Document:

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                                                                   Exhihit 10.46

                             STOCK OPTION AGREEMENT

         AGREEMENT, made as of December 17, 2003, by and between Ladenburg
Thalmann Financial Services Inc., a Florida corporation (the "Company"), and
Salvatore Giardina (the "Employee").

         WHEREAS, by written consent dated as of December 17, 2003, pursuant to
the terms and conditions of the Company's 1999 Performance Equity Plan (the
"Plan"), the Compensation Committee ("Committee") of the Company's Board of
Directors authorized the grant to the Employee of an option to purchase an
aggregate of 30,000 shares of the authorized but unissued shares of the
Company's common stock, par value $0.0001 per share ("Common Stock"),
conditioned upon the Employee's acceptance thereof upon the terms and conditions
set forth in this Agreement and subject to the terms of the Plan (capitalized
terms used herein and not otherwise defined shall have the meanings set forth in
the Plan); and

         WHEREAS, the Employee desires to acquire the option on the terms and
conditions set forth in this Agreement.

         IT IS AGREED:

         1. GRANT OF STOCK OPTION. The Company hereby grants to the Employee the
right and option ("Option") to purchase all or any part of an aggregate of
30,000 shares of Common Stock ("Option Shares") on the terms and conditions set
forth herein and subject to the provisions of the Plan.

         2. INCENTIVE STOCK OPTION. The Option represented hereby is intended to
be an Option which qualifies as an "Incentive Stock Option" under Section 422 of
the Internal Revenue Code of 1986, as amended ("Code").

         3. EXERCISE PRICE. The exercise price ("Exercise Price") of the Option
shall be $0.45 per share, subject to adjustment as provided in the Plan.

         4. EXERCISABILITY. This Option shall become exercisable, subject to the
terms and conditions of the Plan and this Agreement, as follows: (i) the right
to purchase 10,000 of the Option Shares shall be exercisable on and after
December 17, 2004, (ii) the right to purchase an additional 10,000 of the Option

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Shares shall be exercisable on and after December 17, 2005, and (iii) the right
to purchase the remaining 10,000 of the Option Shares shall be exercisable on
and after December 17, 2006. After a portion of the Option becomes exercisable,
it shall remain exercisable except as otherwise provided herein, until the close
of business on December 16, 2013 (the "Exercise Period").

         5. EFFECT OF TERMINATION OF EMPLOYMENT.

                  5.1 TERMINATION DUE TO DEATH. If Employee's employment by the
Company terminates by reason of death, the portion of the Option, if any, that
was exercisable as of the date of death may thereafter be exercised by the legal
representative of the estate or by the legatee of the Employee under the will of
the Employee, for a period of one year from the date of such death or until the
expiration of the Exercise Period, whichever period is shorter. The portion of
the Option, if any, that was not exercisable as of the date of death shall
immediately expire.

                  5.2 TERMINATION DUE TO DISABILITY. If Employee's employment by
the Company terminates by reason of disability (as such term is defined in the
Plan), the portion of the Option, if any, that was exercisable as of the date of
disability may thereafter be exercised by the Employee or legal representative
for a period of one year from the date of such termination or until the
expiration of the Exercise Period, whichever period is shorter. The portion of
the Option, if any, that was not exercisable as of the date of termination shall
immediately expire.

                  5.3 TERMINATION BY THE COMPANY WITHOUT CAUSE AND/OR DUE TO
RETIREMENT. If Employee's employment is terminated by the Company without cause
or due to the normal retirement of Employee after his 65th birthday, then the
portion of the Option which has vested by the date of termination of employment
may be exercised for a period of 30 days from termination of employment or until
the expiration of the Exercise Period, whichever is shorter. The portion of the
Option, if any, not yet exercisable on the date of termination of employment
shall immediately expire.

                  5.4 OTHER TERMINATION.

                           5.4.1 If Employee's employment is terminated for any
reason other than (i) death, (ii) disability, (iii) normal retirement, or (iv)
without cause by the Company, the Option, whether or not then exercisable, shall
expire on the date of termination of employment.

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                           5.4.2 In the event the Employee's employment is
terminated for cause, the Company may require the Employee to return to the
Company the economic benefit of any Option Shares purchased hereunder by the
Employee within the six month period prior to the date of termination. In such
event, the Employee hereby agrees to remit to the Company, in cash, an amount
equal to the difference between the Fair Market Value (on the date of
termination) of the Option Shares so purchased by Employee (or the sales price
of such Option Shares if the Option Shares were sold during such six month
period) and the Exercise Price.

                  5.5 COMPETING WITH THE COMPANY. In the event that, within
eighteen months after the date of termination of Employee's employment with the
Company, Employee accepts employment with, or becomes engaged as a consultant
by, any competitor of, or otherwise competes with, the Company, the Company, in
its sole discretion, may require such Employee to return to the Company the
economic value of any Option Shares purchased hereunder by the Employee within
the six-month period prior to the date of termination. In such event, Employee
agrees to remit the economic value to the Company in accordance with Section
5.4.2.

