Document:

PHOTOVOLTAIC
SYSTEM CONTRACT

 

Date: 11/03/2011

 

This Contract Agreement Is Between:

 

Contractor

SECTION 1.A

	Contractor's Name:	Sunvalley Solar Inc.
	Contractor's License Number:	# 904190 (C-46 Solar)
	Contractor's Address:	398 Lemon Creek Dr. #A, Walnut, CA 91789
	Contractor's Telephone/Fax:	Office: (909) 598-0618 / Fax: (909)598-6633

 

AND

 

Customer

SECTION 1.B

	Customer's Name:	Harmoni Group, Inc.
	Customer's Address:	881 Azusa Ave., City of Industry, CA 91748
	Customer's Telephone/Fax:	626.330.1550
	Project Address:	881 Azusa Ave., City of Industry, CA 91748
	Account Number(s):	2341023117
	Accounting Method:	Cash Basis

 

Sunvalley Solar Inc. is specified as
the Contractor who will provide all labor, materials and equipment in order to complete the following work at the customer's address
specified in section 1.B. Contractor and Customer are sometimes referred to herein as the “Party” or, collectively,
as the “Parties”.

 

SECTION 2.A

The following is a list of services and equipment that will be provided
by Sunvalley Solar Inc. in order to install the 220.925kW-DC Photovoltaic System, which is estimated to produce 298,761kWh
annually.

 

	Installation of (855) PV solar electric modules.
	Manufacturer:	Tianwei New Energy 235W Polycrystalline Module
	Model number:	TW235 (28) P

 

	Installation of (1) inverter
	Manufacturer:	Advanced Energy Industries
	Model number:	PVP 260kW-480

 

Installation of solar module mounting hardware, AC and DC power
disconnects and all required electrical materials such as conduit, wire, and circuit breakers.

    	1

    	 

    
SECTION 2.B

All materials are guaranteed to be as specified
in section 2.A. The work referenced in section 2.A will be performed in accordance with the drawings submitted for city permits.
All work will consist of quality workmanship. Any electrical and structural upgrade is not included in the contract price.
The sum of total project costs is $820,999.64.

 

PAYMENT (Photovoltaic System)

 

SECTION 3.A

The total eligible project costs of $820,999.64
will be paid by the Customer (owner) as followed:

(All payments shall be made by cash or check according to the following
schedules):

 

	10% Down Payment	$82,099.96

Down Payment schedule: $82,999,96 is due
when the contract is signed.

 

	Lump Sum Payment	$246,299.89

(It is due within 5 business days after the
customer receives the cash grant from the U.S. Treasury Department. The payment shall be the exact amount of the cash grant.)

 

	Monthly Payment A (Utility Rebate)	$74,690.00

(After the customer receives the monthly incentive
from Southern California Edison Utility Company, the customer will pay such exact incentive amount to Sunvalley within 5 business
days. The incentive paid by the utility company will be based on the actual production of the installed system; the customer will
not be responsible for the differences between the total actual incentive payments and the total estimated payments as stated above.)

 

	Monthly Payment B	$417,909.79

(Payments to begin within 5 days after system
is approved/commissioned by the local utility company)

 

The customer's total eligible
payment is 419,909.79 and shall be applied in 60  installments as monthly periodic payments. Each monthly payment
amount is $6,965.17

 

The first installment is due within
5 days following the photovoltaic system inspection and approval by the City Administrator and Utility Company.

 

Following the first installment, Sunvalley
is to send statements for monthly payment (less the first payment) to the customer. Our payment structure is based upon the premise
that all statements are due and payable upon receipt, but in any event, no later than ten (10) days from the date of the statement.
Sunvalley reserves the right to charge a monthly late payment fee, at the rate of ten percent (10%) per annum, from the due date
for payment until receipt by the Sunvalley of the full amount.

 

Sunvalley like other businesses has
substantial cash demands that require Sunvalley to borrow money if its accounts are not paid promptly. Thus, a finance charge at
the rate of ten percent (10%) per annum of the unpaid balance, computed from date of the last invoice until paid will be added
to any delinquent accounts. In the event that an account becomes delinquent, Sunvalley employs the same prudent collection procedures
used by other businesses, including but not limited to third-party debt collection and legal action.

