Document:

EX-10.5

EXHIBIT 10.5

EMPLOYMENT AGREEMENT

          This Employment Agreement (“Agreement”) made and entered between Wood Asset Management, Inc.
(the “Company”) and John W. Fisher (“Executive”) on this the ninth day of June, 2008.

          WHEREAS, the Company is the wholly-owned subsidiary of Titanium Asset Management Corp.(“TiAM”)
and it is likely that at some time in the future there will be a merger or other business
combination between the Company and TiAM (the “Merger”);

          WHEREAS, the Company is engaged in the business of providing diversified investment
management counseling, advisory and related services to, among others, pension plans, and
other entities and individual investors (collectively, the “Business”);

          WHEREAS, the Company desires to employ and secure the services of Executive and Executive
desires to be employed by the Company on the terms and conditions set forth herein; and

          WHEREAS, as a part of the Executive’s duties the Executive will be in contact with clients or
customers of the Company (“Company Clients”) and develop valuable relationships with such Company
Clients.

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good
and valuable consideration, the parties agree as follows:

     1. Title; Capacity. The Company hereby agrees to employ Executive and Executive hereby
agrees to be employed by Company upon the terms set forth in this Agreement, in the capacity of
Chief Executive Officer. Executive shall perform and have such duties and responsibilities as are
consistent with such position, including but not limited to the following:

     a. The gathering of assets from high net worth investors and the management of those
assets.

     b. To assist in developing and maintaining broker-dealer relationships and supporting
institutional sales efforts.

     c. To develop and implement a business plan to develop TiAM’s high net worth business,
which would focus on but not be limited to the Company’s office in Sarasota, Florida.

     d. To develop and enhance the profile of both the Company and TiAM through media
events.

     e. To serve as a member of TiAM’s Group Management Committee.

The Executive shall report to the Chief Executive Officer of TiAM, or his designee, and shall be
subject to the supervision of, and shall have such authority as is delegated by, the Board of

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Directors of the Company (“Board”). Executive agrees to devote his full and undivided time and
attention during normal business hours to the diligent and faithful performance of his designated
duties to the Company.

The Executive acknowledges that upon the Merger his title may be modified but he shall retain
oversight of the activities of the Sarasota office and any other offices that report to that
office. The terms of this Agreement shall continue without regard to such Merger.

     2. Term. The Company agrees to employ the Executive, and the Executive agrees to be
employed by the Company for an indefinite term beginning on June 16, 2008, which term and this
Agreement may be terminated by either party at any time upon three months prior written notice (the
“Term”). Notwithstanding the foregoing, the Company may terminate Executive for “cause”, which is
defined as fraudulent or dishonest conduct causing harm to the business of the Company, violation
of the terms and conditions of this Agreement, the commission of a felony or a willful and
substantial failure to perform reasonable duties assigned to him by the Company, after prior
written notice and a reasonable opportunity to cure.

     3. Compensation and Benefits.

     a. Compensation. As compensation for services to be rendered by Executive
during the Term, the Executive’s annual base salary shall be $150,000.00 payable in
equal monthly installments.

     b. Revenue Bonus. In addition to the Executive’s base salary he shall be
eligible for a Revenue Bonus based on the revenues which the parties mutually agree were
received by the Company or any other subsidiary of TiAM during the Term from assets which
were introduced by, won or otherwise generated by the Executive;

     i. The first $500,000.00 of revenues — 50% of the revenues

     ii. The next $500,000.00 of revenues — 25% of the revenues, and

     iii. Thereafter — 10% of the revenues.

     iv. The amount of Revenue Bonus will be agreed and paid quarterly based on the
revenues received by the Company in the preceding quarter

     v. For purposes of this Agreement, when calculating the Executive’s Revenue
Bonus, revenues shall be reduced by the amount of any commissions which are paid to
any external third-party.

     c. Minimum Revenue Bonus. The Executive shall be paid a minimum Revenue
Bonus during each of the first two years of the term;

     i. For the first 12 months — $175,000.00 payable in equal monthly installments; and

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     ii. For the second 12 months — $100,000.00 payable in equal monthly installments.

     d. Reimbursement of Certain Expenses. During the first twelve (12) months of the Term
the Executive shall be reimbursed for his reasonable travel expenses between his home in Virginia
and the Company’s office in Sarasota, Florida, up to $3,000.00 per month (a maximum of $36,000.00).
In the event that the Executive’s reimbursed expenses in any month are less than $3,000.00 then the
difference shall be carried forward to the remainder of the twelve (12) month period and be
available to reimburse the Executive for those expenses that he incurs in excess of $3,000.00 per
month. The amount of this travel allowance may be reviewed by the parties in light of increases in
the cost of air travel occurring after the date of this Agreement. In addition during the first
ninety (90) days of the Term the Executive shall be reimbursed for his reasonable meals, lodging,
and automobile rental while in Sarasota, Florida, up to $5,000.00. The Executive shall promptly
provide the Company with reasonable substantiation of all expenses.

     e. Reimbursement of Business Expenses. The Executive shall be reimbursed for all
reasonable and customary business expenses that he incurs in the performance of his duties
hereunder, including but not limited all license and registration fees, provided that such
reimbursements shall be subject to, and in accordance with, any expense reimbursement policies
and/or expense documentation requirements of the Company that may be in effect from time to time.

