Letter Agreement Regarding Waiver and Bonus Adjustment between Victor Rivas and Ladenburg Thalmann Financial Services Inc.

Summary

Victor Rivas and Ladenburg Thalmann Financial Services Inc. (and its subsidiary Ladenburg Thalmann & Co. Inc.) agree that, due to the company's financial condition, Mr. Rivas will waive his right to participate in the Special Performance Incentive Plan and any related payments from September 1, 2002 to December 31, 2002. Additionally, for the period from January 1, 2002 to August 31, 2002, $400,000 of his guaranteed bonus will be credited against amounts due under the incentive plan. Both parties acknowledge and accept these changes.

EX-10.3 5 g79354exv10w3.txt LETTER AGREEMENT WITH VICTOR RIVAS Exhibit 10.3 October 10, 2002 Ladenburg Thalmann Financial Services Inc. Ladenburg Thalmann & Co. Inc. 590 Madison Avenue, 34th Floor New York, New York 10022 RE: EMPLOYMENT AGREEMENT Gentlemen: Reference is made to my Employment Agreement (the "Agreement"), dated as of February 8, 2001, with Ladenburg Thalmann & Co. Inc. In light of the current financial condition of Ladenburg Thalmann Financial Services Inc. ("LTS") and its subsidiaries, I hereby waive, for the period September 1, 2002 to December 31, 2002, my participation in LTS's Special Performance Incentive Plan (the "Plan") and any payments due to me under the Plan for such period. In addition, I also agree that, for the period January 1, 2002 to August 31, 2002, $400,000 of my Guaranteed Bonus (as defined in the Agreement) shall be credited on a pro rata basis ($266,667) against any amounts due to me under the Plan. Sincerely, /s/ Victor M. Rivas Victor M. Rivas Acknowledged and agreed this 10th day of October, 2002 Ladenburg Thalmann Financial Services Inc. By: /s/ VICTOR M. RIVAS --------------------------------- Ladenburg Thalmann & Co. Inc. By: /s/ VICTOR M. RIVAS ---------------------------------