Document:

Execution Copy

 

FIRST AMENDMENT TO FORGIVABLE LOAN AGREEMENT

 

THIS FIRST AMENDMENT
TO FORGIVABLE LOAN AGREEMENT is made as of November 4, 2011 (this “Loan Agreement Amendment”) between NATIONAL
FINANCIAL SERVICES LLC (the “Lender”) and LADENBURG THALMANN FINANCIAL SERVICES INC. (the “Organization”).

 

WHEREAS, the Lender
and the Organization have previously entered into that certain Forgivable Loan Agreement, dated August 25, 2009 (the “2009
Loan Agreement’), whereby the Lender made available to the Organization a loan facility in the original aggregate principal
amount of $10,000,000, of which a principal amount of $7,142,857.14 is currently outstanding;

 

WHEREAS, on August
25, 2009, the Lender entered into amendments to the fully disclosed clearing agreements with three introducing broker-dealer subsidiaries
of the Organization, Ladenburg Thalmann & Co. Inc., Triad Advisors Inc. and Investacorp Inc. (collectively, including any amendments
thereto, the “2009 Clearing Agreements”) and, on the date hereof, has entered into amendments (the “Clearing
Agreements Amendments”) to the 2009 Clearing Agreements amending and further extending the term of such agreements;

 

WHEREAS, contemporaneously
with the execution of this Loan Agreement Amendment, (i) the Lender has entered into a clearing agreement with the Organization’s
newly acquired broker-dealer subsidiary Securities America, Inc. (“SAI”), amending and further extending the term of
its existing clearing agreement with SAI (including any amendments thereto, the “SAI Clearing Agreement”), and (ii)
the Lender and the Organization have entered into a new Forgivable Loan Agreement (the “2011 Loan Agreement”), whereby
the Lender will make available to the Lender an additional loan facility in the principal amount of $15,000,000;

 

WHEREAS, in connection
with the foregoing transactions, the Lender and the Organization desire to amend the terms of the 2009 Loan Agreement as provided
for herein;

 

NOW THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

Section 1.          Amendments
to 2009 Loan Agreement. The parties hereto agree that the 2009 Loan Agreement shall be amended as follows:

 

Section 1.1           The
following definitions contained in Section 1 of the 2009 Loan Agreement shall be amended as follows:

 

(iv) “Loan
Documents” shall mean this Loan Agreement Amendment, the 2009 Loan Agreement, the Tranche A Note, the Tranche B Note and
any exhibit attached to the 2009 Loan Agreement.

 

(v) “Material
Adverse Effect” shall be amended to add the following sentence to the end thereof: 

 

    	 

    	 

    

  

Neither the SAFC Purchase and the financing
thereof nor any matters arising from the conduct of the business of SAI and affiliated entities prior to the closing of the SAFC
Purchase shall be deemed to constitute a Material Adverse Effect.

 

(vi) “Termination
Material Event” shall be amended to add at the end of the last sentence the following:

 

; provided, however, that matters arising
from the conduct of the business of SAI and affiliated entities prior to the closing of the SAFC Purchase shall not be the basis
for a Termination Material Event.

 

(vii) “Annual
Forgiveness Dates” shall mean the four (4) consecutive anniversary dates following the Effective Date (each an “Annual
Forgiveness Date”);

 

(viii) “Final
Payment Date” shall mean November 4, 2018.

 

(ix) “Transaction
Documents” shall mean the Loan Documents, the Clearing Agreements Amendments, this Loan Agreement Amendment and the SAI Clearing
Agreement.

 

Section 1.2           Section
1 of the 2009 Loan Agreement shall be amended to add the following new definition:

 

(x) “SAFC
Purchase” shall mean the purchase by the Organization of Securities America Financial Corporation and its subsidiaries, including
SAI, on November 4, 2011.

 

Section 1.3           Section
2(iv) of the 2009 Loan Agreement shall be amended in its entirety to read as follows:

 

Prior to
entering into this Loan Agreement Amendment, the Organization shall provide Lender with: (a) a copy of a Corporate Resolution
of the Organization, certified by the Organization’s Secretary, authorizing it to enter into the Loan Documents; (b) recent
evidence of corporate good standing of the Organization obtained from the Organization’s state of organization; and (c) copies
of the Clearing Agreements Amendments and SAI Clearing Agreement fully executed by LTC, TAI, Investacorp and SAI.

 

Section 1.4           Section
2(v) of the 2009 Loan Agreement shall be amended such that (1) the reference in the first sentence thereof to “$714,285.71”
shall be deleted and replaced by the number “$1,785,714.29”; (2) clauses (d), (e) and (f) thereof shall be amended
in their entirety to read as set forth below; and (3) clauses (g), (h), (i) and (j) thereof shall be deleted: 

 

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		(d)	The Revolving Line of Credit dated October 19, 2007, as amended, provided to the Organization by
First Gamma Investments Trust in the amount of $40,000,000 (the “Frost Gamma Line of Credit”) shall remain outstanding
with a final term date not to precede August 25, 2016 and no material event of default to the lender thereunder shall have occurred
and be continuing.

 

		(e)	Each of the 2009 Clearing Agreements, the Clearing Agreements Amendments and the SAI Clearing Agreement
is in full force and effect and no material defaults or other termination events have occurred and are continuing thereunder.
	 	 	 

		(f)	The Organization has not discontinued or divested, or is not in the process of discontinuing or divesting, any of the Subsidiary
Broker-Dealers or SAI.

 

Section 1.5            Section
4(xii) of the 2009 Loan Agreement shall be deleted and the reference thereto in Section 6(i)(c) of the 2009 Loan Agreement shall
also be deleted.

 

Section 2.          Entire
Agreement; Amendment.

 

This Loan Agreement Amendment and the 2009
Loan Agreement, including all Exhibits, which are hereby incorporated by reference, constitute and express the entire agreement
and understanding between the parties and supersede all previous communications, representations or agreements, whether written
or oral, with respect to the subject matter hereof. This Loan Agreement Amendment may be modified only in a writing signed by both
parties to this Loan Agreement Amendment. Such modification shall not be deemed as a cancellation of this Loan Agreement Amendment.

 

Section 3.          Miscellaneous.

 

Section 3.1           Except
as hereinabove specifically amended, all other provisions of the 2009 Loan Agreement shall remain unchanged and in full force and
effect. For the avoidance of doubt, this includes Section 6, Events of Default; Acceleration; Etc., and pursuant to Section 6(l),
in the event that any of the Clearing Agreements, as well as any of the future clearing agreements between NFS and any future Affiliated
B-D’s, ceases to be in full force and effect or is otherwise terminated, then all remaining amounts of both principal and
interest under the Tranche A Note and the Trance B Note that have not been forgiven shall become immediately due and payable to
NFS.

 

Section 3.2           This
Loan Agreement Amendment may be executed in any number of counterparts with each executed counterpart constituting an original,
but altogether one and the same instrument.

 

Section 3.3           This
Loan Agreement Amendment shall be binding upon and inure to the benefit of each of the Lender and the Organization and their respective
successors and assigns.

 

Section 3.4           Capitalized
terms which are used herein and are not defined shall have the same meanings as set forth in the 2009 Loan Agreement, as amended
hereby. 

 

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Section 3.5           The
parties hereto acknowledge and agree that all obligations of each party under the 2009 Loan Agreement to be performed by each party
through the date hereof have been performed to the satisfaction of each party, that there is no Default or Event of Default currently
existing under the 2009 Loan Agreement and that the execution of this Loan Agreement Amendment and the consummation of the transactions
contemplated hereby will not result in any Default or Event of Default under the 2009 Loan Agreement.

 

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

 

	 	 	LENDER:
	 	 	 
	 	 	NATIONAL FINANCIAL SERVICES LLC
	 	 	 
	 	 	By: /s/ Todd W. Roadman
	 	 	Name: Todd W. Roadman
	 	 	Title: CFO
	 	 	 
	 	 	ORGANIZATION:
	 	 	 
	 	 	LADENBURG THALMANN FINANCIAL
	 	 	  SERVICES INC.
	 	 	 
