Document:

Exhibit 10.13

    

      SECURITY
        AGREEMENT

      

      

      THIS
        SECURITY AGREEMENT (this “Agreement”)
        is
        made and entered into as of the 1st
        day of
        October, 2006, by and among
        ELS HUMAN RESOURCE SOLUTIONS, INC.,
        an Ohio
        corporation (“ELS
        HRS”),
        RESOLVE
        STAFFING, INC.,
        a
        Nevada corporation (“Resolve”),
        MANDALAY
        SERVICES, INC.,
        a
        Michigan corporation (“Mandalay”),
        DIVERSIFIED
        SUPPORT SYSTEMS, LLC,
        an Ohio
        limited liability company (“Diversified”),
        ELS
        EMPLOYER SERVICES, INC.,
        a
        Michigan corporation (“ELS
        ES”),
        and
        each subsidiary of ELS HRS set forth on the signature pages hereto (the
“ELS
        HRS Subsidiaries”;
        each
        of ELS HRS, Resolve, Mandalay, Diversified, ELS ES, and the ELS HRS Subsidiaries
        being referred to herein individually as a "Debtor,"
        and
        collectively, jointly and severally, as the “Debtors”),
        RONALD
        E. HEINEMAN (“Heineman”),
        THE BARBARA L. HEINEMAN YEAR 2002 REVOCABLE TRUST DATED
        August 16, 2002,
        Barbara
        L. Heineman, Trustee, or successor (the “Heineman
        Trust”),
        WILLIAM J. WALTON
        (“Walton”;
        each
        individually a "Secured
        Party,"
        and
        collectively, the “Secured
        Parties”),
        and
RONALD
        E. HEINEMAN,
        in his
        capacity as agent (in such capacity, the “Agent”)
        for
        himself and the Secured Parties.

      

      WITNESSETH:

      

      WHEREAS,
        Resolve
        and ELS HRS have made and entered into or will make and enter into certain
        Promissory Notes payable to one or more of the Secured Parties (each being
        referred to individually as a “Note,”
and
        collectively as the “Notes”),
        in
        connection with that certain Stock Purchase Agreement (the “Stock
        Purchase Agreement”)
        made
        by and among ELS HRS, the Heineman Trust, and Walton; that certain Agreement
        and
        Plan of Merger (the “Forward
        Merger Agreement”)
        made
        by and among ELS HRS, Resolve, and the Constituent Companies party thereto;
        that
        certain Agreement and Plan of Merger made by and among Resolve, Mandalay
        Merger
        Sub LLC, and Mandalay Services, Inc. (the “Mandalay
        Merger Agreement”);
        that
        certain Agreement and Plan of Merger made by and among Resolve, Diversified
        Merger Sub LLC, and Diversified Support Systems, LLC (the “Diversified
        Merger Agreement”);
        and
        that certain Agreement and Plan of Merger made by and among Resolve, ELS
        Employer Merger Sub LLC, and ELS Employer Services, Inc. (the “ELS
        Employer Merger Agreement”)
        (the
        Forward Merger Agreement, Mandalay Merger Agreement, Diversified Merger
        Agreement, and ELS Employer Merger Agreement being referred to collectively
        herein as the “Merger
        Agreements”);
        and

      

      WHEREAS,
        Resolve has absolutely and unconditionally guarantied the obligations of
        ELS HRS
        under the Notes, the Stock Purchase Agreement, the Merger Agreements, and
        related documents and instruments pursuant to that certain Guaranty given
        by
        Resolve in favor of Agent and Secured Parties, dated of even date herewith
        (the
“Guaranty”);
        and

      

      WHEREAS,
        it is a condition precedent to the effectiveness of the Stock Purchase Agreement
        and the Merger Agreements that Debtors deliver to the Agent, for the benefit
        of
        himself and Secured Parties, this Security Agreement and various other documents
        securing the obligations of the Debtors to Secured Parties; 

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      NOW
        THEREFORE, in consideration of the willingness of Secured Parties to enter
        into
        the Notes, the Stock Purchase Agreement, the Merger Agreements, the Guaranty,
        and related documents and instruments, and for other good and valuable
        consideration, the receipt and sufficiency of which are hereby acknowledged,
        it
        is hereby agreed as follows:

       

      1. Grant
        of Security Interest.
        To
        secure Debtors’ prompt, punctual, and faithful payment and performance of all
        and each of their debts, liabilities, and obligations owed to Agent and Secured
        Parties, whether direct or indirect, absolute or contingent, due or to become
        due, now in existence or hereafter created or arising, including any extensions
        or renewals thereof, and whether incurred alone or with others as maker,
        endorser, guarantor or surety, plus interest thereon and all costs of
        collection, legal expenses and attorneys’ fees paid or incurred by Agent or
        Secured Parties in administering, collecting, or enforcing any such
        indebtedness, liabilities or obligations, or realizing on the security given
        hereby or otherwise (all such indebtedness, liabilities, obligations, interest,
        costs, fees, and expenses being hereinafter referred to as the “Secured
        Obligations”),
        each
        of the Debtors hereby pledges and grants to Agent, for the benefit of himself
        and Secured Parties, a security interest in and liens against, all
        of
        each Debtor’s assets, whether currently owned or hereafter acquired, including
        without limitation the following described collateral (collectively, the
        "Collateral"):

      

      (a) each
        and
        every "account"
        (as
        such term is defined in the Uniform Commercial Code as adopted in any applicable
        jurisdiction (as adopted in any such jurisdiction and as amended from time
        to
        time, the "UCC")
        of
        Debtors or in which any Debtor now or hereafter has any rights, including,
        but
        not limited to, all rights of Debtors to payment for "inventory" (as hereinafter
        defined) and other goods sold or leased or for services rendered, all accounts
        receivable and receivables of Debtors, and all payments, royalties, rents,
        revenues, fees, and other sums (from whatever source, including, without
        limitation, from insurers, from third parties, and from any government or
        subdivision, department, or agency thereof) whatsoever owed to Debtors, in
        each
        case regardless of whether now owned or existing or hereafter acquired,
        accruing, or arising; and

      

      (b) all
        of
        the “books”
of
        Debtors, including all of the now owned or hereafter acquired books and records
        of Debtors (including all of Debtors’ records indicating, summarizing, or
        evidencing its assets (including the Collateral) or liabilities, all of its
        records relating to its business operations or financial condition, and all
        of
        its goods or General Intangibles related to such information); and

      

      (c) all
        “investment
        property”
(as
        such term is defined in the UCC) of Debtors or in which any Debtor now or
        hereafter has any rights, including, but not limited to, any and all supporting
        obligations in respect thereof; and

      

      (d) each
        and
        every “general
        intangible”
(as
        such term is defined in the UCC) of Debtors or in which any Debtor now or
        hereafter has any right, title or interest, including payment intangibles,
        contract rights, rights to payment, rights arising under common law, statutes
        or
        regulations, choses or things in action, goodwill associated with the Debtors’
businesses,

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      patents,
        trade names, trademarks, service marks, copyrights, domain names, blueprints,
        drawings, purchase orders, customer lists, monies due or recoverable from
        pension funds, route lists, rights to payment and other rights under any
        royalty
        or licensing agreements, infringement claims, computer programs, information
        contained on computer disks or tapes, software, literature, reports, catalogs,
        money, deposit accounts, insurance premium rebates, tax refunds, and tax
        refund
        claims, and any and all supporting obligations in respect thereof;
        and

      

      (e) each
        and
        every "document,"
        "instrument,"
        and
        "chattel
        paper"
        (as
        such terms are defined in the UCC) of Debtors or in which any Debtor now
        or
        hereafter has any rights, including, but not limited to, all of Debtors'
        contract rights and rights to refunds of federal, state and local income
        taxes,
        in each case regardless of whether now owned or existing or hereafter acquired,
        accruing, or arising; and

      

      (f) each
        and
        every item of "equipment"
        and
        "fixture"
        (as
        such terms are defined in the UCC) of Debtors or in which any Debtor now
        or
        hereafter has any rights, including, but not limited to, all of Debtors'
        machinery, parts, accessories, attachments, trade fixtures, tools, furniture,
        furnishings and other goods, in each case regardless of whether now owned
        or
        existing or hereafter acquired; and

      

      (g) all
        "inventory"
        (as
        such term is defined in the UCC) and all other property and assets of Debtors
        or
        in which any Debtor now or hereafter has any rights, and all goods, merchandise
        and other personal property of Debtors held for sale or rental or use and
        all
        raw materials and supplies used or useful in the conduct of Debtors' business,
        in each case regardless of whether now owned or existing or hereafter acquired;
        and

      

      (h) all
        “negotiable
        collateral”
of
        Debtors, including all of the now owned and hereafter acquired right, title,
        and
        interest of any Debtor with respect to letters of credit, letter of credit
        rights, instruments, promissory notes, drafts, documents, and chattel paper
        (including electronic chattel paper and tangible chattel paper), and any
        and all
        supporting obligations in respect thereof; and

      

      (i) all
        insurance policies of Debtors and the proceeds thereunder or therefrom, in
        each
        case regardless of whether now owned or existing or hereafter acquired or
        coming
        into existence, and refunds of all premiums therefor; and

      

      (j) all
        of
        Debtors’ bank accounts, including, but not limited to, all demand, time,
        savings, passbook and similar accounts maintained with any bank, savings
        and
        loan association or similar institution, in each case whether now in existence
        or hereafter created or arising; and

      

      (k) the
        proceeds and products, whether tangible or intangible, of any and all of
        the
        foregoing, including proceeds of insurance covering any or all of the foregoing,
        and any and all “accounts,” “books,” “equipment,” “general intangibles,”
“inventory,” “investment property,” “negotiable collateral,” money, deposit
        accounts, or other tangible or intangible property

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      resulting
        from the sale, exchange, collection, or other disposition of any of the
        foregoing, or any portion thereof or interest therein, and the proceeds
        thereof.

      

      2. Obligations
        Secured.
        This
        Agreement is made, and the pledge of and security interest in the Collateral
        is
        granted, as security for the Secured Obligations, including but not limited
        to,
        the following: any and all of Debtors’ debts, liabilities, and obligations under
        the Notes, the Guaranty, that certain Stock Pledge Agreement made by and
        among
        ELS HRS, Resolve, Secured Parties, and the Pledged Stock Issuers party thereto,
        dated of even date herewith (the “Pledge
        Agreement”),
        the
        Stock Purchase Agreement, and the Merger Agreements, as the same may be amended,
        restated, supplemented, and/or renewed from time to time, whether now in
        existence or hereafter created or arising, and any and all debts, liabilities,
        and obligations of any Debtor under
        any
        other document or instrument running to the benefit of a Secured Party from
        either of the Debtors, whether now in existence or hereafter created or
        arising.
        This
        Agreement, the Guaranty, the Pledge Agreement, and any and all other documents
        or instruments providing security for the Secured Obligations, as the same
        may
        be modified, amended, restated, or supplemented from time to time, shall
        be
        referred to herein as the “Security
        Documents.”

