Document:

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

      This AMENDED AND RESTATED Registration Rights Agreement (this "Agreement")
is made and entered into as of November 30, 2005, by and between NATIONAL
INVESTMENT MANAGERS, INC., a Florida corporation (the "Company"), and Laurus
Master Fund, Ltd. (the "Purchaser").

      WHEREAS, the parties hereto are party to that certain Securities Purchase
Agreement, dated as of March 9, 2005, by and between the Company and the
Purchaser (as amended, modified or supplemented from time to time, the "March
Purchase Agreement") and that certain Registration Rights Agreement, dated as of
March 9, 2005, by and between the Company and the Purchaser, which was amended
by that certain Omnibus Amendment, dated as of August 2, 2005 (as amended, the
"March Registration Rights Agreement")

      WHEREAS, as of the date hereof, the Company has not fulfilled its
obligations to file a Registration Statement for the Registrable Securities (as
such terms are defined in the Registration Rights Agreement) or to have such
Registration Statement declared effective pursuant to the March Registration
Rights Agreement, and therefore seeks to amend and restate the March
Registration Rights Agreement on the terms set forth herein;

      WHEREAS, the parties hereto have entered into that certain Securities
Purchase Agreement, dated as of the date hereof, by and between the Purchaser
and the Company (as amended, modified or supplemented from time to time, the
"November Securities Purchase Agreement"), pursuant to which the Company has
agreed to issue 1,103,434 shares of the common stock of the Company, par value
$.001 per share (the "Shares");

      NOW, THEREFORE, the Company and the Purchaser hereby agree as follows:

      1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the November Securities Purchase Agreement, shall have the
meanings given such terms in the November Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

            "Commission" means the Securities and Exchange Commission.

            "Common Stock" means shares of the Company's common stock, par value
$0.001 per share.

            "Effectiveness Date" means (i) with respect to the initial
Registration Statement required to be filed hereunder, a date no later than
August 15, 2006 and (ii) with respect to each additional Registration Statement
required to be filed hereunder, a date no later than thirty (30) days following
the applicable Filing Date.

            "Effectiveness Period" shall have the meaning set forth in Section
2(a).

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor statute.

<PAGE>

            "Filing Date" means, (i) with respect to the initial Registration
Statement required to be filed hereunder, a date no later than fifteen (15) days
after the date of the Company's filing of its Annual Report on Form 10-KSB for
its fiscal year ended December 31, 2005 with the Commission, (ii) with respect
to any additional Registration Statement required to be filed hereunder
(including, without limitation, (x) with respect to shares of Common Stock
issuable to the Holder as a result of adjustments to the Fixed Conversion Price
or Exercise Price, as the case may be, made pursuant to the March Securities
Purchase Agreement, any Note, the Option or the Warrant or otherwise or (y) with
respect to the registration of the shares of Common Stock issuable upon
conversion of the portion of the Note released from the Restricted Account (as
defined in the Restricted Account Agreement)), thirty (30) days after the
occurrence such event or adjustment and (iii) with respect to shares of Common
Stock issuable upon the exercise of any Warrant issued after the date hereof,
the date which is thirty (30) days after the date of exercise of such Warrant.

            "Holder" or "Holders" means the Purchaser or any of its affiliates
or transferees to the extent any of them hold Registrable Securities.

            "Indemnified Party" shall have the meaning set forth in Section
5(c).

            "Indemnifying Party" shall have the meaning set forth in Section
5(c).

            "March Related Agreements" shall mean the "Related Agreements" as
such term is defined in the March Securities Purchase Agreement.

            "March Securities Purchase Agreement" shall have the meaning
provided above.

            "Note" shall have the meaning set forth in the March Securities
Purchase Agreement.

            "November Related Agreements" shall mean the "Related Agreements" as
such term is defined in the November Securities Purchase Agreement.

            "November Securities Purchase Agreement" shall have the meaning
provided above.

            "Option" has the meaning set forth in the March Securities Purchase
Agreement.

            "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

<PAGE>

            "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus. "Registrable Securities" means (i) the Shares, and (ii) the
shares of Common Stock (x) issuable upon the conversion of the portion of the
Note (y) issuable upon exercise of the Option and (y) issuable upon exercise of
the Warrants.

            "Registrable Securities" means (i) the Shares, and (ii) the shares
of Common Stock (x) issuable upon the conversion of the Note (y) issuable upon
exercise of the Option and (y) issuable upon exercise of the Warrants.

            "Registration Statement" means each registration statement required
to be filed hereunder, including the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

            "Rule 144" means Rule 144 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 415" means Rule 415 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 424" means Rule 424 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Securities Act" means the Securities Act of 1933, as amended, and
any successor statute.

             "Shares" shall have the meaning set forth in the November
Securities Purchase Agreement.

            "Trading Market" means any of the NASD OTCBB, NASDAQ SmallCap
Market, the Nasdaq National Market, the American Stock Exchange or the New York
Stock Exchange.

<PAGE>

            "Warrants" means, collectively, the Common Stock purchase warrants
issued pursuant to the March Securities Purchase Agreement, whether as of the
date thereof or thereafter.

      2. Registration.

            (a) On or prior to the applicable Filing Date the Company shall
      prepare and file with the Commission a Registration Statement covering the
      Registrable Securities for an offering to be made on a continuous basis
      pursuant to Rule 415. The Registration Statement shall be on Form SB-2
      (except if the Company is not then eligible to register for resale the
      Registrable Securities on Form SB-2, in which case such registration shall
      be on another appropriate form in accordance herewith). The Company shall
      cause such Registration Statement to become effective and remain effective
      as provided herein. The Company shall use its reasonable commercial
      efforts to cause such Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but in any event no later than the Effectiveness Date. The Company shall
      use its reasonable commercial efforts to keep such Registration Statement
      continuously effective under the Securities Act until the date which is
      the earlier date of when (i) all Registrable Securities have been sold or
      (ii) all Registrable Securities may be sold immediately without
      registration under the Securities Act and without volume restrictions
      pursuant to Rule 144(k), as determined by the counsel to the Company
      pursuant to a written opinion letter to such effect, addressed and
      acceptable to the Company's transfer agent and the affected Holders (the
      "Effectiveness Period").