    	2

    	 

    

 

TRANSFERRABLE PAYMENTS

 

SECTION 3.B

 

Sunvalley Solar Inc is hereby giving
permission to the customer to transfer his payments to another party under these circumstances. In the case where the
customer chooses to sell the property in which the solar photovoltaic system is installed on prior to the end of the 60
payments as agreed upon. The customer may choose to either complete the remaining payments prior to escrow of the property or
come to a mutual agreement with the new customer by signing a transferrable payment contract prior to escrow. The
transferrable payment contract will relieve the customer of being responsible for the remaining balance for the solar
photovoltaic system. The remaining balance of the 60  payments will be the responsibility of the new owner as agreed upon by
both parties.

 

SECTION 3.C

 

The owner of the Renewable Energy Certificates(RECs),
also known as Green Tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates(TRCs),
for this solar system as specified in section 2.A is Sunvalley Solar Inc.

    	3

    	 

    

 

WARRANTY/ SERVICES:

 

SECTION 4.A

 

The Contractor Sunvalley Solar Inc.
will provide the following warranties and services:

 

·        
10-year system workmanship warranty provided by Sunvalley Solar Inc., including all parts
and labor that are required in the specified solar power system in section 2.A

·        
5 years product warranty on the solar panels

·        
10 years 90% of the minimal Nominal Power Output warranty on solar panels

·        
25 years 80% of the minimal Nominal Power Output warranty on solar panels

·        
10 years manufacturer's warranty on the inverter(s) that are specified in section 2.A

·        
Lifetime System Performance Monitoring. However, the customer is required to have internet
service for monitoring purposes.

·        
5 years; semi-annual Solar Module cleaning

·        
5 years; semi-annual On-site system check and corrective reports if applicable

·        
5 years system production guarantee.

 

See Attached Sections:

 

Section 5.A - Acceptance of Contract

Section 6.A - Notice to Customer Regarding Complaints &
Disputes

Section 7.A- System Production Guarantee

Section 8.A & 8.B – Execution of the project &
Project Schedule

 

This contract is governed by and shall be interpreted in accordance
with the laws of the State of California.

 

RESPECTFULLY SUBMITTED,

 

	Contractor's Name:	Sunvalley Solar Inc.	Customer’s Name:	Harmoni Group, Inc.
	By:	Henry Yu	By:	
			 	
	/s/ Henry Yu	/s/ Harmoni Group, Inc.
	(Contractor’s Signature)	(Customer’s Signature)
	11/03/2011	11/03/2011
	Date	Date

    	4

    	 

    

 

ACCEPTANCE

 

SECTION 5.A

 

Sunvalley Solar Inc. is hereby authorized to
furnish all material, equipment and labor required to complete the work described in the above contact, for which the undersigned
agrees to pay the amount stated in the above contract and according to the terms thereof. Any change involving extra cost of labor
or materials will be executed only after submission and acceptance of a written change order. If Sunvalley Solar Inc. cannot get
the approval from city, homeowner's association or any other related organizations which are not within the control of either Sunvalley
Solar Inc. or the Customer, full deposit less design drawing and application fee will be refunded. In addition, Sunvalley Solar
Inc. has the right to modify, renegotiate, and or cancel the contract if the utility rebate is not successfully reserved.

 

The undersigned customer hereby certifies to
the previous statements:

 

	/s/ Harmoni Group, Inc.		11/03/2011
	(Signature)		(Date)

    	5

    	 

    

 

NOTICE TO CUSTOMER REGARDING
COMPLAINTS & DISPUTES

 

SECTION 6.A

 

Contractors are required by law to be licensed
and regulated by the Contractors State License Board (CSLB), which has jurisdiction to investigate complaints against contractors
if a complaint regarding a parent act or omission is filed within four years of the date of the alleged violation. A complaint
regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation.

 

The CSLB also allows consumers to check the
status of a contractor's license and order free publications. For any questions concerning the contractor (Sunvalley Solar Inc.),
or to file a complaint, please write to: Registrar, Contractors State License Board, Post Office Box 26000, Sacramento, California
95826. The Contractors State License Board may also be reached by phone at 1-800-321-CSLB (2752) or online at http://www.cslb.ca.gov/.

