Document:

Subscription Agreement

 

Exhibit 10.2

SUBSCRIPTION AGREEMENT AND INVESTOR INFORMATION STATEMENT

     Ladenburg Thalmann Financial Services Inc. (the “Company”) and Lawrence B. Weissman (the
“Investor”) hereby agree as follows:

     1. Subscription for Securities. Investor hereby subscribes for and agrees to purchase
1,000,000 shares of Common Stock (“Share(s)”) at $0.45 per share upon the terms and conditions
described in this Agreement.

     2. Investor Deliveries. On the Closing Date (as hereafter defined), the Investor
shall wire to the Company the sum of $450,000, representing full payment for the Shares.
Certificates representing the Shares will be delivered to the Investor as soon thereafter as
practicable. “Closing Date” shall mean the date mutually agreed to by the Company and Investor
promptly after approval by the American Stock Exchnage, but not later than three business days
after such approval.

     3. Investor Representations and Warranties. Investor acknowledges, represents and
warrants to the Company as follows:

          (a) Information about the Company. Investor has read the Company’s recent filings
under the Securities Exchange Act of 1934 (“Exchange Act”). Investor has been given access to full
and complete information regarding the Company and has utilized such access to his satisfaction for
the purpose of verifying the information included in those filings. Investor has either met with
or been given reasonable opportunity to meet with officers of the Company for the purpose of asking
reasonable questions of such officers concerning the terms and conditions of the offering of the
Shares and the business and operations of the Company and all such questions have been answered to
Investor’s full satisfaction. Investor has been given an opportunity to obtain any additional
relevant information to the extent reasonably available to the Company. Investor has received all
information and materials regarding the Company that he has reasonably requested.

          (b) Speculative Investment. Investor is aware that the Shares are a speculative
investment that involve a high degree of risk including, but not limited to, the risk of losses
from operations of the Company and the total loss of his investment. Investor acknowledges and is
aware that there is no assurance as to the future performance of the Company. Investor has such
knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Shares and has obtained, in his judgment, sufficient
information from the Company to evaluate the merits and risks of an investment in the Company.
Investor has not utilized any person as his purchaser representative (as defined in Regulation D)
in connection with evaluating such merits and risks and has relied solely upon his own
investigation in making a decision to invest in the Company. Investor believes that the investment
in the Shares is suitable for him based upon his investment objectives and financial needs, and
Investor has adequate means for providing for his current financial needs and contingencies and has
no need for liquidity with respect to his investment in the Company.

          (c) Restrictions on Transfer. Investor understands that (i) the Shares have not been
registered under the Securities Act of 1933 (“Securities Act”) or the securities laws of certain
states in reliance on specific exemptions from registration, (ii) no securities administrator of
any state or the federal government has recommended or endorsed this offering of Shares or made any
finding or determination relating to the fairness of an investment in the Company, and (iii) the
Company is relying on his representations and agreements for the purpose of determining whether
this transaction meets the requirements of the exemptions afforded by the Securities Act and
certain state securities laws. Investor understands and agrees that the Shares cannot be resold,
pledged, assigned or otherwise disposed of unless they are subsequently registered under the
Securities Act and under applicable securities laws of certain states, or an exemption from such
registration is available. Investor acknowledges that, notwithstanding the Company’s commitment
described below in

 

 

Section 4, there can be no assurance that the Company will be able to keep the Registration
Statement (defined below) effective until he sells the Shares registered thereon.

          (d) No Market for Shares. Investor is purchasing the Shares for his own account for
investment and not with a view to, or for sale in connection with, any subsequent distribution of
the Shares, nor with any present intention of selling or otherwise disposing of all or any part of
the Shares. Investor understands that, although there is a public market for the Shares, there is
no assurance that such market will continue.

     4. Registration Rights. Promptly following the date hereof, the Company shall use its
best efforts to file and keep in effect a Registration Statement on Form S-8 or other applicable
form to register under the Act the resale of the Shares.

     5. Lock-up and Insider Trading Policy. The Investor agrees that he will not sell,
assign or transfer any of the Shares until November 15, 2005, except to an Immediate Family Member
who shall agree to continue to be bound by this restriction. Investor understands that he will be
required to abide by all of the Company’s policies in effect, including the Company’s Insider
Trading Policy, with respect to the ownership and trading of the Company’s securities.

