Document:

Unassociated Document

    

      

      AGREEMENT

       

      This
        Agreement (the “Agreement”)
        is
        dated November __, 2007 and is made by and among National Investment Managers
        Inc. (the “Company”), DC Associates LLC (“DCA”),
        and
        Michael Crow, an individual residing in
        1133 Cedar Rd, Southport, CT 06890 (“Crow”
and,
        together with DCA, the “Duncan
        Parties”).

       

      WHEREAS,
        the
        Company and DCA entered into that certain advisory agreement dated January
        1,
        2006, as amended, including pursuant to a Memorandum dated February 15, 2007
        from Duncan Capital Group, LLC to the Company (the “DCA
        Agreement”)
        pursuant to which DCA agreed to provide the Company with financial consulting
        services;

       

      WHEREAS,
        a true
        and correct copy of the DCA Agreement is attached as Exhibit
        B
        hereto.

       

      WHEREAS,
        DCA has
        provided certain advisory services to the Company pursuant to the DCA Agreement,
        including, without limitation, (i) advice to the Company in structuring the
        Company’s Series E Private Placement, (ii) advice to the Company in structuring
        the Company’s issuance of notes and borrowings of loans from certain proposed
        investors, (iii) advice to the Company in the operations of the Company and
        integration of recent acquisitions, and (iv) advice regarding a possible
        sale of
        the Company and introductions to investment banking firms in connection
        therewith (collectively, the “Performed
        Services”);

       

      WHEREAS,
        the DCA
        Agreement, pursuant to its terms, provides that the Company shall pay to
        DCA a
        monthly retainer fee of $10,000 for the remaining months on the term of the
        DCA
        Agreement (i.e. November and December 2007) (the “Balance
        Consulting Fee”);

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      WHEREAS,
        the DCA
        Agreement provides that DCA may be entitled to a fee in an amount to be
        negotiated for services which may be provided by DCA as an advisor to the
        Company in connection with possible future corporate and/or capital
        opportunities of the Company (the “Prospective
        Fees”);

       

      WHEREAS,
        the
        Company and the Duncan Parties have agreed to terminate DCA’s and Crow’s rights
        and obligation to provide services under the DCA Agreement on the terms and
        conditions set forth herein;

       

      WHEREAS,
        the
        Company and the Duncan Parties desire to terminate DCA’s and Crow’s rights and
        obligation to provide services under the DCA Agreement on the terms and
        conditions set forth herein and all compensation owed pursuant to the DCA
        Agreement including, but not limited to, all amounts owed in respect of the
        Performed Services, the Balance Consulting Fee and the Prospective Fees;
        

       

      WHEREAS,
        as
        consideration for the Duncan Parties agreeing to cancel their rights under
        the
        DCA Agreement on the terms set forth therein, the Company will pay DCA a
        one-time sum of, $80,000 (the “Settlement
        Payment”);

       

      WHEREAS,
        Crow is
        legal and beneficial owner of 100% of the equity interests in DCA and is
        the
        sole and ultimate recipient of the benefits flowing to DCA from the DCA
        Agreement; and

       

      WHEREAS,
        the
        parties agree that the Settlement Payment has been negotiated on arm’s-length
        terms and represents the parties informed and considered judgment as to a
        fair
        and reasonable estimate for the mutual agreements contained herein.

       

      NOW,
        THEREFORE,
        in
        consideration of the mutual conditions and covenants contained in this
        Agreement, and for other good and valuable consideration, the sufficiency
        and
        receipt of which is hereby acknowledged, it is hereby stipulated, consented
        to
        and agreed by and among the Company and the Duncan Parties as
        follows:

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      1. DCA
        and
        Crow agree that, except as set forth in the immediately succeeding sentence,
        all
        obligations of the Company under the DCA Agreement (whether now existing
        or
        hereafter arising, contingent or liquidated, earned or prospective, known
        or
        unknown), including all obligations in respect of the Performed Services,
        the
        Balance Consulting Fee and the Prospective Fees, and all other obligations
        for
        fees, compensation and expenses, shall be terminated, discharged, satisfied,
        waived, relinquished and released. Notwithstanding the foregoing, the Company
        and DCA agree that the indemnification obligations of the Company set forth
        in
        Section 7 and Exhibit A of the DCA Agreement shall survive and shall remain
        in
        effect; provided
        that
        the
        Exhibit A to the DCA Agreement shall be modified by deleting the penultimate
        sentence of the first paragraph thereof and inserting the following new
        sentence: “The Company will not, however, be responsible for any Claim to the
        extent arising from the negligence, gross negligence, willful misconduct
        or
        unlawful actions of any person seeking indemnification hereunder.” 

