Document:

[EXECUTION
      COPY]

    

    

    CONSENT
      AND AMENDMENT
      NO. 1 TO SECURITIES PURCHASE AND LOAN AGREEMENT

    

    This
      Consent and Amendment No. 1 to Securities Purchase and Loan Agreement, dated
      as
      of April 3, 2008 (this “Agreement”),
      is by
      and among National Investment Managers Inc., a Florida corporation (the
“Company”),
      Woodside Capital Partners IV, LLC (“Woodside”),
      Woodside Capital Partners IV QP, LLC (“QP”),
      Lehman Brothers Commercial Bank (“Lehman”
and
      together with Woodside and QP, the “Holders”)
      and
      Woodside Agency Services, LLC as collateral agent for the Holders (the
“Collateral
      Agent”).

    

    R
      E C
      I T A L S

    

    
      	
              A.

            	
              Reference
                is hereby made to a certain Securities Purchase and Loan Agreement
                dated
                as of November 30, 2007 by and among the Company, the Holders and
                the
                Collateral Agent (the “SPA”).
                All capitalized terms used herein and not otherwise defined herein
                shall
                have the meanings as set forth in the
                SPA.

            

    

    

    
      	
              B.

            	
              The
                Company has requested that Holders consent to the acquisition of
                California Investment Annuity Sales, Inc., a California corporation
                with
                its principal place of business at 4640 Admiralty Way, Marina Del
                Ray, CA
                90292 (the “Subsidiary”)
                pursuant to that certain Stock Purchase Agreement, dated as of April
                ___,
                2008 (the “Acquisition
                Agreement”)
                among the Company, the Subsidiary, Richard L. Kaplan and Hana E.
                Kaplan
                Inter Vivos Trust Agreement dated 1/29/97 as amended and restated
                1//10/03
                (the “Trust”)
                and Anthony Delfino (“Delfino”
                and together with the Trust, the “Sellers”).
                

            

    

    

    
      	
              C.

            	
              The
                Holders have agreed to consent to the acquisition of the Subsidiary,
                provided that the Company joins with the Holders in the execution
                of this
                Agreement and satisfies the conditions precedent set forth herein,
                including, without limitation, the execution by the Subsidiary of
                a
                Guaranty of the Obligations.

            

    

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which is hereby acknowledged, the Holders, the Collateral Agent and the Company
      hereby agree as follows:

    

    
      	
              1.

            	
              Consent.
                The Holders hereby consent to the acquisition of the Subsidiary on
                the
                terms set forth in the Acquisition Agreement, and the acquisition
                of the
                Subsidiary shall be deemed to be a Permitted Acquisition.
                

            

    

    

    
      	
              2.

            	
              Amendments.
                The Holders, the Collateral Agent and the Company hereby agree to
                the
                following amendments to the SPA:

            

    

    

    
      	 	
              (a)

            	
              Schedule 1(a)
                to
                the SPA is hereby deleted in its entirety and the attached Schedule 1(a)
                is
                substituted therefor. 

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Schedule 4.6
                to
                the SPA is hereby deleted in its entirety and the attached Schedule 4.6
                is
                substituted therefor. 

            

    

    

    
      	
              3.

            	
              Conditions
                Precedent.
                As a condition of this Agreement, the Company shall at the time of
                execution of this Agreement:

            

    

    

    
      	 	
              (a)

            	
              reimburse
                the Collateral Agent and the Holders for their costs in connection
                with
                this Agreement and the Modification Documents (as defined below),
                including legal fees and expenses incurred by the Collateral Agent
                and the
                Holders;

            

    

    

    
      	 	
              (b)

            	
              deliver
                to the Collateral Agent the following documents in form and substance
                satisfactory to the Collateral Agent or, if applicable, as required
                by the
                terms and conditions of the SPA:

            

    

    

    
      	
            	(i)	
              a
                Securities Pledge Agreement executed by the Company and by the
                Subsidiary;

            

    

    

    
      	 	 	
              (ii)

            	
              an
                Amendment No. 1 to Intercreditor Agreement executed by the Company
                and by
                the Senior Creditor;

            

    

    

    
      	 	 	
              (iii)

            	
              copies
                of the Stock Certificate and the Stock Power executed in blank by
                the
                Company in favor of the Senior Creditor with respect to the stock
                of the
                Subsidiary;

            

    

    

    
      	 	 	
              (iv)

            	
              Seller
                Subordination Agreements executed by each seller of the equity interests
                in the Subsidiary;

            

    

    

    
      	
            	(v)	
              a
                Perfection Certificate executed by the
                Subsidiary;

            

    

    

    
      	
            	(vi)	
              a
                Guaranty in favor of the Collateral Agent and the Holders executed
                by
                the Subsidiary;

            

    

    

    
      	
            	(vii)	
              a
                Security Agreement executed by the Subsidiary in favor of the Collateral
                 Agent
                and the Holders; and

            

    

    

    
      	 	 	
              (viii)

            	
              any
                other documents the Collateral Agent deems necessary to effectuate
                this
                amendment to the SPA.

            

    

    

    
      	 	
              The
                foregoing documents and any additional documents executed herewith,
                together with this Agreement, shall be referred to herein as the
                “Modification
                Documents”.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	
              4.

            	
              The
                Company hereby represents and warrants that: (i) its representations
                and
                warranties set forth in the SPA are true on and as of the date hereof
                as
                if made on such date (except to the extent that the same expressly
                relate
                to an earlier date or are affected by the consummation of transactions
                permitted hereby or by the Agreement); (ii) it is in compliance in
                all
                material respects with all of the terms and provisions set forth
                in the
                SPA on its part to be observed or performed; (iii) after giving effect
                to
                the acquisition of the Subsidiary no Default or Event of Default
                has
                occurred and is continuing; (iv) since the date of the financial
                statements most recently provided to the Collateral Agent and the
                Holders
                by the Company, there has occurred no material adverse change in
                the
                assets or liabilities or the financial or other condition of the
                Company;
                (v) the Company and the Subsidiary each have full power to execute,
                deliver and perform their respective obligations under the Modification
                Documents and the execution, delivery and performance of the Modification
                Documents have been authorized and directed by the appropriate parties;
                (vi) the Modification Documents constitute the legal, valid and binding
                obligations of the Company and/or the Subsidiary, as applicable,
                enforceable in accordance with their terms; (vii) the execution,
                delivery
                and performance thereof will not violate any provision of any existing
                law
                or regulation applicable to the Company or the Subsidiary or their
                respective governing documents or of any order or decree of any court,
                arbitrator or governmental authority or of any contractual undertaking
                to
                which either is a party or by which either may be bound; and (viii)
                no
                consents, licenses, approvals or authorizations of, exemptions by
                or
                registrations or filings with, any governmental authority are required
                with respect to the Modification Documents.

            

    

    

    
      	
              5.

            	
              If
                the Company fails to comply with all the terms and conditions of
                the
                Modification Documents, such failure shall constitute a default under
                this
                Agreement and an Event of Default under the SPA and other Financing
                Agreements. 

            

    

    

    No
      other
      changes shall be made to the SPA, and the Company reaffirms its obligations
      under the Financing Agreements in their entirety. This Agreement is not intended
      to extinguish or affect any of the debt evidenced by the Notes or to otherwise
      modify any of the obligations under any of the Financing Agreements. The Company
      hereby reaffirms that the Company remains indebted to the Collateral Agent
      and
      the Holders without defense, counterclaim or offset and hereby releases each
      of
      the Collateral Agent and the Holders from any and all claims or other causes
      of
      action which the Company may have against the Collateral Agent or any Holder
      with respect to the Obligations and the Financing Agreements.

    

    This
      Agreement is made in the Commonwealth of Massachusetts and shall be construed
      in
      accordance with its laws. If any provision hereof is in conflict with any
      statute or rule of law of the Commonwealth of Massachusetts or any other statute
      or rule of law of any other applicable jurisdiction or is otherwise
      unenforceable, such provisions shall be deemed null and void only to the extent
      of such conflict or unenforceability and shall be deemed separate from and
      shall
      not invalidate any other provision of this Agreement.

    

    This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns, and no other parties shall be
      a
      beneficiary hereunder. Neither this Agreement nor any of the provisions hereof
      can be changed, waived, discharged or terminated except by an instrument in
      writing signed by the party against whom enforcement of the change, waiver,
      discharge or termination is sought.

    

    [Signatures
      on following page]

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    EXECUTED
      under seal as of the date first above written.