     f. Stock Awards. Certain of the common stock of TiAM is held in escrow (the “Founders’
Stock”) until June, 2010. At the time that the Company has determined that annualized revenues paid
to the Company (or any other subsidiary of TiAM), from assets which the parties have mutually
agreed were introduced to, won or otherwise generated by the Executive (less the amount of any
commissions which are paid to any external third-party) have reached $250,000.00 per year,
arrangements shall be made to designate 50,000 shares of TiAM common stock as deliverable to the
Executive if he is still employed by the Company or its successor at the time said escrow
terminates. Additionally, should TiAM establish a long-term incentive stock option plan, the terms
of such plan will provide for the Executive’s participation.

     g. Fringe Benefits. Subject to the terms and conditions of each plan, Executive will
also be entitled to participate in any Company 401(k) plan, group health and life insurance
programs and the TiAM’s Senior Executive Savings Plan.

     h. Vacation and Personal Time-Off. The Executive shall be entitled to twenty (20) days
of paid vacation and such personal and sick leave as the Executive and the Company shall from time
to time mutually agree. No more than five (5) unused vacation days and/or paid time-off will be,
(i) carried forward to subsequent years or (ii) paid out upon the termination of the Executive’s
employment or of this Agreement.

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     4. Conflicts of Interest. The Executive agrees that during the Term, he will not
receive any salary, income, remuneration, expense or other financial gain, either directly or
indirectly, from any client or other organization or business that provides services, goods,
materials or supplies to the Company or its clients or competes, directly or indirectly, with
the Business; provided, however, that the foregoing shall not prohibit Executive from owning a
passive interest in any business entity.

     5. Full-Time Employment. The Company agrees that during the Term, he will not
have any other employment either full-time or part-time without apprising the Chairman of the
Company and receiving the Company’s written permission for such other employment.

     6. Restrictive Covenants.

     a. As a result of Executive’s employment hereunder and his anticipated
substantial interaction with officers, Executives, Company Clients and subcontractors of the
Company, Executive will become intimately familiar with many of the confidential affairs of
the Company, including information about services, Company Clients, Executives,
subcontractors, costs, profits, markets, sales, trade secrets, trade names and other
business ideas, marketing methods, Company Clients or other customer lists, computer
programs, resource materials and certain other information not readily available to the
public relating to the Company (hereinafter, including such matters, but excluding any such
matters which (i) were known to Executive at the beginning of the Term, (ii) have been or
hereafter are independently developed or disclosed by a third party or (iii) which otherwise
are or become a part of the public domain, in any case other than as a result of a violation
of this Section 6 or other covenant of confidentiality, collectively referred to as
“confidential matters”), Executive agrees that during the Term and for a two year period
thereafter:

     i. to keep secret all confidential matters and not to disclose them to
anyone outside of the Company or otherwise use his knowledge of confidential matters
for his own personal benefit or to the detriment of Company, except with the prior
written consent of the Company (or a person duly authorized thereby) or as otherwise
required by law to be disclosed; and

     ii. all memoranda, notes, records, reports, papers, programs and other
documents (and all copies thereof) relating to confidential matters, some of which
may be prepared by him, and all objects associated therewith (such as models and
samples) in any way obtained by him shall be the Company’s sole property, as the case
may be. This shall include, but is not limited to, documents and objects concerning
any service, process or technique sold, used, developed, investigated or considered
by the Company. The Executive shall not, except for the Company’s sole use or
benefit, copy or duplicate any of the aforementioned documents or objects, nor remove
them from the Company’s facilities, nor use any information concerning them except
for the Company’s sole benefit. The Executive agrees that he will deliver all of the
aforementioned documents and objects, if any, that may be in his possession or under
his control to the Company

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upon termination of the Term and at the Company’s request or at any other time
upon the Company’s request (or upon the request of a person duly authorized by
the Company).

     b. Except as set forth below in subpart 6(b)(iii), Executive agrees that for a
period of one (1) year after the termination of his employment hereunder he will not
directly or indirectly engage in any Competitive Activities (as hereinafter defined).
The term “Competitive Activities” as used herein shall mean:

     i. directly or indirectly soliciting or servicing, or assisting any one
else to solicit or service any entities which, at the end of the Term are Company
Clients or were Company Clients at any time within one (1) year prior to the end of
the Executive’s employment (or during the Term if the employment is less than one
(1) year) or any prospective client of the Company on the Company’s active prospect
list and with whom Executive had direct contact during the one year period prior to
the end of his employment Term (or during the Term if his employment is less than
one year); or

     ii. offering employment to an employee of the Company or an individual
who had been employed by the Company at any time within one (1) year prior to the
termination of the Executive’s employment (or during the Term if the employment is
less than one (1) year) or induce or attempt to induce any employee to leave the
employment of the Company without the prior written consent of the Company;

provided, however, for purposes at paragraph (b)(i) above, the term “Competitive
Activities” shall not apply to Company Clients who had a relationship with Executive prior to the
date of this Agreement or who are relatives of the Executive.

     iii. Anything in this Agreement to the contrary notwithstanding, the
provisions of subpart 6(b)(i) shall not apply and the Executive shall not be thereby
bound if his employment hereunder is terminated by the Company without cause (as
defined in Section 2) or the Company experiences a change in control. Change in
control shall mean either; (x) a sale by TiAM of all or substantially all of its
assets; (y) the sale or exchange of one hundred percent (100%) of the common stock
of TiAM to a third party in a single or multiple but related transactions; or (z) a
merger, consolidation or other business combination of TiAM with another entity such
that the shareholders of TiAM immediately prior to such business combination own
less than one hundred percent (100%) of the common stock of the post combination
entity.

     c. If Executive commits a breach, or overtly threatens to commit a breach, of
any of the provisions of this Section 6 or Sections 4 or 5 above, the Company shall
have the following nonexclusive rights and remedies:

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     i. the right and remedy to have the provisions of Section 6 and
Sections 4 and 5 above of this Agreement specifically enforced by any court having
equity jurisdiction, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Company and that money
damages will not provide an adequate remedy to the Company; and

     ii. the right and remedy to require Executive to account for and pay
over to the Company all compensation, profits, monies, accruals, increments or
other benefits (hereinafter collectively referred to as the “Benefits”) derived or
received thereby as the result of any transactions constituting a breach of any of
the provisions of this Section 6 and/or Sections 4 or 5 above, Executive hereby
agreeing to account for and pay over the Benefits to the Company.

