Document:

2003 Non-Employee Director Equity Compensation Plan

Exhibit 4.1 
EVEREST RE GROUP, LTD. 
 
2003 NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION PLAN 
 

EVEREST RE GROUP, LTD. 
2003 NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION PLAN 
 
Section 1. Establishment and Purpose 
 
The Everest Re Group, Ltd. 2003 Non-Employee Directors Equity Compensation Plan (the “Plan”) has been established by Everest Re
Group, Ltd., a Bermuda company (the “Company”), to promote the interests of the Company and its shareholders by enhancing the Company’s ability to attract and retain the services of experienced and knowledgeable directors and by
encouraging such directors to acquire an increased proprietary interest in the Company through the ownership of Common Shares. The Common Shares can be acquired through grants of stock in lieu of cash-based retainer fees and through grants of Option
Awards. 
 
Section 2. Definitions 
 
The following terms, used herein, shall have the meaning
specified: 
 
(a) “Award” means
the Retainer Award or an Option Award granted to any Eligible Director under the Plan. 
 
(b) “Award Date” means the date on which an Award under the Plan is granted. 
 
(c) “Award Agreement” means an agreement described in Section 8 hereof entered into between the Company and a
Participant, setting forth the terms and conditions applicable to the Award granted to the Participant. 
 
(d) “Board” means the Board of Directors of the Company as it may be comprised from time to time. 
 
(e) Unless otherwise defined in an Award Agreement,
“Cause” shall mean any one of the following: (i) the willful engaging by the Participant in continuing or repeated conduct which is demonstrably and materially injurious to the Company or its affiliates, (ii) commission by the
Participant of an act that involves theft, fraud or dishonesty (whether or not involving the Company, its affiliates or Participant’s duties at or relating to the Company or its affiliates), (iii) the Participant’s continuing or repeated
material failure to abide by or comply with the internal policies or procedures of the Company or its affiliates (as may be applicable to Directors) or any non-compete or confidentiality agreement with the Company or its affiliates, or (iv)
conviction of any crime that constitutes a felony (whether or not involving the Company, its affiliates or the Participant’s duties at or relating to the Company or its affiliates). 
 
(f) “Change in Control” shall be as defined in Section 10. 
 
(g) “Code” means the Internal Revenue Code
of 1986, and any successor statute, and the regulations promulgated thereunder, as it or they may be amended from time to time. 
 
(h) “Committee” means the Committee as defined in Section 12. 
 
(i) “Common Shares” means common shares of
the Company, par value $.01 per share, or any security of the Company issued in substitution, exchange or lieu thereof. 
 
(j) “Date of Termination” means the last day on which a Participant serves as a Director. 
 
(k) “Director” means a member of the Board.

 
(l) “Effective Date” means the
Effective Date as defined in Section 12(e). 
 
(m)
“Eligible Director” means each Director who is not an Employee of the Company. 

 
(n)
“Employee” means officers and employees of the Company or a Subsidiary, and excludes directors who are not also officers or employees of the Company or a Subsidiary. “Employee” includes consultants and advisors that
provide bona fide services (other than services as a director) to the Company or a Subsidiary, provided that such services are not in connection with the offer or sale of securities of the Company or a Subsidiary in a capital-raising transaction.

 
(o) “Exchange Act” means the
Securities Exchange Act of 1934, and any successor statute, as it may be amended from time to time. 
 
(p) “Exercise Price” means a purchase or exercise price established by the Committee at the time an Option is granted.

 
(q) “Fair Market Value” means,
unless otherwise provided in the Award Agreement, the average of the highest and lowest sale price of Common Shares as reported on the Composite Transaction Tape of the New York Stock Exchange (or on such other exchange, if any, on which the Common
Shares are traded) on the relevant date, or if no sale of Common Shares are reported for such date, the next preceding day for which there is a reported sale. If Common Shares are not traded on any such exchange, Fair Market Value shall be as
determined in the Award Agreement, or as may be determined in good faith by the Committee. In no event, shall the Fair Market Value be less than the prevailing par value of a Common Share to be issued under the Plan. 
 
(r) “Option” means a non-qualified stock
option Award granted under the Plan that entitles the Participant, for a certain period of time, to purchase Common Shares at an Exercise Price established by the Committee. 
 
(s) “Participant” means any Eligible Director who has been granted an Award pursuant to this
Plan. 
 
(t) “Plan Year” shall
mean each calendar year, with the first Plan Year beginning on the Effective Date and ending on December 31, 2003. 
 
(u) “Retainer Fee” means the annual compensation fee for services to be rendered as a Director to be paid to each
Eligible Director as determined annually by the Board in its sole discretion. Such fees are to be paid in cash, or in stock at the election of each Eligible Director as provided in Section 5 of this Plan, on a quarterly basis (or other period as may
be determined by the Board). Cash payments will become payable as of the last business day of the applicable Plan Year quarter. For Retainer Fees to be paid in the form of stock, the payment date shall be the first business day of the next following
Plan Year quarter. 
 