            (b) If: (i) any Registration Statement is not filed on or prior to
      the applicable Filing Date; (ii) the respective Registration Statement is
      not declared effective by the Commission by the Effectiveness Date; (iii)
      after the respective Registration Statement is filed with and declared
      effective by the Commission, such Registration Statement ceases to be
      effective (by suspension or otherwise) as to all Registrable Securities to
      which it is required to relate at any time prior to the expiration of the
      Effectiveness Period (without being succeeded immediately by an additional
      registration statement filed and declared effective) for a period of time
      which shall exceed 30 days in the aggregate per year or more than 20
      consecutive calendar days (defined as a period of 365 days commencing on
      the date the Registration Statement is declared effective); or (iv) the
      Common Stock is not listed or quoted, or is suspended from trading on any
      Trading Market for a period of three (3) consecutive Trading Days
      (provided the Company shall not have been able to cure such trading
      suspension within 30 days of the notice thereof or list the Common Stock
      on another Trading Market); (any such failure or breach being referred to
      as an "Event," and for purposes of clause (i) or (ii) the date on which
      such Event occurs, or for purposes of clause (iii) the date which such 30
      day or 20 consecutive day period (as the case may be) is exceeded, or for
      purposes of clause (iv) the date on which such three (3) Trading Day
      period is exceeded, being referred to as "Event Date"), then until the

<PAGE>

      applicable Event is cured, the Company shall pay to each Holder an amount
      in cash, as liquidated damages and not as a penalty, equal to 1.5% for
      each thirty (30) day period (prorated for partial periods) on a daily
      basis of the sum of the original principal amount of the Note . While such
      Event continues, such liquidated damages shall be paid not less often than
      each thirty (30) days. Any unpaid liquidated damages as of the date when
      an Event has been cured by the Company shall be paid within three (3) days
      following the date on which such Event has been cured by the Company.

            (c) Within three business days of the Effectiveness Date, the
      Company shall cause its counsel to issue a blanket opinion in the form
      attached hereto as Exhibit A, to the transfer agent stating that the
      shares are subject to an effective registration statement and can be
      reissued free of restrictive legend upon notice of a sale by the Purchaser
      and confirmation by the Purchaser that it has complied with the prospectus
      delivery requirements, provided that the Company has not advised the
      transfer agent orally or in writing that the opinion has been withdrawn.
      Copies of the blanket opinion required by this Section 2(c) shall be
      delivered to the Purchaser within the time frame set forth above.

            (d) The Purchaser hereby confirms to the Company that the Purchaser
      has waived any and all liquidated damages arising out of the Company's
      inability to fulfill its obligations to file a registration statement, or
      to have such registration statement declared effective, pursuant to the
      March Registration Rights Agreement.

      3. Registration Procedures. If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the Securities Act, the Company will, as expeditiously as possible:

            (a) prepare and file with the Commission the Registration Statement
      with respect to such Registrable Securities, respond as promptly as
      possible to any comments received from the Commission, and use its best
      efforts to cause the Registration Statement to become and remain effective
      for the Effectiveness Period with respect thereto, and promptly provide to
      the Purchaser copies of all filings and Commission letters of comment
      relating thereto;

            (b) prepare and file with the Commission such amendments and
      supplements to the Registration Statement and the Prospectus used in
      connection therewith as may be necessary to comply with the provisions of
      the Securities Act with respect to the disposition of all Registrable
      Securities covered by the Registration Statement and to keep such
      Registration Statement effective until the expiration of the Effectiveness
      Period;

            (c) furnish to the Purchaser such number of copies of the
      Registration Statement and the Prospectus included therein (including each
      preliminary Prospectus) as the Purchaser reasonably may request to
      facilitate the public sale or disposition of the Registrable Securities
      covered by the Registration Statement;

<PAGE>

            (d) use its commercially reasonable efforts to register or qualify
      the Purchaser's Registrable Securities covered by the Registration
      Statement under the securities or "blue sky" laws of such jurisdictions
      within the United States as the Purchaser may reasonably request,
      provided, however, that the Company shall not for any such purpose be
      required to qualify generally to transact business as a foreign
      corporation in any jurisdiction where it is not so qualified or to consent
      to general service of process in any such jurisdiction;

            (e) list the Registrable Securities covered by the Registration
      Statement with any securities exchange on which the Common Stock of the
      Company is then listed;

            (f) immediately notify the Purchaser at any time when a Prospectus
      relating thereto is required to be delivered under the Securities Act, of
      the happening of any event of which the Company has knowledge as a result
      of which the Prospectus contained in such Registration Statement, as then
      in effect, includes an untrue statement of a material fact or omits to
      state a material fact required to be stated therein or necessary to make
      the statements therein not misleading in light of the circumstances then
      existing; and

            (g) on reasonable prior notice, make available for inspection by the
      Purchaser and any attorney, accountant or other agent retained by the
      Purchaser, all publicly available, non-confidential financial and other
      records, pertinent corporate documents and properties of the Company, and
      cause the Company's officers, directors and employees to supply all
      publicly available, non-confidential information reasonably requested by
      the attorney, accountant or agent of the Purchaser.

      4. Registration Expenses. All expenses relating to the Company's
compliance with Sections 2 and 3 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including reasonable counsel fees) incurred in connection with complying with
state securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and reasonable disbursements incurred
by, one counsel for the Holders (to the extent such counsel is required due to
Company's failure to meet any of its obligations hereunder), are called
"Registration Expenses". All selling commissions applicable to the sale of
Registrable Securities, including any fees and disbursements of any special
counsel to the Holders beyond those included in Registration Expenses, are
called "Selling Expenses." The Company shall only be responsible for all
Registration Expenses.

