Document:

EX-10.3

 Exhibit 10.3 
 LIQUID HOLDINGS GROUP, LLC 
 2012 STOCK INCENTIVE PLAN 

Adopted by the Board: November 2, 2012 
 Adopted by the Members: November 2, 2012 
 ARTICLE I 

PURPOSE 

The purpose of this Stock Incentive Plan (the “Plan”) is to advance the interests of Liquid Holdings Group, LLC (the
“Company”) by providing a means by which selected Employees, Directors and Advisors of the Company, and its Affiliates, are incented to perform through the opportunity to benefit from increases in value of the Common Units of the Company
(the “Shares”) from grants of Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Shares and Incentive Bonuses. 
 ARTICLE II 
 DEFINITIONS 

“ACT” means the Securities Act of 1933, as amended. 
 “ADVISOR” means any person engaged by the Company or an Affiliate to render advisory services as an independent contractor and who is compensated for such services, provided that the term
“Advisor” shall not include Directors. 
 “AFFILIATE” means any parent corporation or subsidiary corporation or entity of
the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f) respectively, of the Code. 

“AWARD” means the grant of an Option, Stock Appreciation Right, Restricted Stock Unit, Restricted Share or Incentive Bonus. 

“AWARD AGREEMENT” means a written agreement between the Company and a Recipient evidencing the terms and conditions of an individual Award
grant. The Award Agreement shall be in the form approved by the Board from time to time. Each Award Agreement shall be subject to the terms and conditions of the Plan. 
 “BOARD” means the Board of Managers of the Company. 
 “CAUSE” means a
determination by the Board, or of the board of directors of an Affiliate for whom the Recipient provides services, that the Recipient was terminated for certain actions, including but not limited to: (i) the Recipient committed an act of
material dishonesty in connection with their responsibilities as an Employee, Officer, Director, or Advisor; (ii) the Recipient failed to comply with the material terms of any written Company policy or rule as they may be in effect from time to
time during the Recipient’s term as an Employee, Officer, Director, or Advisor, and such failure is materially and demonstrably injurious to the Company; (iii) the Recipient breached any material term of a Stock Award Agreement or any
employment agreement entered into between the Recipient and the Company, or any other written agreement between the Recipient and the Company and such breach is materially and demonstrably injurious to the Company; (iv) the Recipient was
convicted of, or entered a plea of guilty or nolo contendere to, a felony or crime of moral turpitude; or (v) the Recipient engaged in gross misconduct or gross neglect of the Recipient’s duties and such misconduct or neglect is
materially and demonstrably injurious to the Company. 

  
 Page
1 of 15 

 “CODE” means the Internal Revenue Code of 1986, as amended, and any Internal Revenue Code adopted
in the future to replace the Internal Revenue Code of 1986. 
 “COMMITTEE” means any other committee appointed by the Board in
accordance with Article III to administer the Plan. 
 “CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR ADVISOR” means that the
provision of services to the Company or an Affiliate in the capacity of Employee, Director or Advisor is not interrupted or terminated. Continuous Status as an Employee, Director or Advisor shall not be considered interrupted in the case of
(i) any approved leave of absence, (ii) transfers between locations of the Company or among the Company, any Affiliate, or any successor, in any capacity as Employee, Director or Advisor, or (iii) any change in status as long as the
person remains in the service of the Company, Affiliate or successor in any capacity as an Employee, Director or Advisor (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military leave, or
any other authorized personal leave approved by the Company; provided, however, that any such authorized leave of absence shall be treated as Continuous Status as an Employee, Director or Advisor for the purposes of vesting only to the extent as may
be provided in the Company’s leave policy. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. Notwithstanding anything
to the contrary in this definitional paragraph, an Advisor’s status shall not be considered continuous unless the Advisor is and continues to be ready, willing and able to engage in substantial services to the Company. The Board, in its sole
discretion, shall in all cases determine whether Continuous Status as an Employee, Director or Advisor shall be considered interrupted or terminated. 
 “DIRECTOR” means a member of the Board or of the board of directors of an Affiliate. 

“DISABILITY” means a scenario where an individual is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. An individual shall not be considered to be
permanently and totally disabled unless he furnishes proof of the existence thereof in such form and manner, and at such times, as the Board may require. 
 “EMPLOYEE” means any person, including Officers and Executive Directors, employed by the Company or any Affiliate of the Company as determined under the rules contained in Code
Section 3401. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient by itself to constitute “employment” by the Company. 
 “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended. 
 “EXECUTIVE
DIRECTOR” means an individual who is an Officer of the Company and also serves as a member of the Board of Directors. 
 “FAIR MARKET
VALUE” means, as of any date, the value of a Share determined as follows: 
 (a) If the Shares are readily tradable on an
established securities market, the fair market value of a Share on the date of grant means the value determined based upon the last sale before or the first sale after the grant, the closing price on the trading day before or the trading day of the
grant of the Award, or any other reasonable basis using actual transactions in the Shares as reported by such market and consistently applied. 

  
 Page
2 of 15 

 (b) If the Shares are not readily tradable on an established securities market, the fair
market value of a Share on the date of grant means the value determined by a valuation of the Shares determined by an independent appraisal that meets the requirements of Section 401(a)(28)(C) of the Code and the regulations thereunder as of a
date that is no more than twelve (12) months before the relevant Option grant date. unless determined otherwise by the Board in a manner consistent with Section 409A of the Code. 
 “INCENTIVE BONUS” means an Award pursuant to which a Recipient may become entitled to receive an amount in cash and/or Shares, as determined by the Board, based on terms and conditions
established by the Board. 
 “INCENTIVE STOCK OPTION” means an Option intended to qualify as an incentive stock option (as set forth
in the Award Agreement) and that qualifies as an Incentive Stock Option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 “NON-QUALIFIED STOCK OPTION” means an Option not intended to qualify as an Incentive Stock Option (as set forth in the Award Agreement) or that does not qualify as an Incentive Stock Option.

