Document:

EX-10.4 EMPLOYMENT AGREEMENT/ JIM OLSON

 

Exhibit 10.4

[Execution Copy]

EMPLOYMENT AGREEMENT

     This
Employment Agreement (this “Agreement”) is made and entered into effective as of July 10,
2006 (the “Effective Date”), by and among
The Peachtree Bank, a
Georgia banking corporation (“Employer”); and Jim
Olson, a resident of the State of Georgia
(“Executive”).

Recitals

     WHEREAS, pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”) dated
as of May 24, 2006, between Alabama National BanCorporation, a Delaware corporation (“ANB”) and
Employer’s parent holding company, Employer will become a wholly-owned subsidiary of ANB; and

     WHEREAS, Executive is a valuable member of Employer’s management team, and, as a condition to
the consummation of the transactions provided for in the Merger Agreement, Executive and Employer
have agreed to enter into this Agreement.

Agreement

     NOW THEREFORE, in consideration of the mutual recitals and covenants contained herein, and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereby agree as follows:

     1.     Employment. Employer agrees to employ Executive and Executive agrees to be employed
by Employer, subject to the terms and provisions of this Agreement. The period of Executive’s
employment by Employer under the terms of this Agreement will be coterminous with the Agreement
Term (as defined below), unless such employment terminates earlier in accordance with the
provisions of Section 9 hereof.

     2.     Agreement Term. The term of this Agreement (the “Agreement Term”) shall be for a
period of five (5) years, commencing on the Effective Date. Any termination of Executive’s
employment prior to the expiration of the Agreement Term shall be independent from, and shall not
serve to terminate or shorten, the Agreement Term.

     3.     Duties; Extent of Services. Executive shall perform for Employer all duties
incident to the position of Senior Credit Officer, under the direction of the Board of Directors,
the Chief Executive Officer, and/or the President of Employer or their designee(s). In addition,
Executive shall engage in such other services for Employer or its affiliated companies as Employer
from time to time shall direct. The duties, services and reporting relationship of Executive and
the title of Executive’s position may be extended, reduced, re-assigned, curtailed or modified
unilaterally by Employer from time to time without breaching or affecting the enforceability of the
terms of this Agreement so long as Executive continues to occupy an officer position with Employer
(or its successor or assignee). Executive shall use Executive’s best efforts in, and devote
Executive’s entire time, attention and energy, during regular business hours, to Employer’s
business, and Executive shall not conduct any other activities that are or may be detrimental to
Employer’s business.

     4.     Compensation. The compensation due to Executive shall be as follows and, except as
otherwise provided herein, shall be due from the Effective Date until the termination of
Executive’s employment:

 

 

     (a)     Base Salary. Executive’s total annual base salary shall be not less than $160,000,
payable with the same frequency as the salaries of other employees of Employer.

     (b)     Annual Bonus Opportunity. Executive will be eligible to receive an annual bonus,
the amount
of which, if any, would be determined by Employer’s Board of Directors or its designee after
an annual review of the performance of Executive and Employer for the prior calendar year.

     (c)     Benefits. Executive is entitled to vacation days, paid holidays and sick days, and
to participate in Employer’s health and retirement plans, as provided in Employer’s Personnel
Policy, as such may be amended from time to time. Executive is entitled to a $750 per month car
allowance and a $400 per month allowance for club dues.

     5.     Compliance With Rules and Policies. Executive shall comply in all material respects
with all of the rules, regulations, and respective policies of Employer and ANB now or hereinafter
in effect. Executive shall promptly and faithfully do and perform any and all other duties and
responsibilities which Executive may, from time to time, be directed to do by the Board of
Directors of Employer, the Chief Executive Officer of Employer, or the President of Employer, or
their respective designee(s).

     6.     Representation of Executive. Executive represents to Employer that Executive is not
subject to any rule, regulation or agreement, including without limitation, any non-compete
agreement, that purports to, or which reasonably could be expected to, limit, restrict or interfere
with Executive’s ability to engage in the activities provided for in this Agreement. Executive
further represents that Executive has carefully read and fully understands all the provisions of
this Agreement and has had an opportunity to discuss this Agreement with Executive’s private
attorney.

     7.     Disclosure of Information. Executive acknowledges that all data, information and
documentation relating to the business of Employer (whether constituting a trade secret or not)
which is or has been disclosed to Executive or of which Executive became aware as a consequence of
or through Executive’s relationship to Employer and which has value to Employer and is not
generally known to its competitors, including without limitation information about customers and
potential customers and the business methods, sales, services, techniques, financial and business
conditions, goals and operations of Employer and ANB (collectively, “Confidential Information”),
are valuable, special and unique assets of Employer’s business. Executive will not, during
Executive’s employment and for a period of three (3) years after such employment with Employer
ends, (a) disclose any Confidential Information to any person, firm, corporation, association, or
other entity not employed by or affiliated with Employer for any reason or purpose whatsoever, or
(b) use any Confidential Information for any reason other than to further the business of Employer.
Executive agrees to return any written Confidential Information (including without limitation all
Confidential Information stored in electronic format), and all copies thereof, immediately upon the
termination of Executive’s employment for any reason (whether hereunder or otherwise). In the event
of a breach or threatened breach by Executive of the provisions of this Section 7, in addition to
all other remedies available to Employer, Employer shall be entitled to an injunction restraining
Executive from disclosing any Confidential Information or from rendering any services to any
person, firm, corporation, association or other entity to whom any Confidential Information has
been disclosed or is threatened to be disclosed.

     8.     Competition.

     (a)     During the period of Executive’s employment and, depending on the circumstances of
employment termination, for the period following the termination of Executive’s employment provided
for in Section 9 below, Executive shall not, directly or indirectly, other than on behalf of
Employer: (i) perform the

2

 

same or substantially the same job duties and responsibilities as Executive performed for Employer
(including as an organizer, director or proposed executive officer of a new financial institution)
on behalf of a business or enterprise that provides products or services that compete with
Employer’s products or services; provided, however, that this restriction is limited to the
following Georgia counties: Fulton, DeKalb, and Gwinnett (the “Territory”); (ii) solicit any
customer of Employer for the purpose of offering services or products that compete with the
services or products offered by Employer; provided, however, that following the termination of
Executive’s employment with Employer, this restriction is limited to customers with whom Executive
had business contact during the last 24 months of Executive’s employment with Employer; (iii)
solicit any director, officer or employee of Employer to leave his or her position or employment
with Employer; provided, however, that following the termination of Executive’s employment with
Employer, this restriction is limited to directors, officers and employees with whom Executive had
business contact during the last 24 months of Executive’s employment.

     (b)      Executive represents that Executive’s experience and capabilities, together with the
compensation paid by Employer and payable under this Agreement, are such that the provisions of
this Section 8 will not impose an undue hardship on Executive or prevent Executive from earning a
livelihood.

     (c)      In the event the enforceability of any of the covenants in Sections 7 or 8 is challenged
in court and Executive is not enjoined from breaching any of the covenants, then if a court of
competent jurisdiction thereafter finds that the challenged protective covenant is enforceable, the
applicable time period as to such covenant shall be deemed tolled upon the filing of the lawsuit
addressing the enforceability of Sections 7 and/or 8 until the dispute is finally resolved and all
periods of appeal have expired.

     (d)      In the event of any conduct or threatened conduct by Executive violating any provision of
this Section 8, Employer shall be entitled, in addition to other available remedies, to injunctive
relief and/or specific performance of such provision.

     (e)      Executive acknowledges that (i) Executive has occupied, and will continue to occupy, a
position of trust and confidence with Employer prior to the date hereof and has and will become
familiar with Confidential Information, including without limitation trade secrets, as that term is
defined in Georgia statutes; (ii) Executive has entered into this Agreement ancillary the sale of a
business; therefore, the parties agree and expect that the “sale of the business” standard for
non-compete agreements that has been established under Georgia law will apply to the interpretation
and enforcement of Sections 7 and 8; (iii) ANB has required that Executive make the covenants set
forth in Sections 7 and 8 of this Agreement as a material condition to Employer’s employment of
Executive and ANB’s acquisition of the capital stock of Employer’s parent holding company,
including any capital stock owned by Executive; (iv) the provisions of Sections 7 and 8 of this
Agreement are reasonable in geographic scope, duration, and scope and are necessary to protect and
preserve Employer’s legitimate business interests, including, without limitation, its trade
secrets, valuable confidential business information, relationships with specific prospective and
existing customers, customer goodwill, and specialized training provided to Executive; and (v)
Employer would be irreparably damaged if Executive were to breach the covenants set forth in
Sections 7 or 8 of this Agreement.

