Document:

exv10w14

 

Exhibit 10.14

NONCOMPETITION AGREEMENT

          THIS NONCOMPETITION AGREEMENT (this “Agreement”) is made and entered into as of March 31,
2006, by and between Global Employment Holdings, Inc., a Delaware corporation (“Holdings”), Global
Employment Solutions, Inc., a Colorado corporation (“GES”), and                      (“Employee”).
References herein to the Company are to GES and Holdings, individually and collectively.

RECITALS

          1.
GES has entered into a Notes Securities Purchase Agreement, dated
March 31, 2006, by and
among GES and the investors listed on the Schedule of Buyers attached thereto, a Preferred Stock
Securities Purchase Agreement, dated March 31, 2006, by and among GES and the investors listed on
the Schedule of Buyers attached thereto and a Common Stock Securities Purchase Agreement, dated
March 31, 2006, by and among GES and the investors listed on the Schedule of Buyers attached
thereto, pursuant to which the Company will issue, as applicable, senior convertible notes, shares
of Series A Convertible Preferred Stock, shares of common stock and warrants (collectively, the
“Purchase Agreements”). The investors that are party to the Purchase Agreements are collectively
referred to herein as the “Investors”.

          2. Employee is a shareholder of the Company, and as a result of the consummation of the
transactions contemplated by the Purchase Agreements (the “Transactions”), Employee will receive
significant consideration in exchange for a portion of Employee’s ownership in the Company pursuant
to the terms of the Transactions.

          4. After the consummation of the Transactions, Employee will continue in his current
employment with the Company, pursuant to the Employment Agreement between him and the Company dated                     
(the “Employment Agreement”).

          5. As a condition to the Investors’ obligations to proceed with the Transactions, and to
preserve the value of the business of GES and Holdings, the Purchase Agreements contemplate, among
other things, that Employee shall enter into this Agreement.

          6. The parties hereto agree that it would be detrimental to GES, Holdings and the Investors if
Employee, directly or indirectly, were to compete with GES or Holdings in the Business (as that
term is defined below). The Investors are intended third party beneficiaries of this Agreement.

          NOW, THEREFORE, in consideration of the above recitals, the promises, covenants and agreements
set forth herein, the consummation of the Transactions, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

     1. Noncompetition. Employee, during the term of Employee’s employment by the Company
and for a period of one year thereafter (the “Non-Compete Period”), shall not, directly or
indirectly, either individually or with others, engage or participate in, or have any interest in,

 

 

as an owner, director, officer, partner, member, manager, employee, representative, lender,
agent, consultant, advisor or otherwise, any entity or business engaged in, or that competes with,
the business of GES or Holdings (as such business is conducted at any time during the term of
Employee’s employment or as such business has been, or is, proposed to be conducted on the date of
termination of Employee’s employment, (the “Business”)) within the greater of the Company’s actual
market or 100 miles of any location at which the Company or its affiliates conduct business or plan
to conduct business on such date (each, a “Territory”), provided, however, that ownership of up to
5% of any class of voting securities of any entity registered under the Securities Exchange Act of
1934, as amended (the “1934 Act”), and publicly traded on a national securities exchange or market
shall not be a violation of this Section 1.

     2. Employees. Employee, during the Non-Compete Period, shall not, either directly or
indirectly, and will not assist any third party to, solicit, recruit or hire, or take any other
action that is intended to solicit, recruit or hire, any person who is then an employee of the
Company, or who has been an employee of the Company during the preceding 180 days, or otherwise
encourage, or take any action intended to encourage, any person who is then an employee of the
Company, or who has been an employee of the Company during the preceding 180 days, to terminate his
or her employment with the Company.

     3. Customers. Employee, during the Non-Compete Period, shall not, either directly or
indirectly, and will not assist any third party to, solicit, or take any other action that is
intended to solicit, with respect to the Business or any other business or activity that competes
with the Business of the Company any customer of the Company, or any person or entity who was a
customer of the Company at any time during the 12 months preceding such solicitation or other
action.