 “OFFICER” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules
and regulations promulgated thereunder. 
 “OPTION” means the right, granted pursuant to the Plan, to purchase Shares at a specified
price per share for a specified period of time. 
 “RECIPIENT” means an Employee, Director or Advisor, or their permitted transferees,
who holds an outstanding Award. 
 “RESTRICTED SHARE” means an Award of Shares the grant, issuance, retention, vesting and/or
transferability of which is subject during specified periods of time to such conditions (including continued employment) and terms as the Board deems appropriate. 
 “RESTRICTED STOCK UNIT” means an Award denominated in units under which the issuance of Shares (or cash payment in lieu thereof) is subject to such conditions (including continued employment)
and terms as the Board deems appropriate. 
 “STOCK APPRECIATION RIGHT” means an Award that entitles the Recipient to receive, in cash
or Shares or a combination thereof, as determined by the Board, value equal to the excess of (i) the Fair Market Value of a specified number of Shares at the time of exercise over (ii) the exercise price of the right, as established by the
Board on the date of grant. 
 ARTICLE III 
 ADMINISTRATION 
 1. ADMINISTRATION BY THE BOARD. The Plan will be
administered by the Board who shall have the power, subject to, and within the limitations of the Plan, to: 
 1.1. Determine,
in its sole discretion, from time to time which of the persons eligible under the Plan shall be granted an Award; when and how each Award shall be granted; whether an Option granted will be an Incentive Stock Option or a Non-Qualified Stock Option,
or a combination of the foregoing; the provisions of each Award granted (which need not be identical), including the time or 

  
 Page
3 of 15 

 
times when a person shall be permitted to receive stock pursuant to an Award; the number of shares with respect to which an Award shall be granted to each such person; the vesting conditions of
each Award, and all other terms, conditions and restrictions applicable to each such Award or Shares acquired pursuant to an Award not inconsistent with the terms of the Plan. 
 1.2. Approve one (1) or more forms of Award Agreements. 
 1.3. Construe and
interpret, in its sole discretion, the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in
the Plan or in any Award Agreement evidencing an Award, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 1.4. Amend, modify or otherwise change in any manner the Plan or an Award as provided in Article X and to suspend or terminate the Plan as provided in Article XIII. 

1.5. Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests
of the Company that are not in conflict with the provisions of the Plan. 
 All decisions, determinations and interpretations of
the Board shall be final, binding and conclusive on any Recipient and any other person with an interest in the Plan or in an Award and on any Affiliate. 
 2. DELEGATION OF BOARD POWERS. 
 2.1. To the extent permitted by applicable law,
the Board may delegate to one (1) or more Officers of the Company the power to grant Awards and exercise such other powers under the Plan as the Board may determine. 
 2.2. To the extent permitted by applicable law, the Board may delegate any or all of its powers under the Plan to one (1) or more Committees or subcommittees of the Board. The Committee shall have,
during such delegation and in connection with the administration of the Plan, the powers theretofore possessed by the Board (and references in this Plan to the Board shall thereafter be to the Committee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. Administration of the Plan shall encompass, among other things, determining potential Recipients, establishing the terms of each Award, ensuring all
proposed grants are consistent with the terms of the Plan, granting Awards and ensuring a designated Company representative keeps accurate records of Awards granted and vested and/or exercised, as applicable. The Board may withdraw administration of
the Plan from the Committee at any time. The Board may abolish the Committee at any time and, upon abolition administration of the Plan shall revert automatically, without any further action on the Board’s part, to the Board. 

2.3. No member of the Board or of any Committee or subcommittee constituted under this Article III or any Officer acting pursuant to this
Article III shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or any Award. 

  
 Page
4 of 15 

 ARTICLE IV 
 SHARES SUBJECT TO THE PLAN 
 Subject to the provisions of Article IX
relating to adjustments upon changes in stock, up to a number of Shares equal to 10% of the total number of Common Units of the Company outstanding as of the date the Plan is approved by the Board (calculated on a fully-diluted basis) may be issued
pursuant to this Plan. If any Awards granted under the Plan shall terminate, expire or be cancelled for any reason as to any Shares, new Awards may thereafter be granted covering such Shares. In addition, the following Shares will also be added back
to the aggregate number of Shares available for issuance under this Plan: (i) Shares that were subject to a stock-settled Stock Appreciation Right and were not issued upon the net settlement or net exercise of such Stock Appreciation Right,
(ii) Shares delivered to or withheld by the Company to pay the exercise price of an Option, or (iii) Shares delivered to or withheld by the Company to pay the withholding taxes related an Award. Any Shares issued under this Plan may, in
whole or in part, be either authorized but unissued Shares or issued Shares reacquired by the Company. Notwithstanding anything herein to the contrary, the aggregate number of Shares that may be issued pursuant to the exercise of Incentive Stock
Options granted under this Plan shall not exceed a number of Shares equal to 10% of the total number of Common Units of the Company outstanding as of the date the Plan is approved by the Board (calculated on a fully-diluted basis), which number
shall be calculated and adjusted pursuant to Article IX only to the extent that such calculation or adjustment will not affect the status of any Option intended to qualify as an Incentive Stock Option under Section 422 of the Code. 

ARTICLE V 

ELIGIBILITY AND RESTRICTIONS 
 1. ELIGIBILITY. To the extent permitted by applicable law, Incentive Stock Options may be awarded to Employees. All other Awards may be granted to Employees, Officers, Directors or Advisors of the Company
or its Affiliates. 
 2. RESTRICTIONS. Incentive Stock Options granted under this Plan shall be subject to the following
restrictions: 
 2.1. Limitation on the Number of Shares. The aggregate Fair Market Value, determined as of the date of
Incentive Stock Option is granted, of the Shares with respect to which Incentive Stock Options are exercisable for the first time by a Recipient during any calendar year shall not exceed $100,000. If a Recipient is eligible to participate in any
other incentive stock option plans of the Company which are also intended to comply with the provisions of Section 422 of the Code, the applicable annual limitation shall apply to the aggregate number of Shares for which Incentive Stock Options
may be granted under all such plans. An Incentive Stock Option may be granted which exceeds $100,000 limitation, as long as under then applicable law the portion of such Option which is exercisable for shares in excess of the $100,000 limitation
shall be treated as a Non-Qualified Stock Option. 
 2.2. Ten Percent (10%) Shareholder. If any Recipient to whom an
Incentive Stock Option is granted pursuant to the provisions of the Plan is on the date of grant the owner of stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company (or of any
parent or subsidiary of the Company), then the following special provisions shall be applicable to the Incentive Stock Option granted to such individual: 
 2.2.1. The option price per Share subject to such Incentive Stock Option shall not be less than one hundred and ten (110%) of the Fair Market Value of one (1) Share on the date of grant; and

  
 Page
5 of 15 

 2.2.2. An Incentive Stock Option shall not have a term in excess of five (5) years
from the date of grant. 
 In determining stock ownership, a Recipient shall be considered as owning the voting capital stock owned, directly or
indirectly, by or for his/her brothers and sisters, spouse, ancestors, and lineal descendants. Voting capital stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned
proportionately by or for its shareholders, partners, or beneficiaries, as applicable. Shares with respect to which any such Recipient holds an Option shall not be counted. Additionally, outstanding capital stock shall include all capital stock
actually issued and outstanding immediately after the grant of the Option to the Recipient. Outstanding capital stock shall not include capital stock authorized for issue under outstanding Options held by the Recipient or any other person.

