Document:

ex4-2.htm

     

     

    
 

    STEWARDSHIP
FINANCIAL CORPORATION

    DIVIDEND
REINVESTMENT PLAN

    (as
amended and restated effective as of May 18, 2010)

    

    

     

    1.  
  THE CORPORATION

     

    Stewardship
Financial Corporation (the “Corporation”) is a New Jersey state chartered bank
holding company.  The Corporation was formed in 1995 to serve as a
holding company for Atlantic Stewardship Bank (the “Bank”).  The
Corporation was organized at the direction of the Board of Directors of the Bank
for the purpose of acquiring all of the capital stock of the
Bank.  Pursuant to the New Jersey Banking Act of 1948, as amended, and
pursuant to approval of the share

holders of the Bank, the Corporation acquired the Bank and became its
holding company on November 22, 1996.  In connection with the
acquisition, shareholders of the Bank received one share of the common stock, no
par value of the Corporation (the “Common Stock”), for each share of the common
stock of the Bank then issued and outstanding.  The only significant
activity of the Corporation is ownership and supervision of the
Bank.

     

    The
Corporation’s executive offices are located at 630 Godwin Avenue, Midland Park,
New Jersey 07432-1405, and the Corporation’s telephone number is 877-844-BANK or
201-444-7100.  The Corporation’s website is
www.asbnow.com.

     

    The
Corporation files annual and quarterly reports and proxy statements with the
Securities and Exchange Commission.  All such reports are hereby
incorporated by reference into the description of the Corporation in this
Dividend Reinvestment Plan. The Corporation will provide, without charge, to any
person to whom a copy of this Plan is delivered, on the oral or written request
of any such person, a copy of any or all of the foregoing documents. Written
requests for copies of any such documents should be directed to Stewardship
Financial Corporation, 630 Godwin Avenue, Midland Park, New Jersey 07432-1405,
Attention: Corporate Services; and oral requests may be made by calling
877-844-BANK or 201-444-7100.

     

     

    2.    
THE BANK

     

    Atlantic
Stewardship Bank is a wholly-owned subsidiary of the Corporation.  The
Bank was formed in 1985 by local businessmen to serve the needs of the local
community.  The Bank’s by-laws include a commitment to tithe ten
percent (10%) of its pre-tax profits to Christian and civic
charities.  The Dividend Reinvestment Plan for the Bank was originally
approved on March 7, 1994; and was amended and adopted by the Corporation on
January 21, 1997 and was further amended and adopted by the Corporation on April
23, 2009.

     

    The
Bank’s executive offices are located at 630 Godwin Avenue, Midland Park, New
Jersey 07432-1405; and the telephone number of the Bank is 877-844-BANK or
201-444-7100. The Bank’s website is www.asbnow.com.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.   
 THE PLAN

     

    The
Stewardship Financial Corporation Dividend Reinvestment Plan (the “Plan”) is
designed to afford shareholders of record the opportunity to increase
investments in our Common Stock through a convenient method of investing with no
brokerage commissions or administrative fees of any kind.  The Plan
allows shareholders who enroll in the Plan to use their cash dividends and to
make additional cash contributions to purchase whole and fractional shares of
our Common Stock.  See Section 12 for a description of the procedure
for enrollment.

     

    The Plan
may be amended, suspended, modified or terminated at any time by the Board of
Directors of the Corporation without the approval of the
participants.  Notice of suspension or termination or material
amendment or modification will be sent to all participants who will at all times
have the right to withdraw from the Plan.  Nothing in the Plan is to
be considered a guarantee or a promise to pay any dividends in the future except
as may be declared by the Board of Directors of the Corporation from time to
time.

     

     

    4.   
 ADMINISTRATION OF THE PLAN

     

    Registrar
and Transfer Company, the Corporation’s stock transfer agent (“R&T” or the
“Plan Administrator”), will administer the Plan by maintaining records, sending
account statements to participants and performing other duties relating to the
Plan.  Shares of Common Stock purchased under the Plan are registered
in the name of the Plan Administrator’s nominee and are credited to the accounts
of the participants in the Plan.  The Plan Administrator acts in the
capacity of agent for participants in the Plan.  The Corporation
reserves the right to substitute another bank, trust company or transfer agent
for R&T and may replace R&T as the Plan Administrator at any time in our
sole discretion.

     

    Questions
and other communications concerning the Plan should be directed to R&T at
the following address:

     

    Registrar and Transfer
Company

    Dividend Reinvestment Plan
Department

    P.O. Box 664

    Cranford, New Jersey 07016

    

    Or for
overnight delivery:

     

    Registrar and Transfer
Company

    Dividend Reinvestment Plan
Department

    10 Commerce Drive

    Cranford, New Jersey 07016

    

    Online:                      www.rtco.com

     

    Telephone:               800-368-5948

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The Plan
Administrator will make every effort to invest all authorized dividends promptly
after receipt of such dividends and in no event later than 30 days from such
receipt, except where necessary under any applicable federal securities
laws.

     

    The Plan
Administrator will not be liable under the Plan (unless it is grossly negligent)
for any act done in good faith or for any good faith omission to act including,
without limitations, any claims for liability (1) arising out of failure to
terminate a participant’s participation in the Plan upon the Participant’s death
prior to receipt of notice in writing of such death and (2) with respect to the
prices at which shares are purchased or sold for participants’ accounts and the
time such purchases or sales are made.

     

     

    5.    
INVESTMENT CONSIDERATIONS

     

    Shares of
the Corporation’s Common Stock are traded on the Nasdaq Capital Market under the
symbol SSFN.  The identity of the market makers for the Common Stock
at any given time can be found at www.nasdaq.com.