<PAGE>

      5. Indemnification.

            (a) In the event of a registration of any Registrable Securities
      under the Securities Act pursuant to this Agreement, the Company will
      indemnify and hold harmless the Purchaser, and its officers, directors and
      each other person, if any, who controls the Purchaser within the meaning
      of the Securities Act, against any losses, claims, damages or liabilities,
      joint or several, to which the Purchaser, or such persons may become
      subject under the Securities Act or otherwise, insofar as such losses,
      claims, damages or liabilities (or actions in respect thereof) arise out
      of or are based upon any untrue statement or alleged untrue statement of
      any material fact contained in any Registration Statement under which such
      Registrable Securities were registered under the Securities Act pursuant
      to this Agreement, any preliminary Prospectus or final Prospectus
      contained therein, or any amendment or supplement thereof, or arise out of
      or are based upon the omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the
      statements therein not misleading, and will reimburse the Purchaser, and
      each such person for any reasonable legal or other expenses incurred by
      them in connection with investigating or defending any such loss, claim,
      damage, liability or action; provided, however, that the Company will not
      be liable in any such case if and to the extent that any such loss, claim,
      damage or liability arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission so made in
      conformity with information furnished by or on behalf of the Purchaser or
      any such person in writing specifically for use in any such document.

            (b) In the event of a registration of the Registrable Securities
      under the Securities Act pursuant to this Agreement, the Purchaser will
      indemnify and hold harmless the Company, and its officers, directors and
      each other person, if any, who controls the Company within the meaning of
      the Securities Act, against all losses, claims, damages or liabilities,
      joint or several, to which the Company or such persons may become subject
      under the Securities Act or otherwise, insofar as such losses, claims,
      damages or liabilities (or actions in respect thereof) arise out of or are
      based upon any untrue statement or alleged untrue statement of any
      material fact which was furnished in writing by the Purchaser to the
      Company expressly for use in (and such information is contained in) the
      Registration Statement under which such Registrable Securities were
      registered under the Securities Act pursuant to this Agreement, any
      preliminary Prospectus or final Prospectus contained therein, or any
      amendment or supplement thereof, or arise out of or are based upon the
      omission or alleged omission to state therein a material fact required to
      be stated therein or necessary to make the statements therein not
      misleading, and will reimburse the Company and each such person for any
      reasonable legal or other expenses incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or
      action, provided, however, that the Purchaser will be liable in any such
      case if and only to the extent that any such loss, claim, damage or
      liability arises out of or is based upon an untrue statement or alleged
      untrue statement or omission or alleged omission so made in conformity
      with information furnished in writing to the Company by or on behalf of
      the Purchaser specifically for use in any such document. Notwithstanding
      the provisions of this paragraph, the Purchaser shall not be required to
      indemnify any person or entity in excess of the amount of the aggregate
      net proceeds received by the Purchaser in respect of Registrable
      Securities in connection with any such registration under the Securities
      Act.

<PAGE>

            (c) Promptly after receipt by a party entitled to claim
      indemnification hereunder (an "Indemnified Party") of notice of the
      commencement of any action, such Indemnified Party shall, if a claim for
      indemnification in respect thereof is to be made against a party hereto
      obligated to indemnify such Indemnified Party (an "Indemnifying Party"),
      notify the Indemnifying Party in writing thereof, but the omission so to
      notify the Indemnifying Party shall not relieve it from any liability
      which it may have to such Indemnified Party other than under this Section
      5(c) and shall only relieve it from any liability which it may have to
      such Indemnified Party under this Section 5(c) if and to the extent the
      Indemnifying Party is prejudiced by such omission. In case any such action
      shall be brought against any Indemnified Party and it shall notify the
      Indemnifying Party of the commencement thereof, the Indemnifying Party
      shall be entitled to participate in and, to the extent it shall wish, to
      assume and undertake the defense thereof with counsel satisfactory to such
      Indemnified Party, and, after notice from the Indemnifying Party to such
      Indemnified Party of its election so to assume and undertake the defense
      thereof, the Indemnifying Party shall not be liable to such Indemnified
      Party under this Section 5(c) for any legal expenses subsequently incurred
      by such Indemnified Party in connection with the defense thereof; if the
      Indemnified Party retains its own counsel, then the Indemnified Party
      shall pay all fees, costs and expenses of such counsel, provided, however,
      that, if the defendants in any such action include both the Indemnified
      Party and the Indemnifying Party and the Indemnified Party shall have
      reasonably concluded that there may be reasonable defenses available to it
      which are different from or additional to those available to the
      Indemnifying Party or if the interests of the Indemnified Party reasonably
      may be deemed to conflict with the interests of the Indemnifying Party,
      the Indemnified Party shall have the right to select one separate counsel
      and to assume such legal defenses and otherwise to participate in the
      defense of such action, with the reasonable expenses and fees of such
      separate counsel and other expenses related to such participation to be
      reimbursed by the Indemnifying Party as incurred.

            (d) In order to provide for just and equitable contribution in the
      event of joint liability under the Securities Act in any case in which
      either (i) the Purchaser, or any officer, director or controlling person
      of the Purchaser, makes a claim for indemnification pursuant to this
      Section 5 but it is judicially determined (by the entry of a final
      judgment or decree by a court of competent jurisdiction and the expiration
      of time to appeal or the denial of the last right of appeal) that such
      indemnification may not be enforced in such case notwithstanding the fact
      that this Section 5 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of the
      Purchaser or such officer, director or controlling person of the Purchaser
      in circumstances for which indemnification is provided under this Section
      5; then, and in each such case, the Company and the Purchaser will
      contribute to the aggregate losses, claims, damages or liabilities to
      which they may be subject (after contribution from others) in such
      proportion so that the Purchaser is responsible only for the portion
      represented by the percentage that the public offering price of its
      securities offered by the Registration Statement bears to the public
      offering price of all securities offered by such Registration Statement,
      provided, however, that, in any such case, (A) the Purchaser will not be
      required to contribute any amount in excess of the public offering price
      of all such securities offered by it pursuant to such Registration
      Statement; and (B) no person or entity guilty of fraudulent
      misrepresentation (within the meaning of Section 10(f) of the Act) will be
      entitled to contribution from any person or entity who was not guilty of
      such fraudulent misrepresentation.