 ARTICLE VI 
 TERMS OF OPTIONS 
 1. AWARD AGREEMENT. The provisions of separate Award
Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof or as specifically set forth in the Award Agreement or otherwise) the substance of each of the following provisions: 

1.1. Price. The exercise price of each Option shall be not less than one hundred percent (100%) of the Fair Market Value of
the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption
or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 
 1.2.
Term. No Option shall be exercisable after the expiration of ten (10) years from the date of the grant. 
 1.3.
Number of Shares. Each Award Agreement shall specify the number of Shares to which it pertains. 
 1.4.
Consideration. The purchase price of the Shares acquired pursuant to an Option (the “Purchase Price”) shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash or check at the time the
Option is exercised, or (ii) as otherwise determined by the Board and set forth in the Award Agreement, including through an irrevocable commitment by a broker to pay over such amount from a sale of the Shares issuable under the Option, the
delivery of previously owned Shares or withholding of Shares otherwise deliverable upon exercise of the Option. 
 2. EXERCISE.
The total number of Shares subject to an Option may, but need not, be allotted in periodic installments (which may, but need not, be equal). The Award Agreement may provide that from time to time during each of such installment periods, the Option
may become exercisable (“vest”) with respect to some or all of the shares allotted to that period, and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the Option became
vested but was not fully exercised. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. Unless otherwise
specified in an Award Agreement, the Shares underlying an Option grant shall vest in three equal amounts: the first installment will be first exercisable on the one (1) year anniversary of the grant date and each succeeding installment will be
first exercisable one (1) year from the date that the immediately preceding installment became exercisable. Any vesting schedule can be accelerated in the discretion of the Board. 

  
 Page
6 of 15 

 3. NOTICE OF EXERCISE AND PAYMENT. An Option shall be exercisable only by delivery of a
written notice to the Board specifying the number of Shares for which it is exercised. If such Shares are not at the time effectively registered under the Act, as amended, the Recipient shall include with such notice a letter, in form and substance
satisfactory to the Company, confirming that such Shares are being purchased for the Recipient’s own account for investment and not with a view to the resale or distribution thereof. Payment shall be made in full at the time of delivery to the
Recipient of the Shares for which the Option was exercised. 
 ARTICLE VI 

TERMS OF STOCK APPRECIATION RIGHTS 
 1. AWARD AGREEMENT. The provisions of separate Award Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof or as specifically set forth in
the Award Agreement or otherwise) the substance of each of the following provisions: 
 1.1. Price. The exercise price of
each Stock Appreciation Right shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Stock Appreciation Right is granted. Notwithstanding the foregoing, a Stock Appreciation
Right may be granted with an exercise price lower than that set forth in the preceding sentence if such Stock Appreciation Right is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Section 409A of the Code. 
 1.2. Term. No Stock Appreciation Right shall be exercisable after the expiration of ten
(10) years from the date of the grant. 
 1.3. Number of Shares. Each Award Agreement shall specify the number of
Shares to which it pertains. 
 2. EXERCISE. The total number of Shares subject to a Stock Appreciation Right may, but need not,
be allotted in periodic installments (which may, but need not, be equal). The Award Agreement may provide that from time to time during each of such installment periods, the Stock Appreciation Right may become exercisable (“vest”) with
respect to some or all of the shares allotted to that period, and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the Stock Appreciation Right became vested but was not fully
exercised. The Stock Appreciation Right may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. Unless otherwise
specified in an Award Agreement, the Shares underlying a Stock Appreciation Right grant shall vest in three equal amounts: the first installment will be first exercisable on the one (1) year anniversary of the grant date and each succeeding
installment will be first exercisable one (1) year from the date that the immediately preceding installment became exercisable. Any vesting schedule can be accelerated in the discretion of the Board. 

3. NOTICE OF EXERCISE. A Stock Appreciation Right shall be exercisable only by delivery of a written notice to the Board specifying the
number of Shares for which it is exercised. If such Shares are not at the time effectively registered under the Act, as amended, the Recipient shall include with such notice a letter, in form and substance satisfactory to the Company, confirming
that such Shares are being acquired for the Recipient’s own account for investment and not with a view to the resale or distribution thereof. 

  
 Page
7 of 15 

 ARTICLE VII 
 TERMS OF RESTRICTED SHARES AND RESTRICTED STOCK UNITS 
 1. AWARD AGREEMENT.
The provisions of separate Award Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof or as specifically set forth in the Award Agreement or otherwise) the substance of each of the
following provisions: 
 1.1. Price. Each Award Agreement shall specify the price, if any, to be paid for the Shares
subject to the Award, and the means of payment. 
 1.2. Number of Shares. Each Award Agreement shall specify the number
of Restricted Shares or Restricted Stock Units to which it pertains. 
 1.3. Restrictive Legend. The restrictions on
transferability applicable to unvested Restricted Shares shall be enforced with the appropriate legends as determined by the Board. 
 2. VESTING. The total number of Restricted Shares or Restricted Stock Units subject to an Award under this Article VII may, but need not, be allotted in periodic installments (which may, but need not, be
equal). The Award Agreement may provide that from time to time during each of such installment periods, the Award may become vested and nonforfeitable with respect to some or all of the Shares or Restricted Stock Units allotted to that period. The
Award may be subject to such other terms and conditions on the time or times when it shall become vested (which may be based on performance or other criteria) as the Board may deem appropriate. Unless otherwise specified in an Award Agreement,
Awards of Restricted Shares and Restricted Stock Units shall vest in three equal amounts: the first installment will vest on the one (1) year anniversary of the grant date and each succeeding installment will vest one (1) year from the
date that the immediately preceding installment became vested. Any vesting schedule can be accelerated in the discretion of the Board. 
 3. VALUE OF RESTRICTED STOCK UNITS. Each Restricted Stock Unit will be equal to one Share and will entitle a Recipient to either the issuance of Shares or payment of an amount of cash determined with
reference to the value of Shares. 
 4. RESTRICTIONS ON AWARDS OF RESTRICTED SHARES. Except as otherwise specifically provided
in the Plan, unvested Restricted Shares may not be sold, exchanged, transferred, pledged, hypothecated, or otherwise disposed by the Recipient. 
 5. VOTING RIGHTS. Unless otherwise determined by the Board, Recipients holding Restricted Shares (whether vested or unvested) granted hereunder may exercise full voting rights with respect to those Shares
during the period of restriction. Recipients shall have no voting rights with respect to Shares underlying Restricted Stock Units unless and until such Shares are reflected as issued and outstanding shares on the Company’s stock ledger.

 6. DIVIDENDS AND DISTRIBUTIONS. A Recipient in whose name an Award of Restricted Shares and/or Restricted Stock Units is
granted shall be entitled to receive all dividends and other distributions paid with respect to the Shares underlying such Award, unless determined otherwise by the Board. The Board will determine whether any such dividends or distributions will be
automatically reinvested in additional Shares or will be payable in cash; provided that such additional Shares and/or cash shall, unless the Board determines otherwise, be subject to the same restrictions and vesting conditions as the Award with
respect to which they were distributed. Notwithstanding anything herein to the contrary, in no event shall dividends or dividend equivalents be currently payable with respect to unvested or unearned Awards that are subject to performance-based
vesting. 

