Document:

Unassociated Document

    Exhibit
      10.20

     

    TAILWIND
      FINANCIAL INC.

    2008
      EQUITY INCENTIVE PLAN

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              1.
                Purpose

            	
              1

            
	 	 
	
              2.
                Definitions

            	
               1

            
	 	 
	
              3.
                Term of the Plan

            	
               5

            
	 	 
	
              4.
                Stock Subject to the Plan

            	
               5

            
	 	 
	
              5.
                Administration

            	
               5

            
	 	 
	
              6.
                Authorization of Grants

            	
               6

            
	 	 
	
              7.
                Specific Terms of Awards

            	
               7

            
	 	 
	
              8.
                Adjustment Provisions

            	
               12

            
	 	 
	
              9.
                Change of Control

            	
               15

            
	 	 
	
              10.
                Settlement of Awards

            	
               15

            
	 	 
	
              11.
                Reservation of Stock

            	
               18

            
	 	 
	
              12.
                Limitation of Rights in Stock; No Special Service Rights

            	
               18

            
	 	 
	
              13.
                Unfunded Status of Plan

            	
               18

            
	 	 
	
              14.
                Nonexclusivity of the Plan

            	
               18

            
	 	 
	
              15.
                Termination and Amendment of the Plan

            	
               18

            
	 	 
	
              16.
                Notices and Other Communications

            	
               19

            
	 	 
	
              17.
                Governing Law

            	
               19

            

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    TAILWIND
      FINANCIAL INC.

     

    2008
      Equity Incentive Plan

     

    1. Purpose

     

    This
      Plan
      is intended to encourage ownership of Stock by employees, consultants and
      directors of the Company and its Affiliates and to provide additional incentive
      for them to promote the success of the Company’s business through the grant of
      Awards of or pertaining to shares of the Company’s Stock. The Plan is intended
      to be an incentive stock option plan within the meaning of Section 422 of the
      Code, but not all Awards are required to be Incentive Options.

     

    2. Definitions

     

    As
      used
      in this Plan, the following terms shall have the following
      meanings:

     

    2.1. Accelerate,
      Accelerated,
      and
Acceleration,
      means:
      (a) when used with respect to an Option or Stock Appreciation Right, that as
      of
      the time of reference the Option or Stock Appreciation Right will become
      exercisable with respect to some or all of the shares of Stock for which it
      was
      not then otherwise exercisable by its terms; (b) when used with respect to
      Restricted Stock or Restricted Stock Units, that the Risk of Forfeiture
      otherwise applicable to the Stock or Units shall expire with respect to some
      or
      all of the shares of Restricted Stock or Units then still otherwise subject
      to
      the Risk of Forfeiture; and (c) when used with respect to Performance Units,
      that the applicable Performance Goals shall be deemed to have been met as to
      some or all of the Units. 

     

    2.2. Affiliate
      means
      any corporation, partnership, limited liability company, business trust, or
      other entity controlling, controlled by or under common control with the
      Company.

     

    2.3. Award
      means
      any grant or sale pursuant to the Plan of Options, Stock Appreciation Rights,
      Performance Units, Restricted Stock, Restricted Stock Units, or Stock
      Grants.

     

    2.4. Award Agreement
      means an
      agreement between the Company and the recipient of an Award, setting forth
      the
      terms and conditions of the Award.

     

    2.5. Board
      means
      the Company’s Board of Directors.

     

    2.6. Change
      of Control
      means
      the occurrence of any of the following after the date of the approval of the
      Plan by the Board:

     

    (a) a
      Transaction (as defined in Section 8.4), unless securities possessing more
      than
      50% of the total combined voting power of the survivor’s or acquiror’s
      outstanding securities (or the securities of any parent thereof) are held by
      a
      person or persons who held securities possessing more than 50% of the total
      combined voting power of the Company’s outstanding securities immediately prior
      to that transaction, or

     

    (b) any
      person or group of persons (within the meaning of Section 13(d)(3) of the
      Securities Exchange Act of 1934, as amended and in effect from time to
      time)
      directly or indirectly acquires, including but not limited to by means of a
      merger or consolidation, beneficial ownership (determined pursuant to Securities
      and Exchange Commission Rule 13d-3 promulgated under the said Exchange Act)
      of securities possessing more than 20% of the total combined voting power of
      the
      Company's outstanding securities pursuant to a tender or exchange offer made
      directly to the Company's stockholders that the Board does not recommend such
      stockholders accept, other than (i) the Company or an Affiliate, (ii) an
      employee benefit plan of the Company or any of its Affiliates, (iii) a trustee
      or other fiduciary holding securities under an employee benefit plan of the
      Company or any of its Affiliates, or (iv) an underwriter temporarily holding
      securities pursuant to an offering of such securities, or

    

    
      
        
          
          

        

        
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    (c) over
      a
      period of 36 consecutive months or less, there is a change in the composition
      of
      the Board such that a majority of the Board members (rounded up to the next
      whole number, if a fraction) ceases, by reason of one or more proxy contests
      for
      the election of Board members, to be composed of individuals who either
      (i) have been Board members continuously since the beginning of that
      period, or (ii) have been elected or nominated for election as Board
      members during such period by at least a majority of the Board members described
      in the preceding clause (i) who were still in office at the time that election
      or nomination was approved by the Board, or

     

    (d) a
      majority of the Board votes in favor of a decision that a Change of Control
      has
      occurred.

     

    2.7. Code
      means
      the Internal Revenue Code of 1986, as amended from time to time, or any
      successor statute thereto, and any regulations issued from time to time
      thereunder.

     

    2.8. Committee
      means
      the Compensation Committee of the Board, which in general is responsible for
      the
      administration of the Plan, as provided in Section 5 of this Plan. For any
      period during which no such committee is in existence “Committee” shall mean the
      Board and all authority and responsibility assigned to the Committee under
      the
      Plan shall be exercised, if at all, by the Board.

     

    2.9. Company
      means
      Tailwind Financial Inc., a corporation organized under the laws of the
      Delaware.

     

    2.10. Covered
      Employee means
      an
      employee who is a “covered employee” within the meaning of Section 162(m) of the
      Code.

     

    2.11. Grant Date
      means
      the date as of which an Option is granted, as determined under
      Section 7.1(a).

     

    2.12. Incentive Option
      means an
      Option which by its terms is to be treated as an “incentive stock option” within
      the meaning of Section 422 of the Code.

     

    2.13. Market Value
      means
      the value of a share of Stock on a particular date determined by such methods
      or
      procedures as may be established by the Committee. Unless otherwise determined
      by the Committee, the Market Value of Stock as of any date is the closing price
      for the Stock as reported on the New York Stock Exchange (or on any other
      national securities exchange on which the Stock is then listed) for that date
      or, if no closing price is reported for that date, the closing price on the
      next
      preceding date for which a closing price was reported. 

     

    2.14. Nonstatutory Option
      means
      any Option that is not an Incentive Option.

    

    
      
        
          
          

        

        
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    2.15. Option
      means an
      option to purchase shares of Stock.

     

    2.16. Optionee
      means a
      Participant to whom an Option shall have been granted under the
      Plan.

     

    2.17. Participant
      means
      any holder of an outstanding Award under the Plan.

     

    2.18. Performance
      Criteria means
      the
      criteria that the Committee selects for purposes of establishing the Performance
      Goal or Performance Goals for a Participant for a Performance Period. The
      Performance Criteria used to establish Performance Goals are limited to:
      (i) cash flow (before or after dividends), (ii) earnings per share
      (including, without limitation, earnings before interest, taxes, depreciation
      and amortization), (iii) stock price, (iv) return on equity,
      (v) stockholder return or total stockholder return, (vi) return on
      capital (including, without limitation, return on total capital or return on
      invested capital), (vii) return on investment, (viii) return on assets
      or net assets, (ix) market capitalization, (x) economic value added,
      (xi) debt leverage (debt to capital), (xii) revenue, (xiii) sales
      or net sales, (xiv) backlog, (xv) income, pre-tax income or net
      income, (xvi) operating income or pre-tax profit, (xvii) operating
      profit, net operating profit or economic profit, (xviii) gross margin,
      operating margin or profit margin, (xix) return on operating revenue or
      return on operating assets, (xx) cash from operations, (xxi) operating
      ratio, (xxii) operating revenue, (xxiii) market share improvement,
      (xxiv) general and administrative expenses, (xxv) assets under management
      and (xxvi) customer service. 

     

    2.19. Performance
      Goals
      means,
      for a Performance Period, the written goal or goals established by the Committee
      for the Performance Period based upon the Performance Criteria. The Performance
      Goals may be expressed in terms of overall Company performance or the
      performance of a division, business unit, subsidiary, or an individual, either
      individually, alternatively or in any combination, applied to either the Company
      as a whole or to a business unit or Affiliate, either individually,
      alternatively or in any combination, and measured either quarterly, annually
      or
      cumulatively over a period of years, on an absolute basis or relative to a
      pre-established target, to previous years’ results or to a designated comparison
      group, in each case as specified by the Committee. The Committee will, in the
      manner and within the time prescribed by Section 162(m) of the Code in the
      case
      of Qualified Performance-Based Awards, objectively define the manner of
      calculating the Performance Goal or Goals it selects to use for such Performance
      Period for such Participant. To the extent consistent with Section 162(m)
      of the Code (in the case of Qualified Performance-Based Awards), the Committee
      may appropriately adjust any evaluation of performance against a Performance
      Goal to exclude any of the following events that occurs during a performance
      period: (i) asset write-downs, (ii) litigation, claims, judgments or
      settlements, (iii) the effect of changes in tax law, accounting principles
      or other such laws or provisions affecting reported results, (iv) accruals
      for reorganization and restructuring programs and (v) any extraordinary,
      unusual, non-recurring or non-comparable items (A) as described in
      Accounting Principles Board Opinion No. 30, (B) as described in
      management’s discussion and analysis of financial condition and results of
      operations appearing in the Company’s Annual Report to stockholders for the
      applicable year, or (C) publicly announced by the Company in a press
      release or conference call relating to the Company’s results of operations or
      financial condition for a completed quarterly or annual fiscal
      period.

     

    2.20. Performance
      Period means
      the
      one or more periods of time, which may be of varying and overlapping durations,
      selected by the Committee, over which the attainment of one or more Performance
      Goals or other business objectives will be measured for purposes of determining
      a Participant’s right to, and the payment of, a Performance Unit.

    

    
      
        
          
          

        

        
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    2.21. Performance
      Unit means
      a
      right granted to a Participant under Section 7.5, to receive cash, Stock or
      other Awards, the payment of which is contingent on achieving Performance Goals
      or other business objectives established by the Committee.

     

    2.22. Plan
      means
      this 2008 Equity Incentive Plan of the Company, as amended from time to time,
      and including any attachments or addenda hereto.

     

    2.23. Qualified
      Performance-Based Awards means
      Awards intended to qualify as “performance-based compensation” under Section
      162(m) of the Code.

     

    2.24. Restricted
      Stock
      means a
      grant or sale of shares of Stock to a Participant subject to a Risk of
      Forfeiture.

     

    2.25. Restricted
      Stock Units means
      rights to receive shares of Stock at the close of a Restriction Period, subject
      to a Risk of Forfeiture.

     

    2.26. Restriction
      Period means
      the
      period of time, established by the Committee in connection with an Award of
      Restricted Stock or Restricted Stock Units, during which the shares of
      Restricted Stock are subject to a Risk of Forfeiture described in the applicable
      Award Agreement.

     

    2.27. Risk
      of Forfeiture
      means a
      limitation on the right of the Participant to retain Restricted Stock or
      Restricted Stock Units, including a right of the Company to reacquire shares
      of
      Restricted Stock at less than their then Market Value, arising because of the
      occurrence or non-occurrence of specified events or conditions.