     

    Any
participant whose purchase of shares of the Corporation’s Common Stock would
increase his or its beneficial ownership to 10% or more of the Corporation’s
then outstanding shares will require the prior approval of the Federal Deposit
Insurance Corporation and the New Jersey Department of Banking and
Insurance.

     

    Shares of
the Corporation’s Common Stock purchased under this Plan are NOT deposit
accounts of the Corporation or of the Bank and are NOT insured by the Federal
Deposit Insurance Corporation or any other governmental
organization.  A participant’s investment in shares held in the Plan
is no different than an investment in shares of Common Stock purchased directly
in the market.  The participant bears the risk of loss and the
benefits of gain from market price changes for all of the shares of the
Corporation’s Common Stock held.  Shares of the Corporation’s Common
Stock are subject to market risk and possible loss of investment.

     

    6.    
PURCHASE OF SHARES UNDER THE PLAN

     

    Shares of the Corporation’s Common
Stock purchased under the Plan may be purchased either from the Corporation’s
legally authorized but unissued shares of Common Stock or from the Corporation’s
treasury stock, or purchased in the open market, or purchased through a
combination of these means, at the discretion of the
Corporation.  Shares purchased other than from the Corporation will be
purchased by agents independent of the Corporation.  All shares of
Common Stock purchased pursuant to the Plan, from the Corporation or otherwise,
will be credited to the accounts of the Plan participants by the Plan
Administrator.

     

    The price of shares of Common Stock
purchased from the Corporation will be the average closing price of the shares
of Common Stock as quoted on the NASDAQ Capital Market for the trailing 14
trading days immediately preceding the applicable investment
date.  The price of shares of Common Stock purchased in the open
market will be the average purchase price of such shares.  In the
event that the purchase of shares of Common Stock is fulfilled by a combination
of the Corporation’s authorized and unissued shares, the Corporation’s treasury
stock and open market purchases or any combination thereof, the price will be an
average of these prices.  Common Stock purchased other than from the
Corporation pursuant to the Plan will be purchased by agents independent of the
Corporation and its affiliates.  Neither the Corporation nor any of
its affiliates will exercise any direct or indirect control or influence over
the times when the prices at which, or the manner in which, such shares will be
purchased.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Shares resulting from dividend
reinvestment will be issued at a discount to the price as so
determined.  Initially, we intend to issue such shares at a 5%
discount to this market price.  The Corporation reserves the right to
change or eliminate the discount at any time.  The discount will not
apply to shares purchased through optional cash purchase
contributions.

     

    The timing of purchases on the open
market will be at the sole discretion of the Plan Administrator, but will
generally be effected within a 30-day period after the dividend payment
date.  Neither the Corporation nor any shareholder will have any
authority or power to direct the time or price at which shares may be purchased
or the selection of the broker or dealer through or from whom purchases are to
be made.  The Plan Administrator may delay any or all purchases beyond
the 30-day period if necessary under federal securities laws.

     

    To the extent we fund the Plan with
shares of our Common Stock issued directly by us from authorized but unissued
shares or treasury shares, the dividends payable to participants will be
retained by us as consideration for such shares.

     

             
  In the event applicable law or the closing of securities markets
requires temporary curtailment or suspension of open market purchases of the
shares of our Common Stock, the Plan Administrator is not accountable for its
inability to make purchases at such time.  If shares of our Common
Stock are not available for purchase for a period of longer than 30 days from
the prior dividend payment date, the Plan Administrator will promptly mail to
each participant a check in the amount of any unapplied funds in the
participants’ accounts.

     

    In the event that you elect to make
optional cash purchases, the Corporation may determine to combine your payments
with funds from your cash dividends for use in purchasing shares as described
above.

     

    7.    
 DIVIDEND REINVESTMENT

     

    The Plan
allows shareholders to invest cash dividends and to make optional contributions
of cash to purchase shares of the Corporation’s Common
Stock.  Participants in the Plan who would otherwise receive regular
dividend checks from the Corporation, authorize the Plan Administrator to use
the amount of the dividend to which they are entitled to purchase whole and
fractional shares of Common Stock which are then credited to the participant’s
account.  Dividends on the shares of Common Stock credited to a
participant’s account under the Plan will also be reinvested, thereby
compounding a participant’s investment.

     

    The
purchase price for shares of Common Stock purchased through dividend
reinvestment pursuant to the Plan initially will be at a 5% discount to the
market price as outlined in Section 6 above.

     

    The
number of shares that will be purchased using a participant’s cash dividends
will depend on the amount of those dividends and the applicable purchase price
of the shares.  A participant’s account will be credited with the
number of shares (including any fractional shares computed to four decimals)
that results from dividing the amount of dividends to be invested by the
applicable purchase price.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.  OPTIONAL
CASH PURCHASE CONTRIBUTIONS

     

    All
eligible shareholders who have submitted a signed authorization card to the Plan
Administrator not later than the sixth day prior to the 15th business day of the
first calendar month in which the participant wishes to invest in Common Stock
by means of an optional cash payment may do so.  Each calendar month
the Plan Administrator will apply any optional cash payment in good funds timely
received from a participant (that is received by the Plan Administrator and
cleared by the sixth day prior to the 15th business day of the calendar month in
which it is to be invested) to the purchase of our Common Stock for the account
of the participant on the following investment date, if such Common Stock is
purchased from the Corporation, and on, or as soon as determined by the Plan
Administrator after, such investment date if such Common Stock is purchased on
the open market.