(v) “Section
16” means Section 16 of the Exchange Act, and any successor statutory provision, and the rules promulgated thereunder, as it or they may be amended from time to time. 
 
(w) “Subsidiary” means any corporation in which the Company, directly or indirectly,
controls 50% or more of the total combined voting power of all classes of such corporation’s common equity. 
 
Section 3. Eligibility 
 
Persons eligible for Awards under the Plan shall consist solely of Eligible Directors. 
 
Section 4. Awards 
 
The Eligible Directors shall be eligible to receive any of the types of Awards enumerated in Sections 5 or 6, either singly, in tandem or
in combination with other types of Awards, as provided herein or as the Committee may in its sole discretion determine. Retainer Awards shall only be granted if the Eligible Director elects to waive cash payment of all or a portion of the applicable
Retainer Fees. 
 
Section 5. Retainer Awards 
 
(a) For each Plan Year, each Director who is an Eligible
Director on the first day of that Plan Year shall be entitled to elect to be granted a stock-based “Retainer Award” for the year in lieu of receiving all or a portion of the 

 

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Retainer Fee in cash. The Retainer Award shall be in the form of Common Shares having a Fair Market Value
(as determined on the last day of the applicable Plan Year quarter) equal to the Retainer Fee that would otherwise be paid in cash. 
 
(b) If a Director becomes an Eligible Director during a Plan Year, on a date other than the first day of the Plan Year, he shall be
entitled to elect to be granted a Retainer Award for the remainder of the year in lieu of receiving all or a portion of the applicable Retainer Fee. The Retainer Award shall be in the form of Common Shares having a Fair Market Value (as determined
on the last day of the applicable Plan Year quarter) equal to the Retainer Fee, subject to a pro-rata reduction to reflect the portion of the Plan Year prior to the date on which he becomes an Eligible Director. 
 
(c) Common Shares awarded under this subsection 5(a) shall be
fully vested as of the date of grant. 
 
Section 6.
Discretionary Option Awards. 
 
(a)
Discretionary Option Awards. The Committee may at any time, and from time to time, in its sole discretion, grant an Eligible Director an Option Award (a “Discretionary Option Award”), which shall be subject to the terms and
conditions set forth in subsections (b) and (c) below. 
 
(b) Terms of Option Awards. 
 

	 	(1)	 	An Option Award shall entitle the Director to purchase Common Shares at an Exercise Price equal to the greater of:  

	 	(i)	 	100% of the Fair Market Value of Common Shares as of the Award Date; or (ii) the par value of a Common Share. 

 

	 	(2)	 	Unless otherwise provided by the Committee, the Option Award granted to an Eligible Director shall become exercisable with respect to one-third of the shares covered
by the Option on the first anniversary of the date of grant and with respect to an additional one-third of the shares covered by the Option on each subsequent anniversary; provided, however, that such portion of the Option shall become
exercisable only if such Director’s Date of Termination does not occur prior to the foregoing vesting dates. Notwithstanding any provision of the Plan to the contrary, the foregoing vesting schedule shall be subject to acceleration in the event
of the Participant’s death, disability (as may be determined by the Committee) or in the event of a Change in Control. 

 

	 	(3)	 	An Option Award shall expire on the earlier of: (i) the ten-year anniversary of the Award Date (ii) the three-year anniversary of the Director’s Date of
Termination if termination occurs due to the Director’s death or disability, (iii) the Date of Termination, if such termination of service occurs due to removal for Cause, or (iv) the one-year anniversary of the Director’s Date of
Termination if the termination of service occurs for reasons other than as listed in subsections (ii), or (iii). No Option shall be exercisable following a Director’s Date of Termination except to the extent that the Option is exercisable prior
to, or becomes exercisable as of, such Date of Termination. 

 
(c) Payment of Option Exercise Price. The payment of the Exercise Price of an Option granted under this Section 6 shall be subject to the following: 
 

	 	(1)	 	Subject to the following provisions of this subsection 6(c), the full Exercise Price for Common Shares purchased on the exercise of an Option shall be paid at the
time of such exercise. 

 

	 	(2)	 	The Exercise Price of Common Shares subject to the Option may be paid in cash. At the discretion of the Committee, the purchase price may also be paid by the tender,
by actual delivery or by attestation, of Common Shares owned for at least six months by the holder of the Option (the value of such Common Shares shall be the Fair Market Value on the date of exercise), through a combination of Common Shares and
cash, or through such other means as the Committee determines are consistent with the Plan’s purpose and subject to and in compliance with applicable law. No fractional Common Shares will be issued or accepted. 

 
 

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Section 7. Common Shares
and Other Share-Based Awards Available Under Plan 
 
(a) The Common Shares which may be issued pursuant to an Award under the Plan may be shares currently authorized but unissued or currently held or subsequently acquired by the Company or its subsidiaries, including shares purchased
in the open market or in private transactions. 
 
