Document:

TEAMSTAFF,
INC.
 EMPLOYEE INCENTIVE STOCK OPTION CERTIFICATE
 AND
AGREEMENT

	Date of Grant: January 18, 2005	Option
No.: EO-57
	 Name of Optionee: Martin Delaney
	 Number of Shares:
100,000
	 Exercise Price Per Share: $1.75
	 Expiration Date:
January 18, 2010

Effective on the date of grant specified above,
TEAMSTAFF, INC. has granted to the above-named Optionee under the 2000
Employee Stock Option Plan, an option to purchase from TeamStaff the
number of shares of Common Stock of TeamStaff set forth above. This
option is subject to all the terms and conditions of the 2000 Option
Plan which is incorporated in this option as though set forth in
full.

The terms and conditions of this option are as
follows:

1.    The number and price of the shares subject to
this option shall be the number and price set forth above, subject to
any adjustments which may be made under Section 11 below.

2.    This option may not be exercised until it is vested.
Portions of this option become vested if you continue to be employed by
TeamStaff until after the expiration of the time periods stated
below:

A. After January 5, 2006, one-half of
this option becomes vested and you may purchase up to one-half of the
total number of shares covered by this option;

B. After January 5, 2007, the remainder of this
option becomes vested and you may purchase up to the total number of
shares covered by covered by this option.

This option
shall terminate and no shares may be purchased after the expiration
date. This option may also terminate sooner as provided below if your
employment is terminated for any reason.

3.    Except as
provided in Section 7, this option may not be exercised unless the
Optionee is employed by TeamStaff or one of its parent or subsidiary
corporations on the date of such exercise and shall have been an
employee continuously since the date of grant.

4.    This
option is exercisable by a written notice signed by you and delivered
to TeamStaff at its executive offices, signifying your election to
exercise the option. A form of the notice is attached to this option
certificate. The notice must state the number of shares of Common Stock
for which your option is being exercised and must be accompanied by the
full purchase price of the shares being purchased.

Payment shall
be either (i) in cash, or by certified or bank cashier's check
payable to the order of TeamStaff, free from all collection charges;
(ii) by delivery of shares of Common Stock of TeamStaff already owned
by the Optionee for at least six months prior to the date of exercise,
which Common Stock shall be valued at Fair Market Value on the date of
exercise; or (iii) by a combination of the methods of payment specified
in (i) and (ii) above.

For these purposes, the market value per
share of Common Stock shall be: (i) if the Common Stock is traded on a
national securities exchange or on the NASDAQ National Market System
("NMS"), the per share closing price of the
Common Stock on the principal securities exchange on which they are
listed or on NMS, as the case may be, on the date of exercise (or if
there is no closing price for such date of exercise, then the last
preceding business day on which there was a closing price); or (ii) if
the Common Stock is traded in the over-the-counter market and
quotations are published on the NASDAQ quotation system (but not on
NMS), the closing bid price of the Common Stock on the date of exercise
as reported by NASDAQ (or if there are no closing bid prices for such
date of exercise, then the last preceding business day on which there
was a closing bid price); or (iii) if the Common Stock is traded in the
over-the-counter market but bid quotations are not published on NASDAQ,
the closing bid price per share for the Common Stock as furnished by a
broker-dealer which regularly furnishes price quotations for the Common
Stock.

1

If notice of the exercise of this option is
given by the person or persons other than you, TeamStaff may require,
as a condition to the exercise of this option, the submission to
TeamStaff of appropriate proof of the right of such person or person to
exercise this option.

5.    Certificate for the shares
purchased will be issued as soon as practicable. TeamStaff, however,
shall not be required to issue or deliver a certificate for any shares
until it has complied with all requirements of the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, any
stock exchange on which TeamStaff's Common Stock may then be
listed and all applicable state laws in connection with the issuance or
sale of such shares or the listing of such shares.

6.    Until
the issuance of the certificate for the shares, you or such other
person as may be entitled to exercise this option, shall have none of
the rights of a stockholder with respect to shares issuable upon
exercise of this option.

7.    This option is personal to the
Optionee and during the Optionee's lifetime may be exercised only
by the Optionee. This option shall not be transferable other than by
will or the laws of descent and distribution, and as may be permitted
under the Internal Revenue Code, the federal securities laws and the
rules and regulations promulgated thereunder. If notice of the exercise
of this option is given by the person or persons other than you,
TeamStaff may require, as a condition to the exercise of this option,
the submission to TeamStaff of appropriate proof of the right of such
person or person to exercise this option.