     6. Indemnification. Investor hereby agrees to indemnify and hold harmless the
Company, its respective officers, directors, stockholders, employees, agents and attorneys against
any and all losses, claims, demands, liabilities, and expenses (including reasonable legal or other
expenses incurred by each such person in connection with defending or investigating any such claims
or liabilities, whether or not resulting in any liability to such person or whether incurred by the
indemnified party in any action or proceeding between the indemnitor and indemnified party or
between the indemnified party and any third party) to which any such indemnified party may become
subject, insofar as such losses, claims, demands, liabilities and expenses (a) arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact made by Investor and
contained herein or (b) arise out of or are based upon any breach by Investor of any
representation, warranty or agreement made by him contained herein.

     7. Governing Law and Jurisdiction. This Subscription Agreement will be deemed to have
been made and delivered in New York City and will be governed as to validity, interpretation,
construction, effect and in all other respects by the internal laws of the State of New York. Each
of the Company and the Investor hereby (i) agrees that any legal suit, action or proceeding arising
out of or relating to this Subscription Agreement will be instituted exclusively in New York State
Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, (ii) waives any objection to the venue of any such suit, action or proceeding and the
right to assert that such forum is not a convenient forum for such suit, action or proceeding,
(iii) irrevocably consents to the jurisdiction of the New York State Supreme Court, County of New
York, and the United States District Court for the Southern District of New York in any such suit,
action or proceeding, (iv) agrees to accept and acknowledge service of any and all process that may
be served in any such suit, action or proceeding in New York State Supreme Court, County of New
York or in the United States District Court for the Southern District of New York and (v) agrees
that service of process upon it mailed by certified mail to its address set forth on my signature
page will be deemed in every respect effective service of process upon it in any suit, action or
proceeding.

     8. Counterparts. This Subscription Agreement may be executed in one or more
counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. The execution of this Subscription Agreement may be by actual or
facsimile signature.

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     9. Benefit. Except as otherwise set forth herein, this Subscription Agreement is
binding upon and inures to the benefit of the parties hereto and their respective heirs, executors,
personal representatives, successors and assigns.

     10. Notices. All notices, offers, acceptance and any other acts under this
Subscription Agreement (except payment) must be in writing, and is sufficiently given if delivered
to the addressees in person, by overnight courier service, or, if mailed, postage prepaid, by
certified mail (return receipt requested), and will be effective three days after being placed in
the mail if mailed, or upon receipt or refusal of receipt, if delivered personally or by courier or
confirmed telecopy, in each case addressed to a party. All communications to me should be sent to
Investor’s residence address on the signature page hereto. All communications to the Company
should be sent to:

Ladenburg Thalmann Financial Services Inc.

590 Madison Avenue, 34th Floor

New York, New York 10022

Attn: Sal Giardina, Chief Financial Officer

     11. Entire Agreement. This Subscription Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior oral and
written agreements between the parties hereto with respect to the subject matter hereof. In the
event any parts of this Subscription Agreement are found to be void, the remaining provisions of
this Subscription Agreement are nevertheless binding with the same effect as though the void parts
were deleted. This Subscription Agreement may not be changed, waived, discharged, or terminated
orally, but rather, only by a statement in writing signed by the party or parties against which
enforcement or the change, waiver, discharge or termination is sought.

     12. Section Headings. Section headings herein have been inserted for reference only
and will not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in
whole or in part, any of the terms or provisions of this Subscription Agreement.

     13. Survival of Representations, Warranties and Agreements. The representations,
warranties and agreements contained herein will survive the delivery of, and the payment for, the
Shares.

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SIGNATURE PAGE FOR INDIVIDUAL INVESTORS - COMPLETE ALL INFORMATION

	 	 	 	 	 
	Name:

	 	Lawrence B. Weissman	 	 
	 
	 	 	 	 
	Residence Address:

	 	________________________________	 	 
	 
	 	 	 	 
	Telephone:

	 	(H) ____________  (W) ___________ (Cell) __________	 	
	 
	 	 	 	 
	Social
Securities Number:

	 	________________________________	 	 
	 
	 	 	 	 
	Amount of Investment:
	 	 	 	 
	 
	 	 	 	 
	Number of Shares: 1,000,000
	 	 	 	 

Corresponding dollar amount ($0.45 multiplied by number of Shares): $450,000

Accredited Investor Status For Individuals.