     4. Enforcement.

          (a) If the duration, scope or area restrictions contained in this Agreement are found to be
unreasonable under the circumstances then existing, the parties hereto agree that the maximum
duration, scope or area reasonable under such circumstances shall be substituted for the stated
duration scope or area.

          (b) The covenants contained in Sections 1, 2 and 3 above shall be deemed a series of separate
covenants for each and every Territory and if any of the covenants for one or more such
jurisdictions is determined to be unenforceable the remaining covenants shall continue to be
effective.

          (c) Employee acknowledges that (i) the goodwill associated with the existing business,
customers and assets of the Company is an integral component of the value of the Company and is
reflected in the consideration payable to Employee pursuant to the Transactions, and (ii)
Employee’s covenants and agreements as set forth in this Agreement are necessary to preserve the
value of the Company following the consummation of the Transactions. Employee also acknowledges
that the limitations of time, geography and scope of activity agreed to in this Agreement are
reasonable because, among other things, (1) the Company is engaged in a competitive industry, (2)
Employee has unique access to, and will continue to have access to, trade secrets, confidential
information and know-how of the Company, (3) Employee is receiving

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significant consideration in connection with the Transactions and (4) in the event Employee’s
employment with the Company ended, Employee would be able to obtain suitable and satisfactory
employment without violation of this Agreement.

     5. Employee Lock-up. Employee shall not sell, dispose of, transfer, gift, pledge,
make any short sale of, grant any option for the purchase of, or enter into any hedging, derivative
or similar transaction with the same economic effect as a sale of, (i) any common stock or other
securities of Holdings owned of record or beneficially by the Employee on the Closing Date (the
“Securities”) for a period of one year from the Closing Date (as defined in the Purchase
Agreements) (the “Lock-Up Period”) or (ii) more than one-third of the Securities for a period of
two years from the Closing Date (as defined in the Purchase Agreements); provided, however, that
Employee may transfer Securities solely for estate planning purposes in one or more private
transactions during such periods so long as the Securities remain subject to, and transferee agrees
in writing to be bound by, the provisions of this Section 5. In order to enforce the foregoing
covenant, the Company may impose stop-transfer instructions with respect to any Securities held by
the Employee until the end of such period. Beneficial ownership of Securities shall be determined
in accordance with Rule 13d-3 of the 1934 Act.

     6. Survival.

          All recitals, covenants, commitments and agreements of any of the parties made in this
Agreement survive the execution and delivery of this Agreement and the closing of the Transactions.

     7. Miscellaneous.

          (a) Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

If to GES or Holdings:

	 	 	 
	 

	 	Global Employment Solutions, Inc.
	 

	 	9090 Ridgeline Boulevard, Suite 205
	 

	 	Littleton, Colorado 80129
	 

	 	Telephone: (303) 216-9500
	 

	 	Facsimile: (303) 216-9533
	 

	 	Attention:

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Copy to:

	 	 	 
	 

	 	Brownstein Hyatt & Farber, P.C.
	 

	 	410 17th Street
	 

	 	Denver, CO 80202
	 

	 	Telephone: (303) 223-1160
	 

	 	Facsimile: (303) 223-1111
	 

	 	Attention: Jeff Knetsch

If to Employee:

Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such
transmission (C) provided by an overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from an overnight courier service in accordance with
clause (i), (ii) or (iii) above, respectively.

          (b) Severability. In the event that any provision or term of this Agreement, or any
word, phrase, clause, sentence or other portion thereof (including, without limitation, the
geographic and temporal restrictions and provisions contained in this Agreement), is held to be
unenforceable or invalid for any reason, such provision or portion
thereof will be modified or deleted in such a manner as to make this Agreement, as modified, legal and enforceable to the
fullest extent permitted under applicable laws.

          (c) Successors and Assigns. The terms and provisions set forth in this Agreement
inure to the benefit of and are enforceable by GES and Holdings and of their successors, assigns
and successors-in-interest, including without limitation any corporation or other entity with which
GES or Holdings may be merged or by which they may be acquired, or which may be the acquiring
entity in an asset sale transaction or other form of reorganization. This Agreement may not be
assigned by Employee.