     

    WOODSIDE
      CAPITAL PARTNERS IV, LLC,
      as a
      Holder

    

    
      	 	By:	Woodside Opportunity
              Partners, LLC, its Manager
	 	By:	
              Woodside
                Capital Management,LLC, its Manager

            
	 	 	 
	 	
              By:

            	
              /s/
                Daphne Firth

            
	 	
               

            	
              Name:
                Daphne Firth

            
	 	
               

            	
              Title:

            

    

     

    WOODSIDE
      CAPITAL PARTNERS IV QP, LLC,
      as a
      Holder 

    

    
      	 	
              By:
                

            	Woodside Opportunity
              Partners, LLC, its Manager
	 	
              By:

            	Woodside Capital
              Management,LLC, its Manager
	 	 	 
	 	
              By:

            	
              /s/
                Daphne Firth

            
	 	
               

            	
              Name:
                Daphne Firth

            
	 	
               

            	
              Title:

            

    

     

    LEHMAN
      BROTHERS COMMERCIAL BANK,
      as a
      Holder

     

    
      	
              By:

            	
              /s/
                Darren S. Lane

            
	 	
              Name:
                Darren S. Lane

            
	 	
              Title:
                Operating Officer

            

    

     

    WOODSIDE
      AGENCY SERVICES, LLC,
      as
      Collateral Agent

    

    
      	 	
              By:

            	
              Woodside
                Capital Management, LLC, its Manager

            
	 	 	 
	 	
              By:

            	
              /s/
                Daphne Firth

            
	 	 	
              Name:
                Daphne Firth

            
	 	 	
              Title:

            

    

    

      [Signature
        Page to Consent and Amendment No. 1]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NATIONAL
      INVESTMENT MANAGERS INC.

     

    
      	
              By:

            	
              /s/
                Steven Ross

            
	 	
              Name:
                Steven Ross

            
	 	
              Title:
                CEO

            

    

    

    

      [Signature
        Page to Consent and Amendment No. 1]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    RATIFICATION
      OF OBLIGATIONS

    

    Each
      of
      the undersigned Guarantors hereby acknowledges, agrees and consents to the
      foregoing Consent and Amendment No. 1 and agrees that the Guaranties and each
      of
      the other Financing Agreements remain in full force and effect, and the
      Guarantors confirm and ratify all of their obligations under each Financing
      Agreement (as amended hereby) to which such Guarantor is a party. 

     

    
      	 	
              ABR
                ADVISORS, INC.

              ASSET
                PRESERVATION CORP.

              BENEFIT
                DYNAMICS, INC.

              BENEFIT
                MANAGEMENT INC.

              BPI/PPA,
                INC.

              CIRCLE
                PENSION, INC.

              COMPLETE
                INVESTMENT  MANAGEMENT,
                INC. OF  PHILADELPHIA

              HADDON
                STRATEGIC ALLIANCES, INC.

              LAMORIELLO
                & CO., INC.

              NATIONAL
                ACTUARIAL PENSION  SERVICES,
                INC.

              NATIONAL
                ASSOCIATES, INC., N.W.

              PENSION
                ADMINISTRATION SERVICES,  INC.

              PENTEC,
                INC.

              PENTEC
                CAPITAL MANAGEMENT, INC.

              SOUTHEASTERN
                PENSION SERVICES,  INC.

              STEPHEN
                H. ROSEN & ASSOCIATES, INC.

              THE
                PENSION ALLIANCE, INC.

              VALLEY
                FORGE ENTERPRISES, LTD.

              V.F.
                ASSOCIATES, INC.

              VF
                INVESTMENT SERVICES, CORP.

              VALLEY
                FORGE CONSULTING  CORPORATION

            
	 	 
	 	 
	 	
              By:

            	
              /s/Steven
                Ross

            
	 	
               

            	
              Name:
                Steven Ross

            
	 	
               

            	
              Title:
                CEO

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule 1(a)

    

    Acquired
      EBITDA

    

    
      	
              For
                the Company’s and its Subsidiaries’ four fiscal quarter period ending June
                30, 2008, an amount equal to:

            	
              $363,945.04

            
	
              For
                the Company’s and its Subsidiaries’ four fiscal quarter period ending
                September 30, 2008, an amount equal to:

            	
              $259,517.79

            
	
              For
                the Company’s and its Subsidiaries’ four fiscal quarter period ending
                December 31, 2008, an amount equal to:

            	
              $124,841.55

            

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule 4.6

    

    Subsidiaries

    

    
      	 
	
              National
                Investment Managers Inc. Subsidiaries

            
	 	 	 	 	 	 	 
	 	
              ABR
                Advisors, Inc.

              NY

            	 	 
	 	
              Benefit
                Dynamics, Inc.

              PA

            	 	 
	 	
              Benefit
                Management Inc.

              MA

            	 	 
	 	
              California
                Investment Annuity Sales, Inc.

              CA

            	 	 
	 	
              Circle
                Pension, Inc.

              NY

            	 	 
	 	
              Complete
                Investment Management, Inc. of Philadelphia

              PA

            	 	 
	 	
              Doyle
                Barnett Associates, Inc.
                (merged into Benefit Management Inc.)

              NY

            	 	 
	 	
              Haddon
                Strategic Alliances, Inc.

              NJ

            	 	 
	 	
              Lamoriello
                & Co., Inc.

              RI

            	 	 
	 	
              Asset
                Preservation Corp.

              PA

            	 	 
	 	
              National
                Actuarial Pension Services, Inc.

              TX

            	 	 
	 	
              National
                Associates, Inc., N.W.

              WA

            	 	 
	 	
              Pension
                Administration Services, Inc.

              PA

            	 	 
	 	
              Pentec,
                Inc.

              CT

            	 	 
	 	
              Pentec
                Capital Management, Inc.

              CT

            	 	 
	 	
              Southeastern
                Pension Services, Inc.

              FL

            	 	 
	 	
              Stephen
                H. Rosen & Associates, Inc.

              NJ

            	 	 
	 	
              The
                Pension Alliance, Inc.

              PA

            	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Valley
                Forge Enterprises, Ltd.

              PA 

            	 	 
	 	 	
              Valley
                Forge Consulting Corporation
                PA

            	 	 
	 	 	
              V.F.
                Associates, Inc.PA

            	 	 
	 	 	
              V.F.
                Investment Services Corp.

              PA

            	 	 
	 	
              BPI/PPA
                Inc.

              DE 

            	 	 
	 	 	
              VEBA
                Administrators, Inc.

              (d/b/a
                Benefit Planning, Inc.)

              CASTOCK
      PURCHASE AGREEMENT

    

    AMONG

    

    NATIONAL
      INVESTMENT MANAGERS INC.,

    

    CALIFORNIA
      INVESTMENT ANNUITY SALES, INC.,

    RICHARD
      L. KAPLAN AND HANA E. KAPLAN INTER VIVOS TRUST AGREEMENT 

    DATED
      1/29/97 AS AMENDED AND RESTATED 1/10/03

    AND
      ANTHONY S. DELFINO

    

    

    
 

    Dated
      as
      of April 3, 2008

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    TABLE
      OF
      CONTENTS

    

    

    
      	
              Section

            	
              Page

            
	 	 
	
              Article
                I SALE AND PURCHASE OF SHARES

            	
              1

            
	 	 
	
              Article
                II PURCHASE PRICE AND PAYMENT

            	
              1

            
	 	 
	
              Article
                III CLOSING AND TERMINATION

            	
              4

            
	 	 
	
              Article
                IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS

            	
              5

            
	 	 
	
              Article
                V REPRESENTATIONS AND WARRANTIES OF PURCHASER

            	
              20

            
	 	 
	
              Article
                VI COVENANTS

            	
              23

            
	 	 
	
              Article
                VII CONDITIONS TO CLOSING

            	
              30

            
	 	 
	
              Article
                VIII . DOCUMENTS TO BE DELIVERED

            	
              32

            
	 	 
	
              Article
                IX INDEMNIFICATION

            	
              33

            
	 	 
	
              Article
                X MISCELLANEOUS

            	
              36

            

    

    

    

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    STOCK
      PURCHASE AGREEMENT

    

    

    STOCK
      PURCHASE AGREEMENT, dated as of April 3, 2008 (the “Agreement”), among National
      Investment Managers Inc., a corporation organized under the laws of Florida
      (the
“Purchaser”), California Investment Annuity Sales, Inc., a corporation organized
      under the laws of California (the “Company”), and 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 (“Sellers”).