 

In the event that disputes arise between the
Contractor and the Customer which cannot be resolved through conference and negotiation, such disputes shall be controlled by California
law and both Parties shall have the right to have the dispute adjudicated by the California courts, provided however, that it shall
be a condition precedent to the filing of any lawsuit that the Parties shall first submit the dispute to mediation with a qualified
mediator mutually agreed to by the Parties. The Parties shall be bound to participate in mediation in good faith and confidence.

 

Notice to Customer Regarding Liens

 

Under the California Mechanic' Lien Law, any
contractor, subcontractor, laborer supplier, or other person or entity who helps to improve your property, but is not paid for
his or her work or supplies, has a right to place a lien on your home, land , or property where the work was performed and take
court action in order to obtain payment.

 

This means that after a court hearing, your
home, land, and property could be sold by a court officer and the proceeds of the sale used to satisfy what you owe. This can happen
even if you have paid your contractor in full if the contractor's subcontractors, laborers, or suppliers remain unpaid.

 

To preserve their rights to file a claim or
lien against your property, certain claimants such as subcontractors or material suppliers are each required to provide you with
a document called a "Preliminary Notice". Contractor and laborers who contract with customers directly do not have to
provide such notice since you are aware of their existence as a customer. A preliminary notice is not a lien against your property.
Its purpose is to notify you of persons or entities that may have a right to file a lien against your property if they are not
paid. In order to perfect their lien rights, a contractor, subcontractor, supplier, of laborer must file a mechanics' lien with
the county recorder which then becomes a recorded lien against your property. Generally, the maximum time allowed for filing a
mechanics' lien against your property is 90 days after substantial completion of your project.

 

No liens should be applied if the agreed payments
are made on time.

    	6

    	 

    

 

System Production Guarantee

 

SECTION 7.A

 

Limited Guarantee

 

Sunvalley Solar Inc. hereby guarantees the
production of the Photovoltaic System installed by Sunvalley Solar Inc. under the following conditions:

 

·        
The Photovoltaic System shall produce no less than 92%, under normal working conditions*,
of the estimated annual energy production based on 5 years actual production reports.

·        
If however the Photovoltaic System fails to produce at least 92% of the estimated annual energy
production, based on 5 years under normal working conditions, Sunvalley Solar Inc. shall reimburse the difference in kWh to the
owner multiplied by the average utility rate for the annual interval when the Photovoltaic System underperformed.

 

The Photovoltaic Systems Production will be
monitored and documented by a 3rd Party performance based metering system. The warranted production shall be reviewed and evaluated
in one year (365 day) intervals from the date the system is commissioned. All parties shall have access to the present and historical
system data via internet and software programs granted through the 3rd party.

 

*Normal working conditions shall be defined
as an average of 5.5 hours of sunlight per day, based on a period of 365 days, and with continuous flow of electricity by the utility
provider. If in any case a power outage or act of god occurs during the period of this guarantee, the performance of the system
shall be pro-rated to days of normal working condition.

 

Guarantee exclusions and limitations

 

1.      
In any event, all guarantee claims must be filed within the applicable guarantee period.

2.      
The Limited Performance Guarantee provided by Sunvalley Solar Inc. shall not apply to any
system that has been subject to any of the following:

A.     
Misuse, abuse, neglect, or accident.

B.     
Repair or modifications by someone other than a service technician of Sunvalley Solar Inc.,
or any third party with Sunvalley Solar Inc. written approval.

C.     
Power failure caused by and not limited to blackouts or surges, lightning, flood, fire, volcanic
ash,earthquakes, or any other acts of god that are beyond the control of Sunvalley Solar Inc. (force Majeure).

 

THIS GUARANTEE IS THE SOLE AND EXCLUSIVE GUARANTEE
FOR PHOTOVOLTAIC SYSTEMS INSTALLED BY SUNVALLEY SOLAR INC. AND IS IN LIEU OF ALL OTHER EXPRESSED AND IMPLIED WARRANTIES. SUNVALLEY
SOLAR INC. SPECIFICALLY DISCLAIMS ALL OTHER EXPRESSED AND IMPLIED WARRANTIES OF MERCHANT ABILTIY AND FITNESS FOR A PARTICULAR PURPOSE.
No person or entity is authorized to bind Sunvalley Solar Inc. to any other guarantee, obligation or liability for any Sunvalley
Solar Inc. product, installation ,operation or use of the product for which this guarantee is issued shall constitute acceptance
of the terms hereof.

