Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.9

SUBORDINATION AGREEMENT

THIS SUBORDINATION AGREEMENT (“Agreement”),
dated as of April 29, 2008, is made by WHITEBOX
CONVERTIBLE ARBITRAGE PARTNERS, LP, for itself and in its capacity as collateral agent for the
Subordinated Creditors (in such capacity as collateral agent for the Subordinated Creditors,
together with any replacement or successor collateral agent, the “Subordinated Creditors’
Collateral Agent”), RADCLIFFE SPC, LTD., for and on behalf of the Class A Convertible Crossover
Segregated Portfolio, VICTORY PARK MASTER FUND, LTD., WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP,
GUGGENHEIM PORTFOLIO XXXI, LLC, PANDORA SELECT PARTNERS, LP, WHITEBOX INTERMARKET PARTNERS, LP,
CONTEXT ADVANTAGE MASTER FUND, L.P., on behalf of itself, Context Advantage Fund, LP, f/k/a Context
Convertible Arbitrage Fund, L.P., and Context Offshore Advantage Fund, Ltd., f/k/a Context
Convertible Arbitrage Offshore, Ltd., WHITEBOX SPECIAL OPPORTUNITIES FUND B PARTNERS, LP, GWIRTSMAN
FAMILY PARTNERS, LLC, LUCI ALTMAN, GREGORY BACHARACH, HOWARD BRILL, RICHARD GOLDMAN, KENNETH
MICHAELS, STEVEN PENNINGTON, and JAY WELLS (each a “Subordinated Creditor,” and, collectively, the
“Subordinated Creditors”), for the benefit of WELLS FARGO, NATIONAL ASSOCIATION (together with all
its participants, successors, and assigns, the “Senior Lender”), acting through its Wells Fargo
Business Credit operating division, for itself and as agent for the lenders now or hereafter
existing under the Senior Credit Agreement (defined below).

GLOBAL EMPLOYMENT HOLDINGS, INC., a Delaware corporation (“GEH”), GLOBAL EMPLOYMENT SOLUTIONS,
INC., a Colorado corporation (“Global”), EXCELL PERSONNEL SERVICES CORPORATION, an Illinois
corporation (“Excell”), FRIENDLY ADVANCED SOFTWARE TECHNOLOGY, INC., a New York corporation
(“Friendly”), TEMPORARY PLACEMENT SERVICE, INC., a Georgia corporation (“TPS”), SOUTHEASTERN
STAFFING, INC., a Florida corporation (“Southeastern”), SOUTHEASTERN PERSONNEL MANAGEMENT, INC., a
Florida corporation (“SPM”), MAIN LINE PERSONNEL SERVICES, INC., a Pennsylvania corporation (“Main
Line”), BAY HR, INC., a Florida corporation (“BHR”), SOUTHEASTERN GEORGIA HR, INC., a Georgia
corporation (“SGHR”), SOUTHEASTERN STAFFING II, INC., a Florida corporation (“SEII”), SOUTHEASTERN
STAFFING III, INC., a Florida corporation (“SEIII”), SOUTHEASTERN STAFFING IV, INC., a Florida
corporation (“SEIV”), SOUTHEASTERN STAFFING V, INC., a Florida corporation (“SEV”), SOUTHEASTERN
STAFFING VI, INC., a Florida corporation (“SEVI”), and KEYSTONE ALLIANCE, INC., a Florida
corporation (“Keystone”; GEH, Global, Excell, Friendly, TPS, Southeastern, SPM, Main Line, BHR,
SGHR, SEII, SEIII, SEIV, SEV, SEVI, and Keystone are each referred to herein as an “Obligor” and
collectively as the “Obligors”), are now or hereafter may be indebted to the Senior Lender, either
directly or indirectly, on account of loans or the other extensions of credit or financial
accommodations from the Senior Lender to the Obligors from time to time.

 

 

 

GEH and each Subordinated Creditor are parties to that certain Note Securities Purchase
Agreement, dated as of March 31, 2006 (as amended, the “Securities Purchase Agreement”), pursuant
to which GEH sold, and the Subordinated Creditors purchased, the Subordinated Notes
(as defined below). As a condition to the Subordinated Creditors’ entering into the Securities
Purchase Agreement, the Subordinated Creditors have required (i) that each Obligor (other than GEH)
execute and deliver to Subordinated Creditors’ Collateral Agent for the benefit of Subordinated
Creditors’ Collateral Agent and each of the other Subordinated Creditors a Guaranty with respect to
the obligations of GEH under the Subordinated Notes (each, a “Guaranty”, and collectively, the
“Guaranties”), and (ii) that each Obligor enter into (a) a security agreement providing for the
grant to Subordinated Creditors’ Collateral Agent for the benefit of Subordinated Creditors’
Collateral Agent and each of the other Subordinated Creditors, a security interest in the personal
property of each such Obligor and (b) a pledge agreement providing for the grant to Subordinated
Creditors’ Collateral Agent for the benefit of Subordinated Creditors’ Collateral Agent and each of
the other Subordinated Creditors, a security interest in certain personal property of each such
Obligor, as more specifically set forth in the pledge agreement, each to secure all of GEH’s
obligations under the Securities Purchase Agreement and the Subordinated Notes and the other
Obligors’ obligations under their Guaranties.

As a condition to making any loan or extension of credit to the Obligors, the Senior Lender
has required that each Subordinated Creditor and the Subordinated Creditors’ Collateral Agent
subordinate (i) the payment of its loans and other financial accommodations to the payment of any
and all indebtedness of the Obligors now or hereafter owing to the Senior Lender, and (ii) all
Liens in favor of the Subordinated Creditors’ Collateral Agent or the other Subordinated Creditors
to the Liens in favor of the Senior Lender, in each case as provided in this Agreement. Assisting
the Obligors in obtaining credit accommodations from the Senior Lender and subordinating its
interests pursuant to the terms of this Agreement are in each Subordinated Creditor’s best
interest.

ACCORDINGLY, in consideration of the loans and other financial accommodations that have been
made and may hereafter be made by the Senior Lender for the benefit of the Obligors, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Senior Lender and each Subordinated Creditor hereby agree as follows:

1. Definitions. As used herein, the following terms have the meanings set forth in
the recitals hereto and below:

“Agreement” means this Subordination Agreement, as the same may hereafter be amended,
supplemented or restated from time to time.

“Collateral” means all collateral now or hereafter securing payment of the Senior Lender
Indebtedness, including all proceeds thereof.

“Insolvency Event” is defined in Section 7 of this Agreement.

“Lien” means any security interest, mortgage, deed of trust, pledge, lien, charge,
encumbrance, title retention agreement or analogous instrument or device, including the interest of
each lessor under any capitalized lease and the interest of any bondsman under any payment or
performance bond, in, of or on any assets or properties of a Person, whether now owned or hereafter
acquired and whether arising by agreement or operation of law.

 

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“Obligor Payments” is defined in Section 3 of this Agreement.

“Obligor Default” means a Default or Event of Default as defined in any agreement or
instrument evidencing, governing, or issued in connection with the Senior Lender Indebtedness,
including, but not limited to, the Senior Credit Agreement or other Senior Loan Documents, or any
default under or breach of any such agreement or instrument.

“Payment in Full” or “Paid in Full” shall mean the payment in full in cash of the Senior
Lender Indebtedness and the irrevocable termination of all lending commitments under the Senior
Credit Agreement.