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      the Sellers own an aggregate of 2,666 2/3 shares of common stock, $1.00 par
      value, of the Company (the “Shares”), which Shares constitute all of the issued
      and outstanding shares of capital stock of the Company; and

     

    WHEREAS,
      the Sellers desire to sell to Purchaser, and the Purchaser desires to purchase
      from the Sellers, 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
      Sellers shall sell, assign, transfer, convey and deliver to the Purchaser,
      and
      the Purchaser shall purchase from the Sellers, all of the Shares. 

     

    

    ARTICLE
      II

    PURCHASE
      PRICE AND PAYMENT

     

    2.1 Amount
      of Purchase Price.
      The
      purchase price for the Shares shall be an amount equal to (i) $1,425,000 (one
      million four hundred twenty five thousand US dollars) (the “Cash Purchase
      Price”), and (ii) $950,000 (nine hundred fifty thousand US dollars) evidenced by
      promissory notes in the form of exhibit 2.1(ii) hereto, payable to the Sellers
      pro rata based upon their proportionate ownership of the Company (the “Notes”
and collectively with the Cash Purchase Price, the “Purchase
      Price”). 

     

    2.2 Payment
      of Purchase Price. On
      the
      Closing Date, the Purchaser shall pay the Cash Purchase Price to the Sellers,
      which shall be paid by the delivery to Sellers of a certified or
      bank
      cashier's checks in New York Clearing House Funds, payable to the order of
      the
      Sellers or, at the Sellers’ option, by wire transfer of immediately available
      funds into accounts designated by the Sellers. On the Closing Date, the
      Purchaser shall
      deliver the Notes to the Sellers. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.3 Notes
      Adjustment. 

     

    (a) Within
      60
      days after the end of each of the two twelve month periods following the Closing
      Date, the Purchaser shall cause to be prepared and delivered to Sellers a
      statement of operations of the Company for such twelve month period, determined
      in accordance with GAAP. Such statement of operations shall include (i) a
separate
      calculation
      of the
      Revenue (as defined below) of the Company; (ii) a determination as to whether
      Revenue of $600,000 for the first 12 months following the Closing Date (the
      “Initial Target Revenue”) and $630,000 for the period commencing on the
      13th
      month
      following the Closing Date and ending on the 24th
      month
      following the Closing Date (the “Secondary Target Revenue” and together with the
      Initial Target Revenue, the “Target Revenue”) has been achieved; and (iii) the
      amount of the Shortfall (as defined below). In the event that  the
      employment of John Davis, COO and President of the Purchaser, is terminated
      then
      the Initial Target Revenue shall be adjusted to $480,000 and the Secondary
      Target Revenue shall be adjusted to $504,000.  In the event all of the
      issued and outstanding securities of the Purchaser or its assets are sold or
      the
      Purchaser is merged with another entity in which there is a change in control
      of
      the Purchaser ("NIM Sale") and such NIM Sale results in a change in business
      for
      the Company that adversely impacts the ability of the Company to meet the Target
      Revenue, then the each Target Revenue shall be adjusted by the amount by which
      said Target Revenue has been adversely affected by the change in business for
      the Company following the NIM Sale. Revenue is defined as the combination of
      all
      operating revenue recognized by the Company on  GAAP basis in accordance
      with the Purchaser’s revenue recognition policy, for all existing business
      including, but not limited to, insurance and securities commissions, solicitor
      fees, TPA expense reimbursements provided by insurance carriers, and other
      referral fees/commission splits.  It also includes the operating revenue
      recognized by the Company on  GAAP basis in accordance with the Purchaser’s
      revenue recognition policy for all new business less the amount of compensation
      paid to Richard Kaplan as provided for in Schedule I(B) of the Employment
      Agreement dated as of the date hereof entered by and between VEBA
      Administrators, Inc. d/b/a Benefit Planning Inc. (“VEBA”) and Richard Kaplan and
      the amount of compensation paid to Anthony Delfino as provided for in Schedule
      I(B) of the Consulting Agreement dated as of the date hereof by and between
      VEBA
      and Anthony Delfino. Unless within fifteen
      (15)
      days
      of delivery of such statement of operations by Purchaser to Sellers, Purchaser
      shall have received a written objection from Sellers to such statement of
      operations, then such draft shall be considered the final statement of
      operations of the Company for such period (the “Final Statement of Operations”).
      If within fifteen
      (15)
      days
      of
      delivery of the statement of operations by Purchaser to Sellers, Purchaser
      shall
      have received a written objection from Sellers to such statement of operations,
      then the Sellers 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 Sellers and the Purchaser are unable to reach a
      resolution with such effect within ten
      (10)
      days
      of the Purchaser’s receipt of the Sellers’ written notice
      of
      objection,
      the
      Sellers and the Purchaser shall submit such dispute for resolution to an
      independent accounting firm mutually appointed by the Sellers 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. In the event the parties cannot mutually agree upon the Independent
      Accounting Firm, then the parties shall submit the decision to arbitration
      pursuant to Section 10.13, below, and the arbitrator shall select the
      Independent Accounting Firm. The fees and disbursements of the Independent
      Accounting Firm shall initially be paid by the Sellers; provided, however,
      in
      the event that the Independent Accounting Firm determines that the Sellers’
objection to the statement of operations are valid, then the Purchaser shall
      pay
      the fee
      payable to the Independent Accounting Firm by reimbursing Sellers any amounts
      previously paid by them and paying any balance due to the Independent Accounting
      Firm.  

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) If
      the
      revenue of the Company for either or both of the first two 12-month periods
      following the Closing Date is less than the Target Revenue or the liabilities
      set forth in the Closing Balance Sheet (as defined below) are greater than
      the
      assets set forth in the Closing Balance Sheet (as defined below) (the
“Shortfall”), then the principal amount payable pursuant to the Notes shall be
      reduced prorata amongst the Sellers by the amount of the Shortfall with the
      portion of the principal that is payable pursuant to the Notes at the earlier
      date being reduced first; provided, however, that the maximum reduction to
      the
      Notes shall be the lesser of the aggregate Principal of the Seller’s Notes or
      the balance then due on the Notes and the maximum amount of the cumulative
      Shortfall shall be no more than the aggregate Principal of the Seller’s Notes.

     

    (c) Within
      ten (10) days of the Closing, the Sellers shall deliver an unaudited balance
      sheet as of the Closing Date (the “Closing Balance Sheet”), which will be
      calculated in accordance with GAAP. Unless within five (5) business days of
      delivery of such Closing Balance Sheet by Sellers to Purchaser, Sellers shall
      have received a written objection from Sellers to Closing Balance Sheet, then
      such draft shall be considered the final Closing Balance Sheet. If within five
      (5) business days of delivery of the Closing Balance Sheet by Sellers to
      Purchaser, Sellers shall have received a written objection from Purchasers
      to
      such Closing Balance Sheet, then the Sellers 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 Sellers and the Purchaser
      are unable to reach a resolution with such effect within ten
      (10)
      days of the Sellers’ receipt of the Purchaser’s written notice
      of
      objection,
      the
      Sellers and the Purchaser shall submit such dispute for resolution to an
      independent accounting firm mutually appointed by the Sellers 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. In the event the parties cannot mutually agree upon the Independent
      Accounting Firm, then the parties shall submit the decision to arbitration
      pursuant to Section 10.13, below, and the arbitrator shall select the
      Independent Accounting Firm. The fees and disbursements of the Independent
      Accounting Firm shall initially be paid by the Sellers; provided, however,
      in
      the event that the Independent Accounting Firm determines that the Purchaser’s
      objection to the statement of operations are not valid, then the Purchaser
      shall
pay
      the fee
      payable to the Independent Accounting Firm by reimbursing Sellers any amounts
      previously paid by them and paying any balance due to the Independent Accounting
      Firm. In the event that the current assets exceed the current liabilities as
      set
      forth in the Closing Balance Sheet (the “Excess Capital”), then the Purchaser
      shall make an additional payment in cash to the Sellers on a pro rata basis
      equal to the Excess Capital within thirty (30) days. 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    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 the Sellers or their
      attorneys, Reish Luftman Reicher & Cohen, 11755 Wilshire Blvd., Tenth Floor,
      Los Angeles, CA 90025 (or at such other place as the parties may designate
      in
      writing) on such date as the Sellers and the Purchaser may designate. The date
      on which the Closing shall be held is referred to in this Agreement as the
      "Closing Date".
      Notwithstanding the foregoing, the effective date of this Agreement and the
      closing shall be March 31, 2008.