    

    A
participant may not make optional cash payments of less than $100 per calendar
month or of more than $50,000 in any calendar year.  In the event that
a participant delivers an optional cash payment in amounts under or exceeding
the specified limits, the Plan Administrator will invest only that portion, if
any, that complies with such investment limitation and will return any
remainder.  The minimum and maximum amounts of optional cash purchases
may be changed (or the optional cash payment feature may be eliminated) at the
discretion of the Corporation’s Board of Directors.

    

    Optional
cash payments will be invested each month.  The investment date for
optional cash payments is the 15th day
of each calendar month or, if such day is not a business day for the
Corporation, the first business day for the Corporation immediately following
that date will be the investment date.

    

    The
record date for optional cash purchases will be the sixth day prior to the
investment date.  The Plan Administrator must be in receipt of good
funds on or before the record date in order for such funds to be invested as an
optional cash payment on the next investment date.  Payments may be
made by check made payable to the Plan Administrator.  No interest
will be paid by the Corporation or the Plan Administrator on optional cash
payments held pending investment.  Therefore, although optional cash
payments may be made at any time, it is advisable to transmit such payments
shortly before the sixth day prior to the applicable investment
date.  In order for payments to be invested on the investment date, in
addition to the receipt of good funds, the Plan Administrator must be in receipt
of an authorization card.

    

    Optional
cash payments received by the Plan Administrator which do not clear until after
the record date for a particular investment date will be applied to purchase our
Common Stock on the next succeeding investment date for optional cash payments,
provided, however, that such payments will be returned to a participant upon
written request to the Plan Administrator by such participant received prior to
the record date for the next succeeding investment date.

    

    Shares
purchased using optional cash payments will not be subject to a
discount.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    9.    COST
TO PARTICIPANTS

     

    The
Corporation will bear all costs of administration of the
Plan.  Participants will incur no brokerage commissions or service
charges in connection with purchases for shares of the Corporation’s Common
Stock effected under the Plan.

     

     

    10.  ACCOUNT
STATEMENTS

     

    Each
participant will receive from the Plan Administrator as soon as practicable
after completion of each investment for a participant’s account an account
statement describing cash dividends and any additional cash purchases, the
number of shares purchased, the price per share and the total shares accumulated
under the Plan for that participant.

     

     

    11. 
ELIGIBILITY

     

    All
shareholders of record of the Corporation’s Common Stock are eligible to
participate in the Plan.  Beneficial owners of shares of the
Corporation’s Common Stock whose shares are registered in names other than their
own name may participate by requesting that their broker or nominee transfer
their shares into their own name.  The right to participate in the
Plan is not transferable to another person apart from a transfer of a
participant’s shares of the Corporation’s Common Stock.

     

     

    12.  ENROLLMENT

     

    To enroll
in the Plan, shareholders of record interested in participating in the Plan must
complete an authorization card and submit it to the Plan Administrator not later
than (a) the record date of the first dividend to be invested in shares of
Common Stock for such participant pursuant to the Plan and (b) the sixth day
prior to the 15th
business day of the first calendar month in which the participant wishes to
invest in shares of Common Stock by means of an optional cash payment in
accordance with Section 8.  An eligible shareholder may enroll in the
Plan at any time.  Authorization cards not received within the time
period specified herein may result in a deferral of participation until the next
dividend payment date.  Participation in the Plan will apply to all
shares that are registered to a participant at the time of enrollment plus all
shares that are acquired while the authorization remains in
effect.  In the event that a shareholder is already a participant in
the Plan, a new authorization card is not required in order to receive the
benefit of the amendment to the Plan that will enable participants to receive a
5% discount on the purchase of shares made using reinvestment of cash
dividends.

     

    The
Corporation or the Plan Administrator may terminate, for whatever reason at any
time as it may determine in its sole discretion, a participant’s participating
in the Plan upon mailing a notice of termination to the participant at his
address as it appears on the Plan Administrator’s records.  Upon
termination, a participant will receive certificates for the whole shares of
Common Stock credited to his or its account unless the participant has requested
that all or any part of such shares be sold and the proceeds of the sale be
delivered in cash.  Fractional shares credited to a terminating
account will be paid in cash at the then current market price.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    A
participant’s participation in the Plan will be terminated by the Plan
Administrator upon receipt of notice, in writing, of such participant’s death
from the participant’s executor or legal representative.

     

    13.  TAXATION
MATTERS

     

    In
general, a participant in the Plan will have the same federal and state income
tax obligations with respect to dividends credited to his or its account under
the Plan as other shareholders who do not elect to participate in the Plan and,
instead, receive cash dividends.  A participant is treated for income
tax purposes as having received, on the dividend date, a dividend in the amount
equal to the fair market value of the shares of Common Stock credited to his or
its account under the Plan even though that amount was not actually received by
the participant in cash but, instead, was applied to the purchase of additional
shares for his or its account.  In addition, any brokerage commissions
and service charges paid by the Corporation on behalf of the participant are
deemed to constitute dividend income by the Internal Revenue
Service.  Such amounts, if any, will be included on any annual
information return filed with the Internal Revenue Service, a copy of which will
be sent to the participant.

     

    Shareholders
who participate in the Plan and purchase shares at a discount  will be
treated as having a distribution.  The amount of the distribution to
the participant will be the fair market value of the Corporation’s Common Stock
received on the date of the distribution.  For example, if a
shareholder would have received a cash dividend of $95 but elected to reinvest
the dividend and purchase stock at the 5% discount, the taxable dividend would
be $100 representing the fair market value of the stock received on the
distribution date.

