Document:

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE  UPON EXERCISE OF
         THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE COMMON
         STOCK  ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED
         FOR SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE
         REGISTRATION  STATEMENT  AS TO  THIS  WARRANT  UNDER  SAID  ACT AND ANY
         APPLICABLE  STATE  SECURITIES LAWS OR AN OPINION OF COUNSEL  REASONABLY
         SATISFACTORY   TO  NATIONAL   INVESTMENT   ADVISERS,   INC.  THAT  SUCH
         REGISTRATION IS NOT REQUIRED.

            Right to Purchase up to 700,000 Shares of Common Stock of
                        National Investment Managers Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                                   Issue Date: May 30, 2006

      National Investment Managers Inc., a corporation  organized under the laws
of the State of  Florida  (the  "Company"),  hereby  certifies  that,  for value
received,  LAURUS  MASTER FUND,  LTD., or assigns (the  "Holder"),  is entitled,
subject to the terms set forth below,  to purchase  from the Company (as defined
herein)  from and after the Issue Date of this  Warrant  and at any time or from
time to time before 5:00 p.m., New York time,  through the close of business May
30, 2011 (the  "Expiration  Date"),  up to 700,000 fully paid and  nonassessable
shares of Common Stock (as hereinafter defined),  $0.001 par value per share, at
the  applicable  Exercise  Price per share (as  defined  below).  The number and
character of such shares of Common Stock and the  applicable  Exercise Price per
share are subject to adjustment as provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company" shall include National  Investment  Advisors,
      Inc.  and any  person  or  entity  which  shall  succeed,  or  assume  the
      obligations of, National Investment Advisors, Inc. hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value $0.001 per share;  and (ii) any other  securities  into which or
      for which any of the securities  described in the preceding clause (i) may
      be  converted  or  exchanged  pursuant  to  a  plan  of  recapitalization,
      reorganization, merger, sale of assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive,  or shall have  received,  on the  exercise of the
      Warrant,  in lieu of or in addition to Common Stock,  or which at any time
      shall  be  issuable  or shall  have  been  issued  in  exchange  for or in
      replacement of Common Stock or Other  Securities  pursuant to Section 4 or
      otherwise.

<PAGE>

            (d) The  "Exercise  Price"  applicable  under this Warrant  shall be
      $0.1667 per share.

      1. Exercise of Warrant.

            1.1.  Number of Shares  Issuable upon  Exercise.  From and after the
date hereof  through and  including  the  Expiration  Date,  the Holder shall be
entitled  to receive,  upon  exercise  of this  Warrant in whole or in part,  by
delivery of an original or fax copy of an exercise  notice in the form  attached
hereto  as  Exhibit A (the  "Exercise  Notice"),  shares of Common  Stock of the
Company, subject to adjustment pursuant to Section 4.

            1.2. Fair Market Value. For purposes hereof, the "Fair Market Value"
of a share of Common Stock as of a particular  date (the  "Determination  Date")
shall mean:

            (a) If the  Company's  Common Stock is traded on the American  Stock
      Exchange or another national  exchange or is quoted on the National Market
      or Capital  Market of The Nasdaq Stock  Market,  Inc.("Nasdaq"),  then the
      closing or last sale price,  respectively,  reported for the last business
      day immediately preceding the Determination Date.

            (b) If the  Company's  Common  Stock is not  traded on the  American
      Stock Exchange or another national exchange or on the Nasdaq but is traded
      on the NASD Over the Counter Bulletin Board,  then the mean of the average
      of the  closing  bid and  asked  prices  reported  for the  last  ten (10)
      business days immediately preceding the Determination Date.

            (c) Except as provided in clause (d) below, if the Company's  Common
      Stock is not publicly traded,  then as the Holder and the Company agree or
      in the absence of agreement by  arbitration  in accordance  with the rules
      then in effect of the American  Arbitration  Association,  before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

            (d)  If  the  Determination  Date  is  the  date  of a  liquidation,
      dissolution  or  winding  up,  or any event  deemed  to be a  liquidation,
      dissolution  or winding up pursuant  to the  Company's  charter,  then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such  liquidation,  dissolution or winding up,
      plus all other  amounts to be  payable  per share in respect of the Common
      Stock in liquidation under the charter,  assuming for the purposes of this
      clause  (d) that all of the  shares of Common  Stock  then  issuable  upon
      exercise of the Warrant are outstanding at the Determination Date.