(b) Subject to the adjustment provisions of Section 9 hereof, the maximum aggregate number of shares that may be delivered to Participants and their beneficiaries under the Plan shall be equal to 500,000 Common Shares and the maximum
number of shares that may be granted to any one Eligible Director in a single calendar year shall be 10,000 shares pursuant to Option Awards and 5,000 shares pursuant to Retainer Awards. 
 
(c) To the extent that any Common Shares covered by an Award are not delivered to a Participant or
beneficiary because the Award is forfeited or canceled, or the Common Shares are not delivered because the Award is settled in cash or used to satisfy the applicable tax withholding obligation, such shares shall not be deemed to have been delivered
for purposes of determining the maximum number of Common Shares available for delivery under the Plan and they shall again be available under the Plan. 
 
(d) If the Exercise Price of any Option granted under the Plan is satisfied by tendering Common Shares to the Company (by either actual
delivery or by attestation), only the number of Common Shares issued net of the Common Shares tendered shall be deemed delivered for purposes of determining the maximum number of Common Shares available for delivery under the Plan. 
 
(e) For the purposes of computing the total number of Common
Shares granted under the Plan, each Option shall be deemed to be the equivalent of the maximum number of Common Shares that may be issued upon exercise of the particular Option. Additional rules for determining the number of Common Shares granted
under the Plan may be adopted by the Committee, as it deems necessary and appropriate. 
 
(f) No fractional Common Shares shall be distributed under the Plan and, instead, the Fair Market Value of such fractional share shall be distributed in cash, with the Fair Market Value determined as
of the date the fractional share would otherwise have been distributable. For purposes of the foregoing sentence, if more than one Award or type of Award under the Plan is to be distributed in Common Shares on a single date, such Common Shares shall
be aggregated prior to determining the number of whole and fractional shares to be distributed. 
 
Section 8. Award Agreements 
 
Each Option Award under the Plan shall be evidenced by an Award Agreement setting forth the number of Common Shares subject to the Award and such other terms and conditions applicable to the Award, as
determined by the Committee, not inconsistent with the terms of the Plan and applicable law. The Committee may, but need not require that the Participant sign a copy of such document. Such document is referred to as the Award Agreement regardless of
whether any Participant signature is required. In the event that the Committee requires that the Participant execute and return the Award Agreement, no person shall have any rights under the Award unless and until the Participant to whom such Award
shall have been granted shall have properly executed and delivered to the Company the Award Agreement; provided, however, the execution and delivery of such an Award Agreement shall not be a precondition to the granting of such Award.
By executing the Award Agreement, or submitting an option exercise form (whether or not the Award Agreement required execution) a Participant shall be deemed to have accepted and consented to any action taken under the Plan by the Committee, the
Board or their delegates. 
 
(a) Award Agreements
shall include the following terms: 
 
(1)
Non-assignability. Unless otherwise specifically provided for by the Committee, a provision that no Option, while vested or unvested, or any other Award, while unvested, be assignable or transferable except by will or by the laws of descent
and distribution and that, during the lifetime of a Participant, the Award shall be exercised, if exercisable, only by such Participant or by his or her guardian or legal representative. 
 

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(2)
Termination of Services. A provision describing the treatment of an Award in the event of the death, disability or other termination of a Participant’s service with the Company, including but not limited to terms relating to the vesting,
time for exercise, forfeiture or cancellation of an Award in such circumstances. Participants who terminate service prior to the satisfaction of applicable conditions and restrictions associated with their Award(s) may be entitled to such Award(s)
as and to the extent determined by the Committee. 
 
(3) Rights as a Shareholder. A provision that a Participant shall have no rights as a shareholder with respect to any Common Shares covered by an Award until the date the Participant becomes the holder of record. Except as
provided in Section 9 hereof, no adjustment shall be made for dividends or other rights, unless the Award Agreement specifically requires such adjustment. 
 
(4) Minimum Exercise. No Option may be exercised for less than the lesser of 50 Common Shares or the full number of shares of
Common Shares for which the Option is then exercisable. 
 
(b) Other Terms. Award Agreements may include such other terms as the Committee may determine are necessary and appropriate to effect an Award to the Participant, including, but not limited to, the term of the Award, vesting
provisions, any requirements for continued service with the Company, any other restrictions or conditions (including performance requirements) on the Award and the method by which restrictions or conditions lapse, the effect on the Award of a change
in control of the Company, the price, amount or value of Awards, and the terms, if any, pursuant to which a Participant may elect to defer the receipt of cash or Common Shares under an Award. 
 