     

    3.2 Termination
      of Agreement.

     

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

     

    (a) At
      the
      election of the Sellers or the Purchaser on or after April 3, 2008, 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;

     

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

     

    (c) by
      the
      Sellers 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 Sellers, 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 Sellers. 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, and all copies thereof to the
      party furnishing the same, and shall delete all electronic copies maintained
      on
      electronic media.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    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 Company, the Sellers or the Company;
      provided, however, that the obligations of the parties set forth in Section
      3.3
      hereof shall survive any such termination and shall be enforceable hereunder;
      provided, further, however, that nothing in this Section 3.4 shall relieve
      the
      Purchaser or the Sellers of any liability for a breach of this
      Agreement.

     

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF THE SELLERS

     

    

    The
      Sellers and the Company hereby jointly and severally represent and warrant
      to
      the Purchaser that: 

     

    4.1. Organization
      and Good Standing of the Company.
      The
      Company 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
      Company is 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 Company.

    

    4.2. Authority.

    

    (a) The
      Company 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 Company, having full power and authority to
      authorize such actions.

    

    (c) Subject
      to any consents required under Section 4.7 below, the Sellers and the Company
      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 Sellers and the Company and
      constitutes a valid and binding obligation of the Sellers and the Company,
      enforceable in accordance with its terms.

    

    (d) Except
      as
      set forth in Section 4.2, 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 Sellers or the Company
      is a party or by which it or any of them is bound, any charter, regulation,
      or
      bylaw provision of the Company, or any decree, order, or rule of any court
      or
      governmental authority or arbitrator that is binding on the Sellers or the
      Company in any way.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    4.3. Shares.

    

    (a) The
      authorized capital stock of the Company consist of 100,000 shares of common
      stock, par value $1.00 per share, of which 2,666 2/3 shares have been issued
      to
      Sellers and constitute the only shares of capital stock outstanding. All of
      the
      Shares are duly authorized, validly issued, fully paid and non-assessable.
      

    

    (b) The
      Sellers are 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 Section 4.3 or Schedule 4.3, 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 the Company is or may become
      obligated to issue, assign or transfer any shares of capital stock of the
      Company, except as set forth in Section 4.3. 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 Company, free and clear
      of
      any liens, pledges, encumbrances, charges, agreements, options, claims or other
      arrangements or restrictions of any kind.

    

    4.4. Basic
      Corporate Records.
      The
      copies of the Articles of Incorporation of the Company (certified by the
      Secretary of State or other authorized official of the jurisdiction of
      incorporation), and the Bylaws of the Company, as the case may be (certified
      as
      of the date of this Agreement as true, correct and complete by the Company’s
      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 the Company, which shall be exhibited to the Purchaser between
      the date hereof and the Closing Date, contain true, correct and complete minutes
      and records of all meetings, proceedings and other actions of the shareholders,
      Board of Directors and committees of such Board of Directors of the Company,
      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,
      Board of Directors and committees of such Board of Directors of the
      Company.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    4.6. Subsidiaries
      and Affiliates.
      Any and
      all businesses, entities, enterprises and organizations in which the Company
      has
      any ownership, voting or profit and loss sharing percentage interest (the
“Subsidiaries”) are identified in Schedule 4.6 hereto, together with the
      Company’s interest therein. Unless the context requires otherwise or
      specifically designated to the contrary on Schedule 4.6 hereto, “Company” as
      used in this Agreement shall include all such Subsidiaries. Except as set forth
      in Section 4.6 or 4.31 or on Schedule 4.6, (i) the Company has 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 the Company has acquired from,
      or provided to, the Sellers or their affiliates any goods, properties or
      services, other than any such arrangements with VEBA,
      or
      its affiliates,
      (iii) there are no rights, privileges or advantages now enjoyed by the
      Company as a result of the ownership of the Company by the Sellers which, to
      the
      knowledge of the Sellers or the Company, 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 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 non-assessable, and, except
      as
      set forth on Schedule 4.6, are owned, of record and beneficially, by the
      Company, and on the Closing Date will be owned by the Company, 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.

    

    4.7. Consents.
      Except
      as set forth in Schedule 4.7, 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 Company can be operated by the
      Purchaser in the same manner after the Closing as heretofore operated by the
      Company, nor will the consummation of the transactions contemplated hereby
      result in creating, accelerating or increasing any liability of the
      Company.

    

    4.8. Financial
      Statements.
      The
      Sellers have 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 Company in accordance with
      generally accepted accounting principles (“GAAP”) consistently applied and
      fairly present the financial condition, assets, liabilities and results of
      operations of the Company as of the dates thereof and for the periods covered
      thereby:

    

    
      	 	 	
              the
                audited balance sheet of the Company as at December 31, 2006 and
                2007, and
                the related audited statements of operations, stockholder’s equity and of
                cash flows of the Company for the years then ended (such
                statements, including the related notes and schedules thereto, are
                referred to herein as the “Financial Statements”). 

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    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, and the financial
      statements for the interim periods 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 Sellers or the Company 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 Company as of December 31, 2007 is
      referred to as the “Balance Sheet” and December 31, 2007 is referred to as the
“Balance Sheet Date”.

    

    4.9. Records
      and Books of Account.
      Except
      as provided below, the records and books of account of the Company 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 on a basis consistent with internal books
      and
      records previously maintained by the Company and each of its Subsidiaries.
      Notwithstanding the foregoing, the internal books and records are maintained
      on
      a cash basis, utilizing a September 30 fiscal year end, and are not prepared
      in
      accordance with generally accepted accounting principles, and do not reflect
      all
      accruals which would be required by generally accepted accounting
      principles. Notwithstanding
      the foregoing, the Sellers have delivered, or will deliver prior to Closing,
      to
      the Purchaser copies of the following financial statements (which include all
      notes and schedules attached thereto) as
      set
      forth in Section 4.8 of this Agreement immediately above. 

    

    4.10. Absence
      of Undisclosed Liabilities.
      Except
      as and to the extent reflected or reserved against in the Company’s Financial
      Statements or disclosed in Schedule 4.10, there are no liabilities or
      obligations of the Company 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
      Company under any pension, health and welfare benefit plan, vacation plan or
      other plan of the Company, (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 Company, other than
      liabilities and contingent liabilities incurred in the ordinary course of
      business since the Balance Sheet Date consistent with the Company’s recent
      customary business practice, none of which is materially adverse to the
      Company.

    

    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

        
          

        

      

      
        
        

      

    

    (b) (i) The
      Company has timely filed all federal, state, local and foreign returns,
      estimates, information statements and reports (“Returns”) relating to Taxes
      required to be filed by the Company with any Tax authority. All such Returns
      are
      true, correct and complete in all respects. The Company has paid all Taxes
      shown
      to be due on such Returns. Except as listed on Schedule 4.11 hereto, the Company
      is not currently the beneficiary of any extensions of time within which to
      file
      any Returns. The Sellers and the Company 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 Company in the last three (3)
      years.

    

    (ii) The
      Company, 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.
      

    

    (iii) The
      Company has no unresolved delinquencies in the payment of any Tax nor is there
      any unsatisfied or unreserved Tax deficiency outstanding or assessed against
      the
      Company. The Company has not executed any unexpired waiver of any statute of
      limitations on or extending the period for the assessment or collection of
      any
      Tax.

    

    (iv) Except
      as
      set forth on Schedule 4.11, there is no dispute, claim, or proposed adjustment
      concerning any Tax liability of the Company either (A) claimed or raised by
      any Tax authority in writing or (B) based upon personal contact with any
      agent of such Tax authority, and 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
      Company which has not been satisfied. The Company is not a party to nor has
      the
      Company 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 Company have any reason to believe that any such notice
      will be received in the future. Within the last five years, neither the Internal
      Revenue Service nor any state or local taxation authority has audited any income
      tax return of the Company. The Company has not filed any requests for rulings
      with the Internal Revenue Service. No power of attorney has been granted by
      the
      Company or its Affiliates with respect to any matter relating to Taxes of the
      Company. There are no Tax liens of any kind upon any property or assets of
      the
      Company, except for inchoate liens for Taxes not yet due and
      payable.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (v) The
      Company has 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 the Company 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 Company 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 the Company 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
      Company has 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 Company.