            1.3.  Company  Acknowledgment.  The Company will, at the time of the
exercise of this Warrant,  upon the request of the holder hereof  acknowledge in
writing its  continuing  obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the  provisions  of this  Warrant.  If the  holder  shall  fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

                                       2
<PAGE>

            1.4. Trustee for Warrant Holders.  In the event that a bank or trust
company  shall have been  appointed  as trustee for the holders of this  Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as  hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

      2. Procedure for Exercise.

            2.1. Delivery of Stock Certificates,  Etc., on Exercise. The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of  business  on the date on which  this  Warrant  shall  have been
surrendered and payment made for such shares in accordance herewith.  As soon as
practicable  after the exercise of this  Warrant in full or in part,  and in any
event  within  three (3) business  days  thereafter,  the Company at its expense
(including  the payment by it of any  applicable  issue  taxes) will cause to be
issued in the name of and  delivered  to the  Holder,  or as such  Holder  (upon
payment  by  such  Holder  of any  applicable  transfer  taxes)  may  direct  in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

            2.2. Exercise.

            (a)  Payment  may be made  either  (i) in cash  or by  certified  or
      official  bank  check  payable  to the order of the  Company  equal to the
      applicable  aggregate Exercise Price, (ii) by delivery of this Warrant, or
      shares of Common Stock and/or  Common Stock  receivable  upon  exercise of
      this Warrant in accordance  with the formula set forth in  subsection  (b)
      below, or (iii) by a combination of any of the foregoing methods,  for the
      number  of  Common  Shares  specified  in such  Exercise  Notice  (as such
      exercise  number shall be adjusted to reflect any  adjustment in the total
      number of shares of Common  Stock  issuable to the Holder per the terms of
      this  Warrant) and the Holder  shall  thereupon be entitled to receive the
      number of duly authorized,  validly issued,  fully-paid and non-assessable
      shares  of  Common  Stock (or Other  Securities)  determined  as  provided
      herein.

            (b)  Notwithstanding  any provisions herein to the contrary,  if the
      Fair  Market  Value of one  share of  Common  Stock  is  greater  than the
      Exercise Price (at the date of calculation as set forth below), in lieu of
      exercising  this Warrant for cash,  the Holder may elect to receive shares
      equal to the value (as  determined  below) of this Warrant (or the portion
      thereof  being  exercised)  by surrender of this Warrant at the  principal
      office of the Company together with the properly  endorsed Exercise Notice
      in which event the Company shall issue to the Holder a number of shares of
      Common Stock computed using the following formula:

                                       3
<PAGE>

X=          Y(A-B)
            ------
              A

Where X =   the number of shares of Common Stock to be issued to the Holder

Y=          the number of shares of Common Stock  purchasable under this Warrant
            or,  if only a  portion  of this  Warrant  is being  exercised,  the
            portion  of  this  Warrant  being  exercised  (at  the  date of such
            calculation)

A=          the Fair Market Value of one share of the Company's Common Stock (at
            the date of such calculation)

B=          the  Exercise  Price  per  share  (as  adjusted  to the date of such
            calculation)

      3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

            3.1. Reorganization, Consolidation, Merger, Etc. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the Company  whereby  the  Holder,  on the
exercise  hereof as provided in Section 1 at any time after the  consummation of
such  reorganization,  consolidation  or  merger or the  effective  date of such
dissolution,  as the case may be, shall receive, in lieu of the Common Stock (or
Other  Securities)  issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property  (including cash) to
which  such  Holder  would  have  been  entitled  upon such  consummation  or in
connection  with such  dissolution,  as the case may be, if such  Holder  had so
exercised  this  Warrant,  immediately  prior  thereto,  all  subject to further
adjustment thereafter as provided in Section 4.

            3.2.  Dissolution.  In the event of any  dissolution  of the Company
following the transfer of all or substantially  all of its properties or assets,
the Company,  concurrently with any distributions  made to holders of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder  pursuant to Section  3.1,  or, if the Holder shall so
instruct the  Company,  to a bank or trust  company  specified by the Holder and
having  its  principal  office in New York,  NY as trustee  for the Holder  (the
"Trustee").

            3.3. Continuation of Terms. Upon any reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property  (including  cash, where  applicable)  receivable by the
Holder will be delivered to the Holder or the Trustee as contemplated by Section
3.2.