<PAGE>

      6. Representations and Warranties.

            (a) The Common Stock of the Company is registered pursuant to
      Section 12(b) or 12(g) of the Exchange Act and, except with respect to
      certain matters which the Company has disclosed to the Purchaser on
      Schedule 4.21 to the March Securities Purchase Agreement and Schedule 4.21
      to the November Securities Purchase Agreement, the Company has timely
      filed all proxy statements, reports, schedules, forms, statements and
      other documents required to be filed by it under the Exchange Act. The
      Company has filed (i) its Annual Report on Form 10-K for its fiscal year
      ended December 31, 2004 and (ii) its Quarterly Report on Form 10-Q for the
      fiscal quarters ended March 31, 2005, June 30, 2005 and September 30, 2005
      (collectively, the "SEC Reports"). Each SEC Report was, at the time of its
      filing, in substantial compliance with the requirements of its respective
      form and none of the SEC Reports, nor the financial statements (and the
      notes thereto) included in the SEC Reports, as of their respective filing
      dates, contained any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary to make
      the statements therein, in light of the circumstances under which they
      were made, not misleading. The financial statements of the Company
      included in the SEC Reports comply as to form in all material respects
      with applicable accounting requirements and the published rules and
      regulations of the Commission or other applicable rules and regulations
      with respect thereto. Such financial statements have been prepared in
      accordance with generally accepted accounting principles ("GAAP") applied
      on a consistent basis during the periods involved (except (i) as may be
      otherwise indicated in such financial statements or the notes thereto or
      (ii) in the case of unaudited interim statements, to the extent they may
      not include footnotes or may be condensed) and fairly present in all
      material respects the financial condition, the results of operations and
      the cash flows of the Company and its subsidiaries, on a consolidated
      basis, as of, and for, the periods presented in each such SEC Report.

            (b) The Common Stock is listed for trading on the NASD OTCBB and
      satisfies all requirements for the continuation of such listing. The
      Company has not received any notice that its Common Stock will be delisted
      from the NASD OTCBB (except for prior notices which have been fully
      remedied) or that the Common Stock does not meet all requirements for the
      continuation of such listing.

<PAGE>

            (c) Neither the Company, nor any of its affiliates, nor any person
      acting on its or their behalf, has directly or indirectly made any offers
      or sales of any security or solicited any offers to buy any security under
      circumstances that would cause the offering of the Securities pursuant to
      the March Securities Purchase Agreement, the March Related Agreements, the
      November Securities Purchase Agreement and the November Related Agreements
      to be integrated with prior offerings by the Company for purposes of the
      Securities Act which would prevent the Company from selling the Common
      Stock pursuant to Rule 506 under the Securities Act, or any applicable
      exchange-related stockholder approval provisions, nor will the Company or
      any of its affiliates or subsidiaries take any action or steps that would
      cause the offering of such Securities to be integrated with other
      offerings.

            (d) The Warrants, the Option, the Note and the shares of Common
      Stock which the Purchaser may acquire pursuant to the Warrants, the Option
      and the Note are all restricted securities under the Securities Act as of
      the date of this Agreement. The Company will not issue any stop transfer
      order or other order impeding the sale and delivery of any of the
      Registrable Securities at such time as such Registrable Securities are
      registered for public sale or an exemption from registration is available,
      except as required by federal or state securities laws.

            (e) The Company understands the nature of the Registrable Securities
      issuable upon the conversion of the Note, the exercise of the Option and
      the exercise of the Warrant and recognizes that the issuance of such
      Registrable Securities may have a potential dilutive effect. The Company
      specifically acknowledges that its obligation to issue the Registrable
      Securities is binding upon the Company and enforceable regardless of the
      dilution such issuance may have on the ownership interests of other
      shareholders of the Company.

            (f) Except for agreements made in the ordinary course of business,
      there is no agreement that has not been filed with the Commission as an
      exhibit to a registration statement or to a form required to be filed by
      the Company under the Exchange Act, the breach of which could reasonably
      be expected to have a material and adverse effect on the Company and its
      subsidiaries, or would prohibit or otherwise interfere with the ability of
      the Company to enter into and perform any of its obligations under this
      Agreement in any material respect.

            (g) The Company will at all times have authorized and reserved a
      sufficient number of shares of Common Stock for the full conversion of the
      Note, the exercise of the Option and the exercise of the Warrants.

<PAGE>

      7. Miscellaneous.

            (a) Remedies. In the event of a breach by the Company or by a
      Holder, of any of their respective obligations under this Agreement, each
      Holder or the Company, as the case may be, in addition to being entitled
      to exercise all rights granted by law and under this Agreement, including
      recovery of damages, will be entitled to specific performance of its
      rights under this Agreement.

            (b) No Piggyback on Registrations. Except as and to the extent
      specified in Schedule 7(b) hereto, neither the Company nor any of its
      security holders (other than the Holders in such capacity pursuant hereto)
      may include securities of the Company in any Registration Statement other
      than the Registrable Securities, and the Company shall not after the date
      hereof enter into any agreement providing any such right for inclusion of
      shares in the Registration Statement to any of its security holders.
      Except as and to the extent specified in Schedule 7(b) hereto, the Company
      has not previously entered into any agreement granting any registration
      rights with respect to any of its securities to any Person that have not
      been fully satisfied.

            (c) Compliance. Each Holder covenants and agrees that it will comply
      with the prospectus delivery requirements of the Securities Act as
      applicable to it in connection with sales of Registrable Securities
      pursuant to the Registration Statement.