Section 9. Adjustment Provisions 
 
(a) In the event of any change in the outstanding shares of
Common Shares by reason of a stock dividend or split, recapitalization, merger or consolidation (whether or not the Company is a surviving corporation), reorganization, combination or exchange of Common Shares or other similar corporate changes or
an extraordinary dividend paid in cash or property, the number of Common Shares (or other securities) then remaining subject to this Plan, and the maximum number of shares that may be issued annually to anyone pursuant to this Plan, including those
that are then covered by outstanding Awards, shall (i) in the event of an increase in the number of outstanding shares, be proportionately increased and the price for each share then covered by an outstanding Award shall be proportionately reduced,
and (ii) in the event of a reduction in the number of outstanding shares, be proportionately reduced and the price for each share then covered by an outstanding Award shall be proportionately increased. 
 
(b) In the event the adjustments described in clauses (i) and
(ii) of subsection (a) of this Section 9 are inadequate to ensure equitable treatment of any Award holder, then, to the extent permissible under applicable law, the Committee shall make any further adjustments as it deems necessary to ensure
equitable treatment of any holder of an Award as the result of any transaction affecting the securities subject to the Plan or as is required or authorized under the terms of any applicable Award Agreement. 
 
(c) The existence of the Plan and the Awards granted hereunder
shall not affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other capital structure of its business, any merger or consolidation
of the Company, any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Shares or the rights thereof, the dissolution or liquidation of the Company or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding. 
 
Section 10. Change of Control 
 
In the event of a “Change in Control” of the Company (defined below), in addition to any action required or authorized by the terms of an Award Agreement, the Committee may, in its sole discretion, recommend that the Board
take any of the following actions as a result, or in anticipation, of any such event to assure fair and equitable treatment of Participants: 
 

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(a) offer to
purchase any outstanding Award made pursuant to this Plan from the holder for its equivalent cash value, as determined by the Committee, as of the date of the change of control; or 
 
(b) make adjustments or modifications to outstanding Awards as the Committee deems appropriate to maintain
and protect the rights and interests of Participants following such change of control. 
 
Any such action approved by the Board shall be conclusive and binding on the Company and all Participants. 
 
(c) For purposes of this Section, a “Change of Control” shall mean the occurrence of any of the following: 
 

	 	(1)	 	A tender offer or exchange offer whereby the effect of such offer is to take over and control the affairs of the Company, and such offer is consummated for the
ownership of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding voting securities. 

 

	 	(2)	 	The Company is merged or consolidated with another corporation and, as a result of such merger or consolidation, less than seventy-five percent (75%) of the
outstanding voting securities of the surviving or resulting corporation shall then be owned in the aggregate by the former shareholders of the Company, other than affiliates within the meaning of the Exchange Act or any party to such merger or
consolidation. 

 

	 	(3)	 	The Company transfers substantially all of its assets to another corporation or entity that is not a wholly owned subsidiary of the Company.

 

	 	(4)	 	Any person (as such term is used in Sections 3(a)(9) and 13(d)(3) of the Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities of
the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities, and the effect of such ownership is to take over and control the affairs of the Company.

 

	 	(5)	 	As the result of a tender offer, merger, consolidation, sale of assets, or contested election, or any combination of such transactions, the persons who were members
of the Board of the Company immediately before the transaction, cease to constitute at least a majority thereof. 

 
Section 11. General Restrictions 
 
Delivery of Common Shares or other amounts under the Plan shall be subject to the following: 
 
(a) Notwithstanding any other provision of the Plan, the
Company shall have no liability to deliver any Common Shares under the Plan or make any other distribution of benefits under the Plan unless such delivery or distribution would comply with all applicable laws (including, without limitation, the
requirements of the Securities Act of 1933), and the applicable requirements of any securities exchange or similar entity. 
 
(b) To the extent that the Plan provides for issuance of stock certificates to reflect the issuance of Common Shares, the issuance may be
effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange. 
 
Section 12. Operation and Administration 
 
(a) Administration. 
 

	 	(1)	 	The Plan and all Awards granted pursuant thereto shall be administered by a committee of the Board (the “Committee”), which shall initially be the full
Board. The full Board shall remain as the Committee until such time, and times, as the Board, in its sole discretion, designates a lesser number of Board members to serve as the Committee. If the Board designates a Committee of less than the full
Board, such Committee shall not include Eligible Directors. If the Committee is made up of less than the full Board, or for any other reason determined by the full Board, the full Board may take any action under the Plan that would otherwise be the
responsibility of the Committee. 

 
 

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	 	(2)	 	The Committee shall have the authority and discretion to interpret and administer the Plan, to establish, amend and rescind any rules and regulations relating to the
Plan and to determine the terms and provisions of any Award Agreement made pursuant to the Plan. All questions of interpretation with respect to the Plan, the number of Common Shares or other security, or rights granted and the terms of any Award
Agreements, including the timing, pricing, and amounts of Awards, shall be determined by the Committee, and its determination shall be final and conclusive upon all parties in interest. In the event of any conflict between an Award Agreement and
this Plan, the terms of this Plan shall govern. 

