Document:

Exhibit
      10.85

     

    SETTLEMENT
      AGREEMENT
      AND RELEASE

     

    This
      SETTLEMENT AGREEMENT AND RELEASE (this “Release”),
      dated
      as of May 15, 2008 (the “Effective
      Date”),
      is by
      and among NATIONAL INVESTMENT MANAGERS INC., a Florida corporation
      (“Buyer”),
      RENEE
      J. CONNER (“Conner”)
      and
      WILLIAM E. RENNINGER (“Renninger”
and
      together with Conner, “Sellers”
and
      each, a “Seller”).
      Buyer
      and Sellers are sometimes referred to herein collectively as the “Parties”
and
      each individually as a “Party”.
      Unless
      the context otherwise requires, terms used in this Release that are capitalized
      and not otherwise defined in context shall have the meanings set forth or
      cross-referenced in Exhibit A
      attached
      hereto.

     

    Background

     

    
      	
              A.

            	
              Buyer,
                The Pension Alliance, Inc., a Pennsylvania corporation (the “Company”),
                and Sellers are parties to that certain Stock Purchase Agreement,
                dated as
                of February 28, 2007 (the “Purchase
                Agreement”),
                pursuant to which Buyer acquired the Company from
                Sellers.

            

    

     

    
      	
              B.

            	
              Through
                discussions, the Parties have resolved certain issues between them
                with
                respect to (a) amounts owed by Buyer to Sellers under
                Section 2.3(e) of the Purchase Agreement (the “Payment”)
                and (b) a dispute regarding the amount of unearned revenues of the
                Company as of February 28, 2007, as described in Annex I
                hereto (the “Unearned
                Revenues”).
                Accordingly, the Parties desire to enter into this Release to fully
                and
                finally resolve all matters and issues existing between them with
                respect
                to the Payment and the Unearned
                Revenues.

            

    

     

    Agreement

     

    In
      consideration of the mutual covenants contained in this Release, and for other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Parties, intending to be legally bound, hereby agree as
      follows:

     

    
      	
              1.

            	
              Settlement
                Amount.
                Buyer agrees to pay (or cause to be paid) to Sellers an aggregate
                amount
                equal to $1,750,000 (in aggregate, the “Settlement
                Amount”)
                consisting of (a) $1,250,000 in cash payable on or before July 31,
                2008 (the “Cash
                Payment”),
                and (b) $500,000 payable under two promissory notes (one payable
                April 30, 2009 and one payable October 31, 2009), each in the amount
                of
                $250,000 (subject to adjustment as set forth in Section 2
                below) and substantially in the form attached hereto as Exhibit B
                (collectively, the “Notes”).
                Sellers agree that the Settlement Amount (subject to adjustment as
                set
                forth in Section 2
                below) shall be allocated 95% to Conner and 5% to Renninger. In no
                event
                will Buyer or any Buyer Party have any responsibility or liability
                for the
                allocation of such amount between Sellers or the distribution of
                such
                amount between Sellers. Upon payment of the Cash Payment and issuance
                of
                the Notes, the Parties shall be deemed to have hereby irrevocably
                waived
                and released their respective Claims to the extent set forth in
                Section 3
                below.

            

    

     

    
      	
              2.

            	
              Adjustment
                to Notes.
                If Adjusted EBITDA for the Measurement Period is less than $1,500,000,
                then the principal amount of the Notes shall decrease pro rata in
                an
                amount equal to the difference of (A) $1,500,000 minus
                (B) such Adjusted EBITDA.

            

    

     

    
      	
              3.

            	
              Mutual
                Releases.