            (d) Discontinued Disposition. Each Holder agrees by its acquisition
      of such Registrable Securities that, upon receipt of a notice from the
      Company of the occurrence of a Discontinuation Event (as defined below),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the applicable Registration Statement until such Holder's
      receipt of the copies of the supplemented Prospectus and/or amended
      Registration Statement or until it is advised in writing (the "Advice") by
      the Company that the use of the applicable Prospectus may be resumed, and,
      in either case, has received copies of any additional or supplemental
      filings that are incorporated or deemed to be incorporated by reference in
      such Prospectus or Registration Statement. The Company may provide
      appropriate stop orders to enforce the provisions of this paragraph. For
      purposes of this Section 7(d), a "Discontinuation Event" shall mean (i)
      when the Commission notifies the Company whether there will be a "review"
      of such Registration Statement and whenever the Commission comments in
      writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the
      Holders); (ii) any request by the Commission or any other Federal or state
      governmental authority for amendments or supplements to such Registration
      Statement or Prospectus or for additional information; (iii) the issuance
      by the Commission of any stop order suspending the effectiveness of such
      Registration Statement covering any or all of the Registrable Securities
      or the initiation of any Proceedings for that purpose; (iv) the receipt by
      the Company of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening
      of any Proceeding for such purpose; and/or (v) the occurrence of any event
      or passage of time that makes the financial statements included in such
      Registration Statement ineligible for inclusion therein or any statement
      made in such Registration Statement or Prospectus or any document
      incorporated or deemed to be incorporated therein by reference untrue in
      any material respect or that requires any revisions to such Registration
      Statement, Prospectus or other documents so that, in the case of such
      Registration Statement or Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading.

<PAGE>

            (e) Piggy-Back Registrations. If at any time during the
      Effectiveness Period there is not an effective Registration Statement
      covering all of the Registrable Securities and the Company shall determine
      to prepare and file with the Commission a registration statement relating
      to an offering for its own account or the account of others under the
      Securities Act of any of its equity securities, other than on Form S-4 or
      Form S-8 (each as promulgated under the Securities Act) or their then
      equivalents relating to equity securities to be issued solely in
      connection with any acquisition of any entity or business or equity
      securities issuable in connection with stock option or other employee
      benefit plans, then the Company shall send to each Holder written notice
      of such determination and, if within fifteen days after receipt of such
      notice, any such Holder shall so request in writing, the Company shall
      include in such registration statement all or any part of such Registrable
      Securities such holder requests to be registered to the extent the Company
      may do, subject to customary underwriter cutbacks applicable to all
      holders of registration rights and subject to obtaining any required
      consent of any selling stockholder(s) to such inclusion under such
      registration statement; provided, however, that if securities are being
      registered for the account of persons or entities as well as the
      Purchaser, such reduction shall not represent a greater fraction of the
      number of Registrable Securities intended to be offered by the Purchaser
      than the fraction of similar reductions imposed on such other persons or
      entitites.

            (f) Amendments and Waivers. The provisions of this Agreement,
      including the provisions of this sentence, may not be amended, modified or
      supplemented, and waivers or consents to departures from the provisions
      hereof may not be given, unless the same shall be in writing and signed by
      the Company and the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart
      from the provisions hereof with respect to a matter that relates
      exclusively to the rights of certain Holders and that does not directly or
      indirectly affect the rights of other Holders may be given by Holders of
      at least a majority of the Registrable Securities to which such waiver or
      consent relates; provided, however, that the provisions of this sentence
      may not be amended, modified, or supplemented except in accordance with
      the provisions of the immediately preceding sentence.

            (g) Notices. Any notice or request hereunder may be given to the
      Company or the Purchaser at the respective addresses set forth below or as
      may hereafter be specified in a notice designated as a change of address
      under this Section 7(g). Any notice or request hereunder shall be given by
      registered or certified mail, return receipt requested, hand delivery,
      overnight mail, Federal Express or other national overnight next day
      carrier (collectively, "Courier") or telecopy (confirmed by mail). Notices
      and requests shall be, in the case of those by hand delivery, deemed to
      have been given when delivered to any party to whom it is addressed, in
      the case of those by mail, deemed to have been given three (3) business
      days after the date when deposited in the mail, in the case of a Courier,
      the next business day following timely delivery of the package with the
      Courier, and, in the case of a telecopy, when confirmed. The address for
      such notices and communications shall be as follows:

<PAGE>

            If to the Company:         National Investment Managers, Inc.
                                       830 Third Avenue
                                       14t Floor
                                       New York, New York 10022
                                       Attention:  Chief Financial Officer
                                       Facsimile:  212 922 2081

                                       with a copy to:
                                       Cohen Tauber Spievack & Wagner LLP
                                       420 Lexington Avenue
                                       Suite 2400
                                       New York, NY 10170
                                       Attention:  Adam Stein, Esq.
                                       Facsimile:  212 586 5095

            If to a Purchaser:         To the address set forth
                                       under such Purchaser name on the
                                       signature pages hereto.

            If to any other Person
            who is then the            To the address of such Holder as it
            registered Holder:         appears in the stock transfer books
                                       of the Company

      or such other address as may be designated in writing hereafter in
      accordance with this Section 7(g) by such Person.

            (h) Successors and Assigns. This Agreement shall inure to the
      benefit of and be binding upon the successors and permitted assigns of
      each of the parties and shall inure to the benefit of each Holder. The
      Company may not assign its rights or obligations hereunder without the
      prior written consent of each Holder. Each Holder may assign their
      respective rights hereunder in the manner and to the Persons as permitted
      under the March Securities Purchase Agreement, the November Securities
      Purchase Agreement and the Note.

<PAGE>

            (i) Execution and Counterparts. This Agreement may be executed in
      any number of counterparts, each of which when so executed shall be deemed
      to be an original and, all of which taken together shall constitute one
      and the same Agreement. In the event that any signature is delivered by
      facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile
      signature were the original thereof.