          (d) Headings; Counterparts. The headings of paragraphs in this Agreement are for
convenience only and shall not affect its interpretation. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original and all of which, when taken
together, shall be deemed to constitute the same Agreement.

          (e) Construction. As used in this Agreement, the masculine, feminine or neuter
gender, and the singular or plural, shall be deemed to include the others whenever and

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wherever the context so requires. Unless otherwise expressly provided, the word “including”
does not limit the preceding words or terms.

          (f) Governing Law. This Agreement is made pursuant to, and shall be construed and
enforced in accordance with, the laws of the State of Delaware and the federal laws of the United
States of America, to the extent applicable, without giving effect to otherwise applicable
principles of conflicts of law.

          (g) Equitable Remedies. Employee acknowledges that his expertise in the Business is
of a special and unique character which gives this expertise a particular value, and that a breach
of this Agreement by Employee or any entity he controls will cause serious and potentially
irreparable harm to the Company and each of its affiliates. Employee also acknowledges that the
provisions of this Agreement constitute an important part of the consideration received by the
Investors in connection with the Transactions. Employee therefore acknowledges that a breach of
this Agreement by Employee cannot be adequately compensated in an action for damages at law, and
equitable relief would be necessary to protect the Company and each of its affiliates from a
violation of this Agreement and from the harm which this Agreement is intended to prevent. By
reason thereof, Employee acknowledges that GES, Holdings and each of its affiliates are entitled,
in addition to any other remedies they may have under this Agreement or otherwise, to preliminary
and permanent injunctive and other equitable relief to prevent or curtail any breach of this
Agreement without any requirement to post bond. Employee acknowledges, however, that no
specification in this Agreement of a specific legal or equitable remedy may be construed as a
waiver of or prohibition against pursuing other legal or equitable remedies in the event of a
breach of this Agreement by Employee.

          (h) Arbitration. Subject to the exceptions set forth below, Employee agrees that any
and all claims or disputes that Employee has with GES or Holdings that arise under the terms of
this Agreement shall be resolved through final and biding arbitration, as specified herein.
Binding arbitration will be conducted in the City of Wilmington, State of Delaware in accordance
with the rules and regulations of the American Arbitration Association (AAA), by an arbitrator
selected from the AAA Commercial Disputes Panel. Employee understands and agrees that the
arbitration shall be instead of any jury trial and that the arbitrator’s decision shall be final
and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction
thereof. The cost of such arbitrator and arbitration services shall be borne equally by the
parties or as otherwise directed by the arbitrator. Any decision or award of the arbitrator shall
be final and conclusive on the parties to this Agreement and their respective affiliates, and there
shall be no appeal therefrom other than from gross negligence or willful misconduct. This Section
7(h) shall not limit the right of GES, Holdings or any other person to seek judicial relief
pursuant to this Agreement without prior arbitration. GES, Holdings and Employee irrevocably
consent to the jurisdiction of the United States federal courts and the state courts located in the
County of New Castle, State of Delaware, in any suit or proceeding based on or arising under this
Agreement and irrevocably agree that all claims in respect of such suit or proceeding may be
determined in such courts. Employee irrevocably waives the defense of an inconvenient forum to the
maintenance of such suit or proceeding in such forum. Employee agrees that a final non-appealable
judgment in any such suit or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on such judgment or in any other lawful manner.

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          (i) Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (j) Further Assurances. Each of the parties hereto shall execute such further
instruments and take such additional actions as the other party shall reasonably request in order
to effectuate the purposes of this Agreement.

          (k) Waivers. No waiver of any term, provision or condition of this Agreement, whether
by conduct or otherwise, in any one or more instances, will be deemed to be, or may be construed
as, a further or continuing waiver of any such term, provision or condition.

