Document:

Exhibit 10.3

Exhibit 10.3

	 	 	 
	 

	 	 
	Name of Subscriber

	 	Agreement No.

CONFIDENTIAL SUBSCRIPTION AGREEMENT

TEAMSTAFF INC.

Private Sale of Securities

Consisting of up to approximately 500,000 Shares of Common Stock

Aggregate Offering Amount: $250,000

THIS SUBSCRIPTION AGREEMENT CONTAINS MATERIAL NONPUBLIC INFORMATION CONCERNING TEAMSTAFF, INC.
AND IS PREPARED SOLELY FOR THE USE OF THE OFFEREE NAMED ABOVE. ANY USE OF THIS INFORMATION FOR ANY
PURPOSE OTHER THAN IN CONNECTION WITH THE CONSIDERATION OF AN INVESTMENT IN THE SECURITIES OFFERED
HEREBY MAY SUBJECT THE USER TO CRIMINAL AND CIVIL LIABILITY.

THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK AND
IMMEDIATE DILUTION AND MAY BE PURCHASED ONLY BY PERSONS WHO QUALIFY AS “ACCREDITED INVESTORS” UNDER
RULE 501 (a) OF REGULATION D UNDER THE SECURITIES ACT.

THIS DOCUMENT HAS NOT BEEN FILED WITH OR REVIEWED BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR ANY OTHER COMMISSION OR REGULATORY AUTHORITY, AND HAS NOT BEEN FILED WITH OR REVIEWED
BY THE ATTORNEY GENERAL OF ANY STATES NOR HAS ANY SUCH COMMISSION, AUTHORITY OR ATTORNEY GENERAL
DETERMINED WHETHER IT IS ACCURATE OR COMPLETE OR PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

TEAMSTAFF, INC.

1 Executive Drive

Somerset, NJ 08873

Tel. (866) 352-5304

March
7, 2011

 

 

 

CONFIDENTIAL SUBSCRIPTION AGREEMENT

INSTRUCTIONS:

Items to be delivered by all Investors:

a. One (1) completed and executed Subscription Agreement, including the Investor
Questionnaire.

b. Payment in the amount of subscription, by wire transfer of funds or check. All
checks should be made payable TeamStaff, Inc. in the total amount of the Securities
subscribed for.

c. Wired funds should be directed as follows:

BECKER & POLIAKOFF, LLP

ATTORNEY IOLA ACCOUNT #2

ACCOUNT NO.

Signature Bank

261 Madison Avenue

New York, New York 10016

ABA No. 026013576

THE SUBSCRIBER IS RESPONSIBLE FOR ALL WIRE TRANSFER FEES IMPOSED BY THE SUBSCRIBER’S BANK.

ALL DOCUMENTS SHOULD BE RETURNED TO:

TeamStaff, Inc.

c/o Becker & Poliakoff, LLP

45 Broadway, 8th Floor

New York, New York 10006

THE FOLLOWING EXHIBITS ARE ANNEXED TO

AND FORM PART OF THIS SUBSCRIPTION AGREEMENT:

 

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SUBSCRIPTION AGREEMENT

The undersigned (the “Subscriber” or the “Purchaser”) hereby subscribes to
purchase from TeamStaff, Inc., a New Jersey corporation (the “Company”), shares of the
Company’s Common Stock, at a purchase price per share equal to closing bid price as reported by
Nasdaq on the Closing Date (the “Purchase Price”). The Company is offering hereby (the
“Offering”) a maximum of approximately 500,000 shares of its Common Stock (the “Common
Shares”).

Article I

SALE OF SECURITIES

1.1 Sale of Securities; Offering Period

(a) Subject to the terms and conditions hereof and on the basis of the representations and
warranties hereinafter set forth, the Company hereby agrees to issue and sell to the Subscriber and
the Subscriber agrees to purchase from the Company, upon Closing, the Common Shares as described
herein for the Purchase Price as set forth on the signature page of this Subscription Agreement
executed by the Subscriber. The number of Common Shares purchased hereunder by a Subscriber shall
be as specified on the signature page of this Subscription Agreement executed by the Subscriber.
The Company may reject any subscription in whole or in part. The securities being offered consist
of a total of up to approximately 500,000 Common Shares, par value $0.001 per share. The Common
Shares are being offered at the Purchase Price for a minimum subscription amount of $25,000, unless
waived by the Company. This Offering is only being made to “accredited investors” (as defined in
Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”)) in reliance
upon an exemption from registration under Section 4(2) of the Securities Act and/or Regulation D
promulgated thereunder, and on similar exemptions under applicable state laws, and by officers and
directors of the Company. The Common Shares may be referred to herein as the “Securities”.
The Closing Date will be the date on which this Agreement is counter-signed by the Company, which
shall occur after the close of trading on Nasdaq.

(b) The Common Shares are being offered during the offering period commencing on the date set
forth on the cover page of this Subscription Agreement and terminating on the earlier of (a) 5:00
p.m. (New York time) on April 15, 2011, or (b) the date on which all Common Shares authorized for
sale have been sold (the “Offering Period”).

High Risk Investment.

This investment is speculative and should only be made by investors who can afford the risk of
loss of their entire investment. The proceeds from the sale of the Common Shares will be used to
fund short term capital needs to enable the Company to maintain operations until additional funding
is received. The Company may sell additional securities after the completion of this transaction to
further fund its operations. Unless the Company is successful in completing these additional
funding transactions, or is able to generate sufficient revenue from operations, the Company may be
forced to significantly curtail its operations and the Subscribers will lose their entire
investment.

 

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Summary of Offering

	 	 	 
	Offering Summary:
	 	The Company is offering a maximum of approximately 500,000 Common Shares solely to accredited investors
on a best efforts basis.

	 	 	 

	Restricted Offerees
	 	This Offering is restricted to officers and directors of the Company.

	 	 	 

	Minimum Subscription:
	 	The minimum subscription amount for the Common Shares is $25,000, although the Company may accept
subscriptions in lesser amounts in its sole discretion.

	 	 	 

	No Registration Rights:
	 	Subscribers shall be entitled to no registration rights and are receiving restricted shares of the
Company.

	 	 	 

	Subscription Procedure:
	 	In order to subscribe for the Common Shares, each prospective subscriber must complete, execute and
deliver to the Company a signature page evidencing such prospective subscriber’s execution of this
Subscription Agreement along with a completed confidential Purchaser Questionnaire.

	 	 	 

	Restrictions on
Transferability:
	 	The Common Shares have not been registered under the Securities Act or under the securities laws of the
United States or of any state or other jurisdiction. As a result, the Common Shares may not be
transferred without registration under the Securities Act, or, if applicable, the securities laws of
any state or other jurisdiction, unless in the opinion of counsel to the Company, such registration is
not then required because of the availability of an exemption from registration.

	 	 	 

	Investment:
	 	An investment in the Company is highly speculative, and each investor bears the risk of losing his, her
or its entire investment. All Purchasers must complete and execute a Subscription Agreement and a
confidential Purchaser Questionnaire. Purchasers must set forth representations in such documents that
he, she or it is purchasing the Common Shares for investment purposes only and without a view toward
distribution. The Common Shares are suitable investments only for sophisticated investors for whom an
investment in the Common Shares does not constitute a complete investment program and who fully
understand, are willing to assume, and who have the financial resources necessary to withstand, the
risks involved in investing in the Common Shares and who can bear the potential loss of their entire
investment. The Common Shares are being offered and sold only to persons who qualify as “accredited
investors,” as defined under Regulation D of the Securities Act.

1.2 No Escrow; No Minimum Offering Amount. The Subscriber acknowledges and agrees that all
subscription amounts will be immediately released to the Company and in closings held, from time to
time, as determined by the Company at any time during the Offering Period. During the Offering
Period, subscription funds will not be placed into the escrow account and closings will be held
from time to time up to the sale of the maximum amount of Common Shares described in this
Subscription Agreement or the expiration of the Offering Period. The final Closing shall be either
the date on which this Offering is fully subscribed or the last date during the Offering Period on
which the Company accepts a subscription, whichever is latest. Each closing of the transactions
contemplated hereunder (the
“Closing”) shall be deemed to occur at the offices of Becker & Poliakoff, LLP, 45 Broadway,
8th Floor, New York, New York 10006, or at such other place as shall be mutually
agreeable to the parties, at 11:00 a.m., New York Time, on such other date as shall be mutually
agreeable to the parties.

 

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1.3 Closing Matters. At each Closing the following actions shall be taken:

(a) each Subscriber shall deliver its Purchase Price in immediately available United States
funds to the escrow account established for the Offering;

(b) the Company shall cause its stock transfer agent to deliver certificates representing the
Common Shares subscribed for to each Subscriber; and

(c) each of the Company and the Subscriber shall deliver to the other signed copies of this
Substriction Agreement.

1.4 Use of Proceeds. The Company intends to use the proceeds derived from this Offering to
satisfy its working capital requirements and general corporate purposes. Management reserves the
right to utilize the net proceeds of the Offering in a manner in the best interests of the Company.
The amount of the net proceeds that will be invested in particular areas of the Company’s business
will depend upon future economic conditions and business opportunities. To the extent that the
Company continues to incur losses from operations, such losses will be funded from its general
funds, including the net proceeds of this Offering.