            

    

     

    
      	 	
              (a)

            	
              In
                exchange for the rights and benefits arising under this Release,
                and
                except for any failure by Buyer to pay the Settlement Amount in accordance
                with Section 1
                above (including payment of the Notes, as may have been adjusted),
                each
                Seller, on his or her own behalf, and on behalf of his or her heirs,
                beneficiaries, legal and personal representatives, successors, assigns,
                affiliates and anyone else acting on his or her behalf (collectively,
                the
                “Seller
                Parties”)
                hereby irrevocably releases and forever discharges Buyer and the
                Company
                and each of their respective parents, subsidiaries, divisions, affiliates,
                predecessors, successors and assigns, and their present and former
                directors, officers, shareholders, employees, agents, attorneys,
                representatives, successors, beneficiaries, heirs and assigns
                (collectively, “Buyer
                Parties”)
                from, and waives and relinquishes, any and all Claims, whether presently
                known or unknown, of any kind or nature arising out of, relating
                to or
                based upon the Payment or the calculation thereof. Each Seller knowingly
                grants such release and discharge notwithstanding that he or she
                may
                hereafter discover facts in addition to, or different from, those
                which he
                or she now knows or believes to be true, and without regard to the
                subsequent discovery or existence of such different or additional
                facts,
                and each Seller expressly waives any and all rights that he or she
                may
                have under any statute or common law principle which would limit
                the
                effect of the foregoing release and discharge to those Claims actually
                known or suspected to exist.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              In
                exchange for the rights and benefits arising under this Release,
                and
                except for any breach of this Release, Buyer hereby irrevocably releases
                and forever discharges Sellers from, and waives and relinquishes,
                any and
                all Claims, whether presently known or unknown, of any kind or nature
                arising out of, relating to or based upon the Unearned Revenues or
                the
                calculation thereof. Buyer knowingly grants such release and discharge
                notwithstanding that it may hereafter discover facts in addition
                to, or
                different from, those which it now knows or believes to be true,
                and
                without regard to the subsequent discovery or existence of such different
                or additional facts, and Buyer expressly waives any and all rights
                that it
                may have under any statute or common law principle which would limit
                the
                effect of the foregoing release and discharge to those Claims actually
                known or suspected to exist.

            

    

     

    
      	
              4.

            	
              Lender
                Deliveries.
                Sellers agree to execute and deliver to Buyer subordination agreements,
                certificates and any other documents requested by Buyer’s lenders holding
                Senior Indebtedness in connection with this
                Release.

            

    

     

    
      	
              5.

            	
              Covenant
                Not to Sue; Indemnification.
                Each Party agrees that it will not at any time hereafter, directly
                or
                indirectly, initiate, maintain or prosecute, or in any way knowingly
                aid
                in the initiation, maintenance or prosecution of any Claim with respect
                to
                any matter as to which a release has been given by such Party under
                Section 3
                above. If any such Claim is asserted by a Seller Party against a
                Buyer
                Party, then Sellers shall indemnify and hold harmless such Buyer
                Party and
                shall reimburse such Buyer Party for any loss, liability, damage
                or
                expense (including reasonable attorneys’ fees) arising from or in
                connection therewith. If any such Claim is asserted by Buyer against
                a
                Seller Party, then Buyer shall indemnify and hold harmless such Seller
                Party and shall reimburse such Seller Party for any loss, liability,
                damage or expense (including reasonable attorneys’ fees) arising from or
                in connection therewith.

            

    

     

    
      	
              6.

            	
              No
                Admission of Liability.
                This Release is the result of the mutual desire of the Parties to
                compromise and settle certain disputes rather than engage in the
                continued, protracted, expensive and time-consuming efforts of collection,
                litigation and related activities, where there may be uncertainties
                of
                liability and recovery. Nothing in this Release shall in any respect
                constitute or be construed as (a) an admission of liability on the
                part of any Party, or (b) a breach by any Party of the Purchase
                Agreement.

            

    

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      	
              7.

            	
              Representations
                and Warranties.
                Buyer hereby represents and warrants to Sellers, and Sellers, jointly
                and
                severally, hereby represent and warrant to Buyer, as
                follows:

            

    

     

    
      	 	
              (a)

            	
              This
                Release has been duly executed and delivered by such
                Party.

            

    

     

    
      	 	
              (b)

            	
              This
                Release is enforceable against such Party and its successors and
                assigns,
                and the performance by such Party of its duties and obligations under
                this
                Release does not: (i) conflict with any contract or agreement binding
                upon such Party or its properties; or (ii) violate or conflict with
                any order or decree binding upon such Party or its
                properties.

