Document:

Exhibit 10.1

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT

THIS SECOND AMENDMENT (this “Amendment”), dated as of April 29, 2009, is entered into by and
between 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., f/k/a Michaels &
Associates, Inc. and successor by merger to Temporary Placement Service, Inc., a Georgia
corporation (“TPS”), GLOBAL EMPLOYMENT SOLUTIONS PEO INC., f/k/a Southeastern Staffing, Inc., a
Florida corporation (“Southeastern”), GLOBAL EMPLOYMENT SOLUTIONS PEO V INC., f/k/a Southeastern
Personnel Management, Inc., a Florida corporation (“SPM”), MAIN LINE PERSONNEL SERVICES, INC., a
Pennsylvania corporation (“Main Line”), GLOBAL EMPLOYMENT SOLUTIONS PEO III INC., f/k/a Bay HR,
Inc., a Florida corporation (“BHR”), GLOBAL EMPLOYMENT SOLUTIONS PEO IV INC., f/k/a Southeastern
Georgia HR, Inc., a Georgia corporation (“SGHR”), GLOBAL EMPLOYMENT SOLUTIONS PEO II INC., f/k/a
Southeastern Staffing II, Inc., a Florida corporation (“SEII”), GLOBAL EMPLOYMENT SOLUTIONS PEO VI
INC., f/k/a Southeastern Staffing III, Inc., a Florida corporation (“SEIII”), GLOBAL EMPLOYMENT
SOLUTIONS PEO VII INC., f/k/a Southeastern Staffing IV, Inc., a Florida corporation (“SEIV”),
GLOBAL EMPLOYMENT SOLUTIONS PEO VIII INC., f/k/a Southeastern Staffing V, Inc., a Florida
corporation (“SEV”), GLOBAL EMPLOYMENT SOLUTIONS PEO IX INC., f/k/a Southeastern Staffing VI, Inc.,
a Florida corporation (“SEVI”), and KEYSTONE ALLIANCE, INC., a Florida corporation (“Keystone”)
(Global, Excell, Friendly, TPS, Southeastern, SPM, Main Line, BHR, SGHR, SEII, SEIII, SEIV, SEV,
SEVI, and Keystone are each referred to herein as a “Borrower” and collectively as the
“Borrowers”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”), acting through its Wells
Fargo Business Credit operating division.

RECITALS

The Borrowers and the Lender are parties to a Credit and Security Agreement dated as of
April 29, 2008 (as amended from time to time, the “Credit Agreement”). Capitalized terms used in
these recitals have the meanings given to them in the Credit Agreement unless otherwise specified.

The Borrowers have requested that certain amendments be made to the Credit Agreement, which
the Lender is willing to make pursuant to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein contained, it is agreed as follows:

1. Defined Terms. Capitalized terms used in this Amendment which are defined in the
Credit Agreement shall have the same meanings as defined therein, unless otherwise defined herein.
In addition, Section 1.1 of the Credit Agreement is amended by adding or amending, as the case may
be, the following definitions:

“2009 Term Advance” is defined in Section 2.17.

 

 

 

“2009 Term Note” means the Borrowers’ term promissory note, payable to the
order of the Lender, dated as of April 29, 2009, and any note or notes issued in
substitution therefore, as the same may be renewed and amended from time to time, and all
replacements thereto.

“Advance” means a Revolving Advance, a Term Advance or the 2009 Term Advance.