            (j) Governing Law. All questions concerning the construction,
      validity, enforcement and interpretation of this Agreement shall be
      governed by and construed and enforced in accordance with the internal
      laws of the State of New York, without regard to the principles of
      conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement shall be commenced exclusively
      in the state and federal courts sitting in the City of New York, Borough
      of Manhattan. Each party hereto hereby irrevocably submits to the
      exclusive jurisdiction of the state and federal courts sitting in the City
      of New York, Borough of Manhattan for the adjudication of any dispute
      hereunder or in connection herewith or with any transaction contemplated
      hereby or discussed herein, and hereby irrevocably waives, and agrees not
      to assert in any Proceeding, any claim that it is not personally subject
      to the jurisdiction of any such court, that such Proceeding is improper.
      Each party hereto hereby irrevocably waives personal service of process
      and consents to process being served in any such Proceeding by mailing a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute
      good and sufficient service of process and notice thereof. Nothing
      contained herein shall be deemed to limit in any way any right to serve
      process in any manner permitted by law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and all right to trial by jury in any legal proceeding arising out of or
      relating to this Agreement or the transactions contemplated hereby. If
      either party shall commence a Proceeding to enforce any provisions of this
      Agreement, then the prevailing party in such Proceeding shall be
      reimbursed by the other party for its reasonable attorneys fees and other
      costs and expenses incurred with the investigation, preparation and
      prosecution of such Proceeding.

            (k) Cumulative Remedies. The remedies provided herein are cumulative
      and not exclusive of any remedies provided by law.

            (l) Severability. If any term, provision, covenant or restriction of
      this Agreement is held by a court of competent jurisdiction to be invalid,
      illegal, void or unenforceable, the remainder of the terms, provisions,
      covenants and restrictions set forth herein shall remain in full force and
      effect and shall in no way be affected, impaired or invalidated, and the
      parties hereto shall use their reasonable efforts to find and employ an
      alternative means to achieve the same or substantially the same result as
      that contemplated by such term, provision, covenant or restriction. It is
      hereby stipulated and declared to be the intention of the parties that
      they would have executed the remaining terms, provisions, covenants and
      restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

            (m) Headings. The headings in this Agreement are for convenience of
      reference only and shall not limit or otherwise affect the meaning hereof.

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

<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Amended & Restated
Registration Rights Agreement as of the date first written above.

NATIONAL INVESTMENT MANAGERS INC.       LAURUS MASTER FUND, LTD.

By:                                     By:
         -----------------------------          -------------------------------
Name:                                   Name:
         -----------------------------          -------------------------------
Title:                                  Title:
         -----------------------------          -------------------------------

                                        Address for Notices:
                                        c/o Laurus Capital Management, LLC
                                        825 Third Avenue - 14th Floor
                                        New York, NY  10022
                                        Attention:  Eugene Grin
                                        Facsimile:  212-541-4434

<PAGE>

                                    EXHIBIT A

                                [Month __, 2005]

[Continental Stock Transfer
   & Trust Company
Two Broadway
New York, NY  10004
Attn:  William Seegraber]

Re:   National Investment Managers, Inc. Registration
      Statement on Form SB-2 Ladies and Gentlemen:

      As counsel to National Investment Managers, Inc., a Florida corporation
(the "Company"), we have been requested to render our opinion to you in
connection with the resale by the individuals or entitles listed on Schedule A
attached hereto (the "Selling Stockholders"), of an aggregate of [amount] shares
(the "Shares") of the Company's Common Stock.

      A Registration Statement on Form SB-2 under the Securities Act of 1933, as
amended (the "Act"), with respect to the resale of the Shares was declared
effective by the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus dated [date]. We understand, and assume without independent
investigation, that the Shares are to be offered and sold in the manner
described in the Prospectus.

      Based upon the foregoing, upon request by the Selling Stockholders at any
time while the registration statement remains effective, it is our opinion that
the Shares have been registered for resale under the Act and new certificates
evidencing the Shares upon their transfer or re-registration by the Selling
Stockholders may be issued without restrictive legend. We will advise you if the
registration statement is not available or effective at any point in the future.

                                    Very truly yours,

                                    [Company counsel]

<PAGE>

                                   Schedule A
Selling Stockholder                                              Shares
                                                              Being OfferedTHIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO NATIONAL INVESTMENT MANAGERS INC.
THAT SUCH REGISTRATION IS NOT REQUIRED.

                                SECURED TERM NOTE

      FOR VALUE RECEIVED, NATIONAL INVESTMENT MANAGERS INC., a Florida
corporation (the "Borrower"), hereby promises to pay to LAURUS MASTER FUND,
LTD., c/o M&C Corporate Services Limited, P.O. Box 309 GT, Ugland House, South
Church Street, George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the
"Holder") or its registered assigns or successors in interest, on order, the sum
of Nine Million Two Hundred Thousand Dollars ($9,200,000), together with any
accrued and unpaid interest thereon, on November 30, 2009 (the "Maturity Date")
if not sooner paid. The original principal amount of this Note is hereinafter
referred to as the "Original Principal Amount", and, the principal amount from
time to time outstanding as adjusted pursuant to Section 1.1.(b) hereof, shall
be referred to as the "Principal Amount". .

      Capitalized terms used herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "Purchase Agreement").

      The following terms shall apply to this Secured Term Note (this "Note"):

                                    ARTICLE I
                             INTEREST & AMORTIZATION

      1.1 Interest Rate. Subject to Section 5.6 hereof, interest payable on the
outstanding Principal Amount of this Note from time to time outstanding shall be
calculated on the basis of a 360 day year and shall accrue at a rate per annum
(the "Interest Rate") equal to seventeen and one-half percent (17.5%) per annum,
as follows:

      (a) Interest in the amount of ten percent (10%) per annum (the "10%
Interest Tranche") shall accrue but not be payable during the period commencing
on the date hereof and ending on November 30, 2005. The 10% Interest Tranche
shall be payable monthly, in arrears, commencing on December 1, 2005 and on the
first day of each consecutive calendar month thereafter (each, a "Repayment
Date") and on the Maturity Date, whether by acceleration or otherwise or, in the
event of the redemption of all or any portion of the Principal Amount, accrued
interest on the amount so redeemed shall be paid on the date of redemption.