 

	 	(3)	 	Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Committee may delegate to the officers or employees of the Company
and its Subsidiaries the authority to execute and deliver such instruments and documents, to do all such acts and things, and to take all such other steps deemed necessary, advisable or convenient for the effective administration of the Plan in
accordance with its terms and purpose, except that the Committee may not delegate any discretionary authority with respect to substantive decisions or functions regarding the Plan or Awards thereunder, including, but not limited to, decisions
regarding the timing, eligibility, pricing, amount or other material terms of such Awards. Any such delegation may be revoked by the Committee at any time. 

 

	 	(4)	 	To the extent that the Committee determines that the restrictions imposed by the Plan preclude the achievement of the material purposes of the Awards in
jurisdictions outside the United States, the Committee will have the authority and discretion to modify those restrictions as the Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions
outside of the United States. 

 
(b)
Unfunded Plan. The Plan shall be unfunded. Neither the Company, a Subsidiary, nor the Board shall be required to segregate any assets that may at any time be represented by Awards made pursuant to the Plan. Neither the Company, a Subsidiary,
the Committee, nor the Board shall be deemed to be a trustee of any amounts to be paid under the Plan. 
 
(c) Limits of Liability. 
 

	 	(1)	 	Any liability of the Company or a Subsidiary to any Participant with respect to an Award shall be based solely upon contractual obligations created by the Plan and
the Award Agreement. 

 

	 	(2)	 	Neither the Company nor a Subsidiary, nor any member of the Board or of the Committee, nor any other person participating in any determination of any question under
the Plan, or in the interpretation, administration or application of the Plan, shall have any liability to any party for any action taken or not taken in good faith under the Plan except as may be expressly provided by statute.

 
(d) Rights of Participants.
Nothing contained in this Plan or in any Award Agreement (or in any other documents related to this Plan or to any Award or Award Agreement) shall confer upon any Participant any right to continue in the service of the Company or a Subsidiary or
constitute any contract or limit in any way the right of the Company or a Subsidiary to change such person’s compensation or other benefits or to terminate the service of such person with or without cause. 
 
(e) Duration. The Board adopted the Plan subject to the
approval of the shareholders of the Company at the Company’s 2003 Annual General Meeting of its shareholders on May 22, 2003. The date of such shareholder approval shall be the “Effective Date” of the Plan. The Plan shall remain in
effect until all Awards under the Plan have been exercised or terminated under the terms of the Plan and applicable Award Agreements, provided, however, that Awards under the Plan may only be granted within ten years from the Effective
Date of the Plan. 
 
(f) Form and Time of
Elections. Any election required or permitted under the Plan shall be in writing, and shall be deemed to be filed when timely delivered to the Secretary of the Company. Any election to receive a Retainer Award in lieu of cash shall be
irrevocable after it is filed with respect to the Plan Year for which it is filed, and such 

 

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election shall remain in effect and be irrevocable with respect to any future Plan Year unless a new election with respect to such Plan Year
is filed in accordance with rules established by the Committee, in which case such new election shall be irrevocable with respect to such Plan Year. 
 
(g) Action by Company. Any action required or permitted to be taken by the Company shall be by resolution of the Board, or by
action of one or more members of the Board (including a committee of the Board) who are duly authorized to act for the Board or (except to the extent prohibited by the provisions of Rule 16b-3, applicable local law, the applicable rules of any stock
exchange, or any other applicable rules) by a duly authorized officer of the Company. 
 
(h) Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular.

 
Section 13. Amendment and Termination 
 
The Board may at any time amend, suspend or discontinue the
Plan, in whole or in part; provided, however, that no amendment by the Board shall increase any limitations set forth in Section 7 nor shall it permit any Options to be awarded at Exercise Prices below Fair Market Value without
approval of the shareholders. The Committee may at any time alter or amend any or all Award Agreements under the Plan to the extent permitted by law, but no such alteration or amendment shall impair the rights of any holder of an Award without the
holder’s consent. Adjustments pursuant to Section 9 shall not be subject to the foregoing limitations of this Section 13. 
 

8<PAGE>
                                                                   EXHIBIT 10.30

                        FIRST AMENDMENT TO LOAN AGREEMENT

         THIS FIRST AMENDMENT TO LOAN AGREEMENT ("Amendment") is entered into as
of the 29th day of July, 2002 by and among LASALLE BANK NATIONAL ASSOCIATION
("LBNA"), as Administrative Agent and as a Lender, SOUTHWEST BANK OF ST. LOUIS
("SWB"), as a Lender, (collectively LBNA and SWB are referred to herein as
"Lender") and TALX CORPORATION, a Missouri corporation ("Borrower") and
consented to by JAMES E. FRICK, INC., a Missouri corporation, GARCIA ACQUISITION
SUB, INC., a Missouri corporation, and TI3, INC., a Texas corporation
(collectively "Guarantors").