Each of the rights and remedies enumerated above shall be independent of the other, and shall be
severally enforceable, and all of such rights and remedies shall be in addition to, and not in lieu
of, any other rights and remedies available to the Company at law or in equity.

     d. If any covenant contained in this Section 6, or any part thereof, is hereafter
construed to be invalid or unenforceable, the same shall be given full effect, without
regard to the invalid portions.

     e. If any covenant contained in this Section 6, or any part thereof, is held to
be unenforceable because of the duration of such covenant or the Company Clients, the
parties agree that the court making such determination shall have the power to reduce
the
duration and/or Company Clients covered by such covenant and, in its reduced form, said
covenant shall then be enforceable.

     f. If any action, suit or other proceedings at law or in equity is brought to
enforce the covenants contained in this Section 6 or Sections 4 or 5 above, or to
obtain
money damages for the breach thereof, and such action results in the award of a
judgment
for money damages or in the granting of any injunction in favor of the Company, all
expenses (including reasonable attorneys’ fees and expenses) of the Company in such
action, suit or other proceeding shall (on demand of the Company) be paid by the
Executive; provided, that, if in any such action, suit or proceeding, the
Executive is the
prevailing party, then the Company shall, upon demand, pay all expenses (including

reasonable attorneys’ fees) incurred by the Executive in connection therewith.

     7. Entire Agreement. This Agreement contains the entire agreement between the
parties hereto with respect to matters contemplated herein and supersedes all prior agreements
and understandings among the parties hereto relating to such matters.

     8. Assignments. This Agreement shall inure to the benefit of and shall be binding
upon the Company, its successors or assigns and the Executive. Neither this Agreement nor any
interest herein may be assigned by Executive.

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     9. Applicable Law. Other than as set forth in Section 6(f) hereof, this Agreement
shall be deemed a contract under, and for all purposes shall be construed in accordance with,
the
internal laws, without regard to conflict of laws and principles, of the State of Florida.

     10. Amendment or Modification; Waiver. No provision of this Agreement may be
amended or waived unless such amendment or waiver is authorized by the Company (or a person
duly authorized thereby) and is in writing and signed by the Executive and by an officer of
the
Company thereunto duly authorized. Except as otherwise specifically provided in this
Agreement, no waiver by either party hereto of any breach by the other party hereto of any
conditions or provisions in this Agreement shall be deemed a waiver of a similar or dissimilar
provision or condition at the same time or at any prior or subsequent time.

     11. Severability. In the event that any provision or portion of this Agreement shall
be
determined to be invalid or unenforceable for any reason, the remaining provisions or portions
of
this Agreement shall be unaffected thereby and shall remain in full force and effect to the
fullest
extent permitted by law.

     12. Counterparts. This Agreement may be executed in two (2) or more counterparts,
each of which shall be an original, but both of which together shall constitute one and the
same
instrument.

     13. Attorney Fees. In the event the Company or the Executive, whichever the case
may be, is forced to, and does successfully, enforce this Agreement in any court of law, the
party
against whom this Agreement is enforced shall reimburse and indemnify the enforcing party for
the actual costs incurred by the enforcing party in said enforcement, including, but not
limited to
attorneys’ fees at the actual hourly rate customarily charged by the enforcing party’s counsel
for
the time reasonably spent in enforcement activity. The Company shall pay the reasonable
attorney’s fees incurred by Executive in connection with this Agreement.

          Executed by a duly authorized officer of the Company and by the Executive effective as of
the day and year first above written.

	 	 	 	 	 	 	 
	/s/ Nigel Wightman

	 	 
	 	/s/ John W. Fisher
	 	 
	 

	 	 	 	 	 	 
	Nigel Wightman

	 	 	 	John W. Fisher (“Executive”)	 	 
	CEO of the Company and on behalf of
Titanium Asset Management Corp.

(only as to Section 3(f))

	 	 	 	Date: June, 9th, 2008	 	 

Date: June, 9th, 2008

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EXHIBIT 10.6

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made this 31st day of March, 2008, between
Robert E. Kelly, Jr. (“Executive”) and National Investment Services, Inc. (the “Company”), a
Wisconsin corporation. Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Purchase Agreement (as defined below).

PRELIMINARY STATEMENT

          Pursuant to that certain Stock Purchase Agreement, dated as of February 28, 2008 (the
“Purchase Agreement”), by and among Titanium Asset Management Corp., a Delaware corporation (the
“Purchaser”), NIS Holdings Inc., a Wisconsin corporation (the “Seller”), the Company and the
Shareholders, the Seller agreed to sell to the Purchaser, and the Purchaser agreed to purchase from
the Seller, all of the issued and outstanding shares of capital stock of the Company (the
“Transactions”).