	 	 	By: /s/ Richard J. Lampen
	 	 	Name: Richard J. Lampen
	 	 	Title: President and CEO

 

    	4EXHIBIT 10.33

 

NOTE: PORTIONS OF THIS EXHIBIT ARE THE
SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION").
SUCH PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION AND ARE MARKED WITH A "[*]" IN PLACE OF THE
REDACTED LANGUAGE.

 

FORGIVABLE LOAN AGREEMENT

 

This FORGIVABLE LOAN AGREEMENT, including
all exhibits (as amended from time to time, this “Agreement”), is entered into the 4th day of November, 2011 (the “Effective
Date”) between NATIONAL FINANCIAL SERVICES LLC (the “Lender”) and LADENBURG THALMANN FINANCIAL SERVICES INC.
(the “Organization”).

 

WHEREAS, on August 25, 2009, the Lender
entered into amendments to the fully disclosed clearing agreements with each of the following three (3) introducing broker-dealer
subsidiaries of the Organization: (1) Ladenburg Thalmann & Co. Inc. (“LTC”), dated February 5, 2007, including
any amendments thereto (the “LTC Clearing Agreement”); (2) Triad Advisors Inc. (“TAI”), dated August 5,
1998, including any amendments thereto (the “TAI Clearing Agreement”); and (3) Investacorp, Inc. (“Investacorp”),
dated April 24, 2008, including any amendments thereto (the “Investacorp Clearing Agreement”) (collectively, the “2009
Clearing Agreements”);

 

WHEREAS, contemporaneously with the execution
of the 2009 Clearing Agreements, the Lender and the Organization entered into a Forgivable Loan Agreement (the "2009 Loan
Agreement"), whereby the Lender made available to the Organization a loan under which a principal amount of $7,142,857.14
is currently outstanding;

 

WHEREAS, contemporaneously with the execution
of this Agreement, the Lender has entered into a fully disclosed clearing agreement as well as related ancillary agreements with
Securities America Inc. ("SAI"), an introducing broker-dealer subsidiary of the Organization, dated November 4, 2011
(including any amendments thereto, the "SAI Clearing Agreement"), amending and further extending the term of its existing
clearing agreement with SAI until November 4, 2018;

 

WHEREAS, contemporaneously with the execution
of this Agreement, (i) the Lender and LTC, TAI and Investacorp have entered into amendments to the 2009 Fully Disclosed Clearing
Agreements as well as related ancillary agreements dated November 4, 2011 (collectively, the “Clearing Agreements Amendments”),
amending and further extending the term of such agreements until November 4, 2018, and (ii) the Lender and the Organization have
entered into an amendment to the 2009 Loan Agreement (the “Loan Agreement Amendment”);

 

WHEREAS, pursuant to each of the of the
2009 Clearing Agreements and the SAI Clearing Agreement, the Lender, a clearing broker-dealer registered with the Securities and
Exchange Commission (“SEC”), provides clearing and custody services to LTC, TAI, Investacorp and SAI (collectively,
the “Subsidiary Broker-Dealers”), each of which is an introducing broker-dealer registered with the SEC;

 

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WHEREAS, the Lender, in connection with
the amendment and extension of the terms of the SAI Clearing Agreement, the Clearing Agreements Amendments and the Loan Agreement
Amendment, is willing to make available to the Organization a new loan in the principal amount of $15,000,000 (the “Loan”);

 

WHEREAS, the Lender intends to forgive
on an annual basis principal and interest amounts otherwise due under the Loan, predicated upon the satisfaction of certain conditions
set forth in this Agreement; and

 

WHEREAS, pursuant to and subject to the
terms and conditions contained herein, the Lender is willing to make the Loan available to the Organization under this Agreement
as of the Effective Date through the Final Payment Date (as hereinafter defined).

 

NOW THEREFORE, in consideration of the
premises and of the mutual covenants herein contained, the parties hereto agree as follows:

 

		1.	DEFINITIONS

 

The following terms shall have the following meanings when set
forth herein:

 

		(i)	“Business Day” shall mean any day other than a Saturday or Sunday on
which banks are open for domestic and foreign exchange business in New York City and are not authorized or required to close for
such business. 

 

		(ii)	“Fed Funds Effective Rate” shall mean the daily effective federal funds rate calculated
by the Federal Reserve Bank of New York as reported on Bloomberg under the FEDL function for the date
in question. 

 

		(iii)	“Average Annual Fed Funds Effective Rate” shall mean, as of an applicable
Annual Forgiveness Date, the average of the Fed Funds Effective Rate for each of the 365
days preceding such Annual Forgiveness Date. 

 

		(iv)	“Loan Documents” shall mean this Agreement, the Note and any exhibit attached hereto.

 

		(v)	"Material Adverse Effect" shall mean, with respect to any event or occurrence of whatever
nature (including any adverse determination in any litigation, arbitration or governmental investigation or proceeding): (a) a
material adverse effect on the business, properties, prospects, condition (financial or otherwise), assets, operations or income
of the Organization, individually or the Organization and its subsidiaries, taken as a whole; (b) a
material adverse effect on the ability of the Organization to perform any of its obligations under any of the Transaction Documents
(defined below) to which it is a party; or (c) any material impairment of the validity, binding effect or enforceability of any
of the Transaction Documents or any impairment of the rights, remedies or benefits available to the Lender under any Transaction
Document. In determining whether any individual event could reasonably be expected to result in a Material Adverse Effect, notwithstanding
that such event does not of itself have such effect, a Material Adverse Effect shall be deemed to have occurred if the cumulative
effect of such event and all other then existing events could reasonably be expected to result in a Material Adverse Effect. Neither
the SAFC Purchase (defined below) and the financing thereof nor any matters arising from the conduct of the business of SAI and
affiliated entities prior to the closing of the SAFC Purchase shall be deemed to constitute a Material Adverse Effect.

  

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		(vi)	“Termination Material Event” shall mean the Organization, any of the Subsidiary
Broker-Dealers or future broker-dealer subsidiaries (collectively, “Affiliated Broker-Dealers”), or any officer, director
or principal shareholder of either the Organization or any of its Affiliated Broker-Dealers: (a) are indicted for a state or federal
crime involving moral turpitude, or (b) any other civil or criminal proceeding or investigation by a governmental or regulatory
authority shall have been brought or overtly threatened against the Organization, any of its Affiliated Broker-Dealers, or any
such officer, director or principal shareholder, in either case that the Lender reasonably determines could have a material adverse
impact on the reputation of the Organization or any of its Affiliated Broker-Dealers or that the Lender’s association with
the Organization, any of its Affiliated Broker-Dealers, or such officer, director or principal shareholder is materially adverse
to the Lender's interests; provided, however, that matters arising from the conduct of the business of SAI and affiliated entities
prior to the closing of the SAFC Purchase shall not be the basis for a Termination Material Event.

 

		(vii)	“Annual Forgiveness Dates” shall mean the seven (7) consecutive anniversary dates
following the Effective Date (each an “Annual Forgiveness Date”).

 

		(viii)	“Final Payment Date” shall mean the last Annual Forgiveness Date.

 

		(ix)	“Transaction Documents” shall mean the Loan Documents, the Clearing Agreements Amendments,
the Loan Agreement Amendment and the SAI Clearing Agreement.

 

		(x)	“SAFC Purchase” shall mean, collectively the purchase by the Organization of Securities America Financial Corporation
and its subsidiaries, including SAI, on November 4, 2011.