     9.     Termination of Employment.

     (a)      Employer may terminate Executive’s employment prior to the expiration of the Agreement
Term “For Cause.” In such event, all rights and obligations specified in Section 8(a) shall survive
any such termination until the expiration of the Agreement Term, and Executive shall not be
entitled to any further compensation or benefits from Employer under this Agreement or otherwise,
except as provided pursuant to the express terms of any employee benefit plan in which Executive is
a participant as of the effective date of such

3

 

termination of employment; provided, however, that the rights and obligations in Section 8(a) shall
not extend past the 2nd anniversary of the termination date of Executive’s employment
unless Employer makes payments to Executive based on the base salary amount set forth in Section
4(a) above (to be paid with the same frequency as Executive’s salary was paid prior to termination)
during the period beginning on the 2nd anniversary of the termination date of
Executive’s employment and ending upon the expiration of the rights and obligations in Section 8(a)
as provided for in this Section 9(a) above. Subject to Section 8(c), the rights and obligations
specified in Section 8(a) shall not extend past the expiration of the Agreement Term. “For Cause”
means (i) abuse of or addiction to intoxicating drugs (including alcohol); (ii) any act or omission
on the part of Executive which constitutes fraud, misrepresentation, embezzlement, misappropriation
of corporate assets, breach of a duty owed to Employer, or conduct grossly inappropriate to
Executive’s office; (iii) indictment or conviction of a felony or a crime of moral turpitude; (iv)
the suspension or removal of Executive by federal or state banking regulatory authorities; or (v) a
breach by Executive of any of the material terms of this Agreement. In addition, the services of
Executive and the obligations of Employer under this Agreement may be terminated For Cause by
Employer due to the death or total disability of Executive. For purposes of this Section 9, the
term “total disability” means Executive’s inability, as a result of illness or injury, to perform
the essential functions of Executive’s job, with or without a reasonable accommodation, for a
reasonable period of time, which the parties generally anticipate would be one hundred eighty (180)
consecutive days.

     (b)      Employer may terminate Executive’s employment at any time prior to the expiration of the
Agreement Term for any reason other than “For Cause”; provided, however, if Employer terminates
Executive other than For Cause, or if Executive terminates employment for “Good Reason” (as defined
below): (i) Executive shall continue to receive the amount of Executive’s then current base salary
until the expiration of the Agreement Term (to be paid with the same frequency as Executive’s
salary was paid prior to termination) as if Executive’s employment had continued during such
period; and (ii) all rights and obligations specified in Section 8(a) shall survive such
termination until the expiration of the Agreement Term. Subject to Section 8(c), the rights and
obligations specified in Section 8(a) shall not extend past the expiration of the Agreement Term.
Other than the payments and benefits provided for in this Section 9(b), and except as provided
pursuant to the express terms of any employee benefit plan in which Executive is a participant as
of the effective date of such termination of employment, Executive acknowledges that Executive
shall not be entitled to any other payments, benefits or damages from Employer under this Agreement
or otherwise in connection with a termination of Executive by Employer other than For Cause or a
termination by Executive for Good Reason, and Executive hereby waives all rights and claims with
respect thereto. “Good Reason” means a material breach of this Agreement by Employer, after
Executive has provided written notice of such breach to Employer within 30 days, and Employer has
been afforded at least 30 days to remedy such breach from the date such notice is received by
Employer.

     (c)      If Executive resigns or terminates Executive’s employment hereunder for any reason (other
than Good Reason) prior to the expiration of the Agreement Term, (i) Executive must provide at
least 30 days prior written notice of such resignation or termination, (ii) all rights and
obligations specified in Section 8(a) shall survive any such termination until the expiration of
the Agreement Term; provided, however, that the rights and obligations in Section 8(a) shall not
extend past the 2nd anniversary of the termination date of Executive’s employment unless
Employer, at its sole option and election, makes payments to Executive based on the base salary
amount set forth in Section 4(a) above (to be paid with the same frequency as Executive’s salary
was paid prior to termination) during the period beginning on the 2nd anniversary of the
termination date of Executive’s employment and ending upon the expiration of the rights and
obligations in Section 8(a) as provided for in this Section 9(c) above; provided, further, that
subject to Section 8(c), the rights and obligations specified in Section 8(a) shall not extend past
the expiration of the Agreement Term, (iii) Executive shall not be entitled to any further
compensation or benefits from Employer under this Agreement or otherwise (except for any period
beyond the 2nd anniversary of the termination date as described in subsection (ii)
hereof, and

4

 

except as provided pursuant to the express terms of any employee benefit plan in which Executive is
a participant as of the effective date of such termination of employment), and (iv) Employer shall
be entitled to all remedies available under this Agreement and applicable law. Upon receipt of any
such notice of termination, Employer may elect, at its sole option, to have Executive’s resignation
or termination effective immediately. Notwithstanding the foregoing, if after the occurrence of a
Change in Control (as defined below), (A) Executive is assigned duties materially inconsistent with
Executive’s authorities, duties and responsibilities as in effect immediately prior to such Change
in Control, and (B) Executive thereafter voluntarily terminates employment hereunder, the rights
and obligations specified in Section 8(a) shall terminate and shall not survive any such
termination of employment. “Change in Control” means (1) any transaction, whether by merger,
consolidation, tender offer or otherwise, which results in the acquisition of beneficial ownership
(as such term is defined under rules and regulations promulgated under the Securities Exchange Act
of 1934, as amended) by any person or entity or any group of persons or entities acting in concert,
of 50% or more of the outstanding shares of common stock of ANB; or (2) the sale of all or
substantially all of the assets of ANB.

     (d)      If Executive’s employment does not terminate prior to the expiration of the Agreement Term
and is not renewed, extended or continued on an “at will” basis but, rather, terminates upon the
natural expiration of the Agreement Term, then the restrictive covenants in Section 8(a) shall not
apply following the expiration of the Agreement Term; provided, however, at Employer’s sole option
and election, Employer may continue to make payments of Executive’s then current base salary and,
in such event, the restrictive covenants in Section 8(a) shall last for so long as such payments
are being made, but not past the first (1st) anniversary of the expiration of the Agreement Term.

     10.      Notice. For the purposes of this Agreement, notices and demands shall be deemed
given when mailed by United States mail, addressed in the case of Employer to The Peachtree Bank,
9570 Medlock Bridge Road, Duluth, Georgia 30097, Attention: Chief Executive Officer, with a copy to
ANB at Alabama National BanCorporation, 1927 First Avenue North, Birmingham, Alabama 35203,
Attention: Chief Executive Officer; or in the case of Executive, to Executive’s last known address
of record contained in Employer’s personnel files.

     11.      Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in writing. The validity,
interpretation, construction and performance of this Agreement shall be governed by Title 9 of the
U.S. Code and the laws of the State of Georgia without regard to principles of conflicts of laws.

     12.      Validity. Should any court of competent jurisdiction, arbitrator or other judicial
body decide, hold, adjudge or decree that any provision, clause or term of this Agreement is
invalid, void or unenforceable, such determination shall not affect any other provision of this
Agreement, and all other provisions of this Agreement shall remain in full force and effect as if
such void or unenforceable provision, clause or term had not been included herein. Such
determination shall not be deemed to affect the validity or enforceability of this entire Agreement
in any other situation or circumstance, and the parties agree that the scope of this Agreement is
intended to extend to Employer the maximum protection permitted by law. The parties expressly deem
the scope, length of time and the size of the Territory provided for in Sections 7 and 8 of this
Agreement to be reasonable. If, however, any judicial body or arbitrator decides, holds, adjudges
or decrees that the scope, length of time and/or the size of the Territory provided for in Section
7 and/or 8 of this Agreement is/are unreasonable, then it is the express intent of the parties that
such court determine the scope, length of time and/or size of the territory that is/are reasonable
and that such court enforce the terms of this Agreement in accordance with such determination.