          (i) I am an accredited investor within the meaning of Section 2(15) of the Securities Act and
Rule 501 promulgated thereunder because (check any boxes that apply):

	 	 	 
	 ̈

	 	My individual annual income during each of the two most
recent years exceeded $200,000 and I expect my annual income
during the current year will exceed $200,000.
	 
	 	 
	 ̈

	 	If I am married, my joint annual income with my spouse
during each of the two most recent years exceeded $300,000
and I expect my joint annual income with my spouse during the
current year will exceed $300,000.
	 
	 	 
	 ̈

	 	My individual or joint (together with my spouse) net
worth (including my home, home furnishings and automobiles)
exceeds $1,000,000.

     I hereby confirm the information set forth above is true and correct in all respects as of the
date hereof and will be on the date of the purchase of Shares.

	 	 	 
	 

	 	The foregoing subscription is accepted and the
Company hereby agrees to be bound by its terms.
	 
	 	 
	 

	 	LADENBURG THALMANN FINANCIAL SERVICES INC.
	 
	 	 
	 

	 	By: /s/ Salvatore Giardina
	 
	 	 
	 

	 	Name: Salvatore Giardina
	 
	 	 
	Signature:
	 	 
	 
	 	 
	Print Name: Lawrence B. Weissman

	 	Title: Vice President and Chief Financial Officer
	 
	 	 
	Date:
As of July 18, 2005

	 	Date: As of July 18, 2005

4Letter Agreement

 

Exhibit 10.3

LADENBURG THALMANN FINANCIAL SERVICES INC.

590 Madison Avenue, 34th Floor

New York, NY 10022

As of July 18, 2005

Mr. Lawrence B. Weissman

58 Stonewall Circle

West Harrison, NY 10604

Dear Mr. Weissman:

     We are pleased to inform you that, pending approval from the American Stock Exchange,
Ladenburg Thalmann Financial Services Inc. (the “Company”) has granted you the right to purchase,
and you have agreed to purchase (“Stock Purchase Obligation”), 1,000,000 shares of the Company’s
common stock, par value $.0001 per share (the “Common
Stock”), at a purchase price of $0.58 per
share (the shares of Common Stock to be purchased are referred to hereinafter as the “Shares”).
Capitalized forms used and not otherwise defined herein shall have the meanings ascribed to them in
the employment agreement of even date herewith between you and the Company (“Employment
Agreement”).

     1. Subject to the terms hereof, you shall purchase the Shares from time to time on or prior to
July 17, 2015 (after which the Stock Purchase Obligation will, to the extent not previously
consummated, expire).

     2. All Shares must be purchased for cash. While you are an employee of the Company, the Stock
Purchase Obligation shall be consummated and you shall purchase Shares only through the use of your
compensation (withheld from Employee’s net payroll after withholding and applied quarterly to the
purchase price for the shares, all in accordance with the Stock Purchase Agreement) in excess of
$1,200,000 payable to Employee per calendar year (pro-rated for 2005) from and after the
Commencement Date. The Company shall withhold such payments from your net payroll after
withholding and apply them quarterly to the purchase price for the Shares. Certificates evidencing
the Shares shall be issued promptly thereafter. You acknowledge and understand that the Stock
Purchase Obligation is not an option and that you are contractually committed to purchase Shares
using your cmmissions in accordance with the terms hereof.

     3. In the event that your employment is terminated by reason of your death or Disability, the
Stock Purchase Obligation shall remain effective for a period of one year following termination of
employment, but not later than July 17, 2015. In the event your employment is terminated for any
reason other than death or Disability, the Stock Purchase Obligation shall thereupon terminate;
provided, however, that if your employment is terminated by the Company without Cause or by you for
Good Reason, then the Stock Purchase Obligation

 

 

shall remain effective for a period of three months following termination of employment, but
not later than July 17, 2015. In the event of your death or Disability, the Stock Purchase
Obligation may be consummated and Shares may be purchased by your personal representative or
representatives, or by the person or persons to whom your rights under the Stock Purchase
Obligation shall pass by will or by the applicable laws of descent and distribution.