  
 Page
8 of 15 

 7. INVESTMENT INTENT. The Company may require that, in acquiring any Restricted Shares or
Shares pursuant to an Award of Restricted Stock Units, the Recipient agree with, and represent to, the Company that the Recipient is acquiring such Shares for the purpose of investment and with no present intent to transfer, sell, or otherwise
dispose of such shares except for such distribution by a legal representative as shall be required by will or the laws of any jurisdiction in winding up the estate of any Recipient. Such Shares shall be transferable thereafter only if the proposed
transfer is permitted under the Plan and if, in the opinion of counsel (who shall be satisfactory to the Company), such transfer at such time complies with applicable securities laws. 

ARTICLE VIII 
 TERMS OF INCENTIVE BONUSES 
 1. AWARD AGREEMENT. The provisions of separate
Award Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof or as specifically set forth in the Award Agreement or otherwise) the substance of each of the following provisions:

 1.1. Performance Criteria. The Board shall establish the performance criteria and level of achievement versus these
criteria that shall determine the amount payable under an Incentive Bonus, which may include a target, threshold and/or maximum amount payable and any formula for determining such. 

1.2. Timing and Form of Payment. The Board shall determine the timing of payment of any Incentive Bonus. Payment of the amount due
under an Incentive Bonus may be made in cash or in Shares, as determined by the Board. The Board may provide for or, subject to such terms and conditions as the Board may specify, may permit a Recipient to elect for the payment of any Incentive
Bonus to be deferred to a specified date or event. 
 1.3. Discretionary Adjustments. Notwithstanding satisfaction of any
performance goals, the amount paid under an Incentive Bonus on account of either financial performance or personal performance evaluations may be adjusted by the Board on the basis of such further considerations as the Board shall determine.

 ARTICLE IX 
 TERMINATION OF RELATIONSHIP WITH THE COMPANY 
 1. TERMINATION OF EMPLOYMENT
OR RELATIONSHIP AS AN EMPLOYEE, DIRECTOR OR ADVISOR. In the event that a Recipient’s Continuous Status as an Employee, Director or Advisor terminates (other than upon the Recipient’s death, Disability, or by the Company with or without
Cause), (i) all unvested Options, Stock Appreciation Rights, Restricted Shares and Restricted Stock Units will immediately and automatically be terminated and forfeited back to the Company without payment of any additional consideration, unless
determined otherwise at the discretion of the Board, and (ii) the Recipient may exercise his or her vested Options and Stock Appreciation Rights but only within such period of time ending on the earlier of (A) ninety (90) days after
the termination of the Recipient’s status as an Employee, Director or Advisor (or, such longer or shorter period specified in the applicable Award Agreement or another written agreement between the Company and the Recipient), or (B) the
expiration of the term of the Award as set forth in the applicable Award Agreement. 
 2. TERMINATION WITHOUT CAUSE. In the
event that a Recipient’s Continuous Status as an Employee, Director or Advisor is terminated by the Company without Cause, as defined herein (and other 

  
 Page
9 of 15 

 
than by reason of the Recipient’s death, Disability or resignation for any reason), (i) all unvested Options, Stock Appreciation Rights, Restricted Shares and Restricted Stock Units
scheduled to vest through the end of the year of termination will immediately and automatically vest and the remaining unvested shares subject to any such Awards will immediately and automatically be terminated and forfeited back to the Company
without payment of any additional consideration, unless determined otherwise at the discretion of the Board, and (ii) the Recipient may exercise his or her vested Options and Stock Appreciation Rights but only within such period of time ending
on the earlier of (A) ninety (90) days after the termination of the Recipient’s status as an Employee, Director or Advisor (or, such longer or shorter period specified in the applicable Award Agreement or another written agreement
between the Company and the Recipient), or (B) the expiration of the term of the Award as set forth in the applicable Award Agreement. 
 3. TERMINATION FOR CAUSE. In the event that a Recipient’s Continuous Status as an Employee, Director or Advisor terminates for Cause, as defined herein, all vested and unvested Awards then held by
the Recipient will immediately and automatically be terminated and forfeited back to the Company without payment of any additional consideration. 
 4. DISABILITY OF RECIPIENT. In the event that a Recipient’s Continuous Status as an Employee, Director or Advisor terminates as a result of the Recipient’s Disability, as defined herein and in
Section 22(e)(3) of the Code, (i) all unvested Options, Stock Appreciation Rights, Restricted Shares and Restricted Stock Units scheduled to vest through the end of the year of termination will immediately and automatically vest and the
remaining unvested shares subject to any such Awards will immediately and automatically be terminated and forfeited back to the Company without payment of any additional consideration, unless determined otherwise at the discretion of the Board, and
(ii) the Recipient may exercise his or her vested Options and Stock Appreciation Rights, but only within such period of time ending on the earlier of (A) the date twelve (12) months following such termination (or, such longer or
shorter period specified in the applicable Award Agreement or another written agreement between the Company and the Recipient), or (B) the expiration of the term of the Award as set forth in the applicable Award Agreement. 

5. DEATH OF RECIPIENT. In the event of the death of a Recipient during, or within a period specified in the Award Agreement after the
termination of, the Recipient’s status as an Employee, Director or Advisor, all unvested Awards will immediately and automatically vest, and Recipient’s Options and Stock Appreciation Rights may be exercised by the Recipient’s estate,
by a person who acquired the right to exercise the Award by bequest or inheritance or by a person designated to exercise the Award upon the Recipient’s death pursuant to this Plan, but only within the period ending on the earlier of
(i) the date twelve (12) months following the date of death (or, such longer or shorter period specified in the applicable Award Agreement or another written agreement between the Company and the Recipient), or (B) the expiration of
the term of the Award as set forth in the applicable Award Agreement. 
 6. ADJUSTMENTS BY THE BOARD. Any provisions under this
Article IX may be subject to adjustments by the Board, including the acceleration or extension of specified time periods. 

ARTICLE X 

DUTIES, RIGHTS AND RESPONSIBILITIES OF RECIPIENTS 
 1. RESPONSIBILITY FOR EXERCISE. A Recipient is responsible for taking any and all actions as may be required to exercise any Option or Stock Appreciation Right in a timely manner, and for properly
executing any documents as may be required for the exercise of an Option or Stock Appreciation Right in accordance with such rules and procedures as may be established from time to time under the Plan. By signing or accepting an Award Agreement a
Recipient (and any person to whom the Option or Stock Appreciation Right under that Award Agreement is transferred) acknowledges that information regarding 