      

      3. Representations
        and Warranties.
        Each of
        the Debtors jointly and severally represents and warrants to Agent and Secured
        Parties that:

      

      (a) One
        or
        more of Debtors is the owner of the Collateral, free and clear of all liens,
        security interests and other encumbrances of any kind whatsoever, and, except
        in
        connection with the above described security interests, no security agreement,
        assignment, financing statement, or similar document or instrument covering
        the
        Collateral is on file or of record in any federal, state, or local governmental
        office or records.

      

      (b) Each
        of
        the Debtors has full power and authority to enter into this Agreement and
        grant
        to Agent and Secured Parties the pledge, lien, and security interest in,
        the
        Collateral in accordance herewith.

      

      (c) The
        principal place of business of Debtors and their respective chief executive
        offices and accounting offices are located in Hamilton County,
        Ohio.

      

      (d) Debtors
        have been duly and validly incorporated in the jurisdictions set forth in
        the
        preamble to this Agreement, and are qualified to do business in the following
        jurisdictions: [________________________].

      

      (e) The
        Federal Employer Identification Number (“EIN”)
        for
        each Debtor is as set forth on Exhibit
        A
        attached
        hereto and incorporated herein by reference.

      

      (f) The
        pledge of, and grant of the lien against and security interest in, the
        Collateral by Debtors in the manner and for the purposes contemplated by
        this
        Agreement have been duly and validly authorized; this Agreement has been
        duly
        executed and delivered and constitutes the legally binding and enforceable
        obligation of Debtors; and no registration with or

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      approval
        of any governmental agency of any kind is required for the due execution
        and
        delivery, or the enforceability, of this Agreement.

      

      (g) Debtors
        hereby irrevocably authorize Agent to file Uniform Commercial Code Financing
        Statements containing sufficient legal descriptions of the Collateral and
        otherwise in form and substance sufficient for filing in every governmental,
        municipal, or other office in every jurisdiction necessary to perfect Agent’s
        and Secured Parties’ lien against and security interest in the
        Collateral.

      

      (h) Debtors
        own or have the exclusive right to use all intellectual property used in
        the
        Debtors’ business, including, but not limited to, all copyrights, patents,
        trademarks, service marks, domain names, and software (the “Intellectual
        Property”).
        None
        of the Intellectual Property infringes upon or otherwise violates the
        intellectual property or other proprietary rights of any third party, and
        none
        of the Debtors has received any notice of any claim of infringement or any
        other
        claim or proceeding relating to the Intellectual Property. 

      

      4. Covenants.
        Each of
        the Debtors covenants and agrees with Agent and Secured Parties that
        it:

      

      (a) shall
        defend in good faith the Collateral against the claims and demands of all
        persons;

      

      (b) shall
        advise Agent in writing, at least 30 days prior thereto, of any change in
        any
        Debtor's name, any change in any Debtor’s state of organization or any merger,
        consolidation, conversion, reorganization or recapitalization involving any
        Debtor, and, in such event, Debtor shall promptly authorize the filing of
        (and
        Debtors hereby authorize the filing of) new or amended UCC financing statements
        describing the Collateral specified herein and otherwise in form and substance
        sufficient for recordation wherever necessary or appropriate, as determined
        in
        Agent’s sole discretion, to perfect or continue perfected Agent’s and Secured
        Parties’ pledge and security interest in the Collateral based upon such changes,
        and Debtors shall pay all filing and recording fees and taxes in connection
        with
        the filing or recordation of such financing statements and shall immediately
        reimburse Agent therefor if it pays the same;

      

      (c) shall
        advise Agent in writing, at least 30 days prior thereto, of any change in
        the
        location of the Collateral or the principal place of business of any
        Debtor;

       

      (d) shall
        not
        permit any liens, security interests or other encumbrances of any kind
        whatsoever to attach to any of the Collateral;

      

      (e) shall
        pay
        and perform the Secured Obligations strictly in accordance with their terms
        and
        shall pay promptly when due all taxes, assessments, and governmental charges
        upon or affecting the Collateral;

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (f) shall
        take any and all necessary and appropriate steps to renew, preserve, and
        otherwise maintain any Debtor’s rights in any and all Intellectual Property,
        including, but not limited to, currently existing and hereafter acquired
        registrations of domain names; 

      

      (g) shall
        provide Agent and/or its agents and representatives access to any Debtor’s books
        and records, accountants’ reports, financial information, and any and all other
        information and materials related to Debtors’ business; permit Agent and/or its
        agents or representatives to visit the offices of Debtors and examine the
        Collateral; and permit Agent and/or its agents or representatives to discuss
        the
        Debtors’ business with Debtors’ accountants; 

      

      (i) shall
        immediately notify Agent in writing of any information which any Debtor has
        or
        may receive with respect to the Collateral which might in any manner materially
        and adversely affect the value thereof or the rights of Agent or Secured
        Parties
        with respect thereto; and

      

      (j) shall
        maintain adequate casualty and loss insurance coverage on the Collateral
        in an
        amount no less than the insurable value thereof, and Agent and Secured Parties
        shall be named as additional insureds or loss payees, as the case may be,
        with
        respect to such policies of insurance.

      

      5. Power
        of Attorney.
        In the
        event that Debtors fail to take any and all necessary action to renew, preserve,
        and/or otherwise maintain the Collateral, included, but not limited to, any
        domain names included in the Intellectual Property, Debtors hereby irrevocably
        appoint Agent as their attorney-in-fact (a) to execute and deliver any such
        documents and take such actions as may be necessary to renew, maintain or
        otherwise preserve Debtors’ rights in and to the Collateral, and (b) to take
        such other actions as may be necessary or incidental to the foregoing. The
        costs
        of taking any such actions shall be added to and included in the Secured
        Obligations. The foregoing power of attorney shall
        be
        deemed to be a power coupled with an interest, and is irrevocable.

      

      6. Events
        of Default.
        An
        "Event
        of Default"
        shall
        occur hereunder if: (a) any Secured Party shall have failed to receive, when
        due, any portion of the indebtedness, liabilities, or obligations owing to
        him
        by any Debtor; (b) any Debtor shall commit any breach of its covenants and/or
        obligations, or any default or Event of Default, under this Agreement, any
        of
        the Notes, the other Security Documents, the Stock Purchase Agreement, or
        any
        Merger Agreement, that certain Revolving Note made by and among Employee
        Leasing
        Services, Inc., Rockmor Group, Inc. and Fifth Third Bank, dated effective
        as of
        December 30, 2005, and any document providing security for or guaranteeing
        the
        obligations of the borrowers thereunder, or that certain Revolving Note made
        by
        and between Resolve and Fifth Third Bank, dated effective as of May 30, 2006,
        and any document providing security for or guaranteeing the obligations of
        the
        borrowers thereunder, in each case as amended or supplemented, or under any
        agreement, document, or instrument between any Debtor and any Secured Party
        or
        running to benefit of any Secured Party from any Debtor; (c) any representation
        or warranty made by any Debtor herein or in any of the agreements, documents,
        or
        instruments referenced in (b) above is, or becomes, untrue or misleading
        in any
        material respect; (d) any Debtor shall: (i) become insolvent, (ii) become
        generally unable to pay its respective debts as they become due, (iii) make
        an
        assignment

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      for
        the
        benefit of creditors, or (iv) call a meeting of creditors for the composition
        of
        debts; (e) there shall be filed by or against any Debtor a petition in
        bankruptcy or for reorganization or a custodian, receiver or agent is appointed
        or authorized to take charge of any of its properties; (f) there shall occur
        any
        material and adverse change in the business operations and condition, financial
        or otherwise, of any Debtor; (g) there shall occur a material casualty loss
        with
        respect to the Collateral or other security for any of the Secured Obligations
        which is not covered by insurance; (h) the Collateral or other security for
        any
        of the Secured Obligations shall decline in value with the result that Secured
        Parties’ security for the Secured Obligations is materially diminished; or (i)
        any default or event of default shall occur under any other agreement, document,
        or instrument between any Debtor and any Secured Party or running to the
        benefit
        of any Secured Party from any Debtor.

      

      8. Remedies
        Upon Event of Default.
        Upon
        the occurrence of an Event of Default, Agent and Secured Parties shall have
        all
        rights and remedies in and against the Collateral and otherwise of a secured
        party under the UCC and all other applicable laws and shall also have all
        other
        rights provided herein and in any of the other documents, all of which rights
        and remedies shall be cumulative to the fullest extent permitted by law.
        In
        addition to, and without limiting the generality of the foregoing, upon the
        occurrence of an Event of Default, Secured Parties (at their election but
        without notice of their election and without demand) may authorize and instruct
        Agent to do any of the following on behalf of Secured Parties (and Agent,
        acting
        on the instruction of Secured Parties, shall do the same on behalf of Secured
        Parties), with or without the judicial process or the aid or assistance of
        others and to the extent permitted by law:

      

      (a) Require
        Debtors, at Debtors’ sole expense, to assemble the Collateral, make the
        Collateral available to Agent at a place reasonably convenient to Agent,
        and
        deliver possession of the Collateral to Agent at a place reasonably convenient
        to Agent.

      

      (b) Sell
        the
        Collateral at public or private sale, from time to time, as determined in
        its
        sole discretion. Debtors shall pay, as part of the indebtedness and obligations
        hereby secured, all amounts (including, but not limited to, Agent and each
        Secured Party’s reasonable attorneys', accountants' and appraisers' fees as
        permitted by applicable law, with interest thereon at the highest rate specified
        in any of the documents) paid or incurred by Agent or any Secured Party for
        taxes or levies on the Collateral, or any part thereof, and in taking possession
        of, disposing of, repairing, improving, or preserving the
        Collateral.

      

      (c) Enter
        any
        premises where any part of the Collateral may be located, to assemble and
        prepare the Collateral for sale and to conduct an auction sale on the premises
        or to remove the same from the premises without being deemed guilty of trespass.
        All expenses incurred by Agent or any Secured Party in exercising its rights
        under this Section
        8
        shall be
        chargeable to and borne by Debtors, and shall be added to and included in
        the
        Secured Obligations.

