Document:

STOCK PURCHASE AGREEMENT

                                      AMONG

                        NATIONAL INVESTMENT MANAGERS INC.

                              THE LAMCO GROUP, INC.
                             LAMORIELLO & CO., INC.
                              CIRCLE PENSION, INC.
                       SOUTHEASTERN PENSION SERVICES, INC.
                           AND NICHOLAS J. LAMORIELLO

                           Dated as of October 3, 2006

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                            STOCK PURCHASE AGREEMENT

            STOCK  PURCHASE  AGREEMENT,   dated  as  of  October  3,  2006  (the
"Agreement"),  among National Investment Managers Inc., a corporation  organized
under  the  laws  of  Florida  (the  "Purchaser"),  THE  LAMCO  Group,  INC.,  a
corporation  organized  under the laws of Florida (the  "Seller"),  LAMORIELLO &
CO.,  INC., a  corporation  organized  under the laws of Rhode  Island  ("LCI"),
Circle  Pension,  Inc.,  a  corporation  organized  under  the  laws of New York
("CPI"), and SOUTHEASTERN PENSION SERVICES,  INC., a corporation organized under
the laws of Florida ("SPSI," and together with LCI and CPI, the "Companies") and
Nicholas J. Lamoriello ("Lamoriello").

                              W I T N E S S E T H:

            WHEREAS,  the Seller owns an aggregate of fifty-five  (55) shares of
common stock,  $1.00 par value,  of LCI (the "LCI Shares"),  an aggregate of one
thousand  (1,000)  shares of common  stock,  $1.00 par  value,  of CPI (the "CPI
Shares"),  and an aggregate of one hundred (100) shares of common  stock,  $1.00
par value, of SPSI (the "SPSI Shares," and collectively  with the LCI Shares and
the CPI Shares,  the  "Shares"),  which Shares  constitute all of the issued and
outstanding shares of capital stock of the Companies; and

            WHEREAS, the Seller desires to sell to Purchaser,  and the Purchaser
desires to purchase from the Seller,  the Shares for the purchase price and upon
the terms and conditions hereinafter set forth;

            NOW,  THEREFORE,  in  consideration  of the  premises and the mutual
covenants and  agreements  hereinafter  contained,  the parties  hereby agree as
follows:

                                   ARTICLE I
                           SALE AND PURCHASE OF SHARES

            1.1 Sale and Purchase of Shares.

            Upon the terms and subject to the conditions  contained  herein,  on
the Closing Date the Seller shall sell, assign, transfer,  convey and deliver to
the  Purchaser,  and the Purchaser  shall  purchase from the Seller,  all of the
Shares.

                                   ARTICLE II
                           PURCHASE PRICE AND PAYMENT

            2.1 Amount of Purchase Price.

            (a) The  purchase  price for the Shares  shall be an amount equal to
(i) $1,450,000  (one million four hundred fifty thousand US dollars)  payable to
the Seller (the "Cash  Purchase  Price"),  (ii)  $1,375,000  (one million  three
hundred   seventy  five  thousand  US  dollars)   payable  to   Lamoriello   for
extinguishment  of the debt  owned to him from the  Companies  (the  "Lamoriello
Debt"),  and (iii)  $375,000  (three  hundred  seventy five thousand US dollars)
payable  to Bank of  America  for  extinguishment  of the debt  owned to Bank of
America by the Companies and the Seller (the "Bank Debt").  Notwithstanding  the
foregoing, in the event that the Bank Debt is greater than or less than $375,000
on the Closing Date, the Cash Purchase Price shall be adjusted  proportionately,
such that the aggregate amount of the Cash Purchase Price and the amount payable
to Bank of America shall be equal to $1,825,000.

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            (b) The Seller shall receive  3,000,000  shares (the "Purchase Price
Shares",  and collectively with the Cash Purchase Price, the Lamoriello Debt and
the Bank Debt,  the  "Purchase  Price")  of the  Purchaser's  common  stock (the
"Common  Stock").  Certain of the  Purchase  Price  Shares  shall be held by the
Purchaser pursuant to the provisions of Section 2.3(b) below.

            (c) The Seller shall receive an option to purchase 300,000 shares of
Common Stock, exercisable for a period of five (5) years at a price of $0.50 per
share,  substantially in the form of Exhibit 2.1(c) attached hereto (the "Option
Agreement").

            2.2 Payment of Purchase  Price.  On the Closing Date,  the Purchaser
shall pay the Cash  Purchase  Price to the  Seller,  which  shall be paid by the
delivery to Seller and all parties  identified in Section  2.1(a) of a certified
or bank cashier's checks in New York Clearing House Funds,  payable to the order
of the  Seller or, at the  Seller's  option,  by wire  transfer  of  immediately
available funds into accounts designated by the Seller.

            2.3 Earnings Adjustment.

            (a)  Within 90 days  after  the end of each of the first two  twelve
month  periods  following  the Closing  Date,  the  Purchaser  shall cause to be
prepared  and  delivered  to Seller a statement  of  operations  of the combined
operations  of the  Companies  for  such  twelve  month  period,  determined  in
accordance with GAAP. Such statement of operations  shall include (i) a separate
calculation of earnings before  interest,  taxes,  depreciation and amortization
("EBITDA");  (ii) a  determination  as to whether the Target  EBITDA (as defined
below) has been  achieved;  and (iii) the amount of the Bonus (as defined below)
or Shortfall (as defined below),  as applicable.  Unless within thirty (30) days
of delivery of such  statement of operations  by Purchaser to Seller,  Purchaser
shall  have  received  a written  objection  from  Seller to such  statement  of
operations  or  Instructions,  then such  draft  shall be  considered  the final
statement of operations  of the Companies for such period (the "Final  Statement
of  Operations").  If within  thirty (30) days of delivery of the  statement  of
operations  by  Purchaser  to Seller,  Purchaser  shall have  received a written
objection from Seller to such statement of operations and/or Instructions,  then
the Seller and Purchaser shall attempt to reconcile their differences diligently
and in good  faith  and any  resolution  by them  shall be  final,  binding  and
conclusive.  If the Seller and the  Purchaser  are unable to reach a  resolution
with such effect within fifteen (15) business days of the Purchaser's receipt of
the Seller's  written  notice of objection,  the Seller and the Purchaser  shall
submit such dispute for  resolution to an independent  accounting  firm mutually
appointed by the Seller and the Purchaser (the "Independent  Accounting  Firm"),
which shall  determine and report to the parties and such report shall be final,
binding and conclusive on the parties hereto.  The fees and disbursements of the
Independent  Accounting  Firm shall  initially be paid by the Seller;  provided,
however,  in the event that the Independent  Accounting Firm determines that the
Seller's objection to the statement of operations and/or Instructions are valid,
then the Purchaser shall pay the fee payable to the Independent Accounting Firm.

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            (b) If the  EBITDA  of the  Companies  for  either  of the first two
12-month  periods  following  the Closing Date is greater than  $1,000,000  (the
"Target  EBITDA"),  then  Purchaser  shall pay at the direction of the Seller an
amount equal to 10% of the EBITDA in excess of the Target  EBIDTA (the  "Bonus")
for each such year.  The Bonus shall be paid to the Seller and  employees of the
Companies,  pursuant to the written instructions of the Seller and shall be paid
within thirty (30) days of the  determination of the Bonus. If the EBITDA of the
Companies  for either of the first two 12-month  periods  following  the Closing
Date is less than the  Target  EBITDA  (the  "Shortfall"),  then such  number of
Purchase Price Shares as equal the lesser of $850,000 or the Shortfall,  divided
by the closing bid price of the Common Stock on the date of the Final  Statement
of Operations for such period, shall be cancelled.

            (c) In order to facilitate the cancellation of Purchase Price Shares
which may be effected as a result of a  Shortfall,  the  Purchase  Price  Shares
equal  to  $850,000  (determined  by  dividing  $850,000  by the  closing  price
immediately prior to the Closing Date) shall be deposited into an escrow account
until the Final  Statement of Operations for the two 12 month periods  following
the Closing Date is determined and accepted by all parties and the  cancellation
of Purchase  Price Shares in accordance  with the terms of Section 2.3(b) hereof
as a result of any  deficiency  in the  Target  EBITDA  has been  effected  (the
"Escrowed  Shares").  The  Escrowed  Shares shall be held for the benefit of the
Seller,  in  accordance  with the terms and  conditions  set forth in the escrow
agreement attached hereto as Exhibit 2.2 (the "Escrow  Agreement").  In addition
to the  Escrowed  Shares,  the Seller  shall also  deposit  into escrow ten (10)
medallion  guaranteed  stock powers executed in blank to be used in the event of
the need to cancel any Escrowed  Shares  pursuant to the terms of Section 2.3(b)
hereof.  Upon final  determination  of EBITDA for each of the first two 12-month
periods  following the Closing as set forth in the foregoing  paragraphs of this
Section 2.3, the Purchaser  and Seller shall deliver joint written  instructions
to the Escrow Agent under the Escrow  Agreement as to any resulting  disposition
of the Escrowed Shares.  If at the end of the first such 12-month period,  there
is a Shortfall,  the  Purchaser  and Seller  shall  instruct the Escrow Agent to
release a number of  Escrowed  Shares as set forth in  Section  2.3(b)  above to
Purchaser for cancellation.  If, on the other hand, the Target EBITDA is reached
or exceeded for the first 12-month period  following the Closing Date, the Bonus
shall  be  paid to the  Seller  and  then  Escrowed  Shares  equal  to  $250,000
(determined  by  dividing  $250,000  by  the  closing  price  on  the  one  year
anniversary  of the Closing  Date) shall be  delivered to the Seller from escrow
and Seller and Purchaser shall deliver joint written  instructions to the Escrow
Agent  with  respect  to the  release  of such  Escrowed  Shares to the  Seller;
provided,  however,  in no event  shall  such  shares  exceed  30% of the  total
Escrowed  Shares.  Following  a final  determination  of EBITDA  for the  second
12-month  period  following  the Closing  Date,  the  Purchaser and Seller shall
deliver  joint  written  instructions  to  the  Escrow  Agent  as to  the  final
disposition of all remaining  Escrowed  Shares in accordance  with the foregoing
provisions.

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                                  ARTICLE III
                             CLOSING AND TERMINATION

            3.1 Closing Date.

                  Subject to the  satisfaction  of the  conditions  set forth in
Sections  7.1 and 7.2  hereof (or the waiver  thereof by the party  entitled  to
waive  that  condition),  the  closing  of the sale and  purchase  of the Shares
provided  for in Section  1.1  hereof  (the  "Closing")  shall take place at the
offices of  Sichenzia  Ross  Friedman  Ference LLP located at 1065 Avenue of the
Americas,  New York,  New York 10018 (or at such other  place as the parties may
designate  in  writing)  on October 3, 2006 or such other date as the Seller and
the  Purchaser may  designate.  and such  designation  shall occur no later than
October 16, 2006.  The date on which the Closing shall be held is referred to in
this Agreement as the "Closing Date".

            3.2 Termination of Agreement.

                  This  Agreement  may be  terminated  prior to the  Closing  as
follows:

            (a) At the  election  of the  Seller  or the  Purchaser  on or after
October  16,  2006,  if the  Closing  shall  not have  occurred  by the close of
business on such date provided that the  terminating  party is not in default of
any of its obligations hereunder and the Closing Date shall not have extended by
the parties to a date after October 31, 2006;

            (b) by mutual written consent of the Seller and the Purchaser; or

            (c) by the  Seller or the  Purchaser  if there  shall be in effect a
final  nonappealable  order of a  governmental  body of  competent  jurisdiction
restraining,   enjoining  or  otherwise  prohibiting  the  consummation  of  the
transactions  contemplated hereby; it being agreed that the parties hereto shall
promptly appeal any adverse determination which is not nonappealable (and pursue
such appeal with reasonable diligence).

            3.3 Procedure Upon Termination.

                  In the event of termination  and  abandonment by the Purchaser
or the Seller, or both,  pursuant to Section 3.2 hereof,  written notice thereof
shall forthwith be given to the other party or parties, and this Agreement shall
terminate, and the purchase of the Shares hereunder shall be abandoned,  without
further  action by the Purchaser or the Seller.  If this Agreement is terminated
as provided  herein,  each party shall redeliver all documents,  work papers and
other  material of any other party  relating  to the  transactions  contemplated
hereby,  whether so obtained before or after the execution  hereof, to the party
furnishing the same.

            3.4 Effect of Termination.

                  In the event  that this  Agreement  is validly  terminated  as
provided herein,  then each of the parties shall be relieved of their duties and
obligations  arising under this Agreement after the date of such termination and
such termination shall be without liability to the Purchaser, the Companies, the
Seller or the Companies;  provided, however, that the obligations of the parties
set forth in Section 10.4 hereof shall survive any such termination and shall be
enforceable hereunder.

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                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THE SELLERS

      The Seller and  Lamoriello  hereby  jointly and  severally  represent  and
warrant to the Purchaser that:

            4.1. Organization and Good Standing of the Seller and the Companies.
The Seller and each of the Companies is a corporation  duly  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation as set forth above. The Companies are not required to be qualified
to transact business in any other  jurisdiction  where the failure to so qualify
would have an adverse effect on the business of the Companies.

            4.2. Authority.

                  (a)  Each  of the  Companies  has  full  power  and  authority
(corporate  and  otherwise)  to carry on its  business  and has all  permits and
licenses that are necessary to the conduct of its business or to the  ownership,
lease or operation of its properties and assets.

                  (b) The execution of this Agreement and the delivery hereof to
the  Purchaser and the sale  contemplated  herein have been, or will be prior to
Closing, duly authorized by the Board of Directors of the Seller and each of the
Companies and by the Seller as sole  stockholder  of the  Companies  having full
power and authority to authorize such actions.

                  (c) Subject to any consents  required under Section 4.7 below,
the Seller,  the Companies and Lamoriello  have the full legal right,  power and
authority  to execute,  deliver and carry out the terms and  provisions  of this
Agreement;  and this Agreement has been duly and validly  executed and delivered
on behalf of Seller,  the Companies and Lamoriello  and  constitutes a valid and
binding obligation of the Seller,  the Companies and Lamoriello,  enforceable in
accordance with its terms.

                  (d) Except as set forth in Schedule  4.2  hereto,  neither the
execution and delivery of this Agreement,  the  consummation of the transactions
herein  contemplated,  nor  compliance  with the  terms of this  Agreement  will
violate, conflict with, result in a breach of, or constitute a default under any
statute, regulation,  indenture, mortgage, loan agreement, or other agreement or
instrument to which the Seller or any of the Companies is a party or by which it
or any of them is bound,  any  charter,  regulation,  or bylaw  provision of the
Seller or any of the Companies,  or any decree,  order,  or rule of any court or
governmental authority or arbitrator that is binding on the Seller or any of the
Companies in any way.