         6. WITHHOLDING TAX. Not later than the date as of which an amount first
must be included in the gross income of the Employee for Federal income tax
purposes with respect to the Option, the Employee shall pay to the Company (or
other entity identified by the Company), or make arrangements satisfactory to
the Company (or other entity identified by the Company) regarding the payment
of, any Federal, state, local or foreign taxes of any kind required by law to be
withheld with respect to such amount ("Withholding Tax"). With the prior
approval of the Company, in its sole discretion, withholding obligations may be
settled with Common Stock, including Common Stock underlying the subject option,
provided that any applicable requirements under Section 16 of the Exchange Act
are satisfied so as to avoid liability thereunder. The obligations of the
Company under the Plan and pursuant to this Agreement shall be conditioned upon
such payment or arrangements with the Company and the Company shall, to the
extent permitted by law, have the right to deduct any Withholding Taxes from any
payment of any kind otherwise due to the Employee from the Company.

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         7. METHOD OF EXERCISE.

                  7.1 NOTICE TO THE COMPANY. The Option may be exercised in
whole or in part by written notice in the form attached hereto as Exhibit A
directed to the Company at its principal place of business accompanied by full
payment as hereinafter provided of the exercise price for the number of Option
Shares specified in the notice and of the Withholding Taxes, if any.

                  7.2 DELIVERY OF OPTION SHARES. The Company shall deliver a
certificate for the Option Shares to the Employee as soon as practicable after
payment therefor.

                  7.3 PAYMENT OF PURCHASE PRICE.

                           7.3.1 CASH PAYMENT. The Employee shall make cash
payments by wire transfer, certified or bank check or personal check, in each
case payable to the order of the Company. The Company shall not be required to
deliver certificates for Option Shares until the Company has confirmed the
receipt of good and available funds in payment of the purchase price thereof.

                           7.3.2 PAYMENT THROUGH BANK OR BROKER. The Company, in
its sole discretion, may permit the Employee to make arrangements satisfactory
to the Company with a bank or a broker who is member of the National Association
of Securities Dealers, Inc. to either (a) sell on the exercise date a sufficient
number of the Option Shares being purchased so that the net proceeds of the sale
transaction will at least equal the Exercise Price multiplied by the number of
Option Shares being purchased pursuant to such exercise, plus the amount of the
Withholding Tax and pursuant to which the bank or broker undertakes irrevocably
to deliver the full Exercise Price multiplied by the number of Option Shares
being purchased pursuant to such exercise, plus the amount of the Withholding
Tax to the Company on a date satisfactory to the Company, but no later than the
date on which the sale transaction would settle in the ordinary course of
business or (b) obtain a "margin commitment" from the bank or broker pursuant to
which the bank or broker undertakes irrevocably to deliver the full Exercise
Price multiplied by the number of Option Shares being purchased pursuant to such
exercise, plus the amount of the Withholding Tax to the Company, immediately
upon receipt of the Option Shares.

                           7.3.3 STOCK PAYMENT. The Company, in its sole
discretion, may allow Employee to use Common Stock of the Company owned by him
to make any required payments by delivery of stock certificates in negotiable
form which are effective to transfer good and valid title thereto to the
Company, free

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of any liens or encumbrances. Shares of Common Stock used for this purpose shall
be valued at the Fair Market Value.

                           7.3.4 PAYMENT OF WITHHOLDING TAX. Any required
Withholding Tax may be paid in cash or with Common Stock in accordance with
Sections 7.3.1 and 7.3.2, respectively, and Section 6.

                           7.3.5 EXCHANGE ACT COMPLIANCE. Notwithstanding the
foregoing, the Company shall have the right to reject payment in the form of
Common Stock if in the opinion of counsel for the Company, (i) it could result
in an event of "recapture" under Section 16(b) of the Securities Exchange Act of
1934; (ii) such shares of Common Stock may not be sold or transferred to the
Company; or (iii) such transfer could create legal difficulties for the Company.

         8. SECURITY INTEREST IN OPTION SHARES COLLATERALIZING OBLIGATIONS OWED
TO THE COMPANY. Notwithstanding anything in this Agreement to the contrary, the
Employee hereby grants the Company a security interest in the Option Shares as
follows: in the event that the Employee owes the Company any sum including
without limitation amounts owed pursuant to a loan made by the Company to the
Employee ("Amount Due"), the Company shall have a security interest in the
Option Shares. The Employee hereby agrees to execute, promptly upon request by
the Company, such instruments and to take such action as may be useful for the
Company to perfect and/or exercise such security interest, and hereby
irrevocably grants the Company the right to retain, in full or partial payment
of the Amount Due, up to the following number of Option Shares upon any whole or
partial exercise of the Option: a fraction, the numerator of which is the Amount
Due, and the denominator of which is the Fair Market Value (as defined in the
Plan) of the Company's Common Stock as of the date of such exercise; provided
that the fraction set forth in the preceding clause shall be rounded up to the
nearest whole number. The security interest set forth herein shall be cumulative
to all, and not in lieu of any, other remedies to available to the Company with
respect to any Amount Due.

