Document:

NON-DISCLOSURE

    AND
      

    NON-SOLICITATION
      AGREEMENT

    

     

    THIS
      NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT
      (“Agreement”), dated as of April 3, 2008 (the "Effective Date"), by and between
      Anthony S. Delfino (the “Seller”) and National Investment Managers Inc., a
      Florida corporation (“NIM”). 

     

    RECITALS

    

    A.    Pursuant
      to that certain Stock Purchase Agreement, dated as of April 3, 2008, by and
      among NIM, California
      Investment Annuity Sales, Inc. (the “Company”), Richard
      L. Kaplan and Hana E. Kaplan Inter Vivos Trust Agreement dated 1/29/97 as
      amended and restated 1/10/03 and Anthony Delfino (the “Purchase Agreement”), the
      Company is being acquired by NIM. Capitalized terms not otherwise defined herein
      shall have the meanings ascribed to such terms in the Purchase
      Agreement.

     

    B.    Seller
      has been a principal shareholder and officer, director and employee of the
      Company for many years, and was previously a shareholder of VEBA
      Administrators, Inc. doing
      business as Benefit Planning, Inc., a California corporation ("BPI"), which
      is
      currently owned by Company, and has developed and received special, unique
      and
      extraordinary knowledge, information and goodwill in connection
      therewith.

     

    C.    It
      is a
      condition precedent to the consummation of the transactions contemplated by
      the
      Purchase Agreement, and an inducement to NIM to enter into the Purchase
      Agreement and effect the purchase of the Company and its respective businesses
      thereunder and the goodwill represented thereby, that the parties hereto execute
      and deliver this Agreement.

     

    NOW,
      THEREFORE, in
      consideration of the foregoing premises and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto agree as follows:

     

    1    Non-Solicitation.
      Commencing on the date hereof and ending on the last day of the Restricted
      Period (as defined below), Seller covenants and agrees that Seller will not,
      without NIM’s prior written consent, directly or indirectly, either on behalf of
      Seller or on behalf of any business venture, as an employee, consultant,
      partner, principal, stockholder, officer, director, trustee, agent, or otherwise
      (other than on behalf of the Company or BPI):

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (A)    solicit
      or divert any existing business or any existing customer from NIM, the Company,
      BPI or its Affiliates or assist any person, firm, corporation or other entity
      in
      doing so or attempting to do so; or

     

    (B)    cause
      or
      seek to cause any person, firm or corporation that is doing business with NIM
      or
      its Affiliates to refrain from doing business with NIM or its Affiliates or
      assist any person, firm, corporation or other entity in doing so;
      or

     

    (C)    hire,
      solicit or divert from NIM or its Affiliates any of their respective employees,
      consultants or agents who have, at any time during the immediately preceding
      one
      (1) year period from the date hereof, been engaged by NIM
      or its
      Affiliates,
      nor
      assist any person, firm, corporation or other entity in doing so.

     

    As
      used
      in this Agreement, the
      term
“Affiliates” shall mean any
      entity controlling, controlled by or under the common control of NIM. For the
      purpose of this Agreement, “control” shall mean the direct or indirect ownership
      of fifty (50%) percent or more of the outstanding shares or other voting rights
      of an entity or possession, directly or indirectly, of the power to direct
      or
      cause the direction of management and policies of an entity.

     

    As
      used
      in this Agreement, “Restricted Period” means the period commencing on the date
      hereof and ending two (2) years from the date of Seller’s termination of
      employment or consulting period with the Company or BPI for any reason.