     

    2.28. Stock
      means
      common stock, par value $0.001 per
      share, of the Company, and such other securities as may be substituted for
      Stock
      pursuant to Section 8.

     

    2.29. Stock
      Appreciation Right
      means a
      right to receive any excess in the Market Value of shares of Stock (except
      as
      otherwise provided in Section 7.2(c)) over a specified exercise
      price.

     

    2.30. Stock
      Grant
      means
      the grant of shares of Stock not subject to restrictions or other forfeiture
      conditions.

     

    2.31. Stockholders’ Agreement
      means
      any agreement by and among the holders of at least a majority of the outstanding
      voting securities of the Company and setting forth, among other provisions,
      restrictions upon the transfer of shares of Stock or on the exercise of rights
      appurtenant thereto (including but not limited to voting rights).

     

    2.32. Ten Percent Owner
      means a
      person who owns, or is deemed within the meaning of Section 422(b)(6) of the
      Code to own, stock possessing more than 10% of the total combined voting power
      of all classes of stock of the Company (or any parent or subsidiary corporations
      of the Company, as defined in Sections 424(e) and (f), respectively, of the
      Code). Whether a person is a Ten Percent Owner shall be determined with respect
      to an Option based on the facts existing immediately prior to the Grant Date
      of
      the Option.

    

    
      
        
          
          

        

        
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    3. Term
      of the Plan

     

    Unless
      the Plan shall have been earlier terminated by the Board, Awards may be granted
      under this Plan at any time in the period commencing on the date of approval
      of
      the Plan by the Board and ending immediately prior to the tenth anniversary
      of
      the earlier of the adoption of the Plan by the Board and approval of the Plan
      by
      the Company’s stockholders. Awards granted pursuant to the Plan within that
      period shall not expire solely by reason of the termination of the Plan. Awards
      of Incentive Options granted prior to stockholder approval of the Plan are
      expressly conditioned upon such approval, but in the event of the failure of
      the
      stockholders to approve the Plan shall thereafter and for all purposes be deemed
      to constitute Nonstatutory Options.

     

    4. Stock
      Subject to the Plan

     

    At
      no
      time shall the number of shares of Stock issued pursuant to or subject to
      outstanding Awards granted under the Plan (including pursuant to Incentive
      Options), nor the number of shares of Stock issued pursuant to Incentive
      Options, exceed 4,400,000
      shares of Stock; subject,
      however,
      to the
      provisions of Section 8 of the Plan and provided,
      however,
      that
      such number shall be reduced in accordance with Section 6.3(e) of that certain
      Agreement and Plan of Merger by and among the Company, TWF Acquisition
      Corporation and Asset Alliance Corporation, dated January 8, 2008, upon
      consummation of the transactions contemplated thereby. For purposes of applying
      the foregoing limitation, (a) if any Option or Stock Appreciation Right expires,
      terminates, or is cancelled for any reason without having been exercised in
      full, or if any other Award is forfeited by the recipient or repurchased at
      less
      than its Market Value, the shares not purchased by the Optionee or which are
      forfeited by the recipient or repurchased shall again be available for Awards
      to
      be granted under the Plan and (b) if any Option is exercised by delivering
      previously owned shares in payment of the exercise price therefor, only the
      net
      number of shares, that is, the number of shares issued minus the number received
      by the Company in payment of the exercise price, shall be considered to have
      been issued pursuant to an Award granted under the Plan. In
      addition, settlement of any Award shall not count against the foregoing
      limitations except to the extent settled in the form of Stock.
      Shares
      of
      Stock issued pursuant to the Plan may be either authorized but unissued shares
      or shares held by the Company in its treasury.

     

    5. Administration

     

    The
      Plan
      shall be administered by the Committee; provided,
      however,
      that at
      any time and on any one or more occasions the Board may itself exercise any
      of
      the powers and responsibilities assigned the Committee under the Plan and when
      so acting shall have the benefit of all of the provisions of the Plan pertaining
      to the Committee’s exercise of its authorities hereunder. Subject to the
      provisions of the Plan, the Committee shall have complete authority, in its
      discretion, to make or to select the manner of making all determinations with
      respect to each Award to be granted by the Company under the Plan including
      the
      employee, consultant or director to receive the Award and the form of Award.
      In
      making such determinations, the Committee may take into account the nature
      of
      the services rendered by the respective employees, consultants, and directors,
      their present and potential contributions to the success of the Company and
      its
      Affiliates, and such other factors as the Committee in its discretion shall
      deem
      relevant. Subject to the provisions of the Plan, the Committee shall also have
      complete authority to interpret the Plan, to prescribe, amend and rescind rules
      and regulations relating to it, to determine the terms and provisions of the
      respective Award Agreements (which need not be identical), and to make all
      other
      determinations necessary or advisable for the administration of the Plan. The
      Committee’s determinations made in good faith on matters referred to in the Plan
      shall be final, binding and conclusive on all persons having or claiming any
      interest under the Plan or an Award made pursuant hereto.

    

    
      
        
          
          

        

        
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    6. Authorization
      of Grants

     

    6.1. Eligibility.
      The
      Committee may grant from time to time and at any time prior to the termination
      of the Plan one or more Awards, either alone or in combination with any other
      Awards, to any employee of or consultant to one or more of the Company and
      its
      Affiliates or to any non-employee member of the Board or of any board of
      directors (or similar governing authority) of any Affiliate. However, only
      employees of the Company, and of any parent or subsidiary corporations of the
      Company, as defined in Sections 424(e) and (f), respectively, of the Code,
      shall be eligible for the grant of an Incentive Option. Further, in no event
      shall the number
      of
      shares of Stock covered by Options or other Awards granted to any one person
      in
      any one calendar year exceed 30% of the aggregate number of shares of Stock
      subject to the Plan.

     

    6.2. General
      Terms of Awards.
      Each
      grant of an Award shall be subject to all applicable terms and conditions of
      the
      Plan (including but not limited to any specific terms and conditions applicable
      to that type of Award set out in the following Section), and such other terms
      and conditions, not inconsistent with the terms of the Plan, as the Committee
      may prescribe. No prospective Participant shall have any rights with respect
      to
      an Award, unless and until such Participant shall have complied with the
      applicable terms and conditions of such Award (including if applicable
      delivering a fully executed copy of any agreement evidencing an Award to the
      Company).

     

    6.3. Effect
      of Termination of Employment, Etc.
      Unless
      the Committee shall provide otherwise with respect to any Award, if the
      Participant’s employment or other association with the Company and its
      Affiliates ends for any reason, including because of the Participant’s employer
      ceasing to be an Affiliate, (a) any outstanding Option or Stock Appreciation
      Right of the Participant shall cease to be exercisable in any respect not later
      than 90 days following that event and, for the period it remains exercisable
      following that event, shall be exercisable only to the extent exercisable at
      the
      date of that event, and (b) any other outstanding Award of the Participant
      shall
      be forfeited
      or
      otherwise subject to return to or repurchase by the Company on the terms
      specified in the applicable Award Agreement.
      Military or sick leave or other bona fide leave shall not be deemed a
      termination of employment or other association, provided
      that it
      does not exceed the longer of ninety (90) days or the period during which the
      absent Participant’s reemployment rights, if any, are guaranteed by statute or
      by contract.

     

    6.4. Non-Transferability
      of Awards.
      Except
      as
      otherwise provided in this Section 6.4, Awards shall not be transferable, and
      no
      Award or interest therein may be sold,
      transferred, pledged, assigned, or otherwise alienated or hypothecated, other
      than by will or by the laws of descent and distribution. All
      of a
      Participant’s rights in any Award may be exercised during the life of the
      Participant only by the Participant or the Participant’s legal representative.
      However, the Committee may, at or after the grant of an Award of a Nonstatutory
      Option, or shares of Restricted Stock, provide that such Award may be
      transferred by the recipient to a family member; provided,
      however,
      that
      any such transfer is without payment of any consideration whatsoever and that
      no
      transfer shall be valid unless first approved by the Committee, acting in its
      sole discretion. For this purpose, “family member” means
      any
      child, stepchild, grandchild, parent, stepparent, spouse, former spouse,
      sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
      daughter-in-law, brother-in-law, or sister-in-law, including adoptive
      relationships, any person sharing the employee’s household (other than a tenant
      or employee), a trust in which the foregoing persons have more than fifty (50)
      percent of the beneficial interests, a foundation in which the foregoing persons
      (or the Participant) control the management of assets, and any other entity
      in
      which these persons (or the Participant) own more than fifty (50) percent of
      the
      voting interests.

    

    
      
        
          
          

        

        
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    7. Specific
      Terms of Awards

     

    7.1. Options.

     

    (a) Date
      of Grant.
      The
      granting of an Option shall take place at the time specified in the Award
      Agreement. Only if expressly so provided in the applicable Award Agreement
      shall
      the Grant Date be the date on which the Award Agreement shall have been duly
      executed and delivered by the Company and the Optionee.

     

    (b) Exercise
      Price.
      The
      price at which shares of Stock may be acquired under each Incentive Option
      shall
      be not less than 100% of the Market Value of Stock on the Grant Date, or not
      less than 110% of the Market Value of Stock on the Grant Date if the Optionee
      is
      a Ten Percent Owner. The price at which shares may be acquired under each
      Nonstatutory Option shall not be so limited solely by reason of this
      Section.

     

    (c) Option
      Period.
      No
      Incentive Option may be exercised on or after the tenth anniversary of the
      Grant
      Date, or on or after the fifth anniversary of the Grant Date if the Optionee
      is
      a Ten Percent Owner. The Option period under each Nonstatutory Option shall
      not
      be so limited solely by reason of this Section.

     

    (d) Exercisability.
      An
      Option may be immediately exercisable or become exercisable in such
      installments, cumulative or non-cumulative, as the Committee may determine.
      In
      the case of an Option not otherwise immediately exercisable in full, the
      Committee may Accelerate such Option in whole or in part at any time;
provided,
      however,
      that in
      the case of an Incentive Option, any such Acceleration of the Option would
      not
      cause the Option to fail to comply with the provisions of Section 422 of
      the Code or the Optionee consents to the Acceleration.

     

    (e) Method
      of Exercise.
      An
      Option may be exercised by the Optionee giving written notice, in the manner
      provided in Section 16, specifying the number of shares with respect to
      which the Option is then being exercised. The notice shall be accompanied by
      payment in the form of cash or check payable to the order of the Company in
      an
      amount equal to the exercise price of the shares to be purchased or, subject
      in
      each instance to the Committee’s approval, acting in its sole discretion, and to
      such conditions, if any, as the Committee may deem necessary to avoid adverse
      accounting effects to the Company,

     

    (i)
      by
      delivery to the Company of shares of Stock having a Market Value equal to the
      exercise price of the shares to be purchased, or 

     

    (ii)
      by
      surrender of the Option as to all or part of the shares of Stock for which
      the
      Option is then exercisable in exchange for shares of Stock having an aggregate
      Market Value equal to the difference between (1)
      the
      aggregate Market Value of the surrendered portion of the Option, and
      (2)
      the
      aggregate exercise price under the Option for the surrendered portion of the
      Option. 

    

    
      
        
          
          

        

        
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    If
      the
      Stock is traded on an established market, payment of any exercise price may
      also
      be made through and under the terms and conditions of any formal cashless
      exercise program authorized by the Company entailing the sale of the Stock
      subject to an Option in a brokered transaction (other than to the Company).
      Receipt by the Company of such notice and payment in any authorized or
      combination of authorized means shall constitute the exercise of the Option.
      Within thirty (30) days thereafter but subject to the remaining provisions
      of
      the Plan, the Company shall deliver or cause to be delivered to the Optionee
      or
      his agent a certificate or certificates for the number of shares then being
      purchased. Such shares shall be fully paid and nonassessable. 