     

    The above
summary is provided for your general information, however, it does not
constitute tax advice and does not purport to be complete or to describe the
consequences that may apply to your personal circumstances.  You
should consult with your tax accountant or personal tax advisor regarding the
effect of participation in the Plan on your personal tax situation.

     

    14.  CERTIFICATES

     

    Shares
purchased for a participant’s account under the Plan will normally be held by
the Corporation, without charge.  Participants desiring to receive a
certificate or certificates for whole shares credited to their account may
request them from the Plan Administrator.  The number of shares of
Common Stock credited to an account under the Plan will be shown on the
participant’s account statement.

     

    15.  VOTING
OF SHARES

     

    Shares of
the Corporation’s Common Stock credited to a participant’s account under the
Plan (other than fractional shares) and held of record on any applicable record
date for a vote will be automatically added to the shares covered by the proxy
sent or its other shares of the Corporation’s Common Stock and may be voted by
such shareholder.  The Plan Administrator will forward any proxy
solicitation materials relating to the shares of Common Stock held by the Plan
to the participating shareholder.  If the proxy card is returned
properly signed and marked for voting, all whole shares held for the participant
under the Plan will be voted in the same manner as the shares owned directly by
the participant. The whole number of shares held under the Plan may also be
voted in person at a meeting.  Shares for which no voting directions
are received will not be voted.  If the proxy card is not returned or
if it is returned unsigned, none of the participant’s shares will be voted
unless the participant votes in person.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    16.  FRACTIONAL
SHARES

     

    While you
are a participant in the Plan, the entire amount of your dividend payment will
be used to purchase shares of our Common Stock.  If the amount is not
sufficient to purchase an exact number of whole shares, your account will be
credited with a fractional share (calculated to four decimal
places).  A fractional share will earn dividends for you, in
proportion to the size of the fraction just as full shares do.

     

    17.  WITHDRAWALS
FROM THE PLAN

     

    A
participant may withdraw from the Plan at any time and for any reason simply by
sending written termination notice to the Plan Administrator which must be
received no later than five business days’ prior to the next dividend record
date.  Upon receipt of the termination notice, certificates for the
full shares held in the participant’s account will be issued in the
participant’s name and forwarded to the participant.  Promptly after
termination, a terminating participant will receive a check in lieu of any
fractional shares held in the participant’s account at the time of termination
representing the cash settlement value at the then current market price of
Corporation’s Common Stock.

     

    18.  QUESTIONS
AND CORRESPONDENCE

     

    Please
direct all questions regarding the Plan to:

     

    Registrar
and Transfer Company

    10
Commerce Drive

    Cranford,
NJ 07016

    Telephone:  800-368-5948

     

    19.  TERMS
AND CONDITIONS

     

    (a)           Stock Dividends, Stock Splits,
Rights.  Any stock dividends or stock splits distributed on
shares Corporation’s Common Stock credited to a participant’s account under the
Plan, will be credited to the participant’s account.  Stock dividends
or split shares distributed on shares registered in a participant’s name will be
mailed directly to the participant in the same manner as to shareholders not
otherwise participating in the Plan.  In the event that the
Corporation makes available to its shareholders rights to purchase additional
shares or securities, participants under the Plan will receive a subscription
warrant for all such rights directly from the Corporation

     

    (b)           Pledge or Assignment of Plan
Shares.  Shares credited to the account of a participant (those
registered in the name of the Plan Administrator or its nominee) may not be
pledged or assigned and any such purported pledge or assignment will be
void.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Limitation of
Liability.  Neither the Corporation nor the Plan Administrator,
will have any responsibility beyond the exercise of ordinary care for any action
taken or omitted pursuant to this agreement; nor will they have any duties,
responsibilities or liabilities except as are expressly set forth herein; nor
will they be liable for any act done in good faith or for any good faith
omission to act; nor will they have any liability in connection with an
inability to purchase shares or with respect to the timing or the price of any
purchase.

     

     

    (d)           Amendment and Termination of the
Plan. The Corporation reserves the right to suspend, amend or terminate
the Plan or the participation in the Plan by any participant, at any
time.  Participants affected by such action will receive notice of any
such suspension, amendment or termination who will at all times have the right
to withdraw from the Plan.  The Corporation’s right to amend the Plan
includes the right to increase or decrease the minimum and maximum amounts of
optional cash payments which may be made under the Plan.  Revisions in
such minimum and maximum amounts will only be made upon 30 days’ prior notice to
participants.  The Corporation’s right to amend the Plan also includes
the right to change the pricing discount, if any.

     

     

    (e)           Interpretation; Governing
Law.  The Plan will be interpreted and regulated by the
Corporation and the Corporation’s interpretations will be
conclusive.  The Plan and the authorization card signed by the
participant (which is deemed a part of the Plan) and the participant’s account
will be governed by and construed in accordance with the laws of the State of
New Jersey.ex101to8k07883_06022010.htm

Exhibit 10.1

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is effective as of June 1, 2010, by and among General Employment Enterprises, Inc., an Illinois corporation (the “Company”), Triad Personnel Services, Inc., an Illinois corporation (“Triad”), and On-Site Services, Inc., a North Carolina corporation (the “Selling Shareholder”).

