Document:

Exhibit107

    

     

    

     

    AGREEMENT
      AND PLAN OF MERGER

     

    

     

    By
      and among

     

    

     

    RESOLVE
      STAFFING, INC.

     

    DIVERSIFIED
      MERGER SUB LLC

     

    and

     

    DIVERSIFIED
      SUPPORT SYSTEMS, LLC

     

    

     

    

    

     

    

     

    As
      of October 1, 2006

    

    TABLE
      OF
      CONTENTS

     

    ARTICLE
      I. THE MERGER

    Section
      1.01 Merger
      into Diversified.

    Section
      1.02 Effective
      Time and Effective Date

    Section
      1.03 Effects
      of the Merger

    Section
      1.04 Articles
      of Organization and Operating Agreement

    Section
      1.05 Managers

    Section
      1.06 Officers

    Section
      1.07 Rights
      and Obligations.

    ARTICLE
      II. CLOSING

    Section
      2.01 Closing

    Section
      2.02 Deliveries
      by Merger Sub to Diversified

    Section
      2.03 Deliveries
      by Diversified to Merger Sub

    Section
      2.04 Conversion
      of Equity.

    Section
      2.05 Surrender
      of Certificates.

    ARTICLE
      III. REPRESENTATIONS AND WARRANTIES OF DIVERSIFIED

    Section
      3.01 Corporate
      Existence and Qualification: Corporate Documents.

    Section
      3.02 Capitalization
      and Ownership

    Section
      3.03 Preemptive
      Rights; Registration Rights

    Section
      3.04 No
      Defaults or Consents

    Section
      3.05 No
      Proceedings

    Section
      3.06 Absence
      of Certain Changes

    Section
      3.07 Insurance

    Section
      3.08 Patents,
      Trademarks, Service Marks and Copyrights.

    Section
      3.09 Title
      to Assets; Condition of Assets.

    Section
      3.10 Compliance
      with Laws

    Section
      3.11 Litigation;
      Default

    Section
      3.12 Other
      Transactions

    ARTICLE
      IV. REPRESENTATIONS AND WARRANTIES OF MERGER SUB AND RESOLVE

    Section
      4.01 Corporate
      Existence and Qualification; Corporate Documents

    Section
      4.02 Authority,
      Approval and Enforceability

    Section
      4.03 No
      Defaults or Consents

    Section
      4.04 No
      Proceedings

    Section
      4.05 Securities

    ARTICLE
      V. SURVIVAL

    Section
      5.01 Survival
      of Representations and Warranties

    ARTICLE
      VI. INDEMNIFICATION

    Section
      6.01 Obligation
      of Diversified to Indemnify

    Section
      6.02 Obligation
      of Merger Sub and Resolve to Indemnify

    Section
      6.03 Notice
      and Opportunity to Defend.

    Section
      6.04 Limitations
      on Indemnification

    ARTICLE
      VII. POST-CLOSING OBLIGATIONS

    Section
      7.01 Further
      Assurances

    Section
      7.02 Access
      to Records

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VIII. MISCELLANEOUS 

    Section
      8.01 Brokers

    Section
      8.02 Costs
      and Expenses

    Section
      8.03 Notices

    Section
      8.04 Governing
      Law

    Section
      8.05 Entire
      Agreement, Amendments and Waivers

    Section
      8.06 Binding
      Effect and Assignment

    Section
      8.07 Remedies

    Section
      8.08 Exhibits
      and Schedules

    Section
      8.09 Multiple
      Counterparts

    Section
      8.10 References

    Section
      8.11 Survival

    ARTICLE
      IX. DEFINITIONS

    Section
      9.01 Affiliate

    Section
      9.02 Company
      Assets

    Section
      9.03 Governmental
      Authorities

    Section
      9.04 Knowledge

    Section
      9.05 Legal
      Requirements

    Section
      9.06 Material
      Adverse Change

    Section
      9.07 Material
      Adverse Effect

    Section
      9.08 Permits

    Section
      9.09 Properties

    Section
      9.10 Regulations

    Section
      9.11 Taxes
      or Tax

    Section
      9.12 Tax
      Returns

    Section
      9.13 Used

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    This
      AGREEMENT AND PLAN OF MERGER (the “Agreement”)
      is
      made and entered into as of October 1, 2006, by and among Resolve Staffing,
      Inc., a Nevada corporation (“Resolve”),
      Diversified Merger Sub LLC, an Ohio limited liability company (“Merger
      Sub”)
      and
      Diversified Support Systems, LLC, an Ohio limited liability company
      (“Diversified”).
      