     4. The Stock Purchase Obligation is not transferable except by will or the applicable laws of
descent and distribution. Notwithstanding the foregoing, with the approval of the Compensation
Committee, you may transfer the Stock Purchase Obligation (i) (A) by gift, for no consideration, or
(B) pursuant to a domestic relations order, in either case, to or for the benefit of your
“Immediate Family” (as defined below), or (ii) to an entity in which you and/or members of your
Immediate Family own more than fifty percent of the voting interest, in exchange for an interest in
that entity, provided that such transfer is being made for estate, tax and/or personal planning
purposes and will not have adverse tax consequences to the Company and subject to such limits as
the Compensation Committee may establish and the execution of such documents as the Compensation
Committee may require. In such event, the transferee shall remain subject to all the terms and
conditions applicable to the Stock Purchase Obligation prior to such transfer. The term “Immediate
Family” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law or sister-in-law, including adoptive relationships, any person sharing your
household (other than a tenant or employee), a trust in which these persons have more than fifty
percent beneficial interest, and a foundation in which these persons (or you) control the
management of the assets.

     5. In the event of any change in the shares of Common Stock of the Company as a whole
occurring as the result of a stock split, reverse stock split, stock dividend payable on shares of
Common Stock, combination or exchange of shares, or other extraordinary or unusual event occurring
after the date hereof, the Board of Directors of the Company (the “Board”) shall make appropriate
adjustments in the terms of the Stock Purchase Obligation to preserve the economic interest of the
grant. Any such adjustments will be made by the Board, whose determination will be final, binding
and conclusive.

     6. The Stock Purchase Obligation does not confer on you any right to continue in the employ of
the Company or any of its subsidiaries or affiliates or interfere in any way with the right of the
Company or its subsidiaries or affiliates to terminate the term of your employment.

     7. The Company shall require as a condition to the purchase of any Shares that you pay to the
Company, or make other arrangements regarding the payment of, any federal state or local taxes
required by law to be withheld as a result of such purchase.

     8. Unless at the time of the purchase of any Shares a registration statement under the
Securities Act of 1933, as amended (the “Act”), is in effect as to the Shares, the Shares shall be
acquired for investment and not for sale or distribution, and if the Company so requests, upon the
purchase of any Shares, you agree to execute and deliver to the Company a reasonable certificate to
such effect.

2

 

     9. You agree to abide by all of the Company’s policies in effect at the time you acquire any
Shares and thereafter, including the Company’s Insider Trading Policy, with respect to the
ownership and trading of the Company’s securities.

     10. The Company represents and warrants to you as follows: (i) this Agreement and the Stock
Purchase Obligation hereunder have been authorized by all necessary corporate action by the Company
and this letter is a valid and binding Agreement of the Company enforceable against the Company in
accordance with its terms; (ii) the Company will obtain, at its expense, any regulatory approvals
necessary or advisable in connection with the Stock Purchase Obligation or the issuance of the
Shares; and (iii) the Company currently has reserved and available, and will continue to have
reserved and available during the term of the Stock Purchase Obligation, sufficient authorized and
issued shares of its Common Stock for issuance upon purchase by you hereunder.

     11. Promptly following the date hereof, the Company shall use its best efforts to file and
keep in effect a Registration Statement on Form S-8 or other applicable form to register under the
Act the resale of the Shares purchasable by you.

     12. This Agreement contains all the understandings between the Company and you pertaining to
the matters referred to herein, and supercedes all undertakings and agreements, whether oral or in
writing, previously entered into by the Company and you with respect hereto. No provision of this
Agreement may be amended or waived unless such amendment or waiver is agreed to in writing signed
by you and a duly authorized officer of the Company. No waiver by the Company or you 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 a similar or dissimilar condition or provision at the same
time, any prior time or any subsequent time. If any provision of this Agreement or the application
of any such provision to any party or circumstances shall be determined by any court of competent
jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the
application of such provision to such person or circumstances other than those to which it is so
determined to be invalid and unenforceable, shall not be affected thereby, and each provision
hereof shall be validated and shall be enforced to the fullest extent permitted by law. This
Agreement will be governed by and construed in accordance with the laws of the State of New York,
without regard to its conflicts of laws principles. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

3

 

     Would you kindly evidence your acceptance of the Option and your agreement to comply with the
provisions hereof by executing this Agreement in the space provided below.

	 	 	 	 	 
	 	Very truly yours,

LADENBURG THALMANN FINANCIAL
SERVICES INC.

 	 
	 	By:  	/s/ Salvatore Giardina
 	 
	 	 	Salvatore Giardina 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

AGREED TO AND ACCEPTED:

	 	 	 	 	 
	 	_________________________________

LAWRENCE B. WEISSMAN

 	 
	 	 	 
	 	 	 
	 	 	 
	 

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