“Availability” means (i) with respect to all Borrowers on a consolidated basis,
the difference between (x) the aggregate Borrowing Base for all Borrowers and (y) the sum of
(A) the outstanding principal balance of the Revolving Note, (B) the L/C Amount, (C) the
Borrowing Base Reserve, (D) the Tax Reserve and (E) the Indebtedness that all Borrowers on a
consolidated basis owe to the Lender that has not yet been advanced on the Revolving Note,
and the dollar amount that the Lender in its reasonable discretion then determines to be a
reasonable determination of the Borrowers’ aggregate credit exposure with respect to any
swap, derivative, foreign exchange, hedge, deposit, treasury management or other similar
transaction or arrangement offered to the Borrowers by the Lender that is not described in
Article II of this Agreement and any indebtedness owed by the Borrowers to Wells Fargo
Merchant Services, L.L.C., and (ii) with respect to any Borrower individually, the
difference between (x) the Borrowing Base for that Borrower and (y) the sum of (A) the
outstanding principal balance of Revolving Advances made to that Borrower, (B) the L/C
Amount for that Borrower, (C) the Borrowing Base Reserve related to that Borrower and (D)
the Indebtedness that such Borrower on a consolidated basis owes to the Lender that has not
yet been advanced on the Revolving Note, and the dollar amount that the Lender in its
reasonable discretion then determines to be a reasonable determination of such Borrower’s
aggregate credit exposure with respect to any swap, derivative, foreign exchange, hedge,
deposit, treasury management or other similar transaction or arrangement offered to such
Borrower by the Lender that is not described in Article II of this Agreement and any
indebtedness owed by such Borrower to Wells Fargo Merchant Services, L.L.C.

“Excess Cash Flow” means, for a given period, the sum of (a) Net Income, before
tax, plus (b) depreciation, amortization and other non-cash items, minus (c) Capital
Expenditures and the amount of the Borrowers’ long-term debt and capitalized leases which
become due during such period including under the Term Note and the 2009 Term Note, minus
(d) taxes actually paid with cash, each such amount described in clauses (a) through (d) as
determined for such period in accordance with GAAP.

“Floating Rate” means:

(a) with respect to the Revolving Advances evidenced by the Revolving Note, an
annual interest rate equal to (i) during the period from April 29, 2009 to and
including June 14, 2009, the WFBC Base Rate plus two and one quarter of one percent
(2.25%) and (ii) on June 15, 2009 and thereafter, the WFBC Base Rate plus two and
one half of one percent (2.50%); and

 

2

 

(b) with respect to the Term Advances evidenced by the Term Note and 2009 Term
Advance evidenced by the 2009 Term Note, an annual interest rate equal to (i) during
the period from April 29, 2009 to and including June 14, 2009, the WFBC Base Rate
plus three and one half of one percent (3.50%) and (ii) on June 15, 2009 and
thereafter, the WFBC Base Rate plus four and three quarters of one percent (4.75%),

which interest rate shall, in each case, change whenever the WFBC Base Rate changes.

“Loan Documents” means this Agreement, the Revolving Note, the Term Note, the
2009 Term Note, each Guaranty, each Subordination Agreement, each L/C Application, each
Standby Letter of Credit Agreement, each Commercial Letter of Credit Agreement, and the
Security Documents, together with every other agreement, note, document, contract or
instrument to which the Borrowers now or in the future may be a party and which is required
by the Lender.

“Maximum Line Amount” means (a) prior to April 29, 2009, $20,000,000 and (b) on
and after April 29, 2009, $13,000,000, unless, in each case, this amount is reduced pursuant
to Section 2.11, in which event it means such lower amount.

“Note” means the Revolving Note, the Term Note or the 2009 Term Note, and
“Notes” means the Revolving Note, the Term Note and the 2009 Term Note.

“Tax Reserve” means, on May 31, 2009, $75,000, which amount shall be increased
by an additional $75,000 on the last day of each month during the period from June 1, 2009
to and including December 31, 2009 and which amount shall be increased further after
December 31, 2009, as determined by the Lender in its sole discretion after good faith
negotiations with the Borrowers which negotiations shall not extend beyond January 31, 2010.