            4.3. Shares.

                  (a)  The  authorized  capital  stock  of LCI  consists  of one
thousand  (1,000)  shares of common stock,  par value $1.00 per share,  of which
fifty-five (55) shares have been issued to Seller and constitute the only shares
of the capital stock of LCI  outstanding.  The  authorized  capital stock of CPI
consists of five thousand  (5,000)  shares of common stock,  par value $1.00 per
share,  of which one  thousand  (1,000)  shares  have been  issued to Seller and
constitute  the  only  shares  of the  capital  stock  of CPI  outstanding.  The
authorized  capital  stock of SPSI consists of ten thousand  (10,000)  shares of
common stock,  par value $1.00 per share, of which one hundred (100) shares have
been issued to Seller and  constitute  the only  shares of the capital  stock of
SPSI outstanding.  All of the Shares are duly authorized,  validly issued, fully
paid and non-assessable.

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                  (b) The Seller is the lawful  record and  beneficial  owner of
all the Shares,  free and clear of any liens,  pledges,  encumbrances,  charges,
claims or restrictions of any kind,  except as set forth in Schedule 4.3 hereto,
and have, or will have on the Closing  Date,  the  absolute,  unilateral  right,
power,  authority and capacity to enter into and perform this Agreement  without
any other or further  authorization,  action or proceeding,  except as specified
herein.

                  (c)  There are no  authorized  or  outstanding  subscriptions,
options,   warrants,  calls,  contracts,   demands,   commitments,   convertible
securities  or other  agreements  or  arrangements  of any  character  or nature
whatever under which any of the Companies are or may become  obligated to issue,
assign or transfer any shares of capital stock of any of the  Companies,  except
as set forth in Schedule  4.3 hereto.  Upon the  delivery  to  Purchaser  on the
Closing Date of the certificates  representing  the Shares,  Purchaser will have
good, legal, valid, marketable and indefeasible title to all the then issued and
outstanding  shares of  capital  stock of the  Companies,  free and clear of any
liens, pledges,  encumbrances,  charges,  agreements,  options,  claims or other
arrangements or  restrictions  of any kind (other than any such liens,  pledges,
encumbrances,  charges,  agreements,  options, claims and other arrangements and
restrictions that will be terminated and discharged promptly on Closing upon the
receipt  by the  holders  of the  same of  sums  sufficient  to pay in full  the
obligations secured by such liens and other  encumbrances,  which such liens are
attached hereto as Schedule 4.3(c)).

            4.4.  Basic  Corporate  Records.  The  copies  of  the  Articles  of
Incorporation  of each of the Companies  (certified by the Secretary of State or
other authorized official of the jurisdiction of incorporation),  and the Bylaws
of each of the  Companies,  as the case may be (certified as of the date of this
Agreement as true,  correct and complete by each of the Companies'  secretary or
assistant  secretary),  all of which have been delivered to the  Purchaser,  are
true, correct and complete as of the date of this Agreement.

            4.5. Minute Books. The minute books of each of the Companies,  which
shall be  exhibited  to the  Purchaser  between  the date hereof and the Closing
Date,  each  contain  true,  correct  and  complete  minutes  and records of all
meetings, proceedings and other actions of the shareholders, Boards of Directors
and  committees  of such Boards of Directors of each such  corporation,  if any,
and, on the Closing Date,  will contain true,  correct and complete  minutes and
records of any  meetings,  proceedings  and other  actions of the  shareholders,
respective  Boards of Directors  and  committees  of such Boards of Directors of
each such corporation.

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            4.6. Subsidiaries and Affiliates. Any and all businesses,  entities,
enterprises and  organizations  in which any of the Companies has any ownership,
voting or profit and loss sharing percentage  interest (the  "Subsidiaries") are
identified  in  Schedule  4.6  hereto,  together  with the  Companies'  interest
therein. Unless the context requires otherwise or specifically designated to the
contrary on Schedule 4.6 hereto,  "Companies"  as used in this  Agreement  shall
include all such Subsidiaries. Except as set forth in Sections 4.6 or 4.31 or on
Schedule 4.6 hereto,  (i) the Companies have made no advances to, or investments
in, nor owns beneficially or of record,  any securities of or other interest in,
any business, entity, enterprise or organization, (ii) there are no arrangements
through which any of the Companies has acquired from, or provided to, the Seller
or their  affiliates  any goods,  properties  or  services,  (iii)  there are no
rights, privileges or advantages now enjoyed by any of the Companies as a result
of the ownership of the  Companies by the Seller which,  to the knowledge of the
Seller or the Companies,  might be lost as a result of the  consummation  of the
transactions  contemplated by this Agreement.  Each entity shown on Schedule 4.6
is duly organized,  validly  existing and in good standing under the laws of the
jurisdiction  of its  incorporation,  and has full corporate power to own all of
its property and to carry on its business as it is now being conducted. Also set
forth on Schedule 4.6 hereto is a list of jurisdictions in which each Subsidiary
is  qualified  as  a  foreign  corporation.  Such  jurisdictions  are  the  only
jurisdictions  in which the ownership or leasing of property by each  Subsidiary
or the  conduct  of its  business  requires  it to be so  qualified.  All of the
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued, are fully paid and  nonassessable,  and, except as set forth
on Schedule 4.6 hereto, are owned, of record and beneficially, by the Companies,
and on the Closing  Date will be owned by the  Companies,  free and clear of all
liens,  encumbrances,  equities, options or claims whatsoever. No Subsidiary has
outstanding  any other equity  securities  or  securities  options,  warrants or
rights  of any  kind  that  are  convertible  into  equity  securities  of  such
Subsidiary, except as set forth on Schedule 4.6 hereto.

            4.7.  Consents.  Except  as set forth in  Schedule  4.7  hereto,  no
consents or approvals of any public body or authority and no consents or waivers
from  other  parties  to  leases,  licenses,  franchises,  permits,  indentures,
agreements or other instruments are (i) required for the lawful  consummation of
the  transactions  contemplated  hereby,  or (ii)  necessary  in order  that the
Business can be conducted by the  Purchaser in the same manner after the Closing
as  heretofore  conducted by the  Companies,  nor will the  consummation  of the
transactions contemplated hereby result in creating,  accelerating or increasing
any liability of the Companies.

            4.8. Financial Statements. The Seller has delivered, or will deliver
prior to Closing, to the Purchaser copies of the following financial  statements
(which include all notes and schedules attached thereto), all of which are true,
complete  and  correct,  have been  prepared  from the books and  records of the
Companies in accordance with generally accepted  accounting  principles ("GAAP")
consistently  applied  and  fairly  present  the  financial  condition,  assets,
liabilities  and results of  operations of the Companies as of the dates thereof
and for the periods covered thereby:

            the audited  combined  balance  sheet of each of the Companies as at
            December 31, 2004 and 2005,  and the related  audited  statements of
            operations,  stockholder's equity and of cash flows of the Companies
            for the years then ended and (ii) the unaudited balance sheet of the
            Companies as of June 30, 2006 and the related compiled  statement of
            operations  of the Companies for the six (6) month period then ended
            (such statements, including the related notes and schedules thereto,
            are referred to herein as the "Financial Statements").

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            In such  Financial  Statements,  the statements of operations do not
contain  any items of special  or  nonrecurring  income or any other  income not
earned in the  ordinary  course of business  except as set forth in Schedule 4.8
hereto,  and the financial  statements for the interim period indicated  include
all adjustments,  which consist of only normal recurring accruals, necessary for
such fair  presentation.  There  are no facts  known to any of the  Seller,  the
Companies or Lamoriello that,  under generally  accepted  accounting  principles
consistently  applied,  would alter the  information  contained in the foregoing
Financial Statements in any material way.

            For the purposes  hereof,  the balance  sheet of the Companies as of
June 30,  2006 is  referred  to as the  "Balance  Sheet"  and  June 30,  2006 is
referred to as the "Balance Sheet Date".

            4.9. Records and Books of Account.  The records and books of account
of the Companies and of each Subsidiary reflect all material items of income and
expense and all material assets, liabilities and accruals, and have been, and to
the Closing Date will be,  regularly kept and maintained in conformity with GAAP
applied on a consistent basis.

            4.10.  Absence  of  Undisclosed  Liabilities.  Except  as and to the
extent reflected or reserved against in the Companies'  Financial  Statements or
disclosed in Schedule 4.10 hereto,  there are no  liabilities  or obligations of
the  Companies  of  any  kind  whatsoever,  whether  accrued,  fixed,  absolute,
contingent,  determined or determinable,  and including  without  limitation (i)
liabilities to former,  retired or active  employees of the Companies  under any
pension,  health and welfare  benefit  plan,  vacation plan or other plan of the
Companies, (ii) tax liabilities incurred in respect of or measured by income for
any period prior to the close of business on the Balance  Sheet Date, or arising
out of transactions entered into, or any state of facts existing, on or prior to
said date, and (iii)  contingent  liabilities  in the nature of an  endorsement,
guarantee,  indemnity  or  warranty,  and there is no  condition,  situation  or
circumstance  existing or which has existed that could reasonably be expected to
result in any liability of the Companies,  other than liabilities and contingent
liabilities  incurred in the ordinary course of business since the Balance Sheet
Date consistent with the Companies' recent customary business practice,  none of
which is materially adverse to the Companies.

            4.11 Taxes.

                  (a) For purposes of this  Agreement,  "Tax" or "Taxes"  refers
to: (i) any and all federal,  state,  local and foreign taxes,  assessments  and
other  governmental  charges,  duties,  impositions and liabilities  relating to
taxes,  including  taxes  based  upon or  measured  by gross  receipts,  income,
profits,  sales,  use and  occupation,  and value added,  ad valorem,  transfer,
franchise,  withholding,  payroll,  recapture,  employment,  excise and property
taxes and  escheatment  payments,  together  with all  interest,  penalties  and
additions  imposed with respect to such  amounts and any  obligations  under any
agreements  or  arrangements  with any other person with respect to such amounts
and  including  any  liability  for  taxes  of a  predecessor  entity;  (ii) any
liability for the payment of any amounts of the type  described in clause (i) as
a result  of being or  ceasing  to be a member of an  affiliated,  consolidated,
combined or unitary group for any period  (including,  without  limitation,  any
liability  under Treas.  Reg.  Section  1.1502-6 or any comparable  provision of
foreign,  state or local law);  and (iii) any  liability  for the payment of any
amounts of the type  described  in clause (i) or (ii) as a result of any express
or  implied  obligation  to  indemnify  any  other  person or as a result of any
obligations  under any  agreements  or  arrangements  with any other person with
respect to such amounts and  including  any liability for taxes of a predecessor
entity.

                                       8
<PAGE>

                  (b) (i) Each of the  Companies  has timely  filed all federal,
state, local and foreign returns, estimates,  information statements and reports
("Returns")  relating to Taxes  required to be filed by such  Companies with any
Tax authority.  All such Returns are true,  correct and complete in all material
respects.  Each of the  Companies  has  paid all  Taxes  shown to be due on such
Returns.  Except as listed on Schedule  4.11  hereto,  none of the  Companies is
currently  the  beneficiary  of any  extensions of time within which to file any
Returns.  The Seller and the Companies  have furnished and made available to the
Purchaser  complete and accurate  copies of all income and other Tax Returns and
any amendments thereto filed by the Companies in the last three (3) years.

                        (ii) Each of the Companies, as of the Closing Date, will
have withheld and accrued or paid to the proper  authority all Taxes required to
have been withheld and accrued or paid by such company.

                        (iii) None of the Companies  has been  delinquent in the
payment  of any Tax nor is there  any Tax  deficiency  outstanding  or  assessed
against such Companies.  The Companies have not executed any unexpired waiver of
any statute of  limitations  on or extending  the period for the  assessment  or
collection of any Tax.

                        (iv) There is no dispute,  claim, or proposed adjustment
concerning  any Tax liability of the  Companies  either (A) claimed or raised by
any Tax  authority in writing and  delivered to the  Companies or (B) based upon
personal  contact  by any  officer of the  Companies  with any agent of such Tax
authority,  and to the knowledge of Seller and the Companies,  there is no claim
for  assessment,  deficiency,  or collection of Taxes,  or proposed  assessment,
deficiency  or  collection  from  the  Internal  Revenue  Service  or any  other
governmental  authority against the Companies which has not been satisfied.  The
Companies  are not a party to nor have any  Companies  been  notified in writing
that  it is  the  subject  of  any  pending,  proposed,  or  threatened  action,
investigation,  proceeding, audit, claim or assessment by or before the Internal
Revenue Service or any other governmental authority, nor does the Companies have
any reason to believe  that any such  notice  will be  received  in the  future.
Neither the Internal  Revenue Service nor any state or local taxation  authority
has ever  audited  any income tax return of any of the  Companies  except as set
forth in Schedule  4.11 hereto.  The  Companies  have not filed any requests for
rulings with the Internal Revenue Service. No power of attorney has been granted
by any of the Companies or its Affiliates with respect to any matter relating to
Taxes of the Companies.  There are no Tax liens of any kind upon any property or
assets of the  Companies,  except for  inchoate  liens for Taxes not yet due and
payable.

                                       9
<PAGE>

                        (v) The Companies have no liability for any unpaid Taxes
which has not been paid or accrued for or reserved on the  Financial  Statements
in  accordance  with  GAAP,  whether  asserted  or  unasserted,   contingent  or
otherwise.

                        (vi)   There  is  no   contract,   agreement,   plan  or
arrangement  to  which  any of the  Companies  is a party as of the date of this
Agreement,  including  but not  limited  to the  provisions  of this  Agreement,
covering any employee or former employee of the Companies that,  individually or
collectively,  would  reasonably  be expected to give rise to the payment of any
amount that would not be deductible  pursuant to Sections 280G, 404 or 162(m) of
the  Internal  Revenue  Code of  1986,  as  amended  (the  "Code").  There is no
contract,  agreement,  plan or  arrangement  to which any of the  Companies is a
party or by which it is bound to compensate any individual for excise taxes paid
pursuant to Section 4999 of the Code.

                        (vii) The Companies have not filed any consent agreement
under Section 341(f) of the Code or agreed to have Section 341(f)(2) of the Code
apply to any  disposition  of a  subsection  (f) asset (as  defined  in  Section
341(f)(4) of the Code) owned by the Companies.

                        (viii)  The  Companies  are not a party to,  nor has any
obligation under any tax-sharing,  tax indemnity or tax allocation  agreement or
arrangement.

                        (ix) None of the  Companies'  assets  are tax exempt use
property within the meaning of Section 168(h) of the Code.

            4.12. Accounts Receivable.  The accounts receivable of the Companies
shown on the  Balance  Sheet  Date,  and  those  to be  shown  in the  Financial
Statements,  are, and will be, actual bona fide receivables from transactions in
the ordinary course of business  representing  valid and binding  obligations of
others for the total dollar  amount shown  thereon,  and as of the Balance Sheet
Date were not (and presently are not) subject to any recoupments,  set-offs,  or
counterclaims.  All such  accounts  receivable  are and will be  collectible  in
amounts not less than the amounts (net of reserves)  carried on the books of the
Companies,  including the Financial  Statements,  and will be paid in accordance
with their terms except for those uncollectible accounts receivable as estimated
and as listed on Schedule 4.12 hereto. Except as listed on Schedule 4.12 hereto,
all such accounts  receivable are and will be actual bona fide  receivables from
transactions in the ordinary course of business.