 

	/s/ Henry Yu	/s/ Harmoni Group, Inc.
	(Contractor’s Signature)	(Customer’s Signature)
	11/03/2011	11/03/2011
	Date	(Date)

    	7

    	 

    

 

PROJECT SCHEDULE

 

SECTION 8.A

 

Execution of the project

 

Notes:

 

1.      
After the contract is signed by both parties, the contractor will need approximately 20 working
days to complete the system installation design, however, the number of working days may vary on the system size, capacity, and
complexity such as any additional structural or electrical service upgrades, if necessary.

 

2.      
After the system design is completed, the contractor will apply for the construction permit
for the solar system from the city where the system will be located. The processing time for the permit application varies from
city to city.

**Permit approvals generally require
approximately 60 working days.

 

3.      
After approval of the permit for the system pursuant to this agreement, all materials that
are specified in this contract will arrive at customer's property within 3 days before the start date designated by the customer.

 

4.      
Contractor agrees to start and diligently pursue work through to completion to meet the project
timeline stated in section 8.B, but shall not be responsible for delays for any of the following reasons: failure of the issuance
of all necessary building permits within a reasonable length of time, funding of loans, disbursement of funds into funding control
or escrow, acts of neglect or omission of customer or customer's employees or customer's agent, acts of God, stormy or inclement
weather, extra work ordered by customer, riots or civil commotion, inability to secure material through regular recognized channels,
imposition of Government priority or allocation of materials, failure of customer to make payments when due, or delays caused by
inspection or changes ordered by the inspectors of authorized governmental bodies, or for acts of independent contractors, holidays,
or other causes beyond Contractor's reasonable control.

 

5.      
Our regular working hours are Monday to Friday from 8:30AM to 5:30PM (No work will be scheduled
on Saturday and Sunday, except in the case of prior written agreements between the contractor and the customer).

 

6.      
RIGHT TO STOP WORK. Contractor shall have the right to stop work if any payment shall
not be made, when due, to Contractor under this Agreement; Contractor may keep the job on hold until all payments due are received.
Failure to make payment, within five (5) days from the due date, is a material breach of this Agreement and shall entitle contractor
to cease any further work.

    	8

    	 

    

 

SECTION 8.B

 

Project Schedule

 

200.925kW Photovoltaic System

 

	Week	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
	Detailed Design and Specifications																									
	Permitting & Applications																									
	Equipment Procurement																									
	Photovoltaic System Construction																									
	Inspections, Commissioning and start																									

 

 

 

 

Project Schedule Starts: 1st Quarter of 2012 after
rebate is confirmed

 

Project Schedule Ends: 1 day after project is
inspected/approved by Southern California Edison Utility Company

 

Total Project Length: 25 weeks

 

Note:

 

A.The project schedule is for general solar installation in
similar project size.

 

B.The actual project length may vary depend on the city permitting
process time, weather condition, construction schedule and any other unforeseen condition at job site.

 

	/s/ Henry Yu	/s/ Harmoni Group, Inc.
	(Contractor’s Signature)	(Customer’s Signature)
	11/03/2011	11/03/2011
	(Date)	(Date)

 

    	9EX-4.1

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY SHARE MAY BE SOLD
OR TRANSFERRED ABSENT SUCH REGISTRATION OR AN EXEMPTION THEREFROM.

Effective Date: November 4, 2011

WARRANT TO PURCHASE COMMON STOCK

LADENBURG THALMANN FINANCIAL SERVICES INC.

     THIS WARRANT CERTIFIES THAT        or its permitted assigns (“Holder”), for good and
valuable consideration, the receipt of which is hereby acknowledged, has been granted the right to
purchase from Ladenburg Thalmann Financial Services Inc., a Florida corporation (the “Company”), at
any time and from time to time, for a period commencing on the Effective Date (as defined below)
and ending on the Expiration Date (as defined below),        (the “Warrant Number”) validly
issued, fully-paid and non-assessable shares (the “Shares”) of the Company’s common stock, par
value $.0001 per share, subject to adjustment as provided herein, at the exercise price of $1.68
per share (the “Exercise Price”).