     

    2    Nondisclosure.
      Seller
      understands and agrees that the business of the Company and its Affiliates
      is
      based upon specialized work and Confidential Information (as hereinafter
      defined). Seller agrees that following the termination of Seller’s employment or
      consulting period with BPI and for two (2) years thereafter, Seller shall keep
      secret all such Confidential Information and that Seller will not, directly
      or
      indirectly, use for Seller’s own benefit or for the benefit of others nor
      Disclose (as hereinafter defined), without the prior written consent of NIM,
      any
      Confidential Information. At any time upon NIM’s request, Seller shall turn over
      to NIM all books, notes, memoranda, manuals, notebooks, records and other
      documents made, compiled by, delivered to, or in the possession or control
      of
      Seller containing or concerning any Confidential Information, including all
      copies thereof, in any form or format, and shall delete all such Confidential
      Information from any computer hard disks under Seller's control, wherever
      located, containing any such information, it being agreed that the same and
      all
      information contained therein are at all times the exclusive property of the
      Company or BPI.

     

    As
      used
      in this Agreement, the term “Confidential Information” means any information or
      compilation of information not generally known to the public or the industry,
      that is proprietary or confidential to the Company or BPI and/or those doing
      business with the Company or BPI, including but not limited to know-how,
      process, techniques, methods, plans, specifications, trade secrets, patents,
      copyrights, supplier lists, customer lists, mailing lists, financial
      information, business plans and/or policies, methods of operation, sales and
      marketing plans and any other information acquired or developed by Seller in
      the
      course of his past, present and future (while employed or retained as a
      consultant by the Company or BPI) dealings with the Company or BPI, which is
      not
      available to the public.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Confidential
      Information” does not
      include any information, datum or fact: (a) currently available to the public
      as
      of the date hereof; (b) after it becomes available to the public other than
      as a
      result of a breach hereof or other wrongful conduct by Seller; (c) after it
      becomes available to Seller on a nonconfidential basis from a source other
      than
      the Company or BPI or their affiliates or a person or entity breaching his
      or
      its confidentiality agreement or other relationship of confidence with the
      Company or BPI; or (d) developed independently by Seller without any reference
      to or use whatsoever of any Confidential Information of the Company or
      BPI.

    

    As
      used
      in this Agreement, the term “Disclose” means to reveal, deliver, divulge,
      disclose, publish, copy, communicate, show, allow or permit access to, or
      otherwise make known or available to any third party, any of the Confidential
      Information.

    

    3    Blue
      Pencil Doctrine.
      In the
      event that the restrictive covenants contained in Section 1
      and/or
      Section 2
      of this
      Agreement shall be found by a court of competent jurisdiction to be unreasonable
      by reason of such restrictive covenants extending for too great a period of
      time
      or over too great a geographic area or by reason of such restrictive covenants
      being too extensive in any other respect, then such restrictive covenant shall
      be deemed modified to the minimum extent necessary to make such restrictive
      covenant reasonable and enforceable under the circumstances.

     

    4    Injunctive
      Relief.
      If
      Seller
      shall breach or threaten to breach any of the provisions of
      Section 1
      and/or
      Section 2,
      in
      addition to and without limiting any other remedies available to NIM at law
      or
      in equity, NIM shall be entitled to seek immediate injunctive relief in any
      court to restrain any such breach or threatened breach and to enforce the
      provisions of Section 1
      and/or
      Section 2,
      as the
      case may be. Seller acknowledges and agrees that there is no adequate remedy
      at
      law for any such breach or threatened breach and, in the event that any
      proceeding is brought seeking injunctive relief, Seller shall not use as a
      defense thereto that there is an adequate remedy at law.

     

    5    Reasonableness
      of Covenants.
      Seller
      acknowledges and agrees that the restrictive covenants contained in this
      Agreement are a necessary inducement to Purchaser purchasing Seller’s ownership
      interests in the Company and its subsidiaries, and that the scope (geographic
      and otherwise) and period of duration of the restrictive covenants contained
      in
      this Agreement are both fair and reasonable and that the interests sought to
      be
      protected by NIM are legitimate business interests entitled to be protected.
      Seller further acknowledges and agrees that NIM would not have purchased
      Seller’s ownership interests in the Company and its subsidiaries pursuant to the
      Purchase Agreement unless Seller entered into this Agreement.