            4.13. Intentionally Left Blank.

                                       10
<PAGE>

            4.14.  Machinery and Equipment.  Except for items disposed of in the
ordinary  course of business,  all  computers and related  software,  machinery,
tools, furniture,  fixtures, equipment, vehicles, leasehold improvements and all
other tangible personal property,  including,  but not limited to the assets set
forth on Schedule 4.14,  (hereinafter "Fixed Assets") of the Companies currently
being used in the conduct of its business,  or included in  determining  the net
book  value of the  Companies  on the  Balance  Sheet  Date,  together  with any
machinery  or  equipment  that is leased or  operated by the  Companies,  are in
materially  serviceable  working  condition  and repair  except as  described on
Schedule 4.14 hereto.  Said Fixed Assets shall be  maintained in such  condition
from the date hereof  through the Closing Date.  Except as described on Schedule
4.14 hereto,  all Fixed Assets owned,  used or held by each of the Companies are
situated  at its  business  premises  and are  currently  used in its  business.
Schedule 4.14 hereto describes all Fixed Assets owned by or an interest in which
is claimed by any other person  (whether a customer,  supplier or other  person)
for which the  Companies  are  responsible  (copies of all  agreements  relating
thereto being attached to said Schedule  4.14),  and all such property is in the
Companies'  actual  possession  and is in such condition that upon the return of
such property in its present  condition to its owner,  the Companies will not be
liable in any material amount to such owner. To the knowledge of the Seller, the
Companies   and   Lamoriello,   there  are  no   outstanding   requirements   or
recommendations  by any  insurance  company  that has  issued a policy  covering
either (i) such Fixed Assets or (ii) any  liabilities of the Companies  relating
to operation of the Business, or by any board of fire underwriters or other body
exercising similar  functions,  requiring or recommending any repairs or work to
be done on any Fixed Assets or any changes in the  operations  of the  Business,
any equipment or machinery  used  therein,  or any  procedures  relating to such
operations,  equipment or  machinery.  All Fixed Assets of the Companies are set
forth on Schedule 4.14 hereto.

            4.15.  Real  Property  Matters.  The  Companies  do not own any real
property as of the date hereof and have not owned any real  property  during the
three years preceding the date hereof.

            4.16.  Leases.  All  leases  of real and  personal  property  of the
Companies are  described in Schedule  4.16 hereto,  are in full force and effect
and: (a)  constitute  legal,  valid and binding  obligations  of the  respective
parties thereto enforceable in accordance with their terms, except as limited by
bankruptcy, insolvency,  reorganization,  moratorium or similar laws relating to
or affecting  generally the enforcement of creditor's  rights,  and (b) have not
been  assigned or  encumbered.  The  Companies  have  performed  in all material
respects the obligations required to be performed by it under all such leases to
date and are not in default in any  material  respect  under any of said leases,
except as set  forth in  Schedule  4.16  hereto,  nor has it made any  leasehold
improvements  required  to be removed at the  termination  of any lease,  except
signs. To the knowledge of the Seller,  the Companies and  Lamoriello,  no other
party to any such lease is in material  default  thereunder.  Except as noted on
Schedule 4.16 hereto, none of the leases listed thereon require the consent of a
third party in connection with the transfer of the Shares.

                                       11
<PAGE>

            4.17.  Patents,  Software,  Trademarks,  Etc. The Companies  own, or
possess  adequate  licenses  or other  rights  to use,  all  patents,  software,
trademarks, service marks, trade names and copyrights and trade secrets, if any,
necessary  to  conduct  their  respective  businesses  as  now  operated  by the
Companies,  except for the  centralized  technology  infrastructure  (the "CTI")
owned by  Seller  and  used by the  Companies,  which  CTI is the  subject  of a
separate Technology Agreement by and between Seller and Purchaser.  The patents,
software,  trademarks, service marks, copyrights, trade names and trade secrets,
if any,  registered  in the  name of or  owned  or  used by or  licensed  to the
Companies and applications for any thereof  (hereinafter the  "Intangibles") are
described or  referenced in Schedule  4.17 hereto.  Seller  hereby  specifically
acknowledges  that all  right,  title and  interest  in and to all  patents  and
software  listed on Schedule 4.17 as patents owned by the Companies are owned by
the  Companies  and that the  ownership  of such  patents and  software  will be
transferred  as part of the  Companies to  Purchaser as part of the  transaction
contemplated  hereby.  No  officer,  director,  shareholder  or  employee of the
Companies  or any  relative  or spouse of any such  person  owns any  patents or
patent applications or any inventions,  software,  secret formulae or processes,
trade secrets or other similar rights, nor is any of them a party to any license
agreement,  used by or useful to the Companies or related to the Business except
as listed in Schedule 4.17 hereto. All of said Intangibles are valid and in good
standing,  are  free  and  clear  of all  liens,  security  interests,  charges,
restrictions and encumbrances of any kind whatsoever, and have not been licensed
to any third party except as described in Schedule  4.17 hereto.  The  Companies
have not been charged with, nor has it infringed,  nor to the Seller's knowledge
is it threatened  to be charged with  infringement  of, any patent,  proprietary
rights or trade  secrets of others in the conduct of its  business,  and, to the
date hereof,  neither the Seller nor the  Companies  have received any notice of
conflict  with or  violation  of the  asserted  rights in  intangibles  or trade
secrets of others.  The  Companies are not now  manufacturing  any goods under a
present permit,  franchise or license, except as set forth in said Schedule 4.17
hereto. The consummation of the transactions  contemplated hereby will not alter
or impair any rights of the  Companies  in any such  Intangibles  or in any such
permit,  franchise or license,  except as described in Schedule 4.17 hereto. The
Intangibles and the Companies' tooling,  manufacturing and engineering drawings,
process sheets, specifications, bills of material and other like information and
data are in such  form and of such  quality  and  will be  maintained  in such a
manner  that  the  Companies  can,  following  the  Closing,   design,  produce,
manufacture,  assemble and sell the products and provide the services heretofore
provided by it so that such products and services meet applicable specifications
and  conform  with the  standards  of quality and cost of  production  standards
heretofore met by it. The Companies have the sole and exclusive right to use its
corporate and trade names in the jurisdictions where it transacts business.

            4.18. Insurance Policies. There is set forth in Schedule 4.18 hereto
a list and brief  description of all insurance  policies on the date hereof held
by the Companies or on which it pays premiums,  including,  without  limitation,
life insurance and title  insurance  policies,  which  description  includes the
premiums payable by the Companies thereunder.  Schedule 4.18 also sets forth, in
the case of any life  insurance  policy held by the  Companies,  the name of the
insured  under such  policy,  the cash  surrender  value  thereof  and any loans
thereunder.  All such insurance  premiums in respect of such coverage have been,
and to the Closing Date will be, paid in full, or if not due,  properly  accrued
on the Balance Sheet.  All claims,  if any, made against the Companies which are
covered by such  policies  have been,  or are being,  settled or defended by the
insurance companies that have issued such policies. Up to the Closing Date, such
insurance  coverage  will be maintained in full force and effect and will not be
cancelled,  modified  or changed  without  the  express  written  consent of the
Purchaser,  except  to the  extent  the  maturity  dates of any  such  insurance
policies  expiring prior to the Closing Date. No such policy has been, or to the
Closing Date will be, cancelled by the issuer thereof,  and, to the knowledge of
the Seller and the  Companies,  between the date  hereof and the  Closing  Date,
there shall be no increase in the premiums  with  respect to any such  insurance
policy caused by any action or omission of the Seller or of the Companies.

                                       12
<PAGE>

            4.19. Banking and Personnel Lists. The Seller and the Companies will
deliver to the Purchaser prior to the Closing Date the following  accurate lists
and summary descriptions relating to the Companies:

                        (i) The name of each bank in which the Companies have an
account or safe  deposit  box and the names of all  persons  authorized  to draw
thereon or have access thereto.

                        (ii) The names,  current  annual  salary rates and total
compensation for the preceding  fiscal year of all of the present  directors and
officers of the Companies,  and any other  employees  whose current base accrual
salary or annualized hourly rate equivalent is $20,000 or more,  together with a
summary of the bonuses, percentage compensation and other like benefits, if any,
paid or  payable  to such  persons  for the last  full  fiscal  year  completed,
together with a schedule of changes since that date, if any.

                        (iii) A schedule  of workers'  compensation  payments of
the Companies  over the past five full fiscal years and the fiscal year to date,
a  schedule  of  claims by  employees  of the  Companies  against  the  workers'
compensation  fund  for any  reason  over  such  period,  identification  of all
compensation  and  medical  benefits  paid to date on each  such  claim  and the
estimated  amount of compensation  and medical benefits to be paid in the future
on each such claim.

                        (iv)  The  name  of  all  pensioned   employees  of  the
Companies  whose  pensions are unfunded and are not paid or payable  pursuant to
any formalized  pension  arrangements,  their agent and annual unfunded  pension
rates.

                        (v)  The  name,  address,  telephone  number,  facsimile
number,  email address, the name of the principal contact and all other relevant
contact information of all clients and business relationships of the Seller.

            4.20.  Lists of Contracts,  Etc.  There is included in Schedule 4.20
hereto a list of the following  items (whether  written or oral) relating to the
Companies, which list identifies and fairly summarizes each item:

                        (i) All  collective  bargaining  and other  labor  union
agreements  (if any);  all  employment  agreements  with any officer,  director,
employee or consultant;  and all employee  pension,  health and welfare  benefit
plans,   group   insurance,   bonus,   profit  sharing,   severance,   vacation,
hospitalization,  and retirement plans,  post-retirement  medical benefit plans,
and any other plans,  arrangements or custom  requiring  payments or benefits to
current or retiring employees.

                        (ii) All joint  venture  contracts  of the  Companies or
affiliates relating to the Business;

                                       13
<PAGE>

                        (iii) All  contracts  of the  Companies  relating to (a)
obligations for borrowed money, (b) obligations evidenced by bonds,  debentures,
notes or other similar instruments, (c) obligations to pay the deferred purchase
price of property or services,  except  trade  accounts  payable  arising in the
ordinary course of business,  (d) obligations under capital leases,  (e) debt of
others secured by a lien on any asset of the Companies,  and (f) debts of others
guaranteed by the Companies.

                        (iv) All  agreements  of the  Companies  relating to the
supply  of raw  materials  for  and  the  distribution  of the  products  of the
Business,  including  without  limitation all sales  agreements,  manufacturer's
representative  agreements and distribution agreements of whatever magnitude and
nature, and any commitments therefor;

                        (v)  All  contracts   that   individually   provide  for
aggregate  future payments to or from any of the Companies of $5,000 or more, to
the extent not included in (i) through (iv) above;

                        (vi) All  contracts  of the  Companies  that have a term
exceeding one year and that may not be cancelled without any liability,  penalty
or premium, to the extent not included in (i) through (v) above;

                        (vii) A  complete  list  of all  outstanding  powers  of
attorney granted by any of the Companies; and

                        (viii) All other contracts of the Companies  material to
the business, assets, liabilities, financial condition, results of operations or
prospects of the Business taken as a whole to the extent not included above.

            Except as set forth in  Schedule  4.20  hereto,  (i) all  contracts,
agreements  and  commitments  of the  Companies  set forth in Schedule  4.20 are
valid,  binding  and in full  force  and  effect,  (ii) the  Companies  have not
materially  breached any provision of any contract,  agreement and commitment of
the  Companies  or is in default  thereunder  and (iii) to the  knowledge of the
Seller,  the  Companies  and  Lamoriello,  no other party to any such  contract,
agreement,  or commitment has materially breached any provision thereof or is in
default thereunder. Except as set forth in Schedule 4.20 hereto, the sale of the
Shares by the Seller in accordance  with this  Agreement  will not result in the
termination of any contract,  agreement or commitment of the Companies set forth
in Schedule 4.20 hereto, and immediately after the Closing,  each such contract,
agreement  or  commitment  will  continue  in full force and effect  without the
imposition or  acceleration of any burdensome  condition or other  obligation on
the  Companies  resulting  from the sale of the Shares by the  Seller.  True and
complete copies of the contracts,  leases, licenses and other documents referred
to in this Schedule 4.20 hereto shall be delivered to the  Purchaser,  certified
by the Secretary or Assistant  Secretary of the  Companies as true,  correct and
complete copies prior the Closing Date.

                                       14
<PAGE>

            There are no  pending  disputes  with  customers  or  vendors of the
Companies regarding quality or return of goods involving amounts in dispute with
any one customer or vendor,  whether for related or unrelated  claims, in excess
of $5,000  except as  described on Schedule  4.20  hereto,  all of which will be
resolved to the reasonable  satisfaction of Purchaser prior to the Closing Date.
To the knowledge of Seller, Lamoriello and the Companies, there has not been any
event,  happening,  threat or fact that would  lead them to believe  that any of
said  customers or vendors will  terminate or  materially  alter their  business
relationship   with  the  Companies   after   completion  of  the   transactions
contemplated by this Agreement.

            4.21.  Compliance With the Law. To the knowledge of the Seller,  the
Companies and  Lamoriello,  the Companies are not in violation of any applicable
federal,  state, local or foreign law,  regulation or order or any other, decree
or  requirement  of any  governmental,  regulatory or  administrative  agency or
authority or court or other  tribunal  (including,  but not limited to, any law,
regulation order or requirement  relating to securities,  properties,  business,
products,  manufacturing processes,  advertising, sales or employment practices,
terms and conditions of  employment,  occupational  safety,  health and welfare,
conditions of occupied premises,  product safety and liability, civil rights, or
environmental protection,  including, but not limited to, those related to waste
management,  air pollution  control,  waste water treatment or noise abatement).
Except as set forth in Schedule 4.21 hereto, the Companies have not been and are
not now charged  with,  or to the  knowledge  of the Seller,  Lamoriello  or the
Companies under  investigation  with respect to, any violation of any applicable
law, regulation,  order or requirement relating to any of the foregoing, nor, to
the  knowledge of Seller,  Lamoriello or the  Companies  after due inquiry,  are
there any circumstances that would or might give rise to any such violation. The
Companies have filed all reports  required to be filed by the Companies with any
governmental, regulatory or administrative agency or authority.

            4.22.  Litigation;  Pending Labor  Disputes.  Except as specifically
identified on Schedule 4.22 hereto:

                        (i) There are no legal,  administrative,  arbitration or
other proceedings or governmental investigations pending or, to the knowledge of
Seller,  Lamoriello  or the  Companies,  threatened,  against  the Seller or the
Companies,  relating  to the  Business  or the  Companies  or  their  respective
properties (including leased property), or the transactions contemplated by this
Agreement,  nor is there  any  basis  known  to the  Seller,  Lamoriello  or the
Companies for any such action.

                        (ii)  There are no  judgments,  decrees or orders of any
court,  or  any   governmental   department,   commission,   board,   agency  or
instrumentality binding upon Seller or the Companies relating to the Business or
the  Companies  the effect of which is to prohibit any business  practice or the
acquisition  of any property or the conduct of any business by the  Companies or
which limit or control or otherwise  adversely  affect the Companies'  method or
manner of doing business.

