Document:

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                                                                   EXHIBIT 10.47

                           AMENDMENT TO EMPLOYMENT AGREEMENT

         WHEREAS LADENBURG THALMANN FINANCIAL SERVICES INC. and LADENBURG
CAPITAL MANAGEMENT INC. (formerly known as GBI Capital Partners Inc.) and
RICHARD J. ROSENSTOCK (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 as of February
8, 2001, a second amendment dated August 31, 2001, 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 for three years, from January 1, 2003 through December
31, 2005 (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) 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) and (b) Chief Executive
Officer and a director of Ladenburg Capital Management Inc. ("LCMI") until the

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pending Form BDW becomes effective; otherwise, effective as of December 31,
2002, 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 AT SIGNING. The Executive shall be paid $25,000
                  upon the execution of this Agreement.

                           3.2. SALARY. As his full base compensation for all
                  services to be rendered by the Executive hereunder (including
                  Executive's service as an LTFS director), LTCI shall pay to
                  the Executive (or to another company, employee , or other
                  person or entity designated by Executive from time to time) a
                  base salary (gross pretax) at a monthly rate of $17,083.33 for
                  the first year, and $15,000 for the second and third years, in
                  accordance with usual payroll practices for executives. The
                  monthly base salary set forth in this Section 3.2 shall
                  hereinafter be referred to as the "Base Salary." LTCI shall
                  withhold or cause to be withheld from the Base Salary and from
                  the $25,000 payable under Section 3.1 (and other amounts
                  hereunder) all taxes and other amounts as are required by law
                  to be withheld. The Company's obligation to pay the sums due
                  to Executive under Sections 3.1 and 3.2 hereof shall be
                  absolute and unconditional.

                           3.3 ADDITIONAL COMPENSATION. (1) 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 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 (including without limitation the
                  companies listed on Exhibit A) 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

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                  termed "Additional Compensation." As of January 1, 2003, the
                  Executive shall no longer participate in any incentive plan
                  override, special override or other bonus program; provided,
                  however, that the Executive shall continue to be paid any such
                  benefits earned through December 31, 2002 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.

                           3.5 OFFICE. During the Term, the Executive shall be
                  provided with a private office; provided that LTCI has a
                  branch office on Long Island, the Executive shall be given an
                  office in the Long Island branch; initially, the Executive's
                  office shall be in the LTCI Great Neck branch office.

                           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

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                  Agreement in favor of the Executive (together, "the
                  Indemnification Agreements") shall remain in effect as joint
                  and several obligations of LTFS, LTCI and LCMI. In addition,
                  to the extent, if any, that the Executive is liable under the
                  December 1996 "Guaranty of Lease" executed in connection with
                  the lease of space at 1055 Stewart Avenue, Bethpage, New York
                  from Briarcliffe College, Inc., such claim shall be treated as
                  a covered claim under the Indemnification Agreements. Without
                  limiting the foregoing, simultaneously with the full execution
                  of this Agreement, LCMI shall pay the sum of $20,230 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 for the benefit of the Executive
                  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, 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 sales assistant, desktop
                  computer, and market data service; LTCI shall pay Executive's
                  applicable securities registration and licensing costs.

                           3.9 During the Term, Oscar Sonkin shall continue to
                  be employed as a registered representative in the LTCI branch
                  office in Boca Raton, Florida, subject to compliance and
                  regulatory requirements.

         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

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                  (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 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.

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                           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 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 LTCI terminates the Executive's employment
                  hereunder for any reason, LTCI 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; to the extent that any stock options
                  issued to the Executive have not yet vested as of the date
                  that LTCI terminates Executive, the vesting of such options
                  shall proceed on schedule notwithstanding such termination. 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 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 3.2 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.

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                           5.2 In the event of the Executive's death during the
                  Term, this Agreement shall be terminated, except that LTCI
                  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 (1) any unpaid Base Salary earned through
                  the date of death; (2) the Additional Compensation, if any, to
                  the extent not already paid; (3) instead of any remaining
                  payments due under section 3.2, 12 months' salary, paid
                  monthly, not to extend beyond the end of the term; (4)
                  benefits under section 3.4 continuing throughout the remainder
                  of the term.

                             5.3 For the avoidance of doubt, the following
                  provisions shall survive the termination of this Agreement for
                  any reason: Sections 3.2,3.3,3.4,3.6,3.8 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

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                  express mail, 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. Richard J. Rosenstock
                                    78 Tammy's Lane
                                    Muttontown, NY  11791

                           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. To the extent not expressly mentioned
                  herein, all provisions of the Amended Agreement are no longer
                  in effect.