“Person” means any individual, corporation, partnership, joint venture, limited liability
company, association, joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of March 31,
2006, by and among GEH and the Subordinated Creditors.

“Senior Credit Agreement” means that certain Credit and Security Agreement dated as of April

 _____, 2008, by and among the Obligors and the Senior Lender as the same has been and may hereafter
be amended, supplemented or restated from time to time.

“Senior Lender Indebtedness” means all obligations arising under the Senior Credit Agreement
and other Senior Loan Documents and each and every debt, liability and obligation of every type and
description which any Obligor may now or at any time hereafter owe to the Senior Lender, whether
such debt, liability or obligation now exists or is hereafter created or incurred, and whether it
is or may be direct or indirect, due or to become due, absolute or contingent, primary or
secondary, liquidated or unliquidated, or joint, several or joint and several, all interest
thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs
and other charges accruing after the commencement of any case, proceeding or other action relating
to the bankruptcy, insolvency or reorganization of any Obligor, whether or not allowed in such
proceeding or other action), all renewals, extensions and modifications thereof and any notes
issued in whole or partial substitution therefor.

“Senior Loan Documents” means the Senior Credit Agreement and the other loan documents,
instruments, certificates, and agreements executed in connection therewith (other than the
Subordinated Notes and other documents, instruments, certificates, and agreements executed by the
Obligors in favor of the Subordinated Creditors and/or Subordinated Creditors’ Collateral Agent).

“Subordinated Indebtedness” means all obligations arising under each Subordinated Note and
each and every other debt, liability and obligation of every type and description which any Obligor
may now or at any time hereafter owe to any Subordinated Creditor, whether such debt, liability or
obligation now exists or is hereafter created or incurred, and whether it is or may be direct or
indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or
unliquidated, or joint, several or joint and several; provided, however, Subordinated Indebtedness
shall not include any debts, liabilities or obligations arising solely as a result of a
Subordinated Creditor’s ownership of preferred stock of GEH or common stock of GEH, which
debts, liabilities and obligations the Subordinated Creditors acknowledge and agree are
unsecured.

 

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“Subordinated Notes” means GEH’s Senior Secured Promissory Notes, dated as of March 31, 2006,
each payable to the order of a Subordinated Creditor, in the original aggregate principal amount of
$30,000,000, together with all renewals, extensions and modifications thereof and any note or notes
issued in substitution therefor. The Subordinated Notes are referred to herein individually each
as a “Subordinated Note”.

2. Subordination. Each Subordinated Creditor agrees that the payment of all of the
Subordinated Indebtedness is hereby expressly subordinated to the extent and in the manner
hereinafter set forth to the Payment in Full of the Senior Lender Indebtedness, and regardless of
any priority otherwise available to any Subordinated Creditor by law or by agreement, each
Subordinated Creditor agrees that the Senior Lender shall hold a first priority Lien in the
Collateral, and any Lien claimed therein by any Subordinated Creditor shall be and remain fully
subordinate for all purposes to the Lien of the Senior Lender therein for all purposes whatsoever.
Each Subordinated Creditor agrees that the Subordinated Indebtedness shall continue to be
subordinated to the Senior Lender Indebtedness even if the Senior Lender Indebtedness is
subordinated, avoided or disallowed under the United States Bankruptcy Code or other applicable
law.

3. Payments.

(a) Each Subordinated Creditor agrees that, so long as no Blockage Period (as defined below)
is then in effect, it shall accept only the following payments (the “Obligor Payments”): (i) the
principal balloon payment (but not prepayment) scheduled to be paid upon maturity of its
Subordinated Note, (ii) the scheduled payments (but not prepayments) of interest required to be
paid under its Subordinated Note, and (iii) the fees and penalties (but in no event for the payment
of any amounts related to redemption) due and payable to such Subordinated Creditor pursuant to the
Registration Rights Agreement, its Subordinated Note, or the Securities Purchase Agreement, so long
as, with respect to this clause (iii) only, (A) no Obligor Default has occurred and is continuing
or will occur as a result of or immediately following any such payment, (B) Global has delivered to
the Senior Lender prior written notice that such fees or penalties will be due and payable, which
notice shall be delivered to the Senior Lender at least five (5) business days prior to the date on
which such payment is due, and (C) the aggregate amount of such payment of fees and penalties shall
not exceed $375,000 during the term of this Agreement. Each Subordinated Creditor agrees that, upon
the occurrence of any Obligor Default and upon receipt by Subordinated Creditors’ Collateral Agent
of written notice from the Senior Lender of such occurrence (a “Blockage Notice”), no Obligor
Payment nor any other payment in cash or other property or otherwise (whether of principal,
interest, balloon or otherwise but excluding securities that are subordinated to the Senior Lender
Indebtedness to the same extent as, or more deeply than, the Subordinated Indebtedness is
subordinated to the Senior Lender Indebtedness) on account of any Subordinated Indebtedness shall
be made by or on behalf of any Obligors, and each Subordinated Creditor agrees that it shall not,
without the Senior Lender’s prior written consent, sue for, take, receive or accept any such
payment, directly or indirectly, from or on behalf of any Obligor, or exercise any right of or
permit any setoff in respect of the Subordinated Indebtedness, during a period (the “Blockage
Period”) commencing on the date of
receipt of a Blockage Notice by Subordinated Creditors’ Collateral Agent and ending 180 days
thereafter, or on such earlier date, if any, on which all Senior Lender Indebtedness has been Paid
in Full or such Obligor Default is waived in writing by the Senior Lender. There shall be at least
30 consecutive days during which no Blockage Period is in effect during any period of 360
consecutive days.

 

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(b) The Senior Lender and each Subordinated Creditor agrees that, if at any time following a
blockage of Obligor Payments to the Subordinated Creditors pursuant to Section 3(a) of this
Agreement the Subordinated Creditors are no longer prohibited from receiving any such payments with
respect to the Subordinated Indebtedness pursuant to the terms of this Agreement, each Subordinated
Creditor shall be entitled to receive all of the Obligor Payments due and owing to it with respect
to the Subordinated Indebtedness that have been blocked together with any default interest to the
extent provided for by the Subordinated Notes, so long as each of the following conditions
precedent are satisfied (as determined by Senior Lender in Senior Lender’s reasonable discretion):
(i) no Obligor Default will occur as a result of or immediately following such payments in the
aggregate, and (ii) the Availability (as defined in the Senior Credit Agreement), after giving
effect to any such Obligor Payments and after deducting from the Borrowing Base (as defined in the
Senior Credit Agreement) the aggregate amount of the Obligors’ accounts payable that is more than
60 days past due, is not less than $1,500,000. Obligors shall provide a certificate to Senior
Lender, with such back up information as reasonably requested by Senior Lender, confirming that the
conditions precedent set forth in the immediately preceding sentence have been satisfied prior to
making any Obligor Payments that were previously blocked.

(c) The Senior Lender hereby agrees not to consent to any request or otherwise waive its right
to prohibit GEH or any of its subsidiaries from making any payment with respect to any holders of
GEH’s Series A Preferred Stock or common stock during any Blockage Period, unless and until such
time as the Subordinated Creditors shall have received any and all Obligor Payments prohibited
during such Blockage Period.