 

R E C I T A L S:

 

WHEREAS, the Selling Shareholder, Thomas Bean, the Company and Triad have entered into that certain Asset Purchase Agreement, effective as of June 1, 2010 (the “Asset Purchase Agreement”), which Asset Purchase Agreement provides, among other things, for the sale of certain of the assets of the Selling Shareholder to Triad;

 

WHEREAS, in connection with the Asset Purchase Agreement, the Company agreed to issue to the Selling Shareholder that number of shares, subject to adjustment, of its common stock, no par value (the “Common Stock”), equal to $600,000 divided by the average of the closing price for the Company’s Common Stock on the NYSE Amex Stock Exchange for the 20 consecutive trading days immediately prior to the second trading prior to the Closing of the Asset Purchase Agreement; and

 

WHEREAS, as a condition to its willingness to enter into the Asset Purchase Agreement, the Selling Shareholder has required that certain matters be agreed and set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

 

Article 1

DEFINITIONS

 

As used herein, the following terms shall have the following respective meanings:

 

1.1           “Affiliate” of a specified Person means a Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person.

 

1.2           “Agreement” shall have the meaning set forth in the first paragraph of this Agreement.

 

1.3           “Asset Purchase Agreement” shall have the meaning set forth in the Recitals.

 

1.4           “Closing” shall have the meaning set forth in the Asset Purchase Agreement.

 

1.5           “Commission” shall mean the U.S. Securities and Exchange Commission or any other successor federal agency at the time administering the Securities Act.

 

  

  

  

 

1.6           “Common Stock” shall have the meaning set forth in the Recitals.

 

1.7           “Company” shall have the meaning set forth in the Recitals.

 

1.8           “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

1.9           “Holders” shall mean and include the Selling Shareholder and any permitted transferee thereof who holds Registrable Securities of record.

 

1.10         “Indemnified Party” shall have the meaning set forth in Section 5.3.

 

1.11         “Indemnifying Party” shall have the meaning set forth in Section 5.3.

 

1.12         “Person” shall mean an individual, corporation, partnership, limited liability company, association, trust, unincorporated organization or other entity.

 

1.13         “Register,” “registered” and “registration” refer to a registration effected by preparing and filing with the Commission a registration statement in compliance with the Securities Act, and the declaration or ordering by the Commission of the effectiveness of such registration statement.

 

1.14         “Registrable Securities” means, with respect to each Holder, any and all shares of Common Stock that are issued under the terms of the Asset Purchase Agreement, until the earliest to occur of the date on which (i) the resale of such shares of Common Stock has been registered pursuant to the Securities Act and such shares of Common Stock have been disposed of in accordance with the registration statement relating to such resale; and (ii) the entire amount of the Registrable Securities held by such Holder may be sold in a single sale pursuant to Rule 144 of the Securities Act.  For the avoidance of doubt, the term “Registrable Securities” shall exclude in all cases, however, such shares of Common Stock (i) following their sale by a Holder to the public pursuant to a registered offering or pursuant to Rule 144 or (ii) sold in a private transaction in which the Holder’s registration rights under this Agreement are not assigned.

 

1.15         “Registration Expenses” shall mean all reasonable and customary expenses incurred by the Company in complying with Articles 2 and 4 hereof, including, without limitation, all registration, qualification and Commission, National Association of Securities Dealers, Inc., stock exchange and other filing fees, printing expenses, duplication expenses relating to copies of any registration statement or prospectus delivered to any Holders, escrow fees, fees and disbursements of legal counsel for the Company, fees and disbursements of the Company’s accountants and blue sky fees and expenses.  Registration Expenses shall be distinct from Selling Expenses.

 

1.16         “Rule 144” shall mean Rule 144 under the Securities Act or any other successor rule or regulation then in effect.

 

  

  

  

 

1.17         “Securities Act” shall mean the Securities Act of 1933, as amended, or any successor federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

1.18         “Selling Expenses” shall mean all underwriting, selling broker or dealer manager fees, discounts and selling commissions applicable to the Registrable Securities registered on behalf of the Holders.

 

1.19         “Selling Shareholder” shall have the meaning set forth in the first paragraph of this Agreement.

 

1.20         “Triad” shall have the meaning set forth in the Recitals.

 

 

Article 2

COMPANY REGISTRATION

 

2.1           Notice of Registration to Holders.  If at any time or from time to time from and after the date the Company issues the shares of Common Stock to the Selling Shareholder pursuant to the terms of the Asset Purchase Agreement, the Company shall determine to register any of its securities, either for its own account or the account of any security holder or holders, other than (i) a registration relating solely to employee benefit plans on Form S-8 (or any successor form) or relating to a dividend reinvestment plan, stock option plan or other compensation plan, (ii) a registration on Form S-4 (or any successor form) or other registration in connection with mergers, acquisitions, exchange offers or similar transactions, (iii) a registration on any form that does not permit secondary sales or (iv) a registration relating solely to a  subscription offering or a rights offering, the Company will:

 

(a)           promptly give to the Holders written notice thereof; and

 

(b)           include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all of the Registrable Securities specified in a written request, made within 15 days after receipt of such written notice from the Company described in Section 2.1(a), by the Holders; provided, however, that if the Company is effecting a registration pursuant to a demand request of a shareholder other than a Holder, then the Holders’ right to request registration of their Registrable Securities shall be subject to the contractual rights of such shareholder making the demand request.

 

2.2           Underwriting.

 

(a)           If the registration of which the Company gives notice is for an offering involving an underwriting, the Company shall so advise the Holders as part of the written notice given pursuant to Section 2.1(a).  In such event, the right of the Holders to registration pursuant to this Article 2 shall be conditioned upon a Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.  The Holders (together with the Company) shall enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting solely by the Company; provided, however, that the liability of a Holder thereunder shall in no event exceed the lesser of (i) the Holder’s pro-rata portion of the liability based on the Holder’s shares sold in the offering as compared to the total number of shares sold in the offering, and (ii) an amount equal to the net proceeds from the offering received by such Holder.