                                    1 of 8
<PAGE>

      (b) Interest in the amount of seven and one-half percent (7.5%) per annum
(the "7.5% Interest Tranche") shall accrue but not be payable during the period
commencing on the date hereof and ending on November 30, 2005. The 7.5% Interest
Tranche shall be payable monthly, in arrears, commencing on December 1, 2005 and
on each Repayment Date and on the Maturity Date, whether by acceleration or
otherwise or, in the event of the redemption of all or any portion of the
Principal Amount, accrued interest on the amount so redeemed shall be paid on
the date of redemption. Notwithstanding the foregoing, the Borrower may elect,
in lieu of paying the 7.5% Interest Tranche on a given Repayment Date, to add
the amount of the 7.5% Interest Tranche that is due on such Repayment Date to
the Principal Amount (such added amount, the "7.5% Interest Amount"). If the
Borrower elects to add the 7.5% Interest Amount to the Principal Amount
outstanding on a given Repayment Date, then the Borrower shall give written
notice to the Holder of such election, which notice shall be received by the
Holder no later than three (3) business days prior to such Repayment Date.

      1.2 Minimum Monthly Principal Payments. Amortizing payments of the
outstanding Principal Amount of this Note shall begin on June 1, 2006 and shall
recur on each succeeding Repayment Date thereafter until the Principal Amount
has been repaid in full On each Repayment Date, the Borrower shall make payments
to the Holder in the amount of $219,047.62 (the "Monthly Principal Amount"),
together with any accrued and unpaid interest then due on such portion of the
Amortizing Principal Amount plus any and all other amounts which are then owing
under this Note that have not been paid (the Monthly Principal Amount, together
with such accrued and unpaid interest and such other amounts, collectively, the
"Monthly Amount");

       Any Principal Amount, together with any accrued and unpaid interest and
any and all other unpaid amounts that are then owing by the Borrower or its
subsidiaries under this Note, the Purchase Agreement and/or any other Related
Agreement that remains outstanding on the Maturity Date shall be due and payable
on the Maturity Date.

                                   ARTICLE II
                               OPTIONAL PREPAYMENT

      2.1 Optional Redemption of Principal Amount. The Borrower will have the
option of prepaying the outstanding Principal Amount ("Optional Redemption"), in
whole or in part, by paying to the Holder a sum of money equal to (i) one
hundred percent (100%) of the Principal Amount to be redeemed, together with
accrued but unpaid interest thereon and (ii) any and all other sums due, accrued
or payable to the Holder arising under this Note, the Purchase Agreement or any
Related Agreement (the preceding clauses (i) and (ii), collectively, the
"Redemption Amount") on the Amortizing Redemption Payment Date (as defined
below). The Borrower shall deliver to the Holder a notice of redemption (the
"Notice of Redemption") specifying the date for such Optional Redemption (the
"Redemption Payment Date"), which date shall be not less than seven (7) business
days after the date of the Notice of Redemption (the "Redemption Period"). On
the Redemption Payment Date, the Redemption Amount shall be paid in good funds
to the Holder.

      2.2 Mandatory Redemption. The total outstanding Principal Amount, together
with any accrued and unpaid interest and any and all other unpaid amounts that
are then owing by Borrower and its subsidiaries to Holder under this Note, the
Purchase Agreement and/or any Related Agreement shall be due and payable on the
Maturity Date.

                                    2 of 8
<PAGE>

                                   ARTICLE III
                             [INTENTIONALLY OMITTED]

                                   ARTICLE IV
                                EVENTS OF DEFAULT

        Upon the occurrence and continuance of an Event of Default beyond any
applicable grace period, the Holder may make all sums of principal, interest and
other fees then remaining unpaid hereon and all other amounts payable hereunder
immediately due and payable. In the event of such an acceleration, the amount
due and owing to the Holder shall be one hundred twenty percent (120%) of the
outstanding principal amount of the Note (plus accrued and unpaid interest and
fees, if any) (the "Default Payment"). The Default Payment shall be applied
first to any fees due and payable to Holder pursuant to this Note, the Purchase
Agreement or the Related Agreements, then to accrued and unpaid interest due on
the Note and then to outstanding principal balance of the Note.

      The occurrence of any of the following events set forth in Sections 4.1
through 4.10, inclusive, is an "Event of Default":

      4.1 Failure to Pay Principal, Interest or other Fees. The Borrower fails
to pay when due any installment of principal, interest or other fees hereon in
accordance herewith, or the Borrower fails to pay when due any amount due under
any of the Obligations, as such term is defined in the Master Security Agreement
dated as of March 10, 2005, as amended, modified and reaffirmed by that certain
Reaffirmation and Ratification Agreement and Amendment, dated as of the date
hereof (the "Reaffirmation Agreement", and such security agreement, as amended,
the "Master Security Agreement") or under the Indebtedness, as such term is
defined in the Stock Pledge Agreement dated as of March 7, 2005, as amended,
modified and reaffirmed by the Reaffirmation Agreement (the "Stock Pledge
Agreement") or under any other promissory note issued by Borrower to the Holder,
and in any such case, such failure shall continue for a period of three (3) days
following the date upon which any such payment was due.

      4.2 Breach of Covenant. The Borrower breaches any covenant or any other
term or condition of this Note or the Purchase Agreement in any material
respect, or the Borrower or any of its Subsidiaries breaches any covenant or any
other term or condition of any Related Agreement in any material respect and,
any such case, such breach, if subject to cure, continues for a period of thirty
(30) days after the occurrence thereof.