1.5 Company Information. As an officer and/or director of TeamStaff, you acknowledge that you
are fully aware of all aspects of the Company’s business, the risks of an investment in the Company
and the risks of a purchase of restricted Common Stock of the Company. You have been provided with
information on the status of other business and financial transactions that are pending and have
not been publically disclosed. You also have been given access to the officers of the Company to
obtain any additional information you have deemed necessary.

1.6 Non-public Information. The fact of this offering, and certain other material financial
and business matters that have not been publically disclosed, constitute material non-public
information of the Company. Any use of this information by you, or any other person to whom you
have communicated such information, for any purpose other than your consideration of an investment
in TeamStaff, may be a criminal offense and subject you to criminal and civil liability.

1.7 Subscriber Information

	 	 	 	 	 	 	 
	(a)

	 	 	 	Name(s) of SUBSCRIBER(s):                                         	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	(b)

	 	Principal Amount of Securities Subscribed for:
	 	$                    	 	 
	 
	 	 	 	 	 	 

 

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	(c)

	 	Accredited Investor Status	 	 	 	 

The Subscriber acknowledges and agrees that the offering and sale of the Securities are
intended to be exempt from registration under the Securities Act, by virtue of Section 4(2) thereof
and/or Regulation D promulgated thereunder. In accordance therewith and in furtherance thereof,
the Subscriber represents and warrants to and agrees with the Company as follows [Please check statements
applicable to the Subscriber]:

The Subscriber is an Accredited Investor because the Subscriber is (check appropriate item):

	 	o	 	a bank as defined in Section 3(a)(2) of the Securities Act;

	 
	 	o	 	a savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Securities Act;

	 
	 	o	 	a broker or dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934 as amended (the “Exchange Act”);

	 
	 	o	 	an insurance company as defined in Section 2(13) of the Securities Act;

	 
	 	o	 	an investment company registered under the Investment Company Act of 1940, as
amended or a business development company as defined in Section 2(a)(48) of such
act;

	 
	 	o	 	a Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act of
1958;

	 
	 	o	 	an employee benefit plan within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, as amended, if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either
a bank, savings and loan association, insurance company, or registered investment
adviser, or if the employee benefit plan has total assets in excess of $5,000,000
or, if a self-directed plan, with investment decisions made solely by persons that
are accredited investors;

	 
	 	o	 	a private business development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940, as amended;

	 
	 	o	 	an organization described in Section 501(c)(3) of the Internal Revenue Code, a
corporation, Massachusetts or similar business trust, or partnership, not formed
for the specific purpose of acquiring the securities offered, with total assets in
excess of $5,000,000;

	 
	 	o	 	a natural person whose individual net worth or joint net worth with that
person’s spouse, at the time of his purchase exceeds $l,000,000;

	 
	 	o	 	a natural person who had an individual income in excess of $200,000 in each of
the two most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching the
same income level in the current year;

	 
	 	o	 	a trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) of the Exchange Act; or

	 
	 	o	 	an entity in which all of the equity owners are accredited investors. (If this
alternative is checked, the Subscriber must identify each equity owner and provide
statements signed by each demonstrating how each qualifies as an accredited
investor.)

 

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	 	o	 	a plan established and maintained by a state, its political subdivisions, or any
agency or instrumentality thereof, for the benefit of its employees, if such plan
has total assets in excess of $5,000,000

	 
	 	o	 	a director or officer of the Company.

(d) Additional Information.

The Subscriber has completed the signature page to this Subscription Agreement.

Article II

REPRESENTATIONS AND WARRANTIES OF COMPANY

The Company hereby represents and warrants to the Purchasers as of the date of this Agreement
as follows:

(A) The Company is duly organized, validly existing and in good standing under the laws of its
state of incorporation, with all requisite power and authority to own, lease, license, and use its
properties and assets and to carry out the business in which it is engaged, except where the
failure to have or be any of the foregoing may not be expected to have a material adverse effect on
the Company’s presently conducted businesses. The Company is not in violation of any of the
provisions of its articles of incorporation, bylaws or other organizational or charter documents.
The Company is duly qualified to transact the business in which it is engaged and is in good
standing as a foreign corporation in every jurisdiction in which its ownership, leasing, licensing
or use of property or assets or the conduct of its business make such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, could not,
individually or in the aggregate, have or reasonably be expected to result in (i) a material and
adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material and
adverse effect on the results of operations, assets, prospects, business or condition (financial or
otherwise) of the Company, taken as a whole, or (iii) an adverse impairment to the Company’s
ability to perform on a timely basis its obligations hereunder (any of (i), (ii) or (iii), a
“Material Adverse Effect”).

(B) The
Company is currently authorized to issue 40,000,000 shares of Common Stock, $0.001
par value per share and 5,000,000 shares of Preferred Stock, $0.10 par value per share. Except as
may be described in this Agreement, no securities of the Company are entitled to preemptive or
similar rights, and no entity or person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated by this
Agreement unless any such rights have been waived. The issue and sale of the Securities will not
(except pursuant to their terms thereunder), immediately or with the passage of time, obligate the
Company to issue shares of Common Stock or other securities to any entity or person and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under such securities.

(C) The Company has the requisite corporate power and authority to enter into, deliver and
consummate the transactions contemplated by this Agreement, to issue and sell the Securities and
deliver the Common Shares, and otherwise to carry out its obligations hereunder. The execution and
delivery of this Agreement and the consummation by it of the transactions contemplated thereby have
been duly authorized by the Company and no further action is required by the Company in connection
therewith. When executed and delivered by the Company, this Agreement will constitute the legal,
valid and binding obligation of the Company, enforceable as to the Company in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, arrangement,
fraudulent conveyance or transfer, moratorium or other laws or court decisions, now or hereinafter
in effect, relating to or affecting the rights of creditors generally and as may be limited by
general principles of equity and the discretion of the court having jurisdiction in an enforcement
action (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

 

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(D) The Company is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other federal, state, local or
other governmental authority or other person or entity in connection with the execution, delivery
and performance by the Company of this Agreement or the issuance, sale or delivery of the
Securities other than (i) any filings required by state securities laws, (ii) the filing of a
Notice of a Sale of Securities on Form D with the Commission under Regulation D of the Securities
Act, (iii) those that have been made or obtained prior to or contemporaneously with the date of
this Agreement, and (iv) filings pursuant to the Exchange Act.

(E) The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby in accordance with the terms
and conditions described herein do not and will not: (i) conflict with or violate any provision of
the Company’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) violate, conflict with, or constitute a default or breach (or an event that
with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or
otherwise) or other understanding to which the Company is a party or by which any property or asset
of the Company is bound or affected, or (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be
expected to result in a Material Adverse Effect.

(F) The Common Shares have been duly authorized and, when issued and paid for in accordance
with this Agreement, will be duly and validly issued, fully paid and nonassessable and will be
issued free and clear of all liens and encumbrances, other than restrictions on transfer under
applicable securities laws.

(G) Except as disclosed in the SEC Reports, there is no pending or, to the best knowledge of
the Company, threatened action, suit, proceeding or investigation before any court, governmental
agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates that
would affect the execution by the Company or the performance by the Company of its obligations
under this Agreement, and all other agreements entered into by the Company relating hereto. Except
as disclosed in the SEC Reports, there is no pending or, to the best knowledge of the Company,
threatened action, suit, proceeding or investigation before any court, governmental agency or body,
or arbitrator having jurisdiction over the Company, or any of its affiliates which litigation if
adversely determined could have a material adverse effect on the Company.

(H) The Company has no liabilities or obligations which are material, individually or in the
aggregate, which are not disclosed in the SEC Reports, other than those incurred in the ordinary
course of the Company’s businesses and which, individually or in the aggregate, would not
reasonably be expected to have a material adverse effect on the Company’s financial condition.

 

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Article III

REPRESENTATIONS AND WARRANTIES OF PURCHASERS

By signing this Agreement, each undersigned Purchaser hereby represents and warrants to the
Company as follows as an inducement to the Company to accept the subscription of the Purchaser:

(A) The Purchaser acknowledges and agrees that (i) the offering and sale of the Securities are
intended to be exempt from registration under the Securities Act by virtue of Section 4(2) of the
Securities Act and/or Regulation D promulgated thereunder, (ii) the Securities have not been
registered under the Securities Act and (iii) that the Company has represented to the Purchaser
(assuming the veracity of the representations of the Purchaser made herein that the Securities have
been offered and sold by the Company in reliance upon an exemption from registration provided in
Section 4(2) of the Securities Act and Regulation D thereunder. In accordance therewith and in
furtherance thereof, the Purchaser represents and warrants to and agrees with the Company that it
is an accredited investor (as defined in Rule 501 promulgated under the Securities Act) for the
reason indicated in Article I of this Subscription Agreement.