                                   WITNESSETH

         WHEREAS, Lender has extended a line of credit to Borrower pursuant to
that certain Loan Agreement dated as of March 27, 2002 ("Loan Agreement"), as
secured by a Security Agreement executed by Borrower and dated March 27, 2002, a
Security Agreement executed by Ti3, Inc. and dated March 27, 2002, a Security
Agreement executed by Garcia Acquisitions Sub, Inc. and dated March 27, 2002, a
Security Agreement executed by James E. Frick, Inc. and dated March 27, 2002
(collectively the "Security Agreements"); as evidenced by a Stock Pledge of Ti3
Stock in favor of LBNA executed by Borrower and dated March 27, 2002, a Stock
Pledge of Garcia Stock in favor of LBNA executed by Borrower and dated March 27,
2002, and a Stock Pledge of Frick Stock in favor of LBNA executed by Borrower
and dated March 27, 2002 (collectively the "Stock Pledge Agreements"); as
evidenced by Term Notes in the face principal amounts of Twenty Million Two
Hundred Fifty Thousand and 00/100 Dollars ($20,250,000.00), and Nine Million
Seven Hundred Fifty Thousand and 00/100 Dollars ($9,750,000.00) executed by
Borrower March 27, 2002 (collectively the "Term Notes") and as evidenced by
Revolving Notes in the face principal amounts of Six Million Seven Hundred Fifty
Thousand and 00/100 Dollars ($6,750,000.00) and Three Million Two Hundred Fifty
Thousand and 00/100 ($3,250,000.00) executed by Borrower March 27, 2002
(collectively the "Revolving Notes"); and as guaranteed by three Guarantees
executed by the respective Guarantors and dated March 27, 2002 (collectively the
"Guarantees") (the Loan Agreement, Security Agreements, Term Notes, Revolving
Notes, Guarantees, Stock Pledge Agreements and all other documents executed in
connection therewith including this Amendment are collectively referred to
herein as the "Loan Documents").

         WHEREAS, as a condition to the Lender's agreement to extend the
Aggregate Revolving Loan Commitment to Borrower, Borrower, among other things,
covenanted to maintain a ratio of Borrower's EBITDA to Fixed Charges in
accordance with the terms and conditions Section 16.3 of the Loan Agreement
("Minimum Fixed Charge Coverage");

         WHEREAS, Borrower desires to repurchase from time to time shares of
Borrower's issued and outstanding capital stock which was sold pursuant to
transactions that are registered under the Securities Act of 1933 or that are
exempt therefrom ("Repurchases");

         WHEREAS, in accordance with Section 16.3 of the Loan Agreement, the
Repurchases are subject to the Minimum Fixed Charge Coverage which thereby
limits the Borrower's ability to effect the Repurchases;

<PAGE>

         WHEREAS, Borrower hereby requests an amendment of the Loan Agreement to
provide for the exclusion of the Repurchases from the Minimum Fixed Charge
Coverage calculation and to allow the Borrower to use the proceeds of Revolving
Loan Advances to effect such Repurchases; and Lender hereby agrees to provide
its consent to modification and amendment of the Loan Agreement on the terms and
conditions herein; and

         WHEREAS, all capitalized terms used herein and not defined herein have
the meaning given to them in the Loan Agreement.

         NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

         1. Use of Proceeds. Section 14.1 of the Loan Agreement is hereby
amended so that at the end of the last sentence after the words "the Current
Acquisitions" the words "and to finance Repurchases through the end of the
current fiscal year, ending March 31, 2003, through the use of Revolving Loan
Advances, provided, however: (a) in no event shall the cumulative aggregate
amount of all Revolving Loan Advances utilized to effect any such Repurchases in
such fiscal year be greater than Five Million and No/100 Dollars
($5,000,000.00); (b) there is no Default hereunder at the time of any such
Repurchase; and (c) the Maximum Available Amount that is available to Borrower
under the Aggregate Revolving Loan Commitment must be a minimum of Five Million
and No/100 Dollars ($5,000,000.00) following the use of proceeds to finance
Repurchases."

         2. Tracing of Proceeds. Section 14.13.2 of the Loan Agreement is hereby
amended so that the second sentence is revised to read in its entirety as
follows:

         "Borrower shall maintain reasonably detailed and accurate records of
         proceeds of the Loans and transfers of the proceeds of the Loans (i)
         received by it from the Lenders, (ii) transferred from it to any other
         Covered Person, (iii) received by it from another Covered Person, and
         (iv) transferred by it to Persons to effect the Repurchases which such
         record shall include a schedule detailing the sale price paid per share
         to effect such Repurchases."

         3. Financial Covenants. Section 16.1 of the Loan Agreement is hereby
amended so that the definition of Fixed Charges is revised so that after "(vii)
any acquisition or redemption of any outstanding stock, membership interest or
other equity interest" the following is added:

         ", excluding, however, Repurchases made through the end of the current
         fiscal year, ending March 31, 2003, provided, however the cumulative
         aggregate amount of all such Repurchases in such fiscal year shall in
         no event be greater than Ten Million Dollars and No/100
         ($10,000,000.00), and further provided there is no Default hereunder at
         the time of any such Repurchase."