     

    (f) Limit
      on Incentive Option Characterization.
      An
      Incentive Option shall be considered to be an Incentive Option only to the
      extent that the number of shares of Stock for which the Option first becomes
      exercisable in a calendar year do not have an aggregate Market Value (as of
      the
      date of the grant of the Option) in excess of the “current limit”. The current
      limit for any Optionee for any calendar year shall be $100,000 minus
      the
      aggregate Market Value at the date of grant of the number of shares of Stock
      available for purchase for the first time in the same year under each other
      Incentive Option previously granted to the Optionee under the Plan, and under
      each other incentive stock option previously granted to the Optionee under
      any
      other incentive stock option plan of the Company and its Affiliates, after
      December 31, 1986. Any shares of Stock which would cause the foregoing
      limit to be violated shall be deemed to have been granted under a separate
      Nonstatutory Option, otherwise identical in its terms to those of the Incentive
      Option.

     

    (g) Notification
      of Disposition.
      Each
      person exercising any Incentive Option granted under the Plan shall be deemed
      to
      have covenanted with the Company to report to the Company any disposition of
      such shares prior to the expiration of the holding periods specified by Section
      422(a)(1) of the Code and, if and to the extent that the realization of income
      in such a disposition imposes upon the Company federal, state, local or other
      withholding tax requirements, or any such withholding is required to secure
      for
      the Company an otherwise available tax deduction, to remit to the Company an
      amount in cash sufficient to satisfy those requirements.

     

    7.2. Stock
      Appreciation Rights.

     

    (a) Tandem
      or Stand-Alone.
      Stock
      Appreciation Rights
      may be
      granted in tandem with an Option (at or, in the case of a Nonstatutory Option,
      after, the award of the Option), or alone and unrelated to an Option. Stock
      Appreciation Rights in tandem with an Option shall terminate to the extent
      that
      the related Option is exercised, and the related Option shall terminate to
      the
      extent that the tandem Stock Appreciation Rights are exercised.

     

    (b) Exercise Price.
      Stock
      Appreciation Rights shall have an exercise price of not less than fifty percent
      (50%) of the Market Value of the Stock on the date of award, or in the case
      of
      Stock Appreciation Rights in tandem with Options, the exercise price of the
      related Option.

     

    (c) Other Terms.
      Except
      as the Committee may deem inappropriate or inapplicable in the circumstances,
      Stock Appreciation Rights shall be subject to terms and conditions substantially
      similar to those applicable to a Nonstatutory Option. In addition, an
      Stock
      Appreciation Right related to an Option which can only be exercised during
      limited periods following a Change of Control may entitle the Participant to
      receive an amount based upon the highest price paid or offered for Stock in
      any
      transaction relating to the Change of Control or paid during the thirty (30)
      day
      period immediately preceding the occurrence of the Change of Control in any
      transaction reported in the stock market in which the Stock is normally
      traded.

    

    
      
        
          
          

        

        
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    7.3. Restricted
      Stock.

     

    (a) Purchase
      Price.
      Shares
      of Restricted Stock shall be issued under the Plan for such consideration,
      in
      cash, other property or services, or any combination thereof, as is determined
      by the Committee.

     

    (b) Issuance
      of Certificates.
      Each
      Participant receiving a Restricted Stock Award, subject to subsection (c) below,
      shall be issued a stock certificate in respect of such shares of Restricted
      Stock. Such certificate shall be registered in the name of such Participant,
      and, if applicable, shall bear an appropriate legend referring to the terms,
      conditions, and restrictions applicable to such Award substantially in the
      following form:

     

    The
      transferability of this certificate and the shares represented by this
      certificate are subject to the terms and conditions of Tailwind Financial Inc.
      2008 Equity Incentive Plan and an Award Agreement entered into by the registered
      owner and Tailwind Financial Inc.. Copies of such Plan and Agreement are on
      file
      in the offices of Tailwind Financial Inc..

     

    (c) Escrow
      of Shares.
      The
      Committee may require that the stock certificates evidencing shares of
      Restricted Stock be held in custody by a designated escrow agent (which may
      but
      need not be the Company) until the restrictions thereon shall have lapsed,
      and
      that the Participant deliver a stock power, endorsed in blank, relating to
      the
      Stock covered by such Award.

     

    (d) Restrictions
      and Restriction Period.
      During
      the Restriction Period applicable to shares of Restricted Stock, such shares
      shall be subject to limitations on transferability and a Risk of Forfeiture
      arising on the basis of such conditions related to the performance of services,
      Company or Affiliate performance or otherwise as the Committee may determine
      and
      provide for in the applicable Award Agreement. Any such Risk of Forfeiture
      may
      be waived or terminated, or the Restriction Period shortened, at any time by
      the
      Committee on such basis as it deems appropriate. 

     

    (e) Rights
      Pending Lapse of Risk of Forfeiture or Forfeiture of Award.
      Except
      as otherwise provided in the Plan or the applicable Award Agreement, at all
      times prior to lapse of any Risk of Forfeiture applicable to, or forfeiture
      of,
      an Award of Restricted Stock, the Participant shall have all of the rights
      of a
      stockholder of the Company, including the right to vote, and the right to
      receive any dividends with respect to, the shares of Restricted Stock. The
      Committee, as determined at the time of Award, may permit or require the payment
      of cash dividends to be deferred and, if the Committee so determines, reinvested
      in additional Restricted Stock to the extent shares are available under
      Section 4.

    

    
      
        
          
          

        

        
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    (f) Lapse
      of Restrictions.
      If and
      when the Restriction Period expires without a prior forfeiture of the Restricted
      Stock, the certificates for such shares shall be delivered to the Participant
      promptly if not theretofore so delivered.

     

    7.4. Restricted
      Stock Units.

     

    (a) Character.
      Each
      Restricted Stock Unit shall entitle the recipient to a share of Stock at a
      close
      of such Restriction Period as the Committee may establish and subject to a
      Risk
      of Forfeiture arising on the basis of such conditions relating to the
      performance of services, Company or Affiliate performance or otherwise as the
      Committee may determine and provide for in the applicable Award Agreement.
      Any
      such Risk of Forfeiture may be waived or terminated, or the Restriction Period
      shortened, at any time by the Committee on such basis as it deems
      appropriate.

     

    (b) Form
      and Timing of Payment.
      Payment
      of earned Restricted Stock Units shall be made in a single lump sum following
      the close of the applicable Restriction Period. At the discretion of the
      Committee, Participants may be entitled to receive payments equivalent to any
      dividends declared with respect to Stock referenced in grants of Restricted
      Stock Units but only following the close of the applicable Restriction Period
      and then only if the underlying Stock shall have been earned. Unless the
      Committee shall provide otherwise, any such dividend equivalents shall be paid,
      if at all, without interest or other earnings.

     

    7.5. Performance
      Units.

     

    (a) Character.
      Each
      Performance Unit shall entitle the recipient to the value of a specified number
      of shares of Stock, over the initial value for such number of shares, if any,
      established by the Committee at the time of grant, at the close of a specified
      Performance Period to the extent specified business objectives, including but
      not limited to Performance Goals, shall have been achieved.

     

    (b) Earning
      of Performance Units.
      The
      Committee shall set Performance Goals or other business objectives in its
      discretion which, depending on the extent to which they are met within the
      applicable Performance Period, will determine the number and value of
      Performance Units that will be paid out to the Participant. After the applicable
      Performance Period has ended, the holder of Performance Units shall be entitled
      to receive payout on the number and value of Performance Units earned by the
      Participant over the Performance Period, to be determined as a function of
      the
      extent to which the corresponding Performance Goals or other business objectives
      have been achieved.

     

    (c) Form
      and Timing of Payment.
      Payment
      of earned Performance Units shall be made in a single lump sum following the
      close of the applicable Performance Period. At the discretion of the Committee,
      Participants may be entitled to receive any dividends declared with respect
      to
      Stock which have been earned in connection with grants of Performance Units
      which have been earned, but not yet distributed to Participants. The Committee
      may permit or, if it so provides at grant require, a Participant to defer such
      Participant’s receipt of the payment of cash or the delivery of Stock that would
      otherwise be due to such Participant by virtue of the satisfaction of any
      requirements or goals with respect to Performance Units. If any such deferral
      election is required or permitted, the Committee shall establish rules and
      procedures for such payment deferrals.

    

    
      
        
          
          

        

        
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    7.6. Stock
      Grants.
      Stock
      Grants shall be awarded solely in recognition of significant prior or expected
      contributions to the success of the Company or its Affiliates, as an inducement
      to employment, in lieu of compensation otherwise already due and in such other
      limited circumstances as the Committee deems appropriate and
      as is
      permitted by Delaware law. Stock Grants shall be made without forfeiture
      conditions of any kind.

     

    7.7. Qualified
      Performance-Based Awards.

     

    (a) Purpose.
      The
      purpose of this Section 7.7 is to provide the Committee the ability to qualify
      Awards as “performance-based compensation” under Section 162(m) of the Code. If
      the Committee, in its discretion, decides to grant an Award as a Qualified
      Performance-Based Award, the provisions of this Section 7.7 will control over
      any contrary provision contained in the Plan. In the course of granting any
      Award, the Committee may specifically designate the Award as intended to qualify
      as a Qualified Performance-Based Award. However, no Award shall be considered
      to
      have failed to qualify as a Qualified Performance-Based Award solely because
      the
      Award is not expressly designated as a Qualified Performance-Based Award, if
      the
      Award otherwise satisfies the provisions of this Section 7.7 and the
      requirements of Section 162(m) of the Code and the regulations promulgated
      thereunder applicable to “performance-based compensation.”

     

    (b) Authority.
      All
      grants of Awards intended to qualify as Qualified Performance-Based Awards
      and
      determination of terms applicable thereto shall be made by the Committee or,
      if
      not all of the members thereof qualify as “outside directors” within the meaning
      of applicable IRS regulations under Section 162 of the Code, a subcommittee
      of the Committee consisting of such of the members of the Committee as do so
      qualify. Any action by such a subcommittee shall be considered the action of
      the
      Committee for purposes of the Plan.

     

    (b) Applicability.
      This
      Section 7.7 will apply only to those Covered Employees, or to those persons
      who the Committee determines are reasonably likely to become Covered Employees
      in the period covered by an Award, selected by the Committee to receive
      Qualified Performance-Based Awards. The Committee may, in its discretion, grant
      Awards to Covered Employees that do not satisfy the requirements of this
      Section 7.7.

     

    (c) Discretion
      of Committee with Respect to Qualified Performance-Based Awards.
      Options
      may be granted as Qualified Performance-Based Awards in accordance with Section
      7.1, except that the exercise price of any Option intended to qualify as a
      Qualified Performance-Based Award shall in no event be less that the Market
      Value of the Stock on the date of grant. Each Award intended to qualify as
      a
      Qualified Performance-Based Award, such as Restricted Stock, Restricted Stock
      Units, or Performance Units, shall be subject to satisfaction of one or more
      Performance Goals. The Committee will have full discretion to select the length
      of any applicable Restriction Period or Performance Period, the kind and/or
      level of the applicable Performance Goal, and whether the Performance Goal
      is to
      apply to the Company, a Subsidiary or any division or business unit or to the
      individual. Any Performance Goal or Goals applicable to Qualified
      Performance-Based Awards shall be objective, shall be established not later
      than
      ninety (90) days after the beginning of any applicable Performance Period (or
      at
      such other date as may be required or permitted for “performance-based
      compensation” under Section 162(m) of the Code) and shall otherwise meet the
      requirements of Section 162(m) of the Code, including the requirement that
      the outcome of the Performance Goal or Goals be substantially uncertain (as
      defined in the regulations under Section 162(m) of the Code) at the time
      established.