 

  

  

  

 

(b)           Notwithstanding any other provision of this Article 2, if the managing underwriter determines that marketing factors require a limitation of the number of shares to be underwritten, the Company shall so advise the Holders, and the number of shares of Common Stock to be included in such registration shall be allocated as follows:  (i) first, for the account of the Company, all shares of Common Stock proposed to be sold by the Company; and (ii) second, for the account of any Holders and any other shareholders of the Company participating in such registration who have contractual rights to be included in such registration similar to the rights of the Holders, the number of shares of Common Stock requested to be included in the registration by such Holders and such other shareholders in proportion, as nearly as practicable, to the respective number of shares that are proposed to be offered and sold by the Holders and such other shareholders at the time of filing the registration statement; provided that, if the Company is effecting a registration pursuant to a demand request of a shareholder, clause (i) of this subsection shall be deemed to cover the shares of Common Stock proposed to be sold by such other shareholder and clause (ii) of this subsection shall include, on a basis pari passu with any shareholders who have contractual rights to be included in such registration similar to the rights of the Holders, any shares proposed to be sold by the Company.   No Registrable Securities or other shares of Common Stock excluded from the underwriting in this Article 2 by reason of the underwriters’ marketing limitation shall be included in such registration.

 

(c)           If a participating Holder disapproves of the terms of any underwriting under this Article 2, such Holder exercising rights pursuant to this Article 2 may elect to withdraw therefrom by written notice to the Company and the managing underwriter.  Any securities excluded or withdrawn from such underwriting shall be withdrawn from such registration; provided that the Company may determine, at its election, to increase, on a pro rata basis for the securities of shareholders then included in the registration (giving effect to the withdrawal), the number of shares of the other shareholders participating in the registration.

 

(d)           The Company shall have the right to terminate or withdraw any registration initiated by the Company under this Article 2 prior to the effectiveness of such registration, whether or not a Holder has elected to include Registrable Securities in such registration.

 

(e)           For the avoidance of doubt, the Selling Shareholder may not request to include in any piggyback registration under this Article 2 any shares of Common Stock (and shall not exercise piggyback rights with respect thereto or request their inclusion as of a later date) until such time as such shares of Common Stock have been issued to the Selling Shareholder by the Company in accordance with the terms of the Asset Purchase Agreement.

 

  

  

  

 

Article 3

EXPENSES OF REGISTRATION

 

All Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to Articles 2 and 4 hereof shall be borne by the Company.  The Holders shall pay all of their own costs and expenses of any sale under this Agreement, including all fees and expenses of any counsel (and any advisers) representing such Holder and any stock transfer taxes.  All Selling Expenses relating to Registrable Securities registered on behalf of a Holder shall be borne by such Holder.

 

Article 4

REGISTRATION PROCEDURES

 

(a)           In the case of each registration effected by the Company pursuant to this Agreement, the Company will keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof.  The Company agrees to use its commercially reasonable efforts to effect or cause such registration to permit the sale of the Registrable Securities covered thereby by the Holders thereof in accordance with the intended method or methods of distribution thereof described in such registration statement.  In connection with any registration of any Registrable Securities, the Company shall:

 

(i)           prepare and file with the Commission a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective;

 

(ii)          prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such registration statement pursuant to the applicable rules and regulations of the Commission and the instructions applicable to the form of such registration statement (provided, however, that the Company shall not be obliged to maintain the effectiveness of such registration statement longer than through the earlier of (A) six months following the effective date of such registration statement and (B) such time as all Registrable Securities registered thereunder have been sold pursuant to such registration statement), and furnish to the Holders of the Registrable Securities covered thereby copies of any such supplement or amendment prior to its use and/or filing with the Commission;

 

(iii)         promptly notify the Holders whose Registrable Securities are to be included in a registration statement hereunder, the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold, and confirm such advice in writing, (A) when such registration statement or the prospectus included therein or any prospectus amendment or supplement or post-effective amendment has been filed and, with respect to such registration statement or any post-effective amendment, when the same has become effective, (B) of the issuance by the Commission of any stop order suspending the effectiveness of such registration statement or the initiation of any proceedings for that purpose, (C) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (D) of any request by the Commission for any amendment or supplement to a registration statement or related prospectus or related information or (E) if, at any time when a prospectus is required to be delivered under the Securities Act, such registration statement or prospectus, or any document incorporated by reference in any of the foregoing, contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made.  In the case of clause (E), the Company shall promptly prepare a supplement or amendment to such registration statement to correct such untrue statement or omission;

 

  

  

  

 

(iv)         use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such registration statement or any post-effective amendment thereto or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any Registrable Securities included in such registration statement for sale in any jurisdiction at the earliest practicable date;

 

(v)          furnish to each Holder of Registrable Securities to be included in such registration statement hereunder, each placement or sales agent, if any, therefor and each underwriter, if any, thereof, without charge, a conformed copy of such registration statement and any amendment and supplement thereto and such number of copies of the prospectus included in such registration statement (including each preliminary prospectus, any summary prospectus and any free writing prospectus), and any amendment or supplement thereto, as such Holder, agent, if any, and underwriter, if any, may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Holder, sold by such agent or underwritten by such underwriter and to permit such Holder, agent and underwriter to satisfy the prospectus delivery requirements of the Securities Act;

