now has, or may have against the Released Parties as of the date of Employee’s signing of this Agreement and Release,
including without limitation any rights Employee may have under the Employment Agreement. This release includes, but is not limited
to, any claims alleging breach of express or implied contract, wrongful discharge, constructive discharge, breach of an implied
covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, negligent supervision or retention,
violation of the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Civil Rights Act of 1866,
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, claims pursuant to any other federal, state or
local law regarding discrimination, harassment or retaliation based on age, race, sex, religion, national origin, marital status,
disability, sexual orientation or any other unlawful basis or protected status or activity, and claims for alleged violation of
any other local, state or federal law, regulation, ordinance, public policy or common-law duty having any bearing whatsoever upon
the terms and conditions of, and/or the cessation of Employee’s employment with and by Employer. This release does not include
claims that may not be released under applicable law.

 

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

 

5.          This
Agreement and Release is not intended to interfere with Employee’s exercise of any protected, nonwaivable right, including
Employee’s right to file a charge with the Equal Employment Opportunity Commission or other government agency. By entering
into this Agreement and Release, however, Employee acknowledges that the consideration set forth herein is in full satisfaction
of any amounts to which Employee might be entitled and Employee is forever discharging the Released Parties from any liability
to Employee for any acts or omissions occurring on or before the date of Employee’s signing of this Agreement and Release.
This Agreement and Release is also not intended to diminish any right of indemnity that the Employee may enjoy in respect of his
actions or inactions during his tenure as an employee of Employer.

 

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

 

    	-2-

    	 

    

  

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

 

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

 

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

 

    	-3-

    	 

    

  

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

 

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

 

12.         Employee
agrees not to use, disclose to others, or permit anyone access to any of Employer’s trade secrets or confidential or proprietary
information without Employer’s express consent, and to return immediately to Employer all Employer property upon termination
of Employee’s employment. Employee shall not retain any copy or other reproduction whatsoever of any Employer property after
the termination of Employee’s employment. Employee will also comply with the At Will Employment, Confidential Information,
Invention Assignment and Arbitration Agreement executed by Employee.

 

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

 

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

 

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

 

16.         [RESERVED]

 

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

 

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

 

    	-4-

    	 

    

  

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

 

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

 

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

 

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

 

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

 

	 	 	 
	Peter Kent	 	For Liquid Holdings Group,
    Inc.
	 	 	 
	 	 	 
	Date	 	Date

 

Address for
Notices

 

	As to Employee:	As to Employer:
	Peter
    Kent	Liquid
    Holdings Group, Inc.
	118
    Hiawatha Avenue	800
    Third Ave., 38th Floor
	Oceanport,
    NJ  07757	New
    York, NY   10022
	Fax:  	Attn:
    General Counsel
	 	Fax:  (212)
    293-2472

 

    	-5-

    	 

    

 

EXHIBIT B

 

AT WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,
INVENTION ASSIGNMENT

AND ARBITRATION AGREEMENT

  

    	 

    	 

    

 

 

LIQUID
HOLDINGS GROUP, INC.

 

AT
WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,

INVENTION
ASSIGNMENT AND ARBITRATION AGREEMENT

 

As a condition
of my employment with Liquid Holdings Group, Inc., its subsidiaries, affiliates, successors or assigns (together the “Company”),
and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the
Company, I agree to the following:

 

1.           At-Will
Employment. I UNDERSTAND AND ACKNOWLEDGE THAT, EXCEPT AS EXPLICITLY SET FORTH IN MY EXECUTIVE EMPLOYMENT AGREEMENT WITH THE
COMPANY, DATED AS OF OCTOBER 24, 2014, MY EMPLOYMENT WITH THE COMPANY IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES “AT-WILL”
EMPLOYMENT AND THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE OR FOR ANY OR NO CAUSE,
AT THE OPTION EITHER OF THE COMPANY OR MYSELF, WITH OR WITHOUT NOTICE.

 

2.           Confidential
Information.

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

3.           Inventions.

 

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

 

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

 

    	-2-

    	 

    

  

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

 

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

 

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

 

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

 

    	-3-

    	 

    

  

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

 

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

 

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

 

8.          Business
Policies. I agree to diligently adhere to the Company’s business policies, including without limitation the Code
of Business Conduct, the Insider Trading Policy and the Guidelines for Public Disclosures and Communications with
the Investment Community.

 

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

 

10.         Arbitration
and Equitable Relief.

 

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

 

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

 

    	-4-

    	 

    

  

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

 

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

 

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

 

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

 

11.         General
Provisions.

 

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

 

B.           Entire
Agreement; Amendment. This Agreement and the Employment Agreement set forth the entire agreement and understanding between
the Company and me relating to their subject matter and supersede all prior discussions or representations between us including,
but not limited to, any representations made during my interview(s) or relocation negotiations, whether written or oral. No modification
of or amendment to this Agreement will be effective unless in writing signed by the Company and me. Any subsequent change or changes
in my duties, obligations, rights salary or compensation will not affect the validity or scope of this Agreement.

 

    	-5-

    	 

    

  

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

 

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

 

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

 

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

 

G.           Waiver.
No waiver by a party of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by a party
of any right under this Agreement shall be construed as a waiver of that right in any other circumstance or of any other right.
Neither party shall be required to give notice to enforce strict adherence to all terms of this Agreement.

 

	Date: 	 	 	 	 
	 	 	 	 	Signature
    of Employee
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print
    Name of Employee
	Witness: 	 	 	 	 

 

    	-6-

    	 

    

  

Exhibit
A

 

LIST OF
PRIOR INVENTIONS

AND ORIGINAL
WORKS OF AUTHORSHIP

 

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

 

	Title	 	Date	 	Identifying
    Number or Brief

    Description
	 	 	 	 	 
	 	 	 	 	 

 

___ No inventions
or improvements

 

___ Additional
Sheets Attached

 

	Date: 	 	 	 	 
	 	 	 	 	Signature
    of Employee
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Print
    Name of Employee

 

    	-7-

    	 

    

  

Exhibit B

  

TERMINATION
CERTIFICATION

 

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

 

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

 

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

 

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

 

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

 

I HAVE READ
THE ABOVE AND UNDERSTAND ITS CONTENTS.