    

    
      
        
          
          

        

        
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    (d) Payment
      of Qualified Performance-Based Awards.
      A
      Participant will be eligible to receive payment under a Qualified
      Performance-Based Award which is subject to achievement of a Performance Goal
      or
      Goals only if the applicable Performance Goal or Goals period are achieved
      within the applicable Performance Period, as determined by the Committee. In
      determining the actual size of an individual Qualified Performance-Based Award,
      the Committee may reduce or eliminate the amount of the Qualified
      Performance-Based Award earned for the Performance Period, if in its sole and
      absolute discretion, such reduction or elimination is appropriate.

     

    (e) Maximum
      Award Payable.
      The
      maximum Qualified Performance-Based Award payment to any one Participant under
      the Plan for a Performance Period is the number of shares of Stock set forth
      in
      Section 4 above, or if the Qualified Performance-Based Award is paid in cash,
      that number of shares multiplied by the Market Value of the Stock as of the
      date
      the Qualified Performance-Based Award is granted.

     

    (f) Limitation
      on Adjustments for Certain Events.
      No
      adjustment of any Qualified Performance-Based Award pursuant to Section 8 shall
      be made except on such basis, if any, as will not cause such Award to provide
      other than “performance-based compensation” within the meaning of Section 162(m)
      of the Code.

     

    7.8. Awards
      to Participants Outside the United States.
      The
      Committee may modify the terms of any Award under the Plan granted to a
      Participant who is, at the time of grant or during the term of the Award,
      resident or primarily employed outside of the United States in any manner deemed
      by the Committee to be necessary or appropriate in order that the Award shall
      conform to laws, regulations, and customs of the country in which the
      Participant is then resident or primarily employed, or so that the value and
      other benefits of the Award to the Participant, as affected by foreign tax
      laws
      and other restrictions applicable as a result of the Participant’s residence or
      employment abroad, shall be comparable to the value of such an Award to a
      Participant who is resident or primarily employed in the United States. The
      Committee may establish supplements to, or amendments, restatements, or
      alternative versions of the Plan for the purpose of granting and administrating
      any such modified Award. No such modification, supplement, amendment,
      restatement or alternative version may increase the share limit of
      Section 4.

     

    8. Adjustment
      Provisions

     

    8.1. Adjustment
      for Corporate Actions.
      All of
      the share numbers set forth in the Plan reflect the capital structure of the
      Company as of May 12, 2008. If subsequent to that date the outstanding shares
      of
      Stock (or any other securities covered by the Plan by reason of the prior
      application of this Section) are increased, decreased, or exchanged for a
      different number or kind of shares or other securities, or if additional shares
      or new or different shares or other securities are distributed with respect
      to
      shares of Stock, as a result of a reorganization, recapitalization,
      reclassification, stock dividend, stock split, reverse stock split, or other
      similar distribution with respect to such shares of Stock, an appropriate and
      proportionate adjustment will be made in (i) the maximum numbers and kinds
      of shares provided in Section 4, (ii) the numbers and kinds of shares or
      other securities subject to the then outstanding Awards, (iii) the exercise
      price for each share or other unit of any other securities subject to then
      outstanding Options and Stock Appreciation Rights (without change in the
      aggregate purchase price as to which such Options or Rights remain exercisable),
      and (iv) the repurchase price of each share of Restricted Stock then subject
      to
      a Risk of Forfeiture in the form of a Company repurchase right.

    

    
      
        
          
          

        

        
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    8.2. Adjustment
      of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
      Events.
      In
      the
      event of any corporate action not specifically covered by the preceding Section,
      including but not limited to an extraordinary cash distribution on Stock, a
      corporate separation or other reorganization or liquidation, the Committee
      may
      make such adjustment of outstanding Awards and their terms, if any, as it,
      in
      its sole discretion, may deem equitable and appropriate in the circumstances.
      The
      Committee may make adjustments in the terms and conditions of, and the criteria
      included in, Awards in recognition of unusual or nonrecurring events (including,
      without limitation, the events described in this Section) affecting the Company
      or the financial statements of the Company or of changes in applicable laws,
      regulations, or accounting principles, whenever the Committee determines that
      such adjustments are appropriate in order to prevent dilution or enlargement
      of
      the benefits or potential benefits intended to be made available under the
      Plan.

     

    8.3. Related
      Matters.
      Any
      adjustment in Awards made pursuant to Section 8.1 or 8.2 shall be
      determined and made, if at all, by the Committee, acting in its sole discretion,
      and shall include any correlative modification of terms, including of Option
      exercise prices, rates of vesting or exercisability, Risks of Forfeiture,
      applicable repurchase prices for Restricted Stock, and Performance Goals and
      other financial objectives which the Committee may deem necessary or appropriate
      so as to ensure the rights of the Participants in their respective Awards are
      not substantially diminished nor enlarged as a result of the adjustment and
      corporate action other than as expressly contemplated in this Section 8. No
      fraction of a share shall be purchasable or deliverable upon exercise, but
      in
      the event any adjustment hereunder of the number of shares covered by an Award
      shall cause such number to include a fraction of a share, such number of shares
      shall be adjusted to the nearest smaller whole number of shares. No adjustment
      of an Option exercise price per share pursuant to this Section 8 shall result
      in
      an exercise price which is less than the par value of the Stock.

     

    8.4. Transactions.

     

    (a) Definition
      of Transaction.
      In this
      Section 8.4, “Transaction”
means
      (1) any merger or consolidation of the Company with or into another entity
      as a result of which all of the Stock of the Company is converted into or
      exchanged for the right to receive cash, securities or other property or is
      cancelled, (2) any exchange of all of the Stock of the Company for cash,
      securities or other property pursuant to a share exchange transaction, (3)
      any
      sale, transfer, or other disposition of all or substantially all of the
      Company’s assets to one or more other persons in a single transaction or series
      of related transactions or (4) any liquidation or dissolution of the Company.
      

     

    (b) Treatment
      of Options and Share Appreciation Rights.
      In a
      Transaction, the Committee may take any one or more of the following actions
      as
      to all or any (or any portion of) outstanding Options and Share Appreciation
      Rights (“Rights”).

     

    (1) Provide
      that such Rights shall be assumed, or substantially equivalent rights shall
      be
      provided in substitution therefore, by the acquiring or succeeding entity (or
      an
      affiliate thereof).

     

    (2) Upon
      written notice to the holders, provide that the holders’ unexercised Rights will
      terminate immediately prior to the consummation of such Transaction unless
      exercised within a specified period following the date of such
      notice.

    

    
      
        
          
          

        

        
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    (3) Provide
      that outstanding Rights shall become exercisable in whole or in part prior
      to or
      upon the Transaction.

     

    (4) Provide
      for cash payments, net of applicable tax withholdings, to be made to holders
      equal to the excess, if any, of (A) the acquisition price times the number
      of
      shares of Stock subject to a Right (to the extent the exercise price does not
      exceed the acquisition price) over (B) the aggregate exercise price for all
      such
      shares of Stock subject to the Right, in exchange for the termination of such
      Right. For this purpose, “acquisition
      price”
means
      the amount of cash, and market value of any other consideration, received in
      payment for a share of Stock surrendered in a Transaction. 

     

    (5) Provide
      that, in connection with a liquidation or dissolution of the Company, Rights
      shall convert into the right to receive liquidation proceeds net of the exercise
      price thereof and any applicable tax withholdings.

     

    (6) Any
      combination of the foregoing.

     

    For
      purposes of paragraph (1) above, a Right shall be considered assumed, or a
      substantially equivalent right shall be considered to have been provided in
      substitution therefore, if following consummation of the Transaction the Right
      confers the right to purchase or receive the value of, for each share of Stock
      subject to the Right immediately prior to the consummation of the Transaction,
      the consideration (whether cash, securities or other property) received as
      a
      result of the Transaction by holders of Stock for each share of Stock held
      immediately prior to the consummation of the Transaction (and if holders were
      offered a choice of consideration, the type of consideration chosen by the
      holders of a majority of the outstanding shares of Stock); provided,
      however,
      that if
      the consideration received as a result of the Transaction is not solely common
      stock (or its equivalent) of the acquiring or succeeding entity (or an affiliate
      thereof), the Committee may provide for the consideration to be received upon
      the exercise of Right to consist of or be based on solely common stock (or
      its
      equivalent) of the acquiring or succeeding entity (or an affiliate thereof)
      equivalent in value to the per share consideration received by holders of
      outstanding shares of Stock as a result of the Transaction.

     

    (c) Treatment
      of Restricted Stock.
      As to
      outstanding Awards other than Options or Share Appreciation Rights, upon the
      occurrence of a Transaction other than a liquidation or dissolution of the
      Company which is not part of another form of Transaction, the repurchase and
      other rights of the Company under each such Award shall inure to the benefit
      of
      the Company’s successor and shall, unless the Committee determines otherwise,
      apply to the cash, securities or other property which the Stock was converted
      into or exchanged for pursuant to such Transaction in the same manner and to
      the
      same extent as they applied to the Award. Upon the occurrence of a Transaction
      involving a liquidation or dissolution of the Company which is not part of
      another form of Transaction, except to the extent specifically provided to
      the
      contrary in the instrument evidencing any Award or any other agreement between
      a
      Participant and the Company, all Risks of Forfeiture and Performance Goals,
      where otherwise applicable to any such Awards, shall automatically be deemed
      terminated or satisfied, as applicable. 

     

    (d) Related
      Matters.
      In
      taking any of the actions permitted under this Section 8.4, the Committee
      shall not be obligated to treat all Awards, all Awards held by a Participant,
      or
      all Awards of the same type, identically. Any
      determinations required to carry out the foregoing provisions of this Section
      8.4, including but not limited to the market value of other consideration
      received by holders of Stock in a Transaction and whether substantially
      equivalent Rights have been substituted, shall be made by the Committee acting
      in its sole discretion.

    

    
      
        
          
          

        

        
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    9. Change
      of Control

     

    Except
      as
      otherwise provided below, upon the occurrence of a Change of
      Control: 

    

      (a)
        any
        and all Options and Stock Appreciation Rights not already exercisable in
        full
        shall Accelerate with respect to 100% of the shares for which such Options
        or
        Stock Appreciation Rights are not then exercisable if the Participant holding
        such Options and/or Stock Appreciation Rights is terminated by the Company
        not
        for cause (as defined in the employee’s employment agreement with the Company,
        if any, or pursuant to the Company’s policies as then in effect) within 12
        months following the Change of Control;

       

      (b)
        any
        Risk of Forfeiture applicable to Restricted Stock and Restricted Stock Units
        which is not based on achievement of Performance Goals shall lapse with respect
        to 100% of the Restricted Stock and Restricted Stock Units still subject
        to such
        Risk of Forfeiture immediately prior to the Change of Control if the Participant
        holding such Restricted Stock and/or Restricted Stock Units is terminated
        by the
        Company not for cause (as defined in the employee’s employment agreement with
        the Company, if any, or pursuant to the Company’s policies as then in effect)
        within 12 months following the Change of Control; and

    

     

    (c) all
      outstanding Awards of Restricted Stock and Restricted Stock Units conditioned
      on
      the achievement of Performance Goals or other business objectives and the target
      payout opportunities attainable under outstanding Performance Units shall be
      deemed to have been satisfied as of the effective date of the Change of Control
      as to a pro rata number of shares based on the assumed achievement of all
      relevant Performance Goals or objectives and the length of time within the
      Performance Period which has elapsed prior to the Change of Control. All such
      Awards of Performance Units and Restricted Stock Units shall be paid to the
      extent earned to Participants in accordance with their terms within thirty
      (30)
      days following the effective date of the Change of Control.