 

		2.	GENERAL TERMS OF THE LOAN

 

		(i)	The Lender agrees that, subject to the terms and conditions contained in this Agreement, and
in reliance on the representations and warranties contained in Section 3, it shall make a loan to the Organization on the Effective
Date in the amount of $15,000,000; 

 

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		(ii)	Loan:

 

		(a)	Subject to the terms and conditions hereinafter set forth, the Organization promises to pay to the
Lender or its assigns on the Final Payment Date, to the extent not forgiven as hereinafter provided, all principal amounts owing
in respect of the Loan. On each Annual Forgiveness Date, to the extent not forgiven as hereinafter provided, interest shall be
paid on all outstanding principal amounts of the Loan for the period from the Effective Date, or the preceding Annual Forgiveness
Date for which interest was paid with respect to such Loan, as the case may be, at a rate equal to the Average Annual Fed
Funds Effective Rate plus six percent (6%) per annum, subject to a maximum rate of eleven percent (11%) per annum (with interest
for any period that is less than twelve full months being computed on the actual number of days elapsed in a year of 360 days).
Such payments of principal and interest shall be made by the Organization to the Lender no later than 5:00 p.m. (or other local
time at the place of payment), Boston, Massachusetts time, on the applicable Annual Forgiveness Date, in arrears, by wire transfer
of immediately available funds to the account of the Lender specified in Section 17 or to such
other account as to which the Lender shall give notice to the Organization from time to time. Should any amount due hereunder become
due on a day other than a Business Day, payment thereof shall be extended to the next succeeding Business Day and interest shall
be payable thereon at a rate as stated above. Notwithstanding anything to the contrary contained herein,
but subject to the last sentence of this Section 2(ii)(a) below, if the Organization's consolidated shareholders’ equity
(excluding from the determination thereof any non-cash charges and non-cash interest expenses from and after January 1, 2009 relating
to compensation expense, interest charges (including debt discount and issuance costs), depreciation and the write-off or amortization
of goodwill or other intangible assets; as so determined, the “Consolidated Adjusted Shareholders’ Equity”) is
less than $50,000,000 as of the date of any financial statements of the Organization delivered by the Organization pursuant to
Section 4(iii) and is also less than $50,000,000 as of the date of the financial statements of the Organization next delivered
by the Organization pursuant to Section 4(iii) (a “Mandatory Prepayment Event” and the date such second financial statements
are delivered by the Organization being the “Mandatory Prepayment Date”), the Organization shall make mandatory prepayments
of the Loan over the seven-month period immediately following the Mandatory Prepayment Date as
follows:

 

	
        Payment

        Period:
	 	Payable on:	 	Amount:
	Month 1	 	immediately following the Mandatory Prepayment Date (or, if any such last day is not a Business Day, on the next succeeding Business Day)	 	25% of the outstanding principal balance of the Loan plus all accrued and unpaid interest thereon

 

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        Payment

        Period:
	 	Payable on:	 	Amount:
	Months 2-7	 	on the last day of each thirty-day period for this 6-month period (or, if any such thirty-day period that does not end on a Business Day, on the next succeeding Business Day)	 	the remaining principal balance of the Loan, plus all accrued interest thereon, in equal (as to principal) consecutive monthly installments, together with accrued interest owing through each payment date

  

			Notwithstanding the foregoing, in the event that the Organization evidences to the Lender within
seven (7) months of a Mandatory Prepayment Event that the Organization’s Consolidated Adjusted Shareholders’ Equity
is in excess of $50,000,000, the Lender shall promptly return to the Organization any Loan principal amounts delivered to the Lender
as a result of the Mandatory Prepayment Event and such amounts returned shall be due and payable, and subject to forgiveness, in
accordance with the terms of this Agreement as if the Mandatory Prepayment Event had not occurred.

 

		(b)	The obligation of the Organization to repay the Loan shall be evidenced by a promissory note of the Organization in the form
of Exhibit B hereto (the “Note”) dated as of the date hereof and completed with appropriate insertions. The
outstanding principal amount of the Note, as set forth on Schedule 1 thereto, shall be prima facie evidence
of the principal amount thereof owing and unpaid to the Lender, but the failure to record, or any error in so recording, any such
amount on Schedule 1, or failure to send Schedule 1 to the Organization upon an entry made on Schedule 1,
shall not limit or otherwise affect the obligations of the Organization hereunder or under the Note to make payments of principal
or interest on such Note when due in accordance with the terms and conditions of this Agreement. Upon each entry being made upon
Schedule 1, the Lender shall send the Organization a copy of Schedule 1 as then in effect.

 

		(iii)	Prior to entering into this Agreement, the Organization shall provide Lender with:
(a) a copy of a Corporate Resolution of the Organization, certified by the Organization’s Secretary, authorizing it
to enter into the Loan Documents; (b) recent evidence of corporate good standing of the Organization obtained from the Organization’s
state of organization; and (c) copies of the SAI Clearing Agreement fully executed by SAI, the Clearing Agreement Amendments fully
executed by LTC, TAI and Investacorp, and the Loan Agreement Amendment fully executed by the Organization.

 

		(iv)	Forgiveness of Note: Notwithstanding the Organization’s requirement
to pay principal and interest as otherwise set forth in this Agreement, upon each Annual Forgiveness Date the Lender shall forgive
the obligations of the Organization in the amount of $2,142,857.14 of outstanding principal of the Loan, or the remaining principal
of the Loan if less than that amount, plus accumulated interest otherwise owed to the Lender under the Loan, provided that each
of the following conditions precedent is satisfied to the reasonable satisfaction of the Lender on each such Annual Forgiveness
Date:

 

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		(a)	Each of the representations and warranties of the Organization contained in Section 3(i), (ii) and
(iii) and shall be true as of the date as of which it was made and shall also be true at
and as of the time any loan amounts under the Loan are forgiven, with the same effect as if made at and as of that time (except
to the extent of changes resulting in transactions contemplated or permitted by this Agreement and the other Loan Documents and
changes occurring in the ordinary course of business that singly or in the aggregate are not materially adverse, and to the extent
that such representations and warranties relate expressly to an earlier date).

 

		(b)	No Default or Event of Default specified in any of paragraphs (a), (b), (c), (f), (g),
(j) and (k) of Section 6(i) shall have occurred and be continuing on such date.

 

		(c)	The Consolidated Adjusted Shareholders’ Equity of the Organization
as of the date of the financial statements most recently delivered by the Organization pursuant to Section 4(iii) shall be at least
$50,000,000.

 

		(d)	The Revolving Line of Credit dated October 19, 2007, as amended, provided to the Organization by First Gamma Investments Trust
in the amount of $40,000,000 (the “Frost Gamma Line of Credit”) shall remain outstanding with a final term date not
to precede August 25, 2016 and no material event of default to that lender thereunder shall have occurred and be continuing.

 

		(e)	Each of the 2009 Clearing Agreements and the SAI Clearing Agreement is in full force and effect and no material defaults or
other termination events have occurred and are continuing thereunder.

	 	 	 
		(f)	The Organization has not discontinued or divested, or is not in the process of discontinuing
or divesting, any of the Subsidiary Broker-Dealers or SAI.

 

		(g)	With respect to the forgiveness of both principal and interest on the Loan on any Annual Forgiveness Date: (i) for the prior
twelve (12) month period ending on such Annual Forgiveness Date, the “Core Fee Measure” of SAI (as defined on Exhibit
A, attached hereto) is equal to, or greater than, the Core Fee Measure Benchmark for such Annual Forgiveness Date as noted on the
below schedule, or (ii) the average annual Core Fee Measure of SAI for the period commencing on the Effective Date and ending on
such Annual Forgiveness Date is equal to, or greater than, the Average Annual Core Fee Measure Benchmark noted on the below schedule:

 

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	Annual Forgiveness Date	 	Core Fee Measure 
Benchmark	 	 	Average Annual Core Fee 
Measure Benchmark	 
	1st	 	$	[*]	 	 	 	[*]	 
	2nd	 	$	[*]	 	 	$	[*]	 
	3rd	 	$	[*]	 	 	$	[*]	 
	4th	 	$	[*]	 	 	$	[*]	 
	5th	 	$	[*]	 	 	$	[*]	 
	6th	 	$	[*]	 	 	$	[*]	 
	7th	 	$	[*]	 	 	$	[*]	 

 

Any accounts that have been transferred or otherwise
delivered from either LTC, TAI and/or Investacorp to SAI since the Effective Date (except those accounts which transfer due to
individual registered representatives moving amongst firms in the normal course of business) shall be excluded from the calculation
of the Core Fee Measure of SAI. To facilitate this exclusion, the Lender shall calculate the impact to the Core Fee Measure at
the time of the account transfers and shall make an adjustment to the Core Fee Measure at that time.