  
 Page
10 of 15 

 
the procedures and requirements for the exercise of that Option or Stock Appreciation Right is available upon such Recipient’s or person’s request to the Board. The Company shall have
no duty or obligation to notify any Recipient of the expiration of any Option or Stock Appreciation Right. 
 2. WITHHOLDING
TAXES; DELIVERY OF SHARES. If Shares acquired by exercise of an Incentive Stock Option granted pursuant to this Plan are disposed of within two (2) years from the date of grant of the Option or within one (1) year after the transfer of the
Shares to the Recipient, the holder of the Shares immediately prior to the disposition shall promptly notify the Company in writing of the date and terms of the disposition and shall provide such other information regarding the disposition as the
Company may reasonably require. The Company shall not deliver Shares in respect of any Award unless and until the Recipient has made arrangements satisfactory to the Company to satisfy applicable withholding tax obligations. Unless the Recipient
pays the withholding tax obligations to the Company by cash or check in connection with the delivery of the Shares or any other taxable event involving an Award, withholding may be effected, at the Company’s option, by withholding Shares
otherwise issuable in connection with the vesting and/or exercise of an Award, as applicable. The Recipient acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the delivery of
Awards from any amounts payable by it to the Recipient (including, without limitation, future cash compensation). 
 3.
NONTRANSFERABILITY. No Award shall be transferable by the Recipient otherwise than by will or the laws of descent or distribution, and with respect to Options and Stock Appreciation Rights granted under the Plan, each such Option and Stock
Appreciation Right shall be exercisable during his/her lifetime only by him/her (except as otherwise provided for in Article IX). 
 4. RIGHTS AS A SHAREHOLDER. A Recipient shall have no rights as a shareholder with respect to any Shares covered by an Award under this Plan until the date the Recipient becomes the holder of record of
such Shares pursuant to the terms and conditions hereof and in the applicable Award Agreement. 
 5. NO RIGHTS. Except as
otherwise expressly provided in herein, no Recipient shall have any rights by reason of any subdivision or consolidation of shares of the capital stock of any class or the payment of any stock dividend or any other increase or decrease in the number
of shares of any class or by reason of any dissolutions, liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Company of Shares of any class or of securities convertible into Shares of any
class shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to any Award granted hereunder. The grant of an Award pursuant to this Plan shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or consolidate or to dissolve, liquidate, sell, or transfer all or any part of its business or assets.

 ARTICLE XI 
 REPRICING, CANCELLATION AND RE-GRANT OF OPTIONS 
 Except in connection with
an change in capitalization as described in Article XII, the Board shall not effect at any time directly or indirectly the repricing of any outstanding Options or Stock Appreciation Rights, including without limitation a repricing by the
cancellation of any outstanding Options or Stock Appreciation Rights under the Plan and the grant in substitution therefore of new Options or Stock Appreciation Rights under the Plan covering the same or different amount of Shares. 

  
 Page
11 of 15 

 ARTICLE XII 
 ADJUSTMENTS UPON CHANGES IN STOCK 
 If any change is made in the Shares
subject to the Plan, or subject to any Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split,
liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be equitably adjusted in the class(es) and maximum number
of shares subject to the Plan, and the outstanding Awards will be appropriately adjusted in the class(es) and number of shares and price per share subject to such outstanding Awards. Such adjustments shall be made by the Board, the determination of
which shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction not involving the receipt of consideration by the Company.) When the event(s) described in the preceding
sentences occur, all Plan provisions relating to restrictions and lapse of restrictions will apply to such new, additional, or different shares or securities to the extent applicable to the Shares with respect to which they were distributed,
provided, however, that if the Recipient shall receive rights, warrants or fractional interests in respect of any of Award, such rights or warrants may be held, exercised, sold or otherwise disposed of, and such fractional interests may be settled,
by the Recipient free and clear of the restrictions hereafter set forth. 
 ARTICLE XIII 

AMENDMENT OF THE PLAN AND AWARDS 
 1. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Article XII relating to adjustments upon changes in capitalization, no amendment shall be effective
unless approved by the equity holders of the Company within twelve (12) months before or after the adoption of the amendment, where the amendment will: 
 1.1. Increase the number of Shares reserved for Awards under the Plan; 
 1.2.
Modify the requirements as to eligibility for participation in the Plan (to the extent such modification requires shareholder approval in order for the Plan to satisfy the requirements of Section 422 of the Code or any securities exchange on
which the Shares are listed); or 
 1.3. Modify the Plan in any other way if such modification requires equity holder approval
in order for the Plan to satisfy the requirements of Section 422 of the Code, other applicable law or any securities exchange on which the Shares are listed. 
 2. The Board may in its sole discretion submit any other amendment to the Plan for equity holder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations promulgated thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 

3. It is expressly contemplated that the Board may, but shall not be required to, amend the Plan in any respect the Board deems necessary
or advisable to provide eligible Employees, Directors or Advisors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Awards and/or to bring the Plan and/or
Awards granted under it into compliance therewith. 
 4. Rights and obligations of the Recipient under any Award granted before
amendment of the Plan shall not be materially impaired by any amendment of the Plan except with the written consent of the Recipient, unless such amendment is necessary to comply with any applicable law, regulation, rule or accounting requirement as
determined in the sole discretion of the Board. 

  
 Page
12 of 15 

 5. The Board at any time, and from time to time, may amend, modify, extend, cancel or renew
any Award or waive any restrictions or conditions applicable to any Award or any shares acquired upon the exercise thereof and accelerate, continue, extend or defer the exercise time or vesting period for any Award or the vesting of any Shares
subject thereto, including with respect to the period following a Recipient’s termination of status as an Employee, Director or Advisor; provided, however, that the rights and obligations under any Award shall not be materially impaired by any
such amendment except with the written consent of the Recipient, unless such amendment is necessary to comply with any applicable law, regulation, rule or accounting requirement as determined in the sole discretion of the Board. 

6. The Board may accelerate the vesting and/or, if applicable, exercisability of any Award notwithstanding the provisions in the
applicable Award Agreement. 
 7. The Board may amend the Plan to take into account changes in law and tax and accounting rules,
as well as other developments, and to grant Awards that qualify for beneficial treatment under such rules without shareholder approval. 
 ARTICLE XIV 
 COMPLIANCE WITH SECURITIES LAWS 

The grant of Awards and the issuance of Shares upon or following the exercise and/or vesting of Awards shall be subject to compliance
with all applicable requirements of federal and state law with respect to such securities. Shares may not be issued in respect of an Award granted hereunder if the issuance of such Shares would constitute a violation of any applicable federal or
state securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Shares may then be listed. In addition, no Option or Stock Appreciation Right may be exercised and no Shares may be issued
in connection with an Award unless (i) a registration statement under the Act shall at the time of issuance be in effect with respect to the Shares to be issued in connection with the Award or (ii) in the opinion of counsel to the Company,
the Shares issuable in connection with the Award may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Act. The inability of the Company to obtain from any regulatory body having jurisdiction
the authority, if any, deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares under the Plan shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained. As a condition of the exercise of any Option or Stock Appreciation Right or the grant of any other Award, the Company may require the Recipient to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. The Company may, upon the advice of counsel to the Company,
place legends on any stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Shares.