 

	 	 	NOT
    FOR SIGNATURE
	Date	 	Employee
    Signature

 

Exit interview
conducted by _______________________ on ______________

 

    	-8-Exhibit 10.1 Shareholders Agreement

Exhibit 10.1

SHAREHOLDERS’ AGREEMENT 
 
DATED AS OF OCTOBER 30, 2014 
 
AMONG 
 
CHC GROUP LTD., 
 
CD&R CHC HOLDINGS, L.P.,
AND 
 
THE OTHER PARTIES HERETO

TABLE OF CONTENTS
	
		
	 
	Page

	ARTICLE I
	2

	INTRODUCTORY MATTERS
	2

	Section 1.1 Defined Terms
	2

	Section 1.2 Construction
	5

	ARTICLE II
	5

	CORPORATE GOVERNANCE MATTERS
	5

	Section 2.1 Rights of CD&R Designator
	5

	Section 2.2 Election of Directors
	6

	Section 2.3 Standstill
	8

	Section 2.4 Lock-Up
	9

	Section 2.5 Legend
	10

	Section 2.6 Preemptive Rights
	11

	Section 2.7 Consent Rights
	13

	ARTICLE III
	13

	INFORMATION
	13

	Section 3.1 Books and Records; Access
	13

	Section 3.2 Certain Reports
	13

	Section 3.3 Confidentiality
	13

	Section 3.4 Tax Matters
	14

	ARTICLE IV
	14

	GENERAL PROVISIONS
	14

	Section 4.1 Termination
	14

	Section 4.2 Notices
	14

	Section 4.3 Amendment; Waiver
	16

	Section 4.4 Further Assurances
	16

	Section 4.5 Assignment
	16

	Section 4.6 Governing Law
	16

	Section 4.7 Jurisdiction
	16

	Section 4.8 Specific Performance
	17

	Section 4.9 Entire Agreement
	17

	Section 4.10 Severability
	17

	Section 4.11 Table of Contents, Headings and Captions
	17

	Section 4.12 Counterparts
	17

	Section 4.13 Effectiveness
	17

i

SHAREHOLDERS’ AGREEMENT
This Shareholders’ Agreement is entered into as of October 30, 2014 by and among CHC Group Ltd., a Cayman Islands exempted company (the “Company”), CD&R CHC Holdings, L.P., a Cayman Islands exempted limited partnership (“Shareholder”) and each of the other parties identified on the signature pages hereto, and, solely for purposes of Section 2.3 and Section 3.3 hereof, Clayton, Dubilier & Rice Fund IX, L.P., a Cayman Islands exempted limited partnership, acting by its general partner CD&R Associates IX, L.P., a Cayman Islands exempted limited company (the “Purchaser”) and solely for purposes of Section 2.3 and Section 3.3 hereof, Clayton, Dubilier and Rice, LLC, a Delaware limited liability company (the “CD&R Manager”).
RECITALS
WHEREAS, the Company and the Purchaser have entered into the Investment Agreement, dated as of August 21, 2014, among the Company, the Purchaser and Clayton, Dubilier and Rice, LLC, a Delaware limited liability company (as amended, the “Investment Agreement”), pursuant to which the Company has agreed to issue and sell to Purchaser and Purchaser has agreed to purchase from the Company (the “Purchase”) Preferred Shares that are convertible into Ordinary Shares (including any Preferred Shares that are issued and purchased on the Second Closing Date or the Third Closing Date, the “Purchased Shares”); 
WHEREAS, on or prior to the First Closing Date, the Purchaser assigned its right to purchase the Purchased Shares to Shareholder; and
WHEREAS, in connection with the Purchase, the Company, Shareholder and the CD&R Parties wish to set forth certain understandings between such parties, including with respect to certain governance matters.
AGREEMENT
NOW, THEREFORE, the parties agree as follows:

1

Article I 
INTRODUCTORY MATTERS
Section 1.1    Defined Terms. In addition to the terms defined elsewhere herein, the following terms have the following meanings when used herein with initial capital letters:
“Adjusted Ordinary Shares” means at the time of determination (i) the issued Ordinary Shares, (ii) Ordinary Shares issuable upon the conversion of issued Preferred Shares and (iii) Ordinary Shares issuable upon the conversion of any other issued convertible securities of the Company but only if at the time of determination the holder thereof has the right to so convert such securities.
“Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date hereof; provided, that no portfolio company of the Purchaser or any of its Affiliates (excluding, for the avoidance of doubt, the CD&R Parties) shall be deemed an Affiliate of any CD&R Party for purposes of this agreement.
“Agreement” means this Shareholders’ Agreement, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof.
“Amended and Restated First Reserve Registration Rights Agreement” has the meaning set forth in the Investment Agreement.
“Amended First Reserve Shareholders’ Agreement” means the First Reserve Shareholders’ Agreement (as defined in the Investment Agreement), as amended by the Amendment to the First Shareholders’ Agreement (as defined in the Investment Agreement).
“Attorney” has the meaning set forth in Section 3.3.
“Authorizing Resolutions” has the meaning set forth in the Investment Agreement.
“Beneficial Ownership” or “Beneficially Own” shall have the meaning given such term in Rule 13d-3 under the Exchange Act and a Person’s Beneficial Ownership of securities shall be calculated in accordance with the provisions of such Rule; provided, however, that for purposes of determining any Person’s Beneficial Ownership, such Person shall be deemed to be the Beneficial Owner of any Equity Securities which may be acquired by such Person, whether within 60 days or thereafter, upon the conversion, exchange, redemption or exercise of any warrants, options, rights or other securities issued by the Company or of its Subsidiaries to such Person; provided, that the CD&R Parties shall not be deemed to “Beneficially Own” any securities of the Company held or owned by any portfolio company of the Purchaser or any of its Affiliates (excluding, for the avoidance of doubt, the CD&R Parties) and; provided, further, that no Person shall be deemed to Beneficially Own any security solely as a result of such Person’s execution of this Agreement or either Voting Agreement.
“Board” means the board of directors of the Company.
“Business Day” means a day other than a Saturday, Sunday, federal or New York State holiday or other day on which commercial banks in New York City are authorized or required by law to close.
“CD&R Designee” has the meaning set forth in Section 2.1(c).

2

“CD&R Designator” means Shareholder or such other CD&R Party, or any group of CD&R Parties collectively, then holding of record a majority of Adjusted Ordinary Shares held of record by all CD&R Parties.
“CD&R Entities” means the Purchaser and its Affiliates.
“CD&R Manager” has the meaning set forth in the preamble.
“CD&R Parties” means Shareholder and any other CD&R Entities that may from time to time become parties hereto.
“CD&R Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date hereof, between the Company, Shareholder and the other parties thereto, as amended.
“Closing Dates” has the meaning set forth in the Investment Agreement.
“Code” means the United States Internal Revenue Code of 1986, as amended.
“Company” has the meaning set forth in the preamble.
“Company Group” has the meaning set forth in the Investment Agreement.
“Company Group Member” has the meaning set forth in the Investment Agreement.
“Control” (including its correlative meanings, “Controlled by” and “under common Control with”) means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of a Person.
“Director” means any director of the Company.
“Equity Securities” means the equity securities of the Company, including the Preferred Shares and the Ordinary Shares.
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as the same may be amended from time to time.
“First Closing” has the meaning set forth in the Investment Agreement.
“First Closing Date” has the meaning set forth in the Investment Agreement.
“First Reserve” means 6922767 Holding (Cayman) Inc. and each other Holder (as defined in the Amended and Restated First Reserve Registration Rights Agreement) other than any CD&R Entity.
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Independent Director” means a director who is or would qualify as an “Independent Director” (as determined by the Board) pursuant to the listing standards of the New York Stock Exchange. Such individual shall not have, and in the period starting three years prior to the date of determination and ending on the date 