5

 

     13.      Arbitration.

     (a)      Except as otherwise provided herein, any dispute or controversy arising under or in
connection with this Agreement or Executive’s employment, between Executive and Employer, ANB or
any of Employer’s or ANB’s officers, directors, agents or employees, shall be settled exclusively
by arbitration in Atlanta, Georgia, in accordance with the rules of the American Arbitration
Association then in effect. The agreement set forth herein to arbitrate shall be specifically
enforceable under the prevailing arbitration law. There are two exceptions to this mandatory
arbitration provision. First, Employer shall have the right to seek enforcement by temporary
restraining order and preliminary/interlocutory injunction, specific performance or other equitable
relief of the provisions of Section 7 and/or 8 hereof. Second, Executive shall have the right to
enforce any right to compensation due to him under this Agreement in any state or federal court of
competent jurisdiction without regard to whether any such claim has been or can be referred to
arbitration.

     (b)      The parties hereto (i) acknowledge that they have read and understood the provisions of
this Section regarding arbitration and (ii) that performance of this Agreement will be incident to
interstate commerce as that term is used in the Federal Arbitration Act (“FAA”), and the parties
contemplate substantial interstate activity in the performance of this Agreement including, but not
limited to, interstate travel, the use of interstate phone lines, the use of the U.S. mail
services, the use of the internet, the use of email, and other interstate courier services.
Consequently, the FAA shall interpret, govern and control any arbitration hereunder.

     (c)      Notice of the demand for arbitration shall be filed in writing with the other party to
this Agreement and with the American Arbitration Association. The demand for arbitration shall be
made within a reasonable time after the claim, dispute or other matter in question has arisen, and
in no event shall it be made after the date when institution of legal or equitable proceedings
based on such claim, dispute or other matter in question would be barred by the applicable statute
of limitations. The award rendered by the arbitrator shall be final and judgment may be entered
upon it in accordance with applicable law in any court having jurisdiction thereof.

     14.      Parties. This Agreement shall be binding upon and shall inure to the benefit of
any successors or assigns of Employer and/or ANB. Employer may assign this Agreement without the
consent of Executive, and Employer’s successors and assigns may enforce any and all terms and
conditions of this Agreement, including but not limited to the confidentiality, non-competition and
non-solicitation provisions contained in this Agreement. This Agreement shall be binding upon
Executive’s heirs, estate and personal representative, and Executive may not assign any of
Executive’s rights or delegate any of Executive’s duties or obligations under this Agreement or any
portion hereof.

     15.      Waiver of Claims. In consideration of the obligations of Employer hereunder,
Executive acknowledges that, at the request and election of Employer, as a condition precedent to
receiving any severance payments or benefits from Employer otherwise payable hereunder, Executive
will be required to execute and deliver a release whereby Executive unconditionally releases
Employer, its directors, officers, employees, agents and shareholders, from any and all claims,
liabilities and obligations of any nature pertaining to the termination of Executive’s employment
by Employer for any reason, including but not limited to (a) any claims under federal, state or
local laws prohibiting discrimination, including without limitation the Age Discrimination in
Employment Act of 1967, as amended, or (b) any claims growing out of any alleged legal restrictions
on Employer’s right to terminate Executive’s employment, such as any alleged implied contract of
employment or termination contrary to public policy.

6

 

     16.      Taxes; Withholding.

     (a)      Executive shall be solely responsible for the payment of all income and other taxes in
connection with any and all payments received from Employer or made by Employer on Executive’s
behalf. All amounts payable pursuant to this Agreement, including without limitation severance
compensation, shall be subject to reduction by all applicable withholding, social security and
other federal, state and local taxes and deductions.

     (b)      If, in the reasonable estimation of Employer and/or its tax advisors, any payment or
benefit received or to be received by Executive, whether pursuant to the terms of this Agreement or
any other plan, arrangement or agreement with Employer or its affiliates (collectively the “Total
Payments”) would not be deductible (in whole or in part) as a result of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), by Employer or its affiliates, the parties
hereby agree, to the extent possible, to take all action and execute all documents necessary to
insure that none of the payments made to Executive shall be treated as “parachute payments” for the
purposes of disallowance of deductions under Section 280G; provided, however, that to the extent
the foregoing is not possible, payments or benefits shall be so reduced until no portion of the
Total Payments is not deductible by Employer (or its affiliate, as the case may be). Executive
shall be entitled to elect which payments or benefits shall be so reduced.

     17.      Survival. The rights, obligations, agreements and provisions contained in Sections
7 through 20 of this Agreement shall survive the termination of Executive’s employment for any
reason and/or the expiration of the Agreement Term.

     18.      American Jobs Creation Act of 2004. To the extent the American Jobs Creation Act
of 2004, as amended, and the regulations thereunder (collectively, the “Act”) apply to any payment
to be made to Executive hereunder, the parties’ intent is that such payment, unless expressly
provided otherwise (such as in the case of severance payments) or unless deferred pursuant to the
terms of a written deferred compensation plan maintained by Employer or one of its affiliates, will
be paid no later than (a) 21/2 months after the end of Executive’s first taxable year in which the
amount is no longer subject to a “substantial risk of forfeiture” or (b) 21/2 months after the end of
Executive’s first taxable year in which the amount is no longer subject to a “substantial risk of
forfeiture.” The purpose of this provision is to reflect the parties’ desire and intent to comply
with the Act, to the extent applicable.

     19.      Entire Agreement; Reinstatement. This Agreement supersedes and cancels any prior
employment agreement, change in control agreement or understanding entered into between Executive
and Employer and/or The PB Financial Services Corporation (“PBF”). Executive acknowledges and
agrees that, except as provided for in Section 19 above, Executive is not eligible to receive any
change in control or similar payment from either Employer, PBF or ANB, and Executive waives all
rights thereto. Notwithstanding the foregoing, the parties acknowledge that this Agreement has been
entered into as a condition to, but prior the consummation of, the transactions provided for in the
Merger Agreement. If the Merger Agreement is terminated pursuant to the terms thereof, then this
Agreement shall simultaneously and automatically terminate as well, without any further action on
the part of the parties hereto, both parties shall be released of their respective obligations
hereunder (including without limitation Employer’s obligation to pay the Stay Bonus), and
Executive’s employment by Employer shall revert to the status in effect immediately prior to the
execution of this Agreement.

7

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by Executive and by a
duly authorized officer of Employer as of the date first above written.

	 	 	 	 	 
	 	“Employer”:

The Peachtree Bank
	 
	 
	 
	 	By:  	 
	 
	 	Name:  	 
	 
	 	Its:  	 
	 
	 
	 	“Executive”:	 
	 

	 	 	 	 	 
	 
	 	 
	Witness
	 	Jim Olson
	 
	 	 
	 
	 	 
	Witness
	 	 

8Amended and Restated Employment Agreement

 

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of July 13, 2006 (the “Commencement Date”)
by and between Ladenburg Thalmann Financial Services Inc. (the “Company”), Ladenburg Thalmann & Co.
Inc. (“Ladenburg”) and Mark D. Klein (“Employee”).

     WHEREAS, Employee has served as the Company’s President and Chief Executive Officer and as
Chairman and Chief Executive Officer of Ladenburg, pursuant to an Employment Agreement, dated as of
March 4, 2005 (the “Prior Employment Agreement”); and

     WHEREAS, the Company and Employee desire to amend and restate the Prior Employment Agreement
(as so amended and restated, this “Agreement”) to provide for continued employment of Employee by
Ladenburg for the period and upon the terms and conditions set forth herein;

     IN CONSIDERATION of the premises and the mutual covenants set forth below, the parties hereby
agree as follows:

     1. Employment. The Employee shall be employed as the Chairman of Ladenburg, and
Employee hereby accepts such employment, on the terms and conditions hereinafter set forth.

     2. Term. The period of employment of Employee by Ladenburg under this Agreement (the
“Employment Period”) shall commence on the Commencement Date and shall continue through March 31,
2007; provided, that, on April 1, 2007 and on each anniversary thereafter, the
Employment Period shall automatically be extended for one (1) additional year unless either party
gives written notice to the other party not to extend this Agreement at least sixty (60) days prior
to the end of the Employment Period. The Employment Period may be sooner terminated by either
party in accordance with Section 6 of this Agreement.