         9. NONASSIGNABILITY. The Option shall not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner, except by will or by the
laws of descent and distribution in the event of the death of the Employee.
Notwithstanding the foregoing, the Employee, with the approval of the Committee,
may transfer the Option (i) (A) by gift, for no consideration, or (B) pursuant
to a domestic relations order, in either case, to or for the benefit of the
Employee's Immediate Family (as defined in the Plan), or (ii) to an entity in
which the Employee and/or members of the Employee's Immediate Family own more
than fifty percent of the

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voting interest, in exchange for an interest in that entity, provided that such
transfer is being made for estate, tax and/or personal planning purposes and
will not have adverse tax consequences to the Company and subject to such limits
as the Committee may establish and the execution of such documents as the
Committee may require. In such event, the transferee shall remain subject to all
the terms and conditions applicable to the Option prior to such transfer.

         10. COMPANY REPRESENTATIONS. The Company hereby represents and warrants
to the Employee that:

                  (1) the Company, by appropriate and all required action, is
         duly authorized to enter into this Agreement and consummate all of the
         transactions contemplated hereunder; and

                  (2) the Option Shares, when issued and delivered by the
         Company to the Employee in accordance with the terms and conditions
         hereof, will be duly and validly issued and fully paid and
         non-assessable.

         11. EMPLOYEE REPRESENTATIONS. The Employee hereby represents and
warrants to the Company that:

                  (1) he or she is acquiring the Option and shall acquire the
         Option Shares for his own account and not with a view towards the
         distribution thereof;

                  (2) he or she has received a copy of the Plan as in effect as
         of the date of this Agreement;

                  (3) he or she has received a copy of all reports and documents
         required to be filed by the Company with the Securities and Exchange
         Commission pursuant to the Securities Exchange Act of 1934, as amended,
         within the last 24 months and all reports issued by the Company to its
         shareholders;

                  (4) he or she understands that he or she is subject to the
         Company's Insider Trading Policy and has received a copy of such policy
         as of the date of this Agreement;

                  (5) he or she understands that he or she must bear the
         economic risk of the investment in the Option Shares, which cannot be
         sold by him unless they are registered under the

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         Securities Act of 1933 (the "1933 Act") or an exemption therefrom is
         available thereunder and that the Company is under no obligation to
         register the Option Shares for sale under the 1933 Act;

                  (6) in his or her position with the Company, he or she has had
         both the opportunity to ask questions and receive answers from the
         officers and directors of the Company and all persons acting on its
         behalf concerning the terms and conditions of the offer made hereunder
         and to obtain any additional information to the extent the Company
         possesses or may possess such information or can acquire it without
         unreasonable effort or expense necessary to verify the accuracy of the
         information obtained pursuant to clause (3) above;

                  (7) he or she is aware that the Company shall place stop
         transfer orders with its transfer agent against the transfer of the
         Option Shares in the absence of registration under the 1933 Act or an
         exemption therefrom as provided herein; and

                  (8) if, at the time of issuance of the Option Shares, the
         issuance of such shares have not been registered under the 1933 Act,
         the certificates evidencing the Option Shares shall bear the following
         legend:

                           "The shares represented by this certificate have been
                           acquired for investment and have not been registered
                           under the Securities Act of 1933. The shares may not
                           be sold or transferred in the absence of such
                           registration or an exemption therefrom under said
                           Act."

                           "The shares represented by this certificate have been
                           acquired pursuant to a Stock Option Agreement, dated
                           as of December 17, 2003, a copy of which is on file
                           with the Company, and may not be transferred, pledged
                           or disposed of except in accordance with the terms
                           and conditions thereof."

         12. RESTRICTION ON TRANSFER OF OPTION SHARES.

                  12.1 Anything in this Agreement to the contrary
notwithstanding, Employee hereby agrees that he shall not sell, transfer by any
means or otherwise dispose of the Option Shares acquired by him without
registration under the 1933 Act, or in the event that they are not so
registered, unless (i) an exemption from the 1933 Act registration requirements
is available thereunder, and (ii) the Employee has furnished the Company with
notice of such proposed transfer and the Company's legal counsel, in its
reasonable opinion, shall deem such proposed transfer to be so exempt.

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                  12.2 Anything in this Agreement to the contrary
notwithstanding, Employee hereby agrees that he shall not sell, transfer by any
means or otherwise dispose of the Option Shares acquired by him except in
accordance with Company's Insider Trading Policy regarding the sale and
disposition of securities owned by employees and/or directors of the Company.

         13. ADJUSTMENTS. The number of shares subject to the Option, the
Exercise Price, the Exercise Period and the vesting of the Option shall all be
subject to adjustment under Section 3.2 of the Plan.

         14. MISCELLANEOUS.

                  14.1 NOTICES. All notices, requests, deliveries, payments,
demands and other communications which are required or permitted to be given
under this Agreement shall be in writing and shall be either delivered
personally or sent by registered or certified mail, or by private courier to the
parties at their respective addresses set forth herein, or to such other address
as either shall have specified by notice in writing to the other. Notice shall
be deemed duly given hereunder when delivered or mailed as provided herein.

                  14.2 PLAN PARAMOUNT; CONFLICTS WITH PLAN. This Agreement and
the Option shall in all respects, be subject to the terms and conditions of the
Plan, whether or not stated herein. In the event of a conflict between the
provisions of the Plan and the provisions of this Agreement, the provisions of
the Plan shall in all respects be controlling.