3

of determination, shall not have had, any material relationship with any of the CD&R Parties or their Affiliates or the Company.
“Information” has the meaning set forth in Section 3.3.
“Law” means any statute, law, regulation, ordinance, rule, injunction, order, decree, governmental approval, directive, requirement, or other governmental restriction or any similar form of decision of, or determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority.
“Lock-Up Period” has the meaning set forth in Section 2.4.
“New Security” has the meaning set forth in Section 2.6(a).
“Nominating and Corporate Governance Committee” means the Nominating and Corporate Governance Committee of the Board.
“Ordinary Shares” means the ordinary shares of a nominal or par value of $0.0001 per share, of the Company, and any other shares of the Company into which such shares are reclassified or reconstituted.
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or other form of business organization, whether or not regarded as a legal entity under applicable Law, or any Governmental Authority or any department, agency or political subdivision thereof.
“PFIC” means a Passive Foreign Investment Company (as defined under Sections 1291-1298 of the Code and the regulations thereunder).
“Preemptive Rights Portion” has the meaning set forth in Section 2.6(b).
“Preferred Shares” means the preferred shares, of a nominal or par value of $0.0001 per share, of the Company designated as “Convertible Preferred Shares”.
“Purchase” has the meaning set forth in the recitals.
“Purchased Shares” has the meaning set forth in the recitals.
“Purchaser” has the meaning set forth in the preamble.
“Representatives” has the meaning set forth in Section 3.3.
“Second Closing” has the meaning set forth in the Investment Agreement.
“Second Closing Date” has the meaning set forth in the Investment Agreement.
“Shareholder” has the meaning set forth in the preamble.
“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which: (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, representatives or trustees thereof is at the time owned or Controlled, directly or indirectly, by 

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that Person or one or more of the other Subsidiaries of that Person or a combination thereof; or (ii) if a limited liability company, partnership, association or other business entity, a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time owned or Controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or Control the managing member, managing director or other governing body or general partner of such limited liability company, partnership, association or other business entity.
“Total Number of Directors” means the total number of Directors comprising the Board.
“Transaction Documents” means this Agreement, the Investment Agreement, the Voting Agreement, the CD&R Registration Rights Agreement, the Amended First Reserve Shareholders’ Agreement and the Amended and Restated First Reserve Registration Rights Agreement.
“Transfer” (including its correlative meanings, “Transferor”, “Transferee” and “Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of (including through any hedging or other similar transaction or through providing a written order to issue Ordinary Shares issued upon conversion of any Preferred Share to another Person) any economic, voting or other rights in or to such security; provided, however, that notwithstanding anything to the contrary in this Agreement, a Transfer shall not include the Transfer of limited partnership interests in the Purchaser or the Transfer of interests in any CD&R Party to any Person that is Controlled by the Purchaser or its Affiliates (including, for the avoidance of doubt, CD&R Associates IX, L.P.) (provided, further, however, that any transaction that would result in any such Person ceasing to be controlled by the Purchaser or its Affiliates shall be considered a Transfer). When used as a noun, “Transfer” shall have such correlative meaning as the context may require.
“Voting Agreement” means the Post-Closing Voting Agreement, dated as of the date hereof, between Shareholder and 6922767 Holding (Cayman) Inc, as amended.
Section 1.2    Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. Unless the context otherwise requires: (a) “or” is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural include the singular, and (c) the words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.
ARTICLE II     
CORPORATE GOVERNANCE MATTERS
Section 2.1    Rights of CD&R Designator. Shareholder, in its role as the CD&R Designator, agrees and undertakes to act in accordance with, and give effect to, the instructions of the CD&R Parties when exercising any and all of the rights given to the CD&R Designator specified in this Agreement.

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Section 2.2    Election of Directors.  (a) Following the Second Closing Date, the CD&R Designator shall have the right, but not the obligation, to designate a number of individuals for election as Directors such that, upon the election of each such individual, and each other individual nominated by or at the direction of the Board or a duly-authorized committee of the Board, as a Director and taking into account any Director continuing to serve as such without the need for re-election, the number of CD&R Designees (as defined below) serving as Directors of the Company will be equal to the lowest whole number of Directors that is greater than or equal to: (1) 40% of the Total Number of Directors until such time as the CD&R Parties no longer Beneficially Own at least 40% of the Adjusted Ordinary Shares; (2) 30% of the Total Number of Directors for so long as the CD&R Parties Beneficially Own at least 30% but no longer Beneficially Own at least 40% of the Adjusted Ordinary Shares; (3) 20% of the Total Number of Directors for so long as the CD&R Parties Beneficially Own at least 20% but no longer Beneficially Own at least 30% of the Adjusted Ordinary Shares; and (4) 10% of the Total Number of Directors for so long as the CD&R Parties Beneficially Own at least 5% but no longer Beneficially Own at least 20% of the Adjusted Ordinary Shares.  Following the First Closing Date but prior to the Second Closing Date, the CD&R Designator shall have the right, but not the obligation, to designate a number of individuals for election as Directors such that, upon the election of each such individual, and each other individual nominated by or at the direction of the Board or a duly-authorized committee of the Board, as a Director and taking into account any Director continuing to serve as such without the need for re-election, the number of CD&R Designees serving as Directors of the Company will be equal to the lowest whole number of Directors that is greater than or equal to 16 2/3% of the Total Number of Directors.
(b)    From the First Closing until the Second Closing and thereafter until such time that the CD&R Parties no longer Beneficially Own at least 30% of the Adjusted Ordinary Shares, (i) the Company shall establish and maintain  a committee of the Board, consisting of two directors (both of whom shall be CD&R Designees designated by the CD&R Designator), delegated with the sole power and authority to identify and appoint a Chairman of the Board pursuant to the Articles, and (ii) such committee shall not  be dissolved without the prior written consent of the CD&R Designator.
(c)    For at least one year following the Second Closing Date, at least one of the Directors designated for nomination by the CD&R Designator shall be an Independent Director if the CD&R Designator has the right to designate for nomination at least four Directors pursuant to this Section 2.2.
(d)    If at any time the CD&R Designator has designated fewer than the total number of individuals that the CD&R Designator is then entitled to designate pursuant to Section 2.2(a), the CD&R Designator shall have the right to designate such additional individuals which it is entitled to so designate, in which case, any individuals nominated by or at the direction of the Board or any duly-authorized committee thereof for election as Directors to fill any vacancy on the Board shall include such designees, and the Company shall use its best efforts to (x) effect the election of such additional designees, whether by increasing the size of the Board or otherwise, and (y) cause the election of such additional designees to fill any such newly-created vacancies or to fill any other existing vacancies. Each such individual whom the CD&R Designator shall actually designate pursuant to this Section 2.2 and who is thereafter elected and qualifies to serve as a Director shall be referred to herein as a “CD&R Designee”.
(e)    If a vacancy is created at any time by the death, disability, retirement or resignation of any CD&R Designee, any individual nominated by or at the direction of the Board or any duly-authorized committee thereof to fill such vacancy shall be, and the Company shall use its best efforts to cause such vacancy to be filled, as soon as possible, by a new designee of the CD&R Designator, and the Company shall take, to the fullest extent permitted by law, at any time and from time to time, all actions necessary to accomplish the same.