     

    None
      of
      the foregoing shall apply, however, (i) in the case of a Qualified
      Performance-Based Award specifically designated as such by the Committee at
      the
      time of grant (except to the extent allowed by Section 162(m) of the Code),
      (ii)
      in the case of any Award pursuant to an Award Agreement requiring other or
      additional terms upon a Change of Control (or similar event), or (iii) if
      specifically prohibited under applicable laws, or by the rules and regulations
      of any governing governmental agencies or national securities
      exchanges.

     

    10. Settlement
      of Awards

     

    10.1. In
      General.
      Options
      and Restricted Stock shall be settled in accordance with their terms. All other
      Awards may be settled in cash, Stock, or other Awards, or a combination thereof,
      as determined by the Committee at or after grant and subject to any contrary
      Award Agreement. The Committee may not require settlement of any Award in Stock
      pursuant to the immediately preceding sentence to the extent issuance of such
      Stock would be prohibited or unreasonably delayed by reason of any other
      provision of the Plan.

     

    10.2. Violation
      of Law.
      Notwithstanding any other provision of the Plan or the relevant Award Agreement,
      if, at any time, in the reasonable opinion of the Company, the issuance of
      shares of Stock covered by an Award may constitute a violation of law, then
      the
      Company may delay such issuance and the delivery of a certificate for such
      shares until (i) approval shall have been obtained from such governmental
      agencies, other than the Securities and Exchange Commission, as may be required
      under any applicable law, rule, or regulation and (ii) in the case where such
      issuance would constitute a violation of a law administered by or a regulation
      of the Securities and Exchange Commission, one of the following conditions
      shall
      have been satisfied:

    

    
      
        
          
          

        

        
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    (a) the
      shares are at the time of the issue of such shares effectively registered under
      the Securities Act of 1933; or

     

    (b) the
      Company shall have determined, on such basis as it deems appropriate (including
      an opinion of counsel in form and substance satisfactory to the Company) that
      the sale, transfer, assignment, pledge, encumbrance or other disposition of
      such
      shares or such beneficial interest, as the case may be, does not require
      registration under the Securities Act of 1933, as amended or any applicable
      State securities laws.

     

    The
      Company shall make all reasonable efforts to bring about the occurrence of
      said
      events.

     

    10.3. Corporate
      Restrictions on Rights in Stock.
      Any
      Stock to be issued pursuant to Awards granted under the Plan shall be subject
      to
      all restrictions upon the transfer thereof which may be now or hereafter imposed
      by the charter, certificate or articles, and by-laws, of the Company. Whenever
      Stock is to be issued pursuant to an Award, if the Committee so directs at
      or
      after grant, the Company shall be under no obligation to issue such shares
      until
      such time, if ever, as the recipient of the Award (and any person who exercises
      any Option, in whole or in part), shall have become a party to and bound by
      the
      Stockholders’ Agreement, if any. In the event of any conflict between the
      provisions of this Plan and the provisions of the Stockholders’ Agreement, the
      provisions of the Stockholders’ Agreement shall control except as required to
      fulfill the intention that this Plan constitute an incentive stock option plan
      within the meaning of Section 422 of the Code, but insofar as possible the
      provisions of the Plan and such Agreement shall be construed so as to give
      full
      force and effect to all such provisions.

     

    10.4. Investment
      Representations.
      The
      Company shall be under no obligation to issue any shares covered by any Award
      unless the shares to be issued pursuant to Awards granted under the Plan have
      been effectively registered under the Securities Act of 1933, as amended, or
      the
      Participant shall have made such written representations to the Company (upon
      which the Company believes it may reasonably rely) as the Company may deem
      necessary or appropriate for purposes of confirming that the issuance of such
      shares will be exempt from the registration requirements of that Act and any
      applicable state securities laws and otherwise in compliance with all applicable
      laws, rules and regulations, including but not limited to that the Participant
      is acquiring the shares for his or her own account for the purpose of investment
      and not with a view to, or for sale in connection with, the distribution of
      any
      such shares.

     

    10.5. Registration.
      If the
      Company shall deem it necessary or desirable to register under the Securities
      Act of 1933, as amended or other applicable statutes any shares of Stock issued
      or to be issued pursuant to Awards granted under the Plan, or to qualify any
      such shares of Stock for exemption from the Securities Act of 1933, as amended
      or other applicable statutes, then the Company shall take such action at its
      own
      expense. The Company may require from each recipient of an Award, or each holder
      of shares of Stock acquired pursuant to the Plan, such information in writing
      for use in any registration statement, prospectus, preliminary prospectus or
      offering circular as is reasonably necessary for that purpose and may require
      reasonable indemnity to the Company and its officers and directors from that
      holder against all losses, claims, damage and liabilities arising from use
      of
      the information so furnished and caused by any untrue statement of any material
      fact therein or caused by the omission to state a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading in
      the
      light of the circumstances under which they were made. In addition, the Company
      may require of any such person that he or she agree that, without the prior
      written consent of the Company or the managing underwriter in any public
      offering of shares of Stock, he or she will not sell, make any short sale of,
      loan, grant any option for the purchase of, pledge or otherwise encumber, or
      otherwise dispose of, any shares of Stock during the 180 day period commencing
      on the effective date of the registration statement relating to the underwritten
      public offering of securities. Without limiting the generality of the foregoing
      provisions of this Section 10.5, if in connection with any underwritten public
      offering of securities of the Company the managing underwriter of such offering
      requires that the Company's directors
      and officers enter into a lock-up agreement containing provisions that are
      more
      restrictive than the provisions set forth in the preceding sentence, then (a)
      each holder of shares of Stock acquired pursuant to the Plan (regardless of
      whether such person has complied or complies with the provisions of clause
      (b)
      below) shall be bound by, and shall be deemed to have agreed to, the same
      lock-up terms as those to which the Company's directors and officers are
      required to adhere; and (b) at the request of the Company or such managing
      underwriter, each such person shall execute and deliver a lock-up agreement
      in
      form and substance equivalent to that which is required to be executed by the
      Company's directors and officers.

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    10.6. Placement
      of Legends; Stop Orders; etc.
      Each
      share of Stock to be issued pursuant to Awards granted under the Plan may bear
      a
      reference to the investment representation made in accordance with
      Section 10.4 in addition to any other applicable restriction under the
      Plan, the terms of the Award and if applicable under the Stockholders’ Agreement
      and to the fact that no registration statement has been filed with the
      Securities and Exchange Commission in respect to such shares of Stock. All
      certificates for shares of Stock or other securities delivered under the Plan
      shall be subject to such stock transfer orders and other restrictions as the
      Committee may deem advisable under the rules, regulations, and other
      requirements of any stock exchange upon which the Stock is then listed, and
      any
      applicable federal or state securities law, and the Committee may cause a legend
      or legends to be put on any such certificates to make appropriate reference
      to
      such restrictions.

     

    10.7. Tax
      Withholding.
      Whenever
      shares of Stock are issued or to be issued pursuant to Awards granted under
      the
      Plan, the Company shall have the right to require the recipient to remit to
      the
      Company an amount sufficient to satisfy federal, state, local or other
      withholding tax requirements if, when, and to the extent required by law
      (whether so required to secure for the Company an otherwise available tax
      deduction or otherwise) prior to the delivery of any certificate or certificates
      for such shares. The obligations of the Company under the Plan shall be
      conditional on satisfaction of all such withholding obligations and the Company
      shall, to the extent permitted by law, have the right to deduct any such taxes
      from any payment of any kind otherwise due to the recipient of an Award.
      However, in such cases
      Participants may elect, subject to the approval of the Committee, acting in
      its
      sole discretion, to satisfy an applicable withholding requirement, in whole
      or
      in part, by having the Company withhold shares to satisfy their tax obligations.
      Participants may only elect to have Shares withheld having a Market Value on
      the
      date the tax is to be determined equal to the minimum statutory total tax which
      could be imposed on the transaction. All elections shall be irrevocable, made
      in
      writing, signed by the Participant, and shall be subject to any restrictions
      or
      limitations that the Committee deems appropriate.

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

     

    11. Reservation
      of Stock

     

    The
      Company shall at all times during the term of the Plan and any outstanding
      Awards granted hereunder reserve or otherwise keep available such number of
      shares of Stock as will be sufficient to satisfy the requirements of the Plan
      (if then in effect) and the Awards and shall pay all fees and expenses
      necessarily incurred by the Company in connection therewith.

     

    12. Limitation
      of Rights in Stock; No Special Service Rights

     

    A
      Participant shall not be deemed for any purpose to be a stockholder of the
      Company with respect to any of the shares of Stock subject to an Award, unless
      and until a certificate shall have been issued therefor and delivered to the
      Participant or his agent. Any Stock to be issued pursuant to Awards granted
      under the Plan shall be subject to all restrictions upon the transfer thereof
      which may be now or hereafter imposed by the Certificate of Incorporation and
      the By-laws of the Company. Nothing contained in the Plan or in any Award
      Agreement shall confer upon any recipient of an Award any right with respect
      to
      the continuation of his or her employment or other association with the Company
      (or any Affiliate), or interfere in any way with the right of the Company (or
      any Affiliate), subject to the terms of any separate employment or consulting
      agreement or provision of law or corporate articles or by-laws to the contrary,
      at any time to terminate such employment or consulting agreement or to increase
      or decrease, or otherwise adjust, the other terms and conditions of the
      recipient’s employment or other association with the Company and its
      Affiliates.

     

    13. Unfunded
      Status of Plan

     

    The
      Plan
      is intended to constitute an “unfunded” plan for incentive compensation, and the
      Plan is not intended to constitute a plan subject to the provisions of the
      Employee Retirement Income Security Act of 1974, as amended. With respect to
      any
      payments not yet made to a Participant by the Company, nothing contained herein
      shall give any such Participant any rights that are greater than those of a
      general creditor of the Company. In its sole discretion, the Committee may
      authorize the creation of trusts or other arrangements to meet the obligations
      created under the Plan to deliver Stock or payments with respect to Options,
      Stock Appreciation Rights and other Awards hereunder, provided,
      however,
      that
      the existence of such trusts or other arrangements is consistent with the
      unfunded status of the Plan.

     

    14. Nonexclusivity
      of the Plan

     

    Neither
      the adoption of the Plan by the Board nor the submission of the Plan to the
      stockholders of the Company shall be construed as creating any limitations
      on
      the power of the Board to adopt such other incentive arrangements as it may
      deem
      desirable, including without limitation, the granting of stock options and
      restricted stock other than under the Plan, and such arrangements may be either
      applicable generally or only in specific cases.

     

    15. Termination
      and Amendment of the Plan

     

    15.1. Termination
      or Amendment of the Plan.
      The
      Board
      may at any time terminate the Plan or make such modifications of the Plan as
      it
      shall deem advisable. Unless the Board otherwise expressly provides, no
      amendment of the Plan shall affect the terms of any Award outstanding on the
      date of such amendment.

    

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

     

    15.2. Termination
      or Amendment of Outstanding Awards.
      The
      Committee may amend the terms of any Award theretofore granted, prospectively
      or
      retroactively, provided that the Award as amended is consistent with the terms
      of the Plan. Also within the limitations of the Plan, the Committee may modify,
      extend or assume outstanding Awards or may accept the cancellation of
      outstanding Awards or of outstanding stock options or other equity-based
      compensation awards granted by another issuer in return for the grant of new
      Awards for the same or a different number of shares and on the same or different
      terms and conditions (including but not limited to the exercise price of any
      Option). Furthermore, the Committee may at any time (a) offer to buy out for
      a
      payment in cash or cash equivalents an Award previously granted or (b) authorize
      the recipient of an Award to elect to cash out an Award previously granted,
      in
      either case at such time and based upon such terms and conditions as the
      Committee shall establish.