                  14.3 EMPLOYEE AND SHAREHOLDER RIGHTS. The Employee shall not
have any of the rights of a shareholder with respect to the Option Shares until
such shares have been issued after the due exercise of the Option. Nothing
contained in this Agreement shall be deemed to confer upon Employee any right to
continued employment with the Company or any subsidiary thereof, nor shall it
interfere in any way with the right of the Company to terminate Employee in
accordance with the provisions regarding such termination set forth in
Employee's written employment agreement with the Company, or if there exists no
such agreement, to terminate Employee at will.

                  14.4 WAIVER. The waiver by any party hereto of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
other or subsequent breach.

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                  14.5 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supercedes any and all prior agreements with respect to the Option. This
Agreement may not be amended except by writing executed by the Employee and the
Company.

                  14.6 BINDING EFFECT; SUCCESSORS. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and, to the extent not
prohibited herein, their respective heirs, successors, assigns and
representatives. Nothing in this Agreement, expressed or implied, is intended to
confer on any person other than the parties hereto and as provided above, their
respective heirs, successors, assigns and representatives any rights, remedies,
obligations or liabilities.

                  14.7 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York (without regard
to choice of law provisions).

                  14.8 HEADINGS. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this
Agreement.

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                  IN WITNESS WHEREOF, the parties hereto have signed this
Agreement as of the day and year first above written:

Ladenburg Thalmann Financial Services Inc.      Address: 590 Madison Avenue
                                                         New York, NY 10022

By: /s/ Victor M. Rivas
    --------------------------------------------------------
      Victor M. Rivas, President and Chief Executive Officer

Employee:                                       Address:
                                                         -----------------------

                                                         -----------------------

                                                         -----------------------
/s/ Salvatore Giardina
------------------------------------

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                                                                       EXHIBIT A

                      FORM OF NOTICE OF EXERCISE OF OPTION

----------------------------
           DATE

Ladenburg Thalmann Financial Services Inc.
590 Madison Avenue
New York, New York 10022
Attention:  Board of Directors

                           Re:      PURCHASE OF OPTION SHARES

Gentlemen:

                  In accordance with my Stock Option Agreement dated as of
December 17, 2003 with Ladenburg Thalmann Financial Services Inc. (the
"Company"), I hereby irrevocably elect to exercise the right to purchase
_________ shares of the Company's common stock, par value $.0001 per share
("Common Stock"), which are being purchased for investment and not resale.

                  As payment for my shares, enclosed is (check and complete
applicable box[es]):

                  o        a [personal check] [certified check] [bank check]
                           payable to the order of the Company in the sum of
                           $_________;

                  o        confirmation of wire transfer in the amount of
                           $_____________;

                  o        with the consent of the Company, a certificate for
                           __________ shares of the Company's Common Stock, free
                           and clear of any encumbrances, duly endorsed, having
                           a Fair Market Value (as such term is defined in the
                           Agreement of $_________; and/or

                  o        with the consent of the Company, through broker
                           payment as provided in Section 7.3.2 (see broker
                           letter attached).

                  I hereby represent and warrant to, and agree with, the Company
that:

                           (i) I am acquiring the Option and shall acquire the
         Option Shares for my own account, for investment, and not with a view
         towards the distribution thereof;

                           (ii) I have received a copy of the Plan and all
         reports and documents required to be filed by the Company with the
         Commission pursuant to the Exchange Act within the last 24 months and
         all reports issued by the Company to its shareholders;

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                           (iii) I understand that I must bear the economic risk
         of the investment in the Option Shares, which cannot be sold by me
         unless they are registered under the Securities Act of 1933 (the "1933
         Act") or an exemption therefrom is available thereunder and that the
         Company is under no obligation to register the Option Shares for sale
         under the 1933 Act;

                           (iv) I understand I am subject to the Company's
         Insider Trading Policy and have received a copy of such policy as of
         the date of this Agreement;

                           (v) I agree that I will not sell, transfer by any
         means or otherwise dispose of the Option Shares acquired by me hereby
         except in accordance with Company's policy, if any, regarding the sale
         and disposition of securities owned by employees and/or directors of
         the Company;

                           (vi) in my position with the Company, I have had both
         the opportunity to ask questions and receive answers from the officers
         and directors of the Company and all persons acting on its behalf
         concerning the terms and conditions of the offer made hereunder and to
         obtain any additional information to the extent the Company possesses
         or may possess such information or can acquire it without unreasonable
         effort or expense necessary to verify the accuracy of the information
         obtained pursuant to clause (ii) above;

                           (vii) I am aware that the Company shall place stop
         transfer orders with its transfer agent against the transfer of the
         Option Shares in the absence of registration under the 1933 Act or an
         exemption therefrom as provided herein; and

                           (viii) My rights with respect to the Option Shares,
         in all respects, be subject to the terms and conditions of this
         Company's 1999 Performance Equity Plan and this Agreement; and

                           (ix) if, at the time of issuance of the Option
         Shares, the issuance of such shares have not been registered under the
         1933 Act, the certificates evidencing the Option Shares shall bear the
         following legends:

                  "The shares represented by this certificate have been acquired
                  for investment and have not been registered under the
                  Securities Act of 1933. The shares may not be sold or
                  transferred in the absence of such registration or an
                  exemption therefrom under said Act."