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(f)    The Company shall, to the fullest extent permitted by law, include in the slate of nominees recommended by the Board at any meeting of shareholders called for the purpose of electing Directors, the persons designated pursuant to this Section 2.2 and use its best efforts to cause the election of each such designee to the Board at such meeting, including nominating each such individual to be elected as a Director as provided herein, recommending such individual’s election and soliciting proxies or consents in favor thereof.
(g)    In addition to any vote or consent of the Board or the shareholders of the Company required by applicable Law or the memorandum and articles of association of the Company, and notwithstanding anything to the contrary in this Agreement, for so long as this Agreement is in effect, any action by the Board to increase or decrease the Total Number of Directors shall require the prior written consent of the CD&R Designator, delivered in accordance with Section 3.12 of this Agreement.
(h)    The CD&R Designator shall notify the Company of the identity of the proposed CD&R Designees, in writing, on or before the time such information is reasonably requested by the Board or the Nominating and Corporate Governance Committee for inclusion in a proxy statement for a meeting of shareholders, together with all information about the proposed CD&R Designees as shall be reasonably requested by the Board or the Nominating and Corporate Governance Committee.  
(i)    Notwithstanding anything to the contrary herein, the CD&R Designator shall not be entitled to designate any CD&R Designee pursuant to Section 2.2(a) to the Board if the Board or the Nominating and Corporate Governance Committee reasonably determines that (i) the election of such CD&R Designee to the Board would cause the Company to not be in compliance with applicable Law (but, if the compliance relates to the lack of independence of the proposed CD&R Designee, only, after receiving the consent of the CD&R Designator pursuant to Section 2.2(g), after first increasing the size of the Board and appointing any necessary independent Directors to fill such newly created vacancies) or (ii) such CD&R Designee has been involved in any of the events enumerated in Item 2(d) or (e) of Schedule 13D under the Exchange Act or Item 401(f) of Regulation S-K under the Securities Act or is subject to any order, decree or judgment of any Governmental Authority prohibiting service as a director of any public company. In any such case described in clauses (i) or (ii) of the immediately preceding sentence, the CD&R Designator shall withdraw the designation of such proposed CD&R Designee, and, subject to the requirements of this Section 2.2(i), be permitted to designate a replacement therefor (which replacement CD&R Designee will also be subject to the requirements of this Section 2.2(i)). Subject to applicable NYSE listing standards (or other applicable requirements of any relevant stock exchange) or applicable Law, in no event shall any such CD&R Designee’s actual or potential lack of independence resulting from its relationship with a CD&R Entity (other than with respect to the Independent Director appointed pursuant to Section 2.2(c)) be considered to disqualify such CD&R Designee from being a member of the Board pursuant to this Section 2.2.  If requested by the Nominating and Corporate Governance Committee, the CD&R Designator shall consult with the Nominating and Corporate Governance Committee regarding its potential CD&R Designees prior to designating any CD&R Designee pursuant to Section 2.2(a) and shall provide to the Nominating and Corporate Governance Committee such information about the CD&R Designee as shall be reasonably requested by the Nominating and Governance Committee, including information of the type that the Nominating and Corporate Governance Committee requests from the other directors of the Company.
(j)    Upon the First Closing Date, the Company shall promptly upon the request of the CD&R Designator cause each committee of the Board to be comprised of a percentage of CD&R Designees in the manner consistent with Section 2.2(a), in each case to the extent permitted under applicable NYSE listing standards (or other applicable requirements of any relevant stock exchange) or applicable Law.

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(k)    Without limiting other circumstances in which the CD&R Designees may be required to recuse themselves under applicable Law, the CD&R Designator shall cause the CD&R Designees to recuse themselves from any decisions of the Board regarding (i) any adjustment to the Conversion Price of the Preferred Shares as contemplated by Section 9 of the Authorizing Resolutions, (ii) whether to pay Preferred Dividends (as defined in the Authorizing Resolutions) in cash as contemplated by Section 4 of the Authorizing Resolutions (it being understood that if prior to the applicable payment date the Directors (excluding the CD&R Designees) do not approve the payment of Preferred Dividends in cash, then, to the extent the Company may lawfully implement the same, the Company shall issue Preferred Shares pursuant to a Capitalisation Issue (as defined in the Authorizing Resolutions) in accordance with the Authorizing Resolutions; (iii) whether to require a conversion of the Preferred Shares as contemplated by Section 6(a)(ii) of the Authorizing Resolutions; (iv) whether to amend the terms of the Preferred Shares pursuant to Section 12(b) of the Authorizing Resolutions; or (v) any dispute with respect to the Investment Agreement; provided, however, that, in each case, prior to any vote upon or discussion of any such action or determination, the CD&R Designees shall be afforded the right to present to the remaining Directors their opinion, and the basis for such opinion, with respect to such determination.
(l)    As promptly as reasonable practicable following the request of any CD&R Designee, the Company shall enter into an indemnification agreement with such CD&R Designee, in the form entered into with the other members of the Board.
Section 2.3    Standstill.  (a) From the First Closing Date until the date on which the CD&R Designator is no longer entitled to designate a Director to the Board pursuant to Section 2.2, the CD&R Parties, the Purchaser and the CD&R Manager shall not, shall cause each other CD&R Entity or Affiliate of the Purchaser or the CD&R Manager not to, shall use its reasonable best efforts to cause any portfolio company of any CD&R Entity or Affiliate of the Purchaser or the CD&R Manager not to, and shall not knowingly direct, recommend or encourage any such portfolio company to knowingly, directly or indirectly, without the prior written approval of at least a majority of the Directors not designated by the CD&R Designator:
(1)    acquire, agree to acquire, propose or offer to acquire (including through any hedging or other similar transaction), Equity Securities or securities that are convertible or exchangeable into (or exercisable for), Equity Securities, other than as a result of (x) any stock split, stock dividend or subdivision of Equity Securities or (y) the exercise by the CD&R Parties of their preemptive rights pursuant to Section 2.6 below or (z) any Capitalization Issue in accordance with the Authorizing Resolutions or any conversion of the Preferred Shares pursuant to the Authorizing Resolutions;
(2)    transfer any Equity Securities into a voting trust or similar contract or subject any Equity Securities to any voting agreement, pooling arrangement or similar arrangement (other than the Voting Agreement), or grant any proxy with respect to any Equity Securities (other than to the Company or a person specified by the Company in a proxy card provided to shareholders of the Company by or on behalf of the Company);
(3)    enter, agree to enter, or publicly propose or offer to enter into any merger, business combination, sale of assets, recapitalization, restructuring or change in control transaction;
(4)    make, or in any way participate or engage in, any “solicitation” of “proxies” (as such terms are used in Section 14A of the Exchange Act and the regulations promulgated thereunder) to vote, or advise or knowingly influence any Person with respect to the voting of, any Equity 