         4. Distributions. Section 15.10 shall be revised and amended to read in
its entirety as follows:

                                       2
<PAGE>

         "15.10 DISTRIBUTIONS. Directly or indirectly declare or make, or incur
         any liability to make, any Distribution to any Person other than from
         one Covered Person to another; provided that: (1) the distribution of
         cash dividends in an amount not to exceed $2,500,000.00 per fiscal
         year, and (2) the Repurchases, shall be permitted so long as there is
         no Default hereunder at the time of declaration of such distribution or
         any Repurchases. For purposes of this Section, a Distribution means and
         includes (i) any cash dividend or payment, (ii) any retirement or
         prepayment of debt securities (other than the Loan Obligation or as
         otherwise permitted hereunder) before their regularly scheduled
         maturity dates, (iii) any loan or advance to a shareholder or
         partner(other than Permitted Investments), (iv) any direct or indirect
         purchase, redemption or other acquisition or retirement of any class of
         its capital stock."

         5. Representations and Warranties.

                  (a) Section 12.14 of the Loan Agreement shall be revised and
         amended to read in its entirety as follows: "As of the Effective Date,
         Borrower's authorized capital stock, and issued and outstanding capital
         stock, are as described in section 12.14 of the Disclosure Schedule,
         and all issued and outstanding shares of Borrower are validly issued
         and outstanding, fully paid and non-assessable."

                  (b) Section 12.29 of the Loan Agreement shall be revised and
         amended to insert after the words "Section 15.10 has been" the words
         "or shall be".

                  (c) Section 12.38 of the Loan Agreement shall be revised and
         amended to read in its entirety as follows: "No Covered Person is
         engaged or will engage, principally or as one of its important
         activities, in the business of extending credit for the purpose of
         PURCHASING or CARRYING MARGIN STOCK (within the meaning of Regulation
         U). Except for the Repurchases, no part of the proceeds of any Advance
         will be used to purchase or carry any such margin stock, or to extend
         credit to others for the purpose of purchasing or carrying any such
         margin stock. No part of the proceeds of any Advance will be used for
         any purpose which violates, or which would be inconsistent with, the
         provisions of Regulation U. None of the transactions contemplated by
         any of the Acquisition Documents will violate Regulations T, U or X of
         the FRB."

         6. Compliance Certificate. Schedule II of the Compliance Certificate
referenced in Section 14.14.2 of the Loan Agreement and attached thereto as
Exhibit 14.14 is revised and amended hereby and replaced with the Schedule II To
Compliance Certificate attached hereto as Exhibit A.

         7. Board Resolution. Prior to the effectiveness of this Amendment and
as condition to Lenders' consent to amend the Loan Agreement by the terms and
conditions hereof, Borrower shall deliver to Administrative Agent a certified
copy (as of the date of this Amendment) of resolutions of Borrower's, and each
Guarantor's board of directors authorizing the execution, delivery, and
performance of this Amendment.

                                       3
<PAGE>

         8. Representations and Warranties True. By execution hereof, each of
the undersigned hereby confirm, represent and warrant that all representations
and warranties of each of them in the Loan Agreement and in any Loan Document
are true and correct as of the date of this Amendment.

         9. Loan Documents Continue. Except to the extent amended by this
Amendment, all of the terms, provisions, conditions, agreements, covenants,
representations, warranties and powers contained in the Loan Documents shall be
and remain in full force and effect and the same are hereby ratified and
confirmed and are incorporated herein by reference. In no manner shall this
Amendment impair the Loan Documents, the rights, remedies obligations,
liabilities, liens or security interests represented thereby, nor shall any such
rights, remedies, obligations, liabilities, liens or security interests be in
any manner waived or impaired or diminished hereby.

         10. Counterparts. This Amendment may be executed by the parties hereto
on any number of separate counterparts, and all such counterparts taken together
shall constitute one and the same instrument. It shall not be necessary in
making proof of this Agreement to produce or account for more than one
counterpart signed by the party to be charged.

           (The remainder of this page is intentionally left blank.)

                                       4
<PAGE>

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

                              LASALLE BANK NATIONAL ASSOCIATION,
                              AS ADMINISTRATIVE AGENT AND A LENDER

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                              SOUTHWEST BANK OF ST. LOUIS,
                              AS A LENDER

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                              TALX CORPORATION, A MISSOURI CORPORATION,
                              AS BORROWER

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                                       5
<PAGE>

CONSENTED TO this ________ day of ___________________________, 2002.