          (l) Modification. No amendment, modification, or waiver of this Agreement shall be
effective unless in writing. Neither the failure nor any delay on the part of any party to
exercise any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy preclude any other or further exercise of the same or of
any other right or remedy with respect to such occurrence or with respect to any other occurrence.

          (m) Employment Agreement. The provisions of this Agreement are intended to be in
addition to, and not in replacement of, the provisions of the Employment Agreement. To the extent
that any provisions hereof shall conflict with the terms and provisions of the Employment
Agreement, the terms and provisions of this Agreement shall control.

          (n) Investors Intended Third Party Beneficiaries. The Investors are intended third
party beneficiaries of this Agreement and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto.

[Signature Page Follows]

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          IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first
above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Employee]	 	 

[SIGNATURE PAGE TO NONCOMPETITION AGREEMENT]exv10w15

 

Exhibit 10.15

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated as of January 1, 2004 between Global
Employment Solutions, Inc., a Colorado corporation (the “Company”), and Howard Brill (“Employee”).

     Employee and the Company are party to an Employment Agreement dated as of January 1, 2001
(the “Original Agreement”). The parties desire to amend and restate the Original Agreement. This
Agreement provides for the continued employment of Employee as President and Chief Executive
Officer of the Company upon the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual undertakings contained herein, the parties
agree as follows:

ARTICLE 1. EMPLOYMENT

          1.1 Employment. The Company agrees to continue to employ Employee, and
Employee hereby accepts continued employment with the Company, upon the terms and conditions
set forth in this Agreement for the period beginning on January 1, 2004 (the “Effective Date”)
and ending as provided in Section 1.4 (the “Employment Period”).

          1.2 Position and Duties.

               (a) During the Employment Period, Employee shall serve as President and
Chief Executive Officer of the Company. Employee shall report directly to the Board.

               (b) Employee shall be responsible for the operation and performance of
the Company and will have the responsibilities and carry out the customary functions of a
President
and Chief Executive Officer.

               (c) Employee shall devote his best efforts and his full business time and
attention (except for reasonable amounts of time devoted to civic and charitable causes,
permitted
vacation periods and reasonable periods of illness or other incapacity) to the business and
affairs of
the Company and its Subsidiaries. Employee shall perform his duties and responsibilities to the
best
of his abilities in a diligent, trustworthy, businesslike and efficient manner.

          1.3 Salary, Bonus, Options and Benefits.

               (a) During the Employment Period, Employee’s base salary (the “Base Salary”) shall be
$300,000 per annum which salary shall be payable in regular installments in accordance with the
Company’s general payroll practices. In addition, the compensation committee of the Board shall
annually review Employee’s Base Salary and bonus; provided, however, the compensation committee
shall not reduce the Base Salary or bonus.

 

 

               (b) During the Employment Period, Employee shall be entitled to
participate in all of the Company’s employee benefit programs for which similarly
situated
employees of the Company and its Subsidiaries are generally eligible. In addition,
Executive shall be
entitled to a monthly car allowance of $950, and an annual discretionary expense
account of $5,000.
Options previously granted to Employee shall continue to vest in accordance with
their terms.
Employee shall be entitled to 4 weeks paid vacation per year; provided that only 1
week of any
unused vacation may be carried forward to the next succeeding year.

               (c) At the end of each fiscal year during the Employment Period,
Employee shall be eligible to receive a bonus (the “EBITDA Bonus”), based on the
Company’s
achieving the specific annual EBITDA target (the “EBITDA Target”) established
annually by the
Board. For 2004, the EBITDA Bonus shall be paid as follows:

	 	 	 	 	 
	EBITDA TARGET	 	Bonus Payable	 
	$7,000,000 but less than $7,700,000
	 	$	90,000	 
	$7,700,000
	 	$	150,000	 
	More than $7,700,000
	 	$	150,000 plus 5% of the amount of the excess over $7,700,000

For fiscal years after 2004, the EBITDA Target and Bonus Payable will be
established by the Board at the time the annual budget is approved.