     

    15.3. Limitations
      on Amendments, Etc. No
      amendment or modification of the Plan by the Board, or of an outstanding Award
      by the Committee, shall impair the rights of the recipient of any Award
      outstanding on the date of such amendment or modification or such Award, as
      the
      case may be, without
      the Participant’s consent; provided,
      however,
      that no
      such consent shall be required if (i) the Board or Committee, as the case
      may be, determines in its sole discretion and prior to the date of any Change
      of
      Control that such amendment or alteration either is required or advisable in
      order for the Company, the Plan or the Award to satisfy any law or
      regulation,
      including without limitation the provisions of Section 409A of the
      Code,
      or to
      meet the requirements of or avoid adverse financial accounting consequences
      under any accounting standard, or (ii) the Board or Committee, as the case
      may be, determines in its sole discretion and prior to the date of any Change
      of
      Control that such amendment or alteration is not reasonably likely to
      significantly diminish the benefits provided under the Award, or that any such
      diminution has been adequately compensated.

     

    16. Notices
      and Other Communications

     

    Any
      notice, demand, request or other communication hereunder to any party shall
      be
      deemed to be sufficient if contained in a written instrument delivered in person
      or duly sent by first class registered, certified or overnight mail, postage
      prepaid, or telecopied with a confirmation copy by regular, certified or
      overnight mail, addressed or telecopied, as the case may be, (i) if to the
      recipient of an Award, at his or her residence address last filed with the
      Company and (ii) if to the Company, at its principal place of business,
      addressed to the attention of its Treasurer, or to such other address or
      telecopier number, as the case may be, as the addressee may have designated
      by
      notice to the addressor. All such notices, requests, demands and other
      communications shall be deemed to have been received: (i) in the case of
      personal delivery, on the date of such delivery; (ii) in the case of
      mailing, when received by the addressee; and (iii) in the case of facsimile
      transmission, when confirmed by facsimile machine report.

     

    17. Governing
      Law

     

    The
      Plan
      and all Award Agreements and actions taken thereunder shall be governed,
      interpreted and enforced in accordance with the laws of the Delaware, without
      regard to the conflict of laws principles thereof.

     

      
      

    

    
      
        
        

      

      
        19Unassociated Document

    
      Exhibit
        10.21

       

      AMENDED
        AND RESTATED EMPLOYMENT AGREEMENT

       

      This
        AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement")
        is
        dated as of [________], 2008 and is entered into between Tailwind Financial
        Inc., a Delaware corporation (the "Company"),
        and
        Bruce H. Lipnick (the "Employee").

       

      WHEREAS,
        Asset Alliance Corporation, a Delaware Corporation ("AAC")
        and
        the Employee are party to that certain Employment Agreement dated as of October,
        2000, as amended from time to time (the "Prior
        Agreement");

       

      WHEREAS,
        the Company is party to that certain Agreement and Plan of Merger (the
        "Merger
        Agreement"),
        dated
        January 8, 2008, by and among the Company, Buyer Acquisition Corporation,
        a
        Delaware corporation and a wholly owned subsidiary of the Company and AAC;
        and

       

      WHEREAS,
        as a condition to the Company consummating the transactions contemplated
        by the
        Merger Agreement, the Employee and AAC have agreed to terminate the Prior
        Agreement and the Employee has agreed to enter into this Agreement, all
        effective upon and subject to the consummation of the transactions contemplated
        by the Agreement (the date of such consummation, the "Effective
        Date").

       

      NOW,
        THEREFORE, in consideration of the mutual covenants herein contained and
        for
        good and valuable consideration, receipt of which is hereby acknowledged,
        the
        parties, intending to be legally bound, agree, effective as of the Effective
        Date, as follows:

       

       

      
        	
                1.

              	
                Employment
                  and Term.

              

      

       

      
        	 	
                (a)

              	
                The
                  Employee shall serve on the Board of Directors of the Company (the
                  "Board")
                  and as Chief Executive Officer of the Company and in such other
                  executive
                  managerial position or positions with the Company or its subsidiaries
                  or
                  affiliates as shall hereafter be designated by the Board, to perform
                  such
                  managerial duties consistent with the usual duties of an officer
                  of such
                  status. Such employment shall be on the terms and conditions set
                  forth
                  herein. The Employee agrees to devote substantially all of the
                  Employee's
                  business time to the faithful and diligent performance of the duties
                  provided herein.

              

      

       

      
        	 	
                (b)

              	
                Unless
                  earlier terminated in accordance with Section 3 hereof, the term
                  of the
                  Employee's employment by the Company (the "Term")
                  shall commence as of the Effective Date and continue for a period
                  of three
                  (3) years from such date (the "Initial
                  Employment Period"),
                  which Initial Employment Period shall be automatically extended
                  for an
                  additional one (1) year period on each anniversary of the Effective
                  Date
                  (such that the remaining term
                  as of each anniversary shall be three (3) years) unless either
                  the
                  Employee or the Company gives sixty (60) days notice that the Term
                  shall
                  not be extended, subject to the conditions of termination pursuant
                  to
                  Section 3 hereof.

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                2.

              	
                Compensation.

              

      

       

      
        	 	
                (a)

              	
                Salary.
                  The
                  Company shall compensate the Employee with a base salary of $750,000
                  per
                  annum, commencing
                  on the Effective Date and payable in accordance with the normal
                  payroll
                  practices of the Company. The base salary shall be reviewed annually
                  and
                  may be increased (but shall not be decreased) by the Board in its
                  sole
                  discretion.

              

      

       

      
        	 	
                (b)

              	
                Guaranteed
                  Annual Bonus. The
                  Company shall pay the Employee for each calendar year during the
                  Term a
                  guaranteed annual bonus of $300,000, payable in accordance with
                  normal
                  payroll practices of the Company but in no event later than the
                  15th day
                  of the third month following the
                  year for
                  which such bonus is paid.

              

      

       

      
        	 	
                (c)

              	
                Incentive
                  Bonus. The
                  Company shall pay Employee for each calendar year during the Term
                  an
                  incentive bonus determined by reference to the Company's consolidated
                  Earnings Before Interest, Taxes, Depreciation and Amortization
                  ("EBITDA")
                  before executive incentive and other executive discretionary compensation,
                  in each case including the results of AAC and its subsidiaries
                  from not
                  later than January 1, 2008, but that for the purposes of calculating
                  EBITDA, earnings should exclude gain/loss associated with certain
                  items
                  such as impairment or valuation allowance for long-lived assets
                  and
                  gain/loss on separation from affiliates (as so adjusted, "Adjusted
                  EBITDA").
                  The incentive bonus (the "Incentive
                  Bonus")
                  that the Employee shall receive shall be 4.56% of Adjusted EBITDA,
                  provided that no Incentive Bonus shall be payable for a particular
                  year
                  unless the Company's Adjusted EBITDA is greater than twelve million
                  dollars ($12,000,000). Seventy-five percent (75%) of the Incentive
                  Bonus
                  shall be paid no later than the 30th day after the year for which
                  such
                  Incentive Bonus was earned, and the remainder of the Incentive
                  Bonus shall
                  be paid no later than the 15th day of the third month following the
                  end of the year for which such Incentive Bonus was
                  earned.

              

      

       

      
        	 	
                (d)

              	
                Discretionary
                  Bonus. Employee
                  may be eligible to receive a discretionary annual bonus in such
                  amount and
                  based on special achievement, in each case as determined by the
                  Board in
                  its sole discretion.

              

      

       

      
        	 	
                (e)

              	
                Option
                  Plan. Employee
                  shall be eligible to participate in the Company's employee option
                  pool
                  (the "Employee
                  Option Pool")
                  and on the Effective Date shall be granted an option to purchase
                  1,050,000
                  shares of the Company's common stock with an exercise price equal
                  to the
                  closing price of the Company's common stock on the Effective
                  Date. Unless
                  otherwise provided in applicable agreement, payment of the exercise
                  price
                  and any other payment required may be made in on a net-settlement
                  basis
                  with the Company withholding the amount of common stock sufficient
                  to
                  cover the exercise price and tax withholding obligation. Such options
                  will
                  vest and become exercisable on the Effective Date.
                  

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (f)

              	
                Benefits.
                  The
                  Employee shall be entitled to participate in any Company sponsored
                  401(k)
                  plan and any other retirement plan, deferred compensation plan
                  and any
                  other executive compensation plan, and any Company sponsored group
                  health,
                  medical, hospitalization, disability, accident and life insurance
                  plans,
                  all on such terms as the Board shall determine in establishing
                  such
                  benefit programs as promptly as is reasonably practicable after
                  the
                  Effective Date, and such other employee benefits as the Board may
                  hereafter make available to the executives of the Company, provided
                  that
                  in no event shall benefits be less favorable in the aggregate than
                  those
                  in effect immediately before the Effective Date unless otherwise
                  agreed to
                  by the Employee in writing. The Company agrees to pay to the Employee
                  an
                  amount equal to the premiums on (i) the personal life insurance
                  policy for
                  the Employee providing death benefits for the Employee's designated
                  beneficiaries and (ii) the personal disability policy for the benefit
                  of
                  the Employee, each as in effect at the time of
                  termination.

              

      

       

      
        	 	
                (g)

              	
                Expenses.
                  The
                  Company shall pay or reimburse the Employee for all expenses normally
                  reimbursed by the Company and reasonably incurred by the Employee
                  in
                  furtherance of the Employee's duties hereunder, including, without
                  limitation, expenses for a Company leased automobile, gas, insurance,
                  parking, and related expenses consistent with the Company's automobile
                  policies as adopted by the Board, and for traveling, meals, hotel
                  accommodations , car service and driver, and the like upon submission
                  by
                  the Employee of vouchers or an itemized list thereof prepared in
                  compliance with such rules relating thereto as the Board may, from
                  time to
                  time, adopt and as may be required in order to permit such payments
                  as
                  proper deductions to the Company under the Internal Revenue Code
                  of 1986,
                  as amended (the "Code")
                  and the rules and regulations adopted pursuant thereto now or hereafter
                  in
                  effect; provided,
                  however,
                  that to the extent required to comply with the provisions of Section
                  409A
                  of the Code, no reimbursement of expenses incurred by the Employee
                  during
                  any taxable year shall be made after the last day of the following
                  taxable
                  year, and the right to reimbursement shall not be subject to liquidation
                  or exchange for another benefit.

              

      

       

      
        	 	
                (h)

              	
                Vacations.
                  During
                  each year of employment, the Employee shall be entitled to paid
                  vacations
                  and personal days for the greater of (A) a minimum of four (4)
                  weeks, or
                  (B) such period as may be provided from time to time in the Company's
                  vacation policy; provided, however, that any unused vacation at
                  the end of
                  the year may be carried over to following years so long as no more
                  than
                  eight (8) weeks of unused vacation may be carried over to a following
                  year.

              

      

       

      
        	 	
                (i)

              	
                Continuation
                  of Life Insurance Policy. The
                  Company shall continue that certain life insurance policy on the
                  Employee's life for $19 million purchased by the Company (the
                  "Life
                  Insurance Policy").
                  The Company shall continue to be the beneficiary of the Life Insurance
                  Policy, and shall pay the premiums due on such policy during the
                  Term. Any
                  dividends on the Life Insurance Policy prior to its maturity or the death
                  of the Employee shall inure to the benefit of the Company.
                  

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that the Employee's death occurs during the Term, subject to applicable
        law, including but not limited to the requirements of any stock exchange
        on
        which the Company is listed, the Company shall use the proceeds of the Life
        Insurance Policy as follows: (1) to purchase, and the estate of the Employee
        shall be obligated to sell, shares of capital stock of the Company then held
        by
        the Employee's estate (the "Shares"),
        at a
        price per Share equal to the average of the closing prices for the Company's
        common stock for the 20 trading days ending immediately prior to the date
        of the
        Employee's death for an amount of Shares equal to the lesser of (x) all of
        such
        Shares and (y) the quotient obtained by dividing $15 million by such average
        price; and (2) if less than $15 million is used by the Company to repurchase
        Shares, the excess of $15 million in proceeds over the amount used to repurchase
        Shares shall be paid to the Employee's estate.