       

      2. DCA
        and
        Crow represent, warrant and agree that, except for the Agreement attached
        as
Exhibit
        B
        hereto
        (as in effect on the date hereof, the “Continuing
        Arrangements”),
        the
        DCA Agreement is the only existing agreement between DCA, Crow or any of
        their
        affiliates, on the one hand, and the Company or any of its affiliates, on
        the
        other hand, and the only agreement pursuant to which the Company or any of
        its
        affiliates has any obligation, contingent, prospective, or otherwise, to
        DCA,
        Crow or any of their affiliates (all such other agreements and obligations,
        exclusive of the Continuing Arrangements, referred to herein as the
“Other
        Agreements”).
        Except for the Continuing Arrangements and the indemnification obligations
        of
        the Company set forth in Section 7 and Exhibit A of the DCA Agreement (as
        modified pursuant to paragraph 1 hereof), DCA, Crow, on behalf of themselves
        and
        their affiliates, successors and assigns, hereby terminate, discharge,
        relinquish, waive and release any and all other claims for any fees,
        compensation and expenses against the Company or any Company Person (defined
        below) under or in connection with the Other Agreements.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      3. In
        consideration for DCA and Crow agreeing to terminate the Company’s obligations
        under DCA Agreement (other than as expressly set forth above), the Company
        agrees to make the Settlement Payment to DCA upon the closing of the Company’s
        contemplated financing arrangements. The Company agrees that, upon the
        effectiveness hereof, all further obligations of DCA and/or Crow to act as
        a
        financial consultant to the Company under the DCA Agreement are terminated
        and
        discharged.

       

      4. DCA
        and
        Crow warrant and represent that no person or entity other than DCA or Crow
        has
        now or ever had any interest in the DCA Agreement, the Other Agreements,
        the
        Performed Services, the Balance Consulting Fee, or the Prospective Fees herein,
        and that neither of them has assigned or transferred, or purported to assign
        or
        transfer, to any person or entity all or any portion of the foregoing or
        any of
        the rights or benefits thereunder. 

       

      5. The
        parties understand and agree that this Agreement, including the facts and
        circumstances underlying this Agreement shall forever be deemed confidential
        among the parties to this Agreement unless disclosure of the facts and
        circumstances is required by law or to enforce the terms hereof; provided
        that
        the
        Company may disclose this Agreement and the subject matter hereof to any
        of the
        Company’s past, present and future: heirs, executors, successors,
        administrators, insurers, assigns, shareholders, investors, lenders, and
        each
        past, present and future advisor, attorney, consultant and other advisor
        of the
        foregoing (collectively, the “Company
        Persons”).
        DCA
        and Crow further agree that the Company’s rights hereunder may be collaterally
        assigned to certain Company Persons and that such Company Persons shall be
        entitled to enforce the provisions hereof. DCA and Crow agree that each of
        the
        Company Persons is an intended third party beneficiary of this Agreement,
        that
        certain Company Persons are entering into financing arrangements with the
        Company in reliance upon the representations and agreements of DCA and Crow
        hereunder, and that the representations and agreements of DCA and Crow hereunder
        shall be a material inducement to such Company Persons agreeing to enter
        into
        such financing arrangements with the Company.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      6. Each
        party acknowledges and represents that: (a) they have read the Agreement;
        (b)
        they clearly understand the Agreement and each of its terms; (c) they fully
        and
        unconditionally consent to the terms of this Agreement; (d) they have had
        the
        benefit and advice of counsel of their own selection; (e) they have executed
        this Agreement, freely, with knowledge, and without influence or duress;
        (f)
        they have not relied upon any other representations, either written or oral,
        express or implied, made to them by any person; and (g) the consideration
        received by them has been actual and adequate. 

       

      7. This
        Agreement contains the entire agreement and understanding concerning the
        subject
        matter hereof between the parties and supersedes and replaces all prior
        negotiations, proposed agreement and agreements, written or oral. Each of
        the
        parties hereto acknowledges that neither any of the parties hereto, nor agents
        or counsel of any other party whomsoever, has made any promise, representation
        or warranty whatsoever, express or implied, not contained herein concerning
        the
        subject hereto, to induce it to execute this Agreement and acknowledges and
        warrants that it is not executing this Agreement in reliance on any promise,
        representation or warranty not contained herein. 

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      8. This
        Agreement may not be modified or amended in any manner except by an instrument
        in writing specifically stating that it is a supplement, modification or
        amendment to the Agreement and signed by each of the parties hereto, with
        the
        prior written consent of the Company’s lenders. 

       

      9. Should
        any provision of this Agreement be declared or be determined by any court
        or
        tribunal to be illegal or invalid, the validity of the remaining parts, terms
        or
        provisions shall not be affected thereby and said illegal or invalid part,
        term
        or provision shall be severed and deemed not to be part of this Agreement.
        

