Document:

Exhibit 10.1

Exhibit 10.1

 

3460 Preston Ridge Rd. / Suite 550 / Alpharetta, GA 30005

LOAN AND SECURITY AGREEMENT

BETWEEN

TEAMSTAFF GOVERNMENT SOLUTIONS, INC. 

D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS 

D/B/A TEAMSTAFF GOVT SOLUTIONS 

AND

PRESIDENTIAL FINANCIAL CORPORATION

DATED AS OF 

JULY 29, 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1. LOANS AND CREDIT ACCOMMODATIONS
	 	 	3	 
	1.1 Amount
	 	 	3	 
	1.2 Reserve
	 	 	3	 
	1.3 Use of Proceeds
	 	 	4	 
	1.4 Repayment
	 	 	4	 
	SECTION
2. ADVANCES TO COVER INTEREST AND FEES; FEES AND EXPENSES
	 	 	4	 
	2.1 Interest
	 	 	4	 
	2.2 Fees and Expenses
	 	 	4	 
	2.3 Loan Account
	 	 	5	 
	2.4 Expense Reimbursement
	 	 	5	 
	SECTION 3. SECURITY INTEREST
	 	 	5	 
	3.1 Grant
	 	 	5	 
	3.2 Further Assurances
	 	 	5	 
	SECTION 4. ADVANCES AND ADMINISTRATION
	 	 	6	 
	4.1 Advance Requests
	 	 	6	 
	4.2 Remittance of Collections and Other Proceeds and Procedures
	 	 	6	 
	4.3 Application of Payments
	 	 	7	 
	4.4 Notification; Verification
	 	 	7	 
	4.5 Power of Attorney
	 	 	7	 
	4.6 Books and Records
	 	 	8	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	5.1 General
	 	 	8	 
	5.2 Accounts
	 	 	8	 
	5.3 Borrower Reports
	 	 	9	 
	SECTION 6. COVENANTS
	 	 	9	 
	6.1 Affirmative Covenants
	 	 	9	 
	6.2 Negative Covenants
	 	 	10	 
	6.3 Financial and Other Covenants
	 	 	10	 
	SECTION 7. EVENTS OF DEFAULT AND REMEDIES
	 	 	11	 
	7.1 Events of Default
	 	 	11	 
	7.2 Remedies
	 	 	12	 
	SECTION 8. RELEASE AND INDEMNITY
	 	 	12	 
	8.1 Release
	 	 	12	 
	8.2 Indemnity
	 	 	13	 
	SECTION 9. TERM
	 	 	13	 
	9.1 Effectiveness of Agreement
	 	 	13	 
	9.2 Termination
	 	 	13	 
	9.3 Early Termination Fee
	 	 	13	 
	9.4 Effect of Termination
	 	 	14	 
	SECTION 10. GENERAL PROVISIONS
	 	 	14	 
	10.1 Miscellaneous
	 	 	14	 
	10.2 Consent to Forum
	 	 	14	 
	10.3 Waivers by Borrower
	 	 	15	 

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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LOAN AND SECURITY AGREEMENT

THIS LOAN AND SECURITY AGREEMENT (as it may be amended, this “Agreement”) is entered into on
July 29, 2010 between PRESIDENTIAL FINANCIAL CORPORATION (“Lender”), having an address at
3460 Preston Ridge Road, Suite 550, Alpharetta, GA 30005, and TEAMSTAFF GOVERNMENT SOLUTIONS, INC.
D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS; D/B/A TEAMSTAFF GOVT SOLUTIONS (“Borrower”), whose chief
executive office is located at 1 Executive Drive, Suite 130, Somerset, NJ 08873 (“Borrower’s
Address”). Capitalized terms not otherwise defined in this Agreement shall have the meanings set
forth on Schedule A. All other terms contained in this Agreement, unless otherwise indicated, shall
have the meaning provided in the UCC to the extent such terms are defined therein. The schedules
attached to this Agreement are an integral part of this Agreement and are incorporated herein by
reference.

SECTION 1. LOANS AND CREDIT ACCOMMODATIONS

1.1  Amount

Subject to the terms and conditions in this Agreement, at Borrower’s request and provided that no
Default or Event of Default exists, Lender may, in its discretion, make Advances to Borrower during
the Term, to the extent that there is sufficient Availability at the time of such request to cover,
dollar for dollar, the requested Advance, and further provided that after giving effect to such
Advances, the outstanding balance of all monetary Obligations will not exceed the Maximum Loan
Amount. For this purpose, “Availability” means, on any date, an amount equal to:

	 	(i)	 	the Eligible Accounts on such date multiplied
by the Accounts Advance Rate;

minus

	 	(ii)	 	all Reserves which Lender has established pursuant to Section 1.2
(including any to be established in connection with the requested Advance);

minus

	 	(iii)	 	the outstanding balance of all monetary
Obligations on such date.

1.2 Reserve

Lender may from time to time in its sole and reasonable discretion establish and revise such
reserves as Lender deems appropriate (“Reserves”) to reflect (i) the amount of accrued but unpaid
interest with respect to the monetary Obligations on such date, (ii) events, conditions,
contingencies or risks which affect or may affect (A) the Collateral or its value, or the Liens and
other rights of Lender in the Collateral or (B) the assets, business of Borrower or any Obligor,
(iii) Lender’s concern that any Collateral or financial information furnished by or on behalf of
Borrower to Lender is or may have been incomplete, inaccurate or misleading in any material
respect, (iv) any fact or circumstance which Lender determines in its sole and reasonable
discretion constitutes, or could constitute, a Default or Event of Default (v) the percentage
increase of dilution in excess of 5%, as determined by the month-end accounts receivable
aging or (vi) any other events or circumstances which Lender determines in its sole and reasonable
discretion make the establishment or revision of a Reserve prudent. Lender may, in its sole and
reasonable discretion, establish and revise Reserves by deducting them in determining Availability
or by reclassifying Eligible Accounts as ineligible. In no event shall the establishment of a
Reserve in respect of a particular actual or contingent liability obligate Lender to make Advances
hereunder to pay such liability or otherwise obligate Lender with respect thereto.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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1.3 Use of Proceeds

Borrower shall be authorized to use the proceeds of the Advances solely to make expenditures for
lawful purposes of Borrower to the extent such expenditures are not prohibited by the provisions of
this Agreement or Applicable Law. Borrower represents and warrants that Lender’s loan or loans to
Borrower will be used for nonconsumer purposes and not for personal, family or household purposes.

1.4 Repayment

Principal and interest shall be paid as stated in the Secured Promissory Note (the “Note”) executed
by Borrower in favor of Lender contemporaneously herewith. In addition, if at any time the amount
of monetary Obligations exceeds Availability (any such excess, an “Overadvance”), or if at any time
or for any reason the outstanding amount of Advances extended or issued pursuant hereto exceeds any
of the dollar limitations (“Overline”), Borrower will immediately pay to Lender the amount of such
Overadvance or Overline. Notwithstanding the foregoing, Lender may, in its discretion, make or
permit the Advances or any other monetary Obligations that give rise to or constitute an
Overadvance or Overline, provided that Borrower shall, upon Lender’s demand, pay to Lender such
amounts as shall eliminate such Overadvance or Overline. All unpaid monetary Obligations shall be
due and payable in full upon termination of this Agreement pursuant to Section 9.2.

SECTION 2. ADVANCES TO COVER INTEREST AND FEES; FEES AND EXPENSES

2.1 Interest

Principal and interest shall be paid as stated in the Note executed by Borrower in favor of Lender
contemporaneously herewith. The parties agree that, and Borrower instructs Lender that,
immediately upon accrual of interest and other charges provided for herein and in the Note, such
interest and other charges shall be paid by Advances and charged to Borrower’s Loan Account with
Lender. Such Advances shall thereafter bear interest and be subject to other charges upon the same
terms as other Advances, and such Advances are agreed by the parties to be principal pursuant to
O.C.G.A. Section 7-4-2(A)(3). Borrower specifically agrees, by execution of this Agreement and the
Note, to this treatment of all accrued but unpaid interest and other charges hereunder and under
the Note.

2.2 Fees and Expenses

In addition to all interest and other sums payable by Borrower to Lender under this Agreement,
Borrower shall pay Lender the fees and reimbursements listed on Schedule B, which are and shall be
deemed earned in full on the date when same is due and payable hereunder and shall not be subject
to rebate or proration upon termination of this Agreement for any reason.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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2.3 Loan Account

Lender shall maintain a loan account in the name of Borrower, reflecting all Advances, charges,
fees, expenses and payments made pursuant to this Agreement (the “Loan Account”). Lender shall
provide Borrower with commercially reasonable electronic access to information about Borrower’s
Loan Account (the “Online Statement”); provided, however, that Lender shall not be liable to
Borrower for any damages suffered by Borrower as a result of the temporary failure or
unavailability of or the lack of updates to the Online Statement. All information posted to the
Online Statement shall be deemed to have been delivered to Borrower and, unless Borrower notifies
Lender in writing to the contrary (including a detailed description of the alleged error or
omission) within 30 days after such information is made available to Borrower, the Online Statement
shall be deemed correct, accurate and conclusively binding on Borrower as an account stated (except
for reverses and reapplications of payments made and corrections of errors discovered by Lender).