          Pursuant to Sections 7.1(e) and 8.1(f) of the Purchase Agreement, it is a condition to the
obligation of the Purchaser to consummate the Transactions that the Company and Executive enter
into this Agreement. Executive acknowledges that the Purchaser would not have entered into the
Purchase Agreement or agreed to consummate the Transactions but for the covenants and agreements of
Executive contained herein.

          NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements set
forth herein, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

          1. Term of Employment. The Company hereby agrees to employ Executive, and Executive
hereby accepts employment with the Company, upon the terms set forth in this Agreement, for the
period commencing on the date hereof (the “Commencement Date”) and ending on the third anniversary
of the Commencement Date, unless sooner terminated in accordance with the provisions of Section 4
or extended as hereinafter provided (such period, as extended or terminated, the “Term”).
Beginning on the third anniversary of the Commencement Date, and on each anniversary of the
Commencement Date thereafter, the Term shall extend for an additional one-year period from the
then-current expiration date of the Term unless at least 60 days prior to the subsequent
anniversary date either Executive or the Company provides written notice to the other party
electing not to extend the Term.

          2. Title; Capacity. The Company will employ Executive, and Executive agrees to work
for the Company, as its Chief Executive Officer to perform the duties and responsibilities inherent
in such position and such other duties and responsibilities as the Company shall from time to time
assign to Executive. Executive shall report to the Board of Directors of the Company (the “Board”)
and shall be subject to the supervision of, and shall have such authority

 

 

as is delegated by, the Board, which authority shall be sufficient to perform Executive’s
duties hereunder. Executive shall devote Executive’s full time and reasonable best efforts in the
performance of the foregoing services; provided, that Executive may accept other board
memberships or other charitable organizations that are not in conflict with Executive’s primary
responsibilities and obligations to the Company. The Company shall provide Executive with a
private office in the Company’s Chicago, Illinois facility and a parking space in a parking lot
adjacent to such facility.

          3. Compensation and Benefits.

          3.1 Salary. As of the Commencement Date, the Company shall pay Executive a base
salary of $400,000 per year, payable in accordance with the Company’s customary payroll practices
(the “Base Salary”). The Base Salary shall be subject to annual review and adjustment as
determined by the Board, in its sole discretion, on each anniversary of the Commencement Date
during the Term and “Base Salary” shall thereafter refer to such adjusted amount.

          3.2 Bonus. The Board shall, in its sole discretion, determine whether Executive
shall be entitled to an annual bonus in excess of Base Salary with respect to any year during the
Term.

          3.3 Fringe Benefits. Executive shall be entitled to participate in all benefit
programs that the Company establishes and makes available to its executive employees, if any, to
the extent that Executive’s position, tenure, salary, age, health and other qualifications make
Executive eligible to participate, including, but not limited to, health care plans, life
insurance plans, disability insurance, retirement plans, and all other benefit plans from time to
time in effect.

          3.4 Reimbursement of Certain Expenses. Executive shall be reimbursed for such
reasonable business expenses incurred by Executive in the performance of the Executive’s duties
hereunder and approved by the Board, subject to the submission by Executive of documentation in
such form and consistent with such procedures as the Board may from time to time require. Such
reimbursable expenses shall include telephone and cell phone costs and home computer and internet
costs.

          4. Termination of Employment Period. Executive’s employment shall terminate upon the
occurrence of any of the following:

          4.1 Expiration of the Agreement Term. The expiration of the Term.

          4.2 Termination for Cause. The termination of this Agreement by the Company for
Cause. For the purposes of this Agreement, “Cause” shall be deemed to exist upon the occurrence
of any of the following:

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               (a) a good faith finding by the Company that Executive has engaged in dishonesty, willful
misconduct, insubordination, use of alcohol, or gross negligence that is materially injurious to
the Company;

               (b) use of illegal drugs by Executive;

               (c) intentional failure by Executive to comply with applicable laws or governmental
regulations with respect to the Company’s operations or the performance of Executive’s duties;

               (d) Executive’s conviction or entry of nolo contendere to any felony or crime involving
moral turpitude, dishonesty, fraud, theft or embezzlement of Company property; or

               (e) Executive’s material breach of his obligations under this Agreement, which breach, if
curable, has not been cured by Executive within 30 days after he shall have received written
notice from the Company stating with reasonable specificity the nature of such breach.

          Prior to any termination for Cause, the Company shall give Executive written notice (“Notice
of Termination for Cause”) of its intention to terminate Executive’s employment for Cause, which
Notice shall set forth in reasonable detail (i) the specific conduct of Executive that the Company
considers constitutes Cause and the specific provision(s) of this Agreement on which the Company
relies and (ii) the date, time and place of the Special Board Meeting for Termination. Such Notice
of Termination for Cause must be provided by the Company within no more than sixty (60) days of the
Company becoming aware of the event that it believes constitutes Cause. For purposes of this
Agreement, a “Special Board Meeting for Termination” means a meeting of the Board of Directors of
Purchaser called and held specifically for the purpose of considering the Executive’s termination
for Cause, which meeting must take place not less than ten (10) and not more than twenty (20)
Business Days after Executive receives the Notice of Termination for Cause. Executive, together
with counsel, shall be given an opportunity to be heard at the Special Board Meeting for Cause.
Executive’s termination for Cause shall be effective when and if a resolution is duly adopted at
the Special Board Meeting for Termination stating that, in the good faith opinion of Purchaser’s
Board of Directors, Executive is guilty of the conduct described in the Notice of Termination for
Cause, and that such conduct constitutes Cause under this Agreement.

          4.3 Termination by the Company Without Cause or by Executive for Good Reason. At
the election of the Company, without Cause, at any time upon 30 days’ prior written notice to
Executive or by Executive for Good Reason (as defined below).