                  "The shares represented by this certificate have been acquired
                  pursuant to a Stock Option Agreement, dated as of December 17,
                  2003, a copy of which is on file with the Company, and may not
                  be transferred, pledged or disposed of except in accordance
                  with the terms and conditions thereof."

Kindly forward to me my certificate at your earliest convenience.

Very truly yours,

----------------------------------          ------------------------------------
(Signature)                                 (Address)

----------------------------------          ------------------------------------
(Print Name)

                                            ------------------------------------
                                            (Social Security Number)

                                       12<PAGE>
                                                                   Exhibit 10.47

                           AMENDMENT TO EMPLOYMENT AGREEMENT

         WHEREAS LADENBURG THALMANN FINANCIAL SERVICES INC. (formerly known as
GBI Capital Management Corp.) and LADENBURG CAPITAL MANAGEMENT INC. (formerly
known as GBI Capital Partners Inc.) and MARK ZEITCHICK (the "Executive") have
entered into an EMPLOYMENT AGREEMENT, dated as of August 24, 1999 ("Original
Agreement"), a first amendment to the Agreement dated February 8, 2001, a letter
amendment dated February 8, 2001, a letter amendment dated May 7,2001, a second
amendment dated August 30, 2001 (dated August 31, 2001 in the Form 8-K/A filed
on September 10, 2001 by LTFS, as hereafter defined), and a letter amendment
dated October 10, 2002 (together, the "Amended Agreement"); and

         WHEREAS the parties desire to further amend the Amended Agreement;

                  NOW THEREFORE, in consideration of the mutual promises and
agreements herein contained, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties, intending to
be legally bound, hereby agree as follows ("this Agreement"):

         1. TERM OF EMPLOYMENT. The term of the Executive's employment under
this Agreement shall be through August 31, 2004 (the "Term").

         2. DUTIES OF EMPLOYMENT. The Executive hereby agrees that he will serve
as a registered representative of Ladenburg Thalmann & Co. Inc. ("LTCI"), a
wholly owned subsidiary of Ladenburg Thalmann Financial Services Inc. ("LTFS"),
and LTCI and LTFS (sometimes, collectively, the "Company") agree to employ the
Executive, subject to regulatory requirements; Executive will not be required to
enter into any "Association Agreement"; except as may be required for
compliance, registration, or regulatory reasons, Executive will not be subject
to any attendance policy; Executive shall provide such services as may be
mutually agreed upon by LTCI or LTFS, on the one hand, and Executive, on the
other. Except as specifically provided herein, Executive shall have no duty or
obligation to provide any services hereunder. Executive shall remain as a
director of LTFS (and LTFS agrees to nominate and elect Executive to serve in
such capacity for as long as Executive wishes to serve; otherwise, effective as

<PAGE>

of the close of business on December 31, 2003, Executive hereby resigns as an
officer of LTFS and resigns as an officer and director of all affiliates and
subsidiaries of LTFS. The Executive will execute such other documents relative
to such resignations as may be requested by LTFS and its affiliates and
subsidiaries.

         3. COMPENSATION AND OTHER BENEFITS.

                            3.1 SALARY. Effective as of January 1, 2004, the
                  full base compensation for all services to be rendered by the
                  Executive hereunder (including Executive's service as a LTFS
                  director) that LTCI shall pay to the Executive (or to another
                  company, employee , or other person or entity designated by
                  Executive from time to time)shall be amended to a base salary
                  (gross pretax) at a monthly rate of $3,750.00, in accordance
                  with usual payroll practices for executives. The monthly base
                  salary set forth in this Section 3.1 shall hereinafter be
                  referred to as the "Base Salary." LTCI shall withhold or cause
                  to be withheld from the Base Salary (and other amounts
                  hereunder) all taxes and other amounts as are required by law
                  to be withheld.

                           3.2 INCENTIVE AND BONUS PLANS. Effective as of
                  January 1, 2004, the percentage of Total Revenue that the
                  Executive shall be entitled to receive under the Incentive
                  Plan shall be amended to 0.25335 per cent. The Company's
                  obligation to compensate the Executive for the Executive's
                  participation in the Bonus Plan shall continue for the balance
                  of the Term, and payment thereunder shall continue in accord
                  with past practice notwithstanding that actual payment is not
                  effected until after the expiration of the Term. The Company
                  shall be obligated to pay all sums due to Executive under
                  Sections 3.1 and 3.2 hereof, which obligation shall be
                  absolute and unconditional.