                        (iii) No work  stoppage has  occurred and is  continuing
or, to the knowledge of Seller or the  Companies,  is  threatened  affecting the
Business,  and no representation  question involving recognition of a collective
bargaining agent exists in respect of any employees of the Companies.

                                       15
<PAGE>

                        (iv) There are no pending  labor  negotiations  or union
organization efforts relating to employees of the Companies.

                        (v) There are no charges of discrimination  (relating to
sex, age, race,  national  origin,  handicap or veteran  status) or unfair labor
practices  pending  or,  to the  knowledge  of  the  Seller  or  the  Companies,
threatened  before any  governmental  or  regulatory  agency or authority or any
court relating to employees of the Companies.

            4.23.  Absence of Certain Changes or Events. The Companies have not,
since the Balance Sheet Date, except as described on Schedule 4.23 hereto:

                        (i)  Incurred  any  material   obligation  or  liability
(absolute,  accrued,  contingent or otherwise)  and any  obligation or liability
incurred by the  Companies in the  ordinary  course is not  materially  adverse,
except for claims, if any, that are adequately covered by insurance;

                        (ii) Discharged or satisfied any lien or encumbrance, or
paid or satisfied any obligations or liability (absolute, accrued, contingent or
otherwise)  other than (a) liabilities  shown or reflected on the Balance Sheet,
and (b) liabilities incurred since the Balance Sheet Date in the ordinary course
of business that were not materially adverse;

                        (iii)  Increased or  established  any reserve or accrual
for taxes or other liability on its books or otherwise provided therefor, except
(a) as disclosed on the Balance  Sheet,  or (b) as may have been required  under
generally accepted accounting principles due to income earned or expense accrued
since the Balance Sheet Date and as disclosed to the Purchaser in writing;

                        (iv) Mortgaged, pledged or subjected to any lien, charge
or other encumbrance any of its assets, tangible or intangible;

                        (v) Sold or  transferred  any of its assets or cancelled
any debts or  claims or waived  any  rights,  except in the  ordinary  course of
business and which sale or transfer has not been materially adverse;

                        (vi)  Disposed of or  permitted  to lapse any patents or
trademarks or any patent or trademark  applications material to the operation of
its business;

                        (vii) Incurred any significant  labor trouble or granted
any general or uniform  increase in salary or wages payable or to become payable
by it to any director,  officer,  employee or agent, or by means of any bonus or
pension plan,  contract or other  commitment  increased the  compensation of any
director, officer, employee or agent;

                                       16
<PAGE>

                        (viii)  Authorized  any  capital  expenditure  for  real
estate or  leasehold  improvements,  machinery,  equipment or molds in excess of
$5,000.00 in the aggregate;

                        (ix)  Except  for  this  Agreement,   entered  into  any
material transaction;

                        (x)  Issued  any  stocks,   bonds,  or  other  corporate
securities,  or  made  any  declaration  or  payment  of  any  dividend  or  any
distribution in respect of its capital stock; or

                        (xi) Experienced damage, destruction or loss (whether or
not  covered by  insurance)  individually  or in the  aggregate  materially  and
adversely  affecting any of its properties,  assets or business,  or experienced
any other material  adverse change or changes  individually  or in the aggregate
affecting its financial condition, assets, liabilities or business.

            4.24. Employee Benefit Plans.

                  (a) Schedule  4.24 lists a  description  of the only  Employee
Programs (as defined  below) that have been  maintained (as such term is further
defined  below) by the  Companies at any time during the five (5) years prior to
the date hereof.

                  (b) There has not been any failure of any party to comply with
any  laws  applicable  with  respect  to any  Employee  Program  that  has  been
maintained by any of the Companies. With respect to any Employee Programs now or
heretofore  maintained by the Companies,  the  Companies,  there has occurred no
breach of any duty under the Employee Retirement Income Security Act of 1974, as
amended  ("ERISA")  or other  applicable  law which  could  result,  directly or
indirectly  in any taxes,  penalties or other  liability to the  Purchaser,  the
Companies or any affiliate (as defined below).  No litigation,  arbitration,  or
governmental  administrative  proceeding (or  investigation) or other proceeding
(other than those relating to routine claims for benefits) is pending or, to the
knowledge  of the  Companies  or  Seller,  threatened  with  respect to any such
Employee Program.

                  (c)  Except as set forth in  Schedule  4.24  attached  hereto,
neither the Companies nor any affiliate has ever (i) provided health care or any
other  non-pension   benefits  to  any  employees  after  their  employment  was
terminated  (other than as required by Part 6 of Subtitle B of Title I of ERISA)
or  has  ever  promised  to  provide  such  post-termination  benefits  or  (ii)
maintained an Employee Program provided to such employees subject to Title IV of
ERISA, Section 401(a) or Section 412 of Code, including, without limitation, any
Multiemployer Plan.

                  (d) For purposes of this Section 4.24:

                        (i) "Employee  Program"  means (A) all employee  benefit
plans within the meaning of ERISA Section 3(3),  including,  but not limited to,
multiple  employer  welfare  arrangements  (within the meaning of ERISA  Section
3(40)),  plans to which  more than one  unaffiliated  employer  contributes  and
employee  benefit plans (such as foreign or excess  benefit plans) which are not
subject to ERISA;  and (B) all stock  option  plans,  bonus or  incentive  award
plans, severance pay policies or agreements,  deferred compensation  agreements,
supplemental income arrangements, vacation plans, and all other employee benefit
plans,  agreements,  and arrangements not described in (A) above. In the case of
an Employee  Program  funded through an  organization  described in Code Section
501(c)(9),  each reference to such Employee Program shall include a reference to
such organization;

                                       17
<PAGE>

                        (ii) An entity  "maintains" an Employee  Program if such
entity  sponsors,  contributes  to, or  provides  (or has  promised  to provide)
benefits  under such Employee  Program,  or has any  obligation (by agreement or
under  applicable law) to contribute to or provide  benefits under such Employee
Program,  or if such Employee Program  provides  benefits to or otherwise covers
employees of such entity (or their spouses, dependents, or beneficiaries);

                        (iii) An entity is an  "affiliate"  of a  Companies  for
purposes of this  Section  3.24 if it would have ever been  considered  a single
employer  with the  Companies  under ERISA  Section  4001(b) or part of the same
"controlled group" as the Companies for purposes of ERISA Section  302(d)(8)(C);
and

                        (iv)   "Multiemployer   Plan"   means  a   (pension   or
non-pension)  employee benefit plan to which more than one employer  contributes
and  which  is  maintained  pursuant  to  one  or  more  collective   bargaining
agreements.

            4.25.  Product  Warranties  and  Product  Liabilities.  The  product
warranties and return policies of the Companies in effect on the date hereof and
the types of products to which they apply are described on Schedule 4.25 hereto.
Schedule  4.25  hereto also sets forth all product  liability  claims  involving
amounts in controversy in excess of $5,000 that are currently either pending or,
to the best of the Seller's and the Companies' knowledge, threatened against the
Companies.  The Companies have not paid in the aggregate,  or allowed as credits
against purchases, or received claims for more than one percent (1%) per year of
gross sales, as determined in accordance with GAAP consistently applied,  during
the past three years pursuant to  obligations  under any warranty or any product
liability  claim with respect to goods  manufactured,  assembled or furnished by
the Companies. To the knowledge of the Seller, the Companies and Lamoriello, the
future  cost of  performing  all such  obligations  and paying all such  product
liability  claims with  respect to goods  manufactured,  assembled  or furnished
prior to the Closing  Date will not exceed the average  annual cost  thereof for
said past three year period.

            4.26.  Assets.  The  assets  of the  Companies  are  located  at the
locations  listed on Schedule  4.26  attached  hereto.  Except as  described  in
Schedule  4.26 hereto,  the assets of the  Companies  are, and together with the
additional assets to be acquired or otherwise received by the Companies prior to
the Closing,  will at the Closing Date be sufficient in all material respects to
carry on the operations of the Business as now conducted by the  Companies.  The
Companies  (including  for such  purpose  any  Subsidiaries  thereof  listed  on
Schedule  4.26 hereto) are the only  business  organizations  through  which the
Business is  conducted.  Except as set forth in Schedule  4.16 or Schedule  4.26
hereto,  all assets used by the Seller and the Companies to conduct the Business
are, and will on the Closing Date be, owned by the Companies.

                                       18
<PAGE>

            4.27. Absence of Certain Commercial  Practices.  Except as described
on  Schedule  4.27  hereto,  neither the  Companies  nor the Seller has made any
payment  (directly or by secret  commissions,  discounts,  compensation or other
payments)  or  given  any  gifts to  another  business  concern,  to an agent or
employee of another business concern or of any governmental  entity (domestic or
foreign) or to a political party or candidate for political  office (domestic or
foreign), to obtain or retain business for the Companies or to receive favorable
or  preferential  treatment,   except  for  gifts  and  entertainment  given  to
representatives  of  customers or potential  customers of  sufficiently  limited
value and in a form (other than cash) that would not be  construed as a bribe or
payoff.

            4.28. Licenses, Permits, Consents and Approvals. The Companies have,
and at the Closing Date will have, all licenses, permits or other authorizations
of   governmental,   regulatory  or   administrative   agencies  or  authorities
(collectively, "Licenses") required to conduct the Business. All Licenses of the
Companies are listed on Schedule 4.28 hereto. At the Closing, the Companies will
have all such  Licenses  which are  material to the conduct of the  Business and
will have renewed all Licenses  which would have expired in the interim.  Except
as listed in Schedule 4.28 hereto, no registration, filing, application, notice,
transfer, consent, approval, order, qualification, waiver or other action of any
kind (collectively,  a "Filing") will be required as a result of the sale of the
Shares by Seller in accordance  with this Agreement (a) to avoid the loss of any
License or the violation, breach or termination of, or any default under, or the
creation of any lien on any asset of the Companies pursuant to the terms of, any
law,  regulation,  order or other  requirement or any contract  binding upon the
Companies or to which any such asset may be subject,  or (b) to enable Purchaser
(directly or through any  designee) to continue the  operation of the  Companies
and the Business  substantially as conducted prior to the Closing Date. All such
Filings will be duly filed, given,  obtained or taken on or prior to the Closing
Date and will be in full force and effect on the Closing Date.

            4.29.  Environmental  Matters.  Except as set forth on Schedule 4.29
hereto:

            (a) The operations of the Companies are in material  compliance with
all applicable  Laws  promulgated  by any  governmental  entity which  prohibit,
regulate or control any hazardous  material or any hazardous  material  activity
("Environmental  Laws") and the Companies  have all permits  issued  pursuant to
Environmental Laws or otherwise except for where noncompliance or the absence of
such  permits  would  not,  individually  or in the  aggregate,  have a Material
Adverse Effect;

            (b) The  Companies  have  obtained  all permits  required  under all
applicable Environmental Laws necessary to operate the Business;

            (c) The  Companies  are not the subject of any  outstanding  written
order  or  Contract  with  any  governmental   authority  or  person  respecting
Environmental Laws or any violation or potential violations thereof; and,

                                       19
<PAGE>

            (d) The  Companies  have  not  received  any  written  communication
alleging  either  or  both  that  the  Companies  may  be in  violation  of  any
Environmental  Law, or any permit issued pursuant to  Environmental  Law, or may
have any liability under any Environmental Law.

            4.30 Broker.  Except as specified in Schedule  4.30 hereto,  neither
the  Companies  nor the Seller has  retained any broker in  connection  with any
transaction  contemplated by this  Agreement.  Purchaser and the Companies shall
not be obligated to pay any fee or commission  associated  with the retention or
engagement  by the  Companies  or Seller of any  broker in  connection  with any
transaction contemplated by this Agreement.

            4.31.  Related Party  Transactions.  Except as described in Schedule
4.31 hereto,  all transactions  during the past five years between the Companies
and any current or former  shareholder  or any entity in which the  Companies or
any current or former  shareholder had or has a direct or indirect interest have
been fair to the Companies as  determined by the Board of Directors.  No portion
of the  sales or other  on-going  business  relationships  of the  Companies  is
dependent  upon the friendship or the personal  relationships  (other than those
customary  within  business  generally)  of the Seller,  except as  described in
Schedule  4.31  hereto.  During  the past five  years,  the  Companies  have not
forgiven or cancelled,  without receiving full  consideration,  any indebtedness
owing to them by the Seller.

            4.32 Patriot Act. The Companies and the Seller  certify that neither
the  Companies nor any of their  Subsidiaries  has been  designated,  and is not
owned or controlled,  by a "suspected  terrorist" as defined in Executive  Order
13224. The Companies and the Seller hereby  acknowledge that the Purchaser seeks
to comply with all  applicable  laws  concerning  money  laundering  and related
activities. In furtherance of those efforts, the Companies and the Seller hereby
represent,  warrant  and agree that:  (i) none of the cash or property  that the
Seller has  contributed or paid or will  contribute and pay to the Companies has
been or shall be derived  from,  or  related  to,  any  activity  that is deemed
criminal  under United  States law; and (ii) no  contribution  or payment by the
Companies or any of their Subsidiaries to the Purchaser, to the extent that they
are within the  Companies'  and/or their  Subsidiaries'  control shall cause the
Purchaser to be in  violation of the United  States Bank Secrecy Act, the United
States  International  Money Laundering Control Act of 1986 or the United States
International  Money Laundering  Abatement and  Anti-Terrorist  Financing Act of
2001.  The  Seller  shall  promptly   notify  the  Purchaser  if  any  of  these
representations  ceases  to be true  and  accurate  regarding  the  Seller,  the
Companies  or any of their  Subsidiaries.  The  Seller  agrees  to  provide  the
Purchaser  any  additional  information  regarding the Companies or any of their
Subsidiaries  that the Purchaser  reasonably  requests to ensure compliance with
all applicable laws concerning money laundering and similar activities.

            4.33 Investment Intent. The Purchase Price Shares are being acquired
hereunder by the Seller for investment  purposes only, for its own account,  not
as a  nominee  or agent  and not with a view to the  distribution  thereof.  The
Seller has no present  intention  to sell or  otherwise  dispose of the Purchase
Price Shares and it will not do so except in compliance  with the  provisions of
the  Securities  Act of  1933,  as  amended,  and  applicable  law.  The  Seller
understands  that the Purchase Price Shares  acquired  hereunder must be held by
them  indefinitely  unless a subsequent  disposition  or transfer of any of said
shares is registered under the Securities Act of 1933, as amended,  or is exempt
from registration  therefrom.  The Seller further  understand that the exemption
from  registration  afforded by Rule 144 (the  provisions  of which are known to
such Seller)  promulgated under the Securities Act of 1933, as amended,  depends
on the  satisfaction of various  conditions,  and that, if and when  applicable,
Rule 144 may afford the basis for sales only in limited amounts.