2. Section 2.7(c) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

“(c) Default Interest Rate. At any time during any Default Period or following the
Termination Date, in the Lender’s sole discretion and without waiving any of its other
rights or remedies, the principal of the Revolving Note, the Term Note and the 2009 Term
Note shall bear interest at the Default Rate or such lesser rate as the Lender may
determine, effective as of the first day of the month in which any Default Period begins
through the last day of such Default Period, or any shorter time period that the Lender may
determine. The decision of the Lender to impose a rate that is less than the Default Rate
or to not impose the Default Rate for the entire duration of the Default Period shall be
made by the Lender in its sole discretion and shall not be a waiver of any of its other
rights and remedies, including its right to retroactively impose the full Default Rate for
the entirety of any such Default Period or following the Termination Date.”

 

3

 

3. Section 2.8(c) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

“(c) Collateral Exam Fees. The Borrowers shall pay the Lender, on demand, fees in
connection with any collateral exams, audits or inspections conducted by or on behalf of the
Lender of any Collateral or any Borrower’s operations or business, including any surveys
conducted by the Lender with respect to any Borrower prior to the execution of this
Agreement, at the rates established from time to time by the Lender as its collateral exam
fees (which fees are currently $125 per hour per collateral examiner), together with all
actual out-of-pocket costs and expenses incurred in conducting any such collateral
examination or inspection.”

4. Article II is hereby amended by a new Section 2.17 and a new Section 2.18 to read in their
entirety as follows:

“Section 2.17 The 2009 Term Advance. The Lender agrees, subject to the terms
and conditions of this Agreement, to make a single advance to the Borrowers (the “2009 Term
Advance”) in the amount of $2,100,000. The Borrowers’ joint and several obligation to pay
the 2009 Term Advance shall be evidenced by the 2009 Term Note and shall be secured by the
Collateral as provided in Article III. The Borrowers shall make the request for the 2009
Term Advance no later than the Cut-off Time on the Business Day on which the Borrowers wish
to receive the 2009 Term Advance. Such request shall be by a Person authorized pursuant to
Section 2.2(a). Upon fulfillment of the applicable conditions set forth in Article IV, the
Lender shall deposit the proceeds of the 2009 Term Advance by crediting the same to the
Borrowers’ demand deposit account specified in Section 2.2(d). Upon the Lender’s request,
the Borrowers shall promptly confirm such request by executing and delivering an appropriate
confirmation certificate to the Lender. The Borrowers shall be obligated to repay the 2009
Term Advance notwithstanding the Lender’s failure to receive such confirmation and
notwithstanding the fact that the Person requesting the same was not in fact authorized to
do so. Any request for the 2009 Term Advance, whether written or telephonic, shall be
deemed to be a representation by the Borrowers, upon which the Lender may rely, that the
Borrowers are in compliance with the conditions set forth in Section 4.2 as of the time of
the request. The 2009 Term Advance may not be made through the Loan Manager.

Section 2.18 Payment of the 2009 Term Note.

(a) So long as no Event of Default has occurred and is continuing or will occur
immediately following any such prepayment, all voluntary prepayments with respect to
the 2009 Term Note shall be applied first to any accrued and unpaid interest related
to the amount of such prepayment and then to the most remote principal installment
or installments then unpaid.

 

4

 

(b) The outstanding principal balance of the 2009 Term Note shall be due and
payable as follows:

(i) Beginning on August 3, 2009, and on the first day of each month
thereafter, in substantially equal monthly installments equal to $350,000;
provided, however, that, if the outstanding principal
balance of the Revolving Note plus the L/C Amount exceeds zero, the
Borrowers may not make a principal payment under the 2009 Term Note without
the prior written consent of the Lender so long as (A) on the date such
principal payment is due, an Event of Default resulting from a default under
Section 6.2 or an Event of Default under Section 7.1(a) has occurred and is
continuing or would occur immediately following any such payment and (B)
Availability immediately following any such payment, measured during the
period beginning on the date such principal payment is due through the end
of the Business Day following the date such principal payment is due, is
equal to or less than $1,000,000; and

(ii) On the earlier of January 4, 2010 or the Termination Date of the
Credit Facility, the entire unpaid principal balance of the 2009 Term Note
and all unpaid interest accrued thereon shall also be fully due and
payable.”