4. Receipt of Prohibited Payments. Each Subordinated Creditor agrees that, if any
Subordinated Creditor receives any payment on the Subordinated Indebtedness that such Subordinated
Creditor is not entitled to receive under the provisions of this Agreement, such Subordinated
Creditor will hold the amount so received in trust for the Senior Lender and will forthwith turn
over such payment to the Senior Lender in the form received (except for the endorsement of any
Subordinated Creditor where necessary) for application to then-existing Senior Lender Indebtedness
(whether or not due), in such manner of application as the Senior Lender may deem appropriate. Each
Subordinated Creditor agrees that, if any Subordinated Creditor exercises any right of setoff which
such Subordinated Creditor is not permitted to exercise under the provisions of this Agreement,
such Subordinated Creditor will promptly pay over to the Senior Lender, in immediately available
funds, an amount equal to the amount of the claims or obligations offset. Each Subordinated
Creditor agrees that, if a Subordinated Creditor fails to make any endorsement required under this
Agreement, the Senior Lender, or any of its officers or employees or agents on behalf of the Senior
Lender, is hereby irrevocably appointed as the attorney-in-fact (which appointment is coupled with
an interest) for each Subordinated Creditor to make such endorsement in any Subordinated Creditor’s
name.

 

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5. Action on Subordinated Indebtedness. Subject to Section 6(e) of this Agreement,
each Subordinated Creditor agrees that it will not commence any action or proceeding against any
Obligor to recover all or any part of the Subordinated Indebtedness, or join with any creditor
(unless the Senior Lender shall so join) in bringing any proceeding against any Obligor under any
bankruptcy, reorganization, readjustment of debt, arrangement of debt receivership, liquidation or
insolvency law or statute of the federal or any state government, or take possession of, sell, or
dispose of any Collateral, or exercise or enforce any right or remedy available to such
Subordinated Creditor with respect to any such Collateral, unless and until the Senior Lender
Indebtedness has been Paid in Full.

6. Action Concerning Collateral.

(a) Each Subordinated Creditor agrees that, notwithstanding any Lien now held or hereafter
acquired by any Subordinated Creditor, until the Senior Lender Indebtedness has been Paid in Full,
the Senior Lender may take possession of, sell, dispose of, and otherwise deal with all or any part
of the Collateral, and may enforce any right or remedy available to it with respect to any Obligor
or the Collateral, all without notice to or consent of any Subordinated Creditor except as
specifically required by applicable law; provided, however, that if any such sale or disposition
results in a cash surplus after the Senior Lender Indebtedness has been Paid in Full, to the extent
permitted by law, such surplus shall be paid to Subordinated Creditors’ Collateral Agent, for
application in accordance with the terms of the Subordinated Notes.

(b) In addition, and without limiting the generality of the foregoing, each Subordinated
Creditor agrees that, if (i) an Obligor Default has occurred and is continuing, (ii) any Obligor or
the Senior Lender intends to sell or otherwise dispose of any Collateral to an unrelated third
party outside the ordinary course of business, (iii) the Senior Lender has given written notice
thereof to Subordinated Creditors’ Collateral Agent, and (iv) each Subordinated Creditor has
failed, within ten (10) business days after receipt by Subordinated Creditors’ Collateral Agent of
such notice, to purchase for cash the Senior Lender Indebtedness for the full amount thereof
(including, but not limited to, all outstanding principal, accrued and unpaid interest, fees, and
costs, and an amount equal to all prepayment fees or premiums that would be payable if the Senior
Lender Indebtedness was being repaid by the Obligors), each Subordinated Creditor shall be deemed
to have consented to such sale or disposition, to have released any Lien it may have in such
Collateral and to have authorized the Senior Lender or its agents to file partial releases (and any
related financing statements such as “in-lieu” financing statements under Part 7 of Article 9 of
the Uniform Commercial Code (“UCC”)) with respect to such Collateral.

(c) Each Subordinated Creditor agrees that the purchase by a Subordinated Creditor of the
Senior Lender Indebtedness shall be expressly made without representation or warranty of any kind
by the Senior Lender as to the Senior Lender Indebtedness, the Collateral or otherwise and without
recourse to the Senior Lender, except that the Senior Lender shall represent and warrant: (i) the
amount of the Senior Lender Indebtedness being purchased from it (but without representation or
warranty as to the collectability, validity or enforceability of such Senior Lender Indebtedness)
and (ii) that the Senior Lender owns the Senior Lender Indebtedness free and clear of any Liens
created by it. Each Subordinated Creditor agrees that, upon the purchase by a Subordinated Creditor
of the Senior Lender Indebtedness, such

 

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Subordinated Creditor shall indemnify and hold harmless the Senior Lender from and against all
loss, cost, damage or expense (including attorneys’ fees and legal expenses) suffered or incurred
by the Senior Lender arising from or in any way related to the act or omissions of such
Subordinated Creditor after the purchase. As a condition precedent to Senior Lender’s obligation to
sell the Senior Lender Indebtedness to the Subordinated Creditors, (1) the Subordinated Creditors
shall assume (pursuant to such assumption agreements as are acceptable to Senior Lender in Senior
Lender’s reasonable discretion) all remaining funding obligations or commitments to the Obligors
(whether contingent or otherwise), including, without limitation, all existing obligations (whether
directly or indirectly) under or in respect of letters of credit or other credit accommodations
provided to, or for the benefit or account of, any Obligor, and (2) the Senior Lender shall be
released (pursuant to such agreements as are acceptable to Senior Lender in Senior Lender’s
reasonable discretion) from all such obligations and commitments.

(d) Each Subordinated Creditor agrees that the Senior Lender shall have no duty to preserve,
protect, care for, insure, take possession of, collect, dispose of, or otherwise realize upon any
of the Collateral, and in no event shall the Senior Lender be deemed any Subordinated Creditor’s
agent with respect to the Collateral. Each Subordinated Creditor agrees that all proceeds received
by the Senior Lender with respect to any Collateral may be applied, first, to pay or reimburse the
Senior Lender for all costs and expenses (including reasonable attorneys’ fees) incurred by the
Senior Lender in connection with the collection of such proceeds, and, second, to any Senior Lender
Indebtedness secured by the Senior Lender’s Lien in that Collateral in any order that it may
choose.

(e) Each Subordinated Creditor and the Senior Lender agree that, upon the occurrence and
during the continuance of an event of default under the Subordinated Notes, which event of default
is the result of the failure to make any payment of principal or interest with respect to
Subordinated Indebtedness, subject at all times to the provisions of Section 3 and Section 4 of
this Agreement and commencing 180 days after receipt by the Senior Lender of written notice from
Subordinated Creditors’ Collateral Agent of such event of default with respect to the failure to
make any payment of principal or interest under the Subordinated Notes, each Subordinated Creditor
may accelerate the payment of its portion of the Subordinated Indebtedness and Subordinated
Creditors’ Collateral Agent may take action to enforce its Liens on the Collateral, but, in the
case of such action to enforce its Liens on the Collateral, only so long as the Senior Lender is
not pursuing in good faith the exercise of its security interest in the Collateral or other
remedies as a “secured creditor” under Article 9 of the UCC, or attempting to vacate any stay of
enforcement of its Liens on, a material portion of the remaining Collateral, including, but not
limited to, any or all of the following: solicitation of bids from third parties to conduct the
liquidation of all or a material portion of the remaining Collateral, the engagement or retention
of sales brokers, marketing agents, investment bankers, accountants, appraisers, auctioneers or
other third parties for the purposes of valuing, marketing, promoting and selling a material
portion of the remaining Collateral, the commencement of any action to foreclose on its Liens on
all or any material portion of the remaining Collateral, notification of account debtors to make
payments to the Senior Lender or its agents, any action to take possession of all or any material
portion of the remaining Collateral or commencement of any legal proceedings or actions against or
with respect to all or any material portion of the remaining Collateral; provided that,
notwithstanding the foregoing, such 180 day period shall be tolled during such time as the Senior
Lender or Subordinated Creditors’ Collateral Agent is stayed from enforcing its Liens on