          4.4 Death or Disability. Thirty days after the death or determination of
disability of Executive. As used in this Agreement, the determination of “disability” shall
occur when Executive, due to a physical or mental disability, for a period of 90 days, whether
or not such days are consecutive, during any 360-day period, is unable to perform the

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services contemplated under this Agreement, with or without reasonable accommodations, in
substantially the manner and to the extent required hereunder prior to the commencement of such
disability.

          4.5 Voluntary Termination by Executive. At the election of Executive upon 90 days’
prior written notice to the Company.

          5. Effect of Termination.

          5.1 Termination for Cause, at the Election of Executive, Upon Expiration of the Term or
Upon Executive’s Death or Disability.. If Executive’s employment is terminated for Cause, by
the voluntary election of Executive or upon the expiration of the Term, then the Company shall
have no further obligations under this Agreement other than to pay to Executive any accrued but
unpaid salary and reimburse Executive for any reimbursable expenses through the last day of
Executive’s actual employment by the Company. If Executive’s employment is terminated due to
Executive’s death or disability, then, as soon as practicable following Executive’s “separation
from service” (within the meaning of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), but in no event later than March 15 of the year following the year in which
Executive’s separation from service occurs, the Company shall pay to Executive or his estate, as
the case may be, Executive’s Base Salary through the end of the month during which Executive’s
employment was terminated.

          5.2 Termination by the Company Without Cause or by Employee for Good Reason. In the
event that Executive’s employment is terminated by the Company without Cause or by Executive for
Good Reason, following Executive’s separation from service and commencing with the payroll period
immediately following the Release Deadline (as defined below), the Company shall pay to Executive
the annual Base Salary then in effect for twelve (12) months on a regular payroll basis;
provided, that if Executive’s employment is so terminated during the first twelve (12)
months of the Term (such initial twelve (12)-month period, the “Initial Period”), the Company
shall pay Executive the annual Base Salary then in effect for the remainder of the Initial Period
and an additional twelve (12) months thereafter. In addition, the Company shall continue its
contributions toward Executive’s health care, dental, disability and life insurance benefits on
the same basis as immediately prior to the date of termination, except as provided below, for the
same length of time as it continues payment to Executive of Base Salary pursuant to this Section
5.2. Notwithstanding the foregoing, the Company shall not be required to provide any health
care, dental, disability or life insurance benefit otherwise receivable by Executive if Executive
is actually covered or becomes covered by an equivalent benefit (at the same cost to Executive,
if any) from another source. Any such benefit made available to Executive shall be reported to
the Company. In order to be eligible to receive the payments described in this Section 5.2,
Executive must execute in favor of the Company and not thereafter revoke the release agreement
substantially in the form annexed hereto as Exhibit A within thirty (30) calendar days
following Executive’s separation from service (the “Release Deadline”).

          5.3 Withholding. Notwithstanding any other provision with respect to the timing of
payments under Section 5.2, if, at the time of the Executive’s separation from

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service, Executive is deemed to be a “specified employee” (within the meaning of Section
409A of the Code) of the Company, then only to the extent necessary to comply with the
requirements of Section 409A of the Code, any payments to which Executive may become entitled
under Section 5.2 which are subject to Section 409A of the Code (and not otherwise exempt from
its application) will be withheld until the first business day of the seventh month following the
date of separation from service (or, if earlier, until the date of Executive’s death), at which
time Executive shall be paid an aggregate amount equal to six months of payments otherwise due to
Executive under the terms of Section 5.2, as applicable. After the first business day of the
seventh month following the date of termination and continuing each month thereafter, Executive
shall be paid the regular payments otherwise due to Executive in accordance with the terms of
Section 5.2, as thereafter applicable.

          5.4 Good Reason. As used in this Agreement, “Good Reason” means, without
Executive’s written consent, (a) the assignment to Executive of duties inconsistent in any
material respect with the duties of an officer of the Company; (b) a material reduction in Base
Salary or other benefits or (c) relocation of Executive’s place of business to a location greater
than 25 miles from Executive’s place of business on the date hereof; provided, that
notice of termination for Good Reason must be provided by Executive to the Company within 30 days
of Executive becoming aware of the event constituting Good Reason. Notwithstanding the
occurrence of any of events enumerated in this paragraph, an event shall not be deemed to
constitute Good Reason if, within 30 days after the giving by Executive of notice of the
occurrence or existence of an event that Executive believes constitutes Good Reason, the Company
has fully corrected such event.

          5.5 Parachute Payments. In the event that the payments and benefits provided for in
this Agreement and the payments and/or benefits provided to, or for the benefit of, Executive
under any other employer plan or agreement (such payments or benefits are hereinafter
collectively referred to as the “Benefits”) (i) constitute “parachute payments” within the
meaning of Section 280G of the Code and (ii) but for this Section 5.5, would be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Benefits shall be
either:

               (a) delivered in full, or

               (b) delivered as to such lesser extent which would result in no portion of such Benefits being
subject to the Excise Tax (such reduced amount is hereinafter referred to as the “Limited Amount”),

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Executive on an after-tax basis, of
the greatest amount of Benefits, notwithstanding that all or some portion of such Benefits may be
subject to the Excise Tax. If applicable, in order to effectuate the Limited Amount, the Company
shall first reduce those Benefits which are not payable in cash and then reduce cash payments, in
each case in reverse order beginning with Benefits which are to be paid the farthest in time from
the date of determination that the Benefits will be limited by (b) above. A determination as to
whether the Benefits shall be reduced to pursuant to (b) above and the amount of the Limited

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Benefit shall be made by the Company’s independent public accountants or another certified public
accounting firm of national reputation designated by the Company (the “Accounting Firm”) at the
Company’s expense. The Accounting Firm shall provide its determination, together with detailed
supporting calculations regarding the amount of any relevant matters, both to the Company and to
Executive within seven (7) business days of the Executive’s separation from service, if applicable,
or such earlier time as is requested by the Company. Such determination shall be made by the
Accountants using reasonable good faith interpretations of the Code. Any determination by the
Accountants shall be binding upon the Company and the Executive, absent manifest error.