 

Notwithstanding the foregoing, if the Organization
is not entitled to forgiveness with respect to a portion of the Loan on an Annual Forgiveness Date pursuant to the above schedule
(an “Unachieved Forgiveness”) but as of a subsequent Annual Forgiveness Date, the average annual Core Fee Measure of
SAI for the period commencing on the Effective Date and ending on such subsequent Annual Forgiveness Date is equal to, or greater
than, the Average Annual Core Fee Measure Benchmark noted in the above schedule for such subsequent Annual Forgiveness Date, the
amount of Unachieved Forgiveness that is attributable to principal only (and not attributable
to interest) for all previous years as well as the interest payable for the year ending on such Annual
Forgiveness Date shall be forgiven as of such subsequent Annual Forgiveness Date. By way of example, if SAI’s Core
Fee Measure in Year 3 is below the Year 3 Core Fee Benchmark but SAI’s Core Fee Measure in Year 4 is above the Year 4 Core
Fee Benchmark, then the principal in Year 3 as well as the principal and interest in Year 4 shall be forgiven.

			

 

		(v)	All payments made by the Organization hereunder and under any of the other Loan Documents shall
be made without recoupment, setoff or counterclaim and free and clear of and without deduction for any taxes, levies, imposts,
duties, charges, fees, deductions, withholdings, compulsory loans, restrictions or conditions of any nature now or hereafter imposed
or levied by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless the Organization
is compelled by law to make such deduction or withholding. If any such obligation is imposed upon the Organization with respect
to any amount payable by it hereunder or under any of the other Loan Documents, the Organization shall pay to the Lender, on the
date on which such amount is due and payable hereunder or under such other Loan Document, such additional amount in United States
Dollars as shall be necessary to enable the Lender to receive the same net amount which the Lender would have received on such
due date had no such obligation been imposed upon the Organization. 

 

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		(vi)	The Organization may, at its option and without any penalty, make prepayment of all or any portion
of the principal amount hereof to the Lender prior to the Final Payment Date (such payment being hereinafter referred to as the
“Prepayment”) at any time subsequent to the Effective Date. Each Prepayment under this paragraph shall be accompanied
by the payment of the interest accrued on the amount prepaid to the date of such Prepayment. Each partial Prepayment shall be in
a principal amount of $250,000 or an integral multiple thereof. No amounts repaid may be reborrowed.

 

		3.	REPRESENTATIONS AND WARRANTIES

 

The Organization represents and warrants to the Lender as follows:

 

		(i)	It is a corporation duly organized, validly existing and in good standing under the laws of its
state of organization, and has all requisite authority, whether arising under its Articles of Incorporation or by-laws or applicable
federal or state laws, to enter into this Agreement and the other Loan Documents and to discharge the duties and obligations apportioned
to it in accordance with the terms hereof, and that the person(s) executing this Agreement and the other Loan Documents on behalf
of Organization is/are duly authorized to do so.

 

		(ii)	The execution and delivery of this Agreement and the other Loan Documents to which the Organization
is or is to become a party will result in valid and legally binding obligations of the Organization enforceable against it in accordance
with the respective terms and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting generally the enforcement of creditors' rights and except to the extent that
availability of the remedies of specific performance and injunctive relief and other equitable remedies are subject to the discretion
of the court before which any proceeding therefor may be brought.

 

		(iii)	The execution, delivery and performance by the Organization of this Agreement and the other Loan
Documents and the transactions contemplated hereby and thereby do not require the approval or consent of, or filing with, any governmental
agency or authority other than those already obtained.

 

		(iv)	No material default or event of default exists under any of the Transaction Documents or any
other agreement between the Lender and the Organization.

 

		(v)	The Consolidated Adjusted Shareholders’ Equity of the Organization as of the last day of
the month immediately preceding the Effective Date is at least $50,000,000. 

 

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		(vi)	It wholly owns each of LTC, TAI, Investacorp and SAI. 

 

		(vii)	Since September 30, 2011, no Material Adverse
Effect has occurred.

 

		(viii)	There are no actions, suits, proceedings or investigations of any kind pending or threatened against the Organization before
any governmental authority (a) that, if adversely determined, is reasonably likely, either in any case or in the aggregate, to
(i) have a Material Adverse Effect or (ii) materially impair the right of the Organization to carry on business substantially as
now conducted by it, or result in any substantial liability not adequately covered by insurance, or (b) that question the validity
of this Agreement or any of the other Transaction Documents, or any action taken or to be taken pursuant hereto or thereto.

 

		(ix)	The Organization is not subject to any governing document (including, without limitation, its
Articles of Incorporation and by-laws or similar documents) or other legal restriction, or any judgment, decree, order, law, statute,
rule or regulation that, since September 30, 2011, has had or is expected, in the judgment of the Organization's officers, to have
a Material Adverse Effect. The Organization is not a party to any contract or agreement that, since September 30, 2011, has had
or is expected, in the judgment of the Organization's officers, to have any Material Adverse Effect.

 

		(x)	The Organization is not in violation of any provision of its governing documents, or any agreement
or instrument to which it may be subject or by which it or any of its properties may be bound or any decree, order, judgment, statute,
license, rule or regulation, in any of the foregoing cases in a manner that is reasonably likely to result in the imposition of
substantial penalties or have a Material Adverse Effect.

 

		(xi)	The Organization (a) has made or filed, or has received a currently valid extension to file,
all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which
it is subject, (b) has paid all taxes and other governmental assessments and charges shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and by appropriate proceedings and (c) has set aside on its
books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and none of the officers of the Organization know of any basis for any such claim.

 

		4.	AFFIRMATIVE COVENANTS

 

The Organization covenants and agrees that, as of the Effective
Date, and so long as the Note is outstanding:

 

		(i)	The Organization shall duly and punctually pay or cause to be paid the principal and interest due on the Note, as well as all
fees and all other amounts provided for in this Agreement and the other Loan Documents, all in accordance with the terms of this
Agreement and such other Loan Documents.

 

    	9

    	 

    

	 	 	 
		(ii)	The Organization shall (a) keep, and cause each of its subsidiaries to keep, true and accurate records and books of account
in which full, true and correct entries shall be made in accordance with United States generally
accepted accounting principles (“GAAP”), and (b) maintain adequate accounts and reserves for all taxes (including income
taxes), depreciation, depletion, obsolescence and amortization of its properties and the properties of its subsidiaries, contingencies,
and other reserves, and (c) at all times engage independent certified public accountants reasonably satisfactory to the Lender
as the independent certified public accountants of the Organization and its subsidiaries and shall not permit more than thirty
(30) days to elapse between the cessation of such firm's (or any successor firm's) engagement as the independent certified public
accountants of the Organization and its subsidiaries and the appointment in such capacity of a successor firm as shall be reasonably
satisfactory to the Lender. The Lender acknowledges that EisnerAmper LLP is reasonably satisfactory to it.