            

    

     

    
      	 	
              (c)

            	
              Such
                Party has reviewed and fully understands this Release and has been
                represented by an attorney of its selection in connection with the
                negotiation and execution hereof.

            

    

     

    
      	
              8.

            	
              Governing
                Law.
                This Release shall be governed, interpreted and enforced in accordance
                with the laws of the State of Ohio, without regard to the doctrine
                of
                conflicts of law.

            

    

     

    
      	
              9.

            	
              Entire
                Agreement.
                This Release constitutes the entire agreement among the Parties with
                respect to the subject matter hereof, and there are no other written
                or
                oral agreements, understandings or arrangements except as set forth
                herein. The terms of this Release may not be modified or waived except
                in
                writing signed by the Parties. The invalidation of any provision
                contained
                in this Release shall not affect the validity of any other provision.
                The
                waiver of a breach of any of the provisions of this Release shall
                not
                operate or be construed as a waiver of any other provision of this
                Release
                or a waiver of any subsequent breach of the same
                provision.

            

    

     

    
      	
              10.

            	
              Counterparts;
                Facsimile Signatures.
                This Release may be executed in counterparts, with all signed counterparts
                constituting one and the same agreement. Delivery of an executed
                signature
                page to this Release by facsimile or electronic transmission will
                be
                effective as delivery of a manually executed counterpart to this
                Release.

            

    

     

    [Remainder
      of Page Intentionally Blank - Signature Page Follows]

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Parties have duly executed and delivered this Release
      as of
      the date first written above.

     

    
      
        	
                Buyer:

              	
                 

              	
                Sellers:

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                NATIONAL
                  INVESTMENT MANAGERS INC.

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                By:
                  

              	
                /s/
                  John M. Davis 

              	
                 

              	
                /s/
                  Renee J. Conner 

              
	
                Name:

              	
                John
                  M. Davis

              	
                 

              	
                Renee
                  J. Conner, individually

              
	
                Title:

              	
                President
                  and Chief Operating Officer

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                /s/
                  William E. Renninger 

              
	
                 

              	
                 

              	
                 

              	
                William
                  E. Renninger, individually

              

      

       

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    Defined
      Terms

     

    “Adjusted
      EBITDA”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Buyer”
has
      the
      meaning set forth in the Preamble.

     

    “Buyer
      Parties”
has
      the
      meaning set forth in Section 3(a).

     

    “Cash
      Payment”
has
      the
      meaning set forth in Section 1.

     

    “Claims”
means
      claims, causes of action, demands, damages, costs, expenses, liabilities,
      obligations, compensation or other losses of every kind.

     

    “Closing”
means
      the closing of the transactions contemplated by the Purchase
      Agreement

     

    “Company”
has
      the
      meaning set forth in Background Paragraph A.

     

    “Conner”
has
      the
      meaning set forth in the Preamble.

     

    “Effective
      Date”
has
      the
      meaning set forth in the Preamble.

     

    “Measurement
      Period”
means
      the period beginning on March 1, 2008 and ending on February 28,
      2009.

     

    “Notes”
has
      the
      meaning set forth in Section 1.

     

    “Party”
and
      “Parties”
has
      the
      meaning set forth in the Preamble.

     

    “Payment”
has
      the
      meaning set forth in Background Paragraph B.

     

    “Purchase
      Agreement”
has
      the
      meaning set forth in Background Paragraph A.

     

    “Release”
has
      the
      meaning set forth in the Preamble.

     

    “Renninger”
has
      the
      meaning set forth in the Preamble.

     

    “Seller”
and
      “Sellers”
has
      the
      meaning set forth in the Preamble.

     

    “Seller
      Parties”
has
      the
      meaning set forth in Section 3(a).

     

    “Senior
      Indebtedness”
has
      the
      meaning set forth in the Notes.

     

    “Settlement
      Amount”
has
      the
      meaning set forth in Section 1.