     3. Position and Duties. During the Employment Period, Employee shall serve as
Chairman of Ladenburg which position shall not be a director, corporate officer or executive
position. Additionally, while requested by the Board of Directors of the Company, Employee shall
continue to serve as President and Chief Executive Officer of the Company during a reasonable
transition period until the Company’s relocation of its corporate offices to Florida, but in no
event, after August 31, 2006. Employee shall not thereafter serve as an officer, director or
employee of the Company. During the Employment Period, Employee shall report solely and directly
to the Board of Directors of Ladenburg (the “Board”) and the Company’s Board of Directors and Chief
Executive Officer. Employee shall have such powers and duties as set forth in this Agreement.
When no longer serving as President and Chief Executive Officer of the Company, Employee’s duties
and responsibilities shall not include any supervisory responsibilities for Ladenburg or the
Company or any of their operations or employees and his responsibilities shall solely be those
specified in this Agreement. Employee shall devote his full business time to satisfactorily
perform his duties and responsibilities hereunder; provided,

 

 

however, there shall be no required minimum amount of time Employee must devote to
performing his duties and responsibilities under this Agreement. Notwithstanding the above,
Employee shall be permitted, to the extent such activities do not substantially interfere with the
performance by Employee of his duties and responsibilities hereunder, to (i) manage Employee’s
personal, financial and legal affairs, and (ii) to serve on civic or charitable boards or
committees (it being expressly understood and agreed that Employee’s continuing to serve on any
such board and/or committees on which Employee is serving, or with which Employee is otherwise
associated, as of the Commencement Date, (all of which are listed on Schedule A hereto), shall be
deemed not to interfere with the performance by Employee of his duties and responsibilities under
this Agreement). Additionally, upon approval by the Company’s Executive Committee (which such
approval shall not be unreasonably withheld or delayed), Employee shall be permitted to engage in
various other outside activities. The following outside activities have already been approved by
the Executive Committee: a) acting as a principal in one or more “specified purpose acquisition
companies,” blank check companies or similar entities (the “SPAC” or “SPACs”) related to the
financial services industry; b) acting as a principal involved in the organization, funding,
management and related matters with respect to a private investment fund; and c) acting as a
director of a public company that is not in direct competition with Ladenburg. It shall be deemed
unreasonable for the Executive Committee to withhold approval for any type of activity that it has
already approved for other employees of Ladenburg or the Company and is permitted by the rules of
the National Association of Securities Dealers, Inc. (“NASD”) and the New York Stock Exchange. Any
compensation of any kind received by Employee with respect to any of his outside activities
permitted by this Section 3 shall not in any way inure to the benefit of Ladenburg or the Company
and therefore will not reduce any payments owed by the Company or Ladenburg to Employee under this
Agreement or otherwise.

     Employee shall give Ladenburg the opportunity to lead underwrite the SPAC or SPACs but only
if: a) Ladenburg communicates a determination to do so on customary terms (except that compensation
terms will be subject to compliance with the NASD compensation requirements) within ten business
days of being presented the opportunity and b) Ladenburg is able to do so in compliance with all
regulatory requirements.

     4. Place of Performance. Unless Employee determines otherwise in consultation with
Ladenburg, the principal place of employment of Employee shall be at Ladenburg’s principal
executive offices in Manhattan, New York. Notwithstanding the foregoing, Employee at his sole
discretion, may perform his duties and responsibilities from a location other than Ladenburg’s
offices.

     5. Compensation and Related Matters.

          (a) During the Employment Period, Employee shall be entitled to the following compensation:

               (i) Kramer Group Fees. Employee shall be paid 85% of the “Total Revenues” earned by
the individuals (collectively, the “Kramer Group”) listed on Schedule B attached hereto (“Kramer
Group Fees”), less 100% of the “Total Expenses” incurred by the Kramer Group, using the same
methodologies and assumptions particularly with respect to revenues and expenses as were used in
preparing the income statement for the Kramer Group for

2

 

the month ended April 30, 2006 attached as Exhibit A. “Total Revenues” shall mean gross
revenues generated by the Kramer Group (including asset management fees, commissions, interest and
dividend income and other income, and including such types of revenues generated by Employee as
well). “Total Expenses” of the Kramer Group shall include variable, operating and producers’
compensation, and all travel and entertainment expenses of Employee to the extent relating to the
asset management business. If the Kramer Group is relocated, or is relocated based on Employee’s
decision after consultation with Ladenburg, to offices outside of Ladenburg’s Manhattan, New York
office, then such percentage of Total Revenues shall be increased from 85% to 90%. Kramer Group
shall (i) receive only a 50% payout on commissions relating to clients of the Kramer Group
participating in Ladenburg’s “LAMP” product, (ii) not receive more than a 65% payout on asset
management fees and commissions and (iii) not receive any payout on any other revenues, including
interest and dividend income. LAMP revenues and related payments to the Kramer Group shall be
excluded from Total Revenues and Total Expenses.

               (ii) Investment Banking Fees. Employee shall be paid 10% of the “net cash fees” and
equity securities, including underwriter warrants, paid and/or issued to Ladenburg on investment
banking transactions or assignments (which include, but are not limited to, corporate financing
transactions and financial advisory assignments) (“Investment Banking Transactions”) introduced to
Ladenburg by Employee (“Investment Banking Fees”), which shall include, but not be limited to, the
transactions (including transactions related to the listed persons or transactions) listed on
Schedule C. The term “net cash fees” shall mean cash fees paid to Ladenburg (including sales
credits) less (i) direct expenses (including legal, road show, interest paid by Ladenburg or the
Company on capital used in the transaction and underwriting stabilization losses, if any) and (ii)
payments made by Ladenburg to other underwriters and selected dealers in the Investment Banking
Transaction. “Net cash fees” shall include any (a) fees paid to Ladenburg upon closing of any
Investment Banking Transaction and (b) any deferred fees (“Deferred Fees”) paid to Ladenburg after
the closing of any such Investment Banking Transaction (e.g., deferred commissions in a “SPAC”
IPO), provided that with respect to both (a) and (b), the closing of such Investment Banking
Transaction is (x) while Employee is employed by Ladenburg or the Company or (y) within one year
from the date of termination if such termination was prior to March 31, 2007 and such termination
was by Ladenburg or the Company without “Cause,” as a result of Employee’s “Death” or “Disability”
or if Employee resigned for “Good Reason” (as such terms are defined herein) or (z) within one year
from the date of termination if such termination was on or after March 31, 2007 and such
termination was for any reason other than by Ladenburg for “Cause” (including upon termination of
the Employment Period without renewal under Section 2). When the term “closing” is used in the
preceding sentence, such term shall be deemed to include (i) the completion of any milestone in an
assignment where such completion would trigger fees being owed to Ladenburg and (ii) with respect
to an Investment Banking Transaction that contemplates Deferred Fees, the closing of the securities
offering. To the extent that Ladenburg is required to pay finders and similar fees to persons
other than Employee in connection with any such Investment Banking Transaction, payments to
Employee shall be reduced to the extent of such other payments. With respect to underwriter
warrants and other equity securities issued to Ladenburg in connection with any such Investment
Banking Transaction, Employee’s share shall be transferred to Employee only if permitted by, and in
compliance with, the rules of the NASD. Employee shall not be entitled to

3

 

participate in Ladenburg’s “Investment Banking Compensation Plan (effective April 17, 2006).”
For purposes of this subsection, Ladenburg shall include any affiliate.