5. Article III of the Credit Agreement is hereby amended by adding a new Section 3.9 to read
in its entirety as follows:

“Section 3.9 Termination. The Lender shall, at the Borrowers’ joint and
several expense, release or terminate any filings or other agreements that perfect the
Security Interest, provided that there are no suits, actions, proceedings or claims pending
or threatened against any Indemnitee under this Agreement with respect to any Indemnified
Liabilities, upon the Lender’s receipt of the following, in form and content satisfactory to
the Lender: (i) cash payment in full of all Indebtedness and a completed performance by the
Borrowers with respect to its other obligations under this Agreement, (ii) evidence that the
commitment of the Lender to make Advances under the Credit Facility or under any other
facility with any Borrower has been terminated, (iii) a release of all claims against the
Lender by each Borrower relating to the Lender’s performance and obligations under the Loan
Documents, and (iv) an agreement each Borrower, each Guarantor, and any new lender to any
Borrower to indemnify the Lender for any payments received by the Lender that are applied to
the Indebtedness as a final payoff that may subsequently be returned or otherwise not paid
for any reason.”

 

5

 

6. Section 6.1(d) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

“(d) Projections. (i) No later than 15 days before the last day of each fiscal year of
the Borrowers, each Borrower’s projected balance sheets, income statements, statements of
cash flow and projected Availability for each month of the succeeding fiscal year, each in
reasonable detail, representing such Borrower’s good faith projections
of such Borrower’s budget for such succeeding fiscal year; and, not later than 60 days
after the last day of each fiscal year of the Borrowers, each Borrower’s Board of Directors’
approval of such budget; provided, that if such Board of Directors fails to approve such
budget in the form delivered to the Lender, the Lender may declare an Event of Default
hereunder, and (ii) no later than Tuesday of each week, the Borrowers’ projected daily cash
flow and projected daily Availability for each of the succeeding 13 weeks, each in
reasonable detail, representing the Borrowers’ good faith projections for each such
succeeding week.”

7. Section 6.15 of the Credit Agreement is hereby amended and restated to read in its entirety
as follows:

“6.15 Insurance. Each Borrower shall at all times maintain insurance with
insurers acceptable to the Lender, in such amounts and on such terms (including deductibles)
as may from time to time be reasonably required by the Lender, but in all events in such
amounts and against such risks as is usually carried by companies engaged in similar
business and owning similar properties in the same general areas in which such Borrower
operates, which shall include, as applicable and without limitation, business interruption
insurance (including force majeure coverage), hazard coverage on an “all risks” basis for
all tangible Collateral, and theft and physical damage coverage for Collateral consisting of
motor vehicles. All insurance policies must contain an appropriate lender’s interest
endorsement or clause, and name the Lender as an additional insured.”

8. Subsection (a) of Section 7.1 of the Credit Agreement is hereby amended and restated to
read in its entirety as follows:

“(a) Default in the payment of the Revolving Note, the Term Note, the 2009 Term Note,
any Obligation of Reimbursement, or any default with respect to any other Indebtedness due
from any Borrower to the Lender as such Indebtedness becomes due and payable;”

9. No Other Changes. Except as explicitly amended by this Amendment, all of the terms
and conditions of the Credit Agreement shall remain in full force and effect and shall apply to any
advance or letter of credit thereunder.

10. Amendment Fee. The Borrowers jointly and severally agree to pay the Lender as of
the date hereof a fully earned, non-refundable fee in the amount of $58,000 in consideration of the
Lender’s execution and delivery of this Amendment.

11. Conditions Precedent. This Amendment shall be effective when the Lender shall
have received an executed original hereof, together with each of the following, each in substance
and form acceptable to the Lender in its sole discretion:

(a) The Acknowledgment and Agreement of Guarantors set forth at the end of this Amendment,
duly executed by each Guarantor.