      

      Notwithstanding
        any of the foregoing,

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (x) Neither
        Agent nor Secured Parties shall be obligated to make any sale of Collateral
        if
        they shall determine not to do so, regardless of the fact that notice of
        sale of
        Collateral may have been given. Agent and Secured Parties may, without notice
        or
        publication, adjourn any public or private sale or cause the same to be
        adjourned from time to time by announcement at the time and place fixed for
        sale, and such sale may, without further notice, be made at the time and
        place
        to which the same was so adjourned.

      

      (y) The
        requirement of reasonable notice of time and place of sale or disposition
        of
        Collateral by Agent and Secured Parties shall be conclusively met if such
        notice
        is provided to Debtors at the address specified in the notices section of
        this
        Agreement at least ten (10) days before the time of the sale or
        disposition.

      

      (z) Any
        Secured Party may bid upon and purchase any or all of the Collateral at any
        sale
        thereof free from all rights of redemption of Debtors.

      

      (aa) Agent
        and
        Secured Parties may sell all or any part of the Collateral at one or more
        times
        and from time to time and upon such terms and conditions, including a credit
        sale, as it determines in its sole discretion. Agent and Secured Parties
        shall
        apply the net proceeds of any such disposition of the Collateral or any part
        thereof in accordance with Section
        9(k)
        of this
        Agreement.

      

      (bb) Debtors
        shall remain absolutely and jointly and severally liable for any deficiency
        in
        the Secured Obligations that remains due. To the extent permitted by law,
        Debtors waive all rights of redemption in or with respect to the
        Collateral.

      

      (cc) Agent
        shall have the right to notify any account debtors obligated on any Debtor’s
        accounts to make payment thereof directly to Agent or Secured Parties, and
        Agent
        shall have the right in its own name or in the name of any Secured Party
        or
        Debtor to demand, collect, receive, receipt for and sue for any or all amounts
        due or to become due on the accounts, and Agent, in its sole discretion,
        may
        take any other action which Agent may deem necessary or appropriate to protect,
        preserve, and realize upon its security interest in the accounts.

      

      9. Agent.

      

      (a) Appointment
        of Agent.

       

      Each
        Secured Party hereby designates Ronald E. Heineman as Agent to act as herein
        specified. Each Secured Party hereby irrevocably authorizes the Agent to
        take
        such action on his behalf under the provisions of this Agreement, the Notes,
        and
        the other Security Documents, and to exercise such powers and to perform
        such
        duties hereunder and thereunder as are specifically delegated to or required
        of
        the Agent by the terms hereof and thereof and such other powers as are
        reasonably incidental thereto. The Agent shall hold all Collateral and all
        payments of principal, interest, fees, charges and expenses received pursuant
        to
        this Agreement, the Notes, and the other Security Documents for the ratable
        benefit of Secured Parties.

       

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
        provisions of this Section
        9
        are
        solely for the benefit of the Agent and Secured Parties, and no Debtor shall
        have any rights as a third party beneficiary of any of the provisions hereof.
        In
        performing his functions and duties under this Agreement, the Agent shall
        act
        solely as agent of Secured Parties and does not assume and shall not be deemed
        to have assumed any obligation toward or relationship of agency or trust
        with or
        for any Debtor.

       

      

      (b) Nature
        of
        Duties of Agent.

      

       

      The
        Agent
        shall have no duties or responsibilities except those expressly set forth
        in
        this Agreement. The Agent shall not be liable for any action taken or omitted
        by
        him as such hereunder or in connection herewith, unless caused by its gross
        negligence or willful misconduct. The duties of the Agent shall be mechanical
        and administrative in nature; the Agent shall not have by reason of this
        Agreement a fiduciary relationship in respect of any Secured Party; and nothing
        in this Agreement, expressed or implied, is intended to or shall be so construed
        as to impose upon the Agent any obligations in respect of this Agreement
        except
        as expressly set forth herein.

      

      (c) Lack
        of
        Reliance on Agent.

       

      Independently
        and without reliance upon the Agent, each Secured Party, to the extent it
        deems
        appropriate, has made and shall continue to make (i) its own independent
        investigation of the financial or other condition and affairs of each Debtor
        in
        connection with the taking or not taking of any action in connection herewith
        and (ii) its own appraisal of the creditworthiness of each Debtor.

       

       

      The
        Agent
        shall not be responsible to any Secured Party for any recitals, statements,
        information, representations or warranties herein or in any document,
        certificate or other writing delivered in connection herewith or for the
        execution, effectiveness, genuineness, validity, enforceability, collectability,
        priority or sufficiency of this Agreement, the Notes, the Security Documents,
        or
        the financial or other condition of any Debtor. The Agent shall not be required
        to make any inquiry concerning either the performance or observance of any
        of
        the terms, provisions or conditions of this Agreement, the Notes, the Security
        Documents, or the financial condition of any Debtor, or the existence or
        possible existence of any default or Event of Default, unless specifically
        requested to do so in writing by a Secured Party.

       

      

      (d) Certain
        Rights of the Agent.

      

       

      The
        Agent
        shall have the right to request instructions from Secured Parties. If the
        Agent
        shall request instructions from Secured Parties with respect to any act or
        action (including the failure to act) in connection with this Agreement,
        the
        Agent shall be entitled to refrain from such act or taking such action unless
        and until the Agent shall have received instructions from Secured Parties
        and
        the Agent shall not incur liability to any person by reason of so refraining.
        Without limiting the foregoing, no Secured Party shall have any right of
        action

       

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      whatsoever
        against the Agent as a result of the Agent acting or refraining from acting
        hereunder in accordance with the instructions of Secured Parties.

       

      (e) Reliance
        by Agent.

      

       

      The
        Agent
        shall be entitled to rely, and shall be fully protected in relying, upon
        any
        note, writing, resolution, notice, statement, certificate, order or other
        documentary, teletransmission or telephone message believed by it to be genuine
        and correct and to have been signed, sent or made by the proper person. The
        Agent may consult with legal counsel (including counsel for one or more of
        the
        Debtors with respect to matters concerning one or more of the Debtors),
        independent public accountants and other experts selected by him and shall
        not
        be liable for any action taken or omitted to be taken by him in good faith
        in
        accordance with the advice of such counsel, accountants or experts.

       

      (f) Indemnification
        of Agent.

      

       

      To
        the
        extent the Agent is not reimbursed and indemnified by one or more of the
        Debtors, each Secured Party will reimburse and indemnify the Agent in proportion
        to the principal outstanding on its respective Notes for and against any
        and all
        liabilities, obligations, losses, damages, penalties, actions, judgments,
        suits,
        costs, expenses (including counsel fees and disbursements) or disbursements
        of
        any kind or nature whatsoever which may be imposed on, incurred by or asserted
        against the Agent in performing its duties hereunder, or in any way relating
        to
        or arising out of this Agreement; provided however,
        that no
        Secured Party shall be liable for any portion of such liabilities, obligations,
        losses, damages, penalties, actions, judgments, suits, costs, expenses or
        disbursements resulting from the Agent’s gross negligence or willful
        misconduct.

       

      (g) The
        Agent
        in his Individual Capacity.

      

       

      With
        respect to his rights and obligations as a Secured Party hereunder and under
        the
        Notes and the other Security Documents, the Agent shall have the same rights
        and
        powers hereunder as any other Secured Party and may exercise the same as
        though
        he were not performing the duties specified herein; and the term “Secured
        Parties” or any similar terms shall, unless the context clearly otherwise
        indicates, include the Agent in its individual capacity. 

       

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (h) Successor
        Agent.

       

       

      The
        Agent
        may, upon five (5) business days’ notice to Secured Parties, resign at any time
        (effective upon the appointment of a successor Agent pursuant to the provisions
        of this Section
        9(h))
        by
        giving written notice thereof to Secured Parties. Upon any such resignation,
        Secured Parties shall have the right, upon five (5) days’ notice, to appoint a
        successor Agent. If no successor Agent shall have been so appointed by Secured
        Parties, and shall have accepted such appointment, within thirty (30) days
        after
        the retiring Agent’s giving of notice of resignation, then, upon five (5) days’
notice, the retiring Agent may, on behalf of Secured Parties, appoint a
        successor Agent. 

       

       

      Upon
        the
        acceptance of any appointment as Agent hereunder by a successor Agent, such
        successor Agent shall thereupon succeed to and become vested with all the
        rights, powers, privileges and duties of the retiring Agent, and the retiring
        Agent shall be discharged from its duties and obligations under this Agreement.
        After any retiring Agent’s resignation hereunder as Agent, the provisions of
        this Section
        9
        shall
        inure to its benefit as to any actions taken or omitted to be taken by it
        while
        it was Agent under this Agreement.

       

      (i) Collateral
        Matters.

       

      Each
        Secured Party authorizes and directs the Agent to enter into the Guaranty
        and
        the Pledge Agreement, and any other Security Documents. The Agent is hereby
        authorized on behalf of each Secured Party, without the necessity of any
        notice
        to or further consent from any Secured Party, from time to time prior to
        an
        Event of Default, to take any action with respect to any Collateral, the
        Notes,
        or the other Security Documents that may be necessary or appropriate to perfect
        and maintain perfected the security interest in and liens upon the Collateral
        granted pursuant to any of the foregoing documents.

       

       

      Secured
        Parties hereby authorize the Agent, at his option and in his discretion,
        to
        release any lien granted to or held by the Agent upon any Collateral upon
        termination of the Secured Obligations and payment in cash and satisfaction
        of
        all of the obligations at any time arising under or in respect of this
        Agreement, the Notes, the other Security Documents, or the transactions
        contemplated hereby or thereby. Upon request by the Agent at any time, Secured
        Parties will confirm in writing the Agent’s authority to release particular
        types or items of Collateral pursuant to this Section
        9(i).

       

       

      Upon
        any
        sale and transfer of Collateral which is expressly permitted pursuant to
        the
        terms of this Agreement, or consented to in writing by Secured Parties, as
        applicable, and upon at least five (5) business days’ prior written request by
        any Debtor, the Agent shall (and is hereby irrevocably authorized by Secured
        Parties to) execute such documents as may be necessary to evidence the release
        of the liens granted to the Agent for the benefit of Secured Parties herein
        or
        pursuant hereto upon the Collateral that was sold or transferred; provided,
        that
        (i) the Agent shall not be required to execute any such document on terms
        which,
        in the Agent’s opinion, would expose the Agent to liability or create any
        obligation or entail any consequence other than the release of such liens
        without recourse or warranty and (ii) such

       

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      release
        shall not in any manner discharge, affect or impair the Secured Obligations
        or
        any liens upon all interests retained by any Debtor, including (without
        limitation) the proceeds of the sale, all of which shall continue to constitute
        part of the Collateral. In the event of any sale or transfer of Collateral,
        or
        any foreclosure with respect to any of the Collateral, the Agent shall be
        authorized to deduct all of the expenses reasonably incurred by the Agent
        from
        the proceeds of any such sale, transfer or foreclosure.