2.4 Expense Reimbursement

Borrower shall reimburse Lender for (i) any Extraordinary Expenses incurred by Lender and (ii) all
reasonable legal, accounting, appraisal, consulting, underwriting, and other fees and expenses
suffered or incurred by Lender in connection with: (a) the negotiation and preparation of any of
the Loan Documents and any amendment or modification thereto; (b) the administration of the Loan
Documents and the transactions contemplated thereby; (c) action taken to perfect or maintain the
perfection or priority of any of Lender’s Liens with respect to any of the Collateral; (d) any
inspection of or audits conducted by Lender with respect to Borrower’s books and records or any of
the Collateral; or (e) any effort by Lender to verify or appraise any of the Collateral. Attorneys
fees relating to collection for which Borrower shall be responsible to reimburse Lender shall be
equal to the lesser of: (a) actual fees and expenses or (b) fifteen percent (15%) of the principal
and interest owed hereunder at the time of commencement of collection activities. All amounts
chargeable to or reimbursable by Borrowers under this Section 2.4 shall constitute Obligations
payable on demand to Lender. The foregoing shall be in addition to, and shall not be construed to
limit, any other provision of any of the Loan Documents regarding the indemnification or
reimbursement by Borrower of claims suffered or incurred by Lender

SECTION 3. SECURITY INTEREST

3.1 Grant

To secure the full and timely payment and performance of all of the Obligations, Borrower hereby
grants to Lender a continuing security interest in and Lien upon in the following property and
interests in property of Borrower, whether tangible or intangible, now owned or in existence or
hereafter acquired or arising, and wherever located: all Accounts, Accounts and Securities,
Chattel Paper, Furniture, Fixtures and Equipment, Instruments, Investment Property, General
Intangibles, Deposit Accounts, Supporting Obligations, Inventory, Other Property, all Proceeds and
products of all of the foregoing (including proceeds of any insurance policies and claims against
third parties for loss or any destruction of any of the foregoing), and all books and records
relating to any of the foregoing.

3.2 Further Assurances

Borrower agrees to comply with all Applicable Laws to perfect Lender’s Lien in the Collateral and
to execute such documents as Lender may reasonably require to effectuate the foregoing and to
implement this Agreement. Borrower irrevocably authorizes Lender to file financing statements, and
all amendments and continuations with respect thereto, in order to create, perfect or maintain its
Lien in the Collateral as a duly perfected Lien, subject to no other Liens except Permitted Liens
listed on Schedule C. Borrower
hereby ratifies and confirms any and all financing statements, amendments and continuations with
respect thereto heretofore and hereafter filed by Lender pursuant to the foregoing authorization.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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SECTION 4. ADVANCES AND ADMINISTRATION

4.1 Advance Requests

Whenever Borrower desires to obtain an Advance, Borrower shall give Lender notice of such borrowing
request telephonically (and confirmed in writing if requested by Lender) or by facsimile or
electronic mail transmission no later than 11:00 a.m. Eastern Standard Time (“EST”), or, if in
effect, Daylight Savings Time (“DST”) on the Business Day of the requested borrowing, and notices
(in the form stipulated herein) received by Lender after 11:00 a.m. EST or DST, whichever is in
effect, shall be deemed received on the next Business Day and notices received other than in the
form stipulated herein shall be ineffective and deemed not received by Lender. Unless payment is
otherwise timely made by Borrower, the becoming due of any amount required to be paid with respect
to any of the Obligations (including any interest thereon) shall be deemed irrevocably to be a
request (without any requirement for the submission of a notice of borrowing) for an Advance on the
due date of and in an aggregate amount required to pay such Obligations and the proceeds of such
Advance may be disbursed by way of direct payment of the relevant Obligations, provided that Lender
shall have no obligation to honor any deemed request for an Advance on or after the date on which
this Agreement is terminated pursuant to Section 9.2, or when an Overadvance exists or would result
from such funding or when any applicable condition precedent is not satisfied, but Lender may do so
in its discretion and without regard to the existence of, and without being deemed to have waived,
any Default or Event of Default and regardless of whether such Advance is made after the date on
which this Agreement is terminated pursuant to Section 9.2.

4.2 Remittance of Collections and Other Proceeds and Procedures

Borrower shall notify all Accounts to direct all Collections to the remittance address provided by
Lender in the Procedures Letter (the “Remittance Address”). Lender shall retain the sole discretion
to require Borrower to enter into a bank agreement or other agreement governing the remittance of
Collections, which agreement shall be in form and substance acceptable to Lender, and only Lender
shall have access to withdraw or otherwise direct the disposition of Collections. In the event
that Borrower receives any Collections or other proceeds of Collateral, Borrower shall promptly
upon receipt (and in all events within one Business Day of receipt by Borrower) remit in kind such
Collections or other proceeds of Collateral directly to the Remittance Address and promptly notify
Lender of such event. Until so forwarded, any such Collections or other proceeds of Collateral
received by Borrower shall not be commingled with Borrower’s other funds and shall be held by
Borrower, as trustee of an express trust, for Lender’s benefit. In the event any Collections are
received by Borrower but not remitted to Lender in the time and manner specified herein, the
Misdirected Payment Fee set forth on Schedule B shall be assessed and charged to the Borrower’s
Loan Account. Borrower shall specify the Remittance Address on all agreements and contracts, and
take all necessary steps to ensure all Collections are directed to the Remittance Address. On all
invoices Borrower will place the Payment Notice that each invoice shall only be paid to the
Remittance Address. All invoices shall be mailed or otherwise transmitted by Borrower to Account
Obligors within five business days of issuance. Borrower will provide Lender with copies of all
invoices and evidence of completion of services on all invoices as set forth in the Procedures
Letter along with any other information as Lender may reasonably request. Nothing in this section
shall require Borrower’s income received in the ordinary course of business that does not
constitute proceeds of accounts receivable to be sent to the Remittance Address.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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4.3 Application of Payments

Lender may, in its discretion, apply, reverse and re-apply all Collections and other proceeds of
Collateral or other payments received with respect to the Obligations, in such order and manner as
Lender shall determine, whether or not the Obligations are due, and whether before or after the
occurrence of a Default or an Event of Default. For purposes of determining Availability, funds
received at the Remittance Address will be credited to the Loan Account upon Lender’s receipt of
notice that such items have been credited to the Payment Account, subject to final payment and
collection; provided, however, that for purposes of computing interest on the
Obligations, such items shall be deemed applied by Lender four Business Days after Lender’s receipt
of advice of deposit in the Payment Account, including such payments received by wire transfer, ACH
or other electronic means to an account designated by Lender, in which case such items shall be
deemed applied by Lender four Business Day after Lender’s receipt of advice of deposit in the
Payment Account. If, as the result of Lender’s application of Collections to the Obligations as
authorized by this Section 4.3 a credit balance exists in favor of Borrower (meaning that, on any
date of determination, the collected balance of Collections after the applicable cutoff time on
such date exceeds the outstanding principal balance of (and all interest, fees and other amounts
payable with respect to) the Obligations after the applicable cutoff time on such date), such
credit balance shall not accrue interest in favor of Borrower, but shall be available to, and
promptly paid by Lender to Borrower upon Borrower’s request, at any time or times for so long as no
Default or Event of Default exists.