                           3.3 ADDITIONAL COMPENSATION. In addition to the Base
                  Salary, the Executive will be eligible to receive additional
                  compensation as follows: (i) 50% payout on all of Executive's
                  retail brokerage production in accordance with standard LTCI
                  procedures on

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                  terms no less favorable than those currently in effect as of
                  the date of this Agreement, and (ii) 15% of any pay or
                  compensation received by LTCI or any affiliate thereof as a
                  finders fee for corporate finance transactions entered into
                  within 18 months after introduction to LTCI by the Executive
                  to be paid on terms no less favorable than those currently in
                  effect as of the date of this Agreement which in no event will
                  be more than 30 days after receipt by LTCI or any such
                  affiliate, provided, however, that the finder's fee for any
                  single transaction shall be reduced by any amount that LTCI is
                  obligated to pay to another finder. The payments under (i) and
                  (ii) shall be termed "Additional Compensation." As of January
                  1, 2004, the Executive shall no longer participate in any
                  special override or other bonus program not referred to
                  specifically above; provided, however, that the Executive
                  shall continue to be paid any such benefits earned through
                  December 31, 2003 in accordance with past practices. Any
                  outstanding expenses incurred by the Executive in connection
                  with his employment that remain unpaid as of the date hereof,
                  as well as any expenses reasonably incurred by Executive in
                  carrying out his duties for the Company will be paid in
                  accordance with firm policy. Further, while he is employed at
                  LTCI, to the extent that LTFS stock options under the
                  Ladenburg Thalmann Financial Services Inc. 1999 Performance
                  Equity Plan are distributed to registered representatives
                  based on their level of commission production, the Executive
                  shall participate in such distribution based on his level of
                  commission production.

                           3.4 PARTICIPATION IN INSURANCE AND OTHER PLANS.
                  Section 5(A) of the Original Agreement, as amended in the
                  Amended Agreement, shall remain in effect. During the Term,
                  the Executive shall be promptly reimbursed for all
                  out-of-pocket expenses, including expenses for spouse and
                  children (to the extent permitted under the terms of the
                  plan), not reimbursed under the LTCI health insurance plan.

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                           3.5 OFFICE. During the Term, the Executive shall be
                  provided with a private office at the Company's office in Boca
                  Raton, Florida or, if the Company moves, at such other office
                  of the Company in Florida proximate to the Executive's home.

                           3.6 INDEMNIFICATION. Both (a) the existing
                  Indemnification Agreement entered into on February 7, 2001 in
                  favor of the Executive (copy annexed) and (b) Section 5(C) and
                  8 of the Original Agreement as amended in the Amended
                  Agreement in favor of the Executive (together, "the
                  Indemnification Agreements") shall remain in effect as joint
                  and several obligations of LTFS, LTCI and LCMI. Without
                  limiting the foregoing, simultaneously with the full execution
                  of this Agreement, LCMI shall pay the sum of $14,600.00 to
                  Esanu Katsky Korins & Siger, LLP, which shall constitute full
                  payment of all time and disbursement charges incurred by such
                  firm in connection with services rendered for the benefit of
                  the Executive in connection with the review and negotiation of
                  this Agreement through the date hereof.

                           3.7 CLAIMS. LTFS, LTCI and LCMI (in the case of LCMI,
                  based on the knowledge of Victor M. Rivas, Co-Chairman, and
                  Joseph Giovanniello, Jr., General Counsel) hereby represent to
                  Executive that none of them or any of their affiliates
                  presently is aware of facts sufficient to support a claim
                  against Executive.

                           3.8 AMENITIES. During the Term, the Executive shall
                  be provided at LTCI's expense with a desktop computer, and the
                  following market data services: Williams O'Neil Direct Access
                  ("WONDA") (two access codes), E-Signal Service, Lancer
                  Analytics and Washington Service. Provision of WONDA shall
                  continue until August 31, 2006 or until the Company ceases to
                  use WONDA, whichever first occurs. LTCI shall pay Executive's
                  applicable securities registration and licensing costs.

                           3.9 STOCK OPTIONS. Notwithstanding anything to the
                  contrary set forth herein, and unless the Executive's
                  employment hereunder is terminated for cause, the Company
                  agrees to employ the Executive hereunder as a registered
                  representative of LTCI, or in

                                       4
<PAGE>

                  some other mutually agreed upon capacity, from September 1,
                  2004 through January 31, 2005 sufficient to cause all
                  unexercised options heretofore issued to the Executive and to
                  MZ Trading LLC (including, without limitation, under that
                  certain letter agreement between LTFS and MZ Trading LLC dated
                  August 20, 2003) to fully vest in accordance with their terms.
                  In the event that any sums earned by the Executive or MZ
                  Trading LLC as a result of exercising stock options heretofore
                  issued to them are to be returned or recaptured by the Company
                  pursuant to the 1999 Performance Equity Plan or other plan
                  under which such options were issued for any reason other than
                  the termination of the Executive for cause, then the Company
                  agrees to promptly pay the Executive an equal amount hereunder
                  as a complete offset such that no sums need actually be paid
                  by the Executive.

                           3.10 HEDGE FUND PAYMENT. If Ladenburg Capital Fund
                  Management Inc., the general partner of the Ladenburg Focus
                  Fund LP (the "Fund") , is paid any performance, management or
                  other fee in connection with the Fund (the "Fund Fee") during
                  or relating to the period ending December 31, 2003, the
                  Executive shall be paid a percentage of the Fund Fee within 10
                  days after the Fund's receipt thereof. Such percentage of the
                  Fund Fee shall be 20%.