                           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 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.

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                           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.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of
December 31, 2002.

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

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

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

                                            By: /s/ Joseph Giovanniello
                                              --------------------------------

                                            Ladenburg Capital Management Inc.

                                            By: /s/ Joseph Giovanniello
                                              --------------------------------

                                               /s/ Richard J. Rosenstock
                                            ----------------------------------
                                                   Richard J. Rosenstock

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                                                                   EXHIBIT 10.48

                             STOCK OPTION AGREEMENT

                  AGREEMENT made as of the 15th day of November, 2002, by and
between LADENBURG THALMANN FINANCIAL SERVICES INC., a Florida corporation (the
"Company"), and ___________ (the "Director").

                  WHEREAS, on November 15, 2002 (the "Grant Date"), pursuant to
the terms and conditions of the Company's 1999 Performance Equity Plan (the
"Plan"), the Compensation Committee (the "Committee") of the Board of Directors
of the Company authorized the grant to the Director of an option (the "Option")
to purchase an aggregate of 20,000 shares of the authorized but unissued Common
Stock of the Company, $.0001 par value (the "Common Stock"), conditioned upon
the Director's acceptance thereof upon the terms and conditions set forth in
this Agreement and subject to the terms of the Plan; and

                  WHEREAS, the Director desires to acquire the Option on the
terms and conditions set forth in this Agreement and subject to the terms of the
Plan;

                  IT IS AGREED:

                  1. GRANT OF STOCK OPTION. The Company hereby grants the
Director the Option to purchase all or any part of an aggregate of 20,000 shares
of Common Stock (the "Option Shares") on the terms and conditions set forth
herein and subject to the provisions of the Plan.

                  2. NON-INCENTIVE STOCK OPTION. The Option represented hereby
is not intended to be an option which qualifies as an "Incentive Stock Option"
under Section 422 of the Internal Revenue Code of 1986, as amended.

                  3. EXERCISE PRICE. The exercise price of the Option shall be
$0.22 per share, subject to adjustment as hereinafter provided.

                  4. EXERCISABILITY. This Option is exercisable, subject to the
terms and conditions of the Plan, on and after November 15, 2003. After the
Option becomes exercisable, it shall remain exercisable except as otherwise
provided herein, until the close of business on November 15, 2012 (the "Exercise
Period").

                  5. TERMINATION DUE TO DEATH. Upon the death of the Director,
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 Director under the will of the Director, 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 terminate upon death.

                  6. WITHHOLDING TAX. Not later than the date as of which an
amount first becomes includable in the gross income of the Director for Federal
income tax purposes with respect to the Option, the Director shall pay to the
Company, or make arrangements satisfactory to the Committee regarding the

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payment of, any Federal, state and local taxes of any kind required by law to be
withheld or paid with respect to such amount. The obligations of the Company
under the Plan and pursuant to this Agreement shall be conditional upon such
payment or arrangements with the Company and the Company shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Director from the Company.

                  7. ADJUSTMENTS. In the event of any change in the shares of
Common Stock of the Company as a whole occurring as the result of a stock split,
reverse stock split, stock dividend payable on shares of Common Stock,
combination or exchange of shares, or other extraordinary or unusual event, the
Company shall proportionally adjust the number and kind of Option Shares and the
exercise price of the Option in order to prevent the dilution or enlargement of
the Director's proportionate interest in the Company and his rights hereunder,
provided that the number of Option Shares shall always be a whole number.

                  8. METHOD OF EXERCISE.

                           8.1. NOTICE TO THE COMPANY. The Option shall be
exercised in whole or in part by written notice in substantially 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.

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

                           8.3. PAYMENT OF PURCHASE PRICE.

                                    8.3.1. CASH PAYMENT. The Director 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.

                                    8.3.2. CASHLESS PAYMENT. At the election of
the Director, the purchase price for any or all of the Option Shares to be
acquired may be paid by the surrender of shares of Common Stock of the Company
held by or for the account of the Director with a "fair market value" equal to
the purchase price multiplied by the number of Option Shares to be purchased.
"Fair market value" of the Common Stock means, as of the exercise date: (i) if
the Common Stock is listed on a national securities exchange or quoted on the
Nasdaq National Market or Nasdaq SmallCap Market, the last sale price of the
Common Stock in the principal trading market for the Common Stock on the last
day trading day preceding such date, as reported by the exchange or Nasdaq, as
the case may be; (ii) if the Common Stock is not listed on a national securities
exchange or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, but
is traded in the over-the-counter market, the closing bid price of the Common
Stock on the last trading day preceding such date for which such quotations are
reported by the National Quotation Bureau, Incorporated or similar publisher of
such quotations; and (iii) if the fair market value of the Common Stock cannot
be determined pursuant to clause (i) or (ii) above, such price as the Company
shall determine, in good faith. The Company shall issue a certificate or
certificates evidencing the Option Shares as soon as practicable after the
notice and payment is received. The certificate or certificates evidencing the
Option Shares shall be registered in the name of the person or persons so
exercising the Option.