4.4 Notification; Verification

Lender or its designee may, from time to time and to the extent permitted by Applicable Law,
whether or not a Default or Event of Default has occurred verify directly with the Account Obligors
the validity, amount and other matters relating to the Accounts, by means of mail, telephone or
otherwise, either in the name of Borrower or Lender or such other name as Lender may choose.
Lender will notify Borrower of any Account Obligor contacted for verification of Accounts after
such verification is performed. Lender or its designee may, after the occurrence of a Default or
Event of Default (i) notify Account Obligors that Lender has a Lien in the Accounts and that
payment thereof is to be made directly to Lender; and (ii) demand, collect or enforce payment of
any Accounts (but without any duty to do so)

4.5 Power of Attorney

Borrower hereby makes, constitutes and appoints each of Lender’s officers or agents as Borrower’s
attorney-in-fact with full power of substitution, in the name of Borrower or in the name of Lender,
but for Lender’s use and benefit, to do or perform at any time, in Lender’s discretion, any of the
following: (i) at any time, irrespective of whether there exists an Event of Default, receive,
open and dispose of all mail addressed to Borrower and endorse Borrower’s name on any checks or
other payment items with respect to any Collateral and to deposit same and apply them to such of
the Obligations as Lender may elect; and (ii) at any time that an Event of Default exists, cause
all mail to be diverted from any post office box in Borrower’s name to a post office box or other
address designated by Lender; demand, sue for, collect and receive monies due or to become due on
any Accounts and to settle, compound, compromise or extend the time of payment of any Account or
other Collateral upon terms acceptable to Lender without releasing Borrower from any liability to
Lender, and do such other and further acts in Borrower’s name which Lender may deem necessary or
desirable to enforce any of the terms of this Agreement or to collect any of the Obligations or
realize upon any Collateral. This power, being coupled with an interest, is irrevocable.
Notwithstanding the foregoing, Lender agrees to forward to Borrower any mail received by Lender
that is not a payment that Lender is entitled to keep or apply to the Obligations.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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4.6 Books and Records

Borrower irrevocably authorizes all accountants and third parties to disclose and deliver to
Lender, at Borrower’s expense, all financial information, books and records, work papers,
management reports and other information in their possession regarding Borrower. Borrower will not
enter into any agreement with any accounting firm, service bureau or third party to store
Borrower’s books or records at any location other than Borrower’s Address or at one or more of the
business locations set forth in Schedule F hereto without first obtaining Lender’s written consent
(which consent may be conditioned upon such accounting firm, service bureau or other Person
agreeing to give Lender the same rights with respect to access to books and records and related
rights as Lender has under this Agreement).

SECTION 5. REPRESENTATIONS AND WARRANTIES

5.1 General

To induce Lender to enter into this Agreement and make Advances, Borrower represents and warrants
that Borrower’s legal name is exactly as set forth on the signature page of this Agreement;
Borrower is duly organized and validly existing under the laws of the State of GEORGIA and is
qualified to do business in each state where such qualification is required, and failure to so
qualify would have a material adverse impact on Borrower, Borrower’s business or the Collateral,
all of which are listed on Schedule F attached hereto; the Lien granted by Borrower in the
Collateral is and will at all times remain a duly perfected, first priority Lien in such
Collateral; Borrower is able to pay, does pay and will continue to pay its debts as they mature in
the ordinary course of business; the most recent financial statements provided to Lender accurately
reflect in all material aspects. Borrower’s financial condition as of that date and that there has
been no Material Adverse Change in Borrower’s financial condition since the date of those financial
statements; there are no actions, suits or other legal proceedings of any kind now pending or, to
Borrower’s knowledge, threatened against Borrower that if successful would result in a Material
Adverse Change; no Default or Event of Default exists hereunder; Borrower has never carried on
business under or used any name other than its legal name and the trade names or trade styles
listed on Schedule F attached hereto, and have obtained all consents, approvals and authorizations
of, made all declarations or filings with, and given all notices to, all Governmental Units and all
other Persons as is required or necessary to its assets and to carry on its business, and Borrower
has not been notified by any such Governmental Unit or other Person that such Governmental Unit or
other Person has rescinded or not renewed, or intends to rescind or not renew, any such license,
consent, accreditation, approval or authorization. Each of the foregoing representations and
warranties shall be deemed reaffirmed and remade as of the date of each Advance hereunder and shall
not be affected by any knowledge of, or any investigation by, Lender. The continuing accuracy of
each of the foregoing representations and warranties shall be a condition precedent to each
Advance.

5.2 Accounts

Lender may rely, in determining which Accounts are Eligible Accounts, on all statements and
representations made by Borrower with respect to any Account. With respect to each Account,
Borrower warrants that (i) all information relating to such Account that has been delivered to
Lender is true and correct in all material respects, such Account has been invoiced after the date
the services or goods giving rise to such Account were rendered or provided in the ordinary course
of business, as applicable, all information set forth in the invoice is true, complete and correct
in all material respects, Borrower has delivered to the Account Obligor all requested supporting
claim documents and each

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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invoice
contains the Payment Notice to remit payments as set forth in Section 4.2; (ii) the Account and any goods sold
in respect of such Account are the Borrower’s exclusive property and are not and will not be,
subject to any consignment, sale on approval, sale or return or “bill and hold” arrangement or any
Lien other than in Lender’s favor; (iii) any goods the sale or other disposition of which give rise
to the Account or other right to payment are not (and will not at any time be) subject to any Lien
other than in Lender’s favor; (iv) all amounts payable in respect of the Account are payable in
Dollars; (v) the Account Obligor has accepted the goods or services relating to the Account; (vi)
the Account Obligor owes and is obligated to pay the full amount stated in the invoice relating to
the Account according its terms, without dispute, offset, deduction, defense or counterclaim; (vii)
the Account does not arise from a sale to an Affiliate or a sale to a consumer of goods to be used
for personal, family or household purposes; (viii) it has absolute ownership of and title to the
Account; (ix) the Account is not evidenced by any instrument, negotiable document, warehouse
receipt or chattel paper; (x) prior to the date on which the Account arose, it had not received
notice of the insolvency of the Account Obligor in respect of such Account or the commencement of
any Insolvency Proceedings by or against such Account Obligor.

5.3 Borrower Reports

Borrower will provide Lender the reports listed below in a format and frequency acceptable to the
Lender. All reports, which are to be submitted in Excel format and/or via direct data submission to
an online computer system authorized and in form and substance acceptable to Lender, are due as
follows: (i) completed Borrowing Base Certificate is due weekly (or if needed for advance purposes,
daily) to be delivered no later than 10:00 AM EST or DST, whichever is in effect; (ii) a detailed
invoice date aging of the Accounts is due on a weekly basis; (iii) A complete customer list of all
Accounts with contact information (name of primary contact, address and telephone number) is due at
the beginning of each month and (iv) monthly projections for the next fiscal year, due no later
than sixty days before the end of the current fiscal year, with the exception of the monthly
projections for the fiscal year ending September 30, 2011, which shall be due no later than 5:00 PM
DST on September 15, 2010; (v) monthly bank statements for all bank accounts of the Borrower; (vi)
monthly evidence of its tax payments; and (vii) together with each delivery of financial statements
required above, the certificate of Borrower substantially in the form of Exhibit A hereto signed by
the designated officer of Borrower stating, among other things, that no event has occurred which
constitutes an event of Default or would constitute an event of Default but for the requirement
that notice be given, or time elapse or both, under this Agreement (such certificate shall publish
the accounting calculations used to determine compliance or noncompliance with Borrower’s financial
obligations and financial covenants provided in this Agreement), or, if any such event of Default
or Defaults exists, specifying the nature thereof.

SECTION
6. COVENANTS

6.1 Affirmative Covenants

Borrower shall (i) permit representatives of Lender from time to time, as often as may be
reasonably requested, but only during normal business hours, to inspect and appraise the Collateral
and to inspect, audit, and make extracts from Borrower’s books and records and to discuss
Borrower’s financial affairs with Borrower’s independent accountants; (ii) keep adequate records
and books of account with respect to its business activities in accordance with prudent accounting
practices; (iii) cause to be prepared and furnished to Lender, in accordance with GAAP within 30
days after the end of each month, an unaudited balance sheet of Borrower and its subsidiaries and
related unaudited statements of income, and cash flow (on a quarterly basis), and for the portion
of Borrower’s fiscal year then elapsed, on a consolidated and consolidating basis and certified by
an authorized officer of Borrower; (iv) cause to be prepared and furnished to Lender, in accordance
with GAAP within 90 days after the end of each fiscal year

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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of Borrower, reviewed financial statements of Borrower and its subsidiaries as of the end of
such fiscal year, on a consolidated basis, audited by a firm of independent certified public
accountants acceptable to Lender; (v) provide Lender log-on access to all government payment
portals, including but not limited to the CCR, WAWF, and DEFASE websites relating to Accounts; (vi)
promptly provide Lender with notice of all contracts, contract modifications, or contract
cancellations and shall execute an Assignment of Claims for all federal contracts as may be
required by Lender; (vii) pay and discharge all taxes prior to the date on which such taxes become
delinquent or penalties attach thereto (except for taxes being contested in good faith for which
Borrower has established reserves reasonably satisfactory to Lender); (viii) comply in all material
aspects with all Applicable Laws; (ix) carry property, liability and other insurance, with insurers
reasonably acceptable to Lender, in such form and amounts, and with such deductibles and other
provisions as Lender shall require, with each such insurance policy naming Lender as loss payee or
additional insured pursuant to a form of endorsement reasonably acceptable to Lender; and (x)
promptly notify Lender of all disputes or claims relating to Accounts that exceed $25,000 in the
aggregate at any one time.