    

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

    

    (ix) None
      of
      the Company’s 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 Company 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 Company, including the Financial
      Statements, and will be paid in accordance with their terms. 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

        
          

        

      

      
        
        

      

    

    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 (hereinafter
      “Fixed Assets”) of the Company currently being used in the conduct of its
      business, or included in determining the net book value of the Company on the
      Balance Sheet Date, together with any machinery or equipment that is leased
      or
      operated by the Company, are in fully serviceable working condition and repair.
      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 the Company are situated at its business premises
      and are currently used in its business. Schedule 4.14 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 Company is responsible (copies
      of all agreements relating thereto being attached to said Schedule 4.14), and
      all such property is in the Company’s actual possession and is in such condition
      that upon the return of such property in its present condition to its owner,
      the
      Company will not be liable in any amount to such owner. 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 Company 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 Company are set forth on Schedule 4.14 hereto. 

    

    4.15. Real
      Property Matters.
      The
      Company does not own any real property as of the date hereof and has 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 Company are described in Schedules
      4.14 and 4.16, are in full force and effect and 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 have not been assigned or encumbered. The Company has
      performed in all material respects the obligations required to be performed
      by
      it under all such leases to date and it is not in default in any material
      respect under any of said leases, except as set forth in Schedule 4.16, nor
      has
      it made any leasehold improvements required to be removed at the termination
      of
      any lease, except signs. No other party to any such lease is in material default
      thereunder. Except as noted on Schedule 4.16, none of the leases listed thereon
      require the consent of a third party in connection with the transfer of the
      Shares.  

    

    4.17. Patents,
      Software, Trademarks, Etc.
      The
      Company owns, 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 its business as now operated by it. 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 Company and applications for any thereof (hereinafter the “Intangibles”) are
      described or referenced in Schedule 4.17. Sellers hereby specifically
      acknowledge that all right, title and interest in and to all patents and
      software listed on Schedule 4.17 as patents owned by the Company are owned
      by
      the Company and that the ownership of such patents and software will be
      transferred as part of the Company to Purchaser as part of the transaction
      contemplated hereby. No officer, director, shareholder or employee of the
      Company 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 Company or related to the Business except
      as
      listed in Schedule 4.17.  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. The Company has not been charged with, nor has it infringed,
      nor
      to the Sellers’ actual 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 Sellers nor
      the Company have received any notice of conflict with or violation of the
      asserted rights in intangibles or trade secrets of others. The consummation
      of
      the transactions contemplated hereby will not alter or impair any rights of
      the
      Company in any such Intangibles or in any such permit, franchise or license,
      except as described in Schedule 4.17. The Intangibles and other like information
      and data are in such form and of such quality and will be maintained in such
      a
      manner that the Company can, following the Closing, 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 Company
      has
      the sole and exclusive right to use its corporate and trade names in the
      jurisdictions where it transacts business. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    4.18. Insurance
      Policies.
      There
      is set forth in Schedule 4.18 a list and brief description of all insurance
      policies on the date hereof held by the Company or on which it pays premiums,
      including, without limitation, life insurance and title insurance policies,
      which description includes the premiums payable by it thereunder. Schedule
      4.18
      also sets forth, in the case of any life insurance policy held by the Company,
      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
      Company 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 actual knowledge of the Sellers and the Company, 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 Sellers or of
      the
      Company.

    

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

    

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

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (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 Company, 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 insurance payments of the Company over the
      past five full fiscal years and the fiscal year to date, a schedule of claims
      by
      employees of the Company against the workers’ compensation fund or insurance
      policy 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.
      With respect to the foregoing information, the Sellers and Company are relying
      solely upon the information provided by their workers compensation insurance
      carrier and make no independent representation and warranty thereof.

    

    (iv) The
      name
      of all pensioned employees of the Company 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 any clients
      and
      business relationships of the Seller not contained in the regular business
      records of the Company.

    

    4.20. Lists
      of Contracts, Etc.
      There is
      included in Schedule 4.20 a list of the following items (whether written or
      oral) relating to the Company, 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 Company or affiliates relating to the
      Business;

    

    (iii) All
      contracts of the Company 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 Company, and (f) debts of others
      guaranteed by the Company.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (iv) All
      contracts that individually provide for aggregate future payments to or from
      any
      of the Company of $20,000 or more, to the extent not included in (i) through
      (iv) above;

    

    (v) All
      contracts of the Company 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;

    

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

    

    (vii) All
      other
      contracts of the Company 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, (i) all contracts, agreements and commitments
      of the Company set forth such schedules are valid, binding and in full force
      and
      effect, and (ii) neither the Company nor any 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, the sale
      of
      the Shares by the Sellers in accordance with this Agreement will not result
      in
      the termination of any contract, agreement or commitment of the Company set
      forth in such schedules, 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 Company resulting from the sale of the Shares by the Sellers. True and
      complete copies of the contracts, leases, licenses and other documents referred
      to in this Schedule 4.20 will be delivered to the Purchaser, certified by the
      Secretary or Assistant Secretary of the Company as true, correct and complete
      copies at the Closing.

    

    There
      are
      no pending disputes with customers or vendors of the Company 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 actual knowledge
      of
      Sellers and the Company, 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 Company
      after
      completion of the transactions contemplated by this Agreement.  

    

    4.21. Compliance
      With the Law.
      The
      Company is 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, the Company has not been and are not now charged with,
      or to the actual knowledge of the Sellers or the Company under investigation
      with respect to, any violation of any applicable law, regulation, order or
      requirement relating to any of the foregoing, nor, to the actual knowledge
      of
      Sellers or the Company after due inquiry, are there any circumstances that
      would
      or might give rise to any such violation. The Company has filed all reports
      required to be filed with any governmental, regulatory or administrative agency
      or authority.

    

    
      
        
        

      

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

    

    (i) There
      are
      no legal, administrative, arbitration or other proceedings or governmental
      investigations pending or, to the knowledge of Sellers, or the Company,
      threatened, against the Sellers or the Company, relating to the Business or
      the
      Company or its properties (including leased property), or the transactions
      contemplated by this Agreement, nor is there any basis actually known to the
      Sellers or the Company 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 Sellers or the Company
      relating to the Business or the Company the effect of which is to prohibit
      any
      business practice or the acquisition of any property or the conduct of any
      business by the Company or which limit or control or otherwise adversely affect
      its method or manner of doing business.

    

    (iii) 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 actual
      knowledge of the Sellers or the Company, threatened before any governmental
      or
      regulatory agency or authority or any court relating to employees of the
      Company.

    

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

    

    (i) Incurred
      any material obligation or liability (absolute, accrued, contingent or
      otherwise) or in connection with the performance of this Agreement, and any
      such
      obligation or liability incurred 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;

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (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 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; provided, however, that all net income through the date of the Closing
      less liabilities payable by the Company at Closing, will be paid to the Sellers
      as either compensation or salary;

    

    (viii) Authorized
      any capital expenditure for real estate or leasehold improvements, machinery,
      or
      equipment 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.

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    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 Company 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 the Company. With
      respect to any Employee Programs now or heretofore maintained by the Company,
      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 Company 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 actual knowledge of the Company or Sellers, threatened with
      respect to any such Employee Program. 

    

    (c) Except
      as
      set forth in Schedule
      4.24 attached
      hereto, neither the Company 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;

    

    (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);

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (iii) An
      entity
      is an “affiliate” of the Company for purposes of this Section 3.24 if it
      would have ever been considered a single employer with the Company under ERISA
      Section 4001(b) or part of the same “controlled group” as the Company 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. Intentionally
      Left Blank

    

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

    

    4.27. Absence
      of Certain Commercial Practices.
      Except
      as described on Schedule 4.27, neither the Company nor the Sellers 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 Company 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
      Company has, 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 Company are listed on Schedule 4.28 hereto.
      At the Closing, the Company 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, 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 Sellers 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 Company pursuant to the terms of, any law, regulation, order or other
      requirement or any contract binding upon the Company 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 Company 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.

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    4.29. Intentionally
      Left Blank.