(B) The Purchaser hereby represents and warrants that the Purchaser is acquiring the
Securities hereunder for its own account for investment and not with a view to distribution, and
with no present intention of distributing the Securities or selling the Securities for
distribution. The Purchaser understands that the Securities are being sold to the Purchaser in a
transaction which is exempt from the registration requirements of the Securities Act. Accordingly,
the Purchaser acknowledges that it has been advised that the Securities have not been registered
under the Securities Act and are being sold by the Company in reliance upon the veracity of the
Purchaser’s representations contained herein and upon the exemption from the registration
requirements provided by the Securities Act and the securities laws of all applicable states. The
Purchaser’s acquisition of the Securities shall constitute a confirmation of the foregoing
representation and warranty and understanding thereof.

(C) The Purchaser (or its “Purchaser Representative”, if any) has such knowledge and
experience in financial and business matters as is required for evaluating the merits and risks of
making this investment, and the Purchaser or its Purchaser Representative(s) has received such
information requested by the Purchaser concerning the business, management and financial affairs of
the Company in order to evaluate the merits and risks of making this investment. Further, the
Purchaser acknowledges that the Purchaser has had the opportunity to ask questions of, and receive
answers from, the officers of the Company concerning the terms and conditions of this investment
and to obtain information relating to the organization, operation and business of the Company and
of the Company’s contracts, agreements and obligations or needed to verify the accuracy of any
information contained herein or any other information about the Company. Except as set forth in
this Agreement, no representation or warranty is made by the Company to induce the Purchaser to
make this investment, and any representation or warranty not made herein or therein is specifically
disclaimed and no information furnished to the Purchaser or the Purchaser’s advisor(s) in
connection with the sale were in any way inconsistent with the information stated herein. The
Purchaser further understands and acknowledges that no person has been authorized by the Company to
make any representations or warranties concerning the Company, including as to the accuracy or
completeness of the information contained in this Agreement.

(D) The Purchaser is making the foregoing representations and warranties with the intent that
they may be relied upon by the Company in determining the suitability of the sale of the Securities
to the Purchaser for purposes of federal and state securities laws. Accordingly, each Purchaser
represents and warrants that the information stated herein is true, accurate and complete, and
agrees to notify and supply corrective information promptly to the Company as provided above if any
of such information becomes inaccurate or incomplete. The Purchaser has completed this Agreement
and Questionnaire, has delivered it herewith and represents and warrants that it is accurate and
true in all respects and that it accurately and completely sets forth the financial condition of
the Purchaser on the date hereof. The Purchaser has no reason to expect there will be any material
adverse change in its financial condition and will advise the Company of any such changes occurring
prior to the closing or termination of the Offering.

 

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(E) The Purchaser is not subscribing for any of the Securities as a result of or subsequent to
any advertisement, article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, any seminar or meeting, or any solicitation of
a subscription by a person not previously known to the Purchaser in connection with investments
in Securities generally.

(F) The Purchaser has received or obtained access to certain information regarding the
Company, including this Agreement, the SEC Reports and other accompanying documents of the Company
receipt of which is hereby acknowledged. The Purchaser has carefully reviewed all information
provided to it and has carefully evaluated and understands the risks described therein related to
the Company and an investment in the Company, and understands and has relied only on the
information provided to it in writing by the Company relating to this investment. No agent prepared
any of the information to be delivered to prospective investors in connection with this
transaction. Prospective investors are advised to conduct their own review of the business,
properties and affairs of the Company before subscribing to purchase the Securities.

(G) The Purchaser also understands and agrees that, although the Company will use its best
efforts to keep the information provided in this Agreement strictly confidential, the Company or
its counsel may present this Agreement and the information provided in answer to it to such parties
as they may deem advisable if called upon to establish the availability under any federal or state
securities laws of an exemption from registration of the private placement or if the contents
thereof are relevant to any issue in any action, suit or proceeding to which the Company or its
affiliates is a party, or by which they are or may be bound or as otherwise required by law or
regulatory authority.

(H) The individual signing below on behalf of any entity hereby warrants and represents that
he/she is authorized to execute this Agreement on behalf of such entity. If an individual, the
Purchaser has reached the age of majority in the state in which the Purchaser resides. The
execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite action, if any, in respect thereof on the part of
Purchasers and no other proceedings on the part of Purchasers are necessary to consummate the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by Purchasers and constitutes a valid and binding obligation of Purchasers, enforceable against
Purchasers in accordance with its terms (subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and subject, as to enforceability, to general principles
of equity (whether applied in a proceeding in equity or at law)).

(I) The Purchaser is aware that the offering of the Securities involves securities for which
only a limited trading market exists, thereby requiring any investment to be maintained for an
indefinite period of time. The purchase of the Securities involves risks which the Purchaser has
evaluated, and the Purchaser is able to bear the economic risk of the purchase of such Securities
and the loss of its entire investment. The undersigned is able to bear the substantial economic
risk of the investment for an indefinite period of time, has no need for liquidity in such
investment and can afford a complete loss of such investment. The Purchaser’s overall commitment to
investments that are not readily marketable is not, and his acquisition of the Securities will not
cause such overall commitment to become, disproportionate to his net worth and the Purchaser has
adequate means of providing for its current needs and contingencies.

(J) The Purchaser acknowledges and agrees that there is no “minimum” offering amount for the
Securities offered hereby. The Purchaser acknowledges and agrees that funds may be immediately
released to the Company.

(K) In entering into this Agreement and in purchasing the Securities, the Purchaser further
acknowledges that:

(i) The Company has informed the Purchaser that the Securities have not been offered for sale
by means of general advertising or solicitation and the Purchaser acknowledges that it has either a
pre-existing personal or business relationship with either the Company or any of its officers,
directors or controlling person, of a nature and duration such as would enable a reasonable prudent
investor to be
aware of the character, business acumen, and general business and financial circumstances of the
Company and an investment in the Securities.

 

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(ii) Neither the Securities nor any interest therein may be resold by the Purchaser in the
absence of a registration under the Securities Act or an exemption from registration. In
particular, the Purchaser is aware that all of the foregoing described Securities will be
“restricted securities”, as such term is defined in Rule 144 promulgated under the Securities Act
(“Rule 144”), and they may not be sold pursuant to Rule 144, unless the conditions thereof
are met. Other than set forth in this Agreement, the Company has no obligation to register any
securities purchased or issuable hereunder.

(iii) The following legends (or similar language) shall be placed on the certificate(s) or
other instruments evidencing the Securities:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH
NOTES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES
AN OPINION OF COUNSEL TO THE HOLDER OF SUCH NOTES, WHICH COUNSEL AND OPINION ARE
REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH NOTES MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

(iv) The Company may at any time place a stop transfer order on its transfer books against
the Securities. Such stop order will be removed, and further transfer of the Securities will be
permitted, upon an effective registration of the respective Securities, or the receipt by the
Company of an opinion of counsel satisfactory to the Company that such further transfer may be
effected pursuant to an applicable exemption from registration.

(L) The Company has employed its own legal counsel in connection with the Offering. The
Purchasers have not been represented by independent counsel in connection with the preparation of
this Agreement or the terms of this Offering and no investigation of the merits or fairness of the
Offering has been conducted on behalf of the Purchasers. Prospective Purchasers should consult
with their own legal, tax and financial advisors with respect to the Offering made pursuant to this
Agreement.

(M)                      (insert name of Purchaser Representative: if none leave
blank) has acted as the Purchaser’s Purchaser Representative for purposes of the private
placement exemption under the Act. If the Purchaser has appointed a Purchaser Representative
(which term is used herein with the same meaning as given in Rule 501(h) of Regulation D), the
Purchaser has been advised by his Purchaser Representative as to the merits and risks of an
investment in the Company in general and the suitability of an investment in the Securities for the
Purchaser in particular.

(N) The undersigned hereby acknowledges that officers, affiliates, employees and directors of
the Company and/or the Selling Agents may purchase Securities in the Offering.

(O) It never has been represented, guaranteed or warranted by the Company, any of the
officers, directors, stockholders, partners, employees or agents of the Company, or any other
persons, whether expressly or by implication, that: (i) the Company or the Purchasers will realize
any given percentage of profits and/or amount or type of consideration, profit or loss as a result
of the Company’s activities or the Purchaser’s investment in the Company; or (ii) the past
performance or experience of the
management of the Company, or of any other person, will in any way indicate the predictable
results of the ownership of the Securities or of the Company’s activities.

 

11

 

(P) The Purchaser acknowledges that any delivery to it of this Agreement relating to the
Securities prior to the determination by the Company of its suitability as a Purchaser shall not
constitute an offer of the Securities until such determination of suitability shall be made, and
the Purchaser hereby agrees that it shall promptly return this Agreement and the other Offering
documents to the Company upon request. The Purchaser understands that the Company shall have the
right to accept or reject this subscription in whole or in part. Unless this subscription is
accepted in whole or in part by the Company this subscription shall be deemed rejected in whole.