 

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a material portion of the remaining Collateral. In addition to and not by way of limitation of
the foregoing, each Subordinated Creditor agrees that at no time shall it take any action
prejudicial to or inconsistent with the Senior Lender’s rights and senior priority secured position
with respect to any Obligor or the assets or property of any Obligor including, but not limited to,
that no Subordinated Creditor shall take any action that will impede, interfere with, restrict, or
restrain the exercise by the Senior Lender of its rights and remedies under the Senior Credit
Agreement or any other agreement, instrument or document evidencing or related to the Senior Lender
Indebtedness. Each Subordinated Creditor agrees that, if any Subordinated Creditor shall attempt
any remedies under a Subordinated Note or attempt any other action prohibited or restricted under
this Agreement, any Obligor or the Senior Lender may interpose as a defense or plea the making of
this Agreement and the Senior Lender may intervene and interpose such defense in its name or in the
name of any Obligor or the Senior Lender may by virtue of this Agreement restrain the enforcement
thereof in the name of any Obligor or the Senior Lender. Each Subordinated Creditor agrees that,
notwithstanding anything to the contrary, any payment or distribution of cash, assets, securities
(for clarification purposes, not those securities issuable upon conversion of its Subordinated
Note) or other property of any Obligor received by any Subordinated Creditor as repayment of the
Subordinated Indebtedness due to action taken by a Subordinated Creditor under this Section 6(e)
prior to all Senior Lender Indebtedness being Paid in Full shall be held by such Subordinated
Creditor in trust for and forthwith turned over to the Senior Lender in the form received (except
for the endorsement of any Subordinated Creditor where necessary) for application to the Senior
Indebtedness until such Senior Indebtedness is Paid in Full.

(f) The Senior Lender and each Subordinated Creditor agree that this Section 6 shall not be
construed in any way to limit or impair the right of (i) any Subordinated Creditor to bid for and
purchase any portion of the Collateral at any private or judicial foreclosure upon such Collateral
initiated by the Senior Lender, (ii) subject to Section 5 of this Agreement, any Subordinated
Creditor to join (but not control) any foreclosure or other judicial lien enforcement proceeding
with respect to such Collateral initiated by the Senior Lender thereon, so long as it does not
delay or interfere with the exercise by the Senior Lender of its rights and (iii) subject to the
terms of this Agreement, the right of any Subordinated Creditor to receive payments from the
proceeds of the collection, sale or other disposition of Collateral.

(g) Each Subordinated Creditor agrees that it will not require or allow any direct or indirect
subsidiary of GEH (other than the other Obligors) to become an obligor of the Subordinated
Indebtedness, including, without limitation, requiring or allowing any such subsidiary to guaranty
the obligations of any Obligor under the Subordinated Indebtedness or to pledge assets to secure
the repayment of the Subordinated Indebtedness, unless such subsidiary has become a borrower or
obligor under the Senior Credit Agreement and other Senior Loan Documents and the Senior Lender has
taken all steps necessary to perfect its Liens on such subsidiary’s assets, as determined by the
Senior Lender in its reasonable discretion.

 

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7. Bankruptcy and Insolvency. Each Subordinated Creditor agrees that, in the event of
any receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization
or arrangement with creditors, whether or not pursuant to bankruptcy law (each, an “Insolvency
Event”), the sale of all or substantially all of the assets of any Obligor, dissolution,
liquidation or any other marshalling of the assets or liabilities of any Obligor, it will file all
claims, proofs of
claim or other instruments of similar character necessary to enforce the obligations of such
Obligor in respect of the Subordinated Indebtedness and will hold in trust for the Senior Lender
and promptly pay over to the Senior Lender in the form received (except for the endorsement of such
Subordinated Creditor where necessary) for application to the then-existing Senior Lender
Indebtedness, any and all moneys, dividends or other assets received in any such proceedings on
account of the Subordinated Indebtedness, unless and until the Senior Lender Indebtedness has been
Paid in Full and the Senior Lender’s Lien in the Collateral has been terminated. Each Subordinated
Creditor agrees that, if any Subordinated Creditor shall fail to take any such action, the Senior
Lender, as attorney-in-fact for each Subordinated Creditor, may take such action on each
Subordinated Creditor’s behalf (provided that the Senior Lender may only file claims and proofs of
claim in respect of the Subordinated Indebtedness if there shall remain not more than 30 days
before such action is barred, prohibited or otherwise cannot be taken). Each Subordinated Creditor
hereby irrevocably appoints the Senior Lender, or any of its officers or employees on behalf of the
Senior Lender, as the attorney-in-fact for such Subordinated Creditor (which appointment is coupled
with an interest) with the power but not the duty, upon the occurrence, and during the continuance,
of an Insolvency Event, to demand, sue for, collect and receive any and all such moneys, dividends
or other assets and give acquittance therefor and to file any claim, proof of claim or other
instrument of similar character, to vote claims comprising Subordinated Indebtedness to accept or
reject any plan of partial or complete liquidation, reorganization, arrangement, composition or
extension and to take such other action in the Senior Lender’s own name or in the name of any
Subordinated Creditor as the Senior Lender may deem necessary or advisable for the enforcement of
the agreements contained herein; and each Subordinated Creditor agrees that it will execute and
deliver to the Senior Lender such other and further powers-of-attorney or instruments as the Senior
Lender may reasonably request in order to accomplish the foregoing. Each Subordinated Creditor
agrees that, if the Senior Lender desires to permit the use of cash collateral or to provide
post-petition financing to any Obligor, such Subordinated Creditor shall not object to the same on
the grounds that its interests are not being adequately protected; provided that such Subordinated
Creditor is granted the same liens and security interests on the post-petition Collateral that may
be granted to or for the benefit of the Senior Lender, junior only to the liens or security
interests of the Senior Lender therein.

8. Restrictive Legend; Transfer of Subordinated Indebtedness. Each Subordinated
Creditor agrees that it will cause its Subordinated Note and all other notes, bonds, debentures or
other instruments evidencing its portion of the Subordinated Indebtedness or any part thereof to
contain a specific statement thereon to the effect that the indebtedness thereby evidenced is
subject to the provisions of this Agreement, and each Subordinated Creditor will mark its books
conspicuously to evidence the subordination effected hereby. Attached hereto as Exhibit A is a true
and correct copy of each Subordinated Note bearing such legend. Each Subordinated Creditor agrees
that, at the request of the Senior Lender, such Subordinated Creditor shall deposit with the Senior
Lender its Subordinated Note and all of the other notes, bonds, debentures or other instruments
evidencing the Subordinated Indebtedness, which notes, bonds, debentures or other instruments may
be held by the Senior Lender so long as any Senior Lender Indebtedness remains outstanding or the
Senior Lender’s Lien in the Collateral has not been terminated. Each Subordinated Creditor
represents and warrants that it is the lawful holder of its Subordinated Note and it has not
transferred any interest therein to any other Person. Each Subordinated Creditor agrees that it
will not assign, transfer or pledge to any other Person any of the Subordinated Indebtedness
without delivering to the Senior Lender, simultaneously with such

 