    

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

    

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

    

    4.32 Patriot
      Act.
      The
      Company and the Sellers certify that neither the Company nor any of its
      Subsidiaries has been designated, and is not owned or controlled, by a
“suspected terrorist” as defined in Executive Order 13224. The Company and the
      Sellers hereby acknowledge that the Purchaser seeks to comply with all
      applicable laws concerning money laundering and related activities. In
      furtherance of those efforts, the Company and the Sellers hereby represent,
      warrant and agree that: (i) none of the cash or property that the Sellers has
      contributed or paid or will contribute and pay to the Company 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 Company 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 Sellers
      shall
      promptly notify the Purchaser if any of these representations ceases to be
      true
      and accurate regarding the Sellers, the Company or any of its Subsidiaries.
      The
      Sellers agrees to provide the Purchaser any additional information regarding
      the
      Company or any of its Subsidiaries that the Purchaser reasonably requests to
      ensure compliance with all applicable laws concerning money laundering and
      similar activities. 

    

    4.33 Intentionally
      Left Blank.

     

    4.34 Intentionally
      Left Blank.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    4.35. Disclosure.
      All
      statements contained in any schedule, certificate, opinion, instrument, or
      other
      document delivered by or on behalf of the Sellers or the Company pursuant hereto
      or in connection with the transactions contemplated hereby shall be deemed
      representations and warranties by the Sellers and the Company herein. No
      statement, representation or warranty by the Sellers or the Company 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 Company with full and fair disclosure
      concerning the Company, the Business, and the Company’s 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.

     

    5.2 Authority.

     

    (a) The
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated herein have been, or will prior to Closing be, duly
      and validly approved and acknowledged by all necessary corporate action on
      the
      part of the Purchaser.

    

    (b) The
      execution of this Agreement and the delivery hereof to the Sellers and the
      purchase contemplated herein have been, or will be prior to Closing, duly
      authorized by the Purchaser’s Board of Directors having full power and authority
      to authorize such actions.

    

    (c) Subject
      to any consents required under Section 4.7 above, the Purchaser and the Company
      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 Purchaser and constitutes a valid
      and binding obligation of the Sellers and the Company, enforceable in accordance
      with its terms.

    

    (d) Except
      as
      set forth in Schedule 5.2, 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 Purchaser is a party
      or
      by which it or any of them is bound, any charter, regulation, or bylaw provision
      of the Purchaser, or any decree, order, or rule of any court or governmental
      authority or arbitrator that is binding on the Purchaser in any
      way.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    5.3 Conflicts;
      Consents of Third Parties. 

     

    (a) The
      execution and delivery of this Agreement, the acquisition of the Shares by
      Purchaser and the consummation of the transactions herein contemplated, and
      the
      compliance with the provisions and terms of this Agreement, are not prohibited
      by the Articles of Incorporation or Bylaws of the Purchaser and will not
      violate, conflict with or result in a breach of any of the terms or provisions
      of, or constitute a default under, any court order, indenture, mortgage, loan
      agreement, or other agreement or instrument to which the Purchaser is a party
      or
      by which it is bound.

     

    (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 Purchaser Documents or the compliance by Purchaser with any
      of
      the provisions hereof or thereof.

     

    5.4. Consents.
      Except
      as set forth in Schedule 5.4, 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 Company, nor will the consummation of the transactions contemplated hereby
      result in creating, accelerating or increasing any liability of the
      Company.

    

    5.5 Compliance
      With the Law.
      The
      Purchaser is 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 5.5, the Purchaser has not been and are not now charged with,
      or to the actual knowledge of the Purchaser under investigation with respect
      to,
      any violation of any applicable law, regulation, order or requirement relating
      to any of the foregoing, nor, to the actual knowledge of the Purchaser after
      due
      inquiry, are there any circumstances that would or might give rise to any such
      violation. The Purchaser has filed all reports required to be filed with any
      governmental, regulatory or administrative agency or authority.

    

    5.6 Litigation.
      Except
      as
      specifically identified on Schedule 4.22:

    

    (i) There
      are
      no material legal, administrative, arbitration or other proceedings or
      governmental investigations pending or, to the knowledge of Purchaser,
      threatened, against the Purchaser, relating to the Purchaser's business,
      operations or its properties (including leased property), or the transactions
      contemplated by this Agreement, nor is there any basis actually known to the
      Purchaser for any such action.

    

    
      
        
        

      

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

     

    (iii) There
      are
      no Legal Proceedings pending or, to the best knowledge of the Purchaser,
      threatened that are reasonably likely to prohibit or restrain the ability of
      the
      Purchaser to enter into this Agreement or consummate the transactions
      contemplated hereby.

     

    5.7 Absence
      of Certain Commercial Practices.
      Except
      as described on Schedule 5.7, the Purchaser has not 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 Company 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.

    

    5.8 Licenses,
      Permits, Consents and Approvals.
      The
      Purchaser has, 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. At the
      Closing, the Purchaser 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 5.8 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 Sellers 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 Purchaser pursuant to the terms of, any law, regulation, order or other
      requirement or any contract binding upon the Purchaser 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 Company 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.

    

    5.9 Patriot
      Act.
      The
      Purchaser certifies that neither the Purchaser nor any of its Subsidiaries
      has
      been designated, and is not owned or controlled, by a “suspected terrorist” as
      defined in Executive Order 13224. The Purchaser hereby acknowledges that the
      Purchaser seeks to comply with all applicable laws concerning money laundering
      and related activities. In furtherance of those efforts, the Purchaser hereby
      represents, warrants and agrees that: (i) none of the cash or property that
      the
      Purchaser has contributed or paid or will contribute and pay to the Sellers
      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
      Purchaser or any of its Subsidiaries to the Sellers, to the extent that they
      are
      within the Purchaser's and/or its 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 Purchaser shall promptly notify the Sellers if any of these
      representations ceases to be true and accurate regarding the Purchaser or any
      of
      its Subsidiaries. The Purchaser agrees to provide the Sellers any additional
      information regarding the Purchaser or any of its Subsidiaries that the Sellers
      reasonably request to ensure compliance with all applicable laws concerning
      money laundering and similar activities.

    

    
      
        
        

      

      
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    5.10
      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.

     

    5.11
      Broker.

     

    The
      Purchaser has not retained any broker in connection with any transaction
      contemplated by this Agreement. Sellers 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.

     

    5.12
      Intentionally left blank. 

    
 

    ARTICLE
      VI

    COVENANTS

     

    6.1 Access
      to Information. 

     

    The
      Sellers and the Company 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 Company
      and its Subsidiaries and such examination of the books, records and financial
      condition of the Company and its 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 Sellers shall cooperate, and shall cause
      the
      Company and its 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
      Sellers 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 Company and its Subsidiaries, the Sellers shall cause the
      officers, employees, consultants, agents, accountants, attorneys (subject to
      any
      restrictions imposed by the attorney-client privilege) and other representatives
      of the Company and its Subsidiaries to cooperate fully with such representatives
      in connection with such review and examination. 

     

    
      
        
        

      

      
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    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, the Sellers shall, and shall cause the Company
      to:

     

    (i) Conduct
      the businesses of the Company 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 Company and (B) preserve its present relationship with Persons having
      business dealings with the Company;

     

    (iii) Maintain
      (A) all of the assets and properties of the Company in their current condition,
      ordinary wear and tear excepted and (B) insurance upon all of the properties
      and
      assets of the Company 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 Company 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 Company;
      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, the Sellers shall not, and shall cause the Company
      not
      to:

     

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

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    (v) (A)
      materially increase the annual level of compensation of any employee of the
      Company, (B) increase the annual level of compensation payable or to become
      payable by the Company to any of its executive officers,
      except
      as provided in Section 4.23(vii), above,
      (C)
      grant any unusual or extraordinary bonus, benefit or other direct or indirect
      compensation to any employee, director or consultant, except as provided in
      Section 4.23(vii), above, (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 Company 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 Company is a party
      or involving a director, officer or employee of the Company in his or her
      capacity as a director, officer or employee of the Company;  

     

    (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; 

     

    (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
      Company;

     

    (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 Company 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
      Company 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;

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    (xi) Permit
      the Company 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 Company to enter into or agree to enter into any merger or consolidation
      with, any corporation or other entity, and not 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
      Company to make any investments in or loans to, or pay any fees or expenses
      to,
      or enter into or modify any Contract with, the Sellers or any Affiliate of
      the
      Sellers; 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 Sellers in this Agreement or the
      Seller Documents untrue or incorrect in any material respect as of any time
      through and including the Effective Time.

     

    6.3 Consents.

     

    The
      Sellers and the Company shall use their best efforts, and the Purchaser shall
      cooperate with the Sellers and the Company, 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 Section 4.7 hereof; provided, however,
      that neither the Sellers, the Company nor the Purchaser shall be obligated
      to
      pay any consideration therefor to any third party from whom consent or approval
      is requested.