          (b) Payments. Solely for the 12-month period ending March 31, 2007, Employee shall be
guaranteed to be paid at least $41,666.66 per semi-monthly payroll period (“Guaranteed Amount(s)”),
for an aggregate of $1,000,000. To the extent earned, payments shall be made to Employee as
follows: (A) with respect to Kramer Group Fees, Employee shall be paid within 30 days after the
month in which such fees are earned; and (B) with respect to Investment Banking Fees, Employee
shall be paid within 15 days after the end of each calendar quarter, with respect to all fees
actually paid to Ladenburg in such quarter. All payments shall be accompanied by a detailed
explanation of the fees owed and paid to Employee, which explanation shall be deemed final unless
objected to in writing by Employee within 10 business days from the date of receipt of such
explanation. For any semi-monthly payroll period during the Employment Period ending March 31,
2007: to the extent that the total Kramer Group Fees and Investment Banking Fees (as well as any
other salary payments made to Employee for the period from April 1, 2006 to the Commencement Date)
paid to Employee does not equal the Guaranteed Amount for a semi-monthly payroll period multiplied
by the number of semi-monthly payroll periods from April 1, 2006 up to and including such time,
Employee shall be paid the difference (hereinafter referred to as an “Additional Amount” and, if
referring to such amounts on a cumulative basis (which shall take into account amounts credited
against the Guaranteed Amounts as set forth in this sentence), “Cumulative Additional Amount”)
between all amounts previously paid and such unpaid Guaranteed Amount; and, to the extent that the
total Kramer Group Fees and Investment Banking Fees (as well as any other salary payments made to
Employee for the period from April 1, 2006 to the Commencement Date) paid to Employee exceeds the
Guaranteed Amount for a semi-monthly payroll period multiplied by the number of semi-monthly
payroll periods up to and including such time, such excess shall be credited against Guaranteed
Amounts for subsequent semi-monthly payroll periods. If Ladenburg has paid a Cumulative Additional
Amount and Deferred Fees with respect to a transaction closing on or before June 30, 2007 are
subsequently paid to Ladenburg which results in Investment Banking Fees being owed to Employee,
such Investment Banking Fees will be reduced by the Cumulative Additional Amount paid to Employee.
If Ladenburg has paid a Cumulative Additional Amount and Investment Banking Fees are subsequently
owed to Employee with respect to a transaction closing on or before June 30, 2007, such Investment
Banking Fees will be reduced by the Cumulative Additional Amount paid to Employee. For purposes of
clarification, any Investment Banking Fees owed with respect to transactions closing after June 30,
2007 shall not be reduced by any Cumulative Additional Amount paid to Employee.

          (c) Expenses. Ladenburg shall promptly reimburse Employee for all reasonable
out-of-pocket business expenses incurred by Employee in performing his duties hereunder upon the
presentation of reasonably itemized statements of such expenses in accordance with Ladenburg’s or
the Company’s policies and procedures now in force or as such policies and procedures may be
modified with respect to all senior executive officers of Ladenburg or the Company. Ladenburg
shall also pay all expenses related to Employee’s one Bloomberg machine, his cell phone and
BlackBerry device which, as with all expenses not related to the Kramer Group, will not be included
in Total Expenses in Section 5(a)(i).

4

 

          (d) Vacation. Employee shall be entitled to five (5) weeks vacation annually
commencing with the twelve (12) month period commencing on the date Employee is no longer President
and Chief Executive Officer of the Company. Employee acknowledges and agrees that (i) any amounts
that may have been owed to him for all prior accrued and unused vacation is hereby waived and (ii)
vacation days may not be carried forward from year to year. In addition to vacation, Employee
shall be entitled to the number of sick days and personal days per year that senior executive
officers of Ladenburg or the Company are entitled under Ladenburg’s or the Company’s policies.

          (e) Services Furnished. Unless otherwise consented to by Employee (which consent will
not be unreasonably withheld), during the Employment Period, Ladenburg shall furnish Employee and
the Kramer Group with the same office space that they had on the date hereof and such other similar
facilities and services on a basis that is reasonably determined by Employee.

          (f) Director and Officer Liability Insurance. On March 4, 2005, the Company entered
into an indemnification agreement with Employee. Such agreement remains in full force and effect
in accordance with its terms and once Employee is no longer a director or President and Chief
Executive Officer of the Company, the indemnification agreement shall be deemed to cover Employee
as an employee of Ladenburg (and therefore require indemnification by Ladenburg or the Company to
Employee) and remain in full force and effect until Employee ceases to be an employee of the
Company or Ladenburg. Additionally, during the Employment Period, the Company shall use its
commercially reasonable efforts to obtain and maintain adequate officer and director liability
insurance in such amounts as the Board shall so determine (which in no event shall be less than
$5,000,000) (provided the Company shall not be required to expend on an annual basis more than 125%
of the amount expended in 2004 for such coverage). Employee shall be covered at all times by such
policy in all of his capacities with Ladenburg. In addition, for a period of six (6) years after
the Date of Termination, the Company shall use its commercially reasonable efforts to maintain in
effect one or more policies of directors’ and officers’ liability insurance with respect to any
claim, action, suit, proceeding or investigation arising from facts or events which occurred during
the Employee’s employment and such policy or policies shall be with a carrier or carriers
reasonably satisfactory to the parties intended to be benefited thereby and with limits,
exclusions, deductibles, and other characteristics no less favorable than those in place on the
date Employee ceased being an employee of Ladenburg (provided the Company shall not be required to
expend on an annual basis more than 125% of the amount expended in 2004 for such coverage). Any
and all such policies shall be issued by leading insurance carriers and shall otherwise be in form
and substance reasonably satisfactory to those persons who are officers and directors of the
Company as of the date hereof. The provisions of this clause (f) shall survive termination of this
Agreement and/or any termination of Employee’s employment.

          (g) Welfare, Pension and Employee Benefit Plans. During the Employment Period,
Employee (and his spouse and dependents to the extent provided therein) shall be entitled to
participate in and be covered under all the welfare benefit plans or programs maintained by
Ladenburg or the Company from time to time for the benefit of their senior executives including,
without limitation, all medical, hospitalization, dental, disability, accidental death and

5

 

dismemberment and travel accident insurance plans and programs. Ladenburg shall at all times
provide to Employee (and his spouse and dependents to the extent provided under the applicable
plans or programs) (subject to modifications affecting all senior executive officers of Ladenburg
or the Company) the same type and levels of participation and benefits as are being provided to
senior executives of Ladenburg or the Company (and their spouses and dependents to the extent
provided under the applicable plans or programs) on the Commencement Date. In addition, during the
Employment Period, Employee shall be eligible to participate in all pension, retirement, savings
and other employee benefit plans and programs maintained from time to time by Ladenburg or the
Company for the benefit of the senior executive officers of Ladenburg or the Company. During the
Employment Period, upon submission by Employee to a physical, the Company shall maintain a term
life insurance policy for the benefit of Employee which provides for a death benefit of at least
$2,000,000. Employee represents that he is no worse than a “standard risk” for an insured party.
Notwithstanding anything to the contrary in this Agreement, in no event will Employee’s benefits as
they existed on the day prior to the Commencement Date (except with respect to disability insurance
benefits) be reduced or diminished.

          (h) Stock Options. On March 4, 2005, the Company granted to Employee a stock option
to purchase 5,000,000 shares of Company common stock (the “Option”) at an exercise price per share
equal to $.465 pursuant to the terms of the option agreement dated March 4, 2005, as amended on
March 20, 2006 (as “Option Agreement”). The Option Agreement remains in full force and effect in
accordance with its terms.

               (i) Vesting. Subject to the terms of the Option Agreement, the Option shall vest as
follows: (a) 500,000 shares vested on March 4, 2005; (b) 1,125,000 shares vested on March 4, 2006;
and (c) 1,125,000 shares shall vest on each of March 4, 2007, 2008 and 2009.

               (ii) Adjustment. The Option shall be subject to adjustment for stock splits, stock
dividends and similar transactions to preserve the economic intent of such grant.

               (iii) Term of Option. Subject to the terms of the Option Agreement, the Option shall
remain in effect for ten years from March 4, 2005.

               (iv) Treatment of Option upon Termination of Employment. In the event that Employee’s
employment is terminated by reason of his death, Disability (as defined below), by the Company
without Cause (as defined below) or by Employee for Good Reason (as defined below), all unvested
Options that would have vested had Employee remained employed for the remainder of the then current
Employment Period shall immediately vest and all outstanding Options shall remain exercisable for a
period of one (1) year following Employee’s termination of employment, but not beyond their term.

               (v) Treatment of Option upon Change in Control. In the event of a Change in Control
(as defined herein), Employee’s Options shall immediately vest and become exercisable and remain
exercisable for the remainder of the term of the Option.

6

 

               (vi) Securities Exchange Commission (the “SEC”) Registration. The Company has filed a
registration statement with the SEC covering the common stock issuable upon exercise of the Option
and the re-sale of the shares subject to such Option, as well as the Purchased Shares (defined
below).