6.2 Negative Covenants

Borrower will not merge or consolidate with another Person, form any new subsidiary or acquire any
interest in any Person (unless such subsidiary or Person has been approved by Lender to join, and
actually does join, this Agreement as a co-borrower); acquire any assets except in the ordinary
course of business and as otherwise permitted by this Agreement and the other Loan Documents; enter
into any transaction outside the ordinary course of business; except as approved in advance by
Lender; sell or transfer any Collateral or other assets, except that Borrower may sell finished
goods Inventory in the ordinary course of its business; make any loans to, or investments in, any
Affiliate or other Person in the form of money or other assets; incur any debt outside the ordinary
course of business; guarantee or otherwise become liable with respect to the obligations of another
party or entity; pay or declare any dividends or other distributions on Borrower’s equity interests
(except for dividends payable solely in equity interests of Borrower); redeem, retire, purchase or
otherwise acquire, directly or indirectly, any of Borrower’s equity interests exceeding $50,000 in
the aggregate; permit any change in more than 15% of the ownership interest of Borrower; dissolve
or elect to dissolve; with respect to subsidiary or affiliate entities, Borrower must obtain prior
written consent from Lender to dissolve; pay any principal or interest on any indebtedness owing to
an Affiliate except as permitted by any written subordination agreement between Lender and such
affiliate, enter into any transaction with an Affiliate other than on arms-length terms; compromise
or settle any Account for less than the full amount thereof, grant any extension of time of payment
of any Account as long as the extension of time does not make the Account ineligible, release (in
whole or in part) any Account Obligor or other Person liable for the payment of any Account or
grant any credits, discounts, allowances, deductions, return authorizations or the like with
respect to any Account other than in the ordinary course of business and provided that the same is
promptly reported in its weekly required reports to Lender; or agree to do any of the foregoing and
Borrower will report to Lender on a weekly basis any such event in excess of $25,000.00.

6.3 Financial and Other Covenants

Borrower shall at all times comply with the financial and other covenants set forth in the Schedule
E attached hereto.

6.4 Permitted Payments

Notwithstanding anything to the contrary in this Agreement, including without limitation Section
6.2, Borrower and its affiliates shall not make any payments in respect of certain outstanding
[***] in the
current aggregate principal amount of [***]plus accrued and unpaid interest [***] with the express
written consent of the Lender, which consent shall be solely in the discretion of the Lender.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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6.5 Notice of Certain Proceedings

Borrower shall give Lender (i) 45 days prior written notice, or as soon as practicable, of any
scheduled trial date or other court hearing, any arbitration proceeding, or settlement agreement
that may result in the Borrower or its affiliates becoming obligated to pay [***] in the aggregate,
and (ii) prompt written notice of the filing of any litigation and/or any settlement proposal by
the Borrower or its affiliates, in each case relating to the Debentures or involving the Sellers or
both.

SECTION 7. EVENTS OF DEFAULT AND REMEDIES

7.1 Events of Default

The occurrence of any of the following events shall constitute an “Event of Default” under this
Agreement, and Borrower shall give Lender immediate written notice thereof: (i) Borrower shall fail
to pay any of the Obligations on the due date thereof (whether due at stated maturity, on demand,
upon acceleration, or otherwise); (ii) any representation, warranty, or other statement to Lender
by or on behalf of Borrower, whether made in or furnished in compliance with or in reference to any
of the Loan Documents, proves to have been false or misleading in any material respect when made;
(iii) Borrower shall fail or neglect to perform, keep, or observe any covenant contained in this
Agreement or any of the other Loan Documents; (iv) any Material Adverse Change shall occur; (v)
Borrower shall cease to be solvent or shall stop paying, or be unable to pay, its debts and other
obligations to any other creditor as the same become due and payable, or any occurrence which would
cause any other liabilities, indebtedness or obligations to any other creditor to be accelerated;
(vi) any Insolvency Proceeding shall be commenced by or against Borrower or any Obligor (excluding
Validity Guarantors) and, in the case of an Insolvency Proceeding commenced against Borrower or any
Obligor (excluding Validity Guarantors), remains unvacated and unstayed for sixty (60) days; (vii)
one or more judgments or orders for the payment of money in excess of $50,000.00 shall be entered
against Borrower and remain undismissed and unpaid for thirty (30) days; (viii) any Obligor
(excluding Validity Guarantors) shall revoke or attempt to revoke or terminate, or fail to confirm
Obligor’s (excluding Validity Guarantors) liability under, any guaranty to which any Obligor
(excluding Validity Guarantors) is a party; (ix) the transfer by the present shareholders or
members (as listed on Schedule G attached hereto) of Borrower to any person or entity not a
shareholder at the time of this Agreement, any or all of the common stock or other ownership
interests of Borrower outstanding or in treasury as of the date hereof, or that in the event of any
transfer by operation of law, Borrower fails to immediately notify Lender; (x) any instruction or
agreement regarding the Remittance Address and procedures related thereto is amended or terminated
without the written consent of Lender, or if Borrower fails, within one (1) Business Day of
receipt, to forward Collections it receives with respect to any Accounts to the Remittance Address;
(xi) any default shall occur under any other agreement or arrangement between Borrower and Lender;
(xii) any guarantor of any of the Collateral shall revoke or attempt to revoke, or shall dispute,
such guaranty of any of the Obligations; (xiii) any failure of any Obligor to furnish Lender
current financial information upon request; (xiv) any failure of any Obligor or any pledgor of any
security interest in the Collateral (the “Pledgor”) to observe or perform any agreement, covenant
or promise contained in any agreement, instrument or certificate executed in connection with the
granting of a security interest in any Collateral to secure the Obligations; (xv) any material and
uninsured loss, theft, substantial damage, destruction, sale, foreclosure of or encumbrance to any
of the Collateral that would constitute a Material Adverse Change; (xvi) the dissolution,
termination of existence, insolvency, business failure, appointment of a receiver of any part of
the property of, assignment for the benefit of creditors by, or the commencement of any proceeding
under any bankruptcy or insolvency laws, state or federal, by

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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or against Borrower or any other Obligor (excluding Validity Guarantors); (xvii) any discontinuance or
termination of any guaranty of any of the Obligations by a guarantor; (xviii) any amendment or
termination of a financing statement naming the Borrower as debtor and the Lender as secured party,
or any corrective statement with respect thereto, is filed by Borrower or at the direction of
Borrower or without the prior written consent of the Lender; (xix) if the Collateral declines in
value and for any reason becomes insufficient in Lender’s sole and exclusive judgment to secure the
repayment of the Obligations and Borrower, after demand, fails or refuses to substitute and/or make
additions to the Collateral, or pay down the Obligations satisfactory to Lender; (xx) any failure
of Borrower to comply with the reporting schedules set forth in section 5.3 or 6.1 or failure to
furnish Lender any Collateral report upon request; or (xxi) Lender deeming itself insecure as to
the ability of Borrower to repay the Obligations, or as to the sufficiency of the Collateral.

7.2 Remedies

Upon or after the occurrence of an Event of Default (and for so long as such Event of Default shall
exist), Lender may in its discretion declare the principal of and accrued interest on the Advances
and all other Obligations outstanding to be, and whereupon the same shall thereupon become without
further notice or demand (all of which notice and demand Borrower expressly waives), forthwith due
and payable and Borrower shall forthwith pay to Lender the entire principal of and accrued and
unpaid interest on the Advances and other Obligations, together with reasonable attorneys’ fees and
court costs if such principal and interest are collected by or through an attorney at law, and
Lender may terminate this Agreement. In addition, Lender may, in its discretion, at any time or
times exercise all of the rights and remedies of a secured party under the UCC or any other
Applicable Law and all other legal and equitable rights to which Lender may be entitled under any
of the Loan Documents, all of which rights and remedies shall be cumulative and shall be in
addition to any other rights or remedies contained in any of the Loan Documents or available
pursuant to Applicable Law, and none of which shall be exclusive. Borrower agrees that any
requirement of notice to Borrower of any proposed public or private sale or other disposition of
any Collateral by Lender shall be deemed reasonable notice thereof, if given at least ten (10) days
prior thereto. Lender may purchase all or any part of the Collateral at a public sale or, if
permitted by Applicable Law, at any private sale, and, in lieu of actual payment of such purchase
price, may set off the amount of such price against the outstanding Obligations. The proceeds
realized from any sale or other disposition of Collateral may be applied first to any Extraordinary
Expenses incurred by Lender, second to interest accrued with respect to any of the Obligations, and
then to the principal balance of the Obligations. If any deficiency shall arise, Borrower and each
Obligor (excluding Validity Guarantors, which Lender shall have no recourse against any individual
assets) shall remain liable to Lender therefor. The failure or delay of Lender to require strict
performance by Borrower of any provision of the Loan Documents or to exercise or enforce any
rights, Liens, powers, or remedies under any of the Loan Documents shall not operate as a waiver of
such performance, Liens, rights, powers, and remedies, but all such rights, Liens, powers, and
remedies shall continue in full force and effect until all of the Obligations have been fully
satisfied.