     

    Preliminary
      Statements

     

    A.  The
      issued and outstanding equity of Diversified is set forth on Exhibit
      A
      hereto;
      and

     

    B.  Resolve
      owns 100% of the issued and outstanding stock of Merger Sub; and

     

    C.  It
      is
      proposed that Merger Sub be merged with and into Diversified, with Diversified
      as the surviving company (the “Merger”),
      and
      that the presently issued and outstanding equity, without par value, of
      Diversified be converted into merger consideration as set forth herein;
      and

     

    D.  The
      sole
      member of Diversified and the sole member of Merger Sub have each approved
      the
      Merger upon the terms and conditions set forth herein and have approved this
      Agreement; and

     

    E.  Diversified
      and Merger Sub desire to enter into and carry out the transactions contemplated
      by this Agreement in accordance with the terms hereof, and the provisions of
      the
      Ohio Revised Code; and

     

    F.  The
      parties intend that the Merger shall qualify as a reorganization within the
      meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended
      (the "Internal
      Revenue Code").

     

    Capitalized
      terms used herein but not defined herein shall have the respective meanings
      given such terms in Article IX hereof.

     

    Agreement

     

    In
      consideration of the premises, mutual covenants and agreements contained herein
      and the benefits to accrue to the parties hereto, and subject to the
      satisfaction or waiver of the conditions contained herein, the parties hereto
      hereby agree as follows:

     

    ARTICLE
      I.  

    THE
      MERGER

    Section
      1.01  Merger
      into Diversified.

     

    At
      the
      Effective Time on the Effective Date (each as hereinafter defined), Merger
      Sub
      shall be merged with and into Diversified, with Diversified (hereinafter
      sometimes called the “Surviving
      Company”)
      as the
      surviving company of the Merger. Following the Effective Time,

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
      corporate existence of Diversified shall continue unaffected and unimpaired,
      and
      as the Surviving Company of the Merger, Diversified shall continue to be a
      limited liability company governed by the laws of the State of Ohio. On the
      Closing Date, Diversified and Merger Sub shall cause a Certificate of Merger
      to
      be executed and filed with the Secretary of State of Ohio in form required
      by
      the Ohio Revised Code (the “Ohio
      Certificate of Merger”).

     

    Section
      1.02  Effective
      Time and Effective Date

     

    .
      The
      effective date of the Merger shall be October 1, 2006 (the “Effective
      Date”),
      and
      the effective time of the Merger shall be 12:01 a.m. on October 1, 2006 (the
      “Effective
      Time”).

     

    Section
      1.03  Effects
      of the Merger

     

    . The
      Merger shall have the effects set forth in the Ohio Revised Code, as
      amended.

     

    Section
      1.04  Articles
      of Organization and Operating
      Agreement

     

    . 

     

    (a)  The
      articles of organization of Diversified, as in effect immediately prior to
      the
      Effective Time, shall be the articles of organization of the Surviving Company
      until thereafter changed or amended as provided therein or by applicable
      law.

     

    (b)  The
      operating agreement of Diversified as in effect immediately prior to the
      Effective Time shall be the operating agreement of the Surviving Company, until
      thereafter changed or amended as provided therein or by applicable
      law.

     

    Section
      1.05  Managers

     

    .
      The
      managers of the Surviving Company from and after the Effective Time, and until
      the earlier of their respective death, resignation or removal or until their
      respective successors are duly elected and qualified, as the case may be, shall
      be the managers of Diversified.

     

    Section
      1.06  Officers

     

    .
      The
      officers of the Surviving Company, if any, from and after the Effective Time,
      and until the earlier of their respective death, resignation or removal or
      until
      their respective successors are duly elected and qualified, as the case may
      be,
      shall be the officers of Diversified.

     

    Section
      1.07  Rights
      and Obligations.