         4. CONFIDENTIALITY, ETC.

                           4.1 The Executive covenants and agrees that he shall
                  treat as confidential all information and financial matters of
                  LTFS and its subsidiaries and affiliates, other than
                  information which becomes generally available to the public
                  otherwise than through disclosure by the Executive
                  (collectively "Confidential Information"), including, without
                  limitation, trade secrets, client lists, pricing policies,
                  operational methods, research projects and technical
                  processes, and that he shall not disclose, communicate or
                  divulge any Confidential Information to any person or entity
                  other than LTFS or its subsidiaries and affiliates and that he
                  shall not use any Confidential Information for the benefit of
                  any

                                       5
<PAGE>

                  person or entity other than LTFS, its subsidiaries and
                  affiliates unless expressly authorized in writing by the
                  Board, provided, however, that the foregoing shall not
                  preclude the Executive from (a) divulging information in what
                  he reasonably and in good faith believes is in the ordinary
                  course of LTCI business or is required to be disclosed
                  pursuant to regulatory requirement to regulatory agencies or
                  otherwise required pursuant to applicable law, or (b)
                  soliciting his existing clients to go to another firm, or from
                  transacting business with his existing clients.

                           4.2 The Executive agrees that during the period he is
                  employed hereunder and for a period of one (1) year
                  thereafter, he will not, without the prior written consent of
                  the Company, directly or indirectly (including without
                  limitation by assisting any other person or entity to do so or
                  identifying for any other person or entity), solicit, entice,
                  persuade, or induce any then-current employee, director,
                  officer, associate, or substantially full-time consultant,
                  agent or independent contractor of the Company or its
                  affiliates (i) to terminate such person's employment or
                  engagement by the Company or an affiliate or (ii) to become
                  employed by any person, firm, partnership, corporation, or
                  other entity other than the Company or its affiliates.

                           4.3 The Executive agrees that during the period he is
                  employed hereunder and for a period of one (1) year
                  thereafter, he will not, without the prior written consent of
                  the Company, directly or indirectly (including without
                  limitation by assisting any other person or entity to do so or
                  identifying for any other person or entity), contact any
                  customer of LTFS or any subsidiary or affiliate for the
                  purpose of soliciting securities business, except that this
                  provision shall not preclude Executive from contacting or
                  transacting business with any of his existing clients.

                           4.4 If the Executive commits a material breach, or is
                  about to commit a material breach, of any of the provisions of
                  Sections 4.1, 4.2 or 4.3 above, the Company shall have the
                  right to have the provisions of this Agreement specifically
                  enforced by any

                                       6
<PAGE>

                  court having equity jurisdiction without being required to
                  post bond or other security and without having to prove the
                  inadequacy of the available remedies at law (the foregoing
                  being expressly waived by the Executive hereby), it being
                  acknowledged and agreed by the Executive hereby that any such
                  breach or threatened breach will cause irreparable injury to
                  the Company and that money damages will not provide an
                  adequate remedy to the Company. In addition, the Company may
                  take all such other actions and remedies available to it under
                  the law and in equity and shall be entitled to such damages as
                  it can show it has sustained by reason of such breach.

         5. TERMINATION.

                           5.1 If the Company terminates the Executive's
                  employment hereunder for any reason, the Company shall be
                  obligated to pay to the Executive, within 30 days of such
                  termination all sums due to Executive under this Agreement to
                  the extent they have not yet been paid, without offset or
                  deduction other than required withholding amounts. If
                  Executive terminates his employment hereunder for a reason not
                  relating to the Company's breach hereof, the unpaid sums due
                  under sections 3.1, 3.2 and 3.3 will be paid within 30 days,
                  without offset or deduction other than required withholding
                  amounts; the salary to be paid under section 3.1 will continue
                  to be paid monthly, without offset or deduction other than
                  required withholding amounts; Executive shall have no
                  obligation to mitigate damages; if Executive is employed by or
                  performs any services for a competitor to LTFS or any of its
                  affiliates, Executive shall resign from the Board of LTFS.
                  Sections 7(A) and 7(E) of the Original Agreement, as amended
                  in the Amended Agreement, shall remain in effect; provided,
                  however, that the Executive's (and his dependents')
                  participation in any and all life, disability, medical and
                  dental insurance plans shall be continued, or equivalent
                  benefits provided to him or them by the Company, at no cost to
                  him or them, with medical insurance and reimbursement
                  benefits, consistent with past practices, through August 24,
                  2006.

                                       7
<PAGE>

                           5.2 In the event of the Executive's death during the
                  Term, this Agreement shall be terminated, except that the
                  Company shall pay to the Executive's spouse or designated
                  beneficiary, if he is survived by a spouse or designated
                  beneficiary, or if not, to his estate, for one year from the
                  date of death (which may extend beyond the Term), to the
                  extent not already paid: (1) an amount equal to the
                  Executive's Base Salary for such period; (2) the Additional
                  Compensation, if any, for such period; (3) any remaining
                  payments due under section 3.1, paid monthly; and (4) benefits
                  under sections 3.2 and 3.4.