Article IV

INDEMNIFICATION

4.1 Indemnification by the Company. The Company agrees to defend, indemnify and hold harmless
the Purchasers and shall reimburse Purchasers for, from and against each claim, loss, liability,
cost and expense (including without limitation, interest, penalties, costs of preparation and
investigation, and the reasonable fees, disbursements and expenses of attorneys, accountants and
other professional advisors) (collectively, “Losses”) directly or indirectly relating to,
resulting from or arising out of any untrue representation, misrepresentation, breach of warranty
or non-fulfillment of any covenant, agreement or other obligation by or of the Company contained
herein or in any certificate, document, or instrument delivered to Purchasers pursuant hereto.

4.2 Indemnification by Purchasers. Purchasers agrees to defend, indemnify and hold harmless
the Company and shall reimburse the Company for, from and against all Losses directly or indirectly
relating to, resulting from or arising out of any untrue representation, misrepresentation, breach
of warranty or non-fulfillment of any covenant, agreement or other obligation of the Purchasers
contained herein or in any certificate, document or instrument delivered to the Company pursuant
hereto.

4.3 Procedure. The indemnified party shall promptly notify the indemnifying party of any
claim, demand, action or proceeding for which indemnification may be sought under Sections 4.1 or
4.2 of this Agreement, and, if such claim, demand, action or proceeding is a third party claim,
demand, action or proceeding (collectively, a “Claim”), the indemnifying party will have
the right at its expense to assume the defense thereof using counsel reasonably acceptable to the
indemnified party. The indemnified party shall have the right to participate, at its own expense,
with respect to any such third party Claim. In connection with any such third party Claim,
Purchasers and the Company shall cooperate with each other and provide each other with access to
relevant books and records in their possession. No such third party Claim shall be settled without
the prior written consent of the indemnified party, which shall not be unreasonably withheld. If a
firm written offer is made to settle any such third party Claim and the indemnifying party proposes
to accept such settlement and the indemnified party refuses to consent to such settlement, then:
(i) the indemnifying party shall be excused from, and the indemnified party shall be solely
responsible for, all further defense of such third party Claim; and (ii) the maximum liability of
the indemnifying party relating to such third party Claim shall be the amount of the proposed
settlement if the amount thereafter recovered from the indemnified party on such third party Claim
is greater than the amount of the proposed settlement.

ARTICLE V

MISCELLANEOUS

5.1 Survival. The representations and warranties set forth in Articles II and III
hereof shall survive the Closing. No investigation made by or on behalf of either party shall
affect the representations and warranties made pursuant to this Agreement. No party makes any
additional or implied representations other than those set forth herein.

 

12

 

5.2 Expenses. Each party hereto shall bear and pay all costs and expenses incurred by it in
connection with the transactions contemplated hereby, including fees and expenses of its own
brokers, finders, financial consultants, accountants and counsel.

5.3 Entire Agreement. This Agreement, including the Exhibits, contains the entire agreement
and understanding of the parties with respect to its subject matter. This Agreement supersedes all
prior arrangements and understandings between the parties, either written or oral, with respect to
its subject matter.

5.4 Binding Effect of Subscription. The Purchaser hereby acknowledges and agrees, subject to
any applicable state securities laws that the subscription and application hereunder are
irrevocable, that the Purchaser is not entitled to cancel, terminate or revoke this Agreement and
that this Agreement shall survive the death or disability of the Purchaser and shall be binding
upon and inure to the benefit of the Purchaser and his heirs, executors, administrators,
successors, legal representatives, and assigns. If the Purchaser is more than one person, the
obligations of the Purchaser hereunder shall be joint and several, and the agreements,
representations, warranties, and acknowledgments herein contained shall be deemed to be made by and
be binding upon each such person and his heirs, executors, administrators, successors, legal
representatives, and assigns.

5.5 Captions. The table of contents and captions contained in this Agreement are for reference
purposes only and are not part of this Agreement.

5.6 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a
written instrument signed, in the case of an amendment, by the Company and the Purchasers holding a
majority of the Securities subscribed for in the Offering or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought (in the case of the Purchasers, such waiver
shall be in writing and approved by a majority of the Purchasers). No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such right.

5.7 Notices. Any notice, demand or other communication which any party hereto may be
required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a)
deposited, postage prepaid, in a United States mail box, stamped, registered or certified mail,
return receipt requested, addressed to such address as may be listed on the books of the Company,
or, if to the Company, the Company’s executive office, or (b) delivered personally at such address.

5.8 Execution. This Agreement may be executed through the use of separate signature pages or
in any number of counterparts, and each of such counterparts shall, or all purposes, constitute one
agreement binding on all parties, notwithstanding that all parties are not signatories to the same
counterpart.

5.9 Severability. Each provision of this Agreement is intended to be severable from every
other provisions, and the invalidity or illegality of any portion hereof, shall not affect the
validity or legality of the remainder hereof.

5.10 Non-Assignment. This Agreement is not transferable or assignable by the Purchaser except
as may be provided herein.

 

13

 

5.11 Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in accordance with
the internal laws of the State of New Jersey, without regard to the principles of conflicts of law
thereof. Each party agrees that all proceedings concerning the interpretations, enforcement and
defense of the
transactions contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the State of New Jersey (the “New Jersey Courts”). Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New Jersey Courts for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any proceeding, any claim that it is not personally subject to the jurisdiction of any New Jersey
Court, or that such proceeding has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served
in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to trial by jury in any proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. If either
party shall commence a proceeding to enforce any provisions of this Agreement, then the prevailing
party in such proceeding shall be reimbursed by the other party for its reasonable attorney’s fees
and other reasonable costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

5.12 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the Company, the Purchasers and their respective successors and permitted assigns.

Signature pages to Subscription Agreement Follows

 

14

 

SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to be executed
by their signature as natural persons or by individuals by their duly authorized officers as of the

 _____ 
day of                     , 2011.

THE COMPANY:

TEAMSTAFF, INC.:

	 	 	 
	 

Zachary Parker,

	 	 
	Chief Executive Officer
	 	 

 

15

 

EXECUTION BY AN INDIVIDUAL

(Not applicable to entities)

IF YOU ARE PURCHASING SECURITIES WITH YOUR SPOUSE, YOU MUST BOTH SIGN THIS SIGNATURE PAGE.

PLEASE INDICATE DESIRED TYPE OF OWNERSHIP OF SECURITIES:

	 	o	 	Individual

	 
	 	o	 	Joint Tenants (rights of survivorship)

	 
	 	o	 	Tenants in Common (no rights of survivorship)

I represent that the foregoing information is true and correct.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      ___, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 
	 

	 	 

(Name of Investor — Please Print)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	 

	 	 

(Name of co-Investor — Please Print)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature of Co-Investor)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

16

 

PARTNERSHIP SIGNATURE PAGE

The undersigned PARTNERSHIP hereby represents and warrants that the person signing this
Subscription Agreement on behalf of the PARTNERSHIP is a general partner of the PARTNERSHIP, has
been duly authorized by the PARTNERSHIP to acquire the Securities and sign this Subscription
Agreement on behalf of the PARTNERSHIP and, further, that the undersigned PARTNERSHIP has all
requisite authority to purchase such Securities and enter into the Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name of Partnership

(Please Type or Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

17

 

CORPORATION/LIMITED LIABILITY COMPANY SIGNATURE PAGE

The undersigned CORPORATION or LIMITED LIABILITY COMPANY hereby represents and warrants that the
person signing this Subscription Agreement on behalf of the CORPORATION or LIMITED LIABILITY
COMPANY has been duly authorized by all requisite action on the part of the CORPORATION or LIMITED
LIABILITY COMPANY to acquire the Securities and sign this Subscription Agreement on behalf of the
CORPORATION or LIMITED LIABILITY COMPANY and, further, that the undersigned CORPORATION or LIMITED
LIABILITY COMPANY has all requisite authority to purchase the Securities and enter into this
Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription
Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name of Corporation

Or Limited Liability Company

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

18

 

TRUST/RETIREMENT PLAN SIGNATURE PAGE

The undersigned TRUST or RETIREMENT PLAN hereby represents and warrants that the persons signing
this Subscription Agreement on behalf of the TRUST or RETIREMENT PLAN are duly authorized to
acquire the Securities and sign this Subscription Agreement on behalf of the TRUST or RETIREMENT
PLAN and, further, that the undersigned TRUST or RETIREMENT PLAN has all requisite authority to
purchase such Securities and enter into the Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription
Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title of Trust or Retirement Plan

(Please Type or Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

Signature of Trustee or

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name of
Trustee:	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

Signature of Co-Trustee if
applicable
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name of
Co-Trustee:	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

19Exhibit 10.4

Exhibit 10.4

	 	 	 
	 

	 	 
	Name of Subscriber

	 	Agreement No.

CONFIDENTIAL SUBSCRIPTION AGREEMENT

TEAMSTAFF INC.

Private Sale of Securities

Consisting of up to approximately 500,000 Shares of Common Stock

Aggregate Offering Amount: $250,000

THIS SUBSCRIPTION AGREEMENT CONTAINS MATERIAL NONPUBLIC INFORMATION CONCERNING TEAMSTAFF, INC.
AND IS PREPARED SOLELY FOR THE USE OF THE OFFEREE NAMED ABOVE. ANY USE OF THIS INFORMATION FOR ANY
PURPOSE OTHER THAN IN CONNECTION WITH THE CONSIDERATION OF AN INVESTMENT IN THE SECURITIES OFFERED
HEREBY MAY SUBJECT THE USER TO CRIMINAL AND CIVIL LIABILITY.

THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK AND
IMMEDIATE DILUTION AND MAY BE PURCHASED ONLY BY PERSONS WHO QUALIFY AS “ACCREDITED INVESTORS” UNDER
RULE 501 (a) OF REGULATION D UNDER THE SECURITIES ACT.

THIS DOCUMENT HAS NOT BEEN FILED WITH OR REVIEWED BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR ANY OTHER COMMISSION OR REGULATORY AUTHORITY, AND HAS NOT BEEN FILED WITH OR REVIEWED
BY THE ATTORNEY GENERAL OF ANY STATES NOR HAS ANY SUCH COMMISSION, AUTHORITY OR ATTORNEY GENERAL
DETERMINED WHETHER IT IS ACCURATE OR COMPLETE OR PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

TEAMSTAFF, INC.

1 Executive Drive

Somerset, NJ 08873

Tel. (866) 352-5304

March
7, 2011

 

 

 

CONFIDENTIAL SUBSCRIPTION AGREEMENT

INSTRUCTIONS:

Items to be delivered by all Investors:

a. One (1) completed and executed Subscription Agreement, including the Investor
Questionnaire.

b. Payment in the amount of subscription by granting a credit to the Company of
amounts payable by the Company to the Purchaser.

c. The Purchaser hereby grants the Company a credit in the amount of $                    
against any obligation of the Company to the Purchaser payable within twelve months of the
Closing Date, except for base salary.

THE SUBSCRIBER IS RESPONSIBLE FOR ALL WIRE TRANSFER FEES IMPOSED BY THE SUBSCRIBER’S BANK.

ALL DOCUMENTS SHOULD BE RETURNED TO:

TeamStaff, Inc.

c/o Becker & Poliakoff, LLP

45 Broadway, 8th Floor

New York, New York 10006

THE FOLLOWING EXHIBITS ARE ANNEXED TO

AND FORM PART OF THIS SUBSCRIPTION AGREEMENT:

 

2

 

SUBSCRIPTION AGREEMENT

The undersigned (the “Subscriber” or the “Purchaser”) hereby subscribes to
purchase from TeamStaff, Inc., a New Jersey corporation (the “Company”), shares of the
Company’s Common Stock, at a purchase price per share equal to closing bid price as reported by
Nasdaq on the Closing Date (the “Purchase Price”). The Company is offering hereby (the
“Offering”) a maximum of approximately 500,000 shares of its Common Stock (the “Common
Shares”).

Article I

SALE OF SECURITIES

1.1 Sale of Securities; Offering Period

(a) Subject to the terms and conditions hereof and on the basis of the representations and
warranties hereinafter set forth, the Company hereby agrees to issue and sell to the Subscriber and
the Subscriber agrees to purchase from the Company, upon Closing, the Common Shares as described
herein for the Purchase Price as set forth on the signature page of this Subscription Agreement
executed by the Subscriber. The number of Common Shares purchased hereunder by a Subscriber shall
be as specified on the signature page of this Subscription Agreement executed by the Subscriber.
The Company may reject any subscription in whole or in part. The securities being offered consist
of a total of up to approximately 500,000 Common Shares, par value $0.001 per share. The Common
Shares are being offered at the Purchase Price for a minimum subscription amount of $25,000, unless
waived by the Company. This Offering is only being made to “accredited investors” (as defined in
Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”)) in reliance
upon an exemption from registration under Section 4(2) of the Securities Act and/or Regulation D
promulgated thereunder, and on similar exemptions under applicable state laws, and by officers and
directors of the Company. The Common Shares may be referred to herein as the “Securities”.
The Closing Date will be the date on which this Agreement is counter-signed by the Company, which
shall occur after the close of trading on Nasdaq.

(b) The Common Shares are being offered during the offering period commencing on the date set
forth on the cover page of this Subscription Agreement and terminating on the earlier of (a) 5:00
p.m. (New York time) on April 15, 2011, or (b) the date on which all Common Shares authorized for
sale have been sold (the “Offering Period”).

(c) The Purchaser hereby elects to pay the Purchase Price by granting a credit (the “Credit”)
to the Company for amount of the Purchase Price. The Credit, at the option of the Company, may be
used for any obligation of the Company to the Purchaser payable within twelve months of the Closing
Date except for base salary. The Common Shares shall be held by the Company as security for the
payment of the Purchase Price until the Purchase Price is paid in full through the application of
the Credit by the Company. In the event the Credit is insufficient to pay the Purchase Price in
full, upon the one year anniversary of the Closing Date, such number of Common Shares equal to the
Credit divided by the Purchase Price shall be delivered to the Purchaser, and the remainder of the
Common Shares shall be surrendered for cancellation to the Company. The Company shall have no
recourse against the Purchaser for any amount of the Purchase Price.

High Risk Investment.

This investment is speculative and should only be made by investors who can afford the risk of
loss of their entire investment. The proceeds from the sale of the Common Shares will be used to
fund short term capital needs to enable the Company to maintain operations until additional funding
is received. The Company may sell additional securities after the completion of this transaction to
further fund its operations. Unless the Company is successful in completing these additional
funding transactions, or is able to generate sufficient revenue from operations, the Company may be
forced to significantly curtail its operations and the Subscribers will lose their entire
investment.

 

3

 

Summary of Offering

	 	 	 
	Offering Summary:
	 	The Company is offering a maximum of approximately 500,000 Common Shares solely to accredited investors
on a best efforts basis.

	 	 	 

	Restricted Offerees
	 	This Offering is restricted to officers and directors of the Company.

	 	 	 

	Minimum Subscription:
	 	The minimum subscription amount for the Common Shares is $25,000, although the Company may accept
subscriptions in lesser amounts in its sole discretion.

	 	 	 

	No Registration Rights:
	 	Subscribers shall be entitled to no registration rights and are receiving restricted shares of the
Company.

	 	 	 

	Subscription Procedure:
	 	In order to subscribe for the Common Shares, each prospective subscriber must complete, execute and
deliver to the Company a signature page evidencing such prospective subscriber’s execution of this
Subscription Agreement along with a completed confidential Purchaser Questionnaire.

	 	 	 

	Restrictions on
Transferability:
	 	The Common Shares have not been registered under the Securities Act or under the securities laws of the
United States or of any state or other jurisdiction. As a result, the Common Shares may not be
transferred without registration under the Securities Act, or, if applicable, the securities laws of
any state or other jurisdiction, unless in the opinion of counsel to the Company, such registration is
not then required because of the availability of an exemption from registration.

	 	 	 

	Investment:
	 	An investment in the Company is highly speculative, and each investor bears the risk of losing his, her
or its entire investment. All Purchasers must complete and execute a Subscription Agreement and a
confidential Purchaser Questionnaire. Purchasers must set forth representations in such documents that
he, she or it is purchasing the Common Shares for investment purposes only and without a view toward
distribution. The Common Shares are suitable investments only for sophisticated investors for whom an
investment in the Common Shares does not constitute a complete investment program and who fully
understand, are willing to assume, and who have the financial resources necessary to withstand, the
risks involved in investing in the Common Shares and who can bear the potential loss of their entire
investment. The Common Shares are being offered and sold only to persons who qualify as “accredited
investors,” as defined under Regulation D of the Securities Act.

1.2 No Escrow; No Minimum Offering Amount. The Subscriber acknowledges and agrees that all
subscription amounts will be immediately released to the Company and in closings held, from time to
time, as determined by the Company at any time during the Offering Period. During the Offering
Period, subscription funds will not be placed into the escrow account and closings will be held
from time to time up to the sale of the maximum amount of Common Shares described in this
Subscription Agreement or the expiration of the Offering Period. The final Closing shall be either
the date on which this Offering is fully subscribed or the last date during the Offering Period on
which the Company accepts a subscription, whichever is latest. Each closing of the transactions
contemplated hereunder (the “Closing”) shall be deemed to occur at the offices of Becker &
Poliakoff, LLP, 45 Broadway, 8th Floor,
New York, New York 10006, or at such other place as shall be mutually agreeable to the parties, at
11:00 a.m., New York Time, on such other date as shall be mutually agreeable to the parties.

 

4

 

1.3 Closing Matters. At each Closing the following actions shall be taken:

(a) each Subscriber shall deliver its Purchase Price in immediately available United States
funds to the escrow account established for the Offering;

(b) the Company shall cause its stock transfer agent to deliver certificates representing the
Common Shares subscribed for to each Subscriber; and

(c) each of the Company and the Subscriber shall deliver to the other signed copies of this
Substriction Agreement.

1.4 Use of Proceeds. The Company intends to use the proceeds derived from this Offering to
satisfy its working capital requirements and general corporate purposes. Management reserves the
right to utilize the net proceeds of the Offering in a manner in the best interests of the Company.
The amount of the net proceeds that will be invested in particular areas of the Company’s business
will depend upon future economic conditions and business opportunities. To the extent that the
Company continues to incur losses from operations, such losses will be funded from its general
funds, including the net proceeds of this Offering.