          (i) Sale of Shares. On March 4, 2005, the Company entered into a subscription
agreement (“Subscription Agreement”) pursuant to which Employee purchased 2,222,222 shares of
Company common stock (“Purchased Shares”) at $.45 per share. The Subscription Agreement remains in
full force and effect in accordance with its terms.

          (j) Legal Expenses. The Company will pay up to $20,000 of reasonable legal fees and
expenses incurred by Employee in connection with the negotiation and preparation of this Agreement
and any agreements related thereto, upon presentation of invoices without detail from Akin Gump
with respect thereto.

     6. Termination. Employee’s employment hereunder may be terminated during the
Employment Period under the following circumstances:

          (a) Death. Employee’s employment hereunder shall terminate upon his death.

          (b) Disability. If, as a result of Employee’s incapacity due to physical or mental
illness, Employee shall have been substantially unable to perform his normal duties hereunder for
an entire period of six (6) consecutive months, and within thirty (30) days after written Notice of
Termination is given after such six (6) month period, Employee shall not have returned to the
substantial performance of his duties on a full-time basis, Ladenburg shall have the right to
terminate Employee’s employment hereunder for “Disability”, and such termination in and of itself
shall not be, nor shall it be deemed to be, a breach of this Agreement.

          (c) Cause. The Company and Ladenburg shall have the right to terminate Employee’s
employment for Cause, and such termination in and of itself shall not be, nor shall it be deemed to
be, a breach of this Agreement. For purposes of this Agreement, the Company and Ladenburg shall
have “Cause” to terminate Employee’s employment upon Employee’s: (i) conviction of a felony, (ii)
alcoholism or drug addiction which materially impairs his ability to perform his duties hereunder,
(iii) continued, intentional and willful failure to substantially and materially perform his
material duties hereunder (other than absences due to illness or vacation) after the Board provides
Employee a written notice specifically identifying the manner in which Employee has failed to
materially perform his duties and Employee has not cured such failure within 30 days of such
notice, or (iv) willful and deliberate misconduct that results, or is reasonably likely to result,
in material and demonstrative harm to the Company, Ladenburg or any of their respective
subsidiaries or Affiliates.

For purposes of this Section 6(c), no act, or failure to act, by Employee shall be considered
“willful” unless committed in bad faith and without a reasonable belief that the act or omission
was in the best interests of the Company or any entity in control of, controlled by or under common
control with the Company (“Affiliates”) thereof. Cause shall not exist under clause (iii) unless
and until the Board determines that Employee was guilty of the conduct set forth in

7

 

clause (iii). This Section 6(c) shall not prevent Employee from challenging in any arbitration or court
of competent jurisdiction the Board’s determination that Cause exists or that Employee has failed
to cure any act (or failure to act) that purportedly formed the basis for the Board’s
determination.

          (d) Good Reason. Employee may terminate his employment for “Good Reason” any time
after Employee has actual knowledge of the occurrence, without the written consent of Employee, of
one of the following events:

     (i) (A) any change or diminution in the duties, responsibilities, position or title
(including reporting responsibilities) of Employee that is inconsistent in any material
adverse respect with Employee’s duties, responsibilities, position or title under this
Agreement (including any diminution of such duties or responsibilities) or (B) a material
adverse change in Employee’s title with Ladenburg;

     (ii) a failure by Ladenburg to make any payments hereunder, including Guaranteed
Amounts pursuant to Section 5(b) hereof;

     (iii) the relocation by Ladenburg of Employee’s own office location to a location
outside of Manhattan, New York;

     (iv) the Company’s or any Affiliate’s failure to provide in all material respects the
indemnification set forth in the Indemnification Agreement entered into by the Company and
Employee on March 4, 2005;

     (v) a Change in Control of the Company, provided, that Employee must
provide Notice of Termination within 90 days of such Change of Control;

     (vi) the failure of the Company to obtain the assumption agreement from any successor
as contemplated in Section 12(a); or

     (vii) any other breach of a material provision of this Agreement by the Company,
Ladenburg or any Affiliate after written notice from Employee specifically identifying the
breach and such breach has not been cured within 30 days of such notice.

Solely for purposes of clarification, Good Reason shall not include Employee no longer serving as
President and Chief Executive Officer of the Company. Employee’s continued employment shall not
constitute consent to, or a waiver of rights with respect to, any event or condition constituting
Good Reason.

          (e) Without Cause. The Company and Ladenburg shall have the right to terminate
Employee’s employment hereunder without Cause by providing Employee with a Notice of Termination,
and such termination shall not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.

          (f) Without Good Reason. Employee shall have the right to terminate his employment
hereunder without Good Reason by providing the Company and Ladenburg with a

8

 

Notice of Termination at least thirty (30) days prior to such termination, and such
termination shall not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.

For purposes of this Agreement, a “Change in Control” of the Company means the occurrence of one of
the following events: (i) consummation of a reorganization, merger or consolidation, sale,
disposition of all or substantially all of the assets or stock of the Company or any other similar
corporate event (a “Business Combination”), in each case, unless, following such Business
Combination, all or substantially all of the individuals or entities who were the beneficial
owners, respectively, of the voting securities of the Company entitled to vote generally in the
election of directors immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries); or (ii) Board approval of a complete dissolution or liquidation
of the Company; or (iii) any “person” (as such term is defined in Section 3(a)(9) of the Securities
Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the
Exchange Act), other than Dr. Phillip Frost, any member of his immediate family, and any “person”
or “group” (as used in Section 13(d)(3) of the Exchange Act) that is controlled by Dr. Frost or any
member of his immediate family, any beneficiary of the estate of Dr. Frost, or any trust,
partnership, corporation or other entity controlled by any of the foregoing, is or becomes, after
the Commencement Date, a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 35% or more of the combined
voting power of the Company’s then outstanding securities eligible to vote for the election of the
Board.

     7. Termination Procedure.

          (a) Notice of Termination. Any termination of Employee’s employment by the Company,
Ladenburg or by Employee during the Employment Period (other than termination pursuant to Section
6(a)) shall be communicated by written Notice of Termination to the other parties hereto in
accordance with Section 13. For purposes of this Agreement, a “Notice of Termination” shall mean a
notice which shall indicate the specific termination provision in this Agreement relied upon and
shall set forth (other than termination pursuant to Sections 6(e) or 6(f)) in reasonable detail the
facts and circumstances claimed to provide a basis for termination of Employee’s employment under
the provision so indicated.

          (b) Date of Termination. “Date of Termination” shall mean (i) if Employee’s
employment is terminated by his death, the date of his death, (ii) if Employee’s employment is
terminated pursuant to Section 6(b), thirty (30) days after Notice of Termination (provided that
Employee shall not have returned to the substantial performance of his duties on a full-time basis
during such thirty (30) day period), (iii) if Employee’s employment is terminated for any other
reason (other than failure to extend the Employment Period under Section 2), the date on which a
Notice of Termination is given or any later date (within thirty (30) days after the giving of such
notice) set forth in such Notice of Termination and (iv) upon termination of the Employment Period
without renewal under Section 2.

9

 

     8. Compensation Upon Termination, During Disability, Upon Death or With Respect to
Non-Extension of this Agreement. In the event Employee is disabled or his employment
terminates during the Employment Period, the Company and Ladenburg shall provide Employee with the
payments and benefits set forth below. Employee acknowledges and agrees that the payments set
forth in this Section 8 constitute liquidated damages for termination of his employment during the
Employment Period.