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Securities, other than on behalf of the Company or to effectuate the governance arrangements contemplated by the Transaction Documents;
(5)    call, or seek to call, a meeting of the shareholders of the Company or initiate any shareholder proposal for action by shareholders of the Company, other than to effectuate the governance arrangements contemplated by the Transaction Documents;
(6)    form, join or in any way participate in a group (as defined in Section 13(d)(3) of the Exchange Act) with respect to any Equity Securities, other than with First Reserve or its Affiliates to the extent permitted by the Voting Agreement;
(7)    (i) Transfer any Equity Securities to any Person who or that is (or will become upon consummation of such sale, transfer or other disposition) a beneficial owner of 10% or more of the Adjusted Ordinary Shares; or (ii) without the prior written consent of the Company, on any single day, Transfer more than 10% of the Adjusted Ordinary Shares through the public markets, in each case, other than pursuant to an underwritten registered public offering; or
(8)    publicly disclose any intention, plan, arrangement or other contract prohibited by the foregoing.
(b)    The Purchaser, the CD&R Manager and the CD&R Parties shall not, shall cause each other CD&R Entity or Affiliate of the Purchaser or the CD&R Manager not to and shall use its reasonable best efforts to cause any portfolio company of any CD&R Entity or Affiliate of the Purchaser or the CD&R Manager not to knowingly, directly or indirectly, take any action that would reasonably be expected to require the Company to make a public announcement regarding the possibility of a business combination, merger, sale of assets or other type of transaction or matter described in Section 2.3(a). 
(c)    For the avoidance of doubt, this Section 2.3 shall in no way limit the ability of the Directors to act in their capacity as Directors, restrict any CD&R Entity from making private proposals to the Board, or limit the CD&R Parties’ ability to vote or Transfer (subject to Section 2.3(a)(7)) any Equity Securities.
(d)    The obligations of the Purchaser, the CD&R Manager and the CD&R Parties in this Section 2.3 shall terminate and be of no further effect if the CD&R Parties no longer Beneficially Own at least 20% of the Adjusted Ordinary Shares and (1) the Company enters into a definitive agreement with respect to a merger, business combination, or sale of all or substantially all of its direct and indirect assets, recapitalization or change of control transaction; (2) the Company commences a process to solicit proposals with respect to any of the transactions described in clause (1) of this Section 2.3(d), or publicly approves or recommends any of the transactions described in clause (1) of this Section 2.3(d); or (3) a third party acquires, makes an offer to acquire, or makes a public announcement with respect to its intention to make an offer to acquire (whether by a merger, business combination, sale of assets, recapitalization, restructuring, tender or exchange offer, or otherwise) 20% or more of the Company’s assets, or 20% or more of any class of securities of the Company and the Board publicly recommends in favor of such acquisition.
Section 2.4    Lock-Up. Except as otherwise permitted in this Agreement, until (i) with respect to the Preferred Shares, the eighth anniversary of the First Closing Date, and (ii) with respect to the Ordinary Shares, the first anniversary of the First Closing Date (as applicable, the “Lock-Up Period”), the CD&R Parties will not Transfer any Preferred Shares or any Ordinary Shares (including Ordinary Shares issued upon the conversion of Preferred Shares); provided, that if any Preferred Shares were to be converted pursuant to the terms of the Authorizing Resolutions and instead remain outstanding due to a failure or inability of 

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the Company to effect such conversion, and the Company has not cured such failure or inability to convert such Preferred Shares within 10 days of the occurrence of the event resulting in such failure or inability, the CD&R Parties shall be permitted to Transfer any such Preferred Shares after the first anniversary of the First Closing Date. Notwithstanding the foregoing, the CD&R Parties shall be permitted to Transfer any portion or all of their Preferred Shares or Ordinary Shares at any time under the following circumstances:
(1)    Transfers to any Controlled Affiliate of any CD&R Parties, but only if the transferee agrees in writing for the benefit of the Company (in form and substance satisfactory to the Company and with a copy thereof to be furnished to the Company) to be bound by the terms of this Agreement (any such transferee shall be included in the term “CD&R Parties”) and if the transferee and the transferor agree for the express benefit of the Company that the transferee shall Transfer the Preferred Shares and/or Ordinary Shares (including Ordinary Shares issued upon the conversion of Preferred Shares) so Transferred back to the transferor at or before such time as the transferee ceases to be a Controlled Affiliate of a CD&R Party;
(2)    Transfers by way of surrender to or repurchase by the Company or any Transfer to any Subsidiary of the Company;
(3)    Transfers that have been approved in writing by a majority of the Board excluding the CD&R Designees; or
(4)    If First Reserve is selling Ordinary Shares pursuant to an exercise of First Reserve’s demand or piggyback registration rights set forth in the Amended and Restated First Reserve Registration Rights Agreement, pursuant to an exercise of the CD&R Parties’ piggyback registration rights set forth in Section 2.1 of the CD&R Registration Rights Agreement.
Section 2.5    Legend.  (a) The CD&R Parties agree that all certificates or other instruments representing the Preferred Shares or Ordinary Shares subject to this Agreement will bear a legend substantially to the following effect:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH IN A SHAREHOLDERS’ AGREEMENT, DATED AS OF OCTOBER 30, 2014, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE ISSUER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH SHAREHOLDERS’ AGREEMENT AND (A) PURSUANT TO A REGISTRATION STATEMENT RELATING THERETO THAT IS EFFECTIVE UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF 