-9-

 

assignment, transfer or pledge, a joinder agreement, in form and substance acceptable to the
Senior Lender, executed by such assignee, transferee or pledgee pursuant to which such assignee,
transferee or pledgee is bound, as a Subordinated Creditor, by all of the terms and conditions of
this Agreement; provided, however, that each Subordinated Creditor may pledge a Subordinated Note
in connection with a bona fide margin account or other loan or financing arrangement secured by
such Subordinated Note without providing a joinder agreement, but, upon any assignment or transfer
of such a pledged Subordinated Note to such pledgee or any other assignee or transferee of such
Subordinated Note, such Subordinated Creditor shall cause such pledgee, assignee or transferee to
deliver to the Senior Lender, simultaneously with such assignment or transfer, a joinder agreement,
in form and substance acceptable to the Senior Lender, executed by such pledgee, transferee or
assignee pursuant to which such pledgee, transferee or assignee is bound, as a Subordinated
Creditor, by all of the terms and conditions of this Agreement. Notwithstanding the failure to
execute or deliver any such joinder agreement, the subordination effected hereby shall survive any
assignment, transfer or pledge of all or any portion of the Subordinated Indebtedness, and the
terms of this Agreement shall be binding upon the successors, assigns and transferees of each
Subordinated Creditor. Each Subordinated Creditor agrees that it will not, without the prior
written consent of the Senior Lender, agree to a discharge or forgiveness of the Subordinated
Indebtedness.

9. Amendment of Subordinated Indebtedness. Until the Senior Lender Indebtedness is
Paid in Full, and anything contained in the Subordinated Notes or any of the Senior Loan Documents
to the contrary notwithstanding, the Subordinated Creditors shall not, without the prior written
consent of the Senior Lender, agree to any amendment or supplement to, or other modification of,
the Subordinated Notes or the Subordinated Indebtedness the effect of which is to (a) increase the
maximum principal amount of the Subordinated Indebtedness, (b) increase the rate of interest (cash
or otherwise) on any of the Subordinated Indebtedness, (c) change to an earlier date any date upon
which regularly scheduled payments of principal or interest on the Subordinated Indebtedness are
due, (d) add or make more restrictive any event of default or any covenant with respect to the
Subordinated Indebtedness or make any change to any event of default or any covenant which would
have the effect of making such event of default or covenant more restrictive, (e) change the final
maturity date of any Subordinated Indebtedness to a date that is earlier than the date which is 180
days after the scheduled maturity date of the Senior Lender Indebtedness, (f) change any
redemption, put or prepayment provisions of the Subordinated Indebtedness, (g) alter the
subordination provisions with respect to the Subordinated Indebtedness, including, without
limitation, subordinating the Subordinated Indebtedness to any other indebtedness, or (h) change or
amend any other term of the Subordinated Notes if such change or amendment would result in an
Obligor Default, increase the obligations of any Obligor or confer additional material rights on
the Subordinated Creditors or any holder of the Subordinated Indebtedness in a manner adverse to
any Obligor or the Senior Lender. Notwithstanding the foregoing, this Agreement shall not prohibit
or restrict (i) any Subordinated Creditor’s ability to convert its Subordinated Note pursuant to
the terms thereof or GEH from issuing, or such Subordinated Creditor from receiving, the securities
issuable upon conversion thereof or (ii) GEH from issuing shares of GEH’s common stock to the
Subordinated Creditors in exchange for the payment of principal and/or interest on the Subordinated
Notes.

 

-10-

 

10. Continuing Effect. Each Subordinated Creditor agrees that this Agreement shall
constitute a continuing agreement of subordination, and the Senior Lender may, without notice to
or consent by any Subordinated Creditor, modify any term of the Senior Lender Indebtedness in
reliance upon this Agreement. Each Subordinated Creditor agrees that, without limiting the
generality of the foregoing, the Senior Lender may, at any time and from time to time, without the
consent of or notice to any Subordinated Creditor and without incurring responsibility to any
Subordinated Creditor or impairing or releasing any of the Senior Lender’s rights or any of the
obligations of any Subordinated Creditor hereunder:

(a) change the interest rate or change the amount of payment or extend the time for payment or
renew or otherwise alter the terms of any Senior Lender Indebtedness or any instrument evidencing
the same in any manner;

(b) sell, exchange, release or otherwise deal with any property at any time securing payment
of the Senior Lender Indebtedness or any part thereof;

(c) release anyone liable in any manner for the payment or collection of the Senior Lender
Indebtedness or any part thereof;

(d) exercise or refrain from exercising any right against any Obligor or any other Person
(including the Subordinated Creditor); and

(e) apply any sums received by the Senior Lender, by whomsoever paid and however realized, to
the Senior Lender Indebtedness in such manner as the Senior Lender shall deem appropriate.

11. No Commitment. Each Subordinated Creditor agrees that none of the provisions of
this Agreement shall be deemed or construed to constitute or imply any commitment or obligation on
the part of the Senior Lender to make any future loans or other extensions of credit or financial
accommodations to any Obligor.

Each Subordinated Creditor hereby waives any and all right to require the marshalling of
assets in connection with the exercise of any of the Senior Lender’s remedies permitted by
applicable law or agreement.

12. Bailment. With respect to any Collateral in the Senior Lender’s possession or
control consisting of certificates representing shares of stock of any direct or indirect
subsidiary of GEH (“Specified Collateral”), the Senior Lender will act as pledgeholder for each
Subordinated Creditor until the Payment in Full of the Senior Lender Indebtedness, whereupon, to
the extent permitted by law, possession of, control or the other rights with respect to any such
Specified Collateral remaining shall be promptly transferred to Subordinated Creditors’ Collateral
Agent; and immediately upon such transfer of possession, control or other rights, Subordinated
Creditors’ Collateral Agent shall become the pledgeholder of the Specified Collateral; provided,
however, that if Senior Lender is being replaced by a new senior lender, then Senior Lender may
transfer the Specified Collateral directly to such replacement senior lender. The Subordinated
Creditors’ Collateral Agent shall promptly deliver to the Senior Lender any Specified Collateral
that is now in or in the future comes into its possession or control. Each Subordinated Creditor
acknowledges and agrees that: (i) the Senior Lender makes no representation or warranty whatsoever
as to the nature, extent, description, validity or priority of any Specified Collateral or the
Liens upon any Specified Collateral; (ii) while any Specified Collateral is held by the Senior

 

-11-

 

Lender, the Senior Lender shall not have any liability to any Subordinated Creditor for any
losses, damages, claims, or liability of any kind to the extent arising out of the holding of such
Specified Collateral; (iii) the Senior Lender need not act as a pledgeholder for any Subordinated
Creditor with respect to any Collateral other than Specified Collateral; (iv) each Subordinated
Creditor shall promptly deliver to the Senior Lender any Collateral, that is now in or in the
future comes into its possession or control, in which a security interest may be perfected under
the UCC or other relevant law only by possession or control or with respect to which the rights or
interests granted to such Subordinated Creditor may be precluded by or inconsistent with the rights
or interests granted to the Senior Lender; and (v) the priority of the Senior Lender’s and each
Subordinated Creditor’s Liens in Specified Collateral shall be governed by the terms of this
Agreement.

13. Third Parties. Nothing contained in this Agreement is intended to or shall affect
or limit, in any way, the rights that the Senior Lender or the Subordinated Creditor have with
respect to any third parties. Subject to the terms hereof, the Senior Lender and the Subordinated
Creditor hereby specifically reserve all of their respective rights against the Obligors and all
other third parties.