     

    6.4 Other
      Actions.

     

    Each
      of
      the Sellers, the Company 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.

     

    Through
      the earlier of the Closing or the date set forth in Section 3.2(a), above,
      the
      Sellers will not, and will not cause or permit the Company or any of the
      Company’s directors, officers, employees, representatives or agents
      (collectively, the "Representatives") to, directly or indirectly, (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
      Company 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
      Company 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 Sellers will inform the Purchaser in writing immediately following the
      receipt by Sellers, the Company or any Representative of any proposal or inquiry
      in respect of any Acquisition Transaction.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    6.6 Preservation
      of Records.

     

    Subject
      to Section 9.4(e) hereof (relating to the preservation of Tax records), the
      Sellers and the Purchaser agree that each of them shall preserve and keep the
      records held by it relating to the business of the Company 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 Sellers or the Purchaser or any of their
      Affiliates, income tax audits by any applicable governmental agency, or in
      order
      to enable the Sellers 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 Sellers, the Company 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 Company or the Sellers, 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. 

     

    6.8 Use
      of
      Name. 

     

    The
      Sellers hereby agrees that upon the consummation of the transactions
      contemplated hereby, the Purchaser and the Company shall have the sole right
      to
      the use of the name “California Investment Annuity Sales, Inc.”, and any
      derivation of the aforementioned names and the Sellers shall not, and shall
      not
      cause or permit any Affiliate to, use such name or any variation or simulation
      thereof.

     

    6.9 Non-Solicitation
      Agreements and Employment and Consulting
      Agreements. 

     

    On
      or
      prior to the Closing Date, each of Richard Kaplan and Anthony Delfino shall
      enter into non-solicitation agreements with the Purchaser, substantially in
      the
      form of agreements attached hereto as Exhibit 6.9 (the “Non-Solicitation
      Agreements”). In addition, Richard Kaplan and Anthony Delfino shall enter into
      an Employment Agreement or Consulting Agreement, respectively, with
      VEBA (the
      “Seller Agreements”). 

     

    
      
        
        

      

      
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    6.10 Financial
      Statements.

     

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

    

    6.11 Tax
      Matters.

     

    (a) Tax
      Periods Ending on or Before the Closing Date.
      The
      Sellers shall prepare or cause to be prepared and file or cause to be filed
      all
      Tax Returns for the Company for all Tax 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 Purchaser
      shall provide the Sellers access to all books and records of the Company
      necessary to prepare such Tax Returns. The Sellers shall permit the Company
      and
      the Purchaser to review and provide comments, if any, on each such Tax Returns
      described in the preceding sentence prior to filing. Unless the Purchaser or
      the
      Company provides comments to the Sellers, the Company shall deliver to the
      Sellers each such Return signed by the appropriate officer(s) of the Company
      for
      filing within twenty (20) days following the Sellers’ delivery to the Company
      and the Purchaser of any such Return. The Sellers shall deliver to the Company
      promptly after filing each such Return a copy of the filed Return and evidence
      of its filing. The Sellers 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
      Company provides comments to the Sellers and at the end of such twenty (20)
      day
      period the Company and the Sellers 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, but in no event after the due date of the Tax Returns, 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 Company and the Sellers (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. If the parties or the arbitrator have not resolved the
      dispute by the due date of the Tax Returns, the Sellers shall have the option
      to
      file such Returns, in the form prepared by Sellers, so as to avoid the late
      filing of such Returns; provided, however, following the filing of the Tax
      Returns, if such arbitrator determines that the Tax Returns were incorrect,
      the
      Sellers shall amend such Tax Returns at their own expense. 

    

    (b) Tax
      Periods Beginning After the Closing Date.
      The
      Company or the Purchaser shall prepare or cause to be prepared and file or
      cause
      to be filed any Returns of the Company for Tax periods that begin and end after
      the Closing Date. The Purchaser shall pay the costs and expenses incurred in
      the
      preparation and filing of such Tax Returns. The Purchaser or the Company, and
      not the Sellers, shall be responsible for all taxes relating to the operation
      of
      the Company after the Closing. 

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    (c) Refunds
      and Tax Benefits.
      Any Tax
      refunds that are received after the Closing Date by the Sellers (other than
      tax
      refunds received in connection with such Sellers’ individual tax Returns), the
      Purchaser or the Company, and any amounts credited against Tax to which the
      Sellers, the Purchaser or the Company become entitled, shall be for the account
      of the Company, and the Sellers shall pay over to the Company 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 Sellers, the Sellers shall pay such amount to the Company within fifteen
      (15) days after receipt or entitlement thereto.  

    

    (d) Cooperation
      on Tax Matters.

    

    (i) The
      Purchaser, the Company and the Sellers 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. 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
      Company, Purchaser and the Sellers agree (A) to retain all books and records
      with respect to Tax matters pertinent to the Company 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 Sellers, 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
      Company or the Sellers, as the case may be, shall allow the other party to
      take
      possession of such books and records.

    

    (ii) The
      Purchaser and the Sellers further agree, upon request, to use their commercially
      reasonable 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 (including, but not limited
      to, with respect to the transactions contemplated hereby).

    

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

    

    (e) IRC
      Section 338 Election.
      The
      Company shall not, and the Purchaser shall not cause or permit the Company,
      to
      file an election under Sections 338 or 338(h)(10) of the Internal Revenue Code
      with respect to the Company after the Closing. In the event the Company files
      such election, or the Purchaser permits or causes the Company to make such
      elections after the Closing, the Purchaser shall be responsible for all taxes
      attributable to such election and shall indemnify and hold harmless the Sellers
      from any such taxes, none of which shall be the responsibility of the Sellers
      and which are expressly excluded from the Sellers' representations, warranties
      and indemnifications regarding the tax liability of the Company or any reserves
      therefore. 

    

    
      
        
        

      

      
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    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 Sellers and the Company contained herein
      shall be true and correct as of the date hereof;

     

    (b) all
      representations and warranties of the Sellers and the Company contained herein
      qualified as to materiality shall be true and correct, and the representations
      and warranties of the Sellers and the Company contained herein not qualified
      as
      to materiality shall be true and correct in all material respects, at and 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
      Sellers and the Company 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
      each Sellers certifying as to the fulfillment of the conditions specified in
      Sections 7.1(a), 7.1(b) and 7.1(c) hereof;

     

    (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 since the Balance
      Sheet Date. Material Adverse Change shall mean, with respect to any person,
      (a)
      any material adverse change or effect on (i) the business, operations, assets
      (taken as a whole), liabilities (taken as a whole), condition (financial or
      otherwise), results of operations or prospects of such person or (ii) the right
      or ability to consummate any of the transactions contemplated hereby or (b)
      any
      event or condition which would with the passage of time, the giving or receipt
      of notice or the occurrence of any other action or event;

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (g) the
      Sellers and the Company shall have obtained all consents and waivers referred
      to
      in Section 4.7 hereof, 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 Sellers, the Company, 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 each director and
      officer of the Company;

     

    (j) 
      the
      Non-Solicitation Agreements shall have been executed; 

     

    (k)
      the
      Seller Agreements shall have been executed; and

    

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

     

    7.2 Conditions
      Precedent to Obligations of the Sellers and the Company. 

     

    The
      obligations of the Sellers and the Company 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 Sellers and the Company 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, at and 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;

     

    (d) the
      Sellers 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);

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    (e) no
      Legal
      Proceedings shall have been instituted or threatened or claim or demand made
      against the Sellers, the Company, 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
      Non-Solicitation Agreements shall have been executed by the Purchaser;
      and

     

    (g)
      All
      of the deliverables described in Section 8.2 have been delivered to the
      Sellers.

    

    ARTICLE
      VIII.

    DOCUMENTS
      TO BE DELIVERED

     

    8.1 Documents
      to be Delivered by the Sellers. 

     

    At
      the
      Closing, the Sellers 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
      Non-Solicitation Agreements and the Seller Agreements duly executed by all
      parties other than the Purchaser;

     

    (e) written
      resignations of each of the officers and directors of the Company;

     

    (f) certificate
      of good standing with respect to the Company issued by the Secretary of State
      of
      the State of incorporation, and for each state in which the Company 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 Sellers the following:

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    (a) The
      Purchase Price;

     

    (b)
      the
      Notes;

    

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

     

    (c) the
      Non-Solicitation and the Seller Agreements duly executed by the Company or
      the
      Purchaser; and 

     

    (d) such
      other documents as the Sellers shall reasonably request.