     

    6    General
      Provisions.

     

    (A)    Entire
      Agreement.
      This
      Agreement, together with the Purchase Agreement and any other agreements
      contemplated thereby, contain the entire agreement of the parties hereto with
      respect to the subject matter hereof, and supersede all prior or contemporaneous
      agreements and understandings, oral or written, among the parties hereto and
      thereto with respect to the subject matter hereof and thereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (B)    Amendment;
      Waiver.
      No
      amendment or waiver of any provision of this Agreement shall be effective unless
      the same shall be in writing and signed by all of the parties and then such
      waiver shall only be effective in the specific instance and for the specific
      purpose for which it was given.

     

    (C)    Notices.
      All
      notices and other communica-tions under this Agreement shall be in writing
      and
      shall be given in accordance with the notice provisions of the Purchase
      Agreement. 

     

    (D)    Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, personal representative(s), successors and permitted
      assigns. This Agreement may be assigned to, and thereupon shall inure to the
      benefit of, any organization which succeeds to substantially all of the business
      or assets of NIM, whether by means of merger, consolidation, acquisition of
      all
      or substantially all of the assets of NIM or otherwise, including, without
      limitation, by operation of law.

     

    (E)    Governing
      Law. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California applicable to agreements made and to be performed in that
      state, without regard to any of its principles of conflicts of laws or other
      laws that would result in the application of the laws of another jurisdiction.
      This Agreement shall be construed and interpreted without regard to any
      presumption against the party causing this Agreement to be drafted. Each of
      the
      parties hereby unconditionally and irrevocably waives the right to a trial
      by
      jury in any action, suit or proceeding arising out of or relating to this
      Agreement or the transactions contemplated hereby. Each of the parties
      unconditionally and irrevocably consents to the exclusive jurisdiction of the
      courts of the State of California located in the County of Los Angeles and
      the
      Federal court in the Central District of California with respect to any suit,
      action or proceeding arising out of or relating to this Agreement or the
      transactions contemplated hereby, and each of the parties hereby unconditionally
      and irrevocably waives any objection to venue in any such court.

     

    (F)    Recovery
      of Attorneys’ Fees and Costs.
      If any
      action for breach of or to enforce the provisions of this Agreement is
      commenced, the court in such action shall award to the party in whose favor
      a
      judgment is entered, a reasonable sum as attorneys' fees and costs. Such
      attorneys' fees and costs shall be paid by the non-prevailing party in such
      action.

     

    (G)    Headings.
      The
      headings to the paragraphs of this Agreement are intended for the convenience
      of
      the parties only and shall in no way be held to explain, modify, amplify or
      aid
      in the interpretation of the provisions hereof.

     

    (H)    Severability.
      The
      provisions of this Agreement shall be deemed severable and if any portion hereof
      shall be held invalid, illegal or unenforceable for any reason by a court of
      competent jurisdiction, the remainder shall not thereby be invalidated but
      shall
      remain in full force and effect.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (I)    Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original but all of which together shall constitute one and the same agreement.
      In addition, the parties may execute multiple original copies of this Agreement,
      each of which shall be considered an original, but all of which shall be
      considered the same Agreement.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

     

    
      	 	 	 
	 	NATIONAL
              INVESTMENT MANAGERS INC.
	 
 	 
 	 
 
	 	By:  	/s/ Steven
              Ross
	 	Name:	Steven Ross
	 	Title:	CEO
	 	 	 
	 	/s/ Anthony
              S.
              Delfino
	 	Anthony
              S.
              Delfino

    

     

     

    
      [SIGNATURE
        PAGE - 

      NON-DISCLOSURE
        AND 

      NON-SOLICITATION
        AGREEMENT]

       

    

    
      
         

      

      
        6NON-DISCLOSURE

      AND
        

      NON-SOLICITATION
        AGREEMENT

      

      

      THIS
        NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT
        (“Agreement”), dated as of April 3, 2008 (the "Effective Date"), by and between
        Richard Kaplan (the “Seller”) and National Investment Managers Inc., a Florida
        corporation (“NIM”). 