SECTION 8. RELEASE AND INDEMNITY

8.1 Release

Borrower hereby releases Lender and its affiliates and their respective directors, officers,
employees, attorneys and agents and any other Person affiliated with or representing Lender (the
“Released Parties”) from any and all liability arising from acts or omissions under or pursuant to
this Agreement, whether based on errors of judgment or mistake of law or fact, except for those
arising from gross negligence and willful misconduct. In no circumstance will any of the Released
Parties be liable for lost
profits or other special or consequential damages. Such release is made on the date hereof and
remade upon each request for an Advance by Borrower.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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8.2 Indemnity

Borrower hereby agrees to indemnify the Released Parties and hold them harmless from and against
any and all claims, debts, liabilities, demands, obligations, actions, causes of action, penalties,
costs and expenses (including attorneys’ fees), of every nature, character and description, which
the Released Parties may sustain or incur based upon or arising out of any of the transactions
contemplated by this Agreement or the other Documents or any of the Obligations or any other
matter, cause or thing whatsoever occurred, done, omitted or suffered to be done by Lender relating
to Borrower or the Obligations (except any such amounts sustained or incurred as the result of the
gross negligence and willful misconduct of the Released Parties). Notwithstanding any provision in
this Agreement to the contrary, the indemnity agreement set forth in this Section shall survive any
termination of this Agreement.

SECTION 9. TERM

9.1 Effectiveness of Agreement

This Agreement will become effective when executed by Borrower and accepted by Lender in the State
of Georgia (the “Effective Date”), and will continue in effect for an initial term of two (2) years
(the “Initial Term”), and will continue thereafter automatically renewing annually (the “Renewal
Term”) unless terminated by either party as set forth in Section 9.2 of this Agreement or as
otherwise provided herein. Unless sooner demanded, all Obligations will become immediately due and
payable, without further notice or demand, upon any termination of this Agreement.

9.2 Termination

Borrower may terminate this Agreement only as of an Anniversary Date and then only by giving Lender
at least sixty (60) days prior written notice of termination, whereupon this Agreement shall
terminate on said Anniversary Date. Lender may terminate this Agreement at any time by giving
Borrower at least sixty (60) days prior written notice of termination, provided Lender may
terminate this Agreement immediately without prior notice to Borrower at any time an Event of
Default exists and this Agreement shall be deemed to have automatically terminated upon the
commencement of any Insolvency Proceeding by Borrower.

9.3 Early Termination Fee

If this Agreement is terminated by Borrower or automatically on the commencement of an Insolvency
Proceeding by Borrower (and whether such termination occurs on an Anniversary Date or otherwise),
or by Lender after the occurrence of and Event of Default, Lender will be entitled to a termination
fee (the “Early Termination Fee”), as liquidated damages for its loss of the benefit of the bargain
and not as a penalty (the parties acknowledging that the termination fee is a reasonable
calculation of Lender’s loss of the benefit of the bargain from any such termination). The Early
Termination Fee, calculated as follows, shall be due and payable on the effective date of
termination and thereafter shall bear interest at a rate equal to the highest rate applicable to
any of the Obligations:

	 	i.	 	Two percent (2%) of the Maximum Loan Amount, if terminated prior to the first
Anniversary Date of the Initial Term;

	 	ii.	 	One percent (1%) of the Maximum Loan Amount, if terminated after the First Anniversary
Date but within the first ten (10) months prior to the second Anniversary Date of the
Initial Term or if a Renewal Term is in effect, if terminated prior to the Anniversary
Date of the then current Renewal Term;

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

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9.4 Effect of Termination

No termination shall affect or impair any right or remedy of Lender or relieve Borrower of any of
the Obligations until all of the Obligations have been indefeasibly paid in full or performed.

SECTION 10. GENERAL PROVISIONS

10.1 Miscellaneous

This Agreement shall be governed by and construed in accordance with the internal laws of the State
of Georgia; may not be amended, except by written agreement of Borrower and Lender; expresses the
entire understanding of the parties hereto with respect to the subject matter hereof; may be
executed in one or more counterparts, each of which shall constitute an original, but all of which
taken together shall constitute but one and the same instrument; and shall be binding upon and
inure to the benefit of the respective successors and assigns of Borrower and Lender (provided that
Borrower may not assign or transfer any of its rights under this Agreement or other Loan Documents
without the prior written consent of Lender). The paragraph and section headings in this Agreement
are for convenience of reference only and shall not affect the substantive meaning of any provision
of this Agreement. Time is of the essence of this Agreement and all of the other Loan Documents.
All notices given under this Agreement shall be in writing and shall be given by hand delivery by a
reputable private delivery service, by regular first-class mail or certified mail return receipt
requested, addressed to Lender or Borrower at the address set forth hereinabove, or by facsimile
transmission to Borrower at 866-415-3534 or Lender at 770-493-5532, or such other address or
facsimile number as may be designated in writing by one party to the other delivered in accordance
with the provisions hereof.

10.2 Consent to Forum

Borrower hereby consents to the non-exclusive jurisdiction of any United States federal court
sitting in or with direct or indirect jurisdiction over the Northern District of Georgia or in any
Georgia state or superior court sitting in Fulton County, Georgia, in any action, suit or other
proceeding arising out of or relating to this Agreement or any of the other Loan Documents and
Borrower irrevocably agrees that all claims and demands in respect of any such action, suit or
proceeding may be heard and determined in any such court and irrevocably waives any objection it
may now or hereafter have as to the venue of any such action, suit or proceeding brought in any
such court or that such court is an inconvenient forum. Nothing herein shall limit the right of
Lender to bring proceedings against Borrower or with respect to any Collateral in the courts of any
other jurisdiction. Any judicial proceeding commenced by Borrower against Lender involving,
directly or indirectly, any matter in any way arising out of, related to or connected with any Loan
Document shall be brought only in a United States federal court sitting in or with direct
jurisdiction over the Northern District of Georgia or in any Georgia state or superior court
sitting in Fulton County, Georgia. Nothing in this Agreement shall be deemed to preclude the
enforcement by Lender of
any judgment or order obtained in such forum or the taking of any action under this Agreement
to enforce same in any other appropriate forum or jurisdiction.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

14

 

10.3 Waivers by Borrower

To the fullest extent permitted by Applicable Law, Borrower waives (i) the right to trial by jury
(which Lender hereby also waives) in any action, suit, proceeding or counterclaim of any kind
arising out of or related to any of the Loan Documents, the Obligations or the Collateral;
(ii) presentment, demand and protest and notice of presentment, protest, default, non-payment,
maturity, release, compromise, settlement, extension or renewal of any or all commercial paper,
accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held by
Lender on which Borrower may in any way be liable and hereby ratifies and confirms whatever Lender
may do in this regard; (iii) notice prior to taking possession or control of the Collateral or any
bond or security which might be required by any court prior to allowing Lender to exercise any of
Lender’s remedies; (iv) the benefit of all valuation, appraisement and exemption laws; (v) any
claim against any Lender, on any theory of liability, for special, indirect, consequential,
exemplary or punitive damages (as opposed to direct or actual damages) in respect of any claim for
breach of contract or any other theory of liability arising out of, or the taking of any
enforcement action, or related to any of the Loan Documents, any transaction thereunder or the use
of the proceeds of any Advances; and (vi) notice of acceptance hereof. Borrower acknowledges that
the foregoing waivers are a material inducement to Lender’s entering into this Agreement and that
Lender is relying upon the foregoing waivers in its future dealings with Borrower. Borrower
warrants and represents that it has reviewed the foregoing waivers with its legal counsel and has
knowingly and voluntarily waived its jury trial rights following consultation with legal counsel.
In the event of litigation, this Agreement may be filed as a written consent to a trial by
the court.

IN WITNESS WHEREOF, Borrower and Lender have signed this Agreement as of the date set forth in
the heading.

	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEAMSTAFF GOVERNMENT SOLUTIONS, INC.

D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS 

D/B/A TEAMSTAFF GOVT SOLUTIONS	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Zachary C. Parker	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Printed Name:
	 	Zachary C. Parker	 	 
	 

	 	 	 	Its:
	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PRESIDENTIAL FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Yung Simmons	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Printed Name:
	 	Yung Simmons	 	 
	 

	 	 	 	Its:
	 	Assistant Vice President	 	 

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

15

 

SCHEDULE A

Definitions

This Schedule is an integral part of the Loan and Security Agreement dated July 29, 2010, between
TEAMSTAFF GOVERNMENT SOLUTIONS, INC. D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS; D/B/A TEAMSTAFF GOVT
SOLUTIONS and PRESIDENTIAL FINANCIAL CORPORATION (the “Agreement”).