     

    

    ARTICLE
      IX

    INDEMNIFICATION

     

    9.1 Indemnification.

     

    (a) Subject
      to Section 9.2 hereof, Richard Kaplan and Anthony Delfino (the “Seller
      Indemnifying Parties”) hereby agree to jointly and severally indemnify and hold
      the Purchaser, the Company, 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 Company of every kind, nature and description, absolute
      or contingent, existing as against the Company 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 based upon, attributable to or resulting from the failure of any
      representation or warranty of the Seller Indemnifying Parties set forth in
      Section 4 hereof, or any representation or warranty contained in any certificate
      delivered by or on behalf of the Seller Indemnifying Parties pursuant to this
      Agreement, to be true and correct in all respects as of the date made;

     

    (iii) any
      and
      all losses, liabilities, obligations, damages, costs and expenses based upon,
      attributable to or resulting from the breach of any covenant or other agreement
      on the part of the Seller Indemnifying Parties under this Agreement;

     

    (iv) any
      and
      all notices, actions, suits, proceedings, claims, demands, assessments,
      judgments, costs, penalties and expenses, including reasonable attorneys' and
      other professionals' fees and disbursements (collectively, "Expenses") incident
      to any and all losses, liabilities, obligations, damages, costs and expenses
      with respect to which indemnification is provided hereunder (collectively,
      "Losses").

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

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

     

    (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
      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 Company from and after the
      Closing Date; 

     

    (iii) all
      debts, obligations and claims relating to the operations of the Company after
      the Closing Date; and

     

    (iv) 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)(ii) or
      Section 9.1(b)(i) 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”).

     

    The
      Seller's indemnification obligation hereunder shall be limited to the Purchase
      Price (as adjusted per Section 2.3(a) of this Agreement), and the Purchaser's
      initial recourse for any claims for indemnification hereunder shall be the
      then
      outstanding principal balance due under the Notes which shall be reduced pro
      rata amongst the Sellers. Purchaser shall have the right to offset against
      the
      amount due under the Notes the amount of any indemnification claims it has
      after
      satisfaction of all the procedures for indemnification set forth in this Article
      9. 

     

    9.3 Indemnification
      Procedures.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    (a) In
      the
      event that any Legal Proceedings shall be instituted or that any claim or demand
      ("Claim") shall be asserted by any Person other than a party hereto 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
      indemnified against hereunder. If the indemnifying party elects to defend
      against, negotiate, settle or otherwise deal with any Claim which relates to
      any
      Losses 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
      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 Claim, then the indemnifying party shall reimburse
      the indemnified party for the Expenses of defending such Claim upon submission
      of periodic bills. If the indemnified party is defending such Claim, the
      indemnified party may not settle such Claim without the prior consent of the
      indemnifying party. If the indemnifying party shall assume the defense of any
      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, an actual, present conflict exists between the indemnified party and
      the
      indemnifying party relating to the underlying Claim being asserted 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.

     

    (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
      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
      Sellers 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.

    
 

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    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 by the
Purchaser.

     

    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, and 4.24 which shall survive for
      periods coterminous with any applicable statutes of limitation) shall terminate
      unless within twenty-four (24) months after the Closing Date written notice
      of
      such claims is given to the Sellers or such actions are commenced.

     

    10.3 Expenses. 

     

    Except
      as
      otherwise provided in this Agreement, the Sellers 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 Company bear any
      of
      such costs and expenses which have not been paid prior to the Closing; provided,
      however, that the Company may pay, prior to the Closing, all expenses incurred
      by the Sellers 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; provided, however, following the payment of such expenses, there shall
      be cash on hand to pay all Company liabilities incurred prior to
      Closing.

     

    10.4 Specific
      Performance. 

     

    The
      Sellers and the Company acknowledge and agree 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 Sellers and
      the Company under this Agreement, including, without limitation, the Sellers’
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.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    10.5 Further
      Assurances. 

     

    The
      Sellers 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.

     

    The
      parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
      of
      any federal or state court located within the state of California 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.

     

    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 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 California.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    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, 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):

     

    
      	 	
              (a)

            	
              Purchaser:

            

    

    

    National
      Investment Managers Inc.

    485
      Metro
      Place South, Suite 275

    Dublin,
      Ohio 43017

    Attn:
      Steven Ross, CEO

    Phone:
      (614) 923-8822

    Facsimile:
      (614) 923-5242

    

    Copy
      to:

    

    Stephen
      M. Fleming, Esq.

    Law
      Offices of Stephen M. Fleming PLLC

    403
      Merrick Avenue, 2nd
      Floor

    East
      Meadow, New York 11554

    Phone:
      (516) 833-5034

    Facsimile:
      (516) 977-1209

    

    
      	 	
              (b)

            	
              Sellers
                and Companies:

            

    

    

    Richard
      L. Kaplan

    Anthony
      S. Delfino

    California
      Investment Annuity Sales, Inc.

    4640
      Admiralty Way

    Marina
      Del Rey, CA 90292

    Phone:
      (310) 577-1444

    Facsimile:
      (310) 821-1529 

    

    Copy
      to:

    

    Michael
      A. Vanic, Esq.

    Reish
      Luftman Reicher & Cohen

    11755
      Wilshire Blvd., Tenth Floor

    Los
      Angeles, CA 90025

    Phone:
      (310) 478-5656

    Facsimile: (310)
      478-5831

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    10.11 Severability. 

     

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

     

    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 either the Sellers 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; provided, however, that in any such assignment
      by
      Purchaser, all of the assignees obligations hereunder, including, but not
      limited to, the obligation due under the Notes shall be guaranteed by National
      Investment Managers Inc., a corporation organized under the laws of Florida.
      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.

     

    10.13 Arbitration.

     

    In
      the
      event of a dispute arising from this Agreement, the parties agree to try in
      good
      faith to resolve the dispute through mediation by selecting a third party to
      help them reach an agreement. If they are unable to resolve the dispute through
      mediation, within sixty (60) days from the date notice is first given by one
      party to the other as to the existence of such a dispute, they agree to submit
      to resolution by arbitration in accordance with the Commercial Arbitration
      Rules
      of the American Arbitration Association (the "Rules"). Any hearing under the
      Rules shall take place at Los Angeles, California in accordance with Rule 11
      of
      the Rules. The hearing shall be before one arbitrator in accordance with Rule
      17
      of the Rules. The provisions of Section 1283.05 of the California Code of Civil
      Procedure are incorporated into and made a part of this Agreement. Any award
      rendered by the Arbitrator pursuant to this Agreement and the Rules shall be
      enforceable in the Superior Court of the County of Los Angeles, in and for
      the
      State of California as the court having exclusive jurisdiction over such
      arbitration. Such arbitration shall be binding and final. IN AGREEING TO
      ARBITRATION, THE PARTIES ACKNOWLEDGE THAT IN THE EVENT OF A DISPUTE ARISING
      FROM
      THIS AGREEMENT, EACH PARTY IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED
      IN
      A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD ARE ACCEPTING THE USE OF
      ARBITRATION FOR RESOLUTION. 

     

     [intentionally
      blank]

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

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

    

    
      	 	
              NATIONAL
                INVESTMENT MANAGERS INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/Steven
                Ross

            
	 	
               

            	
              Name:
                Steven Ross

            
	 	
               

            	
              Title:
                CEO

            
	 	 	 
	 	
              CALIFORNIA
                INVESTMENT ANNUITY SALES, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/Anthony
                Delfino 

            
	 	
               

            	
              Name:
                Anthony Delfino

            
	 	
               

            	
              Title:
                President

            
	 	 	 
	 	
              Richard
                L. Kaplan and Hana E. Kaplan Inter Vivos Trust Agreement dated 1/29/97
                as
                amended and restated 1/10/03

            
	 	 	 
	 	
              /s/
                Richard I. Kaplan

            
	 	
              Name:
                Richard I. Kaplan

            
	 	
              Title:
                Trustee

            
	 	 	 
	 	 	 
	 	
              /s/
                Anthony Delfino

            
	 	
              Anthony
                Delfino

            
	 	 	 
	 	 	 
	 	
              /s/
                Richard Kaplan

            
	 	
              Richard
                Kaplan

            
	 	
              (personally,
                solely with respect to the indemnification obligations under Article
                IX)

            

    

     

    
      
        
        

      

      
        40

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