               Promptly after the Company’s receipt of an annual audit (the “Audit”) generated by
the Company’s accountants, but in no case later than 120 days after the Company’s
fiscal year-end, the Company shall notify Employee of the EBITDA Bonus earned in the
preceding fiscal year. Employee must be employed with the Company or its subsidiaries
as of the end of each fiscal year to be eligible for the EBITDA Bonus. For purposes of
this Section 1.3(c), EBITDA shall mean the Company’s consolidated net income, plus
interest, taxes, depreciation and amortization deducted in determining net income,
excluding any charges for write-downs of worker’s compensation reserves for years prior
to 2004..

               (d) The Company shall reimburse Employee for all reasonable out-of-pocket expenses
incurred by him in the course of performing his duties under this Agreement upon
completion of an expense report in accordance with the Company’s and its Subsidiaries’
reimbursement, reporting and documentation policies in effect from time to time with
respect to travel, entertainment and other business expenses.

     1.4 Term. (a) The Employment Period shall terminate on the earlier to
occur of (i) the date of Employee’s death or Disability (as determined by the Board),
(ii) the date determined by the Board for Cause, (iii) the date determined by the Board
without Cause, (iv) the date of voluntary resignation by Employee or (v) the third
anniversary of the Effective Date; provided, however, that upon mutual written
agreement between the Company and Employee, the Employment Period can be extended for
up to 2 additional 12 month periods.

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               (b) If
the Employment Period is terminated without Cause, Employee shall
be entitled to continue to receive for one year (x) health insurance benefits under the
Company’s
health insurance plan; provided, however, that such benefits shall discontinue if Employee is
otherwise employed, (y) an amount equal to the Base Salary, payable in accordance with normal
payroll practices, and (z) an amount equal to the EBITDA Bonus paid for the previous fiscal
year,
payable pro rata over the following one year period in accordance with normal payroll
practices;
provided that if such termination occurs in calendar 2004 the amount payable under this clause
(z)
shall be limited to 30% of the EBITDA Bonus paid for 2003. For purposes of the preceding
sentence, Employee shall be deemed to have been terminated without Cause if he ceases to be
President and Chief Executive Officer of either the Company or an entity which has operative
control
of the Company; provided, however, that termination without Cause shall not be deemed to have
occurred if Employee’s new employment duties and title are consistent with those of Chief
Executive
Officer, President or Chief Operating Officer of either the Company or an entity which has
operative
control of the Company. If a Sale of the Company occurs and Employee either (i) is terminated
by
the purchaser substantially simultaneously with the Sale of the Company or (ii) voluntarily
terminates his employment because the purchaser offers employment on terms that are not
substantially the same or more favorable than the terms provided in this Agreement, Employee
shall
be entitled to receive (x) following termination 18 months health insurance benefits under the
Company’s health insurance plan, provided, however, that such benefits shall discontinue if
Employee is otherwise employed, (y) an amount equal to the Base Salary for one year, payable
in
accordance with normal payroll practices and (z) an amount equal to the EBITDA Bonus paid for
the
previous fiscal year, payable pro rata over the following one year period in accordance with
normal
payroll practices. If a Sale of the Company occurs and Employee is offered employment
substantially on the same or more favorable terms as this Agreement, no payments under this
Agreement shall be owing to Employee other than for accrued and unpaid Base Salary through the
date of the Sale of the Company. Employee hereby agrees that no severance compensation shall
be
payable in the event Employee’s employment is terminated under Section 1.4(a)(i), (ii), (iv)
or (v)
and Employee waives any claim for severance or other compensation. Any amount payable under
this Section 1.4(b) shall be payable in installments pro rata in accordance with the Company’s
normal
payroll practices over the period following the termination of the Employment Period in which
such
payments are to be made. The payment of any severance compensation under this Section 1.4(b)
is
conditioned upon Employee entering into the Company’s standard form release agreement, a copy
of
which is attached hereto.

               (c) Except as expressly set forth in this Section 1,4, all compensation and
other benefits shall cease to accrue upon termination of the Employment Period.