14. Notice. The Senior Lender and each Subordinated Creditor agrees that all notices
and other communications hereunder shall be in writing and shall be (a) personally delivered, (b)
transmitted by registered mail, postage prepaid, or (c) transmitted by telecopy, in each case
addressed to the party to whom notice is being given at its address as set forth below:

If to the Senior Lender:

Wells Fargo Bank, National Association,

acting through its Wells Fargo Business Credit operating division

MAC-C7300-210

1740 Broadway

Denver, Colorado 80274

Attention: Martin E. Tracy

Telecopier: (303) 863-4904

If to any Subordinated Creditor:

Whitebox Convertible Arbitrage Partners, LP

3033 Excelsior Boulevard, Suite 300

Minneapolis, MN 55146

Attention: Jeannie Sonstegard

Telecopier: (612) 253-6100

or at such other address as may hereafter be designated in writing by that party. All such notices
or other communications shall be deemed to have been given on (i) the date received if delivered
personally, (ii) three days after the date of posting if delivered by mail, or (iii) the date of
transmission if delivered by telecopy.

 

-12-

 

15. Conflict in Agreements. Each Subordinated Creditor agrees that, if the
subordination provisions of any instrument evidencing Subordinated Indebtedness conflict with the
terms of this Agreement, the terms of this Agreement shall govern the relationship between the
Senior Lender and each Subordinated Creditor.

16. No Waiver. Each Subordinated Creditor agrees that no waiver shall be deemed to be
made by the Senior Lender of any of its rights hereunder unless the same shall be in writing signed
on behalf of the Senior Lender, and each such waiver, if any, shall be a waiver only with respect
to the specific matter or matters to which the waiver relates and shall in no way impair the rights
of the Senior Lender or the obligations of any Subordinated Creditor to the Senior Lender in any
other respect at any time.

17. Binding Effect; Acceptance. The Senior Lender and each Subordinated Creditor
agrees that this Agreement shall be binding upon each Subordinated Creditor, each Subordinated
Creditor’s successors and assigns and shall inure to the benefit of the Senior Lender and its
participants, successors and assigns irrespective of whether this or any similar agreement is
executed by any other creditor of any Obligor. Each Subordinated Creditor agrees that notice of
acceptance by the Senior Lender of this Agreement or of reliance by the Senior Lender upon this
Agreement is hereby waived by each Subordinated Creditor.

18. Agent for Subordinated Creditors. The Subordinated Creditors’ Collateral Agent
shall act as agent for the Subordinated Creditors and any other holders of the Subordinated
Indebtedness under this Agreement, such that any notices and communications to be delivered to or
by the Subordinated Creditors under this Agreement shall be made to or obtained from the
Subordinated Creditors’ Collateral Agent and shall be binding on the Subordinated Creditors as if
directly received by or obtained from the Subordinated Creditors.

19. Miscellaneous. The section headings herein are included for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. This
Agreement may be executed in any number of counterparts, each of which shall be an original, but
all of which together shall constitute one instrument. Delivery of an executed counterpart of this
Agreement by telefacsimile shall be equally as effective as delivery of an original executed
counterpart of this Agreement. For clarification purposes and without implication that the contrary
would otherwise be true, nothing contained in this Agreement shall prohibit or restrict any
Subordinated Creditor’s ability to convert its Subordinated Note pursuant to the terms thereof or
GEH from issuing, or such Subordinated Creditor from receiving, the securities issuable upon
conversion thereof.

20. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or
written agreements between the Subordinated Creditors’ Collateral Agent, the Subordinated
Creditors, and the Senior Lender, their affiliates, and Persons acting on their behalf with respect
to the subject matter of this Agreement, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters covered herein. No
provision of this Agreement may be amended other than by an amendment or modification in writing
signed by the Senior Lender and the holders of at least 66-2/3% of the aggregate principal amount
of Subordinated Notes issued under the Securities Purchase Agreement, and any amendment to or
modification of this Agreement made in conformity with the provisions of
this Section 20 shall be binding on the Subordinated Creditors’ Collateral Agent and all the
Subordinated Creditors.

 

-13-

 

21. Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury Trial. This
Agreement shall be governed by and construed in accordance with the substantive laws (other than
conflict laws) of the State of Colorado. Each of the Senior Lender, the Subordinated Creditors’
Collateral Agent, and the Subordinated Creditors consents to the personal jurisdiction of the state
and federal courts located in the State of Colorado in connection with any controversy related to
this Agreement, waives any argument that venue in any such forum is not convenient, and agrees that
any litigation initiated by any of them in connection with this Agreement may be venued in either
the state or federal courts located in the City and County of Denver, Colorado. EACH OF THE SENIOR
LENDER, THE SUBORDINATED CREDITORS’ COLLATERAL AGENT, AND THE SUBORDINATED CREDITORS WAIVE ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

[The remainder of this page intentionally left blank.]

 

-14-

 

IN WITNESS WHEREOF, the Senior Lender, the Subordinated Creditors’ Collateral Agent, and each
Subordinated Creditor have caused this Agreement to be executed and delivered by its officer
thereunto duly authorized as of the date and year first above-written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	WELLS FARGO BANK NATIONAL 

ASSOCIATION, acting through its Wells	 	 	 	PANDORA SELECT PARTNERS, L.P.
	Fargo Business Credit operating division	 	 	 	By:	 	Pandora Select Advisors LLC
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Martin E. Tracy	 	 	 	By:	 	/s/ Jonathan Wood
	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Martin E. Tracy	 	 	 	 	 	Name:	 	Jonathan Wood
	 
	 	Its:	 	Vice President	 	 	 	 	 	Its:	 	Director, CFO
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	RADCLIFFE SPC, LTD., for and on behalf of the
Class A Convertible Crossover Segregated Portfolio	 	 	 	VICTORY PARK MASTER FUND, LTD.
	 	 	 	 	By:	 	/s/ Matthew Ray
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Name:	 	Matthew Ray
	By:	 	RG Capital Management, L.P.	 	 	 	 	 	Its:	 	Principal
	By:
	 	RGC Management Company, L.L.C.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Gerald F. Stahlecker	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Gerald F. Stahlecker	 	 	 	 	 	 	 	 
	 
	 	Its:	 	Managing Director	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	GUGGENHEIM PORTFOLIO XXXI, LLC	 	 	 	WHITEBOX CONVERTIBLE

ARBITRAGE PARTNERS, LP, as a
	By:	 	Guggenheim Advisors, LLC	 	 	 	Subordinated Creditor and as Collateral Agent
	By:
	 	Whitebox Advisors LLC	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Whitebox Convertible Arbitrage Advisors LLC
	By:	 	/s/ Jonathan Wood	 	 	 	By:	 	Whitebox Advisors LLC
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name:	 	Jonathan Wood	 	 	 	 	 	 
	 
	 	Its:	 	Director, CFO	 	 	 	By:	 	/s/ Jonathan Wood
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Name:	 	Jonathan Wood
	 
	 	 	 	 	 	 	 	 	 	Its:	 	Director, CFO
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	WHITEBOX INTERMARKET	 	 	 	CONTEXT ADVANTAGE MASTER FUND,
	PARTNERS, LP	 	 	 	LP, on behalf of itself, Context Advantage Fund,
LP, f/k/a Context Convertible Arbitrage Fund, L.P.,and Context
	By:	 	Whitebox Intermarket Advisors LLC	 	 	 	 Offshore Advantage Fund, Ltd., f/k/a Context 
	By:
	 	 Whitebox Advisors LLC	 	 	 	Convertible Arbitrage Offshore, Ltd.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Context Capital Management LLC, its
	By:	 	/s/ Jonathan Wood	 	 	 	 	 	General Partner and Investment Advisor
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Jonathan Wood	 	 	 	 	 	 	 	 
	 
