Document:

NATIONAL
        INVESTMENT MANAGERS INC.

      STOCK
        OPTION CONTRACT

       

      THIS
        STOCK OPTION CONTRACT (“Contract”)
        entered into as of March 9, 2005, between National Investment Managers Inc.,
        a
        Florida corporation (the “Company”),
        and
        _______________________ (the “Optionee”).
        

       

      W I T N E&#
160;S S E T H:

       

      1.    In
        consideration for services to be rendered by the Optionee to the Company
        in his
        capacity as a non-employee/non-consultant director of the Company for its
        2005
        fiscal year, the Company hereby grants to the Optionee an option to purchase
        an
        aggregate of 40,000 shares
        of
        Common Stock, $001 par value per share, of the Company ("Common
        Stock")
        at an
        exercise price of $0.1666 per share, being at least equal to the fair market
        value of such shares of Common Stock on the date hereof. 

       

      2.    The
        term
        of this option shall be five (5) years from the date hereof. This option
        shall
        vest and be fully exercisable on the date hereof. 

       

      3.    This
        option shall be exercised by giving written notice to the Company at its
        then
        principal office, presently 830 Third Avenue, 14th
        Floor,
        New York, New York 10022,
        Attention:
        Chief Financial Officer,
        stating
        that the Optionee is exercising the option hereunder, specifying the number
        of
        shares being purchased and accompanied by payment in full of the aggregate
        purchase price therefor (a) in cash or by certified check, (b) with previously
        acquired shares of Common Stock that are fully paid, vested, transferable
        and
        have been held by the Optionee for at least six months, or such longer period
        as
        may be required to avoid a charge to the Company's earnings for financial
        accounting purposes, based on the fair market value thereof, as provided
        below,
        or (c) a combination of the foregoing. 

       

      The
        fair
        market value of a share of Common Stock on any day shall be (a) if the principal
        market for the Common Stock is a national securities exchange, the average
        of
        the highest and lowest sales prices per share of the Common Stock on such
        day as
        reported by such exchange or on a consolidated tape reflecting transactions
        on
        such exchange, (b) if the principal market for the Common Stock is not a
        national securities exchange and the Common Stock is quoted on the NASDAQ
        Stock
        Market ("Nasdaq"), and (i) if actual sales price information is available
        with
        respect to the Common Stock, the average of the highest and lowest sales
        prices
        per share of the Common Stock on such day on Nasdaq, or (ii) if such information
        is not available, the average of the highest bid and the lowest asked prices
        per
        share for the Common Stock on such day on Nasdaq, or (c) if the principal
        market
        for the Common Stock is not a national securities exchange and the Common
        Stock
        is not quoted on Nasdaq, the average of the highest bid and lowest asked
        prices
        per share for the Common Stock on such day as reported on the OTC Bulletin
        Board
        Service or by National Quotation Bureau, Incorporated or a comparable service;
        provided,
        however, that
        if
        clauses (a), (b) and (c) of this paragraph are all inapplicable because the
        Company's Common Stock is not publicly traded, or if no trades have been
        made or
        no quotes are available for such day, the fair market value of a share of
        Common
        Stock shall be determined by the Board of Directors of the Compensation
        Committee by any method consistent with any applicable regulations adopted
        by
        the Treasury Department relating to stock options. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.    If
        the
        Optionee's directorship with the Company is terminated on account of a permanent
        and total Disability (defined below), the Optionee or the Optionee's legal
        representative may exercise the option, to the extent exercisable on the
        date of
        the Optionee's termination of his directorship, at any time within one year
        after termination of employment but in no event after the expiration of the
        term
        of the option. Optionee shall be deemed permanently and totally “disabled” if he
        is unable to engage in any substantial gainful activity by reason of any
        medically determinable physical or mental impairment which can be expected
        to
        result in death or which has lasted or can be expected to last for a continuous
        period of not less than 12 months.

      

      5.    If
        the
        Optionee dies (a) while a director of the Company, (b) within three months
        after
        the termination of such directorship or (c) within one year following the
        termination of such directorship by reason of Disability, the Optionee's
        option
        may be exercised, to the extent exercisable on the date of the Optionee's
        death,
        by the Optionee's legal representative at any time within one year
        after death and in no event after the date the option would otherwise have
        expired.

       

      6.    An
        Optionee whose directorship with the Company has terminated for any reason
        other
        than the Optionee’s death or Disability may exercise the option, to the extent
        exercisable on the date of such termination, at any time within three months
        after the date of termination, but not thereafter and in no event after the
        date
        the option would otherwise have expired. 