                             5.3 For the avoidance of doubt, the following
                  provisions of this Agreement shall survive the termination of
                  this Agreement for any reason: Sections
                  3.1,3.2,3.3,3.4,3.6,3.8,3.9,3.10 and 5. In addition, LTFS
                  shall be jointly responsible for and guarantee the obligations
                  hereunder of LTCI and Ladenburg Capital Management Inc.

         6. NON-ASSIGNMENT. This Agreement and all of the Executive's rights and
obligations hereunder are personal to the Executive and shall not be assignable;
PROVIDED, HOWEVER, that upon his death all of the Executive's rights to cash
payments under this Agreement shall inure to the benefit of his widow, personal
representatives, designees or other legal representatives, as the case may be.
Any person, firm or corporation succeeding to the business of the Company by
merger, purchase, consolidation or otherwise may assume by contract or operation
of law the obligations of the Company hereunder, PROVIDED, HOWEVER, that the
Company shall, notwithstanding such assumption, remain liable and responsible
for the fulfillment of its obligations under this Agreement. This Agreement
shall be binding upon the parties, their successors, heirs, administrators and
permitted assigns.

         7. OTHER PROVISIONS.

                           7.1 NOTICES.Any notice or other communication
                  required or permitted hereunder shall be in writing and shall
                  be delivered personally, telegraphed, telexed, sent by
                  facsimile transmission or sent by certified, registered or
                  express mail,

                                       8
<PAGE>

                  postage prepaid. Any such notice shall be deemed given when so
                  delivered personally, telegraphed, telexed, or sent by
                  facsimile transmission or, if mailed, five days after the date
                  of deposit in the United States mail, as follows:

                           (i)      if to the Company, to:

                                    Ladenburg Thalmann & Co. Inc.
                                    590 Madison Avenue
                                    New York, NY 10022

                                    Attention:  Mr. Victor M. Rivas

                           (ii)     if to the Executive, to;

                                    Mr. Mark Zeitchick
                                    961 Hyacinth Drive
                                    Delray Beach, FL 33483

                           Any party may change its address for notice hereunder
                  by notice to the other party hereto.

                           7.2 ENTIRE AGREEMENT.This Agreement contains the
                  entire agreement between the parties with respect to the
                  subject matter hereof and supersedes all prior
                  representations, warranties and agreements, written or oral,
                  with respect thereto. All provisions of the Amended Agreement
                  are no longer in effect except for those provisions thereof
                  which are (i) specifically referenced herein, or (ii) which
                  are related to, dependent upon, or which are necessary to
                  implement, those provisions of the Amended Agreement described
                  in this Agreement. Those provisions described in (i) and (ii)
                  immediately above are hereby confirmed and shall remain in
                  full force and effect. All capitalized terms which are not
                  defined herein shall have the respective definitions ascribed
                  thereto in the Amended Agreement.

                           7.3 WAIVERS AND AGREEMENTS. This Agreement may be
                  amended, modified, superseded, canceled, renewed or extended,
                  and the terms and conditions hereof may be waived, only by a
                  written instrument signed by the parties or, in the case of a
                  waiver, by the party waiving compliance. No delay on the part
                  of any party in

                                       9
<PAGE>

                  exercising any right, power or privilege hereunder shall
                  operate as a waiver thereof, nor shall any waiver on the part
                  of any party of any right, power or privilege hereunder, nor
                  any single or partial exercise of any right, power or
                  privilege hereunder preclude any other or further exercise
                  thereof or the exercise of any other right, power or privilege
                  hereunder.

                           7.4 GOVERNING LAW. This Agreement shall be governed
                  by and construed in accordance with the substantive laws of
                  the State of New York, without regard to its principle of
                  conflicts of law.

                           7.5 COUNTERPARTS. This Agreement may be executed in
                  counterparts, each of which shall be deemed an original but
                  both of which together shall constitute one and the same
                  instrument.

                           7.6 HEADINGS. The headings in this Agreement are for
                  reference purposes only and shall not in any way affect the
                  meaning or interpretation of this Agreement.

         8. ARBITRATION. Section 15 of the Original Agreement, as amended in the
Amended Agreement, shall continue in effect.

         9. SEVERABILITY. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

                                       10
<PAGE>

         IN WITNESS WHEREOF, this Agreement shall become effective as of the
date that this Agreement is signed and delivered by the parties.

The Representations As to LCMI      Ladenburg Thalmann Financial Services Inc.
Set Forth In Section 3.7 Above
Are Hereby Confirmed By the
Undersigned As To Themselves

/s/ Victor M. Rivas                  By: /s/ Victor M. Rivas
----------------------------------      ----------------------------------------
         Victor M. Rivas

/s/ Joseph Giovanniello, Jr.
----------------------------------  Ladenburg Thalmann & Co. Inc
     Joseph Giovanniello, Jr.

                                    By: /s/ Victor M. Rivas
                                        ----------------------------------------

                                    Ladenburg Capital Management Inc.

                                    By: /s/ Joseph Giovanniello, Jr.
                                        ----------------------------------------

                                        /s/          Mark Zeitchick
                                    --------------------------------------------
                                                     Mark Zeitchick

                                       11

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