X0202 4 2006-07-18 0001029730 LADENBURG THALMANN FINANCIAL SERVICES INC LTS 0001053471 LORBER HOWARD M C/O NEW VALLEY CORPORATION 100 S.E. SECOND STREET MIAMI FL 33131 1 0 0 0 Stock Option (Right to Buy) .88 2006-07-18 4 A 0 300000 .88 A 2016-07-17 Common Stock 300000 300000 D The option is subject to and conditioned upon the Company's stockholders approving an amendment to the Company's 1999 Performance Equity Plan to increase the number of shares available for award under such Plan. The option will vest in four equal annual installments commencing on the one year anniversary of the date of grant provided that Mr. Lorber is then still a director of the Company. /s/ Howard M. Lorber 2006-07-19