       

      7.    The
        Company may withhold cash and/or shares of Common Stock to be issued to the
        Optionee in the amount which the Company determines is necessary to satisfy
        its
        obligation to withhold taxes or other amounts incurred by reason of the grant
        or
        exercise of this option or the disposition of the underlying shares of Common
        Stock. Alternatively, the Company may require the Optionee to pay the Company
        such amount in cash promptly upon demand. 

       

      8.    Notwithstanding
        the foregoing, this option shall not be exercisable by the Optionee unless
        (a) a
        Registration Statement under the Securities Act of 1933, as amended (the
        "Securities
        Act")
        with
        respect to the shares of Common Stock to be received upon the exercise of
        this
        option shall be effective and current at the time of exercise or (b) there
        is an
        exemption from registration under the Securities Act for the issuance of
        the
        shares of Common Stock upon such exercise. The Optionee hereby represents
        and
        warrants to the Company that, unless such a Registration Statement is effective
        and current at the time of exercise of this option, the shares of Common
        Stock
        to be issued upon the exercise of this option will be acquired by the Optionee
        for his own account, for investment only and not with a view to the resale
        or
        distribution thereof. In any event, the Optionee will notify the Company
        of any
        proposed resale of the shares of Common Stock issued to him upon exercise
        of
        this option. If (i) the Optionee is an "affiliate" of the Company within
        the
        meaning of the Securities Act at the time of any such resale or (ii) at the
        time
        of exercise of this option the shares issued were not subject to a current
        and
        effective Registration Statement under the Securities Act covering their
        issuance, then any subsequent resale or distribution of shares of Common
        Stock
        by the Optionee will be made only pursuant to (x) a Registration Statement
        under
        the Securities Act which, at the time of resale, is effective and current
        with
        respect to the Optionee's sale of shares of Common Stock being sold, or (y)
        a
        specific exemption from the registration requirements of the Securities Act,
        but
        in claiming such exemption, the Optionee shall, prior to any offer of sale
        or
        sale of such shares of Common Stock, provide the Company (unless waived by
        the
        Company) with a favorable written opinion of counsel satisfactory to the
        Company, in form, substance and scope satisfactory to the Company, as to
        the
        applicability of such exemption to the proposed sale or distribution. Such
        representations and warranties shall also be deemed to be made by the Optionee
        upon each exercise of this option. Nothing herein shall be construed as
        requiring the Company to register the shares subject to this option under
        the
        Securities Act. 

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      9.    In
        the
        event of any change in the outstanding Common Stock by reason of a stock
        dividend, recapitalization, merger in which the Company is the surviving
        corporation, spin-off, split-up, combination or exchange of shares or the
        like
        which results in a change in the number or kind of shares of Common Stock
        which
        are outstanding immediately prior to such event, the aggregate number and
        kind
        of shares subject to the option and the exercise price thereof shall be
        appropriately adjusted by the Board of Directors, whose determination shall
        be
        conclusive and binding on all parties.. 

       

      10.    The
        Company may affix appropriate legends upon the certificates for shares of
        Common
        Stock issued upon exercise of this option and may issue such "stop transfer"
        instructions to its transfer agent in respect of such shares as it determines,
        in its discretion, to be necessary or appropriate to (a) prevent a violation
        of,
        or to perfect an exemption from, the registration requirements of the Securities
        Act or (b) implement the provisions of this Contract or any other agreement
        between the Company and the Optionee with respect to such shares of Common
        Stock. 

       

      11.    Nothing
        herein shall confer upon the Optionee any right to continue as a director
        of the
        Company or interfere in any way with any right of the Company to terminate
        such
        directorship at any time for any reason whatsoever without liability to the
        Company. 

       

      12.    The
        Optionee represents and agrees that he will comply with all applicable laws
        relating to the grant and exercise of this option and the disposition of
        the
        shares of Common Stock acquired upon exercise of the option, including without
        limitation, federal and state securities and "blue sky" laws. 

       

      13.    This
        option is not transferable by the Optionee otherwise than by will or the
        laws of
        descent and distribution and may be exercised, during the lifetime of the
        Optionee, only by the Optionee. 

       

      14.    This
        Contract shall be binding upon and inure to the benefit of any successor
        or
        assign of the Company and to any legal representative of the Optionee.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      15.    This
        Contract shall be governed by, and construed and enforced in accordance with,
        the laws of the State of New York, without regard to the conflicts of law
        rules
        thereof that would defer to the substantive laws of any other jurisdiction.
        

       

      16.    The
        invalidity or illegality of any provision herein shall not affect the validity
        of any other provision. 

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Contract as
        of the
        day
        and year first above written. 