       

       

      The
        Agent
        shall have no obligation whatsoever to Secured Parties or to any other person
        to
        assure that the Collateral exists or is owned by any Debtor or is cared for,
        protected or insured or that the liens granted to the Agent herein or pursuant
        hereto have been properly or sufficiently or lawfully created, perfected,
        protected or enforced or are entitled to any particular priority, or to exercise
        or to continue exercising at all or in any manner or under any duty of care,
        disclosure or fidelity any of the rights, authorities and powers granted
        or
        available to the Agent in this Section
        9(i)
        or in
        any of the Security Documents, it being understood and agreed that in respect
        of
        the Collateral, or any act, omission or event related thereto, the Agent
        may act
        in any manner he may deem appropriate, in his sole discretion, given the
        Agent’s
        own interest in the Collateral as one of Secured Parties and that the Agent
        shall have no duty or liability whatsoever to Secured Parties, except for
        his
        gross negligence or willful misconduct.

       

      (j) Actions
        with Respect to Defaults.

      

       

      In
        addition to the Agent’s right to take actions on his own accord as permitted
        under this Agreement, the Agent shall take such action with respect to a
        default
        or Event of Default as shall be directed by Secured Parties; provided
        that,
        until the Agent shall have received such directions, the Agent may (but shall
        not be obligated to) take such action, or refrain from taking such action,
        with
        respect to such default or Event of Default as he shall deem advisable and
        in
        the best interests of Secured Parties.

       

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (k) Application
        of Proceeds upon an Event of Default.

       

      All
        proceeds of Collateral received by the Agent pursuant to the exercise of
        remedies under this Agreement, the Notes, or the other Security Documents
        or
        otherwise realized upon the occurrence and during the continuation of an
        Event
        of Default shall, when received by the Agent in cash or its equivalent, be
        applied as follows: first,
        to all
        reasonable costs and expenses of the Agent (including, without limitation,
        reasonable attorneys’ fees and expenses) incurred in connection with the
        implementation and/or enforcement of this Agreement, the Notes, or the other
        Security Documents; second,
        to all
        costs and expenses of Secured Parties incurred in connection with the
        implementation and/or enforcement of this Agreement, the Notes, or the other
        Security Documents; third,
        to be
        applied ratably to pay interest then due in respect of the Notes until paid
        in
        full; fourth,
        to be
        applied ratably to the respective remaining principal installments of the
        Notes
        in inverse order of maturity; and fifth,
        to the
        payment of the surplus, if any, to whomever may be lawfully entitled to receive
        such surplus. The Debtors shall remain liable to the Agent and Secured Parties
        for any deficiency. 

       

      

      Notwithstanding
        anything to the contrary in this Agreement, the Notes, or the other Security
        Documents, all proceeds of Collateral received by the Agent pursuant to the
        exercise of remedies under the such documents shall be applied in accordance
        with this Section
        9(k).

       

      

      10. Miscellaneous.

      

      (a) Notices.
        Any
        notice required, permitted, or contemplated hereunder shall be in writing
        and
        addressed to the party to be notified at the address set forth below or at
        such
        other address as each party may designate for itself from time to time by
        notice
        hereunder, and shall be deemed validly given (i) three (3) days following
        deposit in the U.S. mails, with proper postage prepaid, or (ii) the next
        business day after such notice was delivered to a regularly scheduled overnight
        delivery carrier with delivery fees either prepaid or an arrangement,
        satisfactory with such carrier, made for the payment thereof, or (iii) upon
        receipt of notice given by telecopy, mailgram, telegram, telex or personal
        delivery:

      

      To
        Debtors:   c/o
        Resolve Staffing, Inc.

      3235
        Omni
        Drive

      Cincinnati,
        Ohio 45245

      

      with
        a
        copy to:  Greg
        Bartko, Esq.

      3475
        Lenox Road, Suite 400

      Atlanta,
        Georgia 30326

      

      To
        Agent:   Ronald
        E.
        Heineman

      3235
        Omni
        Drive

      Cincinnati,
        Ohio 45202-3957

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      with
        a
        copy to:  Tracey
        A.
        Puthoff, Esq.

      Taft,
        Stettinius & Hollister LLP

      425
        Walnut Street, Suite 1800

      Cincinnati,
        Ohio 45202-3957

      

      (b) Further
        Assurances.
        From
        time to time Debtors shall take such action and execute and deliver to Secured
        Parties such additional documents and instruments as Secured Parties may
        reasonably request to effectuate the purposes of this Agreement and to assure
        Secured Parties the benefits of the collateral security provided
        herein.

      

      (c) Successors
        and Assigns.
        This
        Agreement shall be binding upon

      the
        parties hereto and upon their respective successors and assigns, and shall
        inure
        to the benefit of the heirs, successors, and assigns of Secured
        Parties.

      

      (d) Amendment.
        This
        Agreement cannot be changed or amended except by an agreement in writing
        signed
        by the party against whom enforcement of the change or amendment is
        sought.

      

      (e) Number
        and Gender.
        For
        purposes of this Agreement, the singular shall be deemed to include the plural
        and the plural shall be deemed to include the singular, and the neuter shall
        be
        deemed to include the masculine and feminine and the masculine and feminine
        shall be deemed to include the neuter, as the context may require.

      

      (f) Captions.
        The
        captions preceding the text of the paragraphs of this Agreement are inserted
        only for convenience of reference and shall not constitute a part of this
        Agreement, nor shall they in any way affect its meaning, construction or
        effect.

      

      (g) Governing
        Law.
        The
        provisions of this Agreement shall be

      construed
        in accordance with the laws of the State of Ohio, except to the extent that
        the

      laws
        of
        other jurisdictions may apply to the creation, perfection, or priority of
        the
        pledge,

      lien,
        and
        security interests granted herein.

      

      (h) Severability.
        The
        invalidity or unenforceability, whether in general or in any particular
        circumstance, of any provision of this Agreement shall not affect its validity
        or enforceability in any other circumstance or any other provision hereof.
        The
        parties hereto agree that this Agreement shall be interpreted so as to give
        effect and validity to all of the provisions hereof to the fullest extent
        permitted by law.

      

      

      [signature
        page to follow]

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        day,
        month, and year first written above.

       

       

      DEBTORS:

      

      ELS
        HUMAN
        RESOURCE SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

       

      

      RESOLVE
        STAFFING, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        Director and Authorized Representative

       

       

      MANDALAY
        SERVICES, INC.

      

      By:/s/
        Scott Horne      

      Name:
        Scott Horne

      Title:
        President

      

      

      DIVERSIFIED
        SUPPORT SYSTEMS, LLC

      

      By:/s/
        Ronald Heineman      

      Name:
        Ronald E. Heineman

      Title:
        President

      

      

      ELS
        EMPLOYER SERVICES, INC.

      

      By:/s/
        Steve Roux      

      Name:
        Steve Roux

      Title:
        President

      

      

      

      

      

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EMPLOYEE
        LEASING SERVICES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        OUTSOURCE SERVICES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      PREMIER
        HR SERVICES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      FOXSTAR,
        INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        PERSONNEL SERVICES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      RIO
        SERVICES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      

      

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IMPERIAL
        HUMAN RESOURCES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        HR,
        INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      LUXOR
        SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      STREAMLINE
        MANAGEMENT, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS,
        INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        PAYROLL SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      

      

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ELS
        HUMAN
        RESOURCES, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      INTEGRATED
        PAYROLL SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        TEMPORARY SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      RESOLVE
        HR SOLUTIONS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      FIDELITY
        CAPITAL, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      ELS
        PAYROLL MANAGERS, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      

      

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ELS
        ADVANTAGE, INC.

      

      By:/s/
        Donald Quarterman      

      Name:
        Donald Quarterman

      Title:
        President

      

      

      SECURED
        PARTIES:

       

      /s/
        Ronald Heineman

                                      Ronald
        E.
        Heineman

      

       

      /s/
        William Walton

                                      William
        J.
        Walton

      

      

      THE
        BARBARA L. HEINEMAN YEAR 2002 REVOCABLE TRUST DATED August 16, 2002

       

      /s/Barbara
        Heineman

                                      Barbara
        L. Heineman,
        Trustee

      

      

      

      AGENT:

       

      /s/
        Ronald Heieneman

                                      Ronald
        E.
        Heineman

      

      
        
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      Debtor
        Employee Identification Numbers

      

      
        	
                Company
                  Name

              	
                EIN

              
	
                Resolve
                  Staffing, Inc.

              	
                33-0850639

              
	
                ELS
                  Human Resource Solutions, Inc.

              	 
	
                Mandalay
                  Services, Inc.

              	
                38-3573643

              
	
                Diversified
                  Support Systems, LLC

              	
                51-0462658

              
	
                ELS
                  Employer Services, Inc.

              	
                43-1988398

              
	
                Employee
                  Leasing Services, Inc.

              	
                31-1388918

              
	
                ELS
                  Outsource Services, Inc.

              	
                43-1988394

              
	
                Premier
                  HR Services, Inc.

              	
                20-2583831

              
	
                Foxstar,
                  Inc.

              	
                38-3381160

              
	
                ELS
                  Personnel Services, Inc.

              	
                31-1655236

              
	
                Rio
                  Services, Inc.

              	
                01-0552336

              
	
                Imperial
                  Human Resources, Inc.

              	
                01-0568658

              
	
                ELS
                  HR, Inc.

              	
                20-0353428

              
	
                Luxor
                  Solutions, Inc.

              	
                38-3446845

              
	
                Streamline
                  Management, Inc.

              	
                38-2792641

              
	
                ELS,
                  Inc.

              	
                31-1655240

              
	
                ELS
                  Payroll Solutions, Inc.

              	
                20-0353444

              
	
                ELS
                  Human Resources, Inc.

              	
                31-1655239

              
	
                Integrated
                  Payroll Solutions, Inc.

              	
                33-1000183

              
	
                ELS
                  Temporary Solutions, Inc.

              	
                20-0353428

              
	
                Resolve
                  HR Solutions, Inc.

              	
                20-0677520

              
	
                Fidelity
                  Capital, Inc.

              	
                51-0462663

              
	
                ELS
                  Payroll Managers, Inc.

              	
                20-0353453

              
	
                ELS
                  Advantage, Inc.