     

    “Unearned
      Revenues”
has
      the
      meaning set forth in Background Paragraph B.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    EXHIBIT
      B

     

    Form
      of Notes

     

    PROMISSORY
      NOTE

     

    
      
        
          	
                  $250,000

                	
                  Columbus,
                    Ohio 

                  May
                    [__],
                    2008

                

        

      

    

     

    FOR
      VALUE
      RECEIVED,
      National Investment Managers Inc., a Florida corporation (“Maker”),
      hereby promises to pay to Renee J. Conner, an individual resident of the
      Commonwealth of Pennsylvania (“Conner”),
      and
      William E. Renninger, an individual resident of the Commonwealth of Pennsylvania
      (together with Conner, and considered as a group, the “Holders”),
      the
      principal amount of Two Hundred Fifty Thousand Dollars ($250,000) or such other
      amount as adjusted pursuant to Section 2 of that certain Settlement
      Agreement and Release, dated as of May 15, 2008, by and among Maker and the
      Holders. All principal and unpaid interest under this Promissory Note shall
      be
      due on or before [_________] [___],
      200[_].
      Maker
      further promises to pay to the Holders on the unpaid principal balance from
      time
      to time outstanding, as follows: Interest shall accrue and be paid concurrently
      with the payment of principal hereunder at a rate per annum equal to 6%,
      computed on the basis of a 360-day year for the actual number of days the unpaid
      principal amount hereof is outstanding. Notwithstanding anything contained
      herein to the contrary, in no event shall the interest charged hereunder exceed
      the maximum permitted under the laws of the State of Ohio.

     

    Principal,
      interest and other sums payable under this Promissory Note shall be payable
      in
      lawful money of the United States of America at the place designated in writing
      by the Holders and delivered to the Maker.

     

    The
      indebtedness evidenced hereby may be prepaid in whole or in part at any time
      without penalty.

     

    At
      the
      option of the Holders, the entire unpaid principal balance of this Promissory
      Note, together with all accrued interest, shall be immediately due and payable
      upon the occurrence of any of the following (each, an “Event
      of Default”):

     

    
      	 	
              1.

            	
              Application
                for, or consent to, the appointment of a receiver, trustee or liquidator
                for Maker or of its property;

            

    

     

    
      	 	
              2.

            	
              Admission
                in writing of Maker’s inability to pay its debts as they
                mature;

            

    

     

    
      	 	
              3.

            	
              Maker
                makes any assignment for the benefit of
                creditors;

            

    

     

    
      	 	
              4.

            	
              Filing
                by Maker of a voluntary petition in bankruptcy seeking liquidation
                or
                reorganization;

            

    

     

    
      	 	
              5.

            	
              Entering
                against Maker of a court order approving a petition filed against
                it under
                the federal bankruptcy laws, which order shall not have been vacated,
                set
                aside or otherwise terminated within 60 days of such entry against
                Maker;
                or

            

    

     

    
      	 	
              6.

            	
              Maker
                fails to pay any installment of interest or any other sum payable
                in
                accordance with this Promissory Note when due, and such failure is
                not
                cured within 30 days of the Holders notifying Maker in writing of
                such
                failure.

            

    

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    Upon
      the
      occurrence of any Event of Default, Maker will pay to the Holders reasonable
      attorneys’ fees, court costs and expenses incurred by the Holders in connection
      with the Holders’ efforts to collect the indebtedness evidenced
      hereby.

     

    This
      Promissory Note is unsecured.

     

    All
      rights and remedies available to the Holders pursuant to the provisions of
      applicable law and otherwise are cumulative, not exclusive and enforceable
      alternatively, successively and/or concurrently during an Event of Default
      by
      Maker pursuant to the provisions of this Promissory Note.

     

    This
      Promissory Note may not be changed, modified or terminated orally, but only
      by
      an agreement in writing, signed by Maker and the Holders.