     

    At
      the
      Effective Time, the separate existence of Merger Sub shall cease, and in
      accordance with the terms of this Agreement, Diversified shall possess and
      be
      vested with all of the rights, privileges, franchises, immunities and powers
      and
      all property (real, personal or mixed) of Merger Sub, debts due to Merger Sub,
      choses in action and all other things belonging to Merger Sub, and Diversified
      shall be subject to all of the restrictions, liabilities, disabilities and
      duties of Merger Sub.

     

    The
      identity, existence, purposes, powers, objects, franchises, privileges, rights
      and immunities of Diversified shall continue unaffected and unimpaired by the
      Merger.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    CLOSING

     

    Section
      1.08  Closing

     

    .
      The
      closing of the transactions contemplated hereby (the “Closing”)
      shall
      be held as of 12:01 a.m., as of October 1, 2006 at the offices of Taft,
      Stettinius & Hollister LLP, 425 Walnut Street, Suite 1800, Cincinnati, Ohio
      45202, unless another date or place is agreed to in writing by the parties
      hereto. The date upon which the Closing occurs is hereinafter referred to as
      the
“Closing
      Date.”

     

    Section
      1.09  Deliveries
      by Merger Sub to Diversified

     

    .
      At the
      Closing, Merger Sub shall deliver to Diversified:

     

    (a)  the
      resignations of all officers and managers of Merger Sub;

     

    (b)  the
      stock
      books, stock ledgers or other records reflecting the ownership of all
      outstanding membership units, minute books and corporate seals, if any of Merger
      Sub;

     

    (c)  a
      certificate of the sole member of Merger Sub certifying, as complete and
      accurate as of the Closing, as to attached copies of the Articles of
      Organization of Merger Sub and all necessary action on behalf of Merger Sub
      approving its execution, delivery and performance of this
      Agreement;

     

    (d)  a
      certificate of good standing of Merger Sub issued by the Secretary of State
      of
      Ohio;

     

    (e)  a
      certificate of good standing of Resolve issued by the Secretary of State of
      the
      State of Nevada;

     

    (f)  certificates
      for shares of Resolve Common Stock (defined below) issued in accordance with
      Section 2.04; and

     

    (g)  a
      promissory note, duly executed by Resolve, in accordance with Section 2.04.
      

     

    Section
      1.10  Deliveries
      by Diversified to Merger
      Sub

     

    .
      At
      the
      Closing, Diversified shall deliver to Merger Sub:

     

    (a)  a
      certificate of the sole member of Diversified certifying, as complete and
      accurate as of the Closing, as to attached copies of the Articles of
      Organization and Operating Agreement of Diversified and all necessary limited
      liability company action on behalf of Diversified approving its execution,
      delivery and
      performance of this Agreement; and

     

    (b)  a
      certificate of good standing of Diversified issued by the Secretary of State
      of
      the State of Ohio. 

     

    Section
      1.11  Conversion
      of Equity.

     

    (a)  At
      the
      Effective Time on the Effective Date, (i) all membership units of Diversified
      (“Diversified
      Equity”)
      issued
      and outstanding immediately prior thereto and owned by Ronald E. Heineman shall
      be converted into the right to receive, collectively, for all Diversified Equity
      so converted (A) a promissory note from Resolve in the principal amount of
      $23,078, and (B) 204,049 shares of Resolve Common Stock (collectively, the
      “Diversified
      Merger Consideration”).
      On
      the Closing Date, Resolve will send irrevocable instructions to its transfer
      agent to issue a certificate to Ronald E. Heineman representing 204,049 shares
      of Resolve Common Stock to be issued hereunder. For purposes of this Agreement,
      the shares of Resolve Stock being issued hereunder are valued at $2.00 per
      share.

     

    (b)  The
      shares of Resolve Common Stock to be issued as set forth in the above paragraph
      shall not be registered under state or federal securities laws but shall qualify
      as exempt from registration under Regulation D promulgated under the Securities
      Act of 1933 (“Act”)
      or
      other recognized exemptions from registration, and as such, shall be deemed
      to
      be restricted securities as defined in Rule 144(a)(3) of the Act. As such,
      the
      Resolve Common Stock shall include a customary form of restrictive legend which
      indicates that the shares may not be resold, transferred, pledged or
      hypothecated by the holder(s) thereof unless such shares are registered under
      the Act or in accordance with a legal opinion permitting such sale or transfer,
      which legal opinion shall be in form and substance acceptable to counsel for
      Resolve.