      4.3 Breach of Representations and Warranties. Any representation or
warranty made by the Borrower in this Note or the Purchase Agreement, or by the
Borrower or any of its Subsidiaries in any Related Agreement, shall, in any such
case, be false or misleading in any material respect on the date that such
representation or warranty was made or deemed made.

      4.4 Receiver or Trustee. The Borrower or any of its Subsidiaries shall
make an assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

                                    3 of 8
<PAGE>

      4.5 Judgments. Any money judgment, writ or similar final process shall be
entered or filed against the Borrower or any of its Subsidiaries or any of their
respective property or other assets for more than $100,000, and shall remain
unvacated, unbonded or unstayed for a period of thirty (30) days.

      4.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Borrower or any
of its Subsidiaries and, in the case of any such proceeding instituted against
the Borrower or any of its Subsidiaries, shall not be vacated or dismissed
within sixty (60) days.

      4.7 Stop Trade. An SEC stop trade order or Principal Market trading
suspension of the Common Stock shall be in effect for five (5) consecutive days
or five (5) days during a period of ten (10) consecutive days, excluding in all
cases a suspension of all trading on a Principal Market, provided that the
Borrower shall not have been able to cure such trading suspension within thirty
(30) days of the notice thereof or list the Common Stock on another Principal
Market within sixty (60) days of such notice. The "Principal Market" for the
Common Stock shall include the NASD OTC Bulletin Board, NASDAQ SmallCap Market,
NASDAQ National Market System, American Stock Exchange, or New York Stock
Exchange (whichever of the foregoing is at the time the principal trading
exchange or market for the Common Stock).

      4.8 Default Under Related Agreements or Other Agreements. The occurrence
and continuance of any Event of Default (as defined in the Purchase Agreement or
any Related Agreement) or any event of default (or similar term) under any other
indebtedness of the Company and/or any of its Subsidiaries that equals or
exceeds $25,000 in outstanding principal amount in the aggregate for all such
indebtedness.

      4.9 Change in Control. (i) Any "Person" or "group" (as such terms are
defined in Sections 13(d) and 14(d) of the Exchange Act, as in effect on the
date hereof) is or becomes the "beneficial owner" (as defined in Rules 13(d)-3
and 13(d)-5 under the Exchange Act), directly or indirectly, of 35% or more on a
fully diluted basis of the then outstanding voting equity interest of the
Borrower (other than a "Person" or "group" that beneficially owns 35% or more of
such outstanding voting equity interests of the Company on the date hereof) or
(ii) the Board of Directors of the Borrower shall cease to consist of a majority
of the Board of Directors of the Borrower on the date hereof (or directors
appointed by a majority of the Board of Directors in effect immediately prior to
such appointment).

                                    4 of 8
<PAGE>

                           DEFAULT RELATED PROVISIONS

      4.10 Default Interest Rate. Following the occurrence and during the
continuance of an Event of Default, the Borrower shall pay additional interest
on this Note in an amount equal to two percent (2%) per month, and all
outstanding obligations under this Note, including unpaid interest, shall
continue to accrue such additional interest from the date of such Event of
Default until the date such Event of Default is cured or waived.

      4.1 Cumulative Remedies. The remedies under this Note shall be cumulative.

                                    ARTICLE V
                                  MISCELLANEOUS

      5.1 Failure or Indulgence Not Waiver. No failure or delay on the part of
the Holder hereof in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

      5.2 Notices. Any notice herein required or permitted to be given shall be
in writing and shall be deemed effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal business hours of the recipient, if not, then on the next business day,
(c) five business days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one business day after deposit
with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the
Borrower at the address provided in the Purchase Agreement executed in
connection herewith, and to the Holder at the address provided in the Purchase
Agreement for such Holder, with a copy to John E. Tucker, Esq., 825 Third
Avenue, 14th Floor, New York, New York 10022, facsimile number (212) 541-4434,
or at such other address as the Borrower or the Holder may designate by ten days
advance written notice to the other parties hereto. A Notice of Conversion shall
be deemed given when made to the Borrower pursuant to the Purchase Agreement.

      5.3 Amendment Provision. The term "Note" and all reference thereto, as
used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or
supplemented, and any successor instrument issued pursuant to Section 3.5
hereof, as it may be amended or supplemented.

      5.4 Assignability. This Note shall be binding upon the Borrower and its
successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements of the Purchase Agreement. This Note shall not be assigned by the
Borrower without the consent of the Holder.

      5.5 Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the State of
New York in New York County. Both parties and the individual signing this Note
on behalf of the Borrower agree to submit to the jurisdiction of such courts.

                                    5 of 8
<PAGE>

The prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs. In the event that any provision of this
Note is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision
of this Note. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Borrower
in any other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court in favor of the Holder.

      5.6 Maximum Payments. Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the
Borrower.

      5.7 Security Interest and Guarantee. Pursuant to the terms of the Master
Security Agreement dated and the Stock Pledge Agreement, the Holder has been
granted a security interest (i) in certain assets of the Borrower and its
Subsidiaries The obligations of the Borrower under this Note are guaranteed by
certain Subsidiaries of the Borrower pursuant to the Subsidiary Guaranty dated
as of March 10, 2005, as amended, modified and reaffirmed by the Reaffirmation
Agreement.

      5.8 Construction. Each party acknowledges that its legal counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against the other.

                                    6 of 8
<PAGE>

      5.9 Cost of Collection. If default is made in the payment of this Note,
the Borrower shall pay to Holder reasonable costs of collection, including
reasonable attorney's fees.

      [Balance of page intentionally left blank; signature page follows.]

                                    7 of 8
<PAGE>

      IN WITNESS WHEREOF, the Borrower has caused this Note to be signed in its
name effective as of this 30th day of November, 2005.

                                          NATIONAL INVESTMENT MANAGERS INC.

                                          By:________________________________
                                             Name:
                                             Title:

WITNESS:

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

                                    8 of 8

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