 ARTICLE XV 
 COMPLIANCE WITH SECTION 409A 
 To the extent that the Board determines that
any Award granted under the Plan is subject to Section 409A of the Code, the Award Agreement or other agreement evidencing the Award will incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable,
the Plan and Award agreements will be interpreted in accordance with Section 409A of the Code and 

  
 Page
13 of 15 

 
Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Plan’s
effective date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Plan’s effective date the Board determines that any Award may be subject to Section 409A of the Code and related Department of
Treasury guidance (including such Department of Treasury guidance as may be issued after the Plan’s effective date), the Board may adopt such amendment to the Plan and applicable Award agreements or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (i) exempt the Award from Section 409A of the Code and/or preserve the intended
tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance. 

ARTICLE XVI 

MISCELLANEOUS 
 1. AWARD AGREEMENT REQUIRED. Each Award under this Plan shall be evidenced by an Award Agreement in such form and shall contain such terms and conditions as the Board shall deem appropriate. No Award or
purported Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement or by communicating with the Company in such manner as the Company may authorize. 

2. EMPLOYMENT AND SHAREHOLDER STATUS. The Plan does not constitute a contract of employment, and selection as a Recipient will not give
any Employee the right to be retained in the employ of the Company. Except as otherwise provided herein, the grant of an Award under the Plan shall not confer upon the holder thereof any right as an equity holder of the Company, unless and until the
Recipient becomes registered as a holder of Shares on the records of the Company. 
 3. WITHHOLDING BY COMPANY. If the Company
or its Affiliates is required to withhold any amounts by reason of federal, state or local tax laws, rules or regulations, in respect of the issuance of Awards or Shares pursuant to the Plan, the Company or such Affiliates shall be entitled to
deduct and withhold such amounts from any cash payments to be made to the Recipient. In any event, such person shall promptly make available to the Company or such Affiliate, when requested by the Company or such Affiliate, sufficient funds to meet
the requirements of such withholding, and the Company or such Affiliate may take and authorize such steps as it may deem advisable in order to have such funds made available to the Company or such Affiliate from any funds or property due or to
become due to such person. The exercise will not be effective until the Company has received such funds to cover the withholding. 
 4. TERMINATION. The Plan shall terminate automatically on the date that is ten (10) years from the effective date of the Plan, and may be terminated at any earlier date by the Board. No Award shall
be granted hereunder after termination of the Plan, but such termination shall not affect the validity of any Award then outstanding. 
 5. EFFECTIVE DATE. This Plan was adopted by the Board on November 2, 2012 and shall be effective as of such date, provided the Plan is approved by equity holders within twelve (12) months of
said date. Awards may be granted, but Shares may not be issued pursuant to such Awards, prior to the date of such shareholder approval. 
 6. FRACTIONAL SHARES. The Company shall not be required to issue fractional shares pursuant to this Plan and, accordingly, a Recipient may be awarded or required to purchase only whole shares. 

  
 Page
14 of 15 

 7. GOVERNING LAW. The Plan and all determinations made and actions taken hereunder, to the
extent not otherwise governed by the Code or laws of the United States, shall be governed by the laws of the State of Delaware and construed accordingly, without reference to the conflict of laws principles. 

8. FUNDING OF PLAN. The Plan is intended to be an unfunded plan. The Company shall not be required to establish or fund any special or
separate account or to make any other segregation of assets to assure the payment of any Award under the Plan. Recipients are and shall at all times be general creditors of the Company with respect to their Awards. If the Board or the Company
chooses to set aside funds in a trust or otherwise for the payment of Awards under the Plan, such funds shall at all times be subject to the claims of the creditors of the Company in the event of its bankruptcy or insolvency. 

9. SUCCESSORS. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor
to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

10. GENDER AND NUMBER. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine,
any feminine term used herein shall include the masculine, and the plural shall include the singular and the singular shall include the plural. 
 11. SEVERABILITY. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be
construed and enforced as if the illegal or invalid provision had not been included. 
 12. RULES OF CONSTRUCTION. Whenever any
provision of the Plan refers to any law, rule, or regulation, such provision shall be deemed to refer to the law, rule, or regulation currently in effect and, when and if such law, rule, or regulation is subsequently amended or replaced, to the
amended or successor law, rule, or regulation. The term “including” shall be deemed to include the words “including without limitation.” 

  
 Page
15 of 15EX-10.4

 Exhibit 10.4 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement
(this “Agreement”) is made as of the 27th day of November, 2012 by and between Liquid Holdings Group, LLC, a Delaware limited liability company (“Holdings” or the
“Employer”), and Richard Schaeffer (the “Executive”). Holdings, any direct or indirect wholly-owned subsidiary of Holdings, and any other affiliate company of the foregoing are sometimes
referred to herein individually as a “Liquid Company” and collectively as the “Liquid Company Group”. 
 BACKGROUND 
 WHEREAS, the Executive is a founder of Holdings and
currently serves as the Executive Chairman of Holdings; and 
 WHEREAS, Holdings has determined that it is in its best
interests to enter into this Agreement setting forth the obligations and duties of Holdings and the Executive (individually, a “Party” and together, the “Parties”) and that this Agreement shall
supersede all previous agreements between the Parties with respect to the subject matter contained herein; and 
 WHEREAS, the
Employer wishes to employ the Executive for the period hereinafter provided, and the Executive is willing to be employed by the Employer for said period, upon the terms and conditions provided in this Agreement. 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the
receipt of which is mutually acknowledged, the Parties, intending to be legally bound hereby, agree as follows: 
 1.
Employment. The Employer hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Employer, on the terms and conditions set forth herein. 

2. Term. Subject to the provisions for earlier termination as hereinafter provided, the term of this Agreement will begin on
December 1, 2012 (the “Effective Date”) and will continue until the first anniversary of the Effective Date (the “Initial Term of Employment”). This Agreement will be automatically renewed for
successive one (1) year terms (each, a “Renewal Term”) unless either Employer or Executive sends not less than sixty (60) days written notice of termination to the other Party. 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 Executive Chairman of Holdings, and
in such role Executive shall have such duties, responsibilities and authority customarily possessed by an executive in such position (subject to the input, direction and oversight of the board of managers of Holdings (the
“Board”)), together with such other duties as may reasonably be assigned from time-to-time by the Board. During the entire Term of Employment, the Executive will also be a member of the Board. 

 (b) The Executive will devote his full business time and best efforts to his employment and
perform diligently his 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. Executive’s principal place of work shall be located at Holdings’ principal office in
Manhattan, New York. 
 (c) Executive shall at all times comply with, and be subject to, such reasonable policies, procedures,
rules and regulations as the Employer may establish and maintain in effect from time to time, including the Employer’s Code of Conduct (collectively, the “Policies”). 