       

      10. The
        Parties agree that this Agreement is governed by the Laws of the State of
        New
        York and that any and all disputes that may arise from the provisions of
        this
        Agreement shall be tried in the Supreme Court, State of New York, County
        of New
        York. THE
        PARTIES AGREE TO WAIVE THEIR RIGHT TO TRIAL BY JURY FOR ANY DISPUTE ARISING
        OUT
        OF THIS AGREEMENT. 

       

      11. This
        Agreement may be executed in facsimile counterparts, each of which, when
        all
        parties have executed at least one such counterpart, shall be deemed an
        original, with the same force and effect as if all signatures were appended
        to
        one instrument, but all of which together shall constitute one and the same
        Agreement. 

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have duly executed this Agreement as of the date first indicated
        above.

      

      National
        Investment Managers Inc. 

      

      /s/
        Steven Ross 

      Name: Steven
        Ross   

      Title:
        CEO     

      

      

      DC
        Associates LLC

      

      /s/Michael
        Crow

      Name:
        Michael Crow    

      Title:     

      

      

      

      /s/
        Michael
        Crow

      Michael
        Crow, an individual

      

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      Exhibit
        A

      

      Copy
        of
        DCA Agreement dated January 1, 2006 and Memorandum dated February 15,
        2007

      

      

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      Exhibit
        B

      

      

      Copy
        of
        Agreement, dated as of December 20, 2006 by and among the Company, Duncan
        Capital Group LLC, and DCI Master LDC.

      

      
        
           

        

        
          9RG
      Global Lifestyles, Inc.

    30021
      Tomas, Suite 200

    Rancho
      Santa Margarita, CA 92668

    

    

    December
      1, 2007

    

    

    Brian
      Ruttencutter

    1071
      Castlerock Lane

    North
      Tustin, CA 92705

    

    Re:
      Offer of Employment

    

    Dear
      Brian,

    

    On
      behalf
      of RG Global Lifestyles, Inc. (the “Company”), I am pleased to offer you
      full-time employment in the regular position of Chief Financial Officer,
      beginning December 1, 2007, subject to the following terms and conditions.
      

     

    Cash
      Compensation

    

    As
      a
      full-time employee in the regular position of Chief Financial Officer, you
      will
      earn a base salary annualized at $180,000 (“Base Salary”). The Base Salary shall
      at no time be reduced by more than 20%, and only in the event that the Company’s
      Board of Directors determines that the Company’s financial condition has
      materially deteriorated and such a reduction shall be effected similarly on
      other Company management, or such a reduction may be considered a termination
      without Cause as defined herein, at your discretion.

    

    Commissions/Bonuses

    

    You
      are
      eligible to earn an annual bonus in addition to your Base Salary up to a maximum
      of 40% of your Base Salary. The annual bonus will be calculated at 1.5% of
      the
      Company’s fiscal year end (March 31) pre-tax income.

    

    Benefits

    

    You
      shall
      be eligible to participate in all of the employee benefits and benefit plans
      that the Company generally makes available to its full-time regular employees,
      subject to the terms and conditions of such benefits and benefit plans,
      including group
      health plans, life, disability and AD&D insurances, dental, a 401k Plan, a
      Section 125 Plan, and paid time off.
      Detailed
      information about the benefits presently available will be provided to you
      on
      your first day of employment. 

    

    Until
      such time as the Company has a PPO health insurance plan, the Company will
      reimburse your Cobra health benefit costs from your prior employment up to
      $1,100/month.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                Brian
                  Ruttencutter

              	
                December
                  1, 2007

              
	 	
                Page 2
                  of 4

              

      

    

     

     

    Business
      Tools and Expense Reimbursements

    

    Company
      will provide you appropriate office space and business equipment and supplies
      as
      reasonably necessary to carry out your responsibilities as Chief Financial
      Officer. Additionally, the Company will promptly reimburse you for reasonable
      costs incurred by you on behalf of the Company in the performance of your
      responsibilities as Chief Financial Officer. Included in such reimbursements
      will be reasonable membership fees for participating in applicable professional
      organizations.

    

    Equity

    

    After
      commencement of your employment, it will be recommended to the Company’s Board
      of Directors (the “Board”) that you be granted an incentive stock option to
      purchase 300,000 shares of the Company’s common stock under the Company’s then
      current stock option plan. The per share exercise price of the option will
      be
      equal to the fair market value of the common stock on the date the Board
      actually approves the grant, and that date will likely be after the date you
      begin your employment with the Company. The option will be evidenced by a
      standard stock option agreement, and will be subject to the terms and conditions
      of that agreement and the stock option plan under which the option is granted.
      Such terms and conditions will include, but not be limited to, two year monthly
      vesting schedule and pre-requisites for exercising the option.