          6. Nondisclosure and Noncompetition.

          6.1 Proprietary Information.

               (a) Executive agrees that all information and know-how, whether or not in writing, of a
private, secret or confidential nature concerning the Company’s business or financial affairs
(collectively, “Proprietary Information”) is and shall be the exclusive property of the Company.
By way of illustration, but not limitation, Proprietary Information may include inventions,
products, processes, methods, techniques, formulas, designs, drawings, slogans, tests, logos,
ideas, practices, projects, developments, plans, research data, financial data, personnel data,
computer programs and codes, and customer and supplier lists. Executive shall not, either during
or after his employment, disclose any Proprietary Information to others outside the Company or use
the same for any unauthorized purposes without written approval by an officer of the Company unless
and until such Proprietary Information has become public knowledge or generally known within the
industry without fault by Executive, or unless otherwise required by law.

               (b) Executive agrees that all files, letters, memoranda, reports, records, data, sketches,
drawings, laboratory notebooks, program listings, or other written, photographic, electronic or
other material containing Proprietary Information, whether created by Executive or others, which
shall come into his custody or possession, shall be and are the exclusive property of the Company
to be used by Executive only in the performance of his duties for the Company.

               (c) Executive agrees that his obligation not to disclose or use information, know-how and
records of the types set forth in paragraphs (a) and (b) above also extends to such types of
information, know-how, records and tangible property of any Affiliates of the Company, customers of
the Company or suppliers to the Company or other third parties who may have disclosed or entrusted
the same to the Company or to Executive in the course of the Company’s business.

          6.2 Inventions.

               (a) Disclosure. Executive shall disclose promptly to an officer or to attorneys of
the Company in writing any idea, invention, work of authorship, whether patentable or unpatentable,
copyrightable or uncopyrightable, including, but not limited to, any computer program, software,
command structure, code, documentation, compound, genetic or biological

6

 

material, formula, manual, device, improvement, method, process, discovery, concept,
algorithm, development, secret process, machine or contribution (any of the foregoing items, an
“Invention”) Executive may conceive, make, develop or work on, in whole or in part, solely or
jointly with others. The disclosure required by this Section applies (i) during the period of
Executive’s employment with the Company and for two years thereafter; (ii) with respect to all
Inventions whether or not they are conceived, made, developed or worked on by Executive during
Executive’s regular hours of employment with the Company; (iii) whether or not the Invention was
made at the suggestion of the Company; (iv) whether or not the Invention was reduced to drawings,
written description, documentation, models or other tangible form; and (v) whether or not the
Invention is related to the general line of business engaged in by the Company.

               (b) Assignment of Inventions to Company; Exemption of Certain Inventions. Executive
hereby assigns to the Company without royalty or any other further consideration Executive’s entire
right, title and interest in and to all Inventions which Executive conceives, makes, develops or
works on during the Term and for two years thereafter.

               (c) Records. Executive will make and maintain adequate and current written records of
all Inventions. These records shall be and remain the property of the Company.

               (d) Patents. Executive will assist the Company in obtaining, maintaining and
enforcing patents and other proprietary rights in connection with any Invention covered by this
Section 6.2. Executive further agrees that his obligations under this Section 6.2 shall continue
beyond the termination of his employment with the Company, but if he is called upon to render such
assistance after the termination of such employment, he shall be entitled to a fair and reasonable
rate of compensation for such assistance. Executive shall, in addition, be entitled to
reimbursement of any expenses incurred at the request of the Company relating to such assistance.

          6.3 Prior Contracts and Inventions; Information Belonging to Third Parties.
Executive represents that there are no contracts to assign Inventions between any other person or
entity and Executive. Executive further represents that (a) Executive is not obligated under any
consulting, employment or other agreement which would affect the Company’s rights or Executive’s
duties under this Agreement, (b) there is no action, investigation or proceeding pending or
threatened, or any basis therefor known to Executive, involving Executive’s prior employment or
any consultancy or the use of any information or techniques alleged to be proprietary to any
former employer, and (c) the performance of Executive’s duties as an employee of the Company will
not breach, or constitute a default under, any agreement to which Executive is bound, including,
without limitation, any agreement limiting the use or disclosure of proprietary information
acquired in confidence prior to engagement by the Company. Executive will not, in connection
with Executive’s employment by the Company, use or disclose to the Company any confidential,
trade secret or other proprietary information of any previous employer or other person to which
Executive is not lawfully entitled.