4. Compensation. 
 (a) Base Salary. The Executive will receive from the Employer an annual base salary of Two Hundred Fifty Thousand Dollars ($250,000) (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. The Base Salary shall automatically increase to $500,000.00 per year (or greater, at the discretion of the Board) on the date on which Holdings completes an Initial Public Offering. For purposes
of this Agreement, an Initial Public Offering shall mean the listing of the Employer’s equity securities for public trading on a regulated exchange. 
 (b) Additional One Time Bonus. Upon completion of an Initial Public Offering, the Executive will receive a cash bonus that will equal the difference between his Base Salary as of the Effective Date and an
effective annual salary of $500,000, prorated for the amount of time between May 15, 2012 and the date of the Initial Public Offering 
 (c) Annual Bonus. During the Term of Employment, the Executive shall be eligible to receive an annual performance bonus for each fiscal year of the Employer at the discretion of the Employer, payable in
cash (each an “Annual Bonus”), which shall be determined in accordance with criteria established by the Board or any compensation committee appointed by the Board. 
 (d) 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 to the same extent as
Holdings’ President and its CEO, in each case as determined by the Board. 
 (e) Executive Benefits 

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

  
 -2-

 (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 prompt reimbursement by the Employer for all reasonable
out-of-pocket expenses incurred by him in performing services under this Agreement, upon submission of such records as required by the Employer. 
 (g) Vacation. The Executive shall be entitled to paid vacation of four (4) weeks per year and such other paid absences in accordance with Policies as in effect for other senior executives of the
Employer. 
 5. Termination of Employment. Executive shall be an at-will employee of the Employer and, subject only to
the terms of this Agreement, Executive’s employment may be terminated for any reason or no reason and at any time, including, without limitation, under the following circumstances: 

(a) Death. The Executive’s employment shall be terminated upon his 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 his inability to perform substantially his 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 his 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
Executive’s receipt of written notice from the Board; 

  
 -3-

 (iv) the Executive’s intentional failure to perform his duties or carry
out lawful directions of the Board; or 
 (v) the Executive’s willful material breach of any provision of
this Agreement or any other agreement between the Executive and any Liquid Company, in each case where such breach shall continue beyond a period of fifteen (15) calendar days immediately following Executive’s receipt of written notice
from the Board thereof. 
 Any termination for Cause shall be effectuated by giving the Executive written notice setting forth
in reasonable detail the specific conduct of the Executive that constitutes Cause and the specific provision(s) of this Agreement on which the Employer relied. 
 Any termination for Cause will not be in limitation of any other right or remedy the Employer has under this Agreement or otherwise. In the event that the Executive’s employment is terminated by the
Employer for Cause, any amount due to the Executive under Section 6 below may be offset to the extent of any losses resulting, directly or indirectly, to the Liquid Company Group from Executive’s conduct resulting in the for Cause
termination. 
 (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 his employment upon: 

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

(ii) the assignment to Executive of any duties inconsistent in any material respect with Executive’s position
(including, without limitation, status, office, title and reporting chain), authority, duties or responsibilities hereunder, or any other action that results in a material diminution in any such position, duties, authority or responsibilities
hereunder; 
 (iii) any change in Executive’s principal place of work to a location outside Manhattan, New
York without the prior written consent of Executive; or 
 (iv) any other material breach by the Employer of this
Agreement, where the breach shall continue beyond a period of fifteen (15) calendar days immediately following the Board’s receipt of written notice from the Executive thereof. 
 A termination of employment by the Executive for Good Reason shall be effectuated by giving the Employer written notice (“Notice of Termination for Good Reason”), not later than 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 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 Executive (such 30-day or shorter period, the “Cure Period”). If, during the Cure 

  
 -4-

 
Period, such circumstance is remedied, 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, Executive will be entitled to terminate employment for Good Reason during the 30-day period that follows the end of the Cure Period. If Executive does not terminate employment during
such 30-day period, 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, he, or his estate, will be entitled to: 
 (i) any Base Salary earned but not yet paid;

 (ii) continuation of the Base Salary (the “Severance Payments”) for the period from
the date of termination or expiration and for an additional two (2) months (the “Severance Period”). 
 (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 his death or Disability in
accordance with applicable plans and programs of the Employer. 
 (b) If the Executive’s employment is terminated by the
Employer for Cause, or by the Executive for other than Good Reason, the Executive will be entitled to: 
 (i) any
Base Salary earned but not yet paid; 
 (ii) reimbursement in accordance with this Agreement of any business
expense incurred by the Executive but not yet paid; and 
 (iii) other compensation or Benefits accrued and
earned by the Executive through the date of his 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 his termination of employment (determined without regard to any reduction constituting Good Reason) and, subject to Section 6(d), payable to the Executive in accordance with the Employer’s standard payroll procedures, for the period of
six (6) months from the date of termination (the “Severance Period”); 

  
 -5-

 (iii) reimbursement in accordance with this Agreement of any business
expenses incurred by the Executive but not yet paid to him on the date of his termination of employment; 
 (iv)
other compensation or Benefits accrued and earned by the Executive through the date of his termination, in accordance with applicable plans and programs of the Employer; and 

(v) continuation of Benefits that are made available to executive employees of the Employer in general in accordance with
applicable plans and programs of the Employer until the expiration of the Severance Period. 
 (d) Any amounts due under this
Section 6 are in the nature of severance payments or liquidated damages or both, and will fully compensate the Executive and his dependents or beneficiaries, as the case may be, for any and all direct damages and consequential damages
that any of them may suffer as a result of lawful termination of the Executive’s employment, and they are not in the nature of a penalty. In order to receive any of the Severance Payments, prior to the payment of such amounts, Executive shall
execute and agree to be bound by a release of claims substantially in the form attached hereto as Exhibit A within sixty (60) days after the date of termination of the Executive’s employment. Any Severance Payments due prior
to the sixtieth day after the date of the Executive’s termination of employment shall be payable on the first payroll date following such sixtieth day and the remaining Severance Payments shall be made in accordance with the Employer’s
standard payroll schedule. The Employer shall tender the release of claims to the Executive within fifteen (15) days following the date of his termination of employment and, upon any failure of the Employer to so tender such release within such
time period, the Executive’s obligation to provide such release in order to receive the Severance Payments shall cease to apply. 
 (e) The Executive shall not be required to seek other employment or attempt in any way to mitigate or reduce the amounts payable to him under this Section 6 and such amounts shall not be reduced by
any compensation earned by the Executive subsequent to the termination of his employment with the Employer. 
 (f) For the
avoidance of doubt, Executive will not be entitled to a Severance Payment as a result of the Employer’s election not to renew this Agreement pursuant to Section 2. 

(g) Upon the Executive’s termination of employment with Employer, the Executive’s employment with any other Liquid Company
shall terminate and, if requested by the Board, the Executive shall immediately resign from all other positions with any Liquid Company. 
 7. Non-Competition & Other Covenants. 
 (a) The Executive
acknowledges that he has had or will have unlimited access to the confidential information and business methods relating to the Liquid Company Group’s business and operations and that the Employer would be irreparably injured and the goodwill
of the Employer would be irreparably damaged if the Executive were to breach the covenants set 

  
 -6-

 
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 upon termination of the Executive’s employment or non-renewal of this Agreement pursuant to
Section 2, for one (1) year thereafter (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 9(a), the “Business” shall mean: 
 (i) Operation of a so-called “Mini Prime Brokerage” that services hedge funds with less than $50 million of assets under management with a variety of services including capital introduction,
execution services, office space, and technology; 
 (ii) Operation of FINRA-registered broker dealer or
NFA-registered Futures Commission Merchant; or 
 (iii) 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 

  
 -7-

 
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. 