 

(vi)         use its commercially reasonable efforts to (A) register or qualify the Registrable Securities to be included in such registration statement under such other securities laws or blue sky laws of such states of the United States or the District of Columbia as may be reasonably requested by the Holders of a majority of such Registrable Securities participating in such registration, each placement or sales agent, if any, therefor or the managing underwriter, if any, thereof, (B) keep such registrations or qualifications in effect and comply with such laws at all times during the period described in Section 4(a)(ii) above, and (C) take such actions as may be reasonably necessary to enable such Holder, agent, if any, and underwriter, if any, to consummate the disposition in such jurisdictions of such Registrable Securities; provided, however, that in order to fulfill the foregoing obligations under this Section 4(a)(vi), the Company shall not (unless otherwise required to do so in any jurisdiction) be required to (1) qualify generally to do business as a foreign company or a broker-dealer, (2) execute a general consent to service of process or (3) subject itself to taxation;

 

  

  

  

 

(vii)           furnish, at the request of the Holders of a majority of such Registrable Securities participating in such registration, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated as of such date, of counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders, addressed to the underwriters, if any, and to such Holders and (ii) a letter, dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders, addressed to the underwriters, if any, and, if permitted by applicable accounting standards, to such Holders; and

 

(viii)           otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission in connection with any registration hereunder.

 

(b)           The Company may require each Holder of Registrable Securities as to which any registration is being effected to furnish in writing to the Company such information regarding such Holder and such Holder’s method of distribution of such Registrable Securities as the Company may from time to time reasonably request or as is required to be included in any registration statement filed pursuant to the terms of this Agreement.  Each such Holder agrees to notify the Company as promptly as practicable of any inaccuracy or change in information previously furnished by such Holder to the Company or of the occurrence of any event as a result of which any prospectus relating to such registration contains an untrue statement of a material fact regarding such Holder or the distribution of such Registrable Securities or omits to state any material fact regarding such Holder or the distribution of such Registrable Securities required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and promptly to furnish to the Company any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain, with respect to such Holder or the distribution of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made.

 

(c)           Each of the Holders shall comply with the provisions of the Securities Act with respect to disposition of the Registrable Securities to be included in any registration statement filed by the Company.

 

(d)           Notwithstanding anything to the contrary, in connection with any offering of securities of the Company (including without limitation any offering contemplated by Article 2 of this Agreement), each Holder agrees that if such shareholder’s Registrable Securities are included in the applicable registration, it will consent and agree to comply with any “hold back” restriction relating to shares of Common Stock or any other securities of the Company then owned by such Holder, that may be reasonably requested by the underwriter(s) or placement or other selling agent(s) of such offering, not to exceed one hundred eighty (180) days, provided that the foregoing limitations shall not apply if all other parties for which shares are  being registered in connection with such offering, and all executive officers and directors of the Company, are not subject to similar restrictions.

 

  

  

  

 

Article 5

INDEMNIFICATION

 

5.1           The Company will indemnify each Holder, each of its officers, directors, partners and affiliates, such Holder’s legal counsel and independent accountants, if any, each person controlling such Holder within the meaning of Section 15 of the Securities Act, each underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act against all claims, losses, damages, liabilities and expenses (including reasonable attorney fees)(or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement or prospectus, or any amendment or supplement thereto, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of any rule or regulation promulgated under the Securities Act or any state securities laws applicable to the Company and relating to action or inaction by the Company in connection with any such registration, qualification or compliance, and will reimburse each such Holder, each of its officers, directors and partners, such Holder’s legal counsel and independent accountants, each such underwriter and each person who controls any such underwriter for any legal and other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such expense, claim, loss, damage, liability or action arises out of or is based on any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by such Holder expressly for use in such registration statement or prospectus, or any amendment or supplement thereto.

 

5.2           Each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being effected, severally indemnify the Company, each of its directors, officers, partners and affiliates, their respective legal counsel and independent accountants, each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, and each other such Holder, each of its officers, directors, partners, legal counsel and independent accountants, if any, and each person controlling such Holder within the meaning of Section 15 of the Securities Act, against all claims, losses, damages, liabilities and expenses (including reasonable attorney fees) (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement or prospectus, or any amendment or supplement thereto, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, such Holders, such directors, officers, partners, legal counsel, independent accountants, underwriters and control persons for any legal and other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement or prospectus or amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such Holder regarding such Holder and/or such Holder’s method of distribution expressly for use in such registration statement or prospectus, or any amendment or supplement thereto.

 

  

  

  

 

5.3           Each party entitled to indemnification under this Article 5 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld, conditioned or delayed).  The Indemnified Party may participate in such defense at such party’s expense; provided, however, that the Indemnifying Party shall bear the expense of such defense of the Indemnified Party if representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interest.  The failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless and only to the extent such failure is materially prejudicial to the ability of the Indemnifying Party to defend the action.  No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation.

 

5.4           If the indemnification provided for in Section 5.1 or 5.2 is unavailable or insufficient to hold harmless an Indemnified Party, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party as a result of the expenses, claims, losses, damages or liabilities (or actions or proceedings in respect thereof) referred to in Section 5.1 or 5.2, in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Holders of Registrable Securities on the other hand in connection with statements or omissions which resulted in such expenses, claims, losses, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Holders of Registrable Securities and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.4 were to be determined by pro rata allocation (even if all Holders of Registrable Securities were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the first sentence of this Section 5.4.  The amount paid by an Indemnified Party as a result of the expenses, claims, losses, damages or liabilities (or actions or proceedings in respect thereof) referred to in the first sentence of this Section 5.4 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any claim, action or proceeding which is the subject of this Section 5.4.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The obligations of Holders of Registrable Securities to contribute pursuant to this Section 5.4 shall be several in proportion to the respective amount of Registrable Securities sold by them pursuant to a registration statement.