          1.5 Confidential Information. Employee acknowledges that the information,
observations and data obtained by him while employed by the Company and its Subsidiaries
concerning the business or affairs of the Company and its Subsidiaries that are not generally
available to the public other than as a result of a breach of this Agreement by Employee
(“Confidential Information”) are the property of the Company and its Subsidiaries. Employee agrees
that he shall not disclose to any unauthorized person or use for his own account any Confidential
Information without the prior written consent of the Company unless, and in such case only to the
extent that, such matters become generally known to and available for use by the public other man
as

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a result
of Employee’s acts or omissions to act. Notwithstanding the
foregoing, in the event
Employee becomes legally compelled to disclose Confidential Information pursuant to judicial or
administrative subpoena or process or other legal obligation, Employee may make such disclosure
only to the extent required, in the opinion of counsel for Employee, to comply with such subpoena,
process or other obligation. Employee shall, as promptly as possible and in any event prior to the
making of such disclosure, notify the Company of any such subpoena, process or obligation and
shall cooperate with the Company in seeking a protective order or other means of protecting the
confidentiality of the Confidential Information.

          1.6 Inventions and Patents. Employee agrees that all copyrights, works,
inventions, innovations, improvements, developments, methods, designs, analyses, drawings,
reports,
and all similar or related information which relate to the actual or anticipated business,
research and
development or existing or anticipated future products or services of the Company or its
Subsidiaries
and which are conceived, developed or made by Employee while employed by the Company (“Work
Product”) belong to the Company. Employee will promptly disclose such Work Product to the
Board
and perform all actions reasonably requested by the Company (whether during or after the
Employment Period) to establish and confirm such ownership at the Company’s expense
(including,
without limitation, assignments, consents, powers of attorney and other instruments).

          1.7 Non-Compete; Non-Solicitation.

               (a) Employee acknowledges that in the course of his employment with the
Company he will become familiar with the Company’s trade secrets and with other confidential
information concerning the Company and that his services have been and will be of special,
unique
and extraordinary value to the Company. Employee agrees that, in consideration of the payments
made to Employee under Sections 1.3 and 1.4, during the period of time in which Employee is
receiving compensation under either Section 1.3 or Section 1.4, and in the case of voluntary
termination by Employee or termination by the Company for Cause, the one year period
thereafter
(the “Noncompete Period”), he shall not directly or indirectly own, manage, control,
participate in,
consult with, render services for, or in any manner engage in any enterprise that competes
with any
business of the Company or its Subsidiaries conducted or proposed to be conducted on the date
of
termination of the Employment Period within 100 miles of the location of any then-existing
office of
the Company. Nothing herein shall prohibit Employee from being a passive owner of not more
than
5% of the stock of a publicly-held corporation whose stock is traded on a national securities
exchange or in the over-the-counter market.

               (b) During the Noncompete Period, Employee shall not directly or
indirectly induce or attempt to induce any officer, employee or consultant of the Company or
any
Subsidiary of the Company to leave the employ of the Company or such Subsidiary, or in any way
interfere with the relationship between the Company or any such Subsidiary and any employee
thereof.

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ARTICLE 2. DEFINITIONS

          As used in this Agreement, the following terms shall have the definitions set forth below:

          “Board” means the Board of Directors of the Company.

          “Cause” means (i) a material breach of this Agreement by Employee which, to the extent capable
of cure, is not remedied within 30 days of the written notice thereof, (ii) Employee’s willful and
repeated failure to comply with the lawful directives of the Board which, to the extent capable of
cure, is not remedied within 30 days of the written notice thereof, (iii) gross negligence or
willful misconduct by Employee in the performance of his duties hereunder, or (iv) the commission
by Employee of theft or embezzlement of Company property or any other act (including but not
limited to a felony or a crime involving moral turpitude) that is injurious in any significant
respect to the property, operations, business or reputation of the Company or its Subsidiaries, as
determined in good faith by the Board.