1.5 Company Information. As an officer and/or director of TeamStaff, you acknowledge that you
are fully aware of all aspects of the Company’s business, the risks of an investment in the Company
and the risks of a purchase of restricted Common Stock of the Company. You have been provided with
information on the status of other business and financial transactions that are pending and have
not been publically disclosed. You also have been given access to the officers of the Company to
obtain any additional information you have deemed necessary.

1.6 Non-public Information. The fact of this offering, and certain other material financial
and business matters that have not been publically disclosed, constitute material non-public
information of the Company. Any use of this information by you, or any other person to whom you
have communicated such information, for any purpose other than your consideration of an investment
in TeamStaff, may be a criminal offense and subject you to criminal and civil liability.

1.7 Subscriber Information

	 	 	 	 	 	 	 
	(a)

	 	 	 	Name(s) of SUBSCRIBER(s):                                         	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	(b)

	 	Principal Amount of Securities Subscribed for:
	 	$                    	 	 
	 
	 	 	 	 	 	 

 

5

 

	 	 	 	 	 	 	 
	(c)

	 	Accredited Investor Status	 	 	 	 

The Subscriber acknowledges and agrees that the offering and sale of the Securities are
intended to be exempt from registration under the Securities Act, by virtue of Section 4(2) thereof
and/or Regulation D promulgated thereunder. In accordance therewith and in furtherance thereof,
the Subscriber
represents and warrants to and agrees with the Company as follows [Please check statements
applicable to the Subscriber]:

The Subscriber is an Accredited Investor because the Subscriber is (check appropriate item):

	 	o	 	a bank as defined in Section 3(a)(2) of the Securities Act;

	 
	 	o	 	a savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Securities Act;

	 
	 	o	 	a broker or dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934 as amended (the “Exchange Act”);

	 
	 	o	 	an insurance company as defined in Section 2(13) of the Securities Act;

	 
	 	o	 	an investment company registered under the Investment Company Act of 1940, as
amended or a business development company as defined in Section 2(a)(48) of such
act;

	 
	 	o	 	a Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act of
1958;

	 
	 	o	 	an employee benefit plan within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, as amended, if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either
a bank, savings and loan association, insurance company, or registered investment
adviser, or if the employee benefit plan has total assets in excess of $5,000,000
or, if a self-directed plan, with investment decisions made solely by persons that
are accredited investors;

	 
	 	o	 	a private business development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940, as amended;

	 
	 	o	 	an organization described in Section 501(c)(3) of the Internal Revenue Code, a
corporation, Massachusetts or similar business trust, or partnership, not formed
for the specific purpose of acquiring the securities offered, with total assets in
excess of $5,000,000;

	 
	 	o	 	a natural person whose individual net worth or joint net worth with that
person’s spouse, at the time of his purchase exceeds $l,000,000;

	 
	 	o	 	a natural person who had an individual income in excess of $200,000 in each of
the two most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching the
same income level in the current year;

	 
	 	o	 	a trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) of the Exchange Act; or

	 
	 	o	 	an entity in which all of the equity owners are accredited investors. (If this
alternative is checked, the Subscriber must identify each equity owner and provide
statements signed by each demonstrating how each qualifies as an accredited
investor.)

 

6

 

	 	o	 	a plan established and maintained by a state, its political subdivisions, or any
agency or instrumentality thereof, for the benefit of its employees, if such plan
has total assets in excess of $5,000,000

	 
	 	o	 	a director or officer of the Company.

(d) Additional Information.

The Subscriber has completed the signature page to this Subscription Agreement.

Article II

REPRESENTATIONS AND WARRANTIES OF COMPANY

The Company hereby represents and warrants to the Purchasers as of the date of this Agreement
as follows:

(A) The Company is duly organized, validly existing and in good standing under the laws of its
state of incorporation, with all requisite power and authority to own, lease, license, and use its
properties and assets and to carry out the business in which it is engaged, except where the
failure to have or be any of the foregoing may not be expected to have a material adverse effect on
the Company’s presently conducted businesses. The Company is not in violation of any of the
provisions of its articles of incorporation, bylaws or other organizational or charter documents.
The Company is duly qualified to transact the business in which it is engaged and is in good
standing as a foreign corporation in every jurisdiction in which its ownership, leasing, licensing
or use of property or assets or the conduct of its business make such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, could not,
individually or in the aggregate, have or reasonably be expected to result in (i) a material and
adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material and
adverse effect on the results of operations, assets, prospects, business or condition (financial or
otherwise) of the Company, taken as a whole, or (iii) an adverse impairment to the Company’s
ability to perform on a timely basis its obligations hereunder (any of (i), (ii) or (iii), a
“Material Adverse Effect”).

(B) The Company
is currently authorized to issue 40,000,000 shares of Common Stock, $0.001
par value per share and 5,000,000 shares of Preferred Stock, $0.10 par value per share. Except as
may be described in this Agreement, no securities of the Company are entitled to preemptive or
similar rights, and no entity or person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated by this
Agreement unless any such rights have been waived. The issue and sale of the Securities will not
(except pursuant to their terms thereunder), immediately or with the passage of time, obligate the
Company to issue shares of Common Stock or other securities to any entity or person and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under such securities.

(C) The Company has the requisite corporate power and authority to enter into, deliver and
consummate the transactions contemplated by this Agreement, to issue and sell the Securities and
deliver the Common Shares, and otherwise to carry out its obligations hereunder. The execution and
delivery of this Agreement and the consummation by it of the transactions contemplated thereby have
been duly authorized by the Company and no further action is required by the Company in connection
therewith. When executed and delivered by the Company, this Agreement will constitute the legal,
valid and binding obligation of the Company, enforceable as to the Company in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, arrangement,
fraudulent conveyance or transfer, moratorium or other laws or court decisions, now or hereinafter
in effect, relating to or affecting the rights of creditors generally and as may be limited by
general principles of equity and the discretion of the court having jurisdiction in an enforcement
action (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

 

7

 

(D) The Company is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other federal, state, local or
other governmental authority or other person or entity in connection with the execution, delivery
and performance by the Company of this Agreement or the issuance, sale or delivery of the
Securities other than (i) any filings required by state securities laws, (ii) the filing of a
Notice of a Sale of Securities on Form D with the Commission under Regulation D of the Securities
Act, (iii) those that have been made or obtained prior to or contemporaneously with the date of
this Agreement, and (iv) filings pursuant to the Exchange Act.

(E) The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby in accordance with the terms
and conditions described herein do not and will not: (i) conflict with or violate any provision of
the Company’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) violate, conflict with, or constitute a default or breach (or an event that
with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or
otherwise) or other understanding to which the Company is a party or by which any property or asset
of the Company is bound or affected, or (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be
expected to result in a Material Adverse Effect.

(F) The Common Shares have been duly authorized and, when issued and paid for in accordance
with this Agreement, will be duly and validly issued, fully paid and nonassessable and will be
issued free and clear of all liens and encumbrances, other than restrictions on transfer under
applicable securities laws.

(G) Except as disclosed in the SEC Reports, there is no pending or, to the best knowledge of
the Company, threatened action, suit, proceeding or investigation before any court, governmental
agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates that
would affect the execution by the Company or the performance by the Company of its obligations
under this Agreement, and all other agreements entered into by the Company relating hereto. Except
as disclosed in the SEC Reports, there is no pending or, to the best knowledge of the Company,
threatened action, suit, proceeding or investigation before any court, governmental agency or body,
or arbitrator having jurisdiction over the Company, or any of its affiliates which litigation if
adversely determined could have a material adverse effect on the Company.

(H) The Company has no liabilities or obligations which are material, individually or in the
aggregate, which are not disclosed in the SEC Reports, other than those incurred in the ordinary
course of the Company’s businesses and which, individually or in the aggregate, would not
reasonably be expected to have a material adverse effect on the Company’s financial condition.

 

8

 

Article III

REPRESENTATIONS AND WARRANTIES OF PURCHASERS

By signing this Agreement, each undersigned Purchaser hereby represents and warrants to the
Company as follows as an inducement to the Company to accept the subscription of the Purchaser:

(A) The Purchaser acknowledges and agrees that (i) the offering and sale of the Securities are
intended to be exempt from registration under the Securities Act by virtue of Section 4(2) of the
Securities Act and/or Regulation D promulgated thereunder, (ii) the Securities have not been
registered under the Securities Act and (iii) that the Company has represented to the Purchaser
(assuming the veracity of the representations of the Purchaser made herein that the Securities have
been offered and sold by the Company in reliance upon an exemption from registration provided in
Section 4(2) of the Securities Act and Regulation D thereunder. In accordance therewith and in
furtherance thereof, the Purchaser represents and warrants to and agrees with the Company that it
is an accredited investor (as defined in Rule 501 promulgated under the Securities Act) for the
reason indicated in Article I of this Subscription Agreement.