          6.4 Noncompetition and Nonsolicitation.

7

 

               (a) From the Commencement Date until two years after Executive is no longer employed by the
Company or any of its Affiliates (the “Restricted Period”), Executive will not, directly or
indirectly, whether alone or in conjunction with others, as an employee, as a partner, or as a
shareholder, officer or director of any corporation or other business entity, or as a trustee,
fiduciary or in any other similar representative capacity, absent the Company’s prior written
approval, carry on, or be engaged, concerned or take part in, or render services to (for
compensation or otherwise), or own, share in the earnings of or invest in the stocks, bonds, or
other securities of (other than as the holder of not more than 1% of the combined voting power of
the outstanding stock of a public company), any other person or entity that competes with the
Group. For purposes of this Agreement, a person or entity “competes” with the Group if it (i) bids
for, or otherwise solicits or interferes with, any existing business relationship of the Group
(including the relationships of the Group with any of its clients, customers and/or accounts) or
(ii) bids for or otherwise solicits a new relationship sought by the Group within the 12-month
period prior to the termination of Executive’s employment hereunder and “Group” means,
collectively, the Purchaser and its worldwide Affiliates.

               (b) Until the end of the Restricted Period, Executive shall not, as principal, proprietor,
director, officer, partner, shareholder, employee, member, manager, consultant, agent, independent
contractor or otherwise, for himself or on behalf of any other person or entity (except the Company
or any other member of the Group, at the Company’s request), directly or indirectly, recruit,
solicit or induce, or attempt to recruit, solicit or induce any person who at any time within the
two-year period prior to the termination of his employment was in the employ of the Company to
terminate their employment with, or otherwise cease their relationship with, the Company.

          6.5 Interpretation. If any restriction set forth in this Article 6 is found by any
court of competent jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities or geographic area
as to which it may be enforceable.

          6.6 Acknowledgements. The restrictions contained in this Article 6 are necessary for
the protection of the business and goodwill of the Company and are considered by Executive to be
reasonable for such purpose. In view of the services which Executive shall perform hereunder,
which services are special, unique, extraordinary and intellectual in character and which shall
place Executive in a position of confidence and trust with the customers and employees of the
Company and the Purchaser and provide to Executive access to confidential financial information,
trade secrets, know-how and other confidential and proprietary information, Executive expressly
acknowledges that the restrictive covenants set forth in this Article 6 are reasonable and
necessary to protect and maintain the proprietary and other legitimate business interests of the
Company and the Purchaser and that the enforcement of such restrictive covenants shall not prevent
Executive from earning a livelihood. Executive further acknowledges that the remedy at law for any
breach or threatened breach of this Article 6, if such breach or threatened breach is held by a
court to exist, shall be inadequate and, accordingly, that the Company and the Purchaser shall, in
addition to all other available remedies, be entitled to injunctive relief without being required
to post bond or other security and without having to

8

 

prove the inadequacy of the available remedies at law. Executive hereby waives trial by jury
and agrees not to plead or defend on grounds of inadequate remedy at law or any element thereof in
an action by the Company and/or the Purchaser against Executive for injunctive relief or for
specific performance of any obligation pursuant to this Agreement. The period of time during which
the provisions of this Article 6 shall apply shall be extended by the length of time during which
Executive is in breach of the terms of this Article 6. The Company shall be entitled to recover
its reasonable attorneys’ fees in the event it prevails in such an action.

          7. Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings, whether written or oral relating to
the subject matter of this Agreement.

          8. Jury Waiver. Executive and the Company agree to waive trial by jury with respect
to any claims arising out of or relating to this Agreement or Executive’s employment by the
Company.

          9. Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and Executive. The Company shall not unreasonably withhold its
consent to an amendment hereto requested by Executive for the purposes of avoiding a potential
violation of Section 409A of the Code.

          10. Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of Illinois without regard to principles of conflicts of laws
thereunder.

          11. Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given when received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method with confirmation of successful delivery; the day after
it is sent, if sent for next day delivery to a domestic address by recognized overnight delivery
service (e.g., Federal Express); and upon receipt, if sent by certified or registered mail, return
receipt requested. In each case notice shall be sent to a party at the following address (or to
such other address as a party may have specified by notice given to the other parties pursuant to
this provision):

If to Executive, to:

Robert E. Kelly, Jr.

HOME ADDRESS APPEARS IN ORIGINAL

With a copy (which shall not constitute notice) to:

Foley & Lardner LLP

777 E. Wisconsin Avenue

Milwaukee, WI 53202

9

 

Attention:

Facsimile:

If to the Company, to:

National Investment Services, Inc.

c/o Titanium Asset Management Corp.

2 North Tamiami Trail, Suite 1200

Sarasota, FL 34236

Attention: John Sauickie

Facsimile: (941) 827-9772

With a copy (which shall not constitute notice) to:

Orrick, Herrington & Sutcliffe LLP

666 Fifth Avenue

New York, NY 10103

Attention: R. King Milling, Jr., Esq.

Facsimile: (212) 506-5151

          12. Successors and Assigns. If the Company, or any Successor Company (as defined
below), shall at any time be merged or consolidated into or with any other corporation or
corporations, or if substantially all of the assets of the Company or any such Successor Company is
sold or otherwise transferred to another corporation, the provisions of this Agreement shall be
binding upon and shall inure to the benefit of the continuing corporation or the corporation
resulting from such merger or consolidation or the corporation to which such assets is sold or
transferred (“Successor Company”) and any such assignment of this Agreement shall be binding upon,
and this Agreement shall continue to inure to the benefit of, Executive. This Agreement may be
assigned without Executive’s consent to any member of the Group in connection with the underwritten
public offering of the securities of such member. Except as provided in the two foregoing
sentences, this Agreement shall not be assignable by the Company or by any Successor Company
without Executive’s prior written consent. This Agreement shall not be assignable by Executive and
any purported assignment of rights or delegation of duties under this Agreement by Executive shall
be void.

          13. Miscellaneous.

          13.1 No Waiver. No delay or omission by the Company in exercising any right under
this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by
the Company on any one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion.