          (a) Termination By the Company or Ladenburg without Cause, By Employee for Good Reason or
pursuant to Expiration of the Employment Period without Renewal by the Company or Employee. If
Employee’s employment is terminated by the Company or Ladenburg without Cause, by Employee for Good
Reason or as a result of the expiration of the Employment Period without renewal by the Company or
Employee:

     (i) within thirty (30) days following such termination, Ladenburg shall pay to Employee
(A) all Kramer Group Fees and Investment Banking Fees then due, plus (B) if termination is
prior to April 1, 2007, the difference between $1,000,000 and the total amounts of Kramer
Group Fees, Investment Banking Fees and Guaranteed Amounts (as well as any other salary
payments made to Employee for the period from April 1, 2006 to the Commencement Date) paid
to Employee through the Date of Termination (if such latter amount is less than $1,000,000);

     (ii) Ladenburg shall continue to make any and all required payments to Employee with
respect to Investment Banking Fees to the extent provided in Section 5(a)(ii);
provided, that payment of such amounts shall be subject to the third to last
and second to last sentences of Section 5(b);

     (iii) Ladenburg shall maintain in full force and effect, for the continued benefit of
Employee, his spouse and his dependents for a period of two (2) years following the Date of
Termination the medical, hospitalization, dental, and life insurance programs in which
Employee, his spouse and his dependents were participating immediately prior to the Date of
Termination at the level in effect and upon substantially the same terms and conditions
(including without limitation contributions required by Employee for such benefits) as
existed immediately prior to the Date of Termination; provided, that, if
Employee, his spouse or his dependents cannot continue to participate in the Company’s
programs providing such benefits, Ladenburg shall arrange to provide Employee, his spouse
and his dependents with the economic equivalent of such benefits which they otherwise would
have been entitled to receive under such plans and programs (“Continued Benefits”),
provided, that, such Continued Benefits shall terminate on the date or dates
Employee receives equivalent coverage and benefits, without waiting period or pre-existing
condition limitations, under the plans and programs of a subsequent employer (such coverage
and benefits to be determined on a coverage-by-coverage or benefit-by-benefit, basis);

     (iv) Ladenburg shall reimburse Employee pursuant to Section 5(c) for reasonable
expenses incurred, but not paid prior to such termination of employment; and

10

 

     (v) Employee shall be entitled to any other rights, compensation and/or benefits as may
be due to Employee in accordance with the terms and provisions of any agreements, plans or
programs of the Company, except to the extent inconsistent with the terms hereof.

          (b) Termination by the Company or Ladenburg with Cause or By Employee without Good
Reason. If Employee’s employment is terminated by the Company or Ladenburg for Cause or by
Employee (other than for Good Reason):

     (i) within (A) thirty (30) days following such termination, Ladenburg shall pay to
Employee all Kramer Group Fees then due and (B) five (5) business days following such
termination, Ladenburg shall pay to Employee all Investment Banking Fees then due;
provided, that such amounts shall be reduced by any Additional Amounts
(calculated on a cumulative basis) to total the Guaranteed Amount and not based on Kramer
Group Fees or Investment Banking Fees actually earned;

     (ii) Ladenburg shall reimburse Employee pursuant to Section 5(c) for reasonable
expenses incurred, but not paid prior to such termination of employment; and

     (iii) Employee shall be entitled to any other rights, compensation and/or benefits as
may be due to Employee in accordance with the terms and provisions of any agreements, plans
or programs of the Company except to the extent inconsistent with the terms hereof.

          (c) Disability. During any period that Employee fails to perform his duties
hereunder as a result of incapacity due to physical or mental illness (“Disability Period”),
Employee shall continue to receive any Kramer Group Fees, Investment Banking Fees and Guaranteed
Amounts due under Sections 5(a) and 5(b) hereof until his employment is terminated pursuant to
Section 6(b). In the event Employee’s employment is terminated for Disability pursuant to Section
6(b):

     (i) thirty (30) days following such termination, Ladenburg shall pay to Employee the
greater of (x) all Kramer Group Fees and Investment Banking Fees then due and (y) the
Guaranteed Amount (if any) for such specific Employment Period as if it had not been
terminated;

     (ii) Ladenburg shall continue to make any and all required payments to Employee with
respect to Investment Banking Fees to the extent provided in Section 5(a)(ii);
provided, that payment of such amounts shall be subject to the third to last
and second to last sentences of Section 5(b);

     (iii) the Company shall provide Continued Benefits for a period of two (2) years
following the Date of Termination;

11

 

     (iv) Ladenburg shall reimburse Employee pursuant to Section 5(c) for reasonable
expenses incurred, but not paid prior to such termination of employment; and

     (v) Employee shall be entitled to any other rights, compensation and/or benefits as may
be due to Employee in accordance with the terms and provisions of any agreements, plans or
programs of the Company except to the extent inconsistent with the terms hereof.

          (d) Death. If Employee’s employment is terminated by his death:

     (i) Ladenburg shall pay to Employee’s beneficiary, legal representatives or estate, as
the case may be, the greater of (x) all Kramer Group Fees and Investment Banking Fees then
due and (y) the Guaranteed Amount (if any) for such specific Employment Period as if it had
not been terminated;

     (ii) Ladenburg shall continue to make any and all required payments to Employee with
respect to Investment Banking Fees to the extent provided in Section 5(a)(ii);
provided, that payment of such amounts shall be subject to the third to last
and second to last sentences of Section 5(b);

     (iii) Ladenburg shall provide Employee’s spouse and dependents with Continued Benefits
for two (2) years;

     (iv) the Company shall reimburse Employee’s beneficiary, legal representatives, or
estate, as the case may be, pursuant to Section 5(c) for reasonable expenses incurred, but
not paid prior to such termination of employment; and

     (v) Employee’s beneficiary, legal representatives or estate, as the case may be, shall
be entitled to any other rights, compensation and benefits as may be due to any such persons
or estate in accordance with the terms and provisions of any agreements, plans or programs
of the Company except to the extent inconsistent with the terms hereof.

          (e) Notwithstanding any other provision of this Agreement including this Section 8, Ladenburg
will pay Employees all fees and other amounts owed in a timely manner such that the time at which
fees are paid will comport with the “short term deferral” rule under Section 409A of the Internal
Revenue Code of 1986, as amended and any current and future guidance thereunder.

          (f) Additional Payments. (i) Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award, benefit or
distribution (or any acceleration of any payment, award, benefit or distribution) by Ladenburg or
any entity which effectuates a Change in Control (or other change in ownership) to or for the
benefit of Employee (the “Payments”) would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are
incurred by Employee with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”),

12

 

then Ladenburg shall pay to Employee an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by Employee of all taxes (including any Excise Tax) imposed upon the
Gross-Up Payment, Employee retains an amount of the Gross-Up Payment equal to the sum of (x) the
Excise Tax imposed upon the Payments and (y) the product of any deductions disallowed because of
the inclusion of the Gross-Up Payment in Employee’s adjusted gross income and the highest
applicable marginal rate of federal income taxation for the calendar year in which the Gross-Up
Payment is to be made. For purposes of determining the amount of the Gross-Up Payment, Employee
shall be deemed to (A) pay federal income taxes at the highest marginal rates of federal income
taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment
is to be made, (B) pay applicable state and local income taxes at the highest marginal rate of
taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local
taxes and (C) have otherwise allowable deductions for federal income tax purposes at least equal to
those which could be disallowed because of the inclusion of the Gross-Up Payment in Employee’s
adjusted gross income.

               (ii) Subject to the provisions of Section 8(f)(i), all determinations required to be made
under this Section 8(f), including whether and when a Gross-Up Payment is required, the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such determinations, shall
be made by a nationally recognized public accounting firm that is selected by Employee (the
“Accounting Firm”) which shall provide detailed supporting calculations both to Ladenburg and
Employee within fifteen (15) business days of the receipt of notice from Ladenburg or Employee that
there has been a Payment, or such earlier time as is requested by Ladenburg or Employee
(collectively, the “Determination”). All fees and expenses of the Accounting Firm shall be borne
solely by Ladenburg and Ladenburg shall enter into any agreement requested by the Accounting Firm
in connection with the performance of the services hereunder. The Gross-Up Payment under this
Section 8(f) with respect to any Payments made to Employee shall be made no later than thirty (30)
days following such Payment. If the Accounting Firm determines that no Excise Tax is payable by
Employee, it shall furnish Employee with a written opinion to such effect, and to the effect that
failure to report the Excise Tax, if any, on Employee’s applicable federal income tax return should
not result in the imposition of a negligence or similar penalty.

               (iii) As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the Determination, it is possible that Gross-Up Payments which will not have been made by
Ladenburg should have been made (“Underpayment”) or Gross-Up Payments are made by Ladenburg which
should not have been made (“Overpayment”), consistent with the calculations required to be made
hereunder. In the event that Employee thereafter is required to make payment of any Excise Tax or
additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code) shall be promptly paid by Ladenburg to or for the benefit of Employee.
In the event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse Employee
for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been
made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of
the Code) shall be promptly paid by Employee (to the extent he has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of
Ladenburg. Employee shall

13

 

cooperate, to the extent his expenses are reimbursed by Ladenburg, with any reasonable requests by
Ladenburg in connection with any contest or disputes with the Internal Revenue Service in
connection with the Excise Tax.