              	
                82-0578054Exhibit 10.14

    PLEDGE
      AGREEMENT

     

    THIS
      PLEDGE AGREEMENT (this “Agreement”)
      is
      entered into as of October 1, 2006 by and among Resolve Staffing, Inc., a Nevada
      corporation (“Resolve”),
      and
      ELS Human Resource Solutions, Inc., an Ohio corporation (“ELS
      HRS”;
      each
      of Resolve and ELS HRS being referred to herein as a “Pledgor”
and
      collectively, jointly and severally, the “Pledgors”),
      the
      Pledged Stock Issuers listed on Schedule
      1
      hereto,
      and Ronald E. Heineman (“Heineman”),
      the
      Barbara L. Heineman Year 2002 Revocable Trust dated August 16, 2002, Barbara
      L.
      Heineman, Trustee, or successor (the “Heineman
      Trust”),
      and
      William J. Walton (“Walton”),
      and
      Heineman, as agent for himself, the Heineman Trust, and Walton (in such
      capacity, the “Agent”).
      

     

    WITNESSETH

     

    WHEREAS,
      in
      connection with that certain Stock Purchase Agreement by and among ELS HRS,
      the
      Heineman Trust and Walton, dated of even date herewith (the “Stock
      Purchase Agreement”);
      that
      certain Agreement and Plan of Merger (the “Forward
      Merger Agreement”)
      made
      by and among ELS HRS, Resolve, and the Constituent Companies party thereto;
      that
      certain Agreement and Plan of Merger made by and among Resolve, Mandalay Merger
      Sub LLC, and Mandalay Services, Inc. (the “Mandalay
      Merger Agreement”);
      that
      certain Agreement and Plan of Merger made by and among Resolve, Diversified
      Merger Sub LLC, and Diversified Support Systems, LLC (the “Diversified
      Merger Agreement”);
      and
      that certain Agreement and Plan of Merger made by and among Resolve, ELS
      Employer Merger Sub LLC, and ELS Employer Services, Inc. (the “ELS
      Employer Merger Agreement”)
      (the
      Forward Merger Agreement, Mandalay Merger Agreement, Diversified Merger
      Agreement, and ELS Employer Merger Agreement being referred to collectively
      herein as the “Merger
      Agreements”),
      ELS
      HRS and Resolve have made and entered into or will make and enter into certain
      Promissory Notes payable to one or more of Heineman, the Heineman Trust, and
      Walton (each being referred to individually as a “Note,”
and
      collectively as the “Notes”);
      and

     

    WHEREAS,
      the obligations of the Pledgors under the Notes are secured by various security
      documents, including, but not limited to, a Security
      Agreement by and among Walton, Heineman (in his individual capacity and as
      Agent
      for himself, the Heineman Trust, and Walton), the Heineman Trust, ELS HRS,
      Resolve, Mandalay Services, Inc., Diversified Support Systems, LLC, ELS Employer
      Services, Inc., and the subsidiaries of ELS HRS signatory thereto, dated of
      even
      date herewith (the “Security
      Agreement”),
      and a
Guaranty
      given by Resolve in favor of Walton, Heineman (in his individual capacity and
      as
      Agent for himself, the Heineman Trust, and Walton), and the Heineman Trust,
      dated of even date herewith
      (the
“Guaranty”);
      and

     

    WHEREAS,
      one or more of the Pledgors own all of the outstanding capital stock of each
      Pledged Stock Issuer, and the Pledgors and the Pledged Stock Issuers believe
      that the effectiveness of the Notes, the Stock Purchase Agreement, and the
      Merger Agreements, will be beneficial to them; and

     

    WHEREAS,
      it is a condition precedent to the effectiveness of the Stock Purchase Agreement
      and the Merger Agreements that the Pledgors and the Pledged Stock Issuers
      execute and deliver this Agreement to the Agent; 

     

    
      
        29

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      

NOW,
      THEREFORE, in consideration of the willingness of Heineman, the Heineman Trust,
      and Walton to enter into the Notes, the Guaranty, the Security Agreement, the
      Stock Purchase Agreement, and the Merger Agreements, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, it is hereby agreed as follows: 

     

    1.  Certain
      Definitions.
      

     

    (a)  As
      used
      in this Agreement the following terms shall have the following
      definitions:

     

    (i)  “Pledged
      Collateral”
means
      the Pledged Stock and any collateral now or hereafter pledged hereunder and
      the
      products and proceeds of any and all of the foregoing.

     

    (ii)  “Pledged
      Stock”
means
      the shares of capital stock of each Pledged Stock Issuer listed on Schedule
      1
      hereto
      and any additional securities or interests of any Pledged Stock Issuer in which
      any Pledgor now or hereafter has any rights, as well as any additional
      securities or interests now or hereafter pledged hereunder.

     

    (b)  Capitalized
      terms used but not defined herein shall have the respective meanings ascribed
      to
      such terms in the Security Agreement. Unless the context of this Agreement
      clearly requires otherwise, references to the plural include the singular,
      and
      references to the singular include the plural.

     

    2.  Security
      Interest.
      To
      secure the prompt, punctual and faithful payment and performance of each and
      all
      of the Secured Obligations and to secure Resolve’s obligations under the
      Guaranty, the Pledgors hereby deposit with and pledge to the Agent (for
      the
      benefit of himself and Heineman, the Heineman Trust, and Walton)
      the
      Pledged Collateral and hereby grant to the Agent (for the benefit of himself
      and
      Heineman and Walton) a security interest in and lien on all of the Pledgors’
right, title, and interest in and to the Pledged Collateral. In connection
      with
      the foregoing, the Pledgors covenant and agree concurrently herewith to deliver
      to the Agent the original share certificates representing all of the Pledged
      Stock and to execute and deliver to the Agent blank stock powers (in form and
      substance satisfactory to the Agent) relating to each of such share
      certificates. 

     

    3.  Special
      Warranties and Covenants of the Pledgors.
      The
      Pledgors hereby jointly and severally warrant and covenant to the Agent and
      to
      Heineman, the Heineman Trust, and Walton that:

     

    (a)  The
      Pledged Collateral is duly and validly pledged to the Agent in accordance with
      law and the Pledgors warrant and will defend the Agent’s right, title, and
      security interest in and to the Pledged Collateral against the claims and
      demands of all persons whatsoever.

     

    (b)  This
      Agreement and the delivery of the Pledged Collateral to the Agent create a
      perfected first priority security interest in all of the Pledged Collateral
      in
      favor of the

     

    (c)  Agent
      securing payment of the Secured Obligations, and all actions that the Agent
      required, or hereafter requires, of the Pledgors necessary to achieve such
      perfection have been, and will be, taken.

     

    (d)  Each
      Pledgor has good and valid title to its Pledged Collateral free and clear of
      all
      claims, mortgages, pledges, liens, security interests, and other encumbrances
      of
      every nature whatsoever, except only for the pledge and security interest in
      favor of the Agent created by this Agreement. 

     

    (e)  All
      of
      the Pledged Stock has been duly and validly issued to the applicable Pledgor
      and
      is fully paid and nonassessable.

     

    (f)  The
      Pledged Stock constitutes all of the presently issued and outstanding capital
      stock of each of the Pledged Stock Issuers issued to the Pledgors. 

     

    (g)  If
      any
      additional shares of capital stock, of any class, of any of the Pledged Stock
      Issuers or other securities or interests of any of the Pledged Stock Issuers
      are
      acquired by any Pledgor after the date hereof, the same shall constitute Pledged
      Collateral and shall be deposited and pledged with the Agent simultaneously
      with
      such acquisition.

     

    (h)  If
      at any
      time and from time to time any Pledged Collateral consists of an uncertificated
      security or a security in book entry form, then the applicable Pledged Stock
      Issuer shall immediately register or enter the Pledged Collateral, as the case
      may be, in the name of the Agent or otherwise cause the Agent’s security
      interest thereon to be perfected in accordance with applicable law.

     

    (i)  Each
      Pledgor has taken all steps it deems necessary or appropriate to be informed
      on
      a continuing basis of changes or potential changes, if any, affecting the
      Pledged Collateral (including rights of conversion and exchange, rights to
      subscribe, payment of dividends, reorganizations or recapitalization, tender
      offers, and voting rights), and each Pledgor agrees that the Agent shall have
      no
      responsibility or liability for informing such Pledgor of any such changes
      or
      potential changes or for taking any action or omitting to take any action with
      respect thereto.

     

    (j)  All
      information herein or hereafter supplied to the Agent by or on behalf of the
      Pledgors in writing with respect to the Pledged Collateral is, or in the case
      of
      information hereafter supplied will be, accurate and complete in all material
      respects.

     

    (k)  The
      Pledgors will not sell, convey, or otherwise dispose of any of the Pledged
      Collateral, nor will the Pledgors create, incur, or permit to exist any pledge,
      mortgage, lien, charge, encumbrance, or security interest whatsoever with
      respect to any of the Pledged Collateral, other than liens on and security
      interests in the Pledged Collateral created in favor of the Agent by this
      Agreement. 

     

    (l)  The
      Pledgors will not consent to or approve the issuance of any additional shares
      of
      capital stock, of any class, of any of the Pledged Stock Issuers if such
      issuance would violate the terms of the Security Agreement or would cause a
      default or Event of Default under the Notes or the Security Agreement and,
      in
      the event that any such additional shares of capital

     

    (m)  stock
      are
      issued to any Pledgor, they shall be deposited and pledged with the Agent
      simultaneously with such issuance. 

     

    (n)  Neither
      the pledge of the Pledged Collateral pursuant to this Agreement nor the
      extensions of credit represented by the Secured Obligations violates any of
      Regulation T, U, or X of the Board of Governors of the Federal Reserve
      System.

     

    (o)  The
      chief
      executive office of the Pledgors are located, respectively, at 3235 Omni Drive,
      Cincinnati, Ohio 45245. No Pledgor will change its jurisdiction of incorporation
      or the location of its chief executive office without providing the Agent 30
      days advance written notice. 

     

    4.  Further
      Assurances.

     

    (a)  The
      Pledgors agree that from time to time, at the expense of the Pledgors, the
      Pledgors will promptly execute and deliver all further instruments and
      documents, and take all further actions that may be necessary or desirable,
      that
      the Agent may reasonably request in order to perfect and protect any security
      interest granted or purported to be granted hereby or to enable the Agent to
      exercise and enforce its rights and remedies hereunder with respect to any
      Pledged Collateral. Without limiting the generality of the foregoing, each
      Pledgor and each Pledged Stock Issuer, as the case may be: (i) will, at the
      request of the Agent, mark conspicuously its records pertaining to the Pledged
      Collateral with a legend, in form and substance reasonably satisfactory to
      the
      Agent, indicating that such Pledged Collateral is subject to the security
      interest granted hereby; (ii) does hereby authorize the Agent to prepare and
      to
      file such financing or continuation statements, or amendments thereto, and
      such
      other instruments or notices, as may be necessary or desirable, or as the Agent
      may deem appropriate, in order to perfect and preserve the security interests
      granted or purported to be granted hereby; (iii) will allow inspection of the
      Pledged Collateral by the Agent or persons designated by the Agent; and (iv)
      will appear in and defend any action or proceeding that may affect any Pledgor’s
      title to or the Agent’s security interest in the Pledged
      Collateral.