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THE PROVISIONS OF SUCH SHAREHOLDERS’ AGREEMENT.
(b)    Upon request of a CD&R Party, upon receipt by the Company of an opinion of counsel reasonably satisfactory to the Company to the effect that such legend is no longer required under the Securities Act and applicable state laws, the Company shall promptly cause the first paragraph of the legend to be removed from any certificate for any Preferred Shares or Ordinary Shares to be Transferred in accordance with the terms of this Agreement and the second paragraph of the legend shall be removed upon the expiration of such transfer and other restrictions set forth in this Agreement. Each of the CD&R Parties acknowledge that the Preferred Shares and Ordinary Shares issuable upon conversion of the Preferred Shares have not been registered under the Securities Act or under any state securities laws and agrees that it will not sell or otherwise dispose of any of the Preferred Shares or Ordinary Shares issuable upon conversion of the Preferred Shares except in compliance with this Agreement and the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws.
Section 2.6    Preemptive Rights.  (a) From the First Closing until such time as the CD&R Designator is no longer entitled to designate a Director to the Board pursuant to Section 2.2, if the Company makes any public or non-public offering of any Equity Securities or any securities that are convertible or exchangeable into (or exercisable for) Equity Securities, including, for the purposes of this Section 2.6, warrants, options or other such rights (any such security, a “New Security”) (other than (1) pursuant to any employee or director benefit plan or the granting or exercise of employee stock options or other equity incentives pursuant to the Company’s stock incentive plans or employment or consulting arrangements with the Company or any of its Subsidiaries, (2) issuances in connection with any acquisition (by sale, merger in which the Company is the surviving corporation, or otherwise) by the Company of equity in, or assets of, a business, including any joint venture or strategic partnership or to financial institutions, commercial lenders, brokers/finders or any similar party in connection with the incurrence or guarantee of indebtedness by the Company or any of its Subsidiaries, (3) issuances of any securities issued as a result of a stock split, stock dividend, reclassification or reorganization or similar event, (4) issuances of Equity Securities issued pursuant to a Capitalisation Issue in accordance with the Authorizing Resolutions or issued upon conversion, exchange or exercise of, or as a dividend on, the Preferred Shares then outstanding, if any, (5) issuances of Equity Securities issued upon conversion, exchange or exercise of, or as a dividend on, any convertible securities of the Company issued prior to the date of the Investment Agreement, (6) issuances of Equity Securities upon conversion, exchange or exercise of, or as a dividend on, any Equity Securities issued after the date hereof in a transaction to which this Section 2.6 applied, (7) issuances of Equity Securities pursuant to the Permitted Offering (as defined in the Investment Agreement), and (8) issuances of Equity Securities or issuance of Equity Securities upon conversion, exchange or exercise of, or as a dividend on, any Equity Securities issued pursuant to an exception described in clauses (1) through (7) above), Shareholder and each CD&R Party that purchased Preferred Shares on the Closing Dates or to whom Shareholder later transfers any of its Preferred Shares purchased on the Closing Dates (or Ordinary Shares issued upon conversion of such Preferred Shares) shall be afforded the opportunity to acquire from the Company such CD&R Party’s Preemptive Rights Portion of such New Securities for the same price as that offered to the other purchasers of such Equity Securities or other securities; provided, that the CD&R Parties shall not be entitled to acquire any New Securities pursuant to this Section 2.6 if the issuance of such New Securities to the CD&R Parties would require approval of the shareholders of the Company as a result of any such CD&R Party’s status as 

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an Affiliate of the Company, in which case, the Company may consummate the issuance of New Securities to other investors prior to obtaining approval of the shareholders of the Company but subject to the right of the CD&R Parties to purchase additional New Securities up to its Preemptive Rights Portion of such issuance following approval of the shareholders of the Company; provided, further, that (x) the Company shall use its reasonable best efforts to obtain the approval of the shareholders to approve the issuance of the New Securities to such CD&R Parties and (y) that, if the issuance of such New Securities is to be effected via a private placement, the Company shall use its commercially reasonable efforts to obtain commitments from the purchasers of such New Securities to vote in favor of the issuance of such New Securities to such CD&R Parties; provided, that the Company shall not be required to make any payment to such purchasers or make any changes to the terms of such New Securities that would be adverse to the Company.
(b)    Subject to the foregoing proviso, the amount of New Securities that each CD&R Parties shall be entitled to purchase in the aggregate shall be determined by multiplying (1) the total number of such offered shares of New Securities by (2) a fraction, the numerator of which is the number of Ordinary Shares held by such CD&R Party plus the number of Ordinary Shares represented by the Preferred Shares held by such CD&R Party on an as converted basis, as of such date, and the denominator of which is the number of Ordinary Shares then outstanding plus the number of Ordinary Shares represented by all then outstanding Preferred Shares on an as converted basis, as of such date (the “Preemptive Rights Portion”).
(c)    If the Company proposes to offer New Securities, it shall give Shareholder written notice of its intention, describing the price (or range of prices), anticipated amount of securities, timing and other terms upon which the Company proposes to offer the same (including, in the case of a registered public offering and to the extent possible, a copy of the prospectus included in the registration statement filed with respect to such offering) at least five (5) business days prior to such issuance (provided that, to the extent the terms of such offering cannot reasonably be provided five (5) business days prior to such issuance, notice of such terms may be given on the date of, but prior to, such issuance). The Company may provide such notice to Shareholder on a confidential basis prior to public disclosure of such offering. Shareholder may notify the Company in writing at any time on or prior to the business day immediately prior to the date of such issuance (or, if notice of all such terms has not been given prior to the business day immediately prior to the date of such issuance, at any time prior to such issuance) whether any of the CD&R Parties will exercise such preemptive rights and as to the amount of New Securities the CD&R Parties desires to purchase, up to the maximum amount calculated pursuant to Section 2.6(b). Such notice to the Company shall constitute a binding commitment by the CD&R Parties to purchase the amount of New Securities so specified at the price and other terms set forth in the Company’s notice to it. Subject to receipt of the requisite notice of such issuance, the failure of Shareholder to respond prior to the time a response is required pursuant to this Section 2.6(c) shall be deemed to be a waiver of the CD&R Parties’ purchase rights under this Section 2.6 only with respect to the offering described in the applicable notice.
(d)    Each CD&R Party shall purchase the securities that it has elected to purchase concurrently with the related issuance of such securities by the Company; provided, that if such related issuance is prior to the 12th business day following the date on which such CD&R Party has notified the Company that it has elected to purchase securities pursuant to this Section 2.6, then each CD&R Party shall purchase such securities within twelve (12) business days following the date of the related issuance. If the proposed issuance by the Company of securities which gave rise to the exercise by the CD&R Parties of its preemptive rights pursuant to this Section 2.6 shall be terminated or abandoned by the Company without the issuance of any securities, then the purchase rights of the CD&R Parties pursuant to this Section 2.6 shall also terminate as to such proposed issuance by the Company (but not any subsequent or future issuance), and any funds in respect thereof paid to the Company by the CD&R Parties in respect thereof shall be refunded in full.