       

      RECITALS

      

      A.  Pursuant
        to that certain Stock Purchase Agreement, dated as of April 3, 2008, by and
        among NIM, California
        Investment Annuity Sales, Inc. (the “Company”), Richard
        L. Kaplan and Hana E. Kaplan Inter Vivos Trust Agreement dated 1/29/97 as
        amended and restated 1/10/03 and Anthony Delfino (the “Purchase Agreement”), the
        Company is being acquired by NIM. Capitalized terms not otherwise defined
        herein
        shall have the meanings ascribed to such terms in the Purchase
        Agreement.

       

      B.  Seller
        has been a principal shareholder and officer, director and employee of the
        Company for many years, and was previously a shareholder of VEBA
        Administrators, Inc. doing
        business as Benefit Planning, Inc., a California corporation ("BPI"), which
        is
        currently owned by Company, and has developed and received special, unique
        and
        extraordinary knowledge, information and goodwill in connection
        therewith.

       

      C.  It
        is a
        condition precedent to the consummation of the transactions contemplated
        by the
        Purchase Agreement, and an inducement to NIM to enter into the Purchase
        Agreement and effect the purchase of the Company and its respective businesses
        thereunder and the goodwill represented thereby, that the parties hereto
        execute
        and deliver this Agreement.

       

      NOW,
        THEREFORE, in
        consideration of the foregoing premises and for other good and valuable
        consideration, the receipt and sufficiency of which is hereby acknowledged,
        the
        parties hereto agree as follows:

       

      1  Non-Solicitation.
        Commencing on the date hereof and ending on the last day of the Restricted
        Period (as defined below), Seller covenants and agrees that Seller will not,
        without NIM’s prior written consent, directly or indirectly, either on behalf of
        Seller or on behalf of any business venture, as an employee, consultant,
        partner, principal, stockholder, officer, director, trustee, agent, or otherwise
        (other than on behalf of the Company or BPI):

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (A)  solicit
        or divert any existing business or any existing customer from NIM, the Company,
        BPI or its Affiliates or assist any person, firm, corporation or other entity
        in
        doing so or attempting to do so; or

       

      (B)  cause
        or
        seek to cause any person, firm or corporation that is doing business with
        NIM or
        its Affiliates to refrain from doing business with NIM or its Affiliates
        or
        assist any person, firm, corporation or other entity in doing so;
        or

       

      (C)  hire,
        solicit or divert from NIM or its Affiliates any of their respective employees,
        consultants or agents who have, at any time during the immediately preceding
        one
        (1) year period from the date hereof, been engaged by NIM
        or its
        Affiliates,
        nor
        assist any person, firm, corporation or other entity in doing so.

       

      As
        used
        in this Agreement, the
        term
“Affiliates” shall mean any
        entity controlling, controlled by or under the common control of NIM. For
        the
        purpose of this Agreement, “control” shall mean the direct or indirect ownership
        of fifty (50%) percent or more of the outstanding shares or other voting
        rights
        of an entity or possession, directly or indirectly, of the power to direct
        or
        cause the direction of management and policies of an entity.

       

      As
        used
        in this Agreement, “Restricted Period” means the period commencing on the date
        hereof and ending two (2) years from the date of Seller’s termination of
        employment or consulting period with the Company or BPI for any reason.