                                       4
<PAGE>

      4.  Extraordinary  Events  Regarding  Common Stock.  In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding Common Stock or any preferred stock issued by
the Company (b) subdivide its outstanding shares of Common Stock, or (c) combine
its  outstanding  shares of the Common Stock into a smaller  number of shares of
the  Common  Stock,  then,  in  each  such  event,  the  Exercise  Price  shall,
simultaneously  with the happening of such event, be adjusted by multiplying the
then Exercise Price by a fraction, the numerator of which shall be the number of
shares of  Common  Stock  outstanding  immediately  prior to such  event and the
denominator  of which shall be the number of shares of Common Stock  outstanding
immediately  after such event,  and the product so obtained shall  thereafter be
the Exercise Price then in effect. The Exercise Price, as so adjusted,  shall be
readjusted  in the same manner upon the  happening  of any  successive  event or
events  described herein in this Section 4. The number of shares of Common Stock
that the Holder shall thereafter,  on the exercise hereof as provided in Section
1,  be  entitled  to  receive  shall  be  adjusted  to a  number  determined  by
multiplying  the number of shares of Common Stock that would  otherwise (but for
the  provisions of this Section 4) be issuable on such exercise by a fraction of
which (a) the numerator is the Exercise Price that would  otherwise (but for the
provisions  of this  Section 4) be in  effect,  and (b) the  denominator  is the
Exercise  Price in effect on the date of such exercise  (taking into account the
provisions of this Section 4). Notwithstanding the foregoing,  in no event shall
the Exercise Price be less than the par value of the Common Stock.

      5.  Certificate  as to  Adjustments.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of this  Warrant,  the Company at its expense will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of this  Warrant  and prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each such  certificate to the Holder and any Warrant agent of the
Company (appointed pursuant to Section 11 hereof).

      6.  Reservation  of Stock,  Etc.,  Issuable on  Exercise  of Warrant.  The
Company will at all times  reserve and keep  available,  solely for issuance and
delivery  on the  exercise  of this  Warrant,  shares of Common  Stock (or Other
Securities) from time to time issuable on the exercise of this Warrant.

                                       5
<PAGE>

      7. Assignment;  Exchange of Warrant. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by any  registered  holder hereof (a  "Transferor")  in whole or in
part,  provided  that the  Holder  may not  assign  its  rights  hereunder  to a
competitor  of either the  Company or a  Subsidiary  of the  Company,  or to any
person or entity affiliated with such competitor.  On the surrender for exchange
of this  Warrant,  with the  Transferor's  endorsement  in the form of Exhibit B
attached hereto (the "Transferor  Endorsement  Form") and together with evidence
reasonably satisfactory to the Company demonstrating  compliance with applicable
securities laws,  which shall include,  without  limitation,  the provision of a
legal opinion from the Transferor's  counsel (at the Transferor's  expense) that
such  transfer  is  exempt  from the  registration  requirements  of  applicable
securities  laws, the Company at its expense (but with payment by the Transferor
of any applicable  transfer  taxes) will issue and deliver to or on the order of
the  Transferor  thereof  a new  Warrant  of  like  tenor,  in the  name  of the
Transferor  and/or the  transferee(s)  specified in such Transferor  Endorsement
Form  (each a  "Transferee"),  calling  in the  aggregate  on the  face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

      8. Replacement of Warrant. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      9. Registration  Rights. The Holder has been granted certain  registration
rights by the Company. These registration rights are set forth in a Registration
Rights  Agreement  entered  into by the Company and Holder  dated as of the date
hereof,  as the same may be amended,  modified and/or  supplemented from time to
time.

      10. Maximum Exercise.  Notwithstanding anything herein to the contrary, in
no event shall the Holder be entitled to exercise any portion of this Warrant in
excess of that portion of this Warrant upon exercise of which the sum of (1) the
number of  shares  of Common  Stock  beneficially  owned by the  Holder  and its
Affiliates  (other than shares of Common Stock which may be deemed  beneficially
owned  through the  ownership of the  unexercised  portion of the Warrant or the
unexercised or  unconverted  portion of any other security of the Holder subject
to a limitation on conversion analogous to the limitations contained herein) and
(2) the  number of shares of Common  Stock  issuable  upon the  exercise  of the
portion of this Warrant with respect to which the  determination of this proviso
is being  made,  would  result in  beneficial  ownership  by the  Holder and its
Affiliates of any amount  greater than 4.99% of the then  outstanding  shares of
Common Stock (whether or not, at the time of such  exercise,  the Holder and its
Affiliates  beneficially own more than 4.99% of the then  outstanding  shares of
Common Stock).  As used herein,  the term "Affiliate" means any person or entity
that, directly or indirectly through one or more intermediaries,  controls or is
controlled by or is under common control with a person or entity,  as such terms
are used in and construed  under Rule 144 under the Securities Act. For purposes
of the proviso to the second preceding sentence,  beneficial  ownership shall be
determined in accordance  with Section 13(d) of the  Securities  Exchange Act of
1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
in clause  (1) of such  proviso.  The  limitations  set forth  herein (x) may be
waived by the Holder upon  provision of no less than  sixty-one  (61) days prior
notice to the Company and (y) shall automatically become null and void following
notice to the Company upon the occurrence and during the continuance of an Event
of Default (as defined in the Note referred to in the Purchase  Agreement  dated
as of the date hereof  among the Holder and the Company (as  amended,  modified,
restated and/or supplemented from time to time, the "Purchase Agreement")).