In addition to terms defined in the Agreement, as used in the Agreement, the following terms
have the following meanings:

“Accounts” means all of Borrower’s now owned or existing and future acquired or arising
“accounts”, as such term is defined in the UCC, and any and all other receivables (whether or not
specifically listed on schedules furnished to Lender), including, without limitation, all accounts
created by, or arising from, all of Borrower’s sales, leases, rentals or other dispositions of
goods or renditions of services to its customers (whether or not they have been earned by
performance), including but not limited to, those accounts arising from sales, leases, rentals or
other dispositions of goods or software sold or licensed or rendition of services made under any
of the trade names, logos or styles of Borrower, or through any division of Borrower, all contract
rights, notes, drafts, acceptances, general intangibles and other forms of obligations and
receivables, and any and all Supporting Obligations in respect thereof.

“Accounts and Securities” means all of Borrower’s money, deposit accounts, letters of credit,
letter of credit rights and investment property.

“Account Obligor” means the Person primarily obligated to pay an Account or Chattel Paper.

“Account Obligor Claim” means to any Account Obligor such Account Obligor’s dispute, claim,
offset, defense, deduction, rejection, recoupment, counterclaim or contra account with respect to
any Account Obligor, including any dispute or claim relative to price, terms, quality, quantity,
performance, workmanship (regardless of the merits of any such dispute or claim).

“Accounts Advance Rate” means a percentage established by Lender, which shall be 85% as of the
date of this Agreement, and which may be increased or decreased by Lender from time to time in the
exercise of its discretion.

“Advance” or “Advances” means a loan advance under this Agreement.

“Affiliate or Affiliates” means, with respect to any Person, any Person that owns or controls
directly or indirectly such Person, any Person that controls or is controlled by or is under common
control with such Person, and each of such Person’s senior executive officers, directors, partners
and, for any Person that is a limited liability company, such Persons, managers and members. For
purposes hereof, “control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through ownership of any
equity interest, by contract or otherwise.

“Anniversary Date” means the day that is 365 (or 366, as applicable) days after the date of
this Agreement and the same date in each year thereafter.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

16

 

“Applicable Law” means all laws, rules and regulations applicable to the Person, conduct,
transaction, covenant or Loan Document in question, including all applicable common law and
equitable principles; all provisions of all applicable state, federal and foreign constitutions,
statutes, rules, regulations and orders of governmental bodies; and orders, judgments and decrees
of all courts and arbitrators.

“Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. § 101 et seq.).

“Borrowing Base Certificate” means the report prepared by Borrower, in the form set forth on
Schedule D attached hereto, which provides the numerical value of Collateral as of a specific date
signed by an authorized officer of Borrower.

“Business Day” means a day other than a Saturday or Sunday or any other day on which Lender or
banks in Georgia are authorized to close.

“CCR” means Central Contractor Registration.

“Chattel Paper” means a record or records that evidence both a monetary obligation and a
security interest in specific goods, a security interest in specific goods and software used in the
goods, a lease of specific goods, or a lease of specific goods and license of software used in the
goods. As used in this paragraph, “monetary obligation” means a monetary obligation secured by the
goods or owed under a lease of the goods and includes a monetary obligation with respect to
software used in the goods.

“Central Contractor Registration” means the primary registrant database for the U.S. Federal
Government. CCR validates the registrant information and electronically shares the secure and
encrypted data with the federal agencies’ finance offices to facilitate paperless payments through
electronic funds transfer (EFT).

“Collateral” means all property and interests in property in or upon which a Lien is granted
pursuant to this Agreement or the other Loan Documents.

“Collections” means, with respect to any Account, all collections and other payments on or
with respect to such Account.

“Default” means any event, which with notice or passage of time, or both, would constitute an
Event of Default.

“DEFASE” means a web-based application developed specifically for contractors/vendors to
obtain invoice status.

“Department of Defense” means the federal department responsible for safeguarding national
security of the United States.

“Deposit Accounts” mean any and all demand, time, savings, passbooks or similar accounts
maintained with a bank.

“Deposit Account Agreement” means in form and substance reasonably acceptable to Lender,
executed and delivered by each Borrower and the applicable deposit bank.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

17

 

“Dilution” means a lessening of the value of the collateral that is caused by, but not limited
to, credits, discounts, returns, charge-backs, trade allowances, concentrations, slow pay, and bad
debts.

“DoD” means Department of Defense.

“Dollars” mean the legal tender of the United States of America.

“Eligible Account” means an Account which arises in the ordinary course of business of
Borrower from the rendition or performance of services and/or for the sale of goods, is payable in
Dollars, is subject to Lender’s duly perfected Lien and is deemed by Lender, in its discretion, to
be an Eligible Account. Without limiting the generality of the foregoing, the following Accounts
shall not be eligible:

	 	1.	 	With respect to an Account Obligor whose total obligations to Borrower exceed 30% of
all Accounts, the excess amount shall be excluded from Eligible Accounts, except for the
account debtors listed below or otherwise approved in writing by Lender.

	 	(a).	 	With respect to U.S. Governmental Agencies for which Lender has a properly
executed Assignment of Claims from Borrower the total obligations owed to Borrower
shall be deemed Eligible Accounts, subject to the eligibility criteria herein
described in section 2 below.

These above limits shall be adjusted by Lender, in its sole and reasonable discretion, as
deemed appropriate.

	 	2.	 	No Account shall be an Eligible Account if:

	 	(i)	 	the Account is more than 90 days from invoice date relative to
invoices with payment terms of 60 days or less);

	 	(ii)	 	25% or more of the Accounts from the Account Obligor are more than 90
days from invoice date;

	 	(iii)	 	the Account is subject to any Account Obligor Claim;

	 
	 	(iv)	 	the Account is not payable in Dollars;

	 	(v)	 	the Account is due and owing by an Account Obligor who is an
Affiliate of Borrower or a Person controlled by an Affiliate of Borrower;

	 	(vi)	 	the Account is due and owing by an Account Obligor who is not
creditworthy;

	 	(vii)	 	the Account is due and owing by an Account Obligor who does not have
its principal assets and place of business in the United States or Canada, unless
the sale is backed by a letter of credit acceptable to Lender;

	 
	 	(viii)	 	the Account is unbilled;

	 	(ix)	 	any covenant, representation or warranty contained in the Agreement
with respect to such Account has been breached;

	 	(x)	 	an Insolvency Proceeding has been commenced by or against the Account
Obligor or the Account Obligor has failed, suspended business or ceased to be
solvent;

	 
	 	(xi)	 	the Account is subject to a Lien other than a Permitted Lien;

	 	(xii)	 	the Account is evidenced by Chattel Paper or an Instrument of any
kind, or has been reduced to judgment;

	 	(xiii)	 	the Account represents, in whole or in part, a billing for interest, fees or
late charges;

	 	(xiv)	 	the Account is not evidenced by an invoice, statement or other
electronic or documentary evidence satisfactory to Lender;

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

18

 

	 	(xv)	 	the Account represents in whole, or the portion of the Account that
represents a billing for retro action billing rate increases associated with
certain government contracts of which Borrower has or had employees staffed on
contract assignments;

	 	(xvi)	 	the Account has been turned over or submitted to a third party for
collection;

	 	(xvii)	 	such Account is in the form of a cost report receivable owing from any
Governmental Authority, unless Lender has expressly agreed to include it in the
Borrowing Base as an Eligible Account;

	 	(xviii)	 	the Account arises from a sale to the Account Obligor on a bill-and-hold,
guaranteed sale, sale-or-return, sale-on-approval, consignment or any other
repurchase or return basis;

	 	(xix)	 	the Account is owing from the United States of America or which
amount is owing from the United States of America or any agency, department or
subdivision thereof, unless a properly executed assignment of claims has been
received by Lender; or

	 	(xx)	 	the Account does not comply with such other criteria and requirements
as may be specified from time to time by Lender in its discretion.

“Extraordinary Expenses” means all costs and expenses (including legal fees) incurred by
Lender in connection with the enforcement of any of its rights or remedies under this Agreement,
including any costs and expenses incurred in connection with its repossession of any of the
Collateral, collection of any of the Collateral, storing or removing any of the Collateral, or
advertising for sale or selling any of the Collateral.

“Furniture, Fixtures and Equipment” means all of Borrower’s presently owned and hereafter
acquired machinery, furniture, fixtures and equipment wherever located (all of the foregoing being
hereinafter collectively referred to as the “FF&E”).

“GAAP” means United States generally accepted accounting principles as in effect from time to
time, consistently applied.

“General Intangibles” means any personal property, including things in action, other than
accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments,
investment property, letter of credit rights, letters of credit, money, and oil, gas, or other
minerals before extraction. The term includes payment intangibles and software.

“Governmental Unit” means a subdivision, agency, department, county, parish, municipality, or
other unit of the government of the United States, a state, or a foreign country. The term includes
an organization having a separate corporate existence if the organization is eligible to issue debt
on which interest is exempt from income taxation under the laws of the United States.