       

      Within
        sixty (60) days after termination of this Agreement, the Bruce H. Lipnick
        Irrevocable Inter Vivos Life Insurance Trust U/A/D August 13, 1999, or its
        designee, may, at its option, purchase the Life Insurance Policy for a price
        not
        to exceed the cash surrender value and unearned premiums as of the date of
        the
        termination of this Agreement, less any indebtedness thereon; provided,
        however,
        that if
        the Life Insurance Policy is a term policy, the price shall be the unearned
        portion of the premium paid. The Company shall not cause or permit the Life
        Insurance Policy to lapse except upon termination of this Agreement and
        following sixty (60) days' prior written notice to the Employee. 

       

       

      
        	
                3.

              	
                Termination.

              

      

       

      
        	 	
                (a)

              	
                This
                  Agreement may be terminated at any time by the Company with or
                  without
                  Cause, upon Permanent Disability, by the Employee for Good Reason
                  or by
                  the Employee for any other reason (with thirty (30) days notice),
                  and
                  shall terminate upon death.

              

      

       

      
        	 	
                (b)

              	
                In
                  the event that the Employee's employment with the Company is terminated
                  by
                  the Company without Cause or is terminated by the Employee for
                  Good
                  Reason, then during the period from the effective date of termination
                  through the date on which the then current term of this Agreement
                  was to
                  expire, the Employee shall, in accordance with the Company’s normal
                  payroll practices, continue to receive the full amount of the Employee's
                  then current base salary plus all other benefits to which the Employee
                  is
                  entitled to receive pursuant to Section 2 hereof and otherwise
                  (including,
                  without limitation, the continued vesting and exercisability during
                  such
                  period of all stock options held by the Employee) and in a single
                  lump sum
                  within five (5) days after the date of the Employee's employment
                  is
                  terminated three (3) times the average of the Incentive Bonus paid
                  or
                  payable to the Employee in the last two (2) years; provided, however,
                  that
                  if such termination is the result of a Change of Control, then
                  all
                  unvested options or restricted shares shall vest immediately and
                  (as
                  applicable) become exercisable upon the date the Employee's employment
                  is
                  terminated and remain exercisable for a period of not less than
                  ninety
                  (90) days following termination (but not beyond their expiration
                  date),
                  and the full amount which would be payable to the Employee under
                  this
                  subparagraph (b) during the foregoing period through the end of
                  the
                  then-current term of this Agreement will be paid to the Employee
                  in a
                  single lump sum within five (5) days after the date the Employee's
                  employment is terminated.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                For
                  purposes of this Agreement, termination of employment means the
                  Employee
                  has incurred a "separation from service" within the meaning of
                  Section
                  409A of the Code and applicable guidance issued
                  thereunder.

              

      

       

      
        	 	
                (d)

              	
                In
                  the event the Employee's employment with the Company is terminated
                  upon
                  the Employee's death or Permanent Disability, the Employee or the
                  Employee's legal representative shall continue to receive the Employee's
                  then current base salary for a two (2) year period and all stock
                  options
                  held by Employee shall, to the extent vested, continue to be exercisable
                  during such period.

              

      

       

      
        	 	
                (e)

              	
                In
                  the event the Employee's employment with the Company is terminated
                  by the
                  Company for Cause, the Company shall not be obligated to pay the
                  Employee
                  any compensation or benefits after the date of termination, any
                  unvested
                  stock options held by the Employee will expire immediately, and
                  any vested
                  stock options will remain exercisable for a period of ninety (90)
                  days
                  following termination (but not beyond their expiration
                  date).

              

      

       

      
        	 	
                (f)

              	
                For
                  purposes hereof, "Cause"
                  shall mean any of the following: (i) the continued, intentional
                  failure,
                  neglect or refusal of the Employee to substantially fulfill the
                  Employee's
                  material duties as an employee after ninety (90) days' notice of
                  breach
                  has been provided by the Company; (ii) a material breach of any
                  fiduciary
                  duty or other material dishonesty by the Employee with respect
                  to the
                  Company or any affiliate thereof resulting in actual material harm
                  to the
                  Company or such affiliate; or (iii) the conviction of the Employee
                  for a
                  felony.

              

      

       

      
        	 	
                (g)

              	
                For
                  purposes hereof, "Permanent
                  Disability"
                  shall mean the total incapacitation of the Employee so as to preclude
                  performance of the duties of the Employee's employment hereunder
                  for an
                  aggregate period of six (6) months in any twelve (12) month
                  period.

              

      

       

      
        	 	
                (h)

              	
                For
                  purposes hereof, "Good
                  Reason"
                  means one or more of the following: (i) a material diminution in
                  the
                  Employee's compensation; (ii) a material diminution in the Employee's
                  authority, duties, or responsibilities; (iii) a material adverse
                  change in
                  reporting responsibilities; (iv) a material change in the geographic
                  location at which the Employee must perform the services (including,
                  without limitation, a relocation outside Manhattan, New York that
                  results
                  in a material adverse change in commute); or (v) any other action
                  or
                  inaction that constitutes a material breach of the terms of this
                  Agreement
                  (expressly including, without limitation, a reduction in benefits
                  in
                  violation of Section 2(f) hereof). The Employee shall provide notice
                  of
                  the existence of the Good Reason condition within ninety (90) days
                  of the
                  date he learns of the condition, and the Company shall have a period
                  of
                  thirty (30) days during which it may remedy the condition, and
                  in case of
                  full remedy such condition shall not be deemed to constitute Good
                  Reason
                  hereunder.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                For
                  purposes hereof, a "Change
                  of Control"
                  of the Company shall have occurred if (a) any "person" (as such
                  term is
                  used in Sections 13(d) and 14(d)(2) of the U.S. Securities Exchange
                  Act of
                  1934, as amended (the "Exchange
                  Act")),
                  other than the Company or any subsidiary of the Company or any
                  employee
                  benefit plan sponsored by the Company or any subsidiary of the
                  Company,
                  shall become the beneficial owner (within the meaning of Rule 13d-3
                  under
                  the Exchange Act), directly or indirectly, of securities of the
                  Company
                  representing in excess of 50% of the combined voting power of the
                  Company's then outstanding securities, or if (b) during any period
                  of two
                  (2) consecutive years, individuals who at the beginning of such
                  period
                  constituted the Board cease for any reason to constitute a majority
                  of the
                  directors thereof, unless each new director was elected by, or
                  on the
                  recommendation of, a majority of the directors then still in office
                  who
                  were directors at the beginning of such period.

              

      

       

      
        	 	
                (j)

              	
                The
                  Employee shall have no obligation to seek to mitigate any amounts
                  payable
                  under this Section 3 and any amounts the Employee receives from
                  other
                  employment shall not be offset against or otherwise reduce the
                  amount due
                  to the Employee hereunder.

              

      

       

      
        	 	
                (k)

              	
                In
                  the event that the Employee becomes entitled to any payment under
                  this
                  Section 3 as a result of a termination of employment occurring
                  on or
                  before the first anniversary of the Effective Date, then this Section
                  3(k)
                  shall apply and Section 3(l) shall not be applicable. In the event
                  the
                  Company determines, based upon the advice of the independent public
                  accountants for the Company, that part or all of the consideration,
                  compensation or benefits to be paid to the Employee under this
                  Agreement,
                  singularly or together with any consideration, compensation or
                  benefits to
                  be paid to the Employee under any other plan, arrangement or agreement,
                  constitutes "parachute payments" under Section 280G(b)(2) of the
                  Code,
                  then, if the aggregate present value of such parachute payments
                  (collectively, the "Parachute
                  Amount")
                  exceeds 2.99 times the Employee's "base amount", as defined in
                  Section
                  280G(b)(3) of the Code (the "Employee
                  Base Amount"),
                  the amounts constituting "parachute payments" which would otherwise
                  be
                  payable to or for the benefit of the Employee under this Agreement
                  shall
                  be eliminated or reduced to the extent necessary so that the Parachute
                  Amount is equal to 2.99 times the Employee Base Amount. The independent
                  public accountants for the Company shall determine which consideration,
                  compensation or benefits shall be eliminated or reduced in accordance
                  with
                  this Section 3(k) and to what extent they shall be so eliminated
                  or
                  reduced, in such manner that the Employee shall retain, after such
                  elimination or reduction, the maximum after-tax benefit.
                  

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (l)

              	
                In
                  the event that the Employee becomes entitled to any payment under
                  this
                  Section 3 as a result of a termination of employment occurring
                  after the
                  first anniversary of the Effective Date, then this Section 3(l)
                  shall
                  apply and Section 3(k) shall not be applicable. If any of the payments
                  or
                  benefits received or to be received by the Employee (whether pursuant
                  to
                  the terms of this Agreement or any other plan, arrangement
                  or
                  agreement (all such payments and benefits, excluding the Gross-Up
                  Payment,
                  being hereinafter referred to as the "Total
                  Payments"))
                  will be subject to any excise tax imposed under Section 4999 of
                  the Code
                  (the "Excise
                  Tax"),
                  the Company shall pay to the Employee an additional amount (the
                  "Gross
                  Up Payment")
                  such that the net amount retained by the Employee, after deduction
                  of any
                  Excise Tax on the Total Payments and any federal, state and local
                  income
                  and employment taxes and Excise Tax upon the Gross-Up Payment,
                  and after
                  taking into account the phase out of itemized deductions and personal
                  exemptions attributable to the Gross-Up Payment, shall be equal
                  to the
                  Total Payments. The Company will make any Excise Tax payments to
                  the
                  Employee as soon as practical after the Employee remits the excise
                  tax
                  imposed under Section 4999 of the Code, but in any event no later
                  than the
                  end of the calendar year following the calendar year in which the
                  Employee
                  makes such payments.

              

      

       

      
        	 	
                (m)

              	
                To
                  the extent required by Section 409A, amounts that would otherwise
                  be
                  payable under this Section 3 during the six-month period immediately
                  following the Employee's termination of employment shall instead
                  be paid
                  on the first business day after the expiration of such six-month
                  period,
                  plus interest thereon, at a rate equal to 120 percent of the applicable
                  Federal short-term rate (as defined in Section 1274(d) of the Code)
                  for
                  the month in which such date of termination occurs from the respective
                  dates on which such amounts would otherwise have been paid until
                  the
                  actual date of payment.

              

      

       

       

      
        	
                4.

              	
                Noncompetition;
                  Nonintervention. 

              

      

       

      
        	 	
                (a)

              	
                While
                  in the employ of the Company, the Employee agrees to devote substantially
                  all of the Employee's business time, attention and energies to
                  the
                  performance of the business of the Company and the Employee shall
                  not,
                  directly or indirectly, alone or as a member of any partnership
                  or other
                  business organization, or as a partner, officer, director, employee,
                  stockholder, consultant, or agent of any other corporation, partnership,
                  or other business organization, be actively engaged in or concerned
                  with
                  any other duties or pursuits which interfere with the performance
                  of the
                  Employee's duties as an employee of the Company, or which, even
                  if
                  noninterfering, may be contrary to the best interests of the Company;
                  provided, however, that the Employee shall be permitted to serve
                  on the
                  boards of directors of other companies that do not compete with
                  the
                  Company, and that Employee may make personal investments as long
                  as such
                  investments and activities do not materially conflict or interfere
                  with
                  the performance of Employee's duties hereunder; and provided, further,
                  that with the Board's prior consent the Employee shall be permitted
                  to
                  participate in certain business activities that are not related
                  to or in
                  competition with the business of the Company or its affiliates
                  at the time
                  such activity commences (the "Existing
                  Activities").