                                       6
<PAGE>

      11. Warrant  Agent.  The Company may, by written notice to the each Holder
of the  Warrant,  appoint an agent for the purpose of issuing  Common  Stock (or
Other  Securities)  on the  exercise  of this  Warrant  pursuant  to  Section 1,
exchanging  this  Warrant  pursuant  to Section 7, and  replacing  this  Warrant
pursuant  to  Section  8,  or any of the  foregoing,  and  thereafter  any  such
issuance,  exchange or  replacement,  as the case may be,  shall be made at such
office by such agent.

      12. Transfer on the Company's Books.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      13. Notices, Etc. All notices and other communications from the Company to
the Holder shall be mailed by first class registered or certified mail,  postage
prepaid, at such address as may have been furnished to the Company in writing by
such Holder or, until any such Holder furnishes to the Company an address,  then
to, and at the address of, the last  Holder who has so  furnished  an address to
the Company.

      14. Grant of Irrevocable Proxy.

            For good and  valuable  consideration,  receipt  of which is  hereby
acknowledged,  Laurus Master Fund, Ltd., hereby appoints the Company (the "Proxy
Holder"),  with a mailing address at 830 Third Avenue,  New York, NY 10022, with
full power of substitution,  as proxy, to vote all shares of Common Stock of the
Company,  now or in the future owned by Laurus Master Fund,  Ltd., but solely to
the extent issuable upon exercise of this Warrant (the "Shares").

            This proxy is  irrevocable  and coupled with an  interest.  Upon the
sale or other transfer of the Shares,  in whole or in part, or the assignment of
this Warrant, this proxy shall automatically  terminate (x) with respect to such
sold or  transferred  Shares at the time of such sale and/or  transfer,  and (y)
with respect to all Shares in the case of an assignment of this Warrant,  at the
time of such  assignment,  in each case,  without any further action required by
any person.

            Laurus  Master Fund,  Ltd.  shall use its best efforts to forward to
Proxy Holder within two (2) business days following  Laurus Master Fund,  Ltd.'s
receipt thereof,  at the address for Proxy Holder set forth above, copies of all
materials  received by Laurus Master Fund, Ltd.  relating,  in each case, to the
solicitation of the vote of shareholders of the Company.

            This proxy shall  remain in effect with respect to the Shares of the
Company during the period commencing on the date hereof and continuing until the
payment  in full of all  obligations  and  liabilities  owing by the  Company to
Laurus  Master  Fund,  Ltd. (as the same may be amended,  restated,  extended or
modified from time to time).

                                       7
<PAGE>

      15.  Miscellaneous.  This  Warrant  and any term  hereof  may be  changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  THIS WARRANT SHALL BE GOVERNED BY AND  CONSTRUED IN ACCORDANCE  WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT  REGARD TO  PRINCIPLES OF CONFLICTS OF
LAWS.  ANY ACTION  BROUGHT  CONCERNING  THE  TRANSACTIONS  CONTEMPLATED  BY THIS
WARRANT  SHALL BE BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL
COURTS LOCATED IN THE STATE OF NEW YORK; PROVIDED,  HOWEVER, THAT THE HOLDER MAY
CHOOSE TO WAIVE  THIS  PROVISION  AND BRING AN ACTION  OUTSIDE  THE STATE OF NEW
YORK. The  individuals  executing this Warrant on behalf of the Company agree to
submit  to the  jurisdiction  of such  courts  and  waive  trial  by  jury.  The
prevailing  party  shall be  entitled  to  recover  from  the  other  party  its
reasonable  attorneys'  fees and costs.  In the event that any provision of this
Warrant is invalid or unenforceable under any applicable statute or rule of law,
then  such  provision  shall be deemed  inoperative  to the  extent  that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or  unenforceable  under
any law shall not affect the validity or  enforceability  of any other provision
of this  Warrant.  The  headings in this  Warrant are for  purposes of reference
only,  and shall not limit or  otherwise  affect  any of the terms  hereof.  The
invalidity or  unenforceability  of any provision  hereof shall in no way affect
the  validity  or  enforceability  of any other  provision  hereof.  The Company
acknowledges that legal counsel  participated in the preparation of this Warrant
and, therefore, stipulates that the rule of construction that ambiguities are to
be  resolved   against  the   drafting   party  shall  not  be  applied  in  the
interpretation of this Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

      IN WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first written above.