(b) The 2009 Term Note, duly executed on behalf of each Borrower.

 

6

 

(c) A Certificate of the Secretary or Assistant Secretary of each Borrower certifying as to
(i) the resolutions of the board of directors of each Borrower approving the execution and delivery
of this Amendment, (ii) the fact that the articles of incorporation and bylaws of each Borrower,
which were certified and delivered to the Lender pursuant to the Certificates of Authority of each
Borrower’s secretary, assistant secretary or authorized officer, each dated as of April 29, 2008,
continue in full force and effect and have not been amended or otherwise modified except as set
forth in the Certificate to be delivered, and (iii) certifying that the officers and agents of each
Borrower who have been certified to the Lender, pursuant to the Certificates of Authority of each
Borrower’s secretary, assistant secretary or authorized officer, each dated as of April 29, 2008,
as being authorized to sign and to act on behalf of such Borrower continue to be so authorized or
setting forth the sample signatures of each of the officers and agents of each Borrower authorized
to execute and deliver this Amendment and all other documents, agreements and certificates on
behalf of each Borrower.

(d) A Continuing Guaranty, duly executed by Howard Brill.

(e) A Deposit Account Control Agreement, duly executed by Howard Brill.

(f) A Waiver of Interest, duly executed by Melissa Brill.

(g) Payment of the fee described in Paragraph 10.

(h) Such other matters as the Lender may require.

12. Representations and Warranties. Each Borrower hereby represents and warrants to
the Lender as follows:

(a) Each Borrower has all requisite power and authority to execute this Amendment and any
other agreements or instruments required hereunder and to perform all of its obligations hereunder
and thereunder, and this Amendment and all such other agreements and instruments have been duly
executed and delivered by such Borrower and constitute the legal, valid and binding obligation of
such Borrower, enforceable in accordance with its terms.

(b) The execution, delivery and performance by each Borrower of this Amendment and any other
agreements or instruments required hereunder have been duly authorized by all necessary corporate
action and do not (i) require any authorization, consent or approval by any governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) violate
any provision of any law, rule or regulation or of any order, writ, injunction or decree presently
in effect, having applicability to such Borrower, or the articles of incorporation or by-laws of
such Borrower, or (iii) result in a breach of or constitute a default under any indenture or loan
or credit agreement or any other agreement, lease or instrument to which such Borrower is a party
or by which it or its properties may be bound or affected.

(c) All of the representations and warranties contained in Article V of the Credit Agreement
are correct on and as of the date hereof as though made on and as of such date, except to the
extent that such representations and warranties relate solely to an earlier date.

 

7

 

13. References. All references in the Credit Agreement to “this Agreement” shall be
deemed to refer to the Credit Agreement as amended hereby; and any and all references in the
Security Documents to the Credit Agreement shall be deemed to refer to the Credit Agreement as
amended hereby.

14. No Waiver. The execution of this Amendment and the acceptance of all other
agreements and instruments related hereto shall not be deemed to be a waiver of any Default or
Event of Default under the Credit Agreement or a waiver of any breach, default or event of default
under any Loan Document or other document held by the Lender, whether or not known to the Lender
and whether or not existing on the date of this Amendment.

15. Release. Each Borrower, and each Guarantor by signing the Acknowledgment and
Agreement of Guarantors set forth below, each hereby absolutely and unconditionally releases and
forever discharges the Lender, and any and all participants, parent entities, subsidiary entities,
affiliated entities, insurers, indemnitors, successors and assigns thereof, together with all of
the present and former directors, officers, agents and employees of any of the foregoing, from any
and all claims, demands or causes of action of any kind, nature or description, whether arising in
law or equity or upon contract or tort or under any state or federal law or otherwise, which such
Borrower or such Guarantor has had, now has or has made claim to have against any such Person for
or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of
time to and including the date of this Amendment, whether such claims, demands and causes of action
are matured or unmatured or known or unknown.