“Instruments” mean any and all negotiable instruments or any other writings that evidence a
right to the payment of a monetary obligation, are not themselves a security agreement or lease,
and are of a type that in ordinary course of business is transferred by delivery with any necessary
endorsement or assignment.

“Insolvency Proceeding” means any case or proceeding commenced by or against a Person under
the Bankruptcy Code or any other applicable insolvency law; as an assignment by a Person for the
benefit of such Person’s creditors; or for the appointment of a receiver, trustee, or other
custodian for a Person or any of such Person’s property.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

19

 

“Inventory” means all of Borrower’s finished goods and inventory, packing and shipping
supplies, all goods intended to be sold or used by Borrower or to be furnished by Borrower under
contracts of service, including all raw materials, goods in process, finished goods, materials and
supplies of every kind and nature, used or usable in connection with the manufacture,
shipping, advertising, selling, leasing or furnishing of such goods, all documents evidencing or
representing the same and all documents of title, all negotiable and non-negotiable warehouse
receipts representing the same and all products, accounts and proceeds resulting from the sale or
other disposition of the foregoing, that may be rejected, returned repossessed or stopped in
transit and all other items, customarily classified as inventory (all of the foregoing being
hereinafter collectively referred to as the “Inventory”);

“Investment Property” means a security, whether certificated or uncertificated, security
entitlement, securities account, commodity contract, or commodity account.

“Lien” means any security interest in, or common law, statutory or contractual lien with
respect to, any property of a Person. For the purpose of this Agreement, Borrower shall be deemed
to be the owner of any property which it has acquired or holds subject to a conditional sale
agreement or other arrangement pursuant to which title to the property has been retained by or
vested in some other Person for security purposes.

“Loans” means all monies advanced by the Lender to the Borrower pursuant to the terms of this
Agreement.

“Loan Documents” means the Agreement and all notes, guaranties, security agreements,
certificates, Landlord’s agreements, Bank Agreements, Deposit Account Agreements and all other
agreements, documents and instruments now or hereafter executed or delivered by Borrower or any
Obligor in connection with, or to evidence the transactions contemplated by, this Agreement.

“Material Adverse Change” means any of the following occurring after the date of the latest
financial statements of Borrower submitted to Lender on or before the effective date of this
Agreement: any change in ownership of Borrower prohibited by this Agreement, losses to Borrower
significantly in excess of losses in the twelve month period preceding the effective date of this
Agreement, any significant decline of revenues, any change that has been or reasonably could be
expected to be material and adverse to the value of any of the Collateral or to the business,
operations, prospects, properties, assets, liabilities, or financial condition of Borrower.

“Maximum Loan Amount” means One Million Five Hundred Thousand and No/100 Dollars
($1,500,000.00).

“Obligations” means all present and future Advances, Loans, debts, liabilities, obligations,
guaranties, covenants, duties and indebtedness at any time owing by Borrower or any Obligor
(excluding Validity Guarantors) to Lender, whether evidenced by or arising under the Agreement or
any other Loan Document, whether arising from an extension of credit, guaranty, indemnification or
otherwise whether direct or indirect (including those acquired by assignment and any participation
by Lender in Borrower’s indebtedness owing to others), whether absolute or contingent, whether due
or to become due, and whether arising before or after the commencement of a proceeding under the
Bankruptcy Code or any similar statute, including all interest, charges, expenses, fees, attorney’s
fees, expert witness fees, audit fees, letter of credit fees, loan fees, Early Termination Fees and
any other sums chargeable to, or reimbursable by, Borrower under the Agreement or under any other
Loan Document.

“Obligor” means any guarantor, endorser, acceptor, surety or other person liable on, or with
respect to, the Obligations or who is the owner of any property that is security for the
Obligations, other than Borrower.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

20

 

“Other Property” means any and all other property of any nature whatsoever of Borrower now or
hereafter in the possession of, assigned to or hypothecated to Lender for any purpose, including,
but not limited to balances, credits, deposits, accounts, items and monies of Borrower now or
hereafter with Lender and all dividends and distributions on or rights in connection with any such
property and all rights of Borrower earned or to be earned under contracts to sell goods or render
services.

“Payment Account” means an account maintained by Lender to which all Collections or other
monies from time to time remitted as directed and deposited by Lender shall be transferred and all
other payments by Borrower to Lender shall be sent in immediately available federal funds.

“Payment Notice” means the notice placed on each invoice, directing the Account to remit only
to the Lockbox or if to be made by wire transfer, Automated Clearing House (“ACH”) or other
electronic means, to an account designated by Lender. Payment made to any other party or location
will not constitute valid payment of the invoice. Notice: TeamStaff Government Solutions, Inc.
d/b/a TeamStaff Government Solutions; d/b/a TeamStaff Govt Solutions, P O Box 105328, Atlanta GA
30348-5328.

“Permitted Liens” means Liens in favor of Lender and any other Liens agreed or consented to by
Lender in writing.

“Person” means any individual, sole proprietorship, partnership, joint venture, limited
liability company, trust, unincorporated organization, association, corporation, government or any
agency or political division thereof, or any other entity.

“Prime Rate” means the per annum rate of prime rate of interest quoted in The Wall Street
Journal from time to time. If the Wall Street Journal Prime becomes unavailable during the term of
this Agreement, Lender may designate a substitute index after notice to Borrower.

“Procedures Letter” means the letter dated as of July 29, 2010 issued by Lender and agreed to
by Borrower which sets forth the procedures with respect to Advances and reporting to the extent
such procedures are not covered in this Agreement.

“Proceeds” means all substitutions, improvements, accessions, additions, renewals and
replacements of or to any of the Collateral (including, but not limited to, returned or unearned
premiums from any insurance written in connection with this Agreement) and all proceeds of any of
the foregoing, including, but not limited to, any and all proceeds in the form of Accounts and
Inventory.

“Projections” are estimates based on certain assumptions or past trends.

“Records” means all of Borrower’s books and records relating to its business or assets,
including records pertaining to any Collateral. Without limiting the generality of the foregoing,
Borrower’s accounting and financial records will include all records (whether paper, computer or
electronic) data, tapes, discs, or other media and all programs, files, records and procedure
manuals relating thereto wherever located.

“Supporting Obligations” mean a letter of credit right or secondary obligation that supports
the payment or performance of an account, chattel paper, a document, a general intangible, an
instrument, or investment property.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

21

 

“Term” means the period commencing on the date of this Agreement and ending on the date on
which this Agreement is terminated pursuant to Section 9.2.

“UCC” means, at any given time, the Uniform Commercial Code as adopted and in effect at such
time in the State of Georgia.

“WAWF” means Wide Area Work Flow.

“Wide Area Work Flow” means a Paperless Contracting DoD-wide application designed to eliminate
paper from the receipts and acceptance process of the DoD contracting lifecycle.

All accounting terms used in the Agreement, unless otherwise indicated, shall have the meanings
given to such terms in accordance with GAAP. All other terms contained in the Agreement, unless
otherwise indicated, shall have the meanings provided by the UCC, to the extent such terms are
defined therein. The term “including,” whenever used in the Agreement, shall mean “including, but
not limited to.” The singular form of any term shall include the plural form, and vice versa, when
the context so requires. References to Sections, subsections and Schedules are to Sections and
subsections of, and Schedules to, the Agreement; to agreements and statutes shall include all
amendments thereto and successor statutes in the case of statutes; to the time of day shall mean
the time of day on the day in question in Alpharetta, Georgia; to Lender’s discretion means
Lender’s sole and absolute discretion.

[*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [***],
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 

22Exhibit 10.2

Exhibit 10.2

SECURED PROMISSORY NOTE

Alpharetta, Georgia

Date: July 29, 2010

$1,500,000.00

FOR VALUE RECEIVED, the undersigned (the “Borrower”) promises to pay on demand to the order of
Presidential Financial Corporation (the “Lender”) at the Lender’s main office in Alpharetta,
Georgia, or at such other place as Lender may designate, the principal amount of ONE MILLION FIVE
HUNDRED THOUSAND AND NO/100 DOLLARS ($1,500,000.00) or so much thereof as may from time to time be
unpaid and outstanding, together with interest per annum thereon at the rate of the greater of one
point nine-five percent (1.95%) above “Wall Street Journal Prime”, with Wall Street Journal Prime
being the prime rate of interest quoted in The Wall Street Journal from time to time, or at the
rate of three point two-five percent (3.25%) (whichever rate is applicable from time to time shall
be referred to herein as the “Interest Rate”). If Wall Street Journal Prime becomes unavailable
during the term of this Note, Lender may designate a substitute index. The initial interest rate
hereunder shall be five point two-zero percent (5.20%). The interest rate hereunder shall adjust on
the published effective date of any change in Wall Street Journal Prime (or any substitute index).
All payments received will first be applied to interest and other charges due and owing to the
Lender, and any remaining amount shall then be applied to principal.