 

  

  

  

 

Article 6

TRANSFER OF REGISTRATION RIGHTS

 

The rights to cause the Company to register Registrable Securities under Sections 2.1 and 2.2 of this Agreement, together with all related rights and obligations, may be assigned by a Holder to an Affiliate of such Holder; provided, however, that (A) the right to cause the Company to register Registrable Securities under Section 2.1 may only be held by one person or entity with respect to the Registrable Securities owned by him or it, (B) the transferor shall furnish to the Company written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned prior to such transfer and (C) such transferee shall agree in writing to be subject to all applicable restrictions set forth in this Agreement.  In each case, such rights may only be transferred together with the underlying Registrable Securities in a transfer permitted by the Securities Act and applicable state securities laws.  Subject to the foregoing provision, any such permitted transferee or assignee shall be deemed a Holder hereunder.

 

Article 7

MISCELLANEOUS

 

7.1           Governing Law; Forum.  The laws of the State of New York shall govern the interpretation, validity and performance of the terms of this Agreement, regardless of the law that might be applied under principles of conflicts of law.  Each of the parties to this Agreement consents to submit to the personal jurisdiction of any state or federal court sitting in the State of New York, in any action or proceeding arising out of or relating to this Agreement, agrees that all claims in respect of the action or proceeding may be heard and determined in any such court, and agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  Each of the parties to this Agreement agrees not to assert in any action or proceeding arising out of relating to this Agreement that the venue is improper, and waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.  Each of the parties hereto waives any right to request a trial by jury in any litigation with respect to this Agreement and represents that counsel has been consulted specifically as to this waiver.

 

  

  

  

 

7.2           Effectiveness; Termination.

 

(a)           This Agreement shall become effective upon the Closing of the transactions under the Asset Purchase Agreement.  In no event shall this Agreement be effective, nor shall any rights or obligations hereunder apply, prior to the Closing.

 

(b)           This Agreement and all rights and obligations hereunder (other than Article 5 which shall survive) shall terminate, with respect to each Holder, upon the earlier of (i) two (2) years following the date of issuance of shares of Common Stock to such Holder under the Asset Purchase Agreement, or (ii) at such time as such Holder no longer holds any Registrable Securities.

 

7.3           Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors and assigns of each of the parties hereto and shall inure to the benefit of and be binding upon each Holder of any Registrable Securities.

 

7.4           Entire Agreement.  This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof.

 

7.5           Notices.  All notices, requests, consents and other communications hereunder shall be made in writing and shall be deemed given (i) when made if made by hand delivery, (ii) one business day after being deposited with an overnight courier if made by courier guaranteeing overnight delivery, (iii) on the date indicated on the notice of receipt if made by first-class mail, return receipt requested or (iv) on the date of confirmation of receipt of transmission by facsimile, addressed as follows:

 

(a)           if to the Company, at

 

General Employment Enterprises, Inc.

One Tower Lane, Suite 2200

Oakbrook Terrace, Illinois 60181

Facsimile: (630) 954-0595

Attention:  General Counsel

with a copy to:

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, NY 10022

Facsimile:  (212) 451-2222

Attention:  Robert H. Friedman, Esq.

 

  

  

  

(b)           if to Selling Shareholder, at:

 

WTS Acquisition Inc.

5025 West Lemon Street

Suite 200

Tampa, Florida  33609

Facsimile: (813) 637-2222

Attention: Thomas Bean

with a copy to:

Judson B. Wagenseller, Esq.

11921 Brinley Avenue, Suite 203

Louisville, Kentucky 40243

Facsimile:  (502) 410-6902

7.6           Severability.  The invalidity, illegality or unenforceability of one or more of the provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of this Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

7.7           Titles and Subtitles.  The titles of the articles, sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

 

7.8           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together constitute one instrument.

 

7.9           Reporting.  Parent will use commercially reasonable efforts to file all reports, schedules, forms, statements and other documents required to be filed by it with the Commission under the reporting requirements of the Exchange Act and otherwise continue to comply with the disclosure requirements of Rule 144(c) for reporting issuers.

 

7.10           Amendment and Modification.  This Agreement may be amended, modified or supplemented in any respect only by written agreement by the Company and Holders representing at least a majority of the Registrable Securities, voting together as a single class; provided, that no such amendment shall unfairly discriminate against a particular Holder relative to the other Holders.  Any action taken by the Holders, as provided in this Section 7.10, shall bind all Holders.

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures.

 

	  	
GENERAL EMPLOYMENT ENTERPRISES, INC.

	  	  
	  	  
	  	
By:

	

/s/ Salvatore J. Zizza

	  	  	
Name:

	
Salvatore J. Zizza

	  	  	
Title:

	
Chief Executive Officer

	  	
TRIAD PERSONNEL SERVICES, INC.

	  	  
	  	  
	  	
By:

	

/s/ Salvatore J. Zizza

	  	  	
Name:

	
Salvatore J. Zizza

	  	  	
Title:

	
Chief Executive Officer

	  	
ON-SITE SERVICES, INC.

	  	  
	  	  
	  	
By:

	

/s/ Thomas J. Bean

	  	  	
Name:

	
Thomas J. Bean

	  	  	
Title:

	
President

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