     

    (c)  All
      equity of Merger Sub outstanding at the Effective Time shall be cancelled as
      of
      the Effective Time.

     

    Section
      1.12  Surrender
      of Certificates.

     

    From
      and
      after the Effective Time, each holder of certificates representing units of
      Diversified Common Stock converted by virtue of the Merger into the right to
      receive merger consideration, upon surrender of such certificates to Resolve
      (the “Exchange
      Agent”),
      shall
      be entitled forthwith to receive in exchange therefor, respectively, only the
      Diversified Merger Consideration to which such holder is entitled pursuant
      to
      the terms of this Agreement. Such conversion shall be complete and effective
      at
      the Effective Time without regard to the date or dates upon which outstanding
      certificates of common stock are surrendered for the applicable merger
      consideration.

     

    ARTICLE
      II.  

    REPRESENTATIONS
      AND WARRANTIES OF DIVERSIFIED

    Subject
      to the limitations of Section 6.04 hereof, Diversified represents and warrants
      to Merger Sub as of the Closing Date as set forth in this Article:

     

    Section
      2.01  Corporate
      Existence and Qualification: Corporate Documents.

     

    (a)  Diversified
      is duly organized, validly existing and in good standing under the laws of
      its
      state of incorporation and is not required to be qualified to do business as
      a
      foreign entity in any other jurisdiction where the failure to so qualify would
      have a material adverse

     

    (b)  effect
      on
      it. Diversified has all requisite limited liability company power and authority
      to own its Properties and carry on its business as presently conducted. The
      copies of the Articles of Organization and Operating Agreement of Diversified
      attached to the Certificate for Diversified delivered pursuant to Section
      2.04(c) are complete and reflect all amendments thereto through the date
      hereof.

     

    (c)  The
      stock
      and minute books of Diversified have been made available to Merger Sub for
      review and contain a complete and accurate record of all members of Diversified
      and all material actions of the members and managers (and any committees
      thereof) taken at meetings of members or managers of Diversified or by written
      consent.

     

    (d)  Diversified
      has no subsidiaries, participates in any partnership or joint venture, or owns
      any outstanding capital stock of any other entity.

     

    Section
      2.02  Capitalization
      and Ownership

     

    .
      As of
      the date of this Agreement, all issued and outstanding membership units of
      Diversified are owned of record and beneficially as set forth on Exhibit
      A
      hereto.
      All of the presently outstanding equity of Diversified has been validly
      authorized and issued and is fully paid and non-assessable. Diversified has
      not
      issued any other shares of its equity and there are no outstanding options,
      warrants, subscriptions or other rights or obligations to purchase or acquire
      any of such equity, nor any outstanding securities convertible into or
      exchangeable for such equity. Except as contemplated under this Agreement,
      or as
      set forth in Schedule
      3.02
      with
      respect to the Articles of Organization, Operating Agreement and certain
      agreements, there are no agreements to which Diversified or its members is
      a
      party regarding the issuance, registration, voting or transfer of its
      outstanding equity. No dividends are accrued but unpaid on any equity of
      Diversified.

     

    Section
      2.03  Preemptive
      Rights; Registration Rights

     

    .
      Diversified’s Articles of Organization do not afford pre-emptive rights to any
      member. There has been no equity of Diversified issued to which preemptive
      rights accrued or are outstanding. There are no registration rights affecting
      the issuance or sale of equity of Diversified.

     

    Section
      2.04  No
      Defaults or Consents

     

    .
      Neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (i)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Organization or Operating Agreement of Diversified;

     

    (ii)  violate
      in any material respect any Legal Requirements applicable to
      Diversified;

     

    (iii)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of Diversified; or

     

    (iv)  require
      Diversified to obtain or make any waiver, consent, action, approval or
      authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority except where
      the failure to so obtain or make would not have a Material Adverse
      Effect.

     

    (v)  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of Diversified,
      threatened before any Governmental Authority seeking to restrain Diversified
      or
      prohibit its entry into this Agreement or prohibit the Closing, or seeking
      damages against Diversified or its Properties, as a result of the consummation
      of the transactions contemplated by this Agreement.