                                       20
<PAGE>

            4.34 Accreditation.

            The Seller is an  "accredited  investor"  within the meaning of Rule
501(a) of Regulation D promulgated under the Securities Act of 1933, as amended.
The Seller  understands  that the  Purchase  Price  Shares are being  offered in
reliance upon specific  exemptions from the registration  requirements of United
States federal and state  securities laws and that the Purchaser is relying upon
the  truth  and   accuracy   of,  and  the   Seller's   compliance   with,   the
representations,  warranties, agreements,  acknowledgments and understandings of
the Seller  set forth  herein in order to  determine  the  availability  of such
exemptions  and the  eligibility  of the Seller to acquire  the  Purchase  Price
Shares.

            4.35.   Disclosure.   All  statements  contained  in  any  schedule,
certificate, opinion, instrument, or other document delivered by or on behalf of
the Seller,  Lamoriello or the Companies  pursuant  hereto or in connection with
the  transactions  contemplated  hereby  shall  be  deemed  representations  and
warranties by the Seller,  Lamoriello  and the Companies  herein.  No statement,
representation  or warranty by the Seller,  Lamoriello  or the Companies in this
Agreement  or in  any  schedule,  certificate,  opinion,  instrument,  or  other
document  furnished or to be furnished to the  Purchaser  pursuant  hereto or in
connection with the  transactions  contemplated  hereby contains or will contain
any  untrue  statement  of a  material  fact or  omits  or will  omit to state a
material fact required to be stated  therein or necessary to make the statements
contained  therein not misleading or necessary in order to provide a prospective
purchaser  of the  business  of the  Companies  with  full and  fair  disclosure
concerning the Companies, the Business, and the Companies' affairs.

                                   ARTICLE V
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

            5.1 Organization and Good Standing.

            The Purchaser is a corporation duly organized,  validly existing and
in good  standing  under the laws of the State of Florida  and has all  material
licenses,  permits,  authorizations and the power and authority to own and lease
its  assets  and  properties  and to  conduct  its  business  as it is now being
conducted.  The Purchaser is duly qualified or licensed to do business and is in
good standing as a foreign  corporation  under the laws of the  jurisdictions in
which the conduct of its business or the  ownership or leasing of its assets and
properties requires such qualification.

                                       21
<PAGE>

            5.2 Authority; Enforceability.

            The  Purchaser  has the  corporate  power and  authority to execute,
deliver  and  perform  this  Agreement  and  to  consummate   the   transactions
contemplated  hereby. The execution,  delivery and performance of this Agreement
by the Purchaser have been duly authorized by all necessary  corporate action on
the part of the  Purchaser.  This Agreement has been duly executed and delivered
by the Purchaser and this Agreement  constitutes (or when executed and delivered
will  constitute)  legal,  valid  and  binding  obligations  of  the  Purchaser,
enforceable against the Purchaser in accordance with their respective terms.

            5.3 Conflicts; Consents of Third Parties.

      (a)  The  authorization,   execution,  delivery  and  performance  by  the
Purchaser  of  this  Agreement  and  the  other  Purchaser   Documents  and  the
consummation of the transactions contemplated hereby and thereby do not and will
not (i) violate or conflict  with any  provision of the  Purchaser's  charter or
bylaws;  (ii) violate,  conflict with, result in a breach of or constitute (with
or  without  notice  or lapse of time or both) a default  under,  give rise to a
right of termination,  amendment or cancellation of,  accelerate the performance
required by, or result in any payment under,  any contract,  instrument or other
writing of any nature  whatsoever  to or by which the Purchaser is a party or is
bound, or by which any of its properties or assets is subject; or (iii) violate,
conflict with or result in a breach of any law, rule,  regulation or other legal
requirement applicable to the Purchaser.

            (b) No consent, waiver, approval, order, permit or authorization of,
or declaration or filing with, or  notification  to, any person or  governmental
body is required on the part of the Purchaser in  connection  with the execution
and delivery of this  Agreement or the  compliance by Purchaser  with any of the
provisions hereof or thereof.

            5.4 Litigation.

            There is no action, suit, proceeding (including, without limitation,
all arbitrations and alternative dispute resolution proceedings) or governmental
investigation  of or pending or, to the knowledge of the  Purchaser,  threatened
against the Purchaser  which relates to the  transactions  contemplated  by this
Agreement,  nor does the Purchaser have any knowledge of any  reasonably  likely
basis or set of circumstances for any such action,  suit,  proceeding,  claim or
investigation,  the result of which could  materially  and adversely  affect the
Purchaser or the transactions contemplated hereby or could impair the ability of
the Purchaser to consummate the transactions contemplated hereby.

            5.5 Investment Intention.

            The  Purchaser  is  acquiring  the Shares for its own  account,  for
investment  purposes only and not with a view to the  distribution (as such term
is used in  Section  2(11)  of the  Securities  Act of  1933,  as  amended  (the
"Securities Act") thereof.  Purchaser  understands that the Shares have not been
registered  under the  Securities  Act and  cannot be sold  unless  subsequently
registered  under the Securities Act or an exemption from such  registration  is
available.

                                       22
<PAGE>

            5.6 Due Authorization of Purchase Price Shares.

            The  Purchase  Price  Shares when  delivered  to the Seller shall be
validly issued and outstanding as fully paid and non-assessable,  free and clear
of any liens, pledges,  encumbrances,  charges,  agreements,  options, claims or
other  arrangements  or  restrictions  of any kind except  that  certain of such
Purchase Price Shares are subject to cancellation if the Shortfall occurs as set
forth in Article II of this Agreement.

            5.7 Broker.

            The  Purchaser  has not retained any broker in  connection  with any
transaction contemplated by this Agreement. The Seller shall not be obligated to
pay any fee or  commission  associated  with the  retention or engagement by the
Purchaser of any broker in connection with any transaction  contemplated by this
Agreement.

                                   ARTICLE VI
                                    COVENANTS

            6.1 Access to Information.

            The Seller and the Companies agree that,  prior to the Closing Date,
the  Purchaser   shall  be  entitled,   through  its  officers,   employees  and
representatives   (including,   without  limitation,   its  legal  advisors  and
accountants),  to make such  investigation  of the  properties,  businesses  and
operations of the Companies and their  Subsidiaries  and such examination of the
books,  records and financial  condition of the Companies and their Subsidiaries
as it  reasonably  requests  and to make  extracts  and copies of such books and
records.  Any such  investigation  and  examination  shall be  conducted  during
regular business hours and under reasonable circumstances,  and the Seller shall
cooperate,  and shall cause the Companies and their  Subsidiaries  to cooperate,
fully therein.  No  investigation by the Purchaser prior to or after the date of
this Agreement shall diminish or obviate any of the representations, warranties,
covenants or agreements of the Seller  contained in this Agreement or the Seller
Documents.  In order that the Purchaser may have full  opportunity  to make such
physical, business, accounting and legal review, examination or investigation as
it  may   reasonably   request  of  the  affairs  of  the  Companies  and  their
Subsidiaries,  the Seller  shall  cause the  officers,  employees,  consultants,
agents,  accountants,  attorneys and other  representatives of the Companies and
their  Subsidiaries to cooperate fully with such  representatives  in connection
with such review and examination.

            6.2 Conduct of the Business Pending the Closing.

            (a) Except as otherwise expressly  contemplated by this Agreement or
with the prior written consent of the Purchaser, not to be unreasonably withheld
or delayed, the Seller shall, and shall cause the Companies to:

                  (i) Conduct the respective businesses of the Companies only in
the ordinary course consistent with past practice;

                  (ii) Use its best efforts to (A) preserve its present business
operations,  organization  (including,  without  limitation,  management and the
sales  force)  and  goodwill  of the  Companies  and (B)  preserve  its  present
relationship with Persons having business dealings with the Companies;

                                       23
<PAGE>

                  (iii)  Maintain  (A) all of the assets and  properties  of the
Companies in their  current  condition,  ordinary wear and tear excepted and (B)
insurance upon all of the properties and assets of the Companies in such amounts
and of such kinds comparable to that in effect on the date of this Agreement;

                  (iv) (A)  maintain  the  books,  accounts  and  records of the
Companies in the ordinary course of business consistent with past practices, (B)
continue to collect  accounts  receivable  and pay  accounts  payable  utilizing
normal  procedures  and  without  discounting  or  accelerating  payment of such
accounts,  and (C) comply with all contractual and other obligations  applicable
to the operation of the Companies; and

                  (v) Comply in all material respects with applicable Laws.

            (b) Except as otherwise expressly  contemplated by this Agreement or
with the prior written consent of the Purchaser, which shall not be unreasonably
withheld or delayed, the Seller shall not, and shall cause the Companies not to:

                  (i)  Declare,  set aside,  make or pay any  dividend  or other
distribution  in respect of the capital  stock of the  Companies or  repurchase,
redeem or otherwise acquire any outstanding shares of the capital stock or other
securities of, or other ownership interests in, the Companies;

                  (ii) Transfer, issue, sell or dispose of any shares of capital
stock or other securities of the Companies or grant options,  warrants, calls or
other rights to purchase or  otherwise  acquire  shares of the capital  stock or
other securities of the Companies;

                  (iii)  Effect any  recapitalization,  reclassification,  stock
split or like change in the capitalization of the Companies;

                  (iv) Amend the certificate of  incorporation or by-laws of the
Companies;

                  (v) (A) materially  increase the annual level of  compensation
of any employee of the Companies,  (B) increase the annual level of compensation
payable or to become payable by the Companies to any of its executive  officers,
(C) grant  any  unusual  or  extraordinary  bonus,  benefit  or other  direct or
indirect compensation to any employee,  director or consultant, (D) increase the
coverage  or benefits  available  under any (or create any new)  severance  pay,
termination  pay,  vacation  pay,  company  awards,   salary   continuation  for
disability,  sick  leave,  deferred  compensation,   bonus  or  other  incentive
compensation,  insurance,  pension or other employee benefit plan or arrangement
made to,  for,  or with any of the  directors,  officers,  employees,  agents or
representatives  of the Companies or otherwise  modify or amend or terminate any
such  plan  or   arrangement  or  (E)  enter  into  any   employment,   deferred
compensation,  severance,  consulting,  non-competition or similar agreement (or
amend any such  agreement)  to which the  Companies  is a party or  involving  a
director,  officer or  employee  of the  Companies  in his or her  capacity as a
director, officer or employee of the Companies;

                  (vi)  Except  for  trade  payables  and for  indebtedness  for
borrowed money incurred in the ordinary  course of business and consistent  with
past  practice,  borrow monies for any reason or draw down on any line of credit
or debt  obligation,  or become the  guarantor,  surety,  endorser or  otherwise
liable for any debt,  obligation or liability  (contingent  or otherwise) of any
other Person, or change the terms of payables or receivables;

                                       24
<PAGE>

                  (vii)  Subject  to any Lien  (except  for  leases  that do not
materially  impair the use of the property  subject thereto in their  respective
businesses as presently  conducted),  any of the  properties or assets  (whether
tangible or intangible) of the Companies;

                  (viii)  Acquire  any  material  properties  or assets or sell,
assign,  transfer,  convey,  lease or  otherwise  dispose of any of the material
properties or assets (except for fair  consideration  in the ordinary  course of
business consistent with past practice) of the Companies except, with respect to
the items listed on Schedule  6.2(b)(viii) hereto, as previously consented to by
the Purchaser;

                  (ix)  Cancel  or  compromise  any  debt or  claim  or waive or
release any material  right of the  Companies  except in the ordinary  course of
business consistent with past practice;

                  (x) Enter into any commitment for capital  expenditures or the
purchase of assets out of the ordinary course in excess of $5,000;

                  (xi) Permit the Companies to enter into any  transaction or to
make or enter into any Contract  which by reason of its size or otherwise is not
in the ordinary course of business consistent with past practice;

                  (xii)  Permit  the  Companies  to enter into or agree to enter
into any merger or consolidation with any corporation or other entity, or engage
in any new business,  or invest in, make a loan, advance or capital contribution
to, or otherwise acquire the securities of any other Person;

                  (xiii)  Except for  transfers of cash  pursuant to normal cash
management  practices,  permit the Companies to make any investments in or loans
to, or pay any fees or expenses to, or enter into or modify any  Contract  with,
the Seller or any Affiliate of the Seller; or

                  (xiv) Agree to do anything  prohibited  by this Section 6.2 or
anything  which  would make any of the  representations  and  warranties  of the
Seller in this  Agreement  or the Seller  Documents  untrue or  incorrect in any
material respect as of any time through and including the Closing.

            6.3 Consents.

            The Seller and the Companies  shall use their best efforts,  and the
Purchaser  shall  cooperate with the Seller and the Companies,  to obtain at the
earliest  practicable date all consents and approvals required to consummate the
transactions contemplated by this Agreement,  including, without limitation, the
consents and approvals  referred to in Schedule 4.7 hereto;  provided,  however,
that neither the Seller,  the Companies nor the Purchaser  shall be obligated to
pay any consideration  therefor to any third party from whom consent or approval
is requested.

                                       25
<PAGE>

            6.4 Other Actions.

            Each of the Seller,  the Companies  and the Purchaser  shall use its
best efforts to (i) take all actions  necessary or appropriate to consummate the
transactions  contemplated  by this Agreement and (ii) cause the  fulfillment at
the  earliest  practicable  date of all of the  conditions  to their  respective
obligations to consummate the transactions contemplated by this Agreement.

            6.5 No Solicitation.

            The Seller will not,  and will not cause or permit the  Companies or
any of the Companies' directors, officers, employees,  representatives or agents
(collectively,  the  "Representatives")  to,  directly or  indirectly,  prior to
August 31,  2006,  (i)  discuss,  negotiate,  undertake,  authorize,  recommend,
propose or enter into, either as the proposed  surviving,  merged,  acquiring or
acquired  corporation,  any  transaction  involving  a  merger,   consolidation,
business  combination,  purchase or  disposition  of any amount of the assets or
capital  stock  or  other  equity  interest  in the  Companies  other  than  the
transactions contemplated by this Agreement (an "Acquisition Transaction"), (ii)
facilitate,   encourage,  solicit  or  initiate  discussions,   negotiations  or
submissions  of  proposals or offers in respect of an  Acquisition  Transaction,
(iii)  furnish  or  cause  to be  furnished,  to  any  Person,  any  information
concerning  the business,  operations,  properties or assets of the Companies in
connection with an Acquisition  Transaction,  or (iv) otherwise cooperate in any
way with, or assist or participate  in,  facilitate or encourage,  any effort or
attempt by any other Person to do or seek any of the foregoing.  The Seller will
inform the Purchaser in writing immediately following the receipt by Seller, the
Companies  or any  Representative  of any  proposal or inquiry in respect of any
Acquisition Transaction.

            6.6 Preservation of Records.

            Subject to Section  16.13(d)(i) hereof (relating to the preservation
of Tax  records),  the  Seller and the  Purchaser  agree that each of them shall
preserve  and  keep the  records  held by it  relating  to the  business  of the
Companies  for a period of three years from the Closing Date and shall make such
records and personnel  available to the other as may be  reasonably  required by
such party in  connection  with,  among other things,  any insurance  claims by,
legal  proceedings  against or governmental  investigations of the Seller or the
Purchaser  or any of their  Affiliates  or in order to enable  the Seller or the
Purchaser to comply with their respective  obligations  under this Agreement and
each other agreement, document or instrument contemplated hereby or thereby.