1. Term of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall
be exercisable, in whole or in part, during the term (“Term”) commencing at 9:00 a.m., New York,
New York time, on the date hereof (the “Effective Date”) and ending at 5:00 p.m., New York, New
York time on November 3, 2016 (the “Expiration Date”). After the Expiration Date, the Warrant
shall be void.

2. Exercise of Warrant.

2.1. Manner of Exercise. The purchase rights represented by this Warrant are
exercisable by the Holder in whole or in part, at any time, or from time to time, during the Term,
by the surrender of this Warrant and the Notice of Exercise (in the form annexed hereto as Exhibit
A), duly completed and executed on behalf of the Holder, at the office of the Company (or such
other office or agency of the Company as it may designate by notice in writing to the Holder), upon
payment of the purchase price of the Shares to be purchased (i) in cash or wire transfer to an
account designated by the Company, (ii) by tender for cancellation of a portion of that certain
promissory note issued by the Company to Holder dated of even date herewith (valued at the
principal amount of such debt on the date of surrender of this Warrant and delivery of the Notice
of Exercise), (iii) by a Net Issue Election as provided for below or (iv) a combination of the
foregoing.

2.2. Time of Exercise. This Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for exercise as provided
above (the “Exercise Date”), and the Person entitled to receive the Shares issuable upon such
exercise shall be treated for all purposes as the holder of record of such Shares as of the close
of business on such date. As used in this Warrant, “Person” shall mean an individual, corporation,
limited liability company, partnership, trust, incorporated or unincorporated association, joint
venture, joint stock company, government (or any agency or political subdivision thereof) or other
entity of any kind.

2.3. Delivery of Certificate and Revised Warrant. As promptly as practicable on or
after the Exercise Date and in any event within fifteen (15) days thereafter, the Company at its
expense, will issue and deliver to the Person(s) entitled to receive the same a certificate or
certificates for the number of Shares issuable upon such exercise or other appropriate written
evidence of the issuance of the Shares. In the event that this Warrant is exercised in part, the
Company at its expense shall execute and deliver a new Warrant of like tenor exercisable for the
number of Shares for which this Warrant may then be exercised at the same time.

2.4. No Fractional Shares. No fractional Shares or scrip representing fractional
Shares shall be issued upon the exercise of this Warrant. In lieu of any fractional Share to which
the Holder would otherwise be entitled, the Company shall make a cash payment equal to the Exercise
Price multiplied by such fraction.

2.5. Net Issue Exercise. Notwithstanding any provisions herein to the contrary, if
the fair market value of one Share is greater than the Exercise Price, in lieu of exercising this
Warrant for cash, the Holder may elect to receive Shares equal to the value (as determined below)
of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Notice of Exercise electing the
net issue exercise. Upon receipt of this Warrant and the Notice of Exercise, the Company shall
issue to the Holder a number of Shares as determined below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	X

	 	 
	 	=
	 	 
	 	Y (A-B)
	 	 
	 	 
	
 
	 	 	 	 	 	 	 	 
	 	

	 	

	 

	 	 
	 	 
	 	 
	 	A
	 	 
	 	 

Where:

X = the number of Shares to be issued to the Holder

Y = the number of Shares purchasable under the Warrant or, if only a portion of the Warrant is
being exercised, the portion of the Warrant being exercised (at the date of such calculation)

A = the fair market value of one Share (at the date of such calculation)

B = Exercise Price

For purposes of the above calculation, fair market value of one Share shall be determined in
good faith by the Board of Directors of the Company; provided, however, that where there exists a
public market for the Shares at the time of such exercise, the fair market value per Share at any
date shall be the average of the last reported sale prices of the Common Stock for the ten trading
days immediately preceding the surrender of the Warrant and delivery of the Notice of Exercise, as
quoted on the NYSE Amex, the Nasdaq Stock Market, the OTC Bulletin Board or on any exchange or
market on which the Common Stock is listed, whichever is applicable.

3. Adjustments to the Shares.

3.1. Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion
thereof, is outstanding and unexpired there shall be (i) a reorganization (other than a
combination, reclassification, exchange or subdivision of securities otherwise provided for
herein), (ii) a merger or consolidation of the Company with or into another entity in which the
Company is not the surviving entity, or a reverse triangular merger in which the Company is the
surviving entity but the Company’s shares of capital stock outstanding immediately prior to the
merger are converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, or (iii) a sale or transfer of the Company’s properties and assets
as, or substantially as, an entirety to any other person, this Warrant shall thereafter represent
the right to acquire the number of Shares or other securities or property which the Holder of this
Warrant would have owned immediately after the consummation of such reorganization, merger,
consolidation, sale or transfer, if the Holder of this Warrant had exercised this Warrant
immediately before the effective date of the reorganization, merger, consolidation, sale or
transfer.