          “Disability” means Employee’s inability to substantially perform his normal duties hereunder
for six months or more during any twelve-month period determined in good faith by the Board.

          “Sale of the Company” means (i) the acquisition of a majority or more of the
outstanding voting securities of the Company by any person or “group” (as that term is used in
Regulation 13D under the Securities Exchange Act of 1934), (ii) the sale of substantially all of
the assets of the Company or (iii) the merger of the Company into another entity by which the
Company is not the surviving entity; provided, however, that any transaction with the
stockholders of the Company as of the Effective Date and their respective affiliates or
Subsidiaries shall not be deemed a “Sale of the Company”.

          “Subsidiary” of an entity shall mean any corporation, limited liability company, limited
partnership or other business organization of which the securities having a majority of the normal
voting power in electing the board of directors, board of managers, general partner or similar
governing body of such entity are, at the time of determination, owned by such entity directly or
indirectly through one or more Subsidiaries.

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ARTICLE 3. GENERAL PROVISIONS

          3.1 Enforcement. If, at the time of enforcement of Sections 1.5, 1.6 or 1.7, a court
holds that the restrictions Stated herein are unreasonable under the circumstances then
existing, the
parties hereto agree that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area. Because Employee’s
services
are unique and because Employee has access to Confidential Information and Work Product, the
parties hereto agree that money damages would be an inadequate remedy for any breach of this
Agreement. In the event of a breach or threatened breach of this Agreement, the Company, its
Subsidiaries and their respective successors or assigns may, in addition to other rights and
remedies
existing in their favor, apply to any court of competent jurisdiction for specific performance
and/or
injunctive or other relief in order to enforce, or prevent any violation of, the provisions
hereof
(without posting a bond or other security).

          3.2 Survival. Sections 1.6, 1.7 and 1.8 shall survive and continue in full force and
effect in accordance with their terms notwithstanding any termination of the Employment
Period.

          3.3 Notices. All notices or other communications to be given or delivered under
or by reason of the provisions of this Agreement will be in writing and will be deemed to have
been
given when delivered personally, one business day following when sent via a nationally
recognized
overnight courier, or when sent, when sent via facsimile confirmed in writing to the
recipient. Such
notices and Other communications will be sent to the addresses indicated below:

To the Company:

Global Employment Solutions, Inc.

c/o KRG Capital Partners

1515 Arapahoe Street

Tower One, Suite 1500

Denver, CO 80202

Attention: Charles R. Gwirtsman

Fax: (303) 390-5015

with a copy to:

Brownstein Hyatt & Farber, P.C.

410 —17th Street 22nd Floor

Denver, CO 80202

Attention: Steven S. Siegel

Fax: (303) 223-1111

To Employee:

at the address set forth on the Company’s records

6

 

or such other address of to the attention of such other person as the recipient party shall
have specified by prior written notice to the sending party.

          3.4 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of
this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect
any other
provision or any other jurisdiction but this Agreement will be reformed, construed and
enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had never been
contained
herein.

          3.5 Entire Agreement. This Agreement and those documents expressly referred to
herein embody the complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the parties,
written or
oral, which may have related to the subject matter hereof in any way.

          3.6 Amendments and Waivers. Any provision of this Agreement may be amended
or waived only with the prior written consent of the Company and Employee.

          3.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Colorado, without giving effect to any
choice
of law or conflict of law provision or rule (whether of the State of Colorado or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the
State of Colorado

          3.8 Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but
all such
counterparts shall together constitute one and the same instrument.

          3.9 Headings. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement
or of
any term or provision hereof.

          3.10 Original Agreement. This Agreement amends and restates in its entirety the
Original Agreement as of the Effective Date. On the Effective Date, the Original Agreement
shall
automatically terminate and be of no further force and effect.

* * * * *

7

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles R. Gwirtsman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Charles R. Gwirtsman	 	 
	 

	 	 	 	Title:    EVP	 	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/ Howard Brill
 	 
	 	Howard Brill       	 
	 	 	 
	 

8

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