	 	Its:	 	Director, CFO	 	 	 	By:	 	/s/ Michael S. Rosen
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Name:	 	Michael S. Rosen
	 
	 	 	 	 	 	 	 	 	 	Its:	 	Managing Member

 

-15-

 

	 	 	 	 	 	 	 	 	 
	WHITEBOX SPECIAL OPPORTUNITIES FUND B	 	GWIRTSMAN FAMILY PARTNERS, LLC
	 PARTNERS, LP	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	Whitebox Special Opportunities Fund B Advisors LLC	 	By:	 	/s/ Charles Gwirtsman
	 
	 	 	 	 	 	 	 	 
	 
	 	By: Whitebox Advisors LLC	 	 	 	Name: Charles Gwirtsman
	
	 		 		 	 	 	Title: Manager
	By:
	 	/s/ Jonathan Wood	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name: Jonathan Wood	 	 	 	 
	 	 	Its: Director, CFO	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Luci Altman	 	/s/ Jay Wells
	 	 	 
	Luci Altman	 	Jay Wells
	 
	 	 	 	 	 	 	 	 
	/s/ Gregory Bacharach	 	/s/ Howard Brill
	 	 	 
	Gregory Bacharach	 	Howard Brill
	 
	 	 	 	 	 	 	 	 
	/s/ Richard Goldman	 	/s/ Kenneth Michaels
	 	 	 
	Richard Goldman	 	Kenneth Michaels
	 
	 	 	 	 	 	 	 	 
	/s/ Steven Pennington	 	 
	 	 	 	 	 
	Steven Pennington	 	 	 	 

 

-16-

 

Acknowledgment And Agreement Of Obligors

Each of the undersigned hereby (i) acknowledges receipt of the foregoing Subordination
Agreement; (ii) consents to the terms and execution thereof, (iii) reaffirms all obligations to the
Senior Lender pursuant to the terms of the Senior Credit Agreement and other Senior Loan Documents;
and (iv) acknowledges that the Senior Lender may amend, restate or otherwise modify the
Subordination Agreement, without notifying or obtaining the consent of the undersigned and without
impairing the liability of the undersigned under the Senior Credit Agreement and the other Senior
Loan Documents.

	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Chief Financial Officer	 	 	 	Its: Chief Financial Officer
	 
	 	 	 	 	 	 
	EXCELL PERSONNEL SERVICES CORPORATION	 	SOUTHEASTERN STAFFING, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President
	 
	 	 	 	 	 	 
	FRIENDLY ADVANCED SOFTWARE TECHNOLOGY, INC.	 	MAIN LINE PERSONNEL SERVICES, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President
	 
	 	 	 	 	 	 
	TEMPORARY PLACEMENT SERVICE, INC.,

f/k/a Michael & Associates, Inc. and successor by merger to Temporary Placement Service, Inc.	 	SOUTHEASTERN GEORGIA HR, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President
	 
	 	 	 	 	 	 
	BAY HR, INC.	 	SOUTHEASTERN PERSONNEL MANAGEMENT, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President

 

-17-

 

	 	 	 	 	 	 	 
	SOUTHEASTERN STAFFING II, INC.	 	SOUTHEASTERN STAFFING III, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President
	 
	 	 	 	 	 	 
	SOUTHEASTERN STAFFING IV, INC.	 	SOUTHEASTERN STAFFING V, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President
	 
	 	 	 	 	 	 
	SOUTHEASTERN STAFFING VI, INC.	 	KEYSTONE ALLIANCE, INC.
	 
	By:
	 	/s/ Daniel T. Hollenbach	 	By:	 	/s/ Daniel T. Hollenbach
	 
	 	 	 	 	 	 
	 
	 	Name: Daniel T. Hollenbach	 	 	 	Name: Daniel T. Hollenbach
	 
	 	Its: Executive Vice President	 	 	 	Its: Executive Vice President

 

-18-

 

EXHIBIT A

Copies of Subordinated Notes

[attached hereto]

 

- 19 -Filed by Bowne Pure Compliance

 

Exhibit 10.10

AGREEMENT TO ENTER INTO NEW SUBORDINATION AGREEMENT

THIS AGREEMENT TO ENTER INTO NEW SUBORDINATION AGREEMENT (this “Agreement”),
dated as of April 29, 2008, is between GLOBAL EMPLOYMENT HOLDINGS, INC. (the “Company”), WHITEBOX CONVERTIBLE
ARBITRAGE PARTNERS, LP, in its capacity as Collateral Agent for the Noteholders (as defined below)
(the “Collateral Agent”) and the holders of the Notes (as defined below) listed on the signature
pages hereto (individually, a “Noteholder” and collectively, the “Noteholders”). Unless otherwise
noted herein, capitalized terms used but not defined herein shall have the meanings set forth in
the Subordination Agreement, dated as of February 28, 2007, by and among CAPITALSOURCE FINANCE LLC
(“CapitalSource”), the Collateral Agent and the Noteholders and (the “Old Subordination
Agreement”).

WHEREAS:

A. The Company and the Noteholders are parties to the Notes Securities Purchase Agreement,
dated as of March 31, 2006, as amended, pursuant to which the Company issued and the Noteholders
purchased Senior Secured Convertible Notes, dated as of March 31, 2006 (the “Notes”).

B. Pursuant to the Old Subordination Agreement, the debt evidenced by the Notes is
subordinated to the Senior Lender Indebtedness.

C. The Company’s subsidiary, Global Employment Solutions, Inc., has proposed a senior debt
refinancing (the “Refinancing”) whereby the Senior Credit Agreement will be terminated and the
Senior Lender Indebtedness will be paid in full to CapitalSource and a new credit agreement will be
entered into with Wells Fargo Bank, National Association (“Wells Fargo”) to permit borrowings of up
to $26,000,000 (the “New Credit Agreement”).

D. Pursuant to Section 12 of the Old Subordination Agreement, upon payment in full of the
Senior Lender Indebtedness, CapitalSource is required to transfer possession and control of the
Specified Collateral in its possession to the Collateral Agent; and immediately upon such transfer,
the Collateral Agent shall become the pledgeholder of the Specified Collateral. In order to induce
Wells Fargo to enter into the New Credit Agreement, the Collateral Agent and the Noteholders have
agreed that Wells Fargo shall have possession and control of the Specified Collateral, which
Specified Collateral shall be held by Wells Fargo pursuant to the Subordination Agreement dated as
of the date hereof between Wells Fargo and the Noteholders, in substantially the form of Exhibit A
hereto (the “New Subordination Agreement”). In order to induce the Noteholders to enter into the
New Subordination Agreement the Company has agreed to offer to repurchase Notes on the terms set
forth below.

 

 

 

NOW, THEREFORE, the Company, the Collateral Agent and the Noteholders hereby agree as follows:

1. New Subordination Agreement and Transfer of Specified Collateral. The undersigned
Noteholders hereby agree to execute and deliver the New Subordination Agreement and that,
notwithstanding Section 12 of the Old Subordination Agreement, the Specified Collateral shall be
transferred by CapitalSource directly to Wells Fargo, as directed by Wells Fargo, upon execution
and delivery of the New Subordination Agreement by all parties thereto.