8.    In the event
that an option holder ceases to be an employee of TeamStaff or of any
subsidiary for any reason other than permanent disability (as
determined by the Board of Directors, or a committee of the board) or
death, this option shall automatically terminate; however, upon
termination of employment the Optionee shall continue to have the right
to exercise any unexercised portion of this option, which was otherwise
exercisable on the date of termination, for a period of three months
from the date on which the Optionee ceased to be so employed, but in no
event after the Expiration Date. In the event of the death of Optionee
during this three month period, this option shall be exercisable by his
or her personal representatives, heirs or legatees to the same extent
that the Optionee could have exercised this option if he or she had not
died, for three months from the date of death, but in no event after
the Expiration Date. In the event of the permanent disability of
Optionee while an employee of TeamStaff or of any subsidiary, this
option shall be exercisable for 365 days after the date of permanent
disability, but in no event after the Expiration Date. In the event of
the death of the Optionee while an employee of TeamStaff or any
Subsidiary, or during the 365 day period after the date of permanent
disability of the Optionee, that portion of the option which had become
exercisable on the date of death shall be exercisable by his or her
personal representatives, heir or legatees at any time prior to the
expiration of 365 days months from the date of the death of Optionee,
but in no event after the Expiration Date.

9.    This option
does not confer on the Optionee any right to continue in the employ of
TeamStaff or interfere in any way with the right of TeamStaff to
determine the terms of the Optionee's employment.

10.    In the event of a reorganization, recapitalization, stock
split, stock dividend, combination of shares, merger, consolidation,
rights offering, or any other change in the corporate structure or
stock of TeamStaff, the Board shall make such adjustments, if any, as
it deems appropriate in the number and kind of shares covered by this
option, or in the option price, or both. Notwithstanding any provision
to the contrary, the Committee or the Board may cancel, amend, alter or
supplement any term or provision of this option to avoid the penalty
provisions of Section 4999 of the Code.

If, in the event of a
merger or consolidation, the Company is not the surviving corporation,
and in the event that the agreements governing such merger or
consolidation do not provide for the substitution of new options or
other rights in substitution of this option or for the express
assumption of this options by the surviving corporation, or in the
event of the dissolution or liquidation of the Company, the Optionee
shall have the right not less than five days prior to the record date
for the determination of shareholders entitled to participate in such
merger, consolidation, dissolution or 

2

liquidation, to exercise his option, in whole
or in part, without regard to the vesting provisions in Section 2
above. In the event any then outstanding option is not exercised in its
entirety on or prior to the record date, this option shall terminate in
its entirety.

11.    This option shall be subject to the
requirement that if at any time the Board shall determine that the
registration, listing or qualification of the shares covered hereby
upon any securities exchange or under any federal or state law, or the
consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the granting of
this option or the purchase of the shares, this option may not be
exercised unless and until such registration, listing, qualification,
consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Board. The Board may require that the
person exercising this option shall make such representations and
agreements and furnish such information as it deems appropriate to
assure compliance with the foregoing or any other applicable legal
requirements.

12.    This option is intended to qualify for
"incentive stock option" treatment under the
provisions of Section 422A of the Internal Revenue Code of 1954, as
amended. However, you are urged to consult with your individual tax
advisor prior to exercising this option since the exercise of this
option may result in adverse tax consequences including the payment of
additional federal and/or state income taxes.

13.    TeamStaff shall have the power and the right to deduct or
withhold, or require a Optionee to remit to TeamStaff as a condition
precedent for the fulfillment of any option exercise, an amount
sufficient to satisfy Federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to
any taxable event arising as a result of this option. Whenever Shares
are to be issued or cash paid to a Optionee upon exercise of an option,
TeamStaff shall have the right to require the Optionee to remit to
TeamStaff, as a condition of exercise of the option, an amount
sufficient to satisfy federal, state and local withholding tax
requirements at the time of exercise. However, notwithstanding the
foregoing, to the extent that a Optionee is an insider ( as determined
by the Board of Directors), satisfaction of withholding requirements by
having TeamStaff withhold Shares may only be made to the extent that
such withholding of Shares (1) has met the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act, or (2) is a
subsequent transaction the terms of which were provided for in a
transaction initially meeting the requirements of an exemption under
Rule 16b-3 promulgated under the Exchange Act.