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                                    8.3.3. PAYMENT PRICE OF WITHHOLDING TAX. Any
required withholding tax may be paid in cash or with Common Stock in accordance
with Sections 8.3.1. and 8.3.2.

                                    8.3.4. 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, as amended ("Exchange Act"); (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.

                  9. NONASSIGNABILITY. Except as may be set forth in the next
sentence of this Section, the Option shall not be transferable by the Director
except by will or by the laws of descent and distribution, and the Option shall
be exercisable, during the Director's lifetime, only by the Director (or, to the
extent of legal incapacity or incompetency, the Director's guardian or legal
representative). Notwithstanding the foregoing, the Director, 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 Director's Immediate Family (as defined in the Plan), or (ii) to
an entity in which the Director and/or members of the Director's Immediate
Family own more than fifty percent of the 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 Director that:

                           (i) 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

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

                  11. DIRECTOR REPRESENTATIONS. The Director hereby represents
and warrants to the Company that:

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

                           (ii) he has received a copy of all reports and
         documents required to be filed by the Company with the Commission
         pursuant to the Exchange Act within the last 12 months and all reports
         issued by the Company to its stockholders;

                           (iii) he understands that he must bear the economic
         risk of the investment in the Option Shares, which cannot be sold by
         him unless they are registered under the Securities Act of 1933, as
         amended (the "1933 Act") or an exemption therefrom is available

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         thereunder and that the Company is under no obligation to register the
         Option Shares for sale under the 1933 Act;

                           (iv) in his position with the Company, he 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 (ii) above;

                           (v) he 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

                           (vi) 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 November 15, 2002, 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. Anything in this
Agreement to the contrary notwithstanding, the Director 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 Director 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. Further, the Director agrees that he shall abide by all of the
Company's policies in effect at the time he acquires any Option Shares and
thereafter, including the Company's Insider Trading Policy, with respect to the
ownership and trading of the Company's securities.

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                  13. MISCELLANEOUS.

                           13.1. 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,
return receipt requested, postage prepaid to the Company at its principal
executive office and to the Director at his address set forth below, or to such
other address as either party shall have specified by notice in writing to the
other. Notice shall be deemed duly given hereunder when delivered or mailed as
provided herein.

                           13.2. 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.

                           13.3. SHAREHOLDER RIGHTS. The Director 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.

                           13.4. 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.

                           13.5. ENTIRE AGREEMENT. This Agreement constitutes
the entire agreement between the parties with respect to the subject matter
hereof. This Agreement may not be amended except by writing executed by the
Director and the Company.

                           13.6. 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.

                           13.7. 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).

                           13.8. 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.

                                       5
<PAGE>

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

Director:                      Ladenburg Thalmann Financial Services Inc.

                               By:
                                  --------------------------------------------

--------------------
                                    Victor M. Rivas
                                    President and Chief Executive Officer

Address of Director:

                                       6
<PAGE>

                                                                       EXHIBIT A

                      FORM OF NOTICE OF EXERCISE OF OPTION

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

Ladenburg Thalmann Financial Services Inc.

Attention:  Board of Directors

                      Re:     PURCHASE OF OPTION SHARES

Gentlemen:

         In accordance with my Stock Option Agreement dated as of November 15,
2002 ("Agreement") 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 for 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 "Ladenburg Thalmann Financial Services Inc." in
                  the sum of $_________;

         o        confirmation of wire transfer in the amount of $_____________;
                  and/or

         o        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 Company's
                  1999 Performance Equity Plan) of $_________.

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

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

                  (ii) I have received a copy of all reports and documents
required to be filed by the Company with the Commission pursuant to the
Securities Exchange Act of 1934, as amended, within the last 12 months and all
reports issued by the Company to its stockholders;

                  (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

<PAGE>

register the Option Shares for sale under the 1933 Act; (iv) 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;

                  (v) 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;

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

                  (vii) 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
                      November 15, 2002, 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)                                    (Address)

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

                                       2

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