     

    This
      Promissory Note is subordinate to all Senior Indebtedness. Notwithstanding
      anything to the contrary in this Promissory Note, the Holders agree that the
      indebtedness represented by this Promissory Note and the payment of principal
      of
      and interest, including any interest accruing during the existence of an Event
      of Default, and other amounts owed by Maker are hereby expressly made
      subordinate and subject in right of payment to the prior payment in full of
      all
      Senior Indebtedness, and any fees, costs, enforcement expenses (including legal
      fees and disbursements), collateral protection expenses and other reimbursement
      or indemnity obligations related to such Senior Indebtedness. As used herein,
      “Senior
      Indebtedness”
means
      the principal of (and premium, if any) and interest on (i) all indebtedness
      of Maker for money borrowed from any bank, merchant bank, savings and loan,
      insurance company, finance company, credit union, investment bank,
      broker-dealer, or other financial institution of any nature whatsoever, or
      any
      affiliate thereof, whether outstanding on the date of execution of this
      Promissory Note or thereafter created, assumed or incurred (including, without
      limitation, all indebtedness evidenced by that certain (A) Revolving Line
      of Credit and Term Loan Agreement, dated as of November 30, 2007, between Maker
      and RBS Citizens, National Association, and (B) Securities
      Purchase and Loan Agreement, dated November 30, 2007, by and among Maker,
      Woodside Capital Partners IV, LLC, Woodside Capital Partners IV QP, LLC, Lehman
      Brothers Commercial Bank and Woodside Agency Services, LLC, as collateral
      agent);
      and
      (ii) any deferrals, renewals, increases, extensions or refinancings of any
      such Senior Indebtedness referred to in clause (i) above. As used herein,
“indebtedness
      of Maker for money borrowed”
means
      any obligation of, or any obligation guaranteed by, Maker for the repayment
      of
      money borrowed, whether or not evidenced by bonds, debentures, notes or other
      written instruments, any capitalized lease obligation and any deferred
      obligation for payment of the purchase price of any property or assets. The
      Holders agree to furnish any holder of Senior Indebtedness upon request a
      subordination agreement that contains reasonably customary subordination
      provisions, consistent with the provisions of this Promissory Note, which
      subordination agreement may, without limitation (x) set forth the priority
      rights of the Holders and the holder of the Senior Indebtedness, and
      (y) prohibit payments to the Holders that would cause a default under the
      Senior Indebtedness. In the event of and during the continuation of any default
      or event of default under any Senior Indebtedness beyond any applicable grace
      period with respect thereto, no payment shall be made by or on behalf of Maker,
      or demand made by or on behalf of the Holders, on this Promissory Note until
      the
      date, if any, on which such default or event of default is waived by the holders
      of such Senior Indebtedness or otherwise cured or has ceased to exist or the
      Senior Indebtedness to which such default or event of default relates is
      discharged by payment in full in cash. Nothing contained in this Paragraph
      or
      elsewhere in this Promissory Note shall prevent Maker, at any time except under
      the circumstances described in this Paragraph, from making regularly scheduled
      payments at any time of principal of or interest on this Promissory
      Note.

     

    This
      Promissory Note and all rights and obligations hereunder shall be governed
      by
      and construed under the local laws of the State of Ohio without regard to any
      conflicts of law doctrine and shall be binding upon the successors, endorsees
      or
      assigns of Maker and inure to the benefit of the Holders, its successors,
      endorsees and permitted assigns. If any provision hereof is or becomes invalid
      or unenforceable under any law of mandatory application, it is the intent of
      Maker and the Holders that such provision will be deemed severed and omitted
      herefrom, the remaining portions hereof to remain in full force and effect
      as
      written.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, Maker has duly executed this Promissory Note as of the day
      and
      year first above written.

     

    

    
      	 	
              NATIONAL
                INVESTMENT MANAGERS INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	      

	 	
              Name:

            	     

	 	
              Title:
                

            	          
              

    

    

      
        
           

        

        
          -8-

          
            

          

        

        
           

          
          

        

      

    

    ANNEX I

     

    Unearned
      Revenues

     

    
      	
              Sellers’
                Method

              (as
                of February 28, 2007)

            	 	
              Revised
                Method

              (as
                of February 28, 2007)

            
	
              2006
                Unearned Revenue

            	
              $77,736.68

            	 	
              2006
                Unearned Revenue

            	
              $1,158,788.64

            
	
              2007
                Unearned Revenue

            	
              $418,623.18

            	 	
              2007
                Unearned Revenue

            	
              $351,864.78

            
	