            6.7 Publicity.

            None of the Seller,  the Companies nor the Purchaser shall issue any
press  release  or  public   announcement   concerning  this  Agreement  or  the
transactions contemplated hereby without obtaining the prior written approval of
the other party  hereto,  which  approval will not be  unreasonably  withheld or
delayed,  unless,  in the sole judgment of the  Purchaser,  the Companies or the
Seller,  disclosure is otherwise required by applicable Law or by the applicable
rules of any stock exchange on which the Purchaser  lists  securities,  provided
that, to the extent required by applicable law, the party intending to make such
release  shall  use its best  efforts  consistent  with such  applicable  law to
consult with the other party with respect to the text thereof.

                                       26
<PAGE>

            6.8 Use of Name.

            The  Seller  hereby  agrees  that  upon  the   consummation  of  the
transactions contemplated hereby, the Purchaser and the Companies shall have the
sole right to the use of the names LAMORIELLO & CO., INC., CIRCLE PENSION, INC.,
SOUTHEASTERN  PENSION  SERVICES,  INC. and any derivation of the  aforementioned
names,  and the Seller shall not and shall not cause or permit any  Affiliate to
use such name or any variation or simulation  thereof.  Seller shall also permit
Purchaser to use the name LAMCO or any derivation thereof, provided, however, it
shall retain the right to use the names Lamco Group and Lamco Advisory Services.

            6.9 Management Agreement.

            On or prior to the Closing  Date,  Lamoriello  and Steven Zito shall
enter  into a  management  agreements  with  the  Purchaser  or  the  Companies,
substantially  in the form of  agreements  attached  hereto as Exhibit  6.9 (the
"Management Agreement").

            6.10 Non-Competition and Non-Solicitation Agreements.

            On or  prior  to the  Closing  Date,  Lamoriello  shall  enter  into
non-competition  and  non-solicitation  agreements  with the  Purchaser  and the
Companies,  substantially  in the form of agreements  attached hereto as Exhibit
6.10 (the "Non-Competition Agreements").

            6.11 Cross Sales Agreement.

On or prior to the Closing Date, the Seller and the Companies shall enter into a
cross  sales  agreement,  substantially  in the form of the  agreement  attached
hereto as Exhibit 6.11 (the "Cross Sale Agreement").

            6.12 Technology Use Agreement.

            On or prior to the Closing Date, the Seller and the Purchaser  shall
enter into a technology sale and use agreement, substantially in the form of the
agreement attached hereto as Exhibit 6.12 (the "Technology Agreement").

            6.13 Financial Statements.

            The Seller shall deliver the  Financial  Statements to the Purchaser
on or prior to the Closing Date.

            6.14 Tax Election.

            At the sole discretion of the Purchaser,  the Seller agree to make a
timely election under Internal Revenue Code Section 338(h)(10).

                                       27
<PAGE>

            6.15 Tax Matters.

                  (a) Tax  Periods  Ending on or Before the  Closing  Date.  The
Seller  shall  prepare or cause to be prepared and file or cause to be filed all
Tax Returns for the Companies for all periods  through and including the Closing
Date which are filed after the Closing Date as soon as practicable  and prior to
the date due (including any proper extensions thereof).  The Seller shall permit
the Companies and the Purchaser to review and provide comments,  if any, on each
such Return described in the preceding  sentence prior to filing.  The Companies
shall  deliver  to the  Seller  each  such  Return  signed  by  the  appropriate
officer(s)  of the  Companies  for  filing  within ten (10) days  following  the
Seller's  delivery to the  Companies  and the Purchaser of any such Return after
having taken into account Purchaser's comments, if any. The Seller shall deliver
to the  Companies  promptly  after  filing  each such Return a copy of the filed
Return and  evidence of its filing.  The Seller shall pay the costs and expenses
incurred in the  preparation and filing of the Tax Returns on or before the date
such costs and expenses are due.

            If the  Companies  provide  comments to the Seller and at the end of
such ten (10) day  period the  Companies  and the  Seller  have  failed to reach
written  agreement with respect to all of such disputed items, the parties shall
submit the unresolved  items to arbitration for final  determination.  Promptly,
but no later than thirty (30) days after its  acceptance of its  appointment  as
arbitrator, the arbitrator shall render an opinion as to the disputed items. The
determination  of the  arbitrator  shall  be  conclusive  and  binding  upon the
parties.  The  Companies  and the Seller (as a group) shall each pay one half of
the fees,  costs and expenses of the  arbitrator.  The  prevailing  party may be
entitled  to an award  of pre- and  post-award  interest  as well as  reasonable
attorneys'  fees incurred in connection  with the  arbitration  and any judicial
proceedings related thereto as determined by the arbitrator.

                  (b) Tax Periods  Beginning  Ending After the Closing Date. The
Companies  or the  Purchaser  shall  prepare or cause to be prepared and file or
cause to be filed any Returns of the  Companies  for Tax periods  that begin and
end after the Closing Date.

                  (c)  Refunds  and Tax  Benefits.  Any  Tax  refunds  that  are
received  after the Closing Date by the Seller (other than tax refunds  received
in connection with such Seller's  individual tax Returns),  the Purchaser or the
Companies,  and any  amounts  credited  against  Tax to which  the  Seller,  the
Purchaser  or the  Companies  become  entitled,  shall be for the account of the
Companies, and the Seller shall pay over to the Companies any such refund or the
amount of any such credit within  fifteen (15) days after receipt or entitlement
thereto.  In  addition,  to the extent  that a claim for refund or a  proceeding
results in a payment or credit against Tax by a taxing  authority to the Seller,
the Seller shall pay such amount to the Companies within fifteen (15) days after
receipt or entitlement thereto.

                  (d) Cooperation on Tax Matters.

                        (i) The  Purchaser,  the  Companies and the Seller shall
cooperate fully, as and to the extent  reasonably  requested by the other party,
in  connection  with the filing of any Returns  pursuant to this Section and any
audit, litigation or other proceeding with respect to Taxes assessed against the
Companies.  Such  cooperation  shall  include the  retention and (upon the other
party's  request) the provision of records and information  which are reasonably
relevant to any such audit,  litigation or other proceeding and making employees
available on a mutually  convenient basis to provide additional  information and
explanation  of any material  provided  hereunder.  The Companies and the Seller
agree (A) to retain all books and records with respect to Tax matters  pertinent
to the Companies  relating to any taxable  period  beginning  before the Closing
Date until the  expiration  of the statute of  limitations  (and,  to the extent
notified  by the  Purchaser  or  the  Seller,  any  extensions  thereof)  of the
respective tax periods,  and to abide by all record retention agreements entered
into  with any  taxing  authority,  and (B) to give the other  party  reasonable
written  notice prior to  transferring,  destroying or discarding any such books
and records and, if the other party so requests, the Companies or the Seller, as
the case may be,  shall allow the other party to take  possession  of such books
and records.

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<PAGE>

                        (ii) The Purchaser and the Seller  further  agree,  upon
request,  to use their best efforts to obtain any  certificate or other document
from any  governmental  authority  or any other  Person as may be  necessary  to
mitigate,  reduce or eliminate any Tax that could be imposed  against any of the
parties hereto (including,  but not limited to, with respect to the transactions
contemplated hereby).

                        (iii) The Purchaser and the Seller further  agree,  upon
request,  to provide the other party with all information  that either party may
be  required  to  report  pursuant  to  ss.6043  of the  Code  and all  Treasury
Department Regulations promulgated thereunder.

            6.16 Non-Competition.  For a period of three years after the Closing
Date,  Seller  agrees  not  to  engage  in  any  of  the  following  competitive
activities:  (a)  engaging  directly or  indirectly  in any business or activity
substantially similar to any business or activity engaged in (or scheduled to be
engaged) by the Companies or the Purchaser  except for  investment  advisory and
fiduciary  business  activities;  (b)  engaging  directly or  indirectly  in any
business or activity  competitive  with any business or activity  engaged in (or
scheduled to be engaged) by the Companies or the  Purchaser;  (c)  soliciting or
taking away any employee, agent, representative,  contractor,  supplier, vendor,
customer,  franchisee,  lender or investor of the Companies or the Purchaser, or
attempting to so solicit or take away;  provided,  however,  this covenant shall
not  prohibit  the  Seller  from  having  common  representatives,  contractors,
suppliers,  vendors, customers,  franchisees,  lenders and/or investors with the
Companies  and/or  Purchaser;  (d)  interfering  with any  contractual  or other
relationship  between the Companies or the  Purchaser  and any employee,  agent,
representative,  contractor,  supplier, vendor, customer,  franchisee, lender or
investor;  or (e) using,  for the benefit of any person or entity other than the
Companies,  any confidential  information of the Companies or the Purchaser.  In
addition, no Seller shall make or permit the making of any negative statement of
any kind concerning the Companies,  the Purchaser or their affiliates,  or their
directors, officers or agents.

            6.17 Demand Rights.

            (a) At any time and from time to time  following  June 30, 2007, the
Seller as holder of the  Purchase  Price  Shares shall have the right to require
the  Purchaser  to  effect  a  registration  on Form S-1 (or any  comparable  or
successor  form) of all of the Purchase  Price  Shares by giving  notice to such
effect to the  Purchaser  specifying  the number of Purchase  Price Shares to be
included  therein and the intended  method of  distribution  thereof;  provided,
that, the Purchaser  shall only be required to effect two (2) such  registration
under this Section 6.17(a).  The Purchaser shall use its best efforts to effect,
as soon as practicable,  the registrations under the Securities Act of 1933 (the
"Securities  Act") of all the Purchase  Price Shares  requested by the Seller to
the  extent  necessary  to  permit  the sale or  other  disposition  thereof  in
accordance with the intended method of disposition.

                                       29
<PAGE>

            (b) At any time that the Purchaser shall be qualified for the use of
Form S-3 (or any comparable or successor  form), the Seller shall have the right
from time to time to require the Purchaser to effect a registration  on Form S-3
for registrable securities having an anticipated aggregate offering price (based
on then current market prices) of at least $100,000 (including registrations for
the  sale of such  registrable  securities  on a  delayed  or  continuous  basis
pursuant to Rule 415 of the  Securities  Act) by giving notice to such effect to
the Purchaser and specifying the number of registrable securities to be included
therein and the intended  method of  distribution.  The Purchaser  shall use its
best  efforts to effect,  as soon as  practicable,  the  registration  under the
Securities  Act  of all  the  registrable  securities  requested  by the  Seller
hereunder  to the  extent  necessary  to  permit  the sale or other  disposition
thereof in accordance  with the intended  method of  disposition.  Registrations
effected  pursuant  to this  Section  6.17(b)  shall  not count as  demands  for
registration pursuant to Section 6.17(a) hereof.

            (c) The Purchaser's  obligations pursuant to this Section 6.17 shall
be subject to the following limitations and conditions:

                  (i)  the   Purchaser   shall  not  be   obligated  to  file  a
registration  statement pursuant to this Section 6.17 within ninety (90) days of
the effectiveness of a registration  statement previously filed by the Purchaser
if the Seller had the right to have all the Purchase  Price Shares  requested to
be  registered  by the Seller under such  registration  statement to be included
therein; and

                  (ii) the Purchaser shall have the right to delay the filing of
a  registration  statement  pursuant  to this  Section  6.17  during one or more
periods aggregating not more than ninety (90) days in any twelve-month period if
the Purchaser  would, in accordance  with advice of its counsel,  be required to
disclose information not otherwise required by law to be publicly disclosed and,
in the judgment of the Board of the Purchaser,  such disclosure would materially
and adversely affect the Purchaser.

            (d) A registration requested pursuant to this Section 6.17 shall not
be deemed to have been  effected (i) if a  registration  statement  with respect
thereto shall not have become effective,  (ii) if after becoming effective, such
registration  shall be  interfered  with by any stop order,  injunction or other
order or  requirement of the SEC or other  governmental  agency or court for any
reason,  other than by reason of some act or omission by the Seller, or (iii) if
the conditions to closing specified in an underwriting agreement entered into in
connection with such registration shall not be satisfied.

                                       30
<PAGE>

            6.18  Piggy-back  Registration.  If at any time the Purchaser  shall
determine to file with the SEC a Registration  Statement relating to an offering
for its own account or the account of others under the  Securities Act of any of
its equity securities (other than (i) the amendment of a Registration  Statement
previously  filed or the filing of a Registration  Statement that was previously
filed and  withdrawn  or (ii) on Form S-4,  Form S-8 or their  then  equivalents
relating  to equity  securities  to be  issued  solely  in  connection  with any
acquisition  of  any  entity  or  business  or  equity  securities  issuable  in
connection with stock option or other bona fide,  employee  benefit plans),  the
Purchaser  shall include in such  Registration  Statement all or any part of the
Purchase  Price  Shares,  except that if, in  connection  with any  underwritten
public  offering for the account of the  Purchaser  the managing  underwriter(s)
thereof  shall impose a limitation on the number of shares of common stock which
may be included in the Registration  Statement because, in such  underwriter(s)'
judgment,  marketing or other  factors  dictate such  limitation is necessary to
facilitate public distribution, then the Purchaser shall be obligated to include
in such  Registration  Statement only such limited portion of the Purchase Price
Shares as the underwriter  shall permit. If an offering in connection with which
the  Seller  is  entitled  to  registration   under  this  Section  6.18  is  an
underwritten offering,  then the Purchase Price Shares shall be offered and sold
in an underwritten  offering using the same  underwriter or underwriters  and on
the same terms and  conditions as other shares of common stock  included in such
underwritten offering.

