Exhibit 10.56

 

FIRST AMENDMENT

 

TO

 

LINE OF CREDIT PROMISSORY NOTE

 

This First Amendment to Line of Credit Promissory Note (this “First Amendment”)
is dated March 10, 2005, by and among Diversified Corporate Resources, Inc., a
Texas corporation (the “Obligor”) and the James R. Colpitt Trust (the “Holder”).

 

WHEREAS, the Obligor has issued the Holder a Line of Credit Promissory Note,
dated March 1, 2005, a copy of which is attached hereto as Exhibit A (the
“Note”);

 

WHEREAS, the Obligor and the Holder desire to amend the Note, as set forth
herein.

 

NOW THEREFORE, in consideration of the following good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
in consideration of the mutual promises and agreements herein contained,
including the recitals set forth hereinabove, the parties agree as follows:

 

1.             Personal Guaranties.  In order to induce the Holder to fund
another $200,000 (the “Additional Funding”) under the Note, in addition to the
$150,000 that has been funded as of the current date, the Holder has received
the personal guaranties of J. Michael Moore and Ron Vallely (together, the
“Guaranties”), both of whom are officers of the Obligor who would benefit from
the Additional Funding, copies of which are attached hereto as Exhibit B;

 

2.             Conversion Privilege.  As a further inducement to the Holder to
complete the Additional Funding, the Obligor hereby agrees that, upon an Event
of Default, the Holder may elect, in addition to any other rights that the
Holder would have under the Note or the Security Agreement with J. Michael Moore
executed simultaneously with the Note, to convert $200,000 of the principal
balance of the Note into 350,000 shares of the common stock of the Obligor, at a
conversion price of approximately $0.57 per share, by surrendering the original
copy of this Note to the Obligor along with written notice that the Holder so
wishes to convert $200,000 of this Note, at which time the Obligor shall issue
the Holder a replacement note identical to the Note, as reduced by the amount
converted; provided, however, that if the Holder elects to exercise the
conversion privilege set forth in this Section 2 (its “Conversion Rights”), it
shall have no rights to enforce the Guaranties set forth in Section 1, and the
Holder agrees that, by the Holder exercising its Conversion Rights, the
Guaranties shall automatically become null and void and have no further legal
effect.

 

3.             Except as expressly amended hereby, the Note remains in full
force and effect.  Capitalized terms that are not defined herein shall have the
same meaning assigned to them in the Note.

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed and delivered as of the date first above written.

 

This First Amendment to Line of Credit Promissory Note may be executed in one or
more identical counterparts, including by facsimile signature, each of which
shall be deemed to be an original and all of which together shall be deemed to
be one instrument.

 

 

OBLIGOR:

 

DIVERSIFIED CORPORATE RESOURCES, INC.

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

HOLDER:

 

JAMES R. COLPITT TRUST

 

 

By:

 

 

 

James R. Colpitt, Trustee

 

 

2

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EXHIBIT A

 

LINE OF CREDIT PROMISSORY NOTE

 

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EXHIBIT B

 

COPIES OF PERSONAL GUARANTIES OF MOORE AND VALLELY

 

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