14.    All
notices hereunder to TeamStaff shall be delivered or mailed to the
following address:

TEAMSTAFF, INC.
 300 Atrium
Drive
 Somerset, New Jersey 08873
 Attention: Secretary

Such address for the service of notices may be changed at any time
provided notice of such change is furnished in advance to the
Optionee.

		
	Corporate Seal 	TEAMSTAFF,
INC.

		By:

	
			
	

		T. Kent
Smith
 President and Chief Executive Officer

Secretary:

	
		
	

Edmund C. Kenealy

Secretary

3

OPTION EXERCISE FORM

		
	TO: 	TeamStaff, Inc.
 300
Atrium Drive
 Somerset, NJ 08873
 Attn: Secretary

Gentlemen:

I irrevocably elect to exercise my right to
purchase            shares of Common Stock
covered by this Option Agreement and make full payment of the Exercise
Price of such shares as follows (PLEASE CHOOSE FORM OF PAYMENT).

    .    Cash Purchase. I hereby elect
to pay the exercise price in cash, and enclose a CERTIFIED CHECK (or
have wired payment) in the amount of
$                  .

    .    Cashless Exercise.    I have
enclosed              shares of Common
Stock of TeamStaff, Inc. in accordance with Section 4 of the Option
Agreement. I represent that I have owned the shares being delivered for
at least six months prior to the date of exercise.

    .    Combination of Cash and
Cashless. I elect to pay the exercise price in cash and stock, and
enclose a CERTIFIED CHECK (or have wired payment) in the amount of
$                  
and have enclosed              shares of
Common Stock of TeamStaff, Inc. in accordance with Section 4 of the
Option Agreement. I represents that I have owned the shares being
delivered for at least six months prior to the date of exercise.

I understand and agree that TeamStaff shall have the power
and the right to deduct or withhold, or require me to remit to
TeamStaff as a condition precedent for the fulfillment of any option
exercise, an amount sufficient to satisfy Federal, state, and local
taxes, domestic or foreign, required by law or regulation to be
withheld with respect to any taxable event arising as a result of this
option. Further, I acknowledge that TeamStaff shall have the right to
require me to remit to TeamStaff, as a condition of exercise of the
option, an amount sufficient to satisfy federal, state and local
withholding tax requirements at the time of exercise. However,
notwithstanding the foregoing, to the extent that a Optionee is an
insider (as determined by the Board of Directors), satisfaction of
withholding requirements by having TeamStaff withhold Shares may only
be made to the extent that such withholding of Shares (1) has met the
requirements of an exemption under Rule 16b-3 promulgated under the
Exchange Act, or (2) is a subsequent transaction the terms of which
were provided for in a transaction initially meeting the requirements
of an exemption under Rule 16b-3 promulgated under the Exchange
Act.

Further, I agree to promptly notify TeamStaff of
the sale of any of the shares I received upon exercise of this option
during the one year period commencing on the date I receive the
certificate for the shares.

Kindly deliver to me a
certificate representing the shares as follows:

INSTRUCTIONS FOR DELIVERY

Name:

	
			
	

(please
typewrite or print in block letters)

Address: 

	
			
	

	
			
	

	
			
	

Dated: 

	
			
	

		Signature 

	
			
	

		Print
Name:

	
			
	

4January
5, 2005

Dear Mr. Delaney:

We are pleased to offer
you a position as Senior Vice President of TeamStaff, Inc.
("TeamStaff" or "the
Company"). As we have discussed, this position will be
responsible for, among other
things:

		
	• 	general oversight and
development of the Company's temporary medical staffing vendor
management business;

		
	• 	sales and business
expansion of the Company's medical staffing vendor management
business;

		
	• 	promotion of the
relationships of the Company's medical staffing vendor management
business with employees, customers, alliance partners, suppliers and
others in the business community; and

		
	• 	such other responsibilities as may be
determined by the President and CEO of the Company.

In the
course of your duties, you will be required to undertake such travel as
is reasonably necessary to fulfill your responsibilities.

We
would like for you to start on January 5, 2005. This offer is
contingent upon a negative drug test.