16. Costs and Expenses. Each Borrower hereby reaffirms its agreement under the Credit
Agreement to pay or reimburse the Lender on demand for all costs and expenses incurred by the
Lender in connection with the Loan Documents, including without limitation all reasonable fees and
disbursements of legal counsel. Without limiting the generality of the foregoing, each Borrower
specifically agrees to pay all fees and disbursements of counsel to the Lender for the services
performed by such counsel in connection with the preparation of this Amendment and the documents
and instruments incidental hereto. Each Borrower hereby agrees that the Lender may, at any time or
from time to time in its sole discretion and without further authorization by any Borrower, make a
loan to any Borrower under the Credit Agreement, or apply the proceeds of any loan, for the purpose
of paying any such fees, disbursements, costs and expenses and the fee required under Paragraph 10
of this Amendment.

17. Miscellaneous. This Amendment and the Acknowledgment and Agreement of Guarantors
may be executed in any number of counterparts, each of which when so executed and delivered shall
be deemed an original and all of which counterparts, taken together, shall constitute one and the
same instrument.

 

8

 

18. Joint and Several Liability. All obligations of each Borrower under this
Amendment shall be joint and several. All references to the term “Borrower” herein shall refer to
each of them separately and to all of them jointly and all such Persons shall be bound both
severally and jointly with the other. Each Borrower is responsible for all of the Borrower
obligations under this Amendment. Notices from the Lender to any Borrower shall constitute
notice to all Borrowers. Directions, instructions, representations, warranties or covenants
made by any Borrower to the Lender shall be binding on all Borrowers.

[The remainder of this page intentionally left blank.]

 

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

	 	 	 	 	 	 	 	 	 	 	 	 
	WELLS FARGO BANK,
NATIONAL 

ASSOCIATION	 	GLOBAL EMPLOYMENT
SOLUTIONS, INC.	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/
Aida M. Sunglao-Canlas	 	By:	 	/s/
Daniel T. Hollenbach	 
	 

	 	Name:
	 	Aida M. Sunglao-Canlas
	 	 	 	Name:
	 	Daniel T. Hollenbach	 
	 

	 	Its:
	 	Vice President
	 	 	 	Its:
	 	Chief Financial Officer	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	EXCELL PERSONNEL SERVICES 

CORPORATION	 	FRIENDLY ADVANCED SOFTWARE 

TECHNOLOGY,
 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 Michaels & Associates, Inc.
and successor by merger to Temporary
Placement Service, Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS 
PEO
INC.,
f/k/a 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	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS 

PEO V
INC.,
f/k/a Southeastern Personnel
Management, 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	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS 

PEO III
INC.,
f/k/a Bay HR, Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS 
PEO IV
INC.,
f/k/a 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	 
	 
	 	 	 	 	 	 	 	 	 	 	 

Signature
Page 1 to Second Amendment to Credit Agreement

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO II
INC., f/k/a Southeastern Staffing
II, Inc.	 	 	 	GLOBAL EMPLOYMENT SOLUTIONS PEO VI
INC., f/k/a 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO VII
INC., f/k/a Southeastern Staffing
IV, Inc.	 	 	 	GLOBAL EMPLOYMENT SOLUTIONS PEO VIII
INC., f/k/a 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO IX
INC., f/k/a 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	 	 	 	 	 	 	 	 	 	 

Signature Page 2 to Second Amendment to Credit Agreement

 

 

 

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

The undersigned, a guarantor of the indebtedness of the Borrowers (as more fully defined in
the introductory paragraph of this Amendment, the “Borrowers”) to Wells Fargo Bank, National
Association (the “Lender”), pursuant to a Guaranty dated April 29, 2008 (the “Guaranty”), hereby
(i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms (including without
limitation the release set forth in Paragraph 15 of the Amendment) and execution thereof;
(iii) reaffirms all obligations to the Lender pursuant to the terms of the Guaranty; and
(iv) acknowledges that the Lender may amend, restate, extend, renew or otherwise modify the Credit
Agreement and any indebtedness or agreement of the Borrowers, or enter into any agreement or extend
additional or other credit accommodations, without notifying or obtaining the consent of the
undersigned and without impairing the liability of the undersigned under the Guaranty for all of
the Borrowers’ present and future indebtedness to the Lender.