(B) The Purchaser hereby represents and warrants that the Purchaser is acquiring the
Securities hereunder for its own account for investment and not with a view to distribution, and
with no present intention of distributing the Securities or selling the Securities for
distribution. The Purchaser understands that the Securities are being sold to the Purchaser in a
transaction which is exempt from the registration requirements of the Securities Act. Accordingly,
the Purchaser acknowledges that it has been advised that the Securities have not been registered
under the Securities Act and are being sold by the Company in reliance upon the veracity of the
Purchaser’s representations contained herein and upon the exemption from the registration
requirements provided by the Securities Act and the securities laws of all applicable states. The
Purchaser’s acquisition of the Securities shall constitute a confirmation of the foregoing
representation and warranty and understanding thereof.

(C) The Purchaser (or its “Purchaser Representative”, if any) has such knowledge and
experience in financial and business matters as is required for evaluating the merits and risks of
making this investment, and the Purchaser or its Purchaser Representative(s) has received such
information requested by the Purchaser concerning the business, management and financial affairs of
the Company in order to evaluate the merits and risks of making this investment. Further, the
Purchaser acknowledges that the Purchaser has had the opportunity to ask questions of, and receive
answers from, the officers of the Company concerning the terms and conditions of this investment
and to obtain information relating to the organization, operation and business of the Company and
of the Company’s contracts, agreements and obligations or needed to verify the accuracy of any
information contained herein or any other information about the Company. Except as set forth in
this Agreement, no representation or warranty is made by the Company to induce the Purchaser to
make this investment, and any representation or warranty not made herein or therein is specifically
disclaimed and no information furnished to the Purchaser or the Purchaser’s advisor(s) in
connection with the sale were in any way inconsistent with the information stated herein. The
Purchaser further understands and acknowledges that no person has been authorized by the Company to
make any representations or warranties concerning the Company, including as to the accuracy or
completeness of the information contained in this Agreement.

(D) The Purchaser is making the foregoing representations and warranties with the intent that
they may be relied upon by the Company in determining the suitability of the sale of the Securities
to the Purchaser for purposes of federal and state securities laws. Accordingly, each Purchaser
represents and warrants that the information stated herein is true, accurate and complete, and
agrees to notify and supply corrective information promptly to the Company as provided above if any
of such information becomes inaccurate or incomplete. The Purchaser has completed this Agreement
and Questionnaire, has delivered it herewith and represents and warrants that it is accurate and
true in all respects and that it accurately and completely sets forth the financial condition of
the Purchaser on the date hereof. The Purchaser has no reason to expect there will be any material
adverse change in its financial condition and will advise the Company of any such changes occurring
prior to the closing or termination of the Offering.

 

9

 

(E) The Purchaser is not subscribing for any of the Securities as a result of or subsequent to
any advertisement, article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, any seminar or meeting, or any solicitation of
a
subscription by a person not previously known to the Purchaser in connection with investments
in Securities generally.

(F) The Purchaser has received or obtained access to certain information regarding the
Company, including this Agreement, the SEC Reports and other accompanying documents of the Company
receipt of which is hereby acknowledged. The Purchaser has carefully reviewed all information
provided to it and has carefully evaluated and understands the risks described therein related to
the Company and an investment in the Company, and understands and has relied only on the
information provided to it in writing by the Company relating to this investment. No agent prepared
any of the information to be delivered to prospective investors in connection with this
transaction. Prospective investors are advised to conduct their own review of the business,
properties and affairs of the Company before subscribing to purchase the Securities.

(G) The Purchaser also understands and agrees that, although the Company will use its best
efforts to keep the information provided in this Agreement strictly confidential, the Company or
its counsel may present this Agreement and the information provided in answer to it to such parties
as they may deem advisable if called upon to establish the availability under any federal or state
securities laws of an exemption from registration of the private placement or if the contents
thereof are relevant to any issue in any action, suit or proceeding to which the Company or its
affiliates is a party, or by which they are or may be bound or as otherwise required by law or
regulatory authority.

(H) The individual signing below on behalf of any entity hereby warrants and represents that
he/she is authorized to execute this Agreement on behalf of such entity. If an individual, the
Purchaser has reached the age of majority in the state in which the Purchaser resides. The
execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite action, if any, in respect thereof on the part of
Purchasers and no other proceedings on the part of Purchasers are necessary to consummate the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by Purchasers and constitutes a valid and binding obligation of Purchasers, enforceable against
Purchasers in accordance with its terms (subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and subject, as to enforceability, to general principles
of equity (whether applied in a proceeding in equity or at law)).

(I) The Purchaser is aware that the offering of the Securities involves securities for which
only a limited trading market exists, thereby requiring any investment to be maintained for an
indefinite period of time. The purchase of the Securities involves risks which the Purchaser has
evaluated, and the Purchaser is able to bear the economic risk of the purchase of such Securities
and the loss of its entire investment. The undersigned is able to bear the substantial economic
risk of the investment for an indefinite period of time, has no need for liquidity in such
investment and can afford a complete loss of such investment. The Purchaser’s overall commitment to
investments that are not readily marketable is not, and his acquisition of the Securities will not
cause such overall commitment to become, disproportionate to his net worth and the Purchaser has
adequate means of providing for its current needs and contingencies.

(J) The Purchaser acknowledges and agrees that there is no “minimum” offering amount for the
Securities offered hereby. The Purchaser acknowledges and agrees that funds may be immediately
released to the Company.

 

10

 

(K) In entering into this Agreement and in purchasing the Securities, the Purchaser further
acknowledges that:

(i) The Company has informed the Purchaser that the Securities have not been offered for sale
by means of general advertising or solicitation and the Purchaser acknowledges that it has either a
pre-existing personal or business relationship with either the Company or any of its officers,
directors or controlling person, of a nature and duration such as would enable a reasonable prudent
investor to be
aware of the character, business acumen, and general business and financial circumstances of the
Company and an investment in the Securities.

(ii) Neither the Securities nor any interest therein may be resold by the Purchaser in the
absence of a registration under the Securities Act or an exemption from registration. In
particular, the Purchaser is aware that all of the foregoing described Securities will be
“restricted securities”, as such term is defined in Rule 144 promulgated under the Securities Act
(“Rule 144”), and they may not be sold pursuant to Rule 144, unless the conditions thereof
are met. Other than set forth in this Agreement, the Company has no obligation to register any
securities purchased or issuable hereunder.

(iii) The following legends (or similar language) shall be placed on the certificate(s) or
other instruments evidencing the Securities:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH
NOTES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES
AN OPINION OF COUNSEL TO THE HOLDER OF SUCH NOTES, WHICH COUNSEL AND OPINION ARE
REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH NOTES MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

(iv) The Company may at any time place a stop transfer order on its transfer books against
the Securities. Such stop order will be removed, and further transfer of the Securities will be
permitted, upon an effective registration of the respective Securities, or the receipt by the
Company of an opinion of counsel satisfactory to the Company that such further transfer may be
effected pursuant to an applicable exemption from registration.

(L) The Company has employed its own legal counsel in connection with the Offering. The
Purchasers have not been represented by independent counsel in connection with the preparation of
this Agreement or the terms of this Offering and no investigation of the merits or fairness of the
Offering has been conducted on behalf of the Purchasers. Prospective Purchasers should consult
with their own legal, tax and financial advisors with respect to the Offering made pursuant to this
Agreement.

(M)                      (insert name of Purchaser Representative: if none leave
blank) has acted as the Purchaser’s Purchaser Representative for purposes of the private
placement exemption under the Act. If the Purchaser has appointed a Purchaser Representative
(which term is used herein with the same meaning as given in Rule 501(h) of Regulation D), the
Purchaser has been advised by his Purchaser Representative as to the merits and risks of an
investment in the Company in general and the suitability of an investment in the Securities for the
Purchaser in particular.

(N) The undersigned hereby acknowledges that officers, affiliates, employees and directors of
the Company and/or the Selling Agents may purchase Securities in the Offering.

(O) It never has been represented, guaranteed or warranted by the Company, any of the
officers, directors, stockholders, partners, employees or agents of the Company, or any other
persons, whether expressly or by implication, that: (i) the Company or the Purchasers will realize
any given percentage of profits and/or amount or type of consideration, profit or loss as a result
of the Company’s activities or the Purchaser’s investment in the Company; or (ii) the past
performance or experience of the
management of the Company, or of any other person, will in any way indicate the predictable
results of the ownership of the Securities or of the Company’s activities.

 

11

 

(P) The Purchaser acknowledges that any delivery to it of this Agreement relating to the
Securities prior to the determination by the Company of its suitability as a Purchaser shall not
constitute an offer of the Securities until such determination of suitability shall be made, and
the Purchaser hereby agrees that it shall promptly return this Agreement and the other Offering
documents to the Company upon request. The Purchaser understands that the Company shall have the
right to accept or reject this subscription in whole or in part. Unless this subscription is
accepted in whole or in part by the Company this subscription shall be deemed rejected in whole.