       

      
        	 	 	 
	 	NATIONAL
                INVESTMENT MANAGERS INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	 

      

      

       

      OPTIONEE:

       

      
        
          

        
[NAME]

      

      
        
          
          

        

        
          -4-AGREEMENT

      

      Agreement,
        entered into on June 15, 2005 but effective as of May 4, 2005 (“Effective
        Date”), by and between Richard Berman, an individual with an address at 420
        Lexington Avenue, New York, New York 10170 (“Berman”),
        and National Investment Managers Inc., a Florida corporation with its principal
        office located at 830 Third Avenue, New York, New York 10022 (the “Company”).

      

      RECITALS

      

      The
        Company desires to engage Berman to serve as Chairman of the Company’s Audit
        Committee, in addition to Berman’s services as a director of the Company, and
        Berman desires to perform such services.

      

      NOW,
        THEREFORE, the Company and Berman agree as follows:

      

      1    Engagement;
        Duties.
        The
        Company hereby retains the services of Berman, and Berman hereby agrees to
        render services to the Company, all in accordance with the terms and conditions
        hereof
        during
        the Term (as defined in Section 2). In such capacity, Berman
        shall serve
        as
        Chairman of the Audit Committee of the Company’s Board of Directors,
        non-executive Chairman of the Board of the Company, and a member of the
        Corporate Governance and Executive Committees of the Board of Directors of
        the
        Company. 

      

      2    Term.The
        term
        of this Agreement (“Term”) shall be for a period of one (1) year from the
        Effective Date, subject to earlier termination at such time as Berman no
        longer
        serves as Chairman of the Board and Chairman of the Audit Committee (the
        “Term”). 

      

      3    Compensation.
        

      

      (A)  Annual
        Fee.As
        consideration for the performance by Berman of Berman’s obligations under this
        Agreement, Berman shall be compensated during the Term at a rate of Fifty-Two
        Thousand Dollars ($52,000)
        per
        annum (the “Annual Fee”). The Annual Fee shall be payable in accordance with the
        Company’s normal monthly payroll run. The Company
        shall deduct from the Annual Fee any federal, state or local withholding
        taxes,
        social security contributions and any other amounts which may be required
        to be
        deducted or withheld by the Company pursuant to any federal, state or local
        laws, rules or regulations.

      

      (B)  Stock
        Options.
        In addition, and subject to adoption and approval of the Company’s stock option
        plan (“Stock Option Plan”) and the terms thereof and the terms of the stock
        option agreement executed by the parties in connection therewith and pursuant
        thereto (“Stock Option Agreement”), Berman is hereby granted options
        (“Options”) to purchase 266,370 shares of the Company’s common stock at an
        exercise price of $1.00 per share, as adjusted from time to time in accordance
        with the provisions of the Stock Option Plan and the Stock Option Agreement
        under which such Options are issued. The Options shall have a term of seven
        (7)
        years from the date of grant. All of such Options shall vest on the first
        anniversary of the date of grant or, if sooner, upon any sale or other
        disposition of all or substantially all of the Company’s assets, or upon a
        merger, consolidation, reorganization or other similar transaction resulting
        in
        a change of control of the Company’s business. Other terms shall be as set forth
        in the Company’s Stock Option Plan and/or related Stock Option Agreement. All
        unvested Options and any vested but unexercised Options shall automatically
        become null and void and shall automatically terminate upon the termination
        of
        Berman’s engagement by the Company for cause (as determined in good faith by the
        Board of Directors) or upon Berman’s voluntary termination of his engagement by
        the Company. Upon the termination of Berman’s engagement due to death,
        disability (as determined in good faith by the Board of Directors) or by
        the
        Company without cause, all unvested Options shall automatically become null
        and
        void and shall terminate and all vested and unexercised Options shall be
        exercisable in accordance with the Company’s Stock Option Plan and Stock Option
        Agreement but in any event for a period not less than ninety (90) days following
        the date of termination of his engagement. In the event of any conflict between
        the terms and provisions of this Agreement and those of the Stock Option
        Agreement, the terms of the Stock Option Agreement shall govern and be
        controlling.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4    Reimbursement
        of Expenses.During
        the Term, the Company shall reimburse Berman for ordinary and necessary business
        expenses incurred by Berman in the performance of Berman’s duties on behalf of
        the Company, provided, however, that such expenses were authorized by the
        Company in advance, and that Berman presents evidence of such expenses as
        may be
        required under the policies of the Company as are then in effect.

       

      5    Representation
        and Warranty of Berman.
        Berman
        represents and warrants to Company that the execution and delivery of this
        Agreement and the performance of Berman’s obligations pursuant hereto shall not
        conflict with or result in a breach of any provisions of any (a) agreement,
        commitment, undertaking, arrangement or understanding to which Berman is
        a party
        or by which Berman is bound; or (b) order, judgment or decree of any court
        or
        arbitrator.