                                    NATIONAL INVESTMENT  MANAGERS INC.

WITNESS:
                                    By:    /s/Leonard A. Neuhaus
                                           ---------------------------
                                    Name:  Leonard A. Neuhaus
                                    Title: Chief Operating and Financial Officer
__________________________________

                                       9
<PAGE>

                                    Exhibit A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO: National Investment Managers Inc.

      Attention: Chief Financial Officer

      The  undersigned,  pursuant to the  provisions  set forth in the  attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

_________       ________ shares of the Common Stock covered by such Warrant; or

_________       the maximum  number of shares of Common  Stock  covered  by such
                Warrant  pursuant to the  cashless  exercise  procedure  set
                forth in Section 2.

         The  undersigned  herewith makes payment of the full Exercise Price for
such  shares  at the  price per share  provided  for in such  Warrant,  which is
$___________. Such payment takes the form of (check applicable box or boxes):

_________       $__________ in lawful money of the United States; and/or

_________       the  cancellation  of  such  portion of the attached  Warrant as
                is  exercisable  for a total of _______  shares of Common  Stock
                (using  a  Fair   Market   Value  of   $_______  per  share  for
                purposes of this calculation); and/or

_________       the cancellation  of such number of shares of Common Stock as is
                necessary,   in  accordance  with  the  formula   set  forth  in
                Section   2.2,  to  exercise  this  Warrant with  respect to the
                maximum   number  of   shares  of  Common    Stock   purchasable
                pursuant  to   the  cashless  exercise  procedure  set  forth in
                Section 2.

      The undersigned  requests that the  certificates for such shares be issued
in the name of, and delivered to  ______________________________________________
whose                                 address                                 is
___________________________________________________________________________.

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:
         -----------------------------   ---------------------------------------
                                         (Signature must conform to name of
                                          holder as specified on the face of the
                                          Warrant)

                                          Address:
                                                  ------------------------------

                                                  ------------------------------

                                       A-1
<PAGE>

                                    Exhibit B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received,  the undersigned hereby sells,  assigns, and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common  Stock of  National  Investment  Managers  Inc.  into which the
within Warrant relates specified under the headings "Percentage Transferred" and
"Number Transferred,"  respectively,  opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of National  Investment  Managers  Inc. with full power of  substitution  in the
premises.

                                           Percentage            Number
Transferees          Address               Transferred         Transferred
-----------          -------               -----------         -----------

------------------  --------------------   ----------------   ------------------

------------------  --------------------   ----------------   ------------------

------------------  --------------------   ----------------   ------------------

------------------  --------------------   ----------------   ------------------

Dated:
         -----------------------------   ---------------------------------------
                                         (Signature must conform to name of
                                          holder as specified on the face of the
                                          Warrant)

                                          Address:
                                                  ------------------------------

                                                  ------------------------------

                                          SIGNED IN THE PRESENCE OF:

                                          --------------------------------------
                                                        (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

-----------------------------------
              (Name)

                                      B-1June 14, 2006

National Investment Managers Inc.
830 Third Avenue
14th Floor
New York, NY 10022

                              Re: Rescission Demand

Gentlemen:

      Notice is hereby given of the demand of Laurus Master Fund, Ltd.
("Purchaser") for rescission of that certain Common Stock Purchase Warrant,
dated May 30, 2006, with an exercise price of $0.01 per share ("Prior Warrant"),
a copy of which is attached as Exhibit A, issued by National Investment Managers
Inc. (the Company") to the Purchaser. In lieu thereof, Laurus hereby demands
that a new warrant be issued in the place and stead of the Prior Warrant, nunc
pro tunc, at an exercise price of $0.1667 per share ("New Warrant"), in the form
attached hereto as Exhibit B.

      Please confirm your acceptance of this demand by your countersignature
below, followed by execution and delivery to Purchaser of the New Warrant,
whereupon the Prior Warrant will be returned to you.

                                Very truly yours,

                                LAURUS MASTER FUND, LTD.

                                By: /s/Eugene Grin
                                    ------------------
                                       Eugene Grin, Director

ACCEPTED AND AGREED:

NATIONAL INVESTMENT MANAGERS INC.

By: /s/Leonard A. Neuhaus
    -------------------------
       Leonard A. Neuhaus, COO/CFO

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