                            GUARANTORS:

                            TI3, INC., A TEXAS CORPORATION

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                              GARCIA ACQUISITION SUB, INC., A MISSOURI
                              CORPORATION

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                              JAMES E. FRICK, INC., A MISSOURI CORPORATION

                              By:
                                 ----------------------------------------------

                              Print Name:
                                         --------------------------------------

                              Title:
                                    -------------------------------------------

                                       6
<PAGE>

                                    EXHIBIT A

                      SCHEDULE II TO COMPLIANCE CERTIFICATE

                  All calculations done in accordance with GAAP on a
consolidated basis, in accordance with the provisions of the Loan Agreement and
based on the period ended __________________. Any inconsistencies between the
descriptions of the items set forth in this Schedule II and the terms of any of
Sections 6.3.3.2 and 16.1 through 16.6 shall be resolved in favor of the terms
set forth in Sections 6.3.3.2 and 16.1 through 16.6. Reference should be made to
Sections 6.3.3.2 and 16.1 through 16.6 of the Loan Agreement for more specific
instructions regarding the calculation periods and how the components of the
financial covenants should be calculated.

I.       EBITDA (for preceding four fiscal quarters) (Section 16.1):

              (i)    Net Income                                      $_________

              (ii)   Federal, State and Local Income
                     Tax expense accrued for as a liability          $_________

              (iii)  Interest Expense                                $_________

              (iv)   Amortization of good will and
                     other intangible assets and depreciation
                      expense taken or accrued for in such period,
                      without duplication                            $_________

              (v)    Extraordinary losses in such period incurred
                     or accrued for in such period, without
                     duplication                                     $_________

              (vi)    Sum of Items (i), (ii), (iii), (iv) and (v)    $_________

              (vii)   Extraordinary income/gain in such period
                      incurred or accrued for in such period,
                      without duplication                             $________

              (viii)  Item (vi) minus Item(vii) -- EBITDA             $________

II.      EXCESS CASH FLOW (SECTION 6.3.3.2)

         A.   Total Indebtedness                                      $________

         B.   EBITDA for preceding four fiscal quarters per
              Item I                                                   $_______

         C.   Ratio of Item A to Item B                              ______:1.0

         D.   Ratio of Total Indebtedness to EBITDA required
              by Section 6.3.3.2 to avoid Excess Cash Flow
              Payment                                         Less than 1.25:1.0

III.     CAPITAL EXPENDITURE (SECTION 16.2)

         A.   Capital Expenditures in period                         $_________

                                       7
<PAGE>

         B.   Capital Expenditures permitted in such period
              by Section 16.2                                    $13,000,000.00

IV.      MINIMUM FIXED CHARGES COVERAGE (SECTION 16.3)

         A.   EBITDA (for preceding _____ fiscal quarter(s))         $_________

         B.   Fixed Charges(for preceding ____ fiscal quarter(s)
              (Section 16.1):

                1.      Interest Expense                             $_________
                2.      Sum of all scheduled principal payments on
                        long term Indebtedness of Borrower
                        (including the Term Loan)                    $_________
                3.      Federal, State and Local Income
                        Taxes expense paid                           $_________
                4.      Capital Expenditures (excluding permitted
                        expenditures for Permitted Acquisitions
                        and excluding Capital Expenditures financed
                        by Indebtedness on which interest is owed)   $_________
                5.      Distributions paid or accrued for,
                        without duplication                          $_________
                6.      Less: Repurchases during FYE 3/31/2003       $_________
                7.      FIXED CHARGES (Sum of items 1
                        through 5 minus item 6)                      $_________

          C.  Ratio of Item A to Item B.7.                              ___:1.0

          D.  Minimum Ratio required by Section 16.3 for such period    1.10:1.0

V.       EBITDA (for preceding four fiscal quarters) (Section 16.4
         and 16.6):

         A.   EBITDA (for preceding four fiscal quarters) per Item I   $_______

         B.   Additional stipulated amount for fiscal quarters ending
              6/30/02, 9/30/02 and 12/31/02 (Sections Section
              16.4 and 16.6)                                           $_______

         C.   Sections Section 16.4 and 16.6 EBITDA (Sum of Items A
              and B)                                                   $_______

VI.      TOTAL INDEBTEDNESS TO EBITDA (SECTION 16.4)

         A.   Total Indebtedness                                     $_________

         B.   EBITDA for preceding four fiscal quarters
              per Item V.C.                                          $_________

         C.   Ratio of Item A to Item B                                 ___:1.0

                                       8
<PAGE>

         D.   Maximum Ratio of Total Indebtedness to
              to EBITDA permitted by Section 16.4                       2.0:1.0

VII.     MINIMUM NET WORTH (SECTION 16.5)

         A.   Actual Net Worth                                       $_________

         B.   Minimum Net Worth Required by Section 16.5:
              $110,000,000 plus an aggregate amount equal
              to 50% of quarterly Net Income (but only if a
              positive number, and with no reduction for losses),
              plus 100% of net cash proceeds from the issuance
              of equity securities after the Effective Date for
              each completed fiscal quarter of Borrower beginning
              with the fiscal quarter ended __________               $_________

VIII.    MINIMUM EBITDA (SECTION 16.6)

         A.   EBITDA (for preceding four fiscal quarters)
              per Item V.C.                                          $_________

         B.   Minimum EBITDA required by Section 16.6                $_________

                                       9

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