3.2. Reclassification, etc. If the Company, at any time while this Warrant, or any
portion hereof, remains outstanding and unexpired by reclassification of securities or otherwise,
shall change any of the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as would have been
issuable as the result of such change with respect to the securities that were subject to the
purchase rights under this Warrant immediately prior to such reclassification or other change and
the Warrant Number shall be appropriately adjusted, all subject to further adjustment as provided
for herein.

3.3. Split, Subdivision or Combination of Shares. If the Company at any time while
this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or
combine the securities as to which purchase rights under this Warrant exist, into a different
number of securities of the same class, the Warrant Number shall be proportionately increased (and
the Exercise Price decreased correspondingly) in the case of a split or subdivision or
proportionately decreased (and the Exercise Price increased correspondingly) in the case of a
combination.

3.4. Adjustments for Dividends in Shares or Other Securities or Property. If while
this Warrant, or any portion hereof, remains outstanding and unexpired, the holders of the
securities as to which purchase rights under this Warrant exist at the time shall have received,
or, on or after the record date fixed for the determination of eligible shareholders, shall have
become entitled to receive, without payment therefor, other or additional securities or property
(other than cash) of the Company by way of dividend, then and in each case, this Warrant shall
represent the right to acquire, in addition to the number of Shares receivable upon exercise of
this Warrant, and without payment of any additional consideration therefor, the amount of such
other or additional securities or property (other than cash) of the Company that such Holder would
hold on the date of such exercise had it been the holder of record of the security receivable upon
exercise of this Warrant on the date hereof and had thereafter, during the period from the date
hereof to and including the date of such exercise, retained such Shares and/or all other additional
securities available to it as aforesaid during such period, giving effect to all adjustments called
for during such period by the provisions of this Warrant.

4. Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment
pursuant to Section 3, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each Holder a certificate setting
forth, in reasonable detail, the event requiring the adjustment or readjustment, the amount of such
adjustment or readjustment, the method by which such adjustment or readjustment was calculated, the
Exercise Price, and the number of Shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant. The Company shall upon the written request, at
any time, of any such Holder, furnish or cause to be furnished to such Holder a like certificate.

5. Share Legend. Each certificate for Shares issued upon exercise of this Warrant may bear
the following legend, unless at the time of exercise such Shares are registered under the
Securities Act:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (“SECURITIES ACT”). THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES
ACT UNLESS REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.

6. Shares to be Fully Paid. The Company will issue Shares pursuant to this Warrant as fully
paid, non-assessable and free from all liens and encumbrances.

7. Company to Reserve Shares. At all times before the Expiration Date, the Company will
reserve and keep available, free from preemptive rights, out of its authorized but unissued Shares
or Shares held in the treasury of the Company, for the purpose of effecting the exercise of this
Warrant, the full number of Shares then deliverable upon the exercise of this Warrant. The issuance
of this Warrant shall constitute full authority to those officers of the Company who are charged
with the duty of executing stock certificates to execute and issue the necessary certificates for
Shares upon exercise of this Warrant.

8. Exchange of Warrant. The Holder may exchange this Warrant, at the Company’s expense, at
any time prior to the Expiration Date, by surrendering this Warrant to the Company, for other
warrant certificates, upon the same terms and conditions of this Warrant, which in the aggregate
entitle the Holders to purchase the balance of Shares then covered by this Warrant.

9. No Rights as Stockholder. Except as otherwise provided herein, this Warrant will not
entitle the Holder to any of the rights of a stockholder of the Company, including, without
limitation, the right to vote or to receive distributions.

10. Amendment. This Warrant may not be amended except with the prior written consent of the
Holder and the Company. Any instrument given by or on behalf of the Holder in connection with any
consent to any modification or amendment will be conclusive and binding on all subsequent holders
of this Warrant.

11. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant or any stock certificate relating to the Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company issue or cause to be issued a new
Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such
Warrant or stock certificate.

12. Transfer. The securities evidenced hereby have not been registered under the Securities
Act or any state securities laws; such securities may not be transferred, sold, pledged, or
otherwise disposed of unless such securities are registered under the Securities Act and such state
laws or such transactions are exempt from the registration requirements thereof. Upon surrender of
this Warrant as a result of a transfer hereof, the Company, at the expense of the transferee or
transferor hereof, as the transferee and transferor may decide between themselves, will issue and
deliver to, or to the order of, the transferee a new Warrant in the name of such transferee, or as
such transferee (on payment by such transferee of any applicable transfer taxes) may direct,
calling in the aggregate on the face thereof for the number of Shares called for on the face of
this Warrant. As a condition to effecting any transfer, the Holder shall notify the Company of the
proposed transfer by delivering a Notice of and Form of Assignment (in the form annexed hereto as
Exhibit B), duly completed and executed on behalf of the Holder at the office of the Company (or
such other office or agency of the Company as it may designate by notice in writing to the Holder).

13. Successors and Assigns. This Warrant shall not be assignable by the Company without the
prior written consent of the Holder and any such assignment in violation hereof shall be null and
void. Subject to the foregoing, this Warrant shall bind and inure to the benefit of the Company and
its permitted successors and assigns, the Holder and its successors and assigns.

14. Applicable Law. This Warrant shall be construed in accordance with, and governed by, the
laws of the State of Florida without giving effect to the conflict of laws provisions thereof.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the
Effective Date set forth above.

	 	 	 	 	 	 	 
	 
	 	 

	 	 
	 	 
	 	 	LADENBURG THALMANN FINANCIAL SERVICES
INC.
 

	 	 	 	 	 
	 	 	 	 	 
	 	 	By:  	 	 
	 	 	 	 	-
	 
	 	 

	 	Name:  
	 	Richard J. Lampen 
	 
	 	 

	 	Title:  
	 	President and CEO

EXHIBIT A

NOTICE OF EXERCISE

Dated:                               

1. The undersigned hereby elects to purchase                                           shares of
the common stock of Ladenburg Thalmann Financial Services Inc. pursuant to the terms of the
attached Warrant, and tenders herewith payment of the purchase price of such securities in full.
Such purchase price is being paid [insert whether by cash and/or cancellation of indebtedness].

1. The undersigned hereby elects to convert the attached Warrant into shares of the common
stock of Ladenburg Thalmann Financial Services Inc. in the manner specified in Section 2.5 of the
Warrant. This conversion is exercised with respect to                           of the
securities covered by the Warrant.

[Strike paragraphs that do not apply.]

2. Please issue certificate(s) representing said shares in the name of the undersigned or in
such other name(s) as is specified below and deliver such certificates to the address(es) specified
below:

[insert name(s) and address(es)]

3. Please issue a new Warrant for the unexercised portion of the attached Warrant in the name
of the undersigned or in such other name as is specified below:

[strike if not applicable]

	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 	[Insert name of Holder]
 
	 	 	By:  	 	 
	 	 	 	 	-
	 

	 	 
	 	Name:  
	 	 
	 

	 	 
	 	Title:  
	 	 

1

EXHIBIT B

NOTICE OF AND

FORM OF ASSIGNMENT

(TO BE SIGNED ONLY ON TRANSFER OF WARRANT)

For value received, the undersigned hereby sells, assigns, and transfer unto
                              , federal taxpayer identification number
                               , whose address is                                , the
right represented by the within Warrant to purchase                       shares of common stock of
Ladenburg Thalmann Financial Services Inc. to which the within Warrant relates, and appoints the
Secretary of                      Attorney to transfer such right on the books of
                               with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 

	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	Dated: 	 	 	 	 
	 	 
	 	 	 	 	-
	 	 
	 	 	 	 	(Signature must conform to name of holder as 
	 	 
	 	 	 	 	specified on the face of the Warrant) 
	 	 
	 	 	 
	 	 	 	 	 
	 	 
	Signed in the presence of: 	 	 	 	 
	 	 
	 	 	 	 	-
	 	 
	 	 	 	 	Address 
	 	 
	 	 	 	 	 
	 	 
	-	 	 	 	 
	 	 
	 	 	 

2

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