 

		(iii)	The Organization shall deliver to the Lender financial statements of the Organization
as follows: (a) for each of the first two months of a fiscal quarter year, on or before the forty-fifth calendar day following
each calendar month during the term of this Agreement, monthly financial statements prepared by the Organization consisting of
a balance sheet and a statement of operations; (b) for each of the first three fiscal quarters of a fiscal year, on or before the
forty-fifth calendar day following the end of such fiscal quarter, the financial statements included in the Form 10-Q filed by
the Organization with the SEC for such fiscal quarter; and (c) for each full fiscal year, on or before the ninetieth calendar day
following the end of such fiscal year, the financial statements included in the Form 10-K filed by the Organization for such fiscal
year. In each case, the Organization shall also deliver to the Lender a calculation setting forth the Organization’s Consolidated
Adjusted Shareholders’ Equity as of the date of the financial statements so delivered derived from the information contained
in such financial statements. The financial statements to be delivered pursuant to the foregoing clauses (a) and (b) will not contain
all notes and disclosures required by GAAP and will be subject to normal year-end and audit adjustments.

 

		(iv)	The Organization shall promptly notify the Lender in writing of the occurrence of any Default
or Event of Default as well as any material default or material event of default under any Transaction Document or any other agreement
evidencing any loan to the Organization or indebtedness of the Organization, together with a reasonably detailed description thereof,
and the actions the Organization proposes to take with respect thereto.

 

    	10

    	 

    

	 	 	 
		(v)	The Organization shall give written notice to the Lender within ten (10) days of becoming aware of any litigation or other
proceedings threatened in writing or any pending litigation and other proceedings affecting the Organization and/or any of its
subsidiaries or to which the Organization and/or any of its subsidiaries is or becomes a party involving: (a) an uninsured or unindemnified
claim against the Organization and/or any of its subsidiaries that, if adversely determined, could reasonably be expected to have
a Material Adverse Effect on the Organization; or (b) any claimed Losses that are greater than the Liability Cap (as such terms
are defined in the Stock Purchase Agreement between the Organization and Ameriprise Financial, Inc. (“Ameriprise”)
dated August 16, 2011 (“Purchase Agreement”). The Organization shall give written notice to the Lender, in form and
detail satisfactory to the Lender, within ten (10) days of: (a) any judgment not covered by insurance, final or otherwise, against
the Organization or any of its subsidiaries in an amount in excess of $ 1,000,000; or (b) receipt of notice from Ameriprise that
Ameriprise will not provide indemnification for any Med Cap/Provident Claims (as defined in the Purchase Agreement).

 

		(vi)	The Organization shall do or cause to be done all things necessary to preserve and keep in full force and effect its legal
existence, rights and franchises and shall not convert to a limited liability company or a limited liability partnership. It (a)
shall cause all of its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment, (b) shall cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Organization may be necessary so that the business carried
on in connection therewith may be properly and advantageously conducted at all times, and (c) shall continue to engage primarily
in the businesses now conducted by it and its subsidiaries and in related businesses; provided that nothing in this paragraph
will prevent the Organization from discontinuing the operation and maintenance of any of its or its subsidiaries’ properties
if such discontinuance is, in the judgment of the Organization, desirable in the conduct of its or their business and all such
discontinuances do not in the aggregate have a Material Adverse Effect.

 

		(vii)	The Organization shall duly pay and discharge, or cause to be paid and discharged, before the
same shall become overdue, all taxes, assessments and other governmental charges imposed upon it and its activities, or any part
thereof, or upon the income or profits therefrom, as well as all claims for labor, materials or supplies that if unpaid might by
law become a lien or charge upon any of its property; provided that (a) any such tax, assessment, charge,
levy or claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate proceedings
and if the Organization shall have set aside on its books adequate reserves with respect thereto; (b) the Organization shall pay
all such taxes, assessments, charges, levies or claims forthwith upon the commencement of proceedings to foreclose any lien that
may have attached as security therefor or post a bond or other security to preclude foreclosure; and (c) a failure to comply with
the provisions of this Section 4(vii) shall not constitute an Event of Default unless such failure has a Material Adverse Effect
upon the Organization.

 

		(viii)	The Organization shall permit the Lender to visit and inspect any of the properties of the Organization,
to examine the books of account of the Organization (and to make copies thereof and extracts therefrom), and to discuss the affairs,
finances and accounts of the Organization with, and to be advised as to the same by, its and their officers, all at such reasonable
times and intervals as the Lender may reasonably request.

 

    	11

    	 

    

	 	 	 
		(ix)	The Organization shall comply with (a) the applicable laws and regulations wherever its business
is conducted, (b) the provisions of its governing documents, (c) all agreements and instruments by which it or any of its material
properties may be bound and (d) all applicable decrees, orders, and judgments, the failure to comply with which would constitute
a Material Adverse Effect. If any authorization, consent, approval, permit or license from any officer, agency or instrumentality
of any government shall become necessary or required in order that the Organization may fulfill any of its obligations hereunder
or any of the other Transaction Documents, the Organization shall immediately take or cause to be taken all reasonable steps within
the power of the Organization to obtain such authorization, consent, approval, permit or license and furnish the Lender with evidence
thereof.

 

		(x)	The Organization shall not use the proceeds of the Loan for any purpose that is in contravention
of any state or federal laws or regulations.

 

		(xi)	The Organization shall cooperate with the Lender and execute such further instruments and documents
as the Lender shall reasonably request to carry out to the Lender’s reasonable satisfaction the transactions contemplated
by this Agreement and the other Transaction Documents to which the Organization is a party.

 

		5.	NEGATIVE COVENANT

 

The Organization covenants and agrees that, from
and after the Effective Date, and so long as the Note is outstanding:

 

		(i)	Other than (a) indebtedness to finance customary operating expenses of the Organization that
are incurred in the ordinary course of business consistent with past practices in an aggregate amount not to exceed $1,000,000
outstanding at any time; (b) indebtedness of the Organization arising under the Frost Gamma Line of Credit which ranks as to payment
rights pari passu with (but not senior to) the obligations of the Organization to the Lender under this Agreement; (c) purchase
money indebtedness, indebtedness incurred by means of capitalized leases or other indebtedness
of the Organization the proceeds of which are used to finance an acquisition of the assets or equity interests of another entity
or of equipment or other property (“Acquisition Debt”) so long as such Acquisition Debt
ranks as to payment rights either pari passu with or junior to (but not senior to) the obligations of the Organization to
the Lender under this Agreement; (d) any renewal, refinancing, replacement or substitution of any the
foregoing, provided that any such renewal, refinancing, replacement or substitution does not result in a net increase in
overall indebtedness to the Organization; and (e) indebtedness of the Organization incurred to finance the SAFC Purchase, which
ranks as to payment rights pari passu with (but not senior to) the obligations of the Organization to the Lender under this Agreement,
the Organization shall not incur any indebtedness for borrowed money from any other lender, unless such
indebtedness is subordinate to the Organization’s obligations to Lender under this Agreement in a manner reasonably satisfactory
to the Lender. Notwithstanding the foregoing, the Organization shall not incur, without the Lender’s prior written
consent (not to be unreasonably withheld or delayed), any Acquisition Debt that (i) is used to acquire the assets or equity of
another entity, and (ii) is not subordinated to the Loan and the 2009 Loan, if, after giving effect to the incurrence of such Acquisition
Debt, the ratio of Organization’s indebtedness for borrowed money to Consolidated Adjusted Shareholders’ Equity would
exceed 4 to 1. 

 

    	12

    	 

    

	 	 	 
		(ii)	Except
(i) as set forth in the following sentence, or (ii) for SAI’s clearing agreements with Pershing LLC and its affiliates that
exist as of the Effective Date, which may be amended and extended, [*] without the prior written consent of the Lender, which
shall not unreasonably be withheld or delayed [*].