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (b)

              	
                From
                  the Effective Date until two (2) years after the termination or
                  cessation
                  of the Employee's employment with the Company for any reason (including
                  termination of employment by the Company without Cause) (such period,
                  the
                  "Restricted
                  Period"),
                  the Employee shall not, directly or indirectly, alone or as a member
                  of
                  any partnership or other business organization, or as a partner,
                  officer,
                  director, employee, stockholder, consultant or agent of any corporation,
                  partnership or business organization, engage in the business of
                  acquiring
                  equity interests of, or otherwise investing in, investment management
                  firms other than (i) continuation of the Existing Activities, and
                  (ii)
                  after termination of the Employee's employment with the Company
                  for any
                  reason, investing in or acting as a partner, officer, director,
                  employee,
                  stockholder, consultant or agent of any investment management firm
                  that is
                  not competitive with the business activities of the Company or
                  its
                  affiliate managers or entities and in which the Employee is a principal
                  executive officer involved in management of the business on a day-to-day
                  basis. During the Restricted Period, the Employee shall not, directly
                  or
                  indirectly, alone or as a member of any partnership or other business
                  organization, or as a partner, officer, director, employee, stockholder,
                  consultant or agent of any corporation, partnership or business
                  organization (A) request or cause any customer of the Company or
                  its
                  affiliates to cancel or terminate any business relationship with
                  the
                  Company or such affiliate, or (B) solicit or otherwise cause any
                  employee
                  of the Company or its affiliates to terminate such employee's relationship
                  with the Company or such affiliate.

              

      

       

       

      
        	
                5.

              	
                Confidential
                  Information.

              

      

       

      
        	 	
                (a)

              	
                The
                  Employee will not at any time, whether during or after the termination
                  or
                  cessation of the Employee's
                  employment, reveal to any person, association or company any of
                  the trade
                  secrets or confidential information concerning the organization,
                  business
                  or finances of the Company so far as they have come or may come
                  to the
                  Employee's knowledge, except as may be required in the ordinary
                  course of
                  performing the Employee's duties as an employee of the Company
                  or except
                  as may be in the public domain through no fault of the Employee,
                  and the
                  Employee shall keep secret all matters entrusted to the Employee
                  and shall
                  not use or attempt to use any such information in any manner which
                  may
                  injure or cause loss or may be calculated to injure or cause loss
                  whether
                  directly or indirectly to the
                  Company.

              

      

       

      
        	 	
                (b)

              	
                The
                  Employee agrees that during the Employee's employment the Employee
                  shall
                  not make, use or permit to be used any notes, memoranda, drawings,
                  specifications, programs, data or other materials of any nature
                  relating
                  to any matter within the scope of the business of the Company or
                  concerning any of its dealings or affairs otherwise than for the
                  benefit
                  of the Company. The Employee shall not, after the termination or
                  cessation
                  of the Employee's employment, use or permit to be used any such
                  notes,
                  memoranda, drawings, specifications, programs, data or other materials,
                  it
                  being agreed that any of the foregoing shall be and remain the
                  sole and
                  exclusive property of the Company and that immediately upon the
                  termination or cessation of the Employee's employment the Employee
                  shall
                  deliver all of the foregoing, and all copies thereof, to the Company,
                  at
                  its main office.

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                Binding
                  Effect.

              

      

       

      This
        Agreement shall inure to the benefit of and shall be binding upon the parties
        hereto and the Company's successors or assigns (whether resulting from any
        reorganization, consolidation or merger of the Company or any business to
        which
        all or substantially all of the assets of the Company are sold) and the
        Employee's heirs, executors and legal representatives.

       

       

      
        	
                7.

              	
                Entire
                  Agreement.

              

      

       

      This
        Agreement contains the entire agreement and understanding of the parties
        with
        respect to the subject matter hereof, supersedes all prior agreements and
        understandings with respect thereto, including the Prior Agreement, which
        shall
        be deemed terminated in its entirety upon the Effective Date, and cannot
        be
        modified, amended, waived or terminated, in whole or in part, except in writing
        signed by the party to be charged.

       

       

      
        	
                8.

              	
                Governing
                  Law; Jurisdiction.

              

      

       

      The
        validity, interpretation, construction and performance of this Agreement
        shall
        be governed by the laws of the State of New York applicable to contracts
        executed and to be performed entirely within said State. The provisions of
        this
        Agreement are intended to satisfy the requirements of Section 409A of the
        Code
        and shall be administered and interpreted in a manner consistent with such
        requirements.

       

       

      
        	
                9.

              	
                Arbitration.

              

      

       

      Subject
        to Section 10:

       

      
        	 	
                (a)

              	
                All
                  disputes between the Employee and the Company of any kind whatsoever,
                  including, without limitation, all disputes relating in any manner
                  to the
                  employment or termination of
                  the Employee and all disputes arising under this Agreement shall
                  be
                  resolved by arbitration ("Arbitrable
                  Claims").
                  Arbitration shall be final and binding upon the parties and shall
                  be the
                  exclusive remedy for all Arbitrable Claims. The parties hereby
                  waive any
                  rights they may have to trial by jury in regard to Arbitrable
                  Claims.

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (b)

              	
                Arbitration
                  of Arbitrable Claims shall be in accordance with the Employment
                  Dispute
                  Resolution Rules of the American Arbitration Association ("AAA
                  Employment Rules"),
                  except as provided otherwise in this Agreement. There shall be
                  one
                  arbitrator selected in accordance with the AAA Employment Rules.
                  In any
                  arbitration, the burden of proof shall be allocated as provided
                  by
                  applicable law. Either party may bring an action in court to compel
                  arbitration under this Agreement and to enforce an arbitration
                  award.
                  Otherwise, neither party shall initiate or prosecute any lawsuit
                  or
                  administrative action in any way related to any Arbitrable Claim.
                  All
                  arbitration hearings under this Agreement shall be conducted in
                  New York,
                  New York. The Federal Arbitration Act shall govern the interpretation
                  and
                  enforcement of this Section 9. The fees of the arbitrator shall
                  be split
                  between both parties equally.

              

      

       

      
        	 	
                (c)

              	
                All
                  proceedings and all documents prepared in connection with any Arbitrable
                  Claim shall be confidential and, unless otherwise required by law,
                  the
                  subject manner thereof shall not be disclosed to any person other
                  than the
                  parties to the proceedings, their counsel, witnesses and experts,
                  the
                  arbitrator and, if involved, the court and court
                  staff.

              

      

       

      
        	 	
                (d)

              	
                The
                  rights and obligations of Employee and the Company as set forth
                  in this
                  Section 9 with respect to arbitration shall survive the termination
                  of the
                  Employee's employment and the expiration of this
                  Agreement.

              

      

       

      The
        foregoing consent to arbitration shall not be deemed to confer rights on
        any
        person other than the respective parties to this Agreement.

       

       

      
        	
                10.

              	
                Right
                  to Injunction.

              

      

       

      The
        Employee acknowledges and agrees that irreparable and immediate damage will
        result to the Company if the Employee breaches the Employee's obligations
        under
        Section 4 or Section 5 hereof. In the event of a breach by the Employee of
        Section 4 or Section 5 hereof, the Company shall be entitled in any court
        of
        competent jurisdiction to such equitable and injunctive relief as may be
        available to restrain the Employee from the violation of such provisions.
        The
        remedies provided in this Agreement shall be deemed cumulative and the exercise
        of one shall not preclude the exercise of any other remedy at law or in equity
        for the same event or any other event.

       

       

      
        	
                11.

              	
                Indemnification.

              

      

       

      The
        Company shall indemnify the Employee to the fullest extent permitted by law
        (including, without limitation, advancement of legal fees on a current basis)
        for all matters related to or arising from the Employee's service as an officer,
        director and/or fiduciary of any benefit plan of the Company. The Company
        shall
        cover the Employee during and after the Employee's employment under the
        Company's director and officer liability insurance to the greatest extent
        afforded any senior officer and director of the Company.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                12.

              	
                Miscellaneous.

              

      

       

      
        	 	
                (a)

              	
                Amendments.
                  No
                  amendment, modification or waiver of any of the terms of this Agreement
                  shall be valid unless made in writing and signed by the Employee
                  and the
                  Company.

              

      

       

      
        	 	
                (b)

              	
                Survival.
                  All
                  provisions of this Agreement shall survive the termination or cessation
                  of
                  the Employee's employment with the
                  Company.

              

      

       

      
        	 	
                (c)

              	
                Successor
                  in Interest.
                  This Agreement and the rights and obligation hereunder shall be
                  binding
                  upon and inure to the benefit of the parties hereto and their respective
                  legal representatives, and shall also bind and inure to the benefit
                  of any
                  successor of the Company by merger or consolidation or any purchaser
                  or
                  assignee of all or substantially all of its assets. Neither this
                  Agreement
                  nor any of the rights or benefits hereunder may be assigned by
                  either
                  party hereto, except to any such aforementioned successor, purchaser,
                  or
                  assignee of the Company. The Employee may not assign any of his
                  obligation
                  or duties under this Agreement.

              

      

       

      
        	 	
                (d)

              	
                Waiver.
                  The
                  waiver by the Company of a breach of this Agreement by the Employee
                  shall
                  not operate or be construed as a waiver of any subsequent breach
                  by the
                  Employee.

              

      

       

      
        	 	
                (e)

              	
                Notices.
                  All
                  notices to be given hereunder shall be in writing and shall be
                  (i)
                  personally delivered, (ii) sent by certified mail, return receipt
                  requested, (iii) sent by facsimile or (iv) transmitted by e-mail.
                  Notices
                  to be given to the Employee shall be sent to the address indicated
                  below
                  the Employee's signature below. Notices to be given to the Company
                  shall
                  be sent to Tailwind Financial Inc., 800 Third Avenue, New York,
                  New York
                  10022, Facsimile 212-207-8785, to the attention of Arnold L. Mintz,
                  President and Chief Operating Officer. Notices of any changes in
                  the above
                  addresses shall be given to the other party in
                  writing.

              

      

       

      
        	 	
                (f)

              	
                Severability.
                  If
                  any provision of this Agreement shall contravene any law of any
                  particular
                  state where the Employee shall perform services for the Company,
                  then this
                  Agreement shall be first construed to be limited in scope and duration
                  so
                  as to be enforceable in that state, and if still unenforceable,
                  shall then
                  be construed as if such provision is not contained
                  herein.

              

      

       

      
        	 	
                (g)

              	
                Headings.
                  Titles or captions of Sections contained in this Agreement are
                  inserted
                  only as a matter of convenience and for reference, and in no way
                  define,
                  limit, extend or describe the scope of this Agreement or the intent
                  of any
                  provisions hereof.

              

      

       

      
        	 	
                (h)

              	
                Counterparts.
                  This
                  Agreement may be executed in two or more counterparts, and by each
                  party
                  on separate counterparts, each of which shall be deemed an original,
                  but
                  all of which together shall constitute one and the same
                  instrument.

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed as
        of the
        date first
        above written.

       

      
        	 	 	 
	 	
                Tailwind
                  Financial Inc. 

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:
	 	Title 

      

      
        	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Bruce
                  H. Lipnick

              
	 	
                Address:

                1148
                  Fifth Avenue, Apartment 5C

                New
                  York, NY 10128

              

      

      

      

      The
        undersigned hereby consents to the termination of the Prior Agreement in
        its
        entirely, subject to and effective as of the Effective Date.

      

      Asset
        Alliance Corporation

      

      By:
        _______________________________

      Name:

      Title:

       

       

      
 

    

     

     

     

     

     

    
      
        
        

      

      
        12

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