X0201 4 2004-03-31 0001029730 LADENBURG THALMANN FINANCIAL SERVICES INC LTS 0001136903 BERLINER EFFEKTENGESELLSCHAFT AG KURFURSTENDAMM 119 BERLIN 2M 10711 0 0 1 0 7-1/2% Senior Convertible Promissory Note 2.0836 2004-03-31 4 J 0 1108565 D 2001-05-07 2005-12-31 Common Stock 1108565 0 D Pursuant to an agreement with the Issuer, the parties agreed to cancel the $1,990,000 principal amount of Senior Convertible Prommisorry Notes held by the Reporting Person, plus all accrued but unpaid interest thereon, for $1,000,000 in cash. Represents the total number of shares of the Issuer's common stock issuable upon conversion of the principal, plus all accrued but unpaid interest thereon, of the Senior Convertible Promissory Notes held by the Reporting Person as of the date of the transaction reported on. /s/ Holger Timm, CEO 2004-03-31