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(e)    In the case of the offering of securities for consideration in whole or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board; provided, however, that such fair value as determined by the Board shall not exceed the aggregate market price of the securities being offered as of the date the Board authorizes the offering of such securities.
(f)    The election by any CD&R Parties not to exercise its subscription rights under this Section 2.6 in any one instance shall not affect their right as to any subsequent proposed issuance. 
(g)    The Company and the CD&R Parties shall cooperate in good faith to facilitate the exercise of the CD&R Parties’ rights pursuant to this Section 2.6, including securing any required approvals or consents.
Section 2.7    Consent Rights. Following the Second Closing Date and thereafter until such time as the CD&R Parties no longer Beneficially Own at least 30% (or, with respect to clause (3) below, 20%) of the Adjusted Ordinary Shares, the Company shall not take any of the following actions without the prior written consent of the CD&R Designator:
(1)    the adoption of any plan of liquidation, dissolution or winding up of the Company or the filing of any voluntary petition for bankruptcy, receivership or similar proceeding;
(2)    the issuance of any Equity Securities or any securities that are convertible or exchangeable into (or exercisable for) Equity Securities that would require approval of the shareholders of the Company (other than any approval of the shareholders of the Company required as a result of any CD&R Party’s status as an Affiliate of the Company) or any repurchase of Equity Securities (other than repurchases of Equity Securities issued in connection with any employee or director benefit plan or the granting or exercise of employee stock options or other equity incentives pursuant to the Company’s stock incentive plans or employment or consulting arrangements with the Company or any of its Subsidiaries);
(3)    any sale or other transfer of the Company or all or substantially all of the direct and indirect assets of the Company (including via merger, consolidation or similar transaction);
(4)    any acquisition or disposition of any business or division involving consideration in excess of $100 million (whether by merger, sale of stock, sale of assets or other similar transaction);
(5)    any incurrence of indebtedness by the Company or any of its Subsidiaries in excess of $100 million; and
(6)    the hiring or termination of the chief executive officer of the Company.
During the period from the First Closing Date until the Second Closing Date, the Company shall not take any of the above actions without the prior written consent of the CD&R Designator in each case to the extent that such consent right is permitted under applicable NYSE listing standards (or other applicable requirements of any relevant stock exchange) or applicable Law.
ARTICLE III     
INFORMATION
Section 3.1    Books and Records; Access. Subject to applicable law, until the date on which the CD&R Designator is no longer entitled to designate a Director to the Board pursuant to Section 2.2, the Company shall, and shall cause its Subsidiaries to, upon Shareholders’ reasonable request, permit the Shareholder and its designated representatives, at reasonable times and upon reasonable prior notice to the Company, to review the books and records of the Company or any of such Subsidiaries and to discuss the affairs, finances and condition of the Company or any of such Subsidiaries with the officers of the Company or any such Subsidiary; provided, however, that (i) such access shall not unreasonably disrupt the operations of the Company or any of its Subsidiaries and (ii) the Company shall not be required to disclose any privileged information of the Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Shareholder and the CD&R Entities without the loss of any such privilege.
Section 3.2    Certain Reports. Subject to applicable Law, until the date on which the CD&R Designator is no longer entitled to designate a Director to the Board pursuant to Section 2.2, the Company shall deliver or cause to be delivered to the Shareholder, at its request:
(a)    operating and capital expenditure budgets and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries that are provided to the Board or the board of directors of the Company’s Subsidiaries; and
(b)    to the extent otherwise prepared by the Company, such other reports and information as may be reasonably requested by Shareholder; provided, however, that (i) the Company shall not be required to provide any reports or information to the extent it would unreasonably disrupt the operations of the Company or any of its Subsidiaries and (ii) the Company shall not be required to disclose any privileged information of the Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Shareholder and the CD&R Entities without the loss of any such privilege.
Section 3.3    Confidentiality    . The Purchaser, the CD&R Manager and each CD&R Party will hold, and will cause its respective Affiliates and their respective directors, managers, officers, employees, agents, consultants, auditors, attorneys, financial advisors, financing sources and other consultants and advisors (“Representatives”) to hold, in strict confidence, unless disclosure to a regulatory authority is necessary in connection with any necessary regulatory approval, examination or inspection or unless disclosure is required by judicial or administrative process or by other requirement of law or the applicable requirements of any regulatory agency or relevant stock exchange (in which case, other than in connection with a disclosure in connection with a routine audit or examination by, or document request from, a regulatory or self-regulatory authority, bank examiner or auditor, the party disclosing such information shall provide the other party with prior written notice of such permitted disclosure), all non-public records, books, contracts, instruments, computer data and other data and information (collectively, “Information”) concerning the Company or any of its Subsidiaries furnished to it by or on behalf of the Company or any of its Subsidiaries pursuant to this Agreement (except to the extent that such information can be shown by the party receiving such Information to have been (1) previously known by such party from other sources, provided that such source was not known by such party to be bound by a contractual, legal or fiduciary obligation of confidentiality to the other party, (2) in the public domain through no violation of this Section 3.3 by such party or (3) later lawfully acquired from other sources by the party to which it was furnished), and no such party shall release or disclose such Information to any other person, except its Representatives; provided, that nothing herein, or in any confidentiality agreement with the Company entered into prior to the date hereof, shall prevent the Purchaser from disclosing Information on a confidential basis to (i) any advisory committee made up of its or any of its Affiliates’ direct or indirect limited partners, (ii) in connection with 

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any syndication of any indirect equity interest in the Company issued by the Purchaser or its Affiliates to any prospective limited partners, or other equity investors and/or their respective Representatives or (iii) any proposed transferee of any Preferred Shares or Ordinary Shares owned by any of the CD&R Parties in connection with any Transfer that is permitted under this Agreement.
Section 3.4    Tax Matters    . 
(a)    Following the First Closing, the Company shall monitor the status of each Company Group Member and shall undertake commercially reasonable actions to ensure that no such member should be characterized as a PFIC for any taxable year (as determined for U.S. federal income tax purposes) of such member.
(b)    Following the First Closing, the Company will use commercially reasonable efforts to promptly furnish to the Purchaser information reasonably requested in writing that the Company has in its possession or can reasonably obtain, create, or cause to be created, in order to enable the Purchaser or its direct or indirect investors to comply with any applicable tax reporting requirements with respect to the ownership or disposition of any Preferred Shares it holds.  Within a reasonable period of time following the end of the Company’s taxable year, such period not to exceed 4 months, the Company will make available to the Purchaser all information that would reasonably permit the Purchaser to determine whether the Company or any other Company Group Member was a PFIC for such taxable year.  If the Purchaser reasonably believes that it is likely that the Company or any other Company Group Member will be a PFIC for any taxable year, the Company will provide the Purchaser with the information necessary in order for the Purchaser or any direct or indirect investor therein, as the case may be, to timely and properly make an election under section 1295 of the Code to treat the Company or such other Company Group Member as a “qualified electing fund” or an election under Section 1298(b)(1) or Section 1291(d)(2) of the Code and the regulations thereunder and comply with the reporting requirements applicable to any such election.
(c)    The rights of the Purchaser in this 0 shall terminate and be of no further effect when the CD&R Designator is no longer entitled to designate a Director to the Board pursuant to Section 2.2. 
ARTICLE IV     
GENERAL PROVISIONS
Section 4.1    Termination. This Agreement shall terminate on the earlier to occur of (i) such time as the CD&R Designator is no longer entitled to designate a Director pursuant to Section 2.2(a), and (ii) the delivery of a written notice by the CD&R Designator to the Company requesting that this Agreement terminate; provided however that Sections 2.3 and 2.4 shall continue to apply following any such termination and shall only terminate in accordance with their terms (it being understood that for purposes of Section 2.3, the CD&R Designator shall not be considered no longer entitled to designate a Director pursuant to Section 2.2(a) by virtue of delivery of a written notice pursuant to clause (ii) of this Section 4.1).
Section 4.2    Notices. Any notice, designation, request, request for consent or consent provided for in this Agreement shall be in writing and shall be either sent by facsimile or email, personally delivered, mailed first class mail (postage prepaid) or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient at the address indicated on the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Notices and other such documents will be deemed to have been given or made hereunder when sent by facsimile or email (receipt confirmed), delivered personally, five days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.