2. Initial Note Repurchase. Subject to the closing of the Refinancing, the Company
hereby agrees to make an offer to repurchase, pro rata from the Noteholders, on the ten day
anniversary of the date hereof (or, if not a Business Day, on the next Business Day thereafter)
(the “Repurchase Date”) at least $3,000,000 aggregate principal amount of Notes at a price equal to
95% of the principal amount thereof plus interest accrued through the Repurchase Date. Each
Noteholder wishing to sell Notes to the Company pursuant to this Section 2 shall deliver a
completed Repurchase Election Form (attached as Exhibit B hereto) to Dan Hollenbach at the Company
no later than the close of business on the second Business Day after the date hereof. To the
extent that a Noteholder elects to have less than its pro rata share of Notes repurchased, other
Noteholders may elect to have the Company purchase an amount equal to the remaining Notes of such
Noteholder on a pro rata basis if so indicated on their Repurchase Election Forms. Each Noteholder
electing to have Notes repurchased shall surrender its Note to the Company in exchange for a new
Note reflecting the Noteholders remaining Notes.

3. Additional Note Repurchase. Subject to the closing of the Refinancing, the Company
agrees that it will not repurchase Notes other than as set forth in Section 2 and pursuant to an
additional note repurchase program for up to $3,000,000 aggregate principal amount of Notes at the
same price and on the same terms set forth in Section 2. Following completion of the second
repurchase program, the Company and each Noteholder may negotiate individually with respect to the
terms, if any, of additional Note repurchases.

4. Further Assurances. The Company, the Collateral Agent and each undersigned
Noteholder shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and
documents, as any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

5. Signatures; Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed to be an original and
all of which counterparts, taken together, shall constitute but one and the same instrument.
Delivery of an executed counterpart of this Agreement by fax or other electronic means shall be
equally as effective as delivery of an original executed counterpart of this Agreement. Any party
delivering an executed counterpart of this Agreement by fax or other electronic means also shall
deliver an original executed counterpart of this Agreement but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding effect of this
Agreement.

 

2

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be executed and
delivered as of the date first written above.

	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Howard Brill	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Name: Howard Brill	 	 	 	 
	 
	 	Title: President and Chief Executive Officer	 	 	 	 
	 
	 	 	 	 	 	 
	CONTEXT ADVANTAGE MASTER FUND, LP, on behalf
of itself, Context Advantage Fund, LP, f/k/a Context Convertible Arbitrage Fund, L.P., and
Context Offshore Advantage Fund, Ltd., f/k/a Context Convertible Arbitrage Offshore, Ltd.	 	VICTORY PARK CAPITAL, LTD.
	 
	 	 	 	 	 	 
	By:
	 	Context Capital Management LLC, its	 	By:	 	/s/ Matthew Ray
	 
	 	 	 	 	 	 
	 
	 	General Partner and Investment Advisor	 	 	 	Name: Matthew Ray
	 
	 	 	 	 	 	Title: Principal
	 
	 	 	 	 	 	 
	By:
	 	/s/ Michael Rosen	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Name: Michael Rosen	 	 	 	 
	 
	 	Title: Managing Member	 	 	 	 
	 
	 	 	 	 	 	 
	RADCLIFFE SPC, LTD., for and on behalf of the
Class A Convertible Crossover Segregated Portfolio	 	WHITEBOX SPECIAL OPPORTUNITIES FUND B

PARTNERS, LP
	 
	 	 	 	 	 	 
	By:
	 	RG Capital Management, L.P.	 	By:	 	Whitebox Special Opportunities Fund B AdvisorsLLC
	By:
	 	RGC Management Company, L.L.C.	 	By:	 	Whitebox Advisors LLC
	 
	 	 	 	 	 	 
	By:
	 	/s/ Gerald F. Stahlecker	 	By:	 	/s/ Jonathan Wood
	 
	 	 	 	 	 	 
	 
	 	Name: Gerald F. Stahlecker	 	 	 	Name: Jonathan Wood
	 
	 	Title: Managing Director	 	 	 	Its: Director, CFO

 

 

 

	 	 	 	 	 	 	 
	GUGGENHEIM PORTFOLIO XXXI, LLC	 	PANDORA SELECT PARTNERS, LP
	 
	 	 	 	 	 	 
	By:
	 	Guggenheim Advisors, LLC	 	By:	 	Pandora Select Advisors LLC
	By:
	 	Whitebox Advisors LLC	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Jonathan Wood	 	By:	 	/s/ Jonathan Wood
	 
	 	 	 	 	 	 
	 
	 	Name: Jonathan Wood	 	 	 	Name: Jonathan Wood
	 
	 	Title: Director, CFO	 	 	 	Title: Director, CFO
	 
	 	 	 	 	 	 
	WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP,
as a Noteholder and as Collateral Agent	 	WHITEBOX INTERMARKET PARTNERS, LP
	 
	 	 	 	 	 	 
	By:
	 	Whitebox Convertible Arbitrage Advisors LLC	 	By:	 	Whitebox Intermarket Advisors LLC
	By:
	 	Whitebox Advisors LLC	 	By:	 	Whitebox Advisors LLC
	 
	 	 	 	 	 	 
	By:
	 	/s/ Jonathan Wood	 	By:	 	/s/ Jonathan Wood
	 
	 	 	 	 	 	 
	 
	 	Name: Jonathan Wood	 	 	 	Name: Jonathan Wood
	 
	 	Title: Director, CFO	 	 	 	Title: Director, CFO
	 
	 	 	 	 	 	 
	GWIRTSMAN FAMILY PARTNERS, LLC	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Charles Gwirtsman	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Name: Charles Gwirtsman	 	 	 	 
	 
	 	Title: President	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Luci Altman	 	/s/ Gregory Bacharach
	 	 	 
	Luci Altman	 	Gregory Bacharach
	 
	 	 	 	 	 	 
	/s/ Howard Brill	 	/s/ Richard Goldman
	 	 	 
	Howard Brill	 	Richard Goldman
	 
	 	 	 	 	 	 
	/s/ Kenneth Michaels	 	/s/ Steven Pennington
	 	 	 
	Kenneth Michaels	 	Steven Pennington
	 
	 	 	 	 	 	 
	/s/ Jay Wells	 	 	 	 
	 	 	 	 	 
	Jay Wells	 	 	 	 

 

 

 

EXHIBIT A

[insert New Subordination Agreement]

 

A-1

 

EXHIBIT B

REPURCHASE ELECTION FORM

The undersigned Noteholder elects to have the following amount of Notes repurchased:

	 	 	 
	
         
full pro rata share

	 	(indicate by check or “x”)
	 	 	 
	or
	 	 
	 	 	 
	$                                        

	 	(aggregate principal amount, ie face amount, if less than pro rata share is elected)

In addition, the undersigned Noteholder elects to purchase up to the following aggregate principal
amount (ie, face amount) of Notes, if available:

$                                        

	 	 	 	 	 
	Printed Name of Noteholder:
	 	 	 	 
	 

	 	 	 	 
	(add signature block as needed)

	 	 	 	 
	 
	 	 	 	 
	Authorized Signature:
	 	 	 	 
	 

	 	 	 	 

Return completed form to Dan Hollenbach at 303-216-9533 (fax) or
dhollenbach@gesnetwork.com.

 

B-1

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