                                  ARTICLE VII
                              CONDITIONS TO CLOSING

            7.1 Conditions Precedent to Obligations of Purchaser.

            The  obligation  of the  Purchaser to  consummate  the  transactions
contemplated by this Agreement is subject to the fulfillment, on or prior to the
Closing Date, of each of the  following  conditions  (any or all of which may be
waived  by the  Purchaser  in  whole  or in  part  to the  extent  permitted  by
applicable law):

            (a) all  representations and warranties of the Seller, the Companies
and Lamoriello contained herein shall be true and correct as of the date hereof;

            (b) all  representations and warranties of the Seller, the Companies
and Lamoriello  contained herein  qualified as to materiality  shall be true and
correct, and the representations and warranties of the Seller, the Companies and
Lamoriello  contained  herein not qualified as to materiality  shall be true and
correct in all material  respects as of the Closing Date with the same effect as
though those  representations  and  warranties  had been made again at and as of
that time;

            (c) the Seller,  the Companies and  Lamoriello  shall have performed
and  complied  in all  material  respects  with all  obligations  and  covenants
required by this  Agreement to be performed or complied with by them on or prior
to the Closing Date;

            (d) the Purchaser shall have been furnished with certificates (dated
the  Closing  Date  and in form and  substance  reasonably  satisfactory  to the
Purchaser) executed by Seller certifying as to the fulfillment of the conditions
specified in Sections 7.1(a), 7.1(b) and 7.1(c) hereof;

                                       31
<PAGE>

            (e) Certificates representing 100% of the Shares shall have been, or
shall at the Closing be,  validly  delivered and  transferred  to the Purchaser,
free and clear of any and all Liens;

            (f) there  shall  not have been or  occurred  any  Material  Adverse
Change;

            (g) the Seller and the  Companies  shall have  obtained all consents
and  waivers  referred  to  in  Schedule  4.7  hereto,   in  a  form  reasonably
satisfactory to the Purchaser,  with respect to the transactions contemplated by
this Agreement and the Seller Documents;

            (h) no Legal Proceedings shall have been instituted or threatened or
claim or demand made against the Seller,  Lamoriello and the  Companies,  or the
Purchaser seeking to restrain or prohibit or to obtain substantial  damages with
respect to the consummation of the transactions  contemplated  hereby, and there
shall  not  be  in  effect  any  order  by  a  governmental  body  of  competent
jurisdiction restraining, enjoining or otherwise prohibiting the consummation of
the transactions contemplated hereby;

            (i) the Purchaser  shall have received the written  resignations  of
all officers and directors of the Companies;

            (j)  the  Escrow  Agreement,   the  Option   Agreement,   Management
Agreement,  Non-Competition Agreements, Technology Agreement and the Cross Sales
Agreement  (collectively with the Agreement,  the "Seller Documents") shall have
been executed and delivered; and

            (k) the Purchaser  shall have received  information  satisfactory in
its  sole  discretion  to  verify  the  accuracy  of all  financial  information
delivered by the Seller to the Purchaser.

            7.2  Conditions  Precedent  to  Obligations  of the  Seller  and the
Companies.

            The  obligations  of the Seller and the Companies to consummate  the
transactions  contemplated  by this  Agreement  are subject to the  fulfillment,
prior to or on the Closing Date, of each of the following conditions (any or all
of which may be waived by the  Seller and the  Companies  in whole or in part to
the extent permitted by applicable law):

            (a) all  representations  and warranties of the Purchaser  contained
herein shall be true and correct as of the date hereof;

            (b) all  representations  and warranties of the Purchaser  contained
herein  qualified  as  to  materiality  shall  be  true  and  correct,  and  all
representations  and warranties of the Purchaser  contained herein not qualified
as to materiality shall be true and correct in all material respects,  as of the
Closing Date with the same effect as though those representations and warranties
had been made again at and as of that date;

            (c) the Purchaser  shall have performed and complied in all material
respects with all  obligations  and covenants  required by this  Agreement to be
performed or complied with by Purchaser on or prior to the Closing Date;

                                       32
<PAGE>

            (d) the Seller shall have been  furnished with  certificates  (dated
the  Closing  Date  and in form and  substance  reasonably  satisfactory  to the
Sellers)  executed by the Chief Executive Officer and Chief Financial Officer of
the Purchaser  certifying as to the  fulfillment of the conditions  specified in
Sections 7.2(a), 7.2(b) and 7.2(c);

            (e) no Legal Proceedings shall have been instituted or threatened or
claim or demand made  against  the  Sellers,  the  Companies,  or the  Purchaser
seeking to restrain or prohibit or to obtain substantial damages with respect to
the consummation of the transactions contemplated hereby, and there shall not be
in  effect  any  Order  by  a  Governmental   Body  of  competent   jurisdiction
restraining,   enjoining  or  otherwise  prohibiting  the  consummation  of  the
transactions contemplated hereby;

            (f) the  Lamoriello  Debt and the Bank Debt  shall have been paid in
full; and

            (g) the Option Agreement,  Escrow Agreement,  Management  Agreement,
Non-Competition  Agreements,  Technology Agreement and the Cross Sales Agreement
shall have been executed and delivered by the Purchaser.

                                  ARTICLE VIII
                            DOCUMENTS TO BE DELIVERED

            8.1 Documents to be Delivered by the Seller.

            At the Closing,  the Seller shall deliver, or cause to be delivered,
to the Purchaser the following:

            (a) stock  certificates  representing  the Shares,  duly endorsed in
blank or  accompanied  by stock  transfer  powers and with all  requisite  stock
transfer tax stamps attached;

            (b) the  certificates  referred  to in  Section  7.1(d)  and  7.1(e)
hereof;

            (c) copies of all consents and waivers referred to in Section 7.1(g)
hereof;

            (d) the Escrow  Agreement,  Management  Agreements,  Non-Competition
Agreements,  Technology  Agreement,  the Cross  Sales  Agreement  and the Option
Agreement duly executed by all parties other than the Purchaser;

            (e) written resignations of all of the officers and directors of the
Companies;

            (f)  certificate  of good  standing  with  respect to the  Companies
issued by the  Secretary  of State of the State of  incorporation,  and for each
state  in  which  the  Companies  is  qualified  to  do  business  as a  foreign
corporation; and

            (g) such other documents as the Purchaser shall reasonably request.

            8.2 Documents to be Delivered by the Purchaser.

            At the  Closing,  the  Purchaser  shall  deliver  to the  Seller the
following:

                                       33
<PAGE>

            (a) The Purchase Price;

            (b) the Option Agreement;

            (c) the Purchase Price Shares, delivered into escrow;

            (d) the certificates referred to in Section 7.2(d) hereof;

            (e) the Escrow  Agreement,  Management  Agreements,  Non-Competition
Agreements and the Cross Sales Agreement, duly executed by the Purchaser; and

            (f) such other documents as the Seller shall reasonably request.

                                   ARTICLE IX
                                 INDEMNIFICATION

            9.1 Indemnification.

            (a) Subject to Section 9.2 hereof,  the Seller and Lamoriello hereby
agree to jointly and severally indemnify and hold the Purchaser,  the Companies,
and  their  respective  directors,  officers,  employees,   Affiliates,  agents,
successors  and assigns  (collectively,  the  "Purchaser  Indemnified  Parties")
harmless from and against:

                  (i) any and all  liabilities  of the  Companies of every kind,
nature  and  description,  absolute  or  contingent,  existing  as  against  the
Companies  prior to and  including  the Closing Date or  thereafter  coming into
being or arising by reason of any state of facts  existing,  or any  transaction
entered  into,  on or prior to the Closing  Date,  except to the extent that the
same have been fully provided for in the Balance Sheet or disclosed in the notes
thereto or were incurred in the ordinary course of business  between the Balance
Sheet date and the Closing Date;

                  (ii) subject to Section 10.3, any and all losses, liabilities,
obligations,  damages,  costs and expenses  (collectively,  the "Losses")  based
upon,  attributable  to or resulting from the failure of any  representation  or
warranty of the Seller set forth in Section 4 hereof,  or any  representation or
warranty  contained in any  certificate  delivered by or on behalf of the Seller
pursuant to this Agreement,  to be true and correct in all material  respects as
of the date made;

                  (iii)  any and  all  Losses  based  upon,  attributable  to or
resulting from the breach of any covenant or other  agreement on the part of the
Seller under this Agreement;

                  (iv) any and all notices, actions, suits, proceedings, claims,
demands,  assessments,  judgments,  costs,  penalties  and  expenses,  including
reasonable attorneys' and other reasonable professionals' fees and disbursements
(collectively,  "Expenses") incident to any and all Losses with respect to which
indemnification is provided pursuant to this Section 9.1(a)

            (b) Subject to Section 9.2, Purchaser hereby agrees to indemnify and
hold the Seller, Lamoriello and their respective Affiliates,  agents, successors
and assigns  (collectively,  the "Seller Indemnified Parties") harmless from and
against:

                                       34
<PAGE>

                  (i)  any  and  all  Losses  based  upon,  attributable  to  or
resulting  from the failure of any  representation  or warranty of the Purchaser
set forth in Section 5 hereof, or any  representation  or warranty  contained in
any  certificate  delivered  by or on behalf of the  Purchaser  pursuant to this
Agreement, to be true and correct in all material respects as of the date made;

                  (ii)  any  and  all  Losses  based  upon,  attributable  to or
resulting from the breach of any covenant or other  agreement on the part of the
Purchaser under this Agreement or arising from the ownership or operation of the
Companies from and after the Closing Date; and

                  (iii) any and all Expenses incident to the foregoing.

            9.2 Limitations on  Indemnification  for Breaches of Representations
and Warranties.

            An  indemnifying  party shall not have any  liability  under Section
9.1(a) or  Section  9.1(b)  hereof  unless  the  aggregate  amount of Losses and
Expenses to the indemnified parties finally determined to arise thereunder based
upon,  attributable  to or resulting from the failure of any  representation  or
warranty to be true and correct,  other than the  representations and warranties
set forth in Sections  4.3,  4.11,  4.24 and 4.29 hereof,  exceeds  $25,000 (the
"Basket") and, in such event,  the  indemnifying  party shall be required to pay
the  entire  amount of such  Losses  and  Expenses  in excess  of  $25,000  (the
"Deductible").  In any event,  the maximum  amount of  indemnifiable  Losses and
Expenses which may be recovered by either party shall not exceed $500,000.

            9.3 Indemnification Procedures.

            (a) In the event that any Legal  Proceedings  shall be instituted or
that any claim or demand ("Claim") shall be asserted by any Person in respect of
which payment may be sought under Section 9.1 hereof  (regardless  of the Basket
or the Deductible referred to above), the indemnified party shall reasonably and
promptly  cause  written  notice of the  assertion  of any Claim of which it has
knowledge which is covered by this indemnity to be forwarded to the indemnifying
party.  The  indemnifying  party  shall have the right,  at its sole  option and
expense,  to be represented  by counsel of its choice,  which must be reasonably
satisfactory to the indemnified party, and to defend against,  negotiate, settle
or otherwise deal with any Claim which relates to any Losses of the  indemnified
party indemnified against hereunder.  If the indemnifying party elects to defend
against, negotiate, settle or otherwise deal with any Claim which relates to any
Losses of the indemnified party indemnified  against hereunder,  it shall within
five (5) days (or  sooner,  if the nature of the Claim so  requires)  notify the
indemnified  party of its intent to do so. If the indemnifying  party elects not
to defend  against,  negotiate,  settle or  otherwise  deal with any Claim which
relates to any Losses of the indemnified  party indemnified  against  hereunder,
fails to notify the  indemnified  party of its  election  as herein  provided or
contests its obligation to indemnify the indemnified party for such Losses under
this Agreement, the indemnified party may defend against,  negotiate,  settle or
otherwise deal with such Claim. If the indemnified party defends any such Claim,
then the  indemnifying  party  shall  reimburse  the  indemnified  party for the
Expenses of  defending  such Claim upon  submission  of periodic  bills.  If the
indemnifying  party shall assume the defense of any such Claim,  the indemnified
party may participate,  at his or its own expense, in the defense of such Claim;
provided,  however, that such indemnified party shall be entitled to participate
in any such defense  with  separate  counsel at the expense of the  indemnifying
party if, (i) so requested by the  indemnifying  party to participate or (ii) in
the  reasonable  opinion of  counsel to the  indemnified  party,  a conflict  or
potential  conflict  exists between the indemnified  party and the  indemnifying
party that would make such  separate  representation  advisable;  and  provided,
further,  that the indemnifying party shall not be required to pay for more than
one such counsel for all indemnified  parties in connection with any Claim.  The
parties hereto agree to cooperate  fully with each other in connection  with the
defense, negotiation or settlement of any such Claim.

                                       35
<PAGE>

            (b) After any final  judgment or award shall have been rendered by a
court,  arbitration board or administrative agency of competent jurisdiction and
the expiration of the time in which to appeal  therefrom,  or a settlement shall
have been consummated, or the indemnified party and the indemnifying party shall
have arrived at a mutually binding  agreement with respect to a Claim hereunder,
the indemnified party shall forward to the indemnifying party notice of any sums
due and owing by the indemnifying  party pursuant to this Agreement with respect
to such matter, as determined by such court, board or agency or pursuant to such
settlement  against,  as the case  may be and the  indemnifying  party  shall be
required  to pay all of the sums so due and  owing to the  indemnified  party by
wire transfer of immediately  available  funds within 10 business days after the
date of such notice.

            (c) The failure of the indemnified  party to give reasonably  prompt
notice  of  any  Claim  shall  not  release,   waive  or  otherwise  affect  the
indemnifying  party's obligations with respect thereto except to the extent that
the indemnifying  party can demonstrate actual loss and prejudice as a result of
such failure.

            9.4 Tax Treatment of Indemnity Payments.

            The Seller and the Purchaser  agree to treat any  indemnity  payment
made  pursuant to this  Article 9 as an  adjustment  to the  Purchase  Price for
federal, state, local and foreign income tax purposes.

                                    ARTICLE X
                                  MISCELLANEOUS

            10.1 Payment of Sales, Use or Similar Taxes.

            All sales, use, transfer, intangible, recordation, documentary stamp
or  similar  Taxes or  charges,  of any  nature  whatsoever,  applicable  to, or
resulting from, the  transactions  contemplated by this Agreement shall be borne
solely by the Seller.

            10.2 Survival of Representations and Warranties.

            The  parties  hereto  hereby  agree  that  the  representations  and
warranties  contained  in this  Agreement  or in any  certificate,  document  or
instrument  delivered in  connection  herewith,  shall survive the execution and
delivery  of  this  Agreement,  and the  Closing  hereunder,  regardless  of any
investigation made by the parties hereto; provided,  however, that any claims or
actions  with  respect  thereto  (other  than claims for  indemnifications  with
respect to the  representation  and warranties  contained in Sections 4.3, 4.11,
4.24 and 4.35which  shall survive for periods  coterminous  with any  applicable
statutes of limitation) shall terminate unless within eighteen (18) months after
the Closing  Date  written  notice of such claims is given to the Seller or such
actions are commenced.

                                       36
<PAGE>

            10.3 Expenses.

            Except as otherwise  provided in this Agreement,  the Seller and the
Purchaser  shall each bear its own  expenses  incurred  in  connection  with the
negotiation and execution of this Agreement and each other  agreement,  document
and  instrument  contemplated  by this  Agreement  and the  consummation  of the
transactions  contemplated  hereby and thereby,  it being  understood that in no
event shall the Companies bear any of such costs and expenses.

            10.4 Specific Performance.

            (a) The  Seller  acknowledges  and  agrees  that the  breach of this
Agreement would cause irreparable damage to the Purchaser and that the Purchaser
will not have an  adequate  remedy at law.  Therefore,  the  obligations  of the
Seller  under  this  Agreement,  including,  without  limitation,  the  Seller's
obligation to sell the Shares to the Purchaser, shall be enforceable by a decree
of  specific  performance  issued by any court of  competent  jurisdiction,  and
appropriate  injunctive  relief may be  applied  for and  granted in  connection
therewith.  Such remedies  shall,  however,  be cumulative and not exclusive and
shall be in addition to any other  remedies  which any party may have under this
Agreement or otherwise.