       

      2  Nondisclosure.
        Seller
        understands and agrees that the business of the Company and its Affiliates
        is
        based upon specialized work and Confidential Information (as hereinafter
        defined). Seller agrees that following the termination of Seller’s employment or
        consulting period with BPI and for two (2) years thereafter, Seller shall
        keep
        secret all such Confidential Information and that Seller will not, directly
        or
        indirectly, use for Seller’s own benefit or for the benefit of others nor
        Disclose (as hereinafter defined), without the prior written consent of NIM,
        any
        Confidential Information. At any time upon NIM’s request, Seller shall turn over
        to NIM all books, notes, memoranda, manuals, notebooks, records and other
        documents made, compiled by, delivered to, or in the possession or control
        of
        Seller containing or concerning any Confidential Information, including all
        copies thereof, in any form or format, and shall delete all such Confidential
        Information from any computer hard disks under Seller's control, wherever
        located, containing any such information, it being agreed that the same and
        all
        information contained therein are at all times the exclusive property of
        the
        Company or BPI.

       

      As
        used
        in this Agreement, the term “Confidential Information” means any information or
        compilation of information not generally known to the public or the industry,
        that is proprietary or confidential to the Company or BPI and/or those doing
        business with the Company or BPI, including but not limited to know-how,
        process, techniques, methods, plans, specifications, trade secrets, patents,
        copyrights, supplier lists, customer lists, mailing lists, financial
        information, business plans and/or policies, methods of operation, sales
        and
        marketing plans and any other information acquired or developed by Seller
        in the
        course of his past, present and future (while employed or retained as a
        consultant by the Company or BPI) dealings with the Company or BPI, which
        is not
        available to the public.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      “Confidential
        Information” does not
        include any information, datum or fact: (a) currently available to the public
        as
        of the date hereof; (b) after it becomes available to the public other than
        as a
        result of a breach hereof or other wrongful conduct by Seller; (c) after
        it
        becomes available to Seller on a nonconfidential basis from a source other
        than
        the Company or BPI or their affiliates or a person or entity breaching his
        or
        its confidentiality agreement or other relationship of confidence with the
        Company or BPI; or (d) developed independently by Seller without any reference
        to or use whatsoever of any Confidential Information of the Company or
        BPI.

      

      As
        used
        in this Agreement, the term “Disclose” means to reveal, deliver, divulge,
        disclose, publish, copy, communicate, show, allow or permit access to, or
        otherwise make known or available to any third party, any of the Confidential
        Information.

      

      3  Blue
        Pencil Doctrine.
        In the
        event that the restrictive covenants contained in Section 1
        and/or
        Section 2
        of this
        Agreement shall be found by a court of competent jurisdiction to be unreasonable
        by reason of such restrictive covenants extending for too great a period
        of time
        or over too great a geographic area or by reason of such restrictive covenants
        being too extensive in any other respect, then such restrictive covenant
        shall
        be deemed modified to the minimum extent necessary to make such restrictive
        covenant reasonable and enforceable under the circumstances.

       

      4  Injunctive
        Relief.
        If
        Seller
        shall breach or threaten to breach any of the provisions of
        Section 1
        and/or
        Section 2,
        in
        addition to and without limiting any other remedies available to NIM at law
        or
        in equity, NIM shall be entitled to seek immediate injunctive relief in any
        court to restrain any such breach or threatened breach and to enforce the
        provisions of Section 1
        and/or
        Section 2,
        as the
        case may be. Seller acknowledges and agrees that there is no adequate remedy
        at
        law for any such breach or threatened breach and, in the event that any
        proceeding is brought seeking injunctive relief, Seller shall not use as
        a
        defense thereto that there is an adequate remedy at law.

       

      5  Reasonableness
        of Covenants.
        Seller
        acknowledges and agrees that the restrictive covenants contained in this
        Agreement are a necessary inducement to Purchaser purchasing Seller’s ownership
        interests in the Company and its subsidiaries, and that the scope (geographic
        and otherwise) and period of duration of the restrictive covenants contained
        in
        this Agreement are both fair and reasonable and that the interests sought
        to be
        protected by NIM are legitimate business interests entitled to be protected.
        Seller further acknowledges and agrees that NIM would not have purchased
        Seller’s ownership interests in the Company and its subsidiaries pursuant to the
        Purchase Agreement unless Seller entered into this Agreement.