              Total

            	
              $496,359.86

            	 	
              Total

            	
              $1,510,653.42

            

    

    

     

    
      	
              Unearned
                Revenues Calculation

            
	
              Revised
                Method Total Unearned Revenue

            	
              $1,510,653.42

            
	
              LESS:
                Sellers’ Method Total Unearned Revenue

            	
              $496,359.86

            
	
              Unearned
                Revenues

            	
              $1,014,293.56

            

    

     

    
      
         

      

      
        -9-Exhibit
      10.86

     

    PROMISSORY
      NOTE

     

    
      	
              $250,000

            	
              Columbus,
                Ohio 

              May
                15, 2008

            

    

     

    FOR
      VALUE
      RECEIVED,
      National Investment Managers Inc., a Florida corporation (“Maker”),
      hereby promises to pay to Renee J. Conner, an individual resident of the
      Commonwealth of Pennsylvania (“Conner”),
      and
      William E. Renninger, an individual resident of the Commonwealth of Pennsylvania
      (together with Conner, and considered as a group, the “Holders”),
      the
      principal amount of Two Hundred Fifty Thousand Dollars ($250,000) or such other
      amount as adjusted pursuant to Section 2 of that certain Settlement
      Agreement and Release, dated as of May 15, 2008, by and among Maker and the
      Holders. All principal and unpaid interest under this Promissory Note shall
      be
      due on or before April 30, 2009. Maker further promises to pay to the Holders
      on
      the unpaid principal balance from time to time outstanding, as follows: Interest
      shall accrue and be paid concurrently with the payment of principal hereunder
      at
      a rate per annum equal to 6%, computed on the basis of a 360-day year for the
      actual number of days the unpaid principal amount hereof is outstanding.
      Notwithstanding anything contained herein to the contrary, in no event shall
      the
      interest charged hereunder exceed the maximum permitted under the laws of the
      State of Ohio.

     

    Principal,
      interest and other sums payable under this Promissory Note shall be payable
      in
      lawful money of the United States of America at the place designated in writing
      by the Holders and delivered to the Maker.

     

    The
      indebtedness evidenced hereby may be prepaid in whole or in part at any time
      without penalty.

     

    At
      the
      option of the Holders, the entire unpaid principal balance of this Promissory
      Note, together with all accrued interest, shall be immediately due and payable
      upon the occurrence of any of the following (each, an “Event
      of Default”):

     

    
      	 	
              1.

            	
              Application
                for, or consent to, the appointment of a receiver, trustee or liquidator
                for Maker or of its property;

            

    

     

    
      	 	
              2.

            	
              Admission
                in writing of Maker’s inability to pay its debts as they
                mature;

            

    

     

    
      	 	
              3.

            	
              Maker
                makes any assignment for the benefit of
                creditors;

            

    

     

    
      	 	
              4.

            	
              Filing
                by Maker of a voluntary petition in bankruptcy seeking liquidation
                or
                reorganization;

            

    

     

    
      	 	
              5.

            	
              Entering
                against Maker of a court order approving a petition filed against
                it under
                the federal bankruptcy laws, which order shall not have been vacated,
                set
                aside or otherwise terminated within 60 days of such entry against
                Maker;
                or

            

    

     

    
      	 	
              6.

            	
              Maker
                fails to pay any installment of interest or any other sum payable
                in
                accordance with this Promissory Note when due, and such failure is
                not
                cured within 30 days of the Holders notifying Maker in writing of
                such
                failure.

            

    

     

    Upon
      the
      occurrence of any Event of Default, Maker will pay to the Holders reasonable
      attorneys’ fees, court costs and expenses incurred by the Holders in connection
      with the Holders’ efforts to collect the indebtedness evidenced
      hereby.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This
      Promissory Note is unsecured.

     

    All
      rights and remedies available to the Holders pursuant to the provisions of
      applicable law and otherwise are cumulative, not exclusive and enforceable
      alternatively, successively and/or concurrently during an Event of Default
      by
      Maker pursuant to the provisions of this Promissory Note.

     

    This
      Promissory Note may not be changed, modified or terminated orally, but only
      by
      an agreement in writing, signed by Maker and the Holders.