    

    “At
      Will” Employment

    

    RG
      Global
      is an at-will employer, and neither you nor RG Global is bound to continue
      this
      employment relationship if either chooses, at its will, to end the relationship
      at any time, with or without “Cause” or prior warning. However, if you are
      terminated without Cause, you will be eligible to receive your Base Salary,
      any
      earned but unpaid bonuses and full benefits for six months from the date of
      your
      termination. For purposes of your employment, “Cause” shall mean any of the
      following: (i) the past or present commission of a felony or other crime or
      the
      commission of any other act or omission involving dishonesty or fraud with
      respect to the Company or any of its subsidiaries, customers or suppliers,
      (ii)
      reporting to work under the influence of alcohol or illegal drugs, the use
      of
      illegal drugs (whether or not at the workplace) or other conduct causing the
      Company or any of its subsidiaries public disgrace or disrepute or material
      economic harm, (iii) repeated willful failure to perform duties as reasonably
      directed by the CEO or Board, (iv) any act or omission aiding or abetting a
      competitor, supplier or customer of the Company or any of its subsidiaries
      to
      the material disadvantage or detriment of the Company or any of its
      subsidiaries, or (v) breach of fiduciary duty, gross negligence or willful
      misconduct with respect to the Company or any of its subsidiaries.
      Notwithstanding the foregoing, the Company may terminate this employment
      relationship for employee’s repeated inability to perform CFO duties as
      reasonably directed by the CEO or Board for a period of six months after
      December 1, 2007 and not have such termination be considered without Cause
      for
      purposes of the severance payment above.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Brian
                Ruttencutter

            	
              December
                1, 2007

            
	 	
              Page 3
                of 4

            

    

     

     

    Full-time
      Services to The Company

    

    The
      Company requires that, as a full-time employee, you devote your full business
      time, attention, skills and efforts to the tasks and duties of your position
      as
      assigned by the Company. If you wish to request consent to provide services
      (for
      any or no form of compensation) to any other person or business entity while
      employed by the Company, please contact the Company’s Chief Executive
      Officer.

    

    Conditions
      

    

    This
      offer, and any employment pursuant to this offer, is conditioned upon the
      following: 

    

    
      	·  	
              Your
                ability to provide satisfactory documentary proof of your identity
                and
                right to work in the United States of America on your first day of
                employment. 

            

    

    

    
      	·  	
              Your
                signed agreement to, and ongoing compliance with, the terms of the
                enclosed Proprietary
                Information Agreement without
                modification.

            

    

    

    
      	·  	
              Your
                consent to, and results satisfactory to the Company of, reference
                and
                background checks. Until you have been informed in writing by the
                Company
                that such checks have been completed and the results satisfactory,
                you may
                wish to defer reliance on this offer.

            

    

    

    
      	·  	
              Your
                return of the enclosed copy of this letter, after being signed by
                you
                without modification, to the Company’s Chief Executive Officer no later
                than December 3, 2007, after which time this offer will expire.
                

            

    

    

    By
      signing and accepting this offer, you represent and warrant that: (i) you are
      not subject to any pre-existing contractual or other legal obligation with
      any
      person, company or business enterprise which may be an impediment to your
      employment with, or your providing services to, the Company as its employee;
      and
      (ii) you have not and shall not bring onto Company premises, or use in the
      course of your employment with the Company, any confidential or proprietary
      information of another person, company or business enterprise to whom you
      previously provided services. 

    

    Entire
      Agreement

    

    If
      you
      accept this offer, and the conditions of this offer are satisfied, this letter
      and the written agreements referenced in this letter shall constitute the
      complete agreement between you and the Company with respect to the initial
      terms
      and conditions of your employment. Any representations, whether written or
      oral,
      not contained in this letter or contrary to those contained in this letter,
      that
      may have been made to you are expressly cancelled and superceded by this offer.
      Except as otherwise specified in this letter, the terms and conditions of your
      employment pursuant to this letter may not be changed, except by a writing
      issued by the Chief Executive Officer. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                Brian
                  Ruttencutter

              	
                December
                  1, 2007

              
	 	
                Page 4
                  of 4

              

      

    

     

    If
      you
      accept this offer, please date and sign below, on the enclosed copy of this
      letter and return it to me no later than December 3, 2007. Please retain the
      original of this letter for your records. You should bring your INS Form I-9
      required identification and proof of authorization to work with you on your
      first day of employment.

    

    If
      you
      have any questions regarding this offer letter, please feel free to contact
      the
      Company’s CEO.

    

    Sincerely,

     

    /s/
      Grant
      King            
 

    Grant
      King, CEO

    

    

    I
      accept the above offer, and request to begin employment on December 1,
      2007:

    

    

    
      	Dated: December 1, 2007	
              /s/
Brian
                Ruttencutter

            
	 	
              Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]