            (b) The  Purchaser  acknowledges  and agrees that the breach of this
Agreement would cause irreparable  damage to the Seller and that the Seller will
not have an adequate remedy at law. Therefore,  the obligations of the Purchaser
under this Agreement,  including, without limitation, the Purchaser's obligation
to  purchase  the Shares from the Seller,  shall be  enforceable  by a decree of
specific  performance  issued  by  any  court  of  competent  jurisdiction,  and
appropriate  injunctive  relief may be  applied  for and  granted in  connection
therewith.  Such remedies  shall,  however,  be cumulative and not exclusive and
shall be in addition to any other  remedies  which any party may have under this
Agreement or otherwise.

            10.5 Further Assurances.

            The Seller and the Purchaser each agrees to execute and deliver such
other documents or agreements and to take such other action as may be reasonably
necessary  or  desirable  for  the  implementation  of  this  Agreement  and the
consummation of the transactions contemplated hereby.

            10.6 Submission to Jurisdiction; Consent to Service of Process.

            (a)  The   parties   hereto   hereby   irrevocably   submit  to  the
non-exclusive  jurisdiction  of any  federal or state court  located  within the
state of New York over any dispute  arising out of or relating to this Agreement
or any of the transactions contemplated hereby and each party hereby irrevocably
agrees that all claims in respect of such dispute or any suit, action proceeding
related  thereto may be heard and determined in such courts.  The parties hereby
irrevocably  waive,  to the fullest  extent  permitted  by  applicable  law, any
objection  which  they may now or  hereafter  have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient  forum for the
maintenance  of such dispute.  Each of the parties hereto agrees that a judgment
in any  such  dispute  may be  enforced  in other  jurisdictions  by suit on the
judgment or in any other manner provided by law.

                                       37
<PAGE>

            (b) Each of the parties  hereto  hereby  consents  to process  being
served by any party to this  Agreement in any suit,  action or proceeding by the
mailing of a copy thereof in accordance with the provisions of Section 10.10.

            10.7 Entire Agreement; Amendments and Waivers.

            This  Agreement   (including  the  schedules  and  exhibits  hereto)
represents  the entire  understanding  and agreement  between the parties hereto
with  respect  to  the  subject  matter  hereof  and  supersedes  all  prior  or
contemporaneous  agreements or  understandings  among the parties with regard to
the subject  matter  hereof.  This  Agreement  can be amended,  supplemented  or
changed,  and any  provision  hereof can be waived,  only by written  instrument
making  specific  reference to this  Agreement  signed by the party against whom
enforcement of any such amendment, supplement, modification or waiver is sought.
No action taken pursuant to this Agreement,  including without  limitation,  any
investigation  by or on behalf of any  party,  shall be deemed to  constitute  a
waiver by the party taking such action of  compliance  with any  representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto
of a breach of any provision of this Agreement shall not operate or be construed
as a further or continuing  waiver of such breach or as a waiver of any other or
subsequent breach. No failure on the part of any party to exercise, and no delay
in exercising,  any right,  power or remedy  hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further  exercise thereof or the exercise of
any other right,  power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.

            10.8  Governing  Law.  This  Agreement  shall  be  governed  by  and
construed in accordance with the laws of the state of New York.

            10.9 Table of Contents and Headings.

            The table of contents and section headings of this Agreement are for
reference  purposes  only and are to be given no effect in the  construction  or
interpretation of this Agreement.

            10.10 Notices.

            All notices and other  communications  under this Agreement shall be
in writing  and shall be deemed  given when  delivered  personally  or mailed by
certified mail, return receipt requested,  or by reputable  overnight courier to
the parties (and shall also be transmitted by facsimile to the Persons receiving
copies thereof) at the following  addresses (or to such other address as a party
may  have  specified  by  notice  given  to the  other  party  pursuant  to this
provision):

                                       38
<PAGE>

      (a) Purchaser:

            National Investment Managers Inc.
            420 Lexington Avenue
            New York, New York 10170
            Attn:  Leonard Neuhaus, COO/CFO
            Phone:  (212) 389-7832
            Facsimile: (212) 389-7831

            Copy to:

            Gregory Sichenzia, Esq.
            Sichenzia Ross Friedman Ference LLP
            1065 Avenue of the Americas
            New York, New York 10018
            Phone:  (212) 930-9700
            Facsimile: (212) 930-9725

      (b) Seller and Companies:

            THE LAMCO GROUP, INC.
            11801 Coniston Way
            Windemere, Florida 34786
            Attn:  Nicholas J. Lamoriello, President
            Phone: (407) 531-5500
            Facsimile:  (407) 909-9487

          Copy to:

            E. Colby Cameron, Esq.
            Cameron & Mittleman LLP
            56 Exchange Terrace
            Providence, Rhode Island 02903
            Phone: (401) 331-5700
            Facsimile: (401) 331-5787

            10.11 Severability.

            If any provision of this Agreement is invalid or unenforceable,  the
balance of this Agreement shall remain in effect.

                                       39
<PAGE>

            10.12 Binding Effect; Assignment.

            This Agreement shall be binding upon and inure to the benefit of the
parties and their respective  successors and permitted assigns.  Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights
in any person or entity not a party to this Agreement  except as provided below.
No assignment of this Agreement or of any rights or obligations hereunder may be
made by any of the Seller,  the  Companies or the Purchaser (by operation of law
or otherwise)  without the prior written consent of the other parties hereto and
any attempted  assignment without the required consents shall be void; provided,
however,  that the Purchaser may assign this  Agreement and any or all rights or
obligations hereunder (including,  without limitation, the Purchaser's rights to
purchase  the  Shares  and  the  Purchaser"s  rights  to  seek   indemnification
hereunder)  to  any  Affiliate  of  the  Purchaser.   Upon  any  such  permitted
assignment,  the references in this Agreement to the Purchaser  shall also apply
to any such assignee unless the context otherwise requires.

                  [Remainder of Page Intentionally Left Blank]

                                       40
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first above written.

                                             NATIONAL INVESTMENT MANAGERS INC.

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

                                             THE LAMCO GROUP, INC.

                                             By: /s/ Nicholas J. Lamoriello
                                                 Nicholas J. Lamoriello,
                                                 President

                                             LAMORIELLO & CO., INC.

                                             By: /s/ Nicholas J. Lamoriello
                                                 Nicholas J. Lamoriello,
                                                 President

                                             CIRCLE PENSION, INC.

                                             By: /s/ Nicholas J. Lamoriello
                                                 Nicholas J. Lamoriello,
                                                 President

                                             SOUTHEASTERN PENSION
                                             SERVICES, INC.

                                             By: /s/ Nicholas J. Lamoriello
                                                 Nicholas J. Lamoriello,
                                                 President

                                             /s/ Nicholas J. Lamoriello
                                             Nicholas J. Lamoriello

                                       41NATIONAL INVESTMENT MANAGERS INC.
                       NONSTATUTORY STOCK OPTION AGREEMENT

================================================================================

      THIS STOCK OPTION  AGREEMENT  ("Agreement") is made and entered into as of
October 3, 2006, by and between  NATIONAL  INVESTMENT  MANAGERS  INC., a Florida
corporation (the "Company"), and Nicholas J. Lamoriello ("Optionee")

      In  consideration  of the covenants  herein set forth,  the parties hereto
agree as follows:

      1. Option Information.

            (a)   Date of Option:    October 3, 2006
            (b)   Optionee:          Nicholas J. Lamoriello or permitted assigns
            (c)   Number of Shares:  300,000
            (d)   Exercise Price:    $0.50 per share

      2. Acknowledgements.  The Board has authorized the granting to Optionee of
a stock  option  ("Option")  to purchase  shares of common  stock of the Company
("Stock")  upon the terms and conditions  hereinafter  stated and pursuant to an
exemption  from  registration  under the Securities Act of 1933, as amended (the
"Securities Act") provided by Section 4(2) thereunder.

      3. Shares; Price. Company hereby grants to Optionee the right to purchase,
upon and subject to the terms and conditions herein stated, the number of shares
of Stock set forth in Section  1(c) above (the  "Shares")  for cash at the price
per Share set forth in Section 1(d) above (the "Exercise Price").

      4. Term of Option.  This Option shall expire,  and all rights hereunder to
purchase the Shares shall terminate, five (5) years from the date hereof.

      5. Exercise.  This Option shall be exercised by delivery to the Company of
(a) written notice of exercise  stating the number of Shares being purchased (in
whole shares only) and such other information set forth on the form of Notice of
Exercise attached hereto as Appendix A, (b) a check or cash in the amount of the
Exercise Price of the Shares covered by the notice (or such other  consideration
as has been  approved by the Board of  Directors)  and (c) a written  investment
representation  as provided  for in Section 9 hereof.  This Option  shall not be
assignable or transferable  and shall be exercisable only by Optionee during his
or her lifetime; provided, however, the Optionee may transfer all or any portion
of the Option to his son,  Mark A.  Lamoriello  and to Stephen Zito and from and
after Optionee's death, his Options may be exercised by his estate.

      6.  No  Rights  as  Shareholder.  Optionee  shall  have  no  rights  as  a
shareholder with respect to the Shares covered by any installment of this Option
until the effective  date of issuance of the Shares  following  exercise of this
Option,  and no adjustment  will be made for dividends or other rights for which
the record date is prior to the date such stock  certificate or certificates are
issued.

                                       1
<PAGE>

      7. Recapitalization. Subject to any required action by the shareholders of
the Company, the number of Shares covered by this Option, and the Exercise Price
thereof,  shall be proportionately  adjusted for any increase or decrease in the
number of issued shares resulting from a subdivision or consolidation of shares.

      If the Company merges with or into, or consolidates  with, another entity,
whether  or  not  the  Company  is  the  surviving  entity  of  such  merger  or
consolidation,  this  Option  thereafter  shall  pertain  to  and  apply  to the
securities  to which a holder  of Shares  equal to the  Shares  subject  to this
Option would have been entitled by reason of such merger or consolidation.

      In the  event  of a change  in the  shares  of the  Company  as  presently
constituted, which is limited to a change of all of its authorized Stock without
par value into the same  number of shares of Stock with a par value,  the shares
resulting  from any such  change  shall be deemed to be the  Shares  within  the
meaning of this Option.

      To  the  extent  that  the  foregoing  adjustments  relate  to  shares  or
securities of the Company,  such adjustments  shall be made by the Board,  whose
determination in that respect shall be final, binding and conclusive.  Except as
hereinbefore expressly provided,  Optionee shall have no rights by reason of any
subdivision or  consolidation  of shares of Stock of any class or the payment of
any stock  dividend or any other increase or decrease in the number of shares of
stock of any class,  and the number and price of Shares  subject to this  Option
shall not be  affected  by, and no  adjustments  shall be made by reason of, any
dissolution,  liquidation,  merger,  consolidation  or sale of assets or capital
stock, or any issue by the Company of shares of stock of any class or securities
convertible into shares of stock of any class.

      The grant of this Option shall not affect in any way the right or power of
the Company to make adjustments,  reclassifications,  reorganizations or changes
in its  capital or  business  structure  or to merge,  consolidate,  dissolve or
liquidate or to sell or transfer all or any part of its business or assets.

      8. Investment Intent; Restrictions on Transfer.

            (a) Optionee  represents and agrees that if Optionee  exercises this
      Option in whole or in part,  Optionee will in each case acquire the Shares
      upon such exercise for the purpose of  investment  and not with a view to,
      or for resale in connection with, any distribution  thereof; and that upon
      such exercise of this Option in whole or in part,  Optionee  shall furnish
      to the Company a written  statement  to such effect,  satisfactory  to the
      Company in form and substance.

            (b) Optionee further  represents that Optionee has had access to the
      financial  statements  or books and  records of the  Company,  has had the
      opportunity  to ask  questions  of the Company  concerning  its  business,
      operations and financial condition,  and to obtain additional  information
      reasonably necessary to verify the accuracy of such information

                                       2
<PAGE>

            (c)  Unless  and until the  Shares  represented  by this  Option are
      registered  under the Securities Act, all  certificates  representing  the
      Shares and any certificates  subsequently issued in substitution  therefor
      and any certificate for any securities issued pursuant to any stock split,
      share  reclassification,  stock  dividend or other  similar  capital event
      shall bear legends in substantially the following form:

      THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE
      SECURITIES ACT OF 1933 (THE  'SECURITIES  ACT') OR UNDER THE APPLICABLE OR
      SECURITIES  LAWS OF ANY STATE.  NEITHER THESE  SECURITIES NOR ANY INTEREST
      THEREIN MAY BE SOLD, TRANSFERRED,  PLEDGED OR OTHERWISE DISPOSED OF IN THE
      ABSENCE  OF  REGISTRATION  UNDER  THE  SECURITIES  ACT OR  ANY  APPLICABLE
      SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO EXEMPTIONS THEREFROM.

and/or  such  other  legend or  legends  as the  Company  and its  counsel  deem
necessary or appropriate. Appropriate stop transfer instructions with respect to
the Shares have been placed with the Company's transfer agent.

      9. Notices.  Any notice required to be given pursuant to this Option shall
be in writing and shall be deemed to be  delivered  upon receipt or, in the case
of notices by the Company, five (5) days after deposit in the U.S. mail, postage
prepaid, addressed to Optionee at the address last provided by Optionee.

      10.  Applicable Law. This Option has been granted,  executed and delivered
in the  State of New  York,  and the  interpretation  and  enforcement  shall be
governed by the laws thereof and subject to the  exclusive  jurisdiction  of the
courts therein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       3
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Option as of the
date first above written.

                           COMPANY:          NATIONAL INVESTMENT MANAGERS INC.,
                                             a Nevada corporation

                                             By:    /s/ Leonard A. Neuhaus
                                                    ----------------------------
                                             Name:  Leonard A. Neuhaus
                                             Title: COO/CFO

                           OPTIONEE:
                                             By:   /s/ Nicholas J. Lamoriello
                                                   -----------------------------
                                                   (signature)
                                             Name: Nicholas J. Lamoriello

                                       4
<PAGE>

                                   Appendix A

                               NOTICE OF EXERCISE

NATIONAL INVESTMENT MANAGERS INC.
________________________
________________________

      Re: Stock Option

      Notice is hereby given pursuant to Section 5 of my Stock Option  Agreement
that I elect to purchase  the number of shares set forth  below at the  exercise
price set forth in my option agreement:

      Stock Option Agreement dated: ____________

      Number of shares being purchased: ____________

      Exercise Price: $____________

      A check in the amount of the aggregate price of the shares being purchased
is attached.

      I hereby  confirm  that such  shares are being  acquired  by me for my own
account  for  investment  purposes,  and not with a view to,  or for  resale  in
connection  with,  any  distribution  thereof.  I will not sell or dispose of my
Shares in violation of the Securities Act of 1933, as amended, or any applicable
federal or state securities laws.  Further, I understand that the exemption from
taxable  income at the time of exercise is dependent  upon my holding such stock
for a period of at least one year from the date of  exercise  and two years from
the date of grant of the Option.

      I understand that the certificate representing the Option Shares will bear
a  restrictive  legend within the  contemplation  of the  Securities  Act and as
required  by such other  state or federal law or  regulation  applicable  to the
issuance or delivery of the Option Shares.

                                        By: __________________________
                                            (signature)
                                        Name: ________________________

                                       5

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