     

    (b)  Any
      reproduction of this Agreement or any financing statement covering the Pledged
      Collateral or any part thereof shall be sufficient as a financing statement
      where permitted by law.

     

    (c)  Upon
      request, the Pledgors will furnish to the Agent: (i) a certificate executed
      by the Pledgors or an authorized officer, manager, or member of each of the
      Pledgors, as the case may be, and dated as of the date of delivery to the Agent,
      itemizing in such detail as the Agent may request, the Pledged Collateral which,
      as of the date of such certificate, has been delivered to the Agent by the
      Pledgors pursuant to the provisions of this Agreement; and (ii) such
      statements and schedules further identifying and describing the Pledged
      Collateral and such other reports in connection with the Pledged Collateral
      as
      the Agent may reasonably request.

     

    5.  Covenants
      of Pledgors.
      The
      Pledgors, jointly and severally, covenant and agree that each Pledgor
      shall:

     

    (a)  timely
      perform each and every covenant in the Notes and Security Agreement applicable
      to the Pledgors; and

     

    (b)  upon
      receipt by any Pledgor of any material notice, report, or other communication
      from any of the Pledged Stock Issuers relating to all or any part of the Pledged
      Collateral, deliver such notices, reports, and other communications to the
      Agent
      as soon as possible, but in no event later than 5 calendar days following the
      receipt thereof by such Pledgor.

     

    6.  The
      Agent as the Pledgor’s Attorney-in-Fact.

     

    (a)  Each
      Pledgor hereby irrevocably appoints the Agent as such Pledgor’s
      attorney-in-fact, with full authority in the place and stead of the Pledgor
      and
      in the name of the Pledgor, the Agent, or otherwise, from time to time at the
      Agent’s discretion, to take any action and to execute any instrument that the
      Agent may reasonably deem necessary or advisable to accomplish the purposes
      of
      this Agreement, including after the occurrence of an Event of Default: (i)
      to
      receive, endorse, and collect all instruments made payable to any Pledgor
      representing any dividend, interest payment, or other distribution in respect
      of
      the Pledged Collateral or any part thereof to the extent permitted hereunder
      and
      to give full discharge for the same and to execute and file governmental
      notifications and reporting forms; (ii) to issue any
      notifications/instructions the Agent deems necessary pursuant to this Agreement;
      or (iii) to arrange for the transfer of the Pledged Collateral on the books
      of each Pledged Stock Issuer to the name of the Agent or to the name of the
      Agent’s nominee.

     

    (b)  In
      addition to the designation of the Agent as each Pledgor’s attorney-in-fact in
subsection (a),
      each
      Pledgor hereby irrevocably appoints the Agent as such Pledgor’s agent and
      attorney-in-fact to make, execute, and deliver any and all documents and
      writings which may be necessary or appropriate for approval of, or be required
      by, any regulatory authority located in any city, county, state, or country
      where any Pledgor or any of the Pledged Stock Issuers engage in business, in
      order to transfer or to more effectively transfer any of the Pledged Shares
      after the occurrence of an Event of Default or otherwise to enforce the Agent’s
      rights hereunder. The
      powers-of-attorney in described in subsection
      (a)
      and this
subsection
      (b)
      shall be
      deemed to be powers coupled with an interest, and are irrevocable.

     

    7.  Distributions.
      In
      case, upon the dissolution, winding up, liquidation, or reorganization of any
      of
      the Pledged Stock Issuers, whether in bankruptcy, insolvency, or receivership
      proceedings or upon an assignment for the benefit of creditors or any other
      marshalling of the assets and liabilities of such Pledged Stock Issuer or
      otherwise, any sum shall be paid or any property shall be distributed upon
      or
      with respect to any of the Pledged Collateral, such sum shall be paid over
      to
      the Agent to be held as collateral security for the Secured Obligations. In
      case
      any stock dividend shall be declared on any of the Pledged Collateral, or any
      share of stock or fraction thereof shall be issued pursuant to any stock split
      involving any of the Pledged Collateral, or any distribution of capital
      (including cash dividends, except those expressly allowed under the Security
      Agreement) shall be made on any of the Pledged Collateral, or any property
      shall
      be distributed upon or with respect to the Pledged Collateral pursuant to
      recapitalization or reclassification of the capital of any of the Pledged Stock
      Issuers, or any shares of or other equity in any of the Pledged Stock Issuers
      shall at any time be issued to any Pledgor, the shares or other property so
      distributed or issued (along with any blank stock powers and/or indorsements
      that the Agent deems appropriate) shall promptly be delivered to the Agent
      to be
      held as collateral security for the Secured Obligations.

     

    8.  Events
      of Default.
      Any
      Event of Default as defined and provided in the Security Agreement shall
      constitute an “Event
      of Default”
under
      this Agreement.

     

    9.  Rights
      and Remedies of the Secured Parties.
      After
      the occurrence of any Event of Default, the Agent and Heineman, the Heineman
      Trust, and Walton shall have the following rights and remedies:

     

    (a)  all
      rights and remedies provided by law, including, without limitation, those
      provided by the Uniform Commercial Code as adopted in the states of
      incorporation of the Pledged Stock Issuers (the “Uniform
      Commercial Code”);

     

    (b)  all
      rights and remedies provided in this Agreement; and

     

    (c)  all
      rights and remedies provided in the Security Agreement or in any other
      agreement, document, or instrument pertaining to the Secured Obligations or
      security therefor.

     

    10.  Right
      to Transfer into Name of the Agent, etc.
      After
      the occurrence of any Event of Default, the Agent may cause all or any of the
      Pledged Collateral to be transferred into its name or into the name of its
      nominee or nominees. In addition, the Agent shall have the right at any time
      to
      exchange certificates or instruments representing or evidencing any Pledged
      Collateral for certificates or instruments of smaller or larger
      denominations.

     

    11.  Right
      of the Agent to Exercise Voting Power, etc.
      So long
      as no Event of Default shall have occurred, the Pledgors shall be entitled
      to
      exercise as the Pledgors shall deem fit, but in a manner consistent with the
      terms hereof and of the Secured Obligations, the voting power with respect
      to
      the Pledged Collateral. After the occurrence of any Event of Default, the Agent
      shall be entitled to exercise the voting power with respect to the Pledged
      Collateral and to receive and retain, as collateral security for the Secured
      Obligations, any and all dividends and other distributions at any time and
      from
      time to time declared or made upon any of the Pledged Collateral, and to
      exercise any and all rights of payment, conversion, exchange, subscription,
      or
      any other rights, privileges, or options pertaining to the Pledged Collateral
      as
      if it were the absolute owner thereof, including, without limitation, the right
      to exchange, at its discretion, any and all of the Pledged Collateral upon
      the
      merger, consolidation, reorganization, recapitalization, or other readjustment
      of any of the Pledged Stock Issuers or, upon the exercise of any such right,
      privilege, or option pertaining to any of the Pledged Collateral, and in
      connection therewith, to deposit and deliver any and all of the Pledged
      Collateral with any committee, depositary, transfer agent, registrar, or other
      designated agency upon such terms and conditions as the Agent may determine,
      all
      without liability except to account for property actually received. The Agent
      shall have no duty to exercise any of the aforesaid rights, privileges, or
      options and shall not be responsible for any failure to do so or delay in so
      doing.

     

    12.  Right
      of the Agent to Dispose of Collateral, etc.
      

     

    (a)  After
      the
      occurrence of any Event of Default, the Agent shall have the right at any time
      or times thereafter to sell, resell, assign, and/or deliver any or all of the
      Pledged Collateral in one or more parcels at any exchange or broker’s board or
      at public or private sale. The Agent will give the Pledgors at least 10 days
      prior written notice at the address of the Pledgors specified in Section
      23
      hereof
      of the time and place of any public sale thereof or of the

     

    (b)  time
      after which any private sale or any other intended disposition thereof is to
      be
      made. Any such notice shall be deemed to meet any requirement hereunder or
      under
      any applicable law (including any applicable Uniform Commercial Code) that
      reasonable notification be given of the time and place of such sale or other
      disposition. Such notice may be given without any demand of performance or
      other
      demand, all such demands being hereby expressly waived by the Pledgors. All
      such
      sales shall be conducted in a commercially reasonable manner and shall be at
      such commercially reasonable price or prices as the Agent shall deem best and
      either for cash or on credit or for future delivery (without assuming any
      responsibility for credit risk). At any such sale or sales, the Agent may
      purchase any or all of the Pledged Collateral to be sold thereat upon such
      terms
      as the Agent may deem best. Upon any such sale or sales, the Pledged Collateral
      so purchased shall be held by the purchaser absolutely free from any claims
      or
      rights of whatsoever kind or nature, including any equity of redemption and
      any
      similar rights, all such equity of redemption and any similar rights being
      hereby expressly waived and released by the Pledgors. In the event any consent,
      approval, or authorization of any governmental agency will be necessary to
      effectuate any such sale or sales, the Pledgors shall execute, and hereby agree
      to cause each Pledged Stock Issuer to execute, all such applications or other
      instruments as may be required. The proceeds of any such sale or sales shall
      be
      applied as provided in the Security Agreement.

     

    (b) The
      Pledgors recognize that the Agent may be unable to effect a public sale of
      all
      or a part of the Pledged Collateral by reason of certain prohibitions contained
      in the Securities Act of 1933, but may be compelled to resort to one or more
      private sales to a restricted group of purchasers, each of whom will be
      obligated to agree, among other things, to acquire such Pledged Collateral
      for
      its own account, for investment, and not with a view to the distribution or
      resale thereof. The Pledgors acknowledge that private sales so made may be
      at
      prices and upon other terms less favorable to the seller than if such Pledged
      Collateral were sold at public sales, and that the Agent has no obligation
      to
      delay sale of any such Pledged Collateral for the period of time necessary
      to
      permit such Pledged Collateral to be registered for public sale under the
      Securities Act of 1933. The Pledgors agree that any such private sale shall
      not
      be deemed to have been made in a commercially unreasonable manner solely because
      it shall have been made under the foregoing circumstances.