In the following
paragraphs, I have outlined certain of the specifics of our
offer:

							
	1)    Title:		Senior
Vice President, TeamStaff, Inc. (subject to Board
approval)
	2)    Reporting
to:		T. Kent Smith, President and CEO
	3)    Status:		Regular,
full-time employee; provided that nothing in this agreement shall
preclude your ability to join other boards of directors provided the
underlying business of the corporation is noncompetitive with the
Company, a concurrent and continuing business relationship with the
Company's technology partner (Ringo), and/or a noncompetitive
heath care consulting practice through your own company as long as such
activities do not interfere with your duties as a regular, full-time
employee of the Company.
	 		TeamStaff will reimburse you
for the reasonable, out of pocket expenses you incur in maintaining a
home office for the conduct of the Company's business at your
premises. All other expenses shall be reimbursed in accordance with the
Company's then-current travel and expense reimbursement
policies.
	4)    Starting
Salary:		$5,384.62 bi-weekly ($140,000 annualized)
	

							
	5)    Incentive
Compensation:		During the term of your employment, you will be
paid incentive compensation monthly consisting of one percent of actual
revenue received by the Company for covered sales. After your period of
employment, you will continue to receive the aforesaid incentive
compensation for the duration of the initial term of any existing
agreement between the Company and the client. "Covered
sales" shall include all revenue received by the Company
following a presentation by you of the vendor management system and
menu of services offered by the Company to a prospective client and the
prospective client's entry into a contract for such system during
the term of your employment or any incremental increase in revenue from
an existing client as a result of its entry into a contract during the
term of your employment for the vendor management system offered by the
Company after your presentation of such system.
	6)    Stock Option
Award:		Subject to Board approval, you will be awarded an option
to purchase 100,000 shares of TeamStaff Common Stock, one half of which
will vest on the first anniversary of your employment commencement
date, the remainder of which will vest on the second anniversary of
your employment commencement date. The terms and conditions of your
option award are subject to the terms of the TeamStaff 2000
Employees' Stock Option Plan and your Option Award Agreement.
TeamStaff's CEO shall recommend that you, like other senior
executives, be considered for a grant of additional options at the same
frequency and in the same proportion as other senior executives of the
Company.
	7)    Employee
Benefit Program:		You will be eligible for all employee benefits
afforded regular full-time TeamStaff employees (summarized
below):
	 		•  Healthcare
Plan – Medical and Dental
coverage
	 		•  Life
Insurance – Company paid coverage of
$50,000
	 		•  Long
Term Disability Insurance (LTD) – Company
paid.
	 		•  401(k)
Savings Plan – Eligible to join the first of the month after 90
days of service. Company contributions begin the first quarter after
one year of continuous
service
	 		•  Holidays
– Seven (7) paid
holidays
	 		•  Paid
Time Off (PTO)
	8)  Non-Competition,
Confidentiality and Non-Solicitation Agreement, Insider Trading Policy,
and Employee Handbook:		You will be required to execute the
enclosed Non-Competition, Confidentiality and Non-Solicitation
Agreement and Insider Trading Policy as a condition of your employment.
Please sign both documents and return them to me. You will also be
required to execute acknowledgments appearing in our Employee
Handbook.
	

							
	9)    At-Will
Employment:		Employment at TeamStaff is at-will. Therefore,
nothing in this letter should be construed to be a contract of
employment or is otherwise intended to alter the at-will nature of your
employment; provided, however, should your employment with the Company
terminate yet you either: a) remain a director of the Company or b) are
nominated for re-election at the Company's next annual meeting of
shareholders but are not re-elected, TeamStaff will pay you at or near
the close of each fiscal year during your period of membership on the
Board (or what would have been your period of membership had you been
re-elected) an amount equal to the difference between any amounts you
receive (or would have received had you been re-elected) under the
Board's then-current non-employee director cash compensation
policy during such fiscal year and the amount you would have received
under the Board's then-current non-employee director cash
compensation policy had you been Chairman of the Audit Committee and a
member of the Management Resources and Compensation Committee as well
as a board member during such fiscal year; further provided, however,
that these payments will not be provided should you resign, die or
otherwise be removed from the Board or, in any event, for any period
beyond the expiration of the term of the class of directors elected at
the Company's next annual meeting of
shareholders.
	

Martin, we look forward to having
your experience and talent on board. If the foregoing is agreeable to
you, kindly execute this letter where indicated and return one copy to
me. Of course, please do not hesitate to call me if you have any
questions concerning this offer.

Very truly yours,

T. Kent Smith
 President and CEO

Accepted:                                                    

                    Martin Delaney

Date:                                                            

Enclosures

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]