	 	 	 	 	 
	 	GLOBAL EMPLOYMENT HOLDINGS, INC.

 	 
	 	By:  	/s/
Daniel T. Hollenbach	 
	 	 	Name:  	Daniel T. Hollenbach 	 
	 	 	Its: 	Chief Financial Officer 	 

The undersigned, a guarantor of the indebtedness of the Borrowers (as more fully defined in
the introductory paragraph of this Amendment, the “Borrowers”) to Wells Fargo Bank, National
Association (the “Lender”), pursuant to a Continuing Guaranty dated April 29, 2009 (the
“Guaranty”), hereby (i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms
(including without limitation the release set forth in Paragraph 15 of the Amendment) and execution
thereof; (iii) reaffirms all obligations to the Lender pursuant to the terms of the Guaranty; and
(iv) acknowledges that the Lender may amend, restate, extend, renew or otherwise modify the Credit
Agreement and any indebtedness or agreement of the Borrowers, or enter into any agreement or extend
additional or other credit accommodations, without notifying or obtaining the consent of the
undersigned and without impairing the liability of the undersigned under the Guaranty for all of
the Borrowers’ present and future indebtedness to the Lender.

	 	 	 	 	 
	 

	 	/s/
Howard Brill

	 	 
	 

	 	Howard Brill	 	 

Acknowledgment and Agreement of Guarantors to

Second Amendment to Credit AgreementExhibit 10.2

Exhibit 10.2

2009 TERM NOTE

			
	 	 	 
	$2,100,000
	 	Denver, Colorado
	 
	 	April 29, 2009

For value received, each of the undersigned, 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., f/k/a Michaels & Associates, Inc. and successor by merger to Temporary
Placement Service, Inc., a Georgia corporation (“TPS”), GLOBAL EMPLOYMENT SOLUTIONS PEO INC., f/k/a
Southeastern Staffing, Inc., a Florida corporation (“Southeastern”), GLOBAL EMPLOYMENT SOLUTIONS
PEO V INC., f/k/a Southeastern Personnel Management, Inc., a Florida corporation (“SPM”), MAIN LINE
PERSONNEL SERVICES, INC., a Pennsylvania corporation (“Main Line”), GLOBAL EMPLOYMENT SOLUTIONS PEO
III INC., f/k/a Bay HR, Inc., a Florida corporation (“BHR”), GLOBAL EMPLOYMENT SOLUTIONS PEO IV
INC., f/k/a Southeastern Georgia HR, Inc., a Georgia corporation (“SGHR”), GLOBAL EMPLOYMENT
SOLUTIONS PEO II INC., f/k/a Southeastern Staffing II, Inc., a Florida corporation (“SEII”), GLOBAL
EMPLOYMENT SOLUTIONS PEO VI INC., f/k/a Southeastern Staffing III, Inc., a Florida corporation
(“SEIII”), GLOBAL EMPLOYMENT SOLUTIONS PEO VII INC., f/k/a Southeastern Staffing IV, Inc., a
Florida corporation (“SEIV”), GLOBAL EMPLOYMENT SOLUTIONS PEO VIII INC., f/k/a Southeastern
Staffing V, Inc., a Florida corporation (“SEV”), GLOBAL EMPLOYMENT SOLUTIONS PEO IX INC., f/k/a
Southeastern Staffing VI, Inc., a Florida corporation (“SEVI”), and KEYSTONE ALLIANCE, INC., a
Florida corporation (“Keystone”) (Global, Excell, Friendly, TPS, Southeastern, SPM, Main Line, BHR,
SGHR, SEII, SEIII, SEIV, SEV, SEVI, and Keystone, each a “Borrower” and collectively, the
“Borrowers”), hereby jointly and severally promise to pay to the order of WELLS FARGO BANK,
NATIONAL ASSOCIATION (the “Lender”), acting through its Wells Fargo Business Credit operating
division, on the earlier of January 4, 2010 or the Termination Date set forth in the Credit and
Security Agreement dated April 29, 2008, that was entered into by the Lender and the Borrowers (as
amended from time to time, the “Credit Agreement”), at Lender’s office located at Denver, Colorado, or at any other place designated at any time by the holder hereof, in lawful money of the United
States of America and in immediately available funds, the principal sum of TWO MILLION ONE HUNDRED
THOUSAND DOLLARS ($2,100,000) or the aggregate unpaid principal amount of all 2009 Term Advances
made by the Lender to the Borrowers under the Credit Agreement together with interest on the
principal amount hereunder remaining unpaid from time to time, computed on the basis of the actual
number of days elapsed and a 360-day year, from the date hereof until this 2009 Term Note is fully
paid at the rate from time to time in effect under the Credit Agreement.