 

		6.	EVENTS OF DEFAULT; ACCELERATION; ETC.

 

		(i)	If any of the following events (“Events of Default” or, if the giving
of notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall
occur:

 

		(a)	The Organization shall fail to pay any principal on the Loan when the same shall become due and
payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment, and
does not remedy such failure within ten (10) calendar days of its occurrence, unless otherwise forgiven by the Lender as
provided in this Agreement;

 

		(b)	The Organization shall fail to pay any interest on the Loan, any fees, or other sums due
hereunder or under any of the other Loan Documents, whether at the stated date of maturity or any accelerated date of maturity
or at any other date fixed for payment, and does not remedy such failure within ten (10) calendar days
of its occurrence, unless otherwise forgiven by the Lender as provided in this Agreement;

 

    	13

    	 

    

	 	 	 
		(c)	The Organization shall fail to comply in any material respect with any of its covenants contained
in Section 4(ii), Section 4(iii), Section 4(vi) or Section 4(vii) and such failure shall not be cured to the reasonable satisfaction
of the Lender within ten (10) calendar days after receipt of notice from the Lender demanding such cure or the Organization shall
fail to comply in any material respect with any of its covenants contained in Section 4(iv), Section 4(v), Section 4(viii), Section
4(ix), Section 4(x) or Section 5 hereof, or any of the covenants contained in any of the other Loan Documents;

 

		(d)	Any representation or warranty of the Organization contained in Section 3(i), (ii) and (iii) is
deemed to have been false in any material respect upon the date when made;

 

		(e)	The Organization shall fail to pay at maturity, or within any applicable period of grace, any obligation for borrowed money
or credit received or in respect of any capitalized leases, or fail to observe or perform any material term, covenant or agreement
contained in any agreement by which it is bound, evidencing or securing borrowed money or credit received or in respect of any
capitalized leases for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or
holders thereof or of any obligations issued thereunder to accelerate the maturity thereof;

 

		(f)	The Organization or any of its Subsidiary Broker-Dealers shall make an assignment for the benefit of creditors, or admit in
writing its inability to pay or generally fail to pay its debts as they mature or become due, or shall petition or apply for the
appointment of a trustee or other custodian, liquidator or receiver of the Organization or any of its Subsidiary Broker-Dealers
or of any substantial part of the assets of the Organization or any of its Subsidiary Broker-Dealers, or shall commence any case
or other proceeding relating to the Organization or any of its Subsidiary Broker-Dealers under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter
in effect, or shall take any action to authorize or in furtherance of any of the foregoing, or if any such petition or application
shall be filed or any such case or other proceeding shall be commenced against the Organization or any of its Subsidiary Broker-Dealers
and the Organization or any of its Subsidiary Broker-Dealers shall indicate its approval thereof, consent thereto or acquiescence
therein or such petition or application shall not have been dismissed within ninety (90) days following the filing thereof;

 

		(g)	A decree or order is entered appointing any such trustee, custodian, liquidator or receiver or adjudicating the Organization
or any of its subsidiaries bankrupt or insolvent, or approving a petition in any such case or other proceeding, or a decree or
order for relief is entered in respect of the Organization or any of its subsidiaries in an involuntary case under federal bankruptcy
laws as now or hereafter constituted; provided, however, that in the event such order or decree is entered solely against a subsidiary
of the Organization and such order or decree does not have a Material Adverse Effect on the Organization, then such an order or
decree shall not be considered an Event of Default under this Section 6(i)(g);

 

    	14

    	 

    

	 	 	 
		(h)	There shall remain in force, undischarged, unsatisfied and unstayed, for more than thirty (30) days, whether or not consecutive,
any final judgment against the Organization that, with other outstanding final judgments, undischarged, against the Organization
exceeds in the aggregate $37,500,000;

 

		(i)	The Organization fails to maintain Consolidated Adjusted Shareholders’ Equity of at least $40,000,000, as determined
as of the date of any of the financial statements delivered by the Organization pursuant to Section 4(iii), subject to any cure
period contained in this Agreement;

 

		(j)	The Frost Gamma Line of Credit is in default or is terminated prior to its final term date;

 

		(k)	The SEC, The New York Stock Exchange, the Financial Industry Regulatory Authority or any other regulatory authority, including
state securities administrators, to which any of the Subsidiary Broker-Dealers is subject, suspends (and does not reinstate within
ten (10) days) or places material restrictions on (and such restrictions are not removed within fifteen (15) business days) the
Subsidiary Broker-Dealers or revokes membership of any of the Subsidiary Broker-Dealers as a member organization of any such organization
that is a self-regulatory organization and such action results in a Material Adverse Effect;

 

		(l)	Any of the 2009 Clearing Agreements or the SAI Clearing Agreement, and, in addition, any of the future clearing agreements
between the Lender and any future Affiliated B-D’s, ceases to be in full force and effect or is otherwise terminated (other
than termination by the Lender in circumstances not requiring a default by a Subsidiary Broker-Dealer party thereto) or if any
of the other Transaction Documents shall be cancelled, terminated, revoked or rescinded otherwise than in accordance with the terms
thereof or with the express prior written agreement, consent or approval of the Lender, or any action at law, suit or in equity
or other legal proceeding to cancel, revoke or rescind any of the Transaction Documents shall be commenced by or on behalf of the
Organization or any of its equity holders, or any court or any other governmental or regulatory authority or agency of competent
jurisdiction shall make a determination that, or issue a judgment, order, decree or ruling to the effect that, any one or more
of the Transaction Documents is illegal, invalid or unenforceable in accordance with the terms thereof; or

 

    	15

    	 

    

	 	 	 
		(m)	The Organization fails to remain the sole owner of any of the Subsidiary Broker-Dealers, or begins proceedings for the sale
or divestiture of any of the Subsidiary Broker-Dealers;

 

then, and in any such event, so long as the same may
be continuing, the Lender may by notice in writing to the Organization declare all amounts owing with respect to this Agreement
and the Note to be, and they shall thereupon forthwith become, immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby expressly waived by the Organization; provided that in the event of
any Event of Default specified in Section 6(i)(f) or 6(i)(g), all such amounts shall become immediately due and payable automatically
and without any requirement of notice from the Lender. Further, in the Event of Default under Sections
6(i)(c), 6(i)(d), 6(i)(f), 6(i)(g), 6(i)(i), 6(i)(k), 6(i)(l), and 6(i)(m), then, in addition to any other rights Lender may have
under this Agreement, Lender shall have the right of election to terminate this Agreement. 

 

		(ii)	In case any one or more of the Events of Default shall have occurred and be continuing, and whether
or not the Lender shall have accelerated the maturity of the Note pursuant to this Section 6, the Lender may proceed to protect
and enforce its rights by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of
any covenant or agreement contained in this Agreement and the other Loan Documents or any instrument pursuant to which the obligations
to the Lender are evidenced, including as permitted by applicable law the obtaining of the ex parte appointment of
a receiver, and, if such amount shall have become due, by declaration or otherwise, proceed to enforce the payment thereof or any
other legal or equitable right of the Lender. No remedy herein conferred upon the Lender or the holder of the Note is intended
to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy
given hereunder or now or hereafter existing at law or in equity or by statute or any other provision of law.

 

		7.	TERM

 

This Agreement shall remain in effect for an initial term of
seven (7) years from the Effective Date, upon which term any and all outstanding amounts of principal and interest on the Note
shall be immediately due and payable.