Article IV

INDEMNIFICATION

4.1 Indemnification by the Company. The Company agrees to defend, indemnify and hold harmless
the Purchasers and shall reimburse Purchasers for, from and against each claim, loss, liability,
cost and expense (including without limitation, interest, penalties, costs of preparation and
investigation, and the reasonable fees, disbursements and expenses of attorneys, accountants and
other professional advisors) (collectively, “Losses”) directly or indirectly relating to,
resulting from or arising out of any untrue representation, misrepresentation, breach of warranty
or non-fulfillment of any covenant, agreement or other obligation by or of the Company contained
herein or in any certificate, document, or instrument delivered to Purchasers pursuant hereto.

4.2 Indemnification by Purchasers. Purchasers agrees to defend, indemnify and hold harmless
the Company and shall reimburse the Company for, from and against all Losses directly or indirectly
relating to, resulting from or arising out of any untrue representation, misrepresentation, breach
of warranty or non-fulfillment of any covenant, agreement or other obligation of the Purchasers
contained herein or in any certificate, document or instrument delivered to the Company pursuant
hereto.

4.3 Procedure. The indemnified party shall promptly notify the indemnifying party of any
claim, demand, action or proceeding for which indemnification may be sought under Sections 4.1 or
4.2 of this Agreement, and, if such claim, demand, action or proceeding is a third party claim,
demand, action or proceeding (collectively, a “Claim”), the indemnifying party will have
the right at its expense to assume the defense thereof using counsel reasonably acceptable to the
indemnified party. The indemnified party shall have the right to participate, at its own expense,
with respect to any such third party Claim. In connection with any such third party Claim,
Purchasers and the Company shall cooperate with each other and provide each other with access to
relevant books and records in their possession. No such third party Claim shall be settled without
the prior written consent of the indemnified party, which shall not be unreasonably withheld. If a
firm written offer is made to settle any such third party Claim and the indemnifying party proposes
to accept such settlement and the indemnified party refuses to consent to such settlement, then:
(i) the indemnifying party shall be excused from, and the indemnified party shall be solely
responsible for, all further defense of such third party Claim; and (ii) the maximum liability of
the indemnifying party relating to such third party Claim shall be the amount of the proposed
settlement if the amount thereafter recovered from the indemnified party on such third party Claim
is greater than the amount of the proposed settlement.

ARTICLE V

MISCELLANEOUS

5.1 Survival. The representations and warranties set forth in Articles II and III
hereof shall survive the Closing. No investigation made by or on behalf of either party shall
affect the representations and warranties made pursuant to this Agreement. No party makes any
additional or implied representations other than those set forth herein.

 

12

 

5.2 Expenses. Each party hereto shall bear and pay all costs and expenses incurred by it in
connection with the transactions contemplated hereby, including fees and expenses of its own
brokers, finders, financial consultants, accountants and counsel.

5.3 Entire Agreement. This Agreement, including the Exhibits, contains the entire agreement
and understanding of the parties with respect to its subject matter. This Agreement supersedes all
prior arrangements and understandings between the parties, either written or oral, with respect to
its subject matter.

5.4 Binding Effect of Subscription. The Purchaser hereby acknowledges and agrees, subject to
any applicable state securities laws that the subscription and application hereunder are
irrevocable, that the Purchaser is not entitled to cancel, terminate or revoke this Agreement and
that this Agreement shall survive the death or disability of the Purchaser and shall be binding
upon and inure to the benefit of the Purchaser and his heirs, executors, administrators,
successors, legal representatives, and assigns. If the Purchaser is more than one person, the
obligations of the Purchaser hereunder shall be joint and several, and the agreements,
representations, warranties, and acknowledgments herein contained shall be deemed to be made by and
be binding upon each such person and his heirs, executors, administrators, successors, legal
representatives, and assigns.

5.5 Captions. The table of contents and captions contained in this Agreement are for reference
purposes only and are not part of this Agreement.

5.6 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a
written instrument signed, in the case of an amendment, by the Company and the Purchasers holding a
majority of the Securities subscribed for in the Offering or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought (in the case of the Purchasers, such waiver
shall be in writing and approved by a majority of the Purchasers). No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such right.

5.7 Notices. Any notice, demand or other communication which any party hereto may be
required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a)
deposited, postage prepaid, in a United States mail box, stamped, registered or certified mail,
return receipt requested, addressed to such address as may be listed on the books of the Company,
or, if to the Company, the Company’s executive office, or (b) delivered personally at such address.

5.8 Execution. This Agreement may be executed through the use of separate signature pages or
in any number of counterparts, and each of such counterparts shall, or all purposes, constitute one
agreement binding on all parties, notwithstanding that all parties are not signatories to the same
counterpart.

5.9 Severability. Each provision of this Agreement is intended to be severable from every
other provisions, and the invalidity or illegality of any portion hereof, shall not affect the
validity or legality of the remainder hereof.

5.10 Non-Assignment. This Agreement is not transferable or assignable by the Purchaser except
as may be provided herein.

 

13

 

5.11 Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in accordance with
the internal laws of the State of New Jersey, without regard to the principles of conflicts of law
thereof. Each party agrees that all proceedings concerning the interpretations, enforcement and
defense of the
transactions contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the State of New Jersey (the “New Jersey Courts”). Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New Jersey Courts for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any proceeding, any claim that it is not personally subject to the jurisdiction of any New Jersey
Court, or that such proceeding has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served
in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to trial by jury in any proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. If either
party shall commence a proceeding to enforce any provisions of this Agreement, then the prevailing
party in such proceeding shall be reimbursed by the other party for its reasonable attorney’s fees
and other reasonable costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

5.12 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the Company, the Purchasers and their respective successors and permitted assigns.

Signature pages to Subscription Agreement Follows

 

14

 

SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to be executed
by their signature as natural persons or by individuals by their duly authorized officers as of the

 _____ 
day of                     , 2011.

THE COMPANY:

TEAMSTAFF, INC.:

	 	 	 
	 

Zachary Parker,

	 	 
	Chief Executive Officer
	 	 

 

15

 

EXECUTION BY AN INDIVIDUAL

(Not applicable to entities)

IF YOU ARE PURCHASING SECURITIES WITH YOUR SPOUSE, YOU MUST BOTH SIGN THIS SIGNATURE PAGE.

PLEASE INDICATE DESIRED TYPE OF OWNERSHIP OF SECURITIES:

	 	o	 	Individual

	 
	 	o	 	Joint Tenants (rights of survivorship)

	 
	 	o	 	Tenants in Common (no rights of survivorship)

I represent that the foregoing information is true and correct.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      ___, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 
	 

	 	 

(Name of Investor — Please Print)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	 

	 	 

(Name of co-Investor — Please Print)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature of Co-Investor)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

16

 

PARTNERSHIP SIGNATURE PAGE

The undersigned PARTNERSHIP hereby represents and warrants that the person signing this
Subscription Agreement on behalf of the PARTNERSHIP is a general partner of the PARTNERSHIP, has
been duly authorized by the PARTNERSHIP to acquire the Securities and sign this Subscription
Agreement on behalf of the PARTNERSHIP and, further, that the undersigned PARTNERSHIP has all
requisite authority to purchase such Securities and enter into the Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name of Partnership

(Please Type or Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

17

 

CORPORATION/LIMITED LIABILITY COMPANY SIGNATURE PAGE

The undersigned CORPORATION or LIMITED LIABILITY COMPANY hereby represents and warrants that the
person signing this Subscription Agreement on behalf of the CORPORATION or LIMITED LIABILITY
COMPANY has been duly authorized by all requisite action on the part of the CORPORATION or LIMITED
LIABILITY COMPANY to acquire the Securities and sign this Subscription Agreement on behalf of the
CORPORATION or LIMITED LIABILITY COMPANY and, further, that the undersigned CORPORATION or LIMITED
LIABILITY COMPANY has all requisite authority to purchase the Securities and enter into this
Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name of Corporation

Or Limited Liability Company

(Please Type or Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

18

 

TRUST/RETIREMENT PLAN SIGNATURE PAGE

The undersigned TRUST or RETIREMENT PLAN hereby represents and warrants that the persons signing
this Subscription Agreement on behalf of the TRUST or RETIREMENT PLAN are duly authorized to
acquire the Securities and sign this Subscription Agreement on behalf of the TRUST or RETIREMENT
PLAN and, further, that the undersigned TRUST or RETIREMENT PLAN has all requisite authority to
purchase such Securities and enter into the Subscription Agreement.

IN WITNESS WHEREOF, the undersigned has duly executed this Subscription Agreement and agrees to the
terms hereof.

Dated:                      _____, 2011

Subscription Amount: $                    

Number of Shares of Common Stock to be purchased:                     

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title of Trust or Retirement Plan

(Please Type or Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

Signature of Trustee or

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name of
Trustee:	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

Signature of Co-Trustee if
applicable
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name of
Co-Trustee:	 	 	 
	 

	 	 	 	 

(Please Type or Print)
	 	 

	 	 	 
	Exact name Shares are to be issued under:
	 	 
	 

	 	 
	 
	 	 
	Address for Delivery of Certificates
	 	 
	(if not the same as in Questionnaire):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]