This 2009 Term Note is the 2009 Term Note referred to in the Credit Agreement, and is subject
to the terms of the Credit Agreement, which provides, among other things, for acceleration hereof.
Principal and interest due hereunder shall be payable as provided in the Credit Agreement, and this
2009 Term Note may be prepaid only in accordance with the terms of the Credit Agreement. This 2009
Term Note is secured, among other things, pursuant to the
Credit Agreement and the Security Documents as therein defined, and may now or hereafter be
secured by one or more other security agreements, mortgages, deeds of trust, assignments or other
instruments or agreements.

 

 

 

The Borrowers hereby agree to pay all costs of collection, including reasonable attorneys’
fees and legal expenses in the event this 2009 Term Note is not paid when due, whether or not legal
proceedings are commenced. The obligations of the Borrowers hereunder are joint and several.

Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT
SOLUTIONS, INC.	 	EXCELL PERSONNEL SERVICES CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/
Daniel T. Hollenbach	 	By:	 	/s/
Daniel T. Hollenbach	 	 
	 

	 	Name:
	 	Daniel T. Hollenbach
	 	 	 	Name:
	 	Daniel T. Hollenbach	 	 
	 

	 	Its:
	 	Chief Financial Officer
	 	 	 	Its:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FRIENDLY ADVANCED SOFTWARE
TECHNOLOGY, INC.	 	TEMPORARY PLACEMENT SERVICE, INC.,
f/k/a Michaels & Associates, Inc.
and successor by merger to Temporary
Placement Service, 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO
INC., f/k/a Southeastern Staffing,
Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS PEO V
INC., f/k/a 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	MAIN LINE PERSONNEL SERVICES, INC.	 	GLOBAL EMPLOYMENT SOLUTIONS PEO III
INC., f/k/a Bay 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	 	 

 

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO IV
INC., f/k/a Southeastern Georgia HR,
Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS PEO II
INC., f/k/a Southeastern Staffing
II, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/
Daniel T. Hollenbach	 	 	 	/s/
Daniel T. Hollenbach	 	 
	 

	 	Name:
	 	Daniel T. Hollenbach
	 	 	 	Name:
	 	Daniel T. Hollenbach	 	 
	 

	 	Its:
	 	Executive Vice President
	 	 	 	Its:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO VI
INC., f/k/a Southeastern Staffing
III, Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS PEO VII
INC., f/k/a Southeastern Staffing
IV, 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT SOLUTIONS PEO VIII
INC., f/k/a Southeastern Staffing V,
Inc.	 	GLOBAL EMPLOYMENT SOLUTIONS PEO IX
INC., f/k/a Southeastern Staffing
VI, 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	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	KEYSTONE ALLIANCE, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/
Daniel T. Hollenbach	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel T. Hollenbach	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Executive Vice President	 	 	 	 	 	 	 	 

 

-3-

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