       

      6  General
        Provisions.

       

      (A)  Entire
        Agreement.
        This
        Agreement, together with the Purchase Agreement and any other agreements
        contemplated thereby, contain the entire agreement of the parties hereto
        with
        respect to the subject matter hereof, and supersede all prior or contemporaneous
        agreements and understandings, oral or written, among the parties hereto
        and
        thereto with respect to the subject matter hereof and thereof.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (B)  Amendment;
        Waiver.
        No
        amendment or waiver of any provision of this Agreement shall be effective
        unless
        the same shall be in writing and signed by all of the parties and then such
        waiver shall only be effective in the specific instance and for the specific
        purpose for which it was given.

       

      (C)  Notices.
        All
        notices and other communica-tions under this Agreement shall be in writing
        and
        shall be given in accordance with the notice provisions of the Purchase
        Agreement. 

       

      (D)  Assignment.
        This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective heirs, personal representative(s), successors and permitted
        assigns. This Agreement may be assigned to, and thereupon shall inure to
        the
        benefit of, any organization which succeeds to substantially all of the business
        or assets of NIM, whether by means of merger, consolidation, acquisition
        of all
        or substantially all of the assets of NIM or otherwise, including, without
        limitation, by operation of law.

       

      (E)  Governing
        Law. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of California applicable to agreements made and to be performed in
        that
        state, without regard to any of its principles of conflicts of laws or other
        laws that would result in the application of the laws of another jurisdiction.
        This Agreement shall be construed and interpreted without regard to any
        presumption against the party causing this Agreement to be drafted. Each
        of the
        parties hereby unconditionally and irrevocably waives the right to a trial
        by
        jury in any action, suit or proceeding arising out of or relating to this
        Agreement or the transactions contemplated hereby. Each of the parties
        unconditionally and irrevocably consents to the exclusive jurisdiction of
        the
        courts of the State of California located in the County of Los Angeles and
        the
        Federal court in the Central District of California with respect to any suit,
        action or proceeding arising out of or relating to this Agreement or the
        transactions contemplated hereby, and each of the parties hereby unconditionally
        and irrevocably waives any objection to venue in any such court.

       

      (F)  Recovery
        of Attorneys’ Fees and Costs.
        If any
        action for breach of or to enforce the provisions of this Agreement is
        commenced, the court in such action shall award to the party in whose favor
        a
        judgment is entered, a reasonable sum as attorneys' fees and costs. Such
        attorneys' fees and costs shall be paid by the non-prevailing party in such
        action.

       

      (G)  Headings.
        The
        headings to the paragraphs of this Agreement are intended for the convenience
        of
        the parties only and shall in no way be held to explain, modify, amplify
        or aid
        in the interpretation of the provisions hereof.

       

      (H)  Severability.
        The
        provisions of this Agreement shall be deemed severable and if any portion
        hereof
        shall be held invalid, illegal or unenforceable for any reason by a court
        of
        competent jurisdiction, the remainder shall not thereby be invalidated but
        shall
        remain in full force and effect.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (I)  Counterparts.
        This
        Agreement may be executed in counterparts, each of which shall be deemed
        an
        original but all of which together shall constitute one and the same agreement.
        In addition, the parties may execute multiple original copies of this Agreement,
        each of which shall be considered an original, but all of which shall be
        considered the same Agreement.

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

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

      
        
           

          
            	 	 	 
	 	NATIONAL
                    INVESTMENT MANAGERS INC.
	 
 	 
 	 
 
	 	By:  	/s/ Steven
                    Ross
	 	Name:	Steven Ross
	 	Title:	CEO
	 	 	 
	 	/s/
                    Richard
                    Kaplan
	 	Richard
                    Kaplan
                    

          

        

      

      

      

      [SIGNATURE
        PAGE - 

      NON-DISCLOSURE
        AND 

      NON-SOLICITATION
        AGREEMENT]

       

      
        
           

        

        
          6

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