 

		8.	TERMINATION
MATERIAL EVENT

 

Notwithstanding Section 7 above, in the event of an occurrence
of a Termination Material Event, the Lender may, by notice to the Organization, declare: (a) the obligation
of the Lender under Section 2(iv) to be terminated, whereupon the same shall forthwith terminate; and (b) the entire unpaid principal
of and accrued interest on the outstanding amounts due hereunder to be, and the same shall become, due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly waived by the Organization, in accordance with the
following applicable payment schedule:

 

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In the event that the Lender issues
notice of termination under this Section 8, and the Consolidated Adjusted Shareholders’
Equity of the Organization as of the date of such termination notice is less than $25,000,000, the following payment schedule applies:

 

	
        Payment

        Period:
	 	Payable on:	 	Amount:
	Month 1	 	thirty (30) days following notice of the Termination Material Event (or, if any such last day is not a Business Day, on the next succeeding Business Day)	 	25% of the outstanding principal balance of the Loan plus all accrued and unpaid interest thereon
	Months 2-7	 	on the last day of each thirty-day period for this 6-month period (or, if any such thirty-day period that does not end on a Business Day, on the next succeeding Business Day)	 	the remaining principal balance of the Loan, plus all accrued interest thereon, in equal (as to principal) consecutive monthly installments, together with accrued interest owing through each payment date

 

In the event that the Lender issues notice of termination under
this Section 8 and the Consolidated Adjusted Shareholders’ Equity of the Organization as of the date of such termination
notice is equal to or greater than $25,000,000, the following payment schedule applies:

 

	
        Payment

        Period:
	 	Payable on:	 	Amount:
	Month 1	 	thirty (30) days following notice of the Termination Material Event (or, if any such last day is not a Business Day, on the next succeeding Business Day)	 	25% of the outstanding principal balance of the Loan plus all accrued and unpaid interest thereon
	Months 2-12	 	on the last day of each thirty-day period for this 11-month period (or, if any such thirty-day period that does not end on a Business Day, on the next succeeding Business Day)	 	the remaining principal balance of the Loan, plus all accrued interest thereon, in equal (as to principal) consecutive monthly installments, together with accrued interest owing through each payment date

 

The Organization understands and agrees that a termination under
this Section 8 shall also give the Lender the right to terminate any or all of the 2009 Clearing Agreements, the SAI Clearing Agreement
and any or all of the clearing agreements of any Affiliated Broker-Dealers on the Lender’s clearing platform. In such event
of such termination election by the Lender, each such subsidiary of the Organization shall remain liable for all charges provided
for in its respective clearing agreement, but shall not be responsible for any deconversion fees, IRA liquidation fees and termination
fees.

 

    	17

    	 

    

 

The Lender understands and agrees that a termination under this
Section 8 shall also give the Organization the right to terminate any or all of the 2009 Clearing Agreements, the SAI Clearing
Agreement and any or all of the clearing agreements of any Affiliated Broker-Dealers on the Lender’s clearing platform. In
such event of such termination election by the Organization, each such subsidiary of the Organization shall remain liable for all
charges provided for in its respective clearing agreement, but shall not be responsible for any deconversion fees, IRA liquidation
fees and termination fees.

 

		9.	RIGHT OF SET-OFF

 

The Organization hereby grants to the Lender a continuing lien,
security interest and right of setoff as security for all liabilities and obligations to the Lender under the Loan Documents, whether
now existing or hereafter arising, upon and against all deposits, credits, collateral and property of the Organization, now or
hereafter in the possession, custody, safekeeping or control of the Lender or any affiliate of the Lender and their successors
and assigns or in transit to any of them. Regardless of the adequacy of any such collateral, if any of the obligations hereunder
are due and payable and have not been paid or any Event of Default shall have occurred, any deposits or other sums credited by
or due from the Lender to the Organization and any securities or other property of the Organization in the possession of the Lender
or any of the Lender's affiliates may be applied to or set off by the Lender against the payment of such obligations and any and
all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, of
the Organization to the Lender. ANY AND ALL RIGHTS TO REQUIRE THE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO
ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
OR OTHER PROPERTY OF THE ORGANIZATION, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. Nothing contained in this
Section 9 or elsewhere in this Agreement shall create any right of the Lender or any of the Lender’s
affiliates with respect to deposits, credit, collateral and other property of the introducing broker-dealer subsidiaries of the
Organization, including the Subsidiary Broker-Dealers. Additionally, except as otherwise provided herein, nothing contained in
this Section 9 or elsewhere in this Agreement affects any of the Lender’s rights under
the 2009 Clearing Agreements and the SAI Clearing Agreement.

 

		10.	NON-WAIVER

 

Notwithstanding any forgiveness made by the Lender under this
Agreement, in the event that the Lender learns that any condition precedent to forgiveness specified in Section 2 has not been
or was not met in all material respects on the applicable
Annual Forgiveness Date, all amounts previously forgiven shall be automatically reinstated, and all interest thereon shall continue
to accrue as if such amounts were never forgiven, and the Lender shall be entitled to take any action permitted under this Agreement
and any forgiveness under those conditions shall not be deemed a waiver of the Lender’s rights hereunder.

 

    	18

    	 

    

 

 

Except as provided in Section 8, nothing in this Agreement is
intended to modify any of the terms of the 2009 Clearing Agreements and the SAI Clearing Agreement. 

   

		11.	CONFIDENTIALITY

 

The Organization acknowledges and understands that the
existence of this Agreement, the Note, and the other Transaction Documents, as well as the terms and conditions set forth therein,
are confidential and proprietary and constitute “Proprietary Information” of the Lender. The Lender acknowledges and
understands that any material information that it obtains regarding the business and affairs of the Organization and its subsidiaries
during the term of this Agreement is Proprietary Information of the Organization. Proprietary Information shall not include any
information that is legally compelled to be disclosed pursuant to a subpoena, summons, order or other judicial or governmental
process, provided the disclosing party provides prompt notice of any such subpoena, summons, order or other judicial or governmental
process to the other party so that the such party will have the opportunity to obtain a protective order.

       

The Organization and the Lender each
agrees to use its best efforts (the same being not less than that employed to protect its
own proprietary information) to safeguard the Proprietary Information and to prevent the unauthorized, negligent or inadvertent
use or disclosure thereof. Neither party shall, without the prior written approval of any officer of the other party, directly
or indirectly, disclose the Proprietary Information to any person or business entity except for a limited number of employees,
attorneys, accountants, agents and other advisors of such party on a need-to-know basis or as may be required by law or regulation,
including laws and regulations obligating a party and its subsidiaries to make filings with the SEC and other regulatory authorities
or other public disclosures. Each party shall notify the other party in the event of an unauthorized, negligent or inadvertent
disclosure of such Proprietary Information to the extent required by applicable state and federal law after analysis of the facts
and circumstances and the likelihood of harm. Each party shall be liable under this Agreement to the other party for any use or
disclosure in violation of this Agreement by its employees, attorneys, accountants, or other advisors or agents. This Section 11
shall continue in full force and effect notwithstanding the termination of this Agreement.

  

		12.	LENDER’S COVENANT

 

   

The Lender covenants and agrees that [*].

  

		13.	UPON WHOM BINDING; ASSIGNMENT

   

This Agreement shall be binding upon all successors, assigns
or transferees of both parties hereto, irrespective of any change with regard to the name of or the personnel of the Organization
or the Lender. No assignment or transfer by operation of law of this Agreement shall be valid unless the non-assigning party consents
to such an assignment in writing, provided that any assignment by the Lender to any majority-owned subsidiary that it may create
or to a company affiliated with or controlled directly or indirectly by or under common control with the Lender shall be deemed
valid and enforceable in the absence of any consent from the Organization. Neither this Agreement nor any operation hereunder
is intended to be, shall not be deemed to be, and shall not be treated as, a general or limited partnership, association or joint
venture or agency relationship between the Organization and the Lender.

 

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		14.	CHOICE OF FORUM

 

THE ORGANIZATION AND THE LENDER AGREE THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL
COURT SITTING THEREIN AND CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE
UPON THE ORGANIZATION AND THE LENDER BY REGISTERED MAIL AT THE ADDRESS SPECIFIED IN SECTION 17.
THE ORGANIZATION AND THE LENDER EACH HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT
OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT. IN THE EVENT OF ANY LEGAL ACTION TAKEN TO RESOLVE A DISPUTE
BETWEEN THE PARTIES, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER REASONABLE ATTORNEYS’ FEES AND COSTS.

 

		15.	GOVERNING LAW

 

THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS SHALL FOR
ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OR CHOICE OF LAW.

 

		16.	ENTIRE AGREEMENT; AMENDMENT

 

This Agreement, including all Exhibits, which are hereby incorporated
by reference, constitutes and expresses the entire agreement and understanding between the parties and supersedes all previous
communications, representations or agreements, whether written or oral, with respect to the subject matter hereof. This Agreement
may be modified only in a writing signed by both parties to this Agreement. Such modification shall not be deemed as a cancellation
of this Agreement.