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The Company’s address is:
CHC Group Ltd.  
c/o Intertrust Corporate Services (Cayman) Ltd. 
190 Elgin Avenue 
George Town, Grand Cayman KY1-9005, Cayman Islands 
Attn: Michael O’Neill  
Fax: (604) 232-8359 
Email: Mike.ONeill@chc.ca    
with a copy to (which copy alone shall not constitute notice):
Simpson Thacher & Bartlett LLP 
425 Lexington Avenue 
New York, New York 10017 
Attn: William E. Curbow, Esq. 
Telephone: (212) 455-3160 
Fax: (212) 455-2502 
Email: wcurbow@stblaw.com
and with a copy to (which copy alone shall not constitute notice):
Simpson Thacher & Bartlett LLP 
2 Houston Center – Suite 1475 
909 Fannin Street 
Houston, Texas 77010 
Attn: Christopher R. May 
Fax: (713) 821-5602 
Email: cmay@stblaw.com
and with a copy to (which copy alone shall not constitute notice):
Cooley LLP 
3175 Hanover Street 
Palo Alto, CA 
Attn: Louis Lehot 
Fax: (650) 849-7400 
Email: llehot@cooley.com
Shareholder’s and the CD&R Parties’ address is:
c/o Clayton, Dubilier & Rice, LLC  
375 Park Avenue, 18th Floor 
New York, NY 10152 
Attn: Nathan K. Sleeper 
Fax: (212) 407-5252 
Email: nsleeper@cdr-inc.com

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with a copy to (which copy alone shall not constitute notice):
Debevoise & Plimpton LLP 
919 Third Avenue 
New York, New York 10022 
Attn: Kevin A. Rinker 
Fax: (212) 521-7569 
Email: karinker@debevoise.com
Section 4.3    Amendment; Waiver. This Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the Company and the other parties hereto and each of the CD&R Parties other than the CD&R Designator hereby appoints the CD&R Designator as its attorney in fact (the “Attorney”) for and in the name of and on behalf of such party to negotiate and approve any amendments, supplements or modifications to this Agreement (including any change of parties thereto) as the Attorney shall think necessary, advisable, convenient or otherwise desirable and to approve, complete, amend and execute and deliver, on behalf of and in the name of such party, any document which effects or otherwise evidences such amendment, supplement or modification. Neither the failure nor delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
Section 4.4    Further Assurances. The parties hereto will sign such further documents, cause such meetings to be held, resolutions passed, exercise their votes and do and perform and cause to be done such further acts and things necessary, proper or advisable in order to give full effect to this Agreement and every provision hereof. To the fullest extent permitted by law, the Company shall not directly or indirectly take any action that is intended to, or would reasonably be expected to result in, CD&R or any CD&R Party being deprived of the rights contemplated by this Agreement. Without limiting the foregoing, the Company shall (i) comply with the terms and provisions of the Authorizing Resolutions, (ii) not take or fail to take any actions that would violate any terms or provisions of the Authorizing Resolutions and (iii) maintain in effect a sufficient number of authorized Ordinary Shares as necessary to effect any conversion of all issued and outstanding Preferred Shares and not issue or allot any Ordinary Shares such that the number of authorized but unissued Ordinary Shares would at such time be insufficient to permit the conversion of all issued Preferred Shares into Ordinary Shares at such time.
Section 4.5    Assignment. This Agreement will inure to the benefit of and be binding on the parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned without the express prior written consent of the other parties hereto, and any attempted assignment, without such consents, will be null and void; provided, however, that, without the prior written consent of the Company, a CD&R Party may assign this Agreement to a Controlled Affiliate of any CD&R Party that becomes a party hereto pursuant to Section 2.4(b)(1).
Section 4.6    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.
Section 4.7    Jurisdiction; Waiver of Jury Trial. The parties hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the state and federal courts located in the 

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Borough of Manhattan, State of New York for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby. The parties hereby irrevocably and unconditionally consent to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such action, suit or proceeding and irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to the laying of the venue of any such action, suit or proceeding in any such court or that any such action, suit or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such action, suit 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 this Section 4.7 shall be deemed effective service of process on such party. 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 4.8    Specific Performance. Each party hereto acknowledges and agrees that in the event of any breach of this Agreement by any of them, the other parties hereto would be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would be adequate and agrees that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of bond.
Section 4.9    Entire Agreement. This Agreement (together with the Transaction Documents) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof. There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof or thereof other than those expressly set forth herein and therein. This Agreement supersedes all other prior agreements and understandings between the parties with respect to such subject matter.
Section 4.10    Severability. If any provision of this Agreement, or the application of such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (i) the remainder of this Agreement shall not be affected thereby, and each other provision hereof shall be valid and enforceable to the fullest extent permitted by law, (ii) as to such Person or circumstance or in such jurisdiction such provision shall be reformed to be valid and enforceable to the fullest extent permitted by law and (iii) the application of such provision to other Persons or circumstances or in other jurisdictions shall not be affected thereby.
Section 4.11    Table of Contents, Headings and Captions. The table of contents, headings, subheadings and captions contained in this Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof.
Section 4.12    Counterparts. This Agreement and any amendment hereto may be signed in any number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable).
Section 4.13    Effectiveness. This Agreement shall become effective upon the First Closing Date.
[SIGNATURES BEGIN NEXT PAGE]

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IN WITNESS WHEREOF, the parties hereto have executed this Shareholders’ Agreement on the day and year first above written.
CHC GROUP LTD.
By:    /s/ Russ Hill     
    Name:  Russ Hill 
    Title: Vice President and Chief Compliance Officer

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SHAREHOLDER
CD&R CHC HOLDINGS, L.P.
By: CD&R Investment Associates IX, Ltd.
       its general partner

By:     /s/ Theresa A. Gore     
Name: Theresa A. Gore 
Title: Vice President, Treasurer and Assistant Secretary

[SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT]

 
Solely for purposes of Section 2.3 and Section 3.3:
CLAYTON, DUBILIER & RICE FUND IX, L.P.
By: CD&R Associates IX, L.P., its general partner
By: CD&R Investment Associates IX, Ltd., its general partner
By:     /s/ Theresa A. Gore     
Name: Theresa A. Gore 
Title: Vice President, Treasurer and Assistant Secretary
Solely for purposes of Section 2.3 and Section 3.3 hereof:

CLAYTON, DUBILIER & RICE, LLC

 
By:     /s/ Theresa A. Gore     
Name: Theresa A. Gore 
Title: Vice President, Treasurer and Assistant Secretary

[SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT]

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