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

  
 -8-

 9. Executive’s Representations & Warranties. Executive represents and
warrants to the Employer and Holdings as follows: 
 (a) 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 his employment with the Employer or his or the Employer’s rights and obligations hereunder. Executive’s acceptance of employment
with the Employer and the performance of his duties hereunder will not breach the provisions of any contract, agreement, or understanding to which he is party or any duty owed by him to any other third party, including, without limitation, any
non-competition agreement, non-solicitation agreement, or confidentiality agreement. 
 (b) Executive: (i) is not subject
to an order of the United States Securities and Exchange Commission (the “SEC”) issued under Section 203(f) of the Investment Advisers Act of 1940 (the “Act”); (ii) has not been found by the
SEC to have engaged in, and has not been convicted of engaging in, any of the conduct specified in Section 203(e)(1), (5) or (6) of the Act; and (iii) is not subject to an order, judgment or decree described in
Section 203(e)(4) of the Act. Executive has not been convicted within the last 10 years of any felony or misdemeanor. 

10. Assignability; Binding Nature. This Agreement will be binding upon and inure to the benefit of the Parties and their
respective successors, heirs and personal representatives (in the case of the Executive in the event of his death or Disability) and permitted assigns. The Executive’s heirs and personnel representatives are intended third party beneficiaries
hereunder. No rights or obligations of the Employer under this Agreement may be assigned or transferred by the Employer without the prior written consent of the Executive, except that such rights or obligations may be assigned or transferred
pursuant to (a) a merger or consolidation in which an Employer is not the continuing entity, or (b) a sale or liquidation of all or substantially all of the assets of the Liquid Company Group, provided that the assignee or transferee is
the successor to all or substantially all of the assets of the Liquid Company Group and such assignee or transferee assumes the liabilities, obligations and duties of the Liquid Company Group, as contained in this Agreement, either contractually or
as a matter of law. No obligations of the Executive under this Agreement may be assigned or transferred by the Executive. 
 11.
Indemnification; Directors and Officers Insurance. The Employer agrees that in connection with the Executive’s service to the Employer pursuant hereto, the Executive shall be entitled to the benefit of any indemnification provisions in
the Employer’s Limited Liability Company Agreement and/or any of its affiliated companies and any director and officer liability insurance coverage carried by the Employer and/or any of its affiliated companies, if any. The Employer shall take
no action to amend or revise the provisions in its Limited Liability Company Agreement that would reduce or impair the right of the Executive to indemnification thereunder. 
 12. Entire Agreement. This Agreement, together with the Form of Release attached hereto as Exhibit A and the Confidentiality and Proprietary Rights Assignment Agreement attached
hereto as Exhibit B (the “Proprietary Rights Agreement”), contains the entire understanding of the Parties with regard to its subject matter and supersedes all prior agreements and understandings between the
Parties with regard to their subject matter. 

  
 -9-

 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 and Holdings. 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 and
Holdings, 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 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 through the Financial Industry Regulatory Authority. The Parties agree that each will bear their own costs and attorneys’ fees and the
arbitrator shall not have authority to award attorneys’ fees or costs to any Party. The arbitrator shall have no power or authority to make awards or orders granting relief that would not be available to a Party in a court of law. The
arbitrator’s award is limited by and must comply with this Agreement. The decision of the arbitrator shall be final and binding on the Parties. Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief
contemplated by or allowed under applicable law pursuant to Section 8 above or the Proprietary Rights Agreement will be subject to arbitration under this Section 16, but will instead be subject to determination in a court of
competent jurisdiction applying New York law, consistent with Sections 17, 18 and 19 of this Agreement, where either party may seek injunctive or equitable relief. 

17. Applicable Law. The laws of the State of New York shall govern the interpretation, validity and performance of the terms of
this Agreement, regardless of the laws that might be applied under principles of conflicts of law. 
 18. Consent to
Jurisdiction. Any legal action, suit, or proceeding arising out of or relating to this Agreement may only be instituted in a state or federal court in the State of New York, and each party agrees not to assert, by way of motion, as a defense, or
otherwise, in any such action, suit, or proceeding, any claim that it is not subject personally to the jurisdiction of such court, that the action, suit, or proceeding is brought in an inconvenient forum, that the venue of the action, suit, or
proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party further irrevocably submits to the jurisdiction of any such court in any such action, suit, or proceeding. 

  
 -10-

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

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

  
 -11-

 
reimbursement or provision of such benefits shall be subject to the requirements of Section 1.409A-3(i)(1)(iv) of the Treasury Regulations, and (1) reimbursements or benefits shall be
provided only during the applicable period specified in the Agreement, (2) the amount of expenses eligible for reimbursement or the benefits provided in kind during a particular calendar year shall not affect the expenses eligible for
reimbursement or the in kind benefits to be provided in any other calendar year, (3) the reimbursement of any eligible expense shall be made on or before December 31 of the year following the year in which the expense was incurred provided
reasonable documentation of such expense is submitted to the Employer within ninety (90) days after the date any such expense was incurred, and (4) the Executive’s right to reimbursement or the provision of in-kind benefits shall not
be subject to liquidation or exchange for another benefit. 
 21. Notices. All notices, requests, consents, claims,
demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally
recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent
after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following
addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 21): 
  

			
	    If to Holdings:	  	 800 Third Avenue, 39th Floor

New York, NY 10022
 Attention: Samuel Gaer,
CEO
 Telephone: (212) 293-2690

Facsimile:
 E-mail:
sgaer@liquidholdingsgroup.com

		
	    with a copy to:	  	 Eduardo Gallardo
 Gibson
Dunn & Crutcher
 200 Park Avenue

New York, New York 10166
 Telephone: (212)
351-3847
 Facsimile: (212) 351-5245

E-mail: egallardo@gibsondunn.com

		
	    If to the Executive:	  	 Richard Schaeffer

Telephone: 212.293.2615
 E-mail:
rschaeffer@liquidholdingsgroup.com

		
	    with a copy to:	  	 Attorney Name:
 Martin
O’Connor
 O’Connor Morss & O’Connor PC
 Telephone: (908) 354-5660
 Facsimile:
 E-mail:

  
 -12-

 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] 

  
 -13-

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

			
	LIQUID HOLDINGS GROUP, LLC
		
	By:	 	 /s/ Brian Ferdinand

	Name:	 	Brian Ferdinand
	Title:	 	President
	
	EXECUTIVE:
	
	 /s/ Richard Schaeffer
 Richard Schaeffer

 Signature Page to 
 Executive Employment Agreement 

 EXHIBIT A 
 FORM OF RELEASE 

 EXHIBIT B 
 CONFIDENTIALITY AND PROPRIETARY RIGHTS ASSIGNMENT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]