    

    (c) If
      the
      Agent determines to exercise its right to sell all or any portion of the Pledged
      Collateral pursuant to this Section
      12,
      each
      Pledged Stock Issuer shall, upon the request of the Agent and at such Pledged
      Stock Issuer’s own expense,
      do or
      cause to be done all such other acts and things as may be reasonably necessary
      to make such sale of the Pledged Collateral or any part thereof valid and
      binding and in compliance with applicable law.

     

    (d) The
      Pledgors acknowledge that there is no adequate remedy at law for failure by
      them
      to comply with the provisions of this Section
      12
      and that
      such failure would not be adequately compensable in damages, and therefore
      agree
      that the Pledgors’ agreements contained in this Section
      12
      may be
      specifically enforced.

     

    13.  Collection
      of Amounts Payable on Account of Pledged Collateral, etc.
      After
      the occurrence of any Event of Default, the Agent may, but without obligation
      to
      do so, demand, sue for, and/or collect any money or property at any time due,
      payable, or receivable, to which the Agent may be entitled hereunder, on account
      of or in exchange for any of the Pledged Collateral

     

    14.  and
      the
      Agent shall have the right, for and in the name, place, and stead of the
      Pledgors, to execute any endorsements, assignments, or other instruments of
      conveyance or transfer with respect to all or any of the Pledged
      Collateral.

     

    15.  Care
      of Pledged Collateral in the Agent’s Possession.
      Beyond
      the exercise of reasonable care to assure the safe custody of the Pledged
      Collateral while held hereunder, the Agent shall have no duty or liability
      to
      collect any sums due in respect of the Pledged Collateral or to protect or
      preserve rights pertaining to the Pledged Collateral, and shall be relieved
      of
      all responsibility for the Pledged Collateral upon surrendering the same to
      the
      Pledgors.

     

    16.  WAIVERS,
      ETC.
      THE
      PLEDGORS HEREBY WAIVE PRESENTMENT, DEMAND, NOTICE, PROTEST, AND, EXCEPT AS
      IS
      OTHERWISE PROVIDED HEREIN, ALL OTHER DEMANDS AND NOTICES IN CONNECTION WITH
      THIS
      AGREEMENT OR THE ENFORCEMENT OF THE AGENT’S RIGHTS HEREUNDER OR IN CONNECTION
      WITH ANY SECURED OBLIGATIONS OR ANY PLEDGED COLLATERAL. THE PLEDGORS FURTHER
      CONSENT TO AND WAIVE NOTICE OF THE GRANTING OF RENEWALS, EXTENSIONS OF TIME
      FOR
      PAYMENT, OR OTHER INDULGENCES TO ANY OF THE PLEDGED STOCK ISSUERS OR TO ANY
      THIRD PARTY, OR SUBSTITUTION, RELEASE, OR SURRENDER OF ANY PLEDGED COLLATERAL
      FOR ANY OF THE SECURED OBLIGATIONS, THE ADDITION OR RELEASE OF PERSONS PRIMARILY
      OR SECONDARILY LIABLE ON ANY OF THE SECURED OBLIGATIONS OR ON ANY PLEDGED
      COLLATERAL FOR ANY OF THE SECURED OBLIGATIONS, THE ACCEPTANCE OF PARTIAL
      PAYMENTS ON ANY OF THE SECURED OBLIGATIONS, OR ON ANY PLEDGED COLLATERAL FOR
      ANY
      OF THE SECURED OBLIGATIONS, AND/OR THE SETTLEMENT OR COMPROMISE THEREOF. NO
      DELAY OR OMISSION ON THE PART OF THE AGENT IN EXERCISING ANY RIGHT HEREUNDER
      SHALL OPERATE AS A WAIVER OF SUCH RIGHT OR OF ANY OTHER RIGHT HEREUNDER. ANY
      WAIVER OF ANY SUCH RIGHT ON ANY ONE OCCASION SHALL NOT BE CONSTRUED AS A BAR
      TO
      OR WAIVER OF ANY SUCH RIGHT ON ANY FUTURE OCCASION. THE PLEDGORS FURTHER WAIVE
      ANY RIGHT THEY MAY HAVE UNDER THE CONSTITUTION OF THE STATE OF OHIO (OR UNDER
      THE CONSTITUTION OF ANY OTHER STATE IN WHICH ANY OF THE PLEDGED COLLATERAL
      MAY
      BE LOCATED), OR UNDER THE CONSTITUTION OF THE UNITED STATES OF AMERICA, TO
      NOTICE (OTHER THAN ANY REQUIREMENT OF NOTICE PROVIDED HEREIN) OR TO A JUDICIAL
      HEARING PRIOR TO THE EXERCISE OF ANY RIGHT OR REMEDY PROVIDED BY THIS AGREEMENT
      TO THE AGENT AND WAIVE THEIR RIGHTS, IF ANY, TO SET ASIDE OR INVALIDATE ANY
      SALE
      DULY CONSUMMATED IN ACCORDANCE WITH THE FOREGOING PROVISIONS HEREOF ON THE
      GROUNDS (IF SUCH BE THE CASE) THAT THE SALE WAS CONSUMMATED WITHOUT A PRIOR
      JUDICIAL HEARING. THE PLEDGORS’ WAIVERS UNDER THIS SECTION HAVE BEEN MADE
      VOLUNTARILY, INTELLIGENTLY, AND KNOWINGLY AND AFTER THE PLEDGORS HAVE BEEN
      APPRISED AND COUNSELED BY THEIR ATTORNEYS AS TO THE NATURE THEREOF AND THEIR
      POSSIBLE ALTERNATIVE RIGHTS.

     

    17.  Termination;
      Assignment, etc.
      This
      Agreement and the security interest in the Pledged Collateral created hereby
      shall terminate when all of the Secured Obligations have been

     

    18.  indefeasibly
      paid and finally discharged in full in cash. For all purposes of this Agreement,
      no default or Event of Default shall be deemed to have been waived except as
      expressly provided in the Security Agreement. No waiver by the Agent or by
      any
      other holder of Secured Obligations of any default shall be effective unless
      in
      writing nor operate as a waiver of any other default or of the same default
      on a
      future occasion. In the event of a sale or assignment by the Agent or Heineman,
      the Heineman Trust, or Walton of all or any of the Secured Obligations held
      by
      them in accordance with the terms of the Notes and the Security Agreement,
      the
      Agent or Heineman, the Heineman Trust, or Walton may assign or transfer any
      right and/or interest of the Agent or Heineman, the Heineman Trust, or Walton
      under this Agreement in whole or in part to the purchaser or purchasers of
      such
      Secured Obligations, whereupon such purchaser or purchasers shall become vested
      with all of the powers and rights of the Agent or Heineman, the Heineman Trust,
      or Walton, as the case may be, hereunder, and the Agent or Heineman, the
      Heineman Trust, or Walton, as the case may be, shall thereafter be forever
      released and fully discharged from any liability or responsibility hereunder
      with respect to the rights and interests so assigned.

     

    19.  Reinstatement.
      Notwithstanding anything to the contrary herein, this Agreement shall continue
      to be effective or be reinstated, as the case may be, if at any time any amount
      received by the Agent in respect of the Secured Obligations is rescinded or
      must
      otherwise be restored or returned by the Agent upon the insolvency, bankruptcy,
      dissolution, liquidation, or reorganization of any of the Pledged Stock Issuers
      or any Pledgor or upon the appointment of any intervenor or conservator of,
      or
      trustee or similar official for, any of the Pledged Stock Issuers or any Pledgor
      or any substantial part of their respective properties, or otherwise, all as
      though such payments had not been made.

     

    20.  Governmental
      Approvals, etc.
      Upon
      the exercise by the Agent of any power, right, privilege, or remedy pursuant
      to
      this Agreement that requires any consent, approval, qualification, or
      authorization of any governmental authority or instrumentality, the Pledgors
      will execute and deliver, or will cause to be executed and delivered, all
      applications, certificates, instruments, and other documents and papers that
      the
      Agent may be required to obtain for such governmental consent, approval,
      qualification, or authorization.

     

    21.  Restrictions
      on Transfer, etc.
      To the
      extent that any restrictions imposed by the charter, articles or certificate
      of
      incorporation, or code of regulations or by-laws of any of the Pledged Stock
      Issuers or any agreement among the holders of capital stock of any of the
      Pledged Stock Issuers or other document or instrument would in any way affect
      or
      impair the pledge of the Pledged Collateral hereunder or the exercise by the
      Agent of any right granted hereunder, including, without limitation, the right
      of the Agent to dispose of any of the Pledged Collateral upon the occurrence
      of
      any Event of Default, each Pledgor and each Pledged Stock Issuer hereby waives
      such restrictions. Each Pledged Stock Issuer and each Pledgor hereby covenants,
      represents, and warrants that it has taken each necessary action to waive such
      restrictions. Each Pledged Stock Issuer and each Pledgor will take any further
      action which the Agent may reasonably request in order that the Agent may obtain
      and enjoy the full rights and benefits granted to the Agent by this Agreement
      free of any such restrictions.

     

    22.  Amendments.
      No
      amendment or waiver of any provision of this Agreement nor consent to any
      departure by the Pledgors herefrom shall in any event be effective unless the
      same

     

    23.  shall
      be
      in writing and signed by the Agent, and then such waiver or consent shall be
      effective only in the specific instance and for the specific purpose for which
      given.

     

    24.  Security
      Interest Absolute.
      To the
      maximum extent permitted by law, all rights of the Agent, all security interests
      hereunder, and all obligations of the Pledgors hereunder, shall be absolute
      and
      unconditional irrespective of:

     

    (a)  any
      lack
      of validity or enforceability of any of the Secured Obligations or any other
      agreement or instrument relating thereto or providing security
      therefor;

     

    (b)  any
      change in the time, manner, or place of payment of, or in any other term of,
      all
      or any of the Secured Obligations, or any other amendment or waiver of or any
      consent to any departure from any other agreement or instrument relating thereto
      or providing security therefor;

     

    (c)  any
      exchange, release, or non-perfection of any other collateral, or any release
      or
      amendment or waiver of or consent to departure from any guaranty for all or
      any
      of the Secured Obligations; or

     

    (d)  any
      other
      circumstances that might otherwise constitute a defense available to, or a
      discharge of, the Pledgors.

     

    To
      the
      maximum extent permitted by law, the Pledgors hereby waive any right to require
      the Agent to: (i) proceed against or exhaust any security held from the
      Pledgors; or (ii) pursue any other remedy in the Agent’s power
      whatsoever.