     

    This
      Promissory Note is subordinate to all Senior Indebtedness. Notwithstanding
      anything to the contrary in this Promissory Note, the Holders agree that the
      indebtedness represented by this Promissory Note and the payment of principal
      of
      and interest, including any interest accruing during the existence of an Event
      of Default, and other amounts owed by Maker are hereby expressly made
      subordinate and subject in right of payment to the prior payment in full of
      all
      Senior Indebtedness, and any fees, costs, enforcement expenses (including legal
      fees and disbursements), collateral protection expenses and other reimbursement
      or indemnity obligations related to such Senior Indebtedness. As used herein,
      “Senior
      Indebtedness”
means
      the principal of (and premium, if any) and interest on (i) all indebtedness
      of Maker for money borrowed from any bank, merchant bank, savings and loan,
      insurance company, finance company, credit union, investment bank,
      broker-dealer, or other financial institution of any nature whatsoever, or
      any
      affiliate thereof, whether outstanding on the date of execution of this
      Promissory Note or thereafter created, assumed or incurred (including, without
      limitation, all indebtedness evidenced by that certain (A) Revolving Line
      of Credit and Term Loan Agreement, dated as of November 30, 2007, between Maker
      and RBS Citizens, National Association, and (B) Securities
      Purchase and Loan Agreement, dated November 30, 2007, by and among Maker,
      Woodside Capital Partners IV, LLC, Woodside Capital Partners IV QP, LLC, Lehman
      Brothers Commercial Bank and Woodside Agency Services, LLC, as collateral
      agent);
      and
      (ii) any deferrals, renewals, increases, extensions or refinancings of any
      such Senior Indebtedness referred to in clause (i) above. As used herein,
“indebtedness
      of Maker for money borrowed”
means
      any obligation of, or any obligation guaranteed by, Maker for the repayment
      of
      money borrowed, whether or not evidenced by bonds, debentures, notes or other
      written instruments, any capitalized lease obligation and any deferred
      obligation for payment of the purchase price of any property or assets. The
      Holders agree to furnish any holder of Senior Indebtedness upon request a
      subordination agreement that contains reasonably customary subordination
      provisions, consistent with the provisions of this Promissory Note, which
      subordination agreement may, without limitation (x) set forth the priority
      rights of the Holders and the holder of the Senior Indebtedness, and
      (y) prohibit payments to the Holders that would cause a default under the
      Senior Indebtedness. In the event of and during the continuation of any default
      or event of default under any Senior Indebtedness beyond any applicable grace
      period with respect thereto, no payment shall be made by or on behalf of Maker,
      or demand made by or on behalf of the Holders, on this Promissory Note until
      the
      date, if any, on which such default or event of default is waived by the holders
      of such Senior Indebtedness or otherwise cured or has ceased to exist or the
      Senior Indebtedness to which such default or event of default relates is
      discharged by payment in full in cash. Nothing contained in this Paragraph
      or
      elsewhere in this Promissory Note shall prevent Maker, at any time except under
      the circumstances described in this Paragraph, from making regularly scheduled
      payments at any time of principal of or interest on this Promissory
      Note.

     

    This
      Promissory Note and all rights and obligations hereunder shall be governed
      by
      and construed under the local laws of the State of Ohio without regard to any
      conflicts of law doctrine and shall be binding upon the successors, endorsees
      or
      assigns of Maker and inure to the benefit of the Holders, its successors,
      endorsees and permitted assigns. If any provision hereof is or becomes invalid
      or unenforceable under any law of mandatory application, it is the intent of
      Maker and the Holders that such provision will be deemed severed and omitted
      herefrom, the remaining portions hereof to remain in full force and effect
      as
      written.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, Maker has duly executed this Promissory Note as of the day
      and
      year first above written.

     

    
      	 	
              NATIONAL
                INVESTMENT MANAGERS INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                John M. Davis

            
	 	
              Name:

            	
              John
                M. Davis

            
	 	
              Title:

            	
              President
                and Chief Operating Officer

            

    

     

    
      
         

      

      
        -3-

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