      

      6    General
        Provisions.

      

      (A)  Notices.
        All
        notices and other communica-tions under this Agreement shall be in writing
        and
        may be given by personal delivery, registered or certified mail, postage
        prepaid, return receipt requested or generally recognized overnight delivery
        service. Notices shall be sent to the appropriate party at that party's address
        set forth above or at such other address for that party as shall be specified
        by
        notice given under this Section. All such notices and communications shall
        be
        deemed received upon (a) actual receipt by the addressee or (b) actual delivery
        to the appropriate address. Copies of notices hereunder shall be sent as
        follows: If to Berman - to: 420 Lexington Avenue, Suite 2401, New York, NY
        10170, fax no. 212 632 3501; and if to the Company, to: National Investment
        Managers Inc., 830 Third Avenue, New York, NY 10022, Attention: President,
        and
        to: Cohen Tauber Spievack & Wagner LLP, 420 Lexington Avenue, Suite 2400,
        New York, NY 10170, fax no. 212 586 5095, attention: Adam Stein,
        Esq.

      

      (B)  Assignment.
        This
        Agreement shall be binding upon, and inure to the benefit of, the parties'
        respective successors, permitted assigns, and heirs and legal representatives.
        This Agreement may be assigned to, and thereupon shall inure to the benefit
        of,
        any organization which succeeds to substantially all of the business or assets
        of the Company, whether by means of merger, consolidation, acquisition of
        all or
        substantially all of the assets of the Company or otherwise, including, without
        limitation, by operation of law. 

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (C)  Severability.
        If any
        provision of this Agreement, or the application of any provision to any person
        or circumstance, shall for any reason or to any extent be invalid or
        unenforceable, the remainder of this Agreement and the application of that
        provision to other persons or circumstances shall not be affected, but shall
        be
        enforced to the full extent permitted by law.

      

      (D)  No
        Waiver.
        The
        failure of a party to insist upon strict adherence to any term of this Agreement
        on any occasion shall not be considered a waiver or deprive that party of
        the
        right thereafter to insist upon strict adherence to that term or any other
        term
        of this Agreement. Any waiver must be in writing.

      

      (E)  Governing
        Law; Arbitration.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York applicable to agreements made and to be performed in that
        state, without regard to any of its principles of conflicts of laws or other
        laws that would result in the application of the laws of another jurisdiction.
        This Agreement shall be construed and interpreted without regard to any
        presumption against the party causing this Agreement to be drafted. Each
        of the
        parties hereby unconditionally and irrevocably waives the right to a trial
        by
        jury in any action, suit or proceeding arising out of or relating to this
        Agreement or the transactions contemplated hereby. All disputes relating
        in any
        way to this Agreement shall be resolved exclusively through arbitration
        conducted in accordance with the Commercial Arbitration Rule of the American
        Arbitration Association as then in effect. The arbitration hearing shall
        be held
        in New York, New York and shall be before a single arbitrator selected by
        the
        parties in accordance with the Commercial Arbitration Rules of the American
        Arbitration Association pursuant to its rules on selection of arbitrators.
        Any
        arbitrator selected shall have reasonable experience as an arbitrator relating
        to the dispute at issue. The arbitrator shall render a formal, binding
        non-appealable resolution and award on each issue as expeditiously as possible
        but not more than thirty days after the hearing. All discovery disputes shall
        be
        resolved by the arbitrator. The parties shall use all reasonable efforts
        to keep
        arbitration costs to a minimum.

      

      (F)  Counterparts.
        This
        Agreement may be executed by facsimile signatures and in counterparts, both
        of
        which shall be considered an original, but both of which together shall
        constitute the same instrument.

      

      
 

      

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          3

          
            

          

        

        
           

        

      

      (G)  Entire
        Agreement; Amendment.
        This
        Agreement contains the complete statement of all the arrangements between
        the
        parties with respect to its subject matter, supersedes all prior agreements
        between them with respect to that subject matter, and may not be changed
        or
        terminated orally. Any amendment or modification must be in writing and signed
        by the party to be charged.

       

       IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this Agreement as of the date first set forth
        above.

      

      
        	 	 	 
	 	NATIONAL
                INVESTMENT MANAGERS INC.
	 
 	 
 	 
 
	 	By:  	/s/ Richard
                E Stierwalt
	 	
                
Name:
                Richard E. Stierwalt
	 	Title:
                Chief Executive Officer

      
        	 	 	 
	 	 
	 	By:  	/s/ Richard
                Berman
	 	
                
RICHARD
                BERMAN
	 	 

       

      

      [SIGNATURE
        PAGE - BERMAN ENGAGEMENT AGREEMENT]

       

      
        
           

        

        
          4

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