     

    25.  Waiver
      of Marshaling.
      Each
      Pledgor and the Agent each acknowledge and agree that in exercising any rights
      under or with respect to the Pledged Collateral: (i) the Agent is under no
      obligation to marshal any Pledged Collateral; (ii) the Agent may, in its
      absolute discretion, realize upon the Pledged Collateral in any order and in
      any
      manner it so elects; and (iii) the Agent may, in its absolute discretion,
      apply the proceeds of any or all of the Pledged Collateral to the Secured
      Obligations in any order and in any manner it so elects. The Agent and Pledgors
      waive any right to require the marshaling of any of the Pledged
      Collateral.

     

    26.  Notices.
      Except
      as otherwise provided herein, all notices to any Pledgor or any of the Pledged
      Stock Issuers or to the Agent shall be in writing and shall be deemed to have
      been sufficiently given or served for all purposes hereof if made in accordance
      with and delivered to the respective addresses provided on the signature pages
      and Schedule
      1
      hereto.

     

    27.  Governing
      Law; Jurisdiction; Waiver of Jury Trial.
      This
      Agreement, including the validity hereof and the rights and obligations of
      the
      parties hereunder, shall be construed in accordance with and governed by the
      laws of the State of Ohio. Each Pledgor, to the extent that it may lawfully
      do
      so, hereby consents to the jurisdiction of the state and federal courts located
      in Hamilton County, Ohio, as well as to the jurisdiction of all courts to which
      an appeal may be taken from such courts, for the purpose of any suit, action,
      or
      other proceeding arising out of any of its obligations hereunder or with respect
      to the transactions contemplated hereby, and expressly waives any and all
      objections it may have as to venue in any such courts. Each Pledgor further
      agrees that a summons and complaint commencing an action or proceeding
      in

     

    28.  any
      of
      such courts shall be properly served and shall confer personal jurisdiction
      if
      served personally or by certified mail to it at its address as provided in
      Section
      23
      hereof
      or as otherwise provided under the laws of the State of Ohio. Each Pledgor
      irrevocably waives all right to a trial by jury in any suit, action, or other
      proceeding instituted by or against it in respect of its obligations hereunder
      or the transactions contemplated hereby.

     

    29.  Power
      of Attorney; Confession of Judgment.
      Each
      Pledgor and Pledged Stock Issuer hereby irrevocably authorizes and empowers
      any
      attorney-at-law to appear for such Pledgor or Pledged Stock Issuer in any action
      upon or in connection with this Agreement at any time after any of the
      obligations of such Pledgor or Pledged Stock Issuer under this Agreement becomes
      due in any court in or of the State of Ohio or elsewhere, and waives the
      issuance and service of process with respect thereto, and irrevocably authorizes
      and empowers any such attorney-at-law to confess judgment in favor of Agent
      against any Pledgor or Pledged Stock Issuer, the amount due thereon or hereon,
      plus interest as herein provided, and all costs of collection, and waive and
      release all errors in any said proceedings and judgments and all rights of
      appeal from the judgment rendered. Each Pledgor and Pledged Stock Issuer agrees
      and consents that the attorney confessing judgment on behalf of such Pledgor
      or
      Pledged Stock Issuer hereunder may also be counsel to Agent and/or any affiliate
      or affiliates of Agent, and each Pledgor and Pledged Stock Issuer hereby further
      waives any conflict of interest which might otherwise arise and consents to
      Agent's paying such confessing attorney a legal fee or allowing such attorneys'
      fees to be paid from proceeds of collection of this Agreement and/or any and
      all
      collateral and security for the obligations of Pledgors and the Pledged Stock
      Issuers hereunder. This
      power-of-attorney shall be deemed to be a power coupled with an interest, and
      is
      irrevocable.

     

    26.  Miscellaneous.
      

     

    (a)  This
      Agreement supersedes all prior agreements, whether written or oral, between
      the
      parties with respect to its subject matter and constitutes (along with the
      documents, if any, referred to in this Agreement) a complete and exclusive
      statement of the terms of the agreement between the parties with respect to
      its
      subject matter.

     

    (b)  If
      any
      provision of this Agreement shall be held to be invalid or unenforceable for
      any
      reason, the remaining provisions shall continue to be valid and enforceable.
      If
      a court finds that any provision of this Agreement is invalid or unenforceable,
      but that by limiting such provision it would become valid or enforceable, then
      such provision shall be deemed to be written, construed, and enforced as so
      limited.

     

    (c)  This
      Agreement shall inure to the benefit of and shall be binding upon the parties
      and their respective heirs, executors, administrators, successors, and assigns;
      provided, however, that no Pledgor shall assign any part of its rights or duties
      under this Agreement without the prior written consent of the Agent, which
      the
      Agent may grant or withhold in its sole discretion, and any such assignment
      by a
      Pledgor without the Agent’s prior written consent shall be void and of no force
      or effect. In the event of a merger, sale, transfer, consolidation, or
      reorganization involving the Agent, this Agreement shall continue in full force
      and effect and shall be binding upon, and inure to the benefit of, the Agent’s
      successors and assigns. 

     

    (d)  The
      headings of the Sections and paragraphs of this Agreement are included solely
      for convenience of reference and shall not control the meaning or interpretation
      of any of the provisions of this Agreement.

     

    (e)  
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, will be deemed to constitute one and the same agreement. The exchange
      of copies of this Agreement and of signature pages by facsimile or electronic
      mail transmission shall constitute effective execution and delivery of this
      Agreement as to the parties and may be used in lieu of the original Agreement
      for all purposes. Signatures of the parties transmitted by facsimile or
      electronic mail shall be deemed to be their original signatures for all
      purposes. 

     

    (f)  This
      Agreement has been entered into in conjunction with the provisions of and the
      security interests granted to the Agent under the Notes, the Guaranty, and
      the
      Security Agreement. The rights and remedies of each Pledgor, each Pledged Stock
      Issuer, and the Agent with respect to the security interests granted herein
      are
      in addition and without prejudice to those set forth in the Notes, the Guaranty,
      and the Security Agreement, all terms and provisions of which are hereby
      incorporated herein by reference. 

     

    WARNING--BY
      SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU
      DO
      NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR
      KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS
      OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS,
      FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER
      CAUSE.

    

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        29

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Pledge Agreement as of the
      date
      first written above.

     

    
      	
              PLEDGORS:

            
	
               

              ELS
                HUMAN RESOURCE SOLUTIONS, INC.

              3235
                Omni Drive

              Cincinnati,
                Ohio 45245

               

              By:/s/
                Donald Quarterman        

              Name:
                Donald Quarterman

              Title:
                President

               

               

              RESOLVE
                STAFFING, INC.

              3235
                Omni Drive

              Cincinnati,
                Ohio 45245

               

              By:/s/
                Donald Quarterman        

              Name:
                Donald Quarterman 

              Title:
                Director and Authorized Officer

            
	 

    

    

    

    
      	
              THE
                PLEDGED STOCK ISSUERS:

            
	
              MANDALAY
                SERVICES, INC.

               

              By:/s/
                Scott Horne        

              Name:
                Scott Horne 

              Title:
                President

               

              ELS
                HUMAN RESOURCE SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman        

              Name:
                Donald Quarterman 

              Title:
                President

               

              DIVERSIFIED
                SUPPORT SYSTEMS, LLC

               

              By:/s/
                Ronald Heinemana        

              Name:
                Ronald E. Heineman 

              Title:
                President

               

               

               

              ELS
                EMPLOYER SERVICES, INC.

               

              By:/s/
                Steve Roux      

              Name:
                Steve Roux

              Title:
                President

               

               

              EMPLOYEE
                LEASING SERVICES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                OUTSOURCE SERVICES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              PREMIER
                HR SERVICES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              FOXSTAR,
                INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                PERSONNEL SERVICES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

               

               

               

               

              RIO
                SERVICES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              IMPERIAL
                HUMAN RESOURCES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                HR, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              LUXOR
                SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              STREAMLINE
                MANAGEMENT, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS,
                INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

               

               

               

               

              ELS
                PAYROLL SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                HUMAN RESOURCES, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              INTEGRATED
                PAYROLL SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                TEMPORARY SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              RESOLVE
                HR SOLUTIONS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              FIDELITY
                CAPITAL, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

               

               

               

               

              ELS
                PAYROLL MANAGERS, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

               

               

              ELS
                ADVANTAGE, INC.

               

              By:/s/
                Donald Quarterman      

              Name:
                Donald Quarterman

              Title:
                President

            
	 
	 
	 

    

    

    
      	
              THE
                AGENT:

            
	
              /s/
                Ronald Heineman

              Ronald
                E. Heineman  

            

    

    

     

    
      
        29

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
      1 TO PLEDGE AGREEMENT

     

    PLEDGED
      STOCK

     

    Address
      for all Pledged Stock Issuers: 3235 Omni Drive, Cincinnati, OH
      45245

     

    ELS
      Human Resource Solutions

     

    
      	
              Description
                

              (class
                and/or

              series)
                of

              Pledged
                Stock

            	
               

               

              Number

              of
                Shares

            	
               

               

               

              Percentage*

            	
               

               

              Certificate
                Number

            	
               

               

               

              Pledgor

            
	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              Resolve

            
	 	 	 	 	 

    

    

    

    Mandalay
      Services, Inc.

     

    
      	
               

              Common
                Stock

            	
               

              100

            	
               

              100%

            	 	
               

              Resolve

            
	 	 	 	 	 

    

     

     

    Diversified
      Support Systems, LLC

     

    
      	
               

              Units
                

            	 	
               

              100%

            	 	
               

              Resolve
                

            

    

    

     

    
      	 	 	 	 	 

    

    ELS
      Employer Services, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
              Resolve

            

    

    

     

    

     

    Employee
      Leasing Services, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      Outsource Services, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Premier
      HR Services, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Foxstar,
      Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      Personnel Services, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Rio
      Services, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Imperial
      Human Resources, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      HR, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
              ELS
                HRS

            

    

    

     

    Luxor
      Solutions, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              100

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Streamline
      Management, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              500

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS,
      Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
              ELS
                HRS

            

    

    

     

    ELS
      Payroll Solutions, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      Human Resources, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Integrated
      Payroll Solutions, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      Temporary Solutions, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    Resolve
      HR Solutions, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    Fidelity
      Capital, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    ELS
      Payroll Managers, Inc.

     

    
      	
               

              Common
                Stock 

            	 	
               

              100%

            	 	
               

              ELS
                HRS

            
	 	 	 	 	 

    

    

     

    ELS
      Advantage, Inc.

     

    
      	
               

              Common
                Stock 

            	
               

              1,000

            	
               

              100%

            	 	
               

              ELS
                HRS

            

    

    

     

    *
      For the
      purposes of this Schedule
      1,
      “Percentage” means the percentage of all of the issued and outstanding shares of
      capital stock of the Pledged Stock Issuer on a fully diluted basis.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]