          13.2 Severability. In case any provision of this Agreement shall be invalid, illegal
or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions
shall in no way be affected or impaired thereby.

10

 

          13.3 Counterparts. This Agreement may be executed in two or more counterparts
(including by facsimile), each of which shall be deemed an original but all of which together
shall constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

 

          IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first set
forth above.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	/s/ Robert Kelly
 	 
	 	Robert E. Kelly, Jr. 	 
	 	 	 
	 
	 	COMPANY:

NATIONAL INVESTMENT SERVICES, INC.

 	 
	 	By:  	/s/ Robert Seifert
 	 
	 	 	Name:  	Robert Seifert 	 
	 	 	Title:  	President 	 

12

 

Exhibit A

     1. Your Release of Claims. You hereby agree and acknowledge that by signing this release
agreement (this “Release”), and for other good and valuable consideration, you are waiving your
right to assert any and all forms of legal claims against the Company1 of any kind
whatsoever, whether known or unknown, arising from the beginning of time through the date you
execute this Release (the “Execution Date”). Except as set forth below, your waiver and release
herein is intended to bar any form of legal claim, complaint or any other form of action (jointly
referred to as “Claims”) against the Company seeking any form of relief including, without
limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any
damages, or any other form of monetary recovery whatsoever (including, without limitation, back
pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys fees
and any other costs) against the Company, for any alleged action, inaction or circumstance existing
or arising through the Execution Date.

     Without limiting the foregoing general waiver and release, you specifically waive and release
the Company from any Claim arising from or related to your prior employment relationship with the
Company or the termination thereof, including, without limitation:

	 	**	 	Claims under any state or federal discrimination, fair employment practices
or other employment related statute, regulation or executive order (as they may have
been amended through the Execution Date) prohibiting discrimination or harassment
based upon any protected status including, without limitation, race, national origin,
age, gender, marital status, disability, veteran status or sexual orientation.
Without limitation, specifically included in this paragraph are any Claims arising
under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Equal Pay Act, the Americans With Disabilities
Act and any similar Federal and state statute.
	 
	 	**	 	Claims under any other state or federal employment related statute,
regulation or executive order (as they may have been amended through the Execution
Date) relating to wages, hours or any other terms and conditions of employment.
	 
	 	**	 	Claims under any state or federal common law theory including, without
limitation, wrongful discharge, breach of express or implied contract, promissory
estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing,
violation of public policy, defamation, interference with contractual relations,
intentional or negligent infliction of emotional distress, invasion of privacy,
misrepresentation, deceit, fraud or negligence.

 

			
	1	 	For purposes of this Release, the Company includes the Company and any of its
divisions, affiliates (which means all persons and entities directly or indirectly controlling,
controlled by or under common control with the Company), subsidiaries and all other related
entities, and its and their directors, officers, employees, trustees, agents, successors and
assigns.

 

 

	 	**	 	Any other Claim arising under state or federal law.

     You acknowledge and agree that, but for providing this waiver and release, you would not be
receiving the economic benefits being provided to you under the terms of this Agreement.

     It is the Company’s desire and intent to make certain that you fully understand the provisions
and effects of this Release. To that end, you have been encouraged and given the opportunity to
consult with legal counsel for the purpose of reviewing the terms of this Agreement. Also, because
you are over the age of 40, the Age Discrimination in Employment Act (“ADEA”), which prohibits
discrimination on the basis of age, allows you at least twenty-one (21) days to consider the terms
of this Release. ADEA also allows you to rescind your assent to this Release if, within seven (7)
days after you sign this Agreement, you deliver by hand or send by mail (certified, return receipt
and postmarked within such 7 day period) a notice of rescission to the Company. If no such
rescission notice is provided by you to the Company, then the eighth day following the Execution
Date is the “Effective Date” of this Release.

     Furthermore, nothing in this Release shall be deemed to prohibit you from challenging the
validity of this Release under the federal discrimination laws of the United States (the “Federal
Discrimination Laws”) or from filing a charge or complaint of employment-related discrimination
with the Equal Employment Opportunity Commission (“EEOC”), or from participating in any
investigation or proceeding conducted by the EEOC. Further, nothing in this Release or Agreement
shall be deemed to limit the Company’s right to seek immediate dismissal of such charge or
complaint on the basis that your signing of this Agreement constitutes a full release of any
individual rights under the Federal Discrimination Laws, or to seek restitution to the extent
permitted by law of the economic benefits provided to you under this Agreement in the event that
you successfully challenge the validity of this Release and prevail in any claim under the Federal
Discrimination Laws.

     2. Confidentiality and Other Agreements. You expressly acknowledge and agree to the
following:

(a) that, on the date your employment with the Company is terminated, you will promptly return
to the Company all Company documents (and any copies thereof) and property. Further, you agree
that you will abide by any agreements regarding confidentiality or other post-employment
obligations.

(b) that you will not make any statements that are professionally or personally
disparaging about, or adverse to, the interests of the Company (including its
officers, directors, employees and consultants) including, but not limited to, any
statements that disparage any person, product, service, finances, financial condition,
capability or any other aspect of the business of the Company, and that you will not
engage in any conduct which could
reasonably be expected to harm professionally or personally the reputation of the
Company (including its officers, directors, employees and consultants); likewise,
the senior management of the Company shall not make any such disparaging remarks
about you.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	/s/ Robert E.
Kelly, Jr.	 	 
	 	 	 	 	 
	 	 	Robert E. Kelly, Jr.	 	 
	 

	 	Date signed:

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