 

		17.	NOTICES

 

Any notice, request, demand or other communication provided
for hereunder shall be in writing (except as otherwise expressly provided herein) and shall be effective as against a party when
delivered to such party at its address set forth below:

 

		(a)	If to the Organization, at 4400 Biscayne Blvd., 12th Floor, Miami, FL 33137, Attention: Richard Lampen, President
and Chief Executive Officer; and

 

		(b)	If to the Lender, at 200 Seaport Blvd., Boston, MA 02210, Attention: Chief Financial Officer.

 

or, in any of the foregoing cases, at such other address as
shall be designated by such party in a written notice to the other parties.

 

    	20

    	 

    

 

Payments of principal and interest due upon the Note shall be
made by wire transfer of immediately available funds to the following account of the Lender or to such other account as to which
the Lender shall give the Organization notice:

 

Chase Manhattan Bank

New York, NY

[*]

 

		18.	ENFORCEABILITY

 

If any provision or condition of this Agreement shall be held
to be invalid or unenforceable by any court, or regulatory or self-regulatory agency or body, such invalidity or unenforceability
shall apply only to such provision or condition. The validity of the remaining provisions and conditions shall not be affected
thereby, and this Agreement shall be carried out as if any such invalid or unenforceable provision or condition were not contained
herein.

 

		19.	EXECUTION IN COUNTERPARTS

 

This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

 

		20.	INDEMNIFICATION

 

The Organization agrees to indemnify and hold harmless the Lender
and its affiliates from and against any and all claims, actions and suits whether groundless or otherwise, and from and against
any and all liabilities, losses, damages and expenses of every nature and character arising out, or related to, of this Agreement
or any of the other Loan Documents or the transactions contemplated hereby including, without limitation: (a) any actual or proposed
use by the Organization of the proceeds of the Loan, or (b) the Organization entering into or performing this Agreement or any
of the other Loan Documents, in each case including, without limitation, the reasonable fees and disbursements of counsel incurred
in connection with any such investigation, litigation or other proceeding. In litigation, or the preparation therefor, the Lender
and its affiliates shall be entitled to select their own counsel and, in addition to the foregoing indemnity, the Organization
agrees to pay promptly the reasonable fees and expenses of such counsel. If, and to the extent that the obligations of the Organization
under this Section 20 are unenforceable for any reason, the Organization hereby agrees to make
the maximum contribution to the payment in satisfaction of such obligations which is permissible under applicable law. The covenants
contained in this Section 20 shall survive payment or satisfaction in full of all other obligations
under the Loan Documents and shall survive termination of this Agreement.

 

IN WITNESS HEREOF the parties hereto have executed this Agreement
this 4th day of November, 2011.

 

    	21

    	 

    

 

	ORGANIZATION:	 	LENDER:
	 	 	 
	LADENBURG THALMANN FINANCIAL SERVICES INC.	 	NATIONAL FINANCIAL SERVICES LLC
	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 

 

    	22

    	 

    

 

EXHIBIT A

 

Forgivable Loan Agreement Dated November
4, 2011

 

Core Fee Measure Calculation 1

 

The “Core Fee Measure Calculation” shall be calculated
as follows: For the previous twelve (12) brokerage months, for SAI but excluding any accounts that have been transferred from
either LTC, TAI, Investacorp [*] the sum of:

 

		1.	The “Clearing and Execution Expense” in the “Commission Revenue” summary section of the clearing statement
multiplied by -1, plus

		2.	The “Net Other Revenue” related to the “Volume Adjustment” and “Miscellaneous Fees” line
items in the “Other Revenue Detail” section of the clearing statement multiplied by -1, plus

		3.	The “Net Expense” in the “Expense” summary section of the clearing statement multiplied by -1, plus

		4.	The “Net Inc/(Exp)” related to the line items referenced in Table 1 below which are contained in the “Expense
Detail” section of the clearing statement, plus

		5.	The average number of IRA accounts multiplied by $[*], plus

		6.	The “Units” related to the “Custody/Rcrdkpng Fee” line item in the “Expense Detail” section
of the clearing statement multiplied by $[*], plus

		7.	Any and all expenses and fees paid by SAI on the Lender’s clearing platform to the Lender or its affiliates for technology
products and/or consulting fees.

 

	Table 1
	“Transfer
    of Asset”
	“Legals”  (Legal Transfers)
	“Transfer/Ship of Sec”
	“Extensions”
	“Mailgrams”
	“Physical Reorganizat”
	“Legal Returns”
	“Bounced Checks”
	“Stop Payment”
	“Custody/Rcrdkpng Fee”  (Inactive Account Fee)
	“Br P ATM Fees Wvd NF”  (Brokerage Access w/out Debit Card)
	“Brkrg Access w/debit”

 

 

  

1
NFS reserves the right to adjust the Core Fee Measure Calculation in the event that there is a change in the format of the clearing
statement terms or its structure.

 

    	23

    	 

    

 

	“Brkrg Port Gold” 
	“Brkrg Port Platinum”
	“IRA Fee Full Subsidy”
	“IRA Fee Part Subsidy”
	“IRA Unpaid Maint Fee”
	“IRA Termination Fee”
	“Wire Fees”
	“Alternative Investments”
	“IRA Paid Mark-ups”

   

In the event that the [*].

 

    	24

    	 

    
 

EXHIBIT B

 

Forgivable Loan Agreement Dated November
4, 2011

 

NOTE

 

November 4, 2011

 

For value received, the undersigned Ladenburg Thalmann Financial
Services Inc (the “Organization”) hereby promises to pay to the order of National Financial Services LLC (the “Lender”)
on the Final Payment Date in the manner specified in the Forgivable Loan Agreement, dated as of the date hereof between the Lender
and the Organization (the “Agreement”), the principal amount of $15,000,000 or such lesser amount which remains outstanding,
which amount evidences that certain Loan made by Lender to the Organization under the terms of the Agreement, as shown on the attached
schedule.

 

The Organization also promises to pay all principal and interest
on the dates and in the amounts required by the Agreement.

 

Principal and interest payments shall be in money of the United
States of America, lawful at such times for the satisfaction of public and private debts.

 

The Organization promises to pay costs of collection, including
reasonable attorneys' fees, if default is made in the payment of this Note.

 

The Organization, in any litigation (whether or not arising
out of or relating to this Note) in which it and the Lender shall be adverse parties, waives the rights of trial by jury, offset
and counterclaim. This Note shall be deemed to have been made and delivered in the State of New York and shall be construed under
the laws thereof. The Organization consents to the jurisdiction of the state and federal courts of the State of New York in any
action brought to enforce any rights of the Lender under this Note. The Organization agrees that services of process may be obtained
by the mailing by registered mail of a summons to the Organization’s address as same appears on the Organization's records.

 

IN WITNESS WHEREOF, the undersigned has caused this Note to
be executed by its officers or employees thereunto duly authorized and directed by appropriate corporate authority.

 

ORGANIZATION: 

 

LADENBURG THALMANN
FINANCIAL SERVICES INC. 

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

    	25

    	 

    

 

SCHEDULE 1

 

Forgiveness/Payments and Interest of
Account Referred to in the 

 

Forgivable Loan Agreement, dated November
4, 2011

 

Original Principal Amount: $15,000,000 

 

	
        Annual

        Forgiveness

        Date
	 	
        Amount 

        of 

        Principal 

        Payment
	 	
        Principal 

        Amount 

        Forgiven
	 	
        Principal 

        Amount 

        Re-Paid
	 	
        Amount of 

        Interest

        Payment
	 	
        Amount

        Of 

        Interest

        Forgiven
	 	
        Amount 

        of Interest 

        Paid
	 	
        Outstanding 

        Amount 

        After Annual

        Forgiveness

        Date
	 	Signature
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	26

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