This Secured Promissory Note (this “Note”) is the Secured Promissory Note referred to in, is
secured by the collateral in which Borrower granted a security interest under, and is entitled to
the benefits of, the Loan and Security Agreement executed by Borrower in favor of Lender
contemporaneously herewith (the “Loan Agreement”). Lender, from time to time, shall make advances
and re-advances as may be requested by Borrower and accept payments in accordance with and subject
to the provisions of this Note and the Loan Agreement. The amount outstanding under this Note may
vary from time to time by increases of up to the maximum principal amount stated above plus accrued
interest, other charges and expenses, and decreases down to no outstanding principal or accrued
interest, other charges and expenses.

The interest rate on the principal indebtedness evidenced by this Note is as stated above.
All other fees and charges (including without limitation the “Service Charge” defined below) paid
in connection with this Note by Borrower to the Lender are payments for the services of
originating, booking, servicing and maintaining the loan and other administrative services
(including, but not limited to, periodic audits) as set forth in O.C.G.A. Section 7-4-2(A) (1) and
do not constitute fees for the use of money. Interest herein shall accrue daily and is due and
payable on the last day of each month.

In addition to interest, Borrower will pay Lender a monthly service charge (“Service Charge”),
which shall be earned by and due and payable to Lender as set forth on Schedule B of the Loan
Agreement. Any Service Charge for which Borrower is obligated shall be added to Borrower’s loan
account immediately before any payment in full of all of Borrower’s obligations under this Note.

THE PARTIES AGREE THAT, AND BORROWER INSTRUCTS LENDER THAT, IMMEDIATELY UPON ACCRUAL OF
INTEREST AND OTHER CHARGES PROVIDED FOR HEREIN AND IN THE LOAN AGREEMENT (INCLUDING, BUT NOT
LIMITED TO, THE SERVICE CHARGES), SUCH INTEREST AND OTHER CHARGES SHALL BE PAID BY ADVANCES
HEREUNDER AND CHARGED TO BORROWER’S LOAN ACCOUNT WITH LENDER. SUCH ADVANCES SHALL THEREAFTER BEAR
INTEREST AND BE SUBJECT TO OTHER CHARGES UPON THE SAME TERMS AS OTHER ADVANCES HEREUNDER, AND SUCH
ADVANCES ARE AGREED BY THE PARTIES TO BE PRINCIPAL PURSUANT TO O.C.G.A. SECTION 7-4-2(A)(3).
BORROWER SPECIFICALLY AGREES, BY EXECUTION OF THIS NOTE, TO THIS TREATMENT OF ALL ACCRUED BUT
UNPAID INTEREST AND OTHER CHARGES UNDER THIS NOTE AND THE LOAN AGREEMENT.

 

 

 

All computations of interest shall be calculated on a daily basis upon the unpaid balance with
each day representing 1/360th of a year. Each advance under this Note shall be added to the
outstanding balance under this Note and shall accrue interest commencing on the effective date of
the transfer of the advance proceeds originated by Lender or the date of issue of the check or
other payment instrument by Lender disbursing the advance proceeds, regardless of the date Borrower
actually obtains access to the funds. Upon and after Lender’s sending notice to Borrower that
Borrower is in default under this Note or the Loan Agreement, in lieu of the above-described
Interest Rate, the Borrower agrees to pay interest at a Default Interest Rate equal to the Wall
Street Journal Prime plus 4%, and interest under this Note shall thereafter be calculated using the
Default Interest Rate.

It is the intention of Lender and Borrower to conform strictly to any applicable laws.
Accordingly, if the transactions contemplated hereby would violate applicable law governing the
Highest Lawful Rate (as defined below), then, in that event, notwithstanding anything to the
contrary in this Note, the Loan Agreement or any other agreement entered into in connection with or
as security for or guaranteeing this Note, the following will apply: the aggregate of all payments
which constitute interest under applicable law that is contracted for, taken, reserved, charged, or
received by Lender under this Note or the Loan Agreement or under any other agreement entered into
in connection with or as security for or guaranteeing this Note shall under no circumstances be in
an amount or at a rate that would otherwise cause a violation of law or exceed the Highest Lawful
Rate (as defined below), and any excess shall be canceled automatically and, if theretofore paid,
shall, at the option of Lender, be credited by Lender on the principal amount of any indebtedness
owed to Lender by Borrower or refunded by Lender to Borrower.

“Highest Lawful Rate” means the maximum interest rate that at any time or from time to time
may be lawfully contracted for, taken, reserved, charged, or received on amounts due to Lender,
under laws applicable to Borrower or Lender with regard to this Note that are presently in effect
or, to the extent allowed by law, under such applicable laws that then allow a higher maximum
lawful rate than applicable laws now allow.

Any act of default by Borrower under the Loan Agreement and any default by Borrower under its
obligations under the Loan Agreement shall constitute a default under this Note. Time is of the
essence of this Note.

Borrower hereby waives demand, presentment, notice, protest and notice of dishonor and
diligence in collection or bringing suit and agrees that Lender may accept partial payment, or
release or exchange security or collateral, without discharging or releasing any unreleased
collateral or the obligations evidenced hereby. Borrower further waives any and all rights of
exemption, both as to personal and real property, under the constitution or laws of the United
States, the State of Georgia, or any other state or jurisdiction. Lender shall not be deemed to
waive or have waived any of its rights hereunder unless such waiver is in writing and signed by
Lender, and no failure, delay or omission by Lender in exercising any of its rights shall operate
as a waiver of such rights. A waiver by Lender in writing on one occasion shall not be construed
as a consent to or a waiver of any right or remedy on any future occasion.

Borrower agrees to pay reasonable attorneys’ fees and costs incurred by Lender in collecting
or attempting to collect this Note, whether by suit or otherwise. Attorney’s fees relating to
collection for which Borrower shall be responsible to reimburse Lender shall be equal to the lesser
of: (a) actual fees and expenses or (b) fifteen percent (15%) of the principal and interest owed
hereunder at the time of commencement of collection activities or the maximum amount permitted by
law then in effect.

The word “Borrower” as used herein shall include the plural, should more than one execute this
Note; the masculine and feminine gender, regardless of the sex of Borrower or any of them;
partnerships, corporations, and other legal entities, should such an entity execute this Note; and
the heirs, legal representatives, successors and assigns of Borrower. The undersigned, if more
than one, shall be jointly and severally liable hereunder and all provisions hereof shall apply to
each of them. The word “Lender” as used herein shall when the circumstances or context requires,
include the plural and the successors and assigns of Lender.

 

 

 

The loan evidenced hereby has been made and this Note has been made and delivered in the State
of Georgia. THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF
GEORGIA AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT AND IN ALL OTHER
RESPECTS, INCLUDING, WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, and
shall be binding upon Borrower (and each one of them, if more than one) and Borrower’s heirs, legal
representatives, successors and assigns (and each one of them, if more than one). If this Note
contains any blanks when executed by Borrower, Lender is hereby authorized, without notice to
Borrower, to complete any such blanks according to the terms upon which the loan or loans were
granted.

To induce Lender to make the loan evidenced by this Note, the Borrower (i) irrevocably agrees
that all actions by Borrower arising directly or indirectly as a result or in consequence of this
Note or any other agreement with Lender, or the Collateral, shall be instituted and litigated only
in courts having situs in the County of Fulton, State of Georgia; (ii) hereby consents to the
exclusive jurisdiction and venue of any state or federal court located and having its situs in said
county; and (iii) waives any objection based upon forum non-conveniens. Notwithstanding the
foregoing, nothing contained in this paragraph shall prevent Lender from bringing any action or
exercising any rights against Borrower, any guarantor (excluding Validity Guarantors, which Lender
shall have no recourse to individual assets), any security for the Note, or any of Borrower’s or
any guarantor’s properties in any other county, state or jurisdiction. Initiating such action or
proceeding or taking any such action in any other state or jurisdiction shall in no event
constitute a waiver by Lender of any of the foregoing. IN ADDITION, LENDER AND THE BORROWER (OR
ANY ONE OF THEM, IF MORE THAN ONE) HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH
PERTAINS DIRECTLY OR INDIRECTLY TO THIS NOTE, THE OBLIGATIONS, THE COLLATERAL, ANY ALLEGED TORTIOUS
CONDUCT BY THE BORROWER OR LENDER WHICH MAY IN ANY WAY, DIRECTLY OR INDIRECTLY, ARISE OUT OF OR
RELATES TO THE RELATIONSHIP BETWEEN THE BORROWER AND LENDER.

	 	 	 	 	 
	 	TEAMSTAFF GOVERNMENT SOLUTIONS, INC.

D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS;

D/B/A TEAMSTAFF GOVT SOLUTIONS

 	 
	 	By:  	/s/ Zachary C. Parker
 	 
	 	 	Name:  	Zachary C. Parker 	 
	 	 	Title:  	CEO

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