     9. Mitigation. Employee shall not be required to mitigate amounts payable under this
Agreement by seeking other employment or otherwise, and there shall be no offset against amounts
due Employee under this Agreement on account of subsequent employment except as specifically
provided herein.

     10. Restrictive Covenants.

          (a) Confidential Information. Employee shall hold in a fiduciary capacity for the
benefit of the Company all trade secrets and confidential information, knowledge or data relating
to the Company, Ladenburg and its businesses and investments, which shall have been obtained by
Employee during Employee’s employment by Ladenburg and which is not generally available public
knowledge (other than by acts by Employee in violation of this Agreement). Except as may be
required or appropriate in connection with his carrying out his duties under this Agreement,
Employee shall not, without the prior written consent of the Company or as may otherwise be
required by law or any legal process, or as is necessary in connection with any adversarial
proceeding against the Company (in which case Employee shall use his reasonable best efforts in
cooperating with the Company in obtaining a protective order against disclosure by a court of
competent jurisdiction), communicate or divulge any such trade secrets, information, knowledge or
data to anyone other than the Company and those designated by the Company or on behalf of the
Company in the furtherance of its business or to perform duties hereunder.

          (b) Non-Solicitation. (i) Employee hereby agrees, in consideration of his employment
hereunder and in view of the confidential position to be held by Employee hereunder, that after the
date of his termination of employment (i) as a result of expiration of the Employment Period
without renewal by either the Company or Employee and through the six (6) month anniversary thereof
or (ii) as a result of any reason other than as provided in the previous clause or by the Company
without Cause or by Employee for Good Reason and through the nine (9) month anniversary thereof
(either of such periods being referred to as the “Restricted Period” as applicable), Employee shall
not directly or indirectly induce any employee of the Company to terminate such employment or to
become employed by any other company; provided, that, after April 1, 2007, such
restriction shall not apply to the employees set forth on attached Schedule B. For purposes of
clarification, if termination of employment is by the Company without Cause or by Employee for Good
Reason, there shall be no Restricted Period.

               (ii) Employee agrees that during the Restricted Period, Employee shall not interfere with or
endeavor to entice any of the Company’s or Ladenburg’s customers and/or clients to cease conducting
business with the Company or Ladenburg; provided, that, this clause (b)(ii) shall
not apply with respect to any asset management customer and/or client of the Company or Ladenburg
with whom Employee had or has a business relationship immediately prior to the Commencement Date
(the “Prior Asset Management Clients” (including the Titan Fund)). Furthermore, the Company and
Ladenburg agree to not interfere with or endeavor to entice any of the Prior Asset Management
Clients to cease conducting asset management or

14

 

brokerage business (including the Titan Fund) with the individuals listed on Schedule B or
Employee.

          (c) Remedies. Employee hereby expressly acknowledges that any breach or threatened
breach by Employee of any of the terms set forth in Section 10 of this Agreement may result in
significant and continuing injury to the Company and Ladenburg, the monetary value of which would
be impossible to establish. Therefore, Employee agrees that the Company and Ladenburg shall be
entitled to apply for injunctive relief in a court of appropriate jurisdiction.

     11. Arbitration. Except as provided for in Section 10 of this Agreement, if any
contest or dispute arises between the parties with respect to this Agreement, such contest or
dispute shall be submitted to binding arbitration for resolution in New York, New York in
accordance with the rules and procedures of the Employment Dispute Resolution Rules of the American
Arbitration Association then in effect. The decision of the arbitrator shall be final and binding
on both parties, and any court of competent jurisdiction may enter judgment upon the award. The
losing party shall pay all expenses relating to such arbitration, including, but not limited to,
the winning party’s legal fees and expenses.

     12. Successors; Binding Agreement.

          (a) Company’s and Ladenburg’s Successors. No rights or obligations of the Company or
Ladenburg under this Agreement may be assigned or transferred except that the Company and Ladenburg
will require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Company and Ladenburg
to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that the Company and Ladenburg would be required to perform it if no such succession had taken
place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets (by merger, purchase or otherwise) which executes and
delivers the agreement provided for in this Section 12 or which otherwise becomes bound by all the
terms and provisions of this Agreement by operation of law.

          (b) Employee’s Successors. No rights or obligations of Employee under this Agreement
may be assigned or transferred by Employee other than his rights to payments or benefits hereunder,
which may be transferred only by will or the laws of descent and distribution. Upon Employee’s
death, this Agreement and all rights of Employee hereunder shall inure to the benefit of and be
enforceable by Employee’s beneficiary or beneficiaries, personal or legal representatives, or
estate, to the extent any such person succeeds to Employee’s interests under this Agreement.
Employee shall be entitled to select and change a beneficiary or beneficiaries to receive any
benefit or compensation payable hereunder following Employee’s death by giving Ladenburg written
notice thereof. In the event of Employee’s death or a judicial determination of his incompetence,
reference in this Agreement to Employee shall be deemed, where appropriate, to refer to his
beneficiary(ies), estate or other legal representative(s). If Employee should die following his
Date of Termination while any amounts would still be payable to him hereunder if he had continued
to live, all such amounts unless otherwise provided herein shall be

15

 

paid in accordance with the terms of this Agreement to such person or persons so appointed in
writing by Employee, or otherwise to his legal representatives or estate.

     13. Notice. For the purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be deemed to have been
duly given when delivered either personally or by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:

			
	     	 	If to Employee:

Mark D. Klein

with a copy to:

Akin Gump Strauss Hauer & Feld LLP

590 Madison Avenue

New York, New York 10022

Attention: Adrienne Scerbak, Esq.

If to the Company or Ladenburg:

Ladenburg Thalmann Financial Services, Inc.

153 East 53rd Street, 49th Floor

New York, NY 10022

Attention: General Counsel

with a copy to:

Graubard Miller

405 Lexington Avenue

New York, NY 10174

Attention: David Alan Miller

or to such other address as any party may have furnished to the others in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

     14. Miscellaneous. No provisions of this Agreement may be amended, modified, or
waived unless such amendment or modification is agreed to in writing signed by Employee and by a
duly authorized officer of the Company and Ladenburg, and such waiver is set forth in writing and
signed by the party to be charged. No waiver by either party hereto at any time of any breach by
the other party hereto of any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made

16

 

by either party which are not set forth expressly in this Agreement. The respective rights
and obligations of the parties hereunder of this Agreement shall survive Employee’s termination of
employment and the termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of New York without regard
to its conflicts of law principles.

     15. Validity. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

     16. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     17. Entire Agreement. Except as otherwise provided herein (including but not limited
to Sections 8(a)(v), 8(b)(iii), 8(c)(v) and 8(d)(v)), this Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained herein and supersede all
prior agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, employee or representative of any party hereto in respect
of such subject matter. Except as other provided herein, any prior agreement of the parties hereto
in respect of the subject matter contained herein is hereby terminated and cancelled.

     18. Withholding. All payments hereunder shall be subject to any required withholding
of Federal, state and local taxes pursuant to any applicable law or regulation.

     19. Noncontravention. The Company, Ladenburg and Employee each represent to the other
that the Company, Ladenburg and Employee, as the case may be, are not prevented from entering into,
or performing, this Agreement by the terms of any law, order, rule or regulation, its by-laws or
declaration of trust, or any agreement to which the Company, Ladenburg or Employee, as the case may
be, is a party.

     20. Section Headings. The section headings in this Agreement are for convenience of
reference only, and they form no part of this Agreement and shall not affect its interpretation.

- SIGNATURE PAGE FOLLOWS -

17

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written.

	 	 	 	 	 
	 	LADENBURG THALMANN FINANCIAL

SERVICES INC.

 	 
	 	By:  	/s/ Diane Chillemi
 	 
	 	 	Diane Chillemi 	 
	 	 	Vice President and Chief Financial Officer 	 
	 
	 	LADENBURG THALMANN & CO. INC.

 	 
	 	By:  	/s/ Diane Chillemi
 	 
	 	 	Diane Chillemi 	 
	 	 	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                       /s/ Mark D. Klein
 	 
	 	Mark D. Klein 	 
	 	 	 
	 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]