     

    Section
      2.05  Absence
      of Certain Changes

     

    .
      Since
      August 31, 2006, Diversified has not:

     

    (a)  suffered
      any Material Adverse Change;

     

    (b)  contracted
      for the purchase of any capital assets having a cost in excess of $10,000 or
      paid any capital expenditures in excess of $10,000, except in the ordinary
      course of business consistent with past practice;

     

    (c)  incurred
      any indebtedness for borrowed money or issued or sold any debt securities,
      except in the ordinary course of business consistent with past
      practice;

     

    (d)  incurred
      or discharged any material liabilities or obligations except in the ordinary
      course of business consistent with past practice;

     

    (e)  paid
      any
      amount on any indebtedness prior to the due date, forgiven or canceled any
      material debts or claims or released or waived any material rights or claims,
      except in the ordinary course of business consistent with past
      practice;

     

    (f)  mortgaged,
      pledged or subjected to any security interest, lien, lease or other charge
      or
      encumbrance any of its Properties or Company Assets;

     

    (g)  suffered
      any damage or destruction to or loss of any Company Assets (whether or not
      covered by insurance) that has materially adversely affected its
      business;

     

    (h)  acquired
      or disposed of any material Company Assets except in the ordinary course of
      business consistent with past practice;

     

    (i)  made
      any
      payments to any person or entity except in the ordinary course of business
      consistent with past practice or loaned any money to any person or entity that
      is not reflected in the Financial Statements;

     

    (j)  formed
      or
      acquired or disposed of any interest in any corporation, partnership, joint
      venture or other entity;

     

    (k)  redeemed,
      purchased or otherwise acquired, or sold, granted or otherwise disposed of,
      directly or indirectly, any of its capital stock or securities or any rights
      to
      acquire such capital stock or securities, or agreed to change the terms and
      conditions of any such rights or paid any dividends or made any distribution
      to
      the holders of its capital stock;

     

    (l)  entered
      into or terminated any material agreement with any person or group, or modified
      or amended in any material respect the terms of any existing agreement except
      in
      the ordinary course of business consistent with past practice;

     

    (m)  received
      any indication from any customer or supplier that it intends to discontinue
      or
      change the terms of its relationship with Diversified;

     

    (n)  materially
      changed its accounting methods; or

     

    (o)  entered
      into any agreement (written or oral) to do any of the foregoing.

     

    Section
      2.06  Insurance

     

    .
      Diversified has previously made available to Resolve a list of all insurance
      policies (including self insurance arrangements) with respect to the property,
      assets and operations of Diversified’s business and a summary of the loss
      experience of Diversified. All such insurance policies and arrangements are
      in
      full force and effect. There are no pending claims by Diversified relating
      to
      its business under such insurance policies as to which the insurers listed
      thereon have denied liability.

     

    Section
      2.07  Patents,
      Trademarks, Service Marks and Copyrights.

     

    (a)  Diversified
      owns all material patents, trademarks, service marks and copyrights
      (collectively “Proprietary
      Rights”),
      if
      any, necessary to conduct its business, or possesses adequate licenses or other
      rights (except for licenses for the use of non-customized software), if any,
      therefor, without conflict with the rights of others. 

     

    (b)  To
      its
      knowledge, Diversified has the sole and exclusive right to use the Proprietary
      Rights without infringing or violating the rights of any third parties. To
      its
      knowledge, use of the Proprietary Rights does not require the consent of any
      other person and the Proprietary Rights are freely transferable. No claim has
      been asserted by any person to the ownership of or right to use any material
      Proprietary Right or challenging or questioning the validity or effectiveness
      of
      any license or agreement constituting a part of any material Proprietary Right.
      To its knowledge, each of the Proprietary Rights is valid and subsisting, has
      not been canceled, abandoned or otherwise terminated and, if applicable, has
      been duly issued or filed.

     

    Section
      2.08  Title
      to Assets; Condition of Assets.

     

    (a)  Diversified
      owns no real property.

     

    (b)  Diversified
      has good and marketable title to its Company Assets (other than those disposed
      of in the ordinary course of business), free and clear of all security
      interests, liens, charges and other encumbrances, except for liens for taxes
      not
      yet due and payable or being contested in good faith in appropriate proceedings.
      All material facilities, machinery, equipment, fixtures, vehicles and other
      properties owned, leased or used by Diversified are in good operating condition
      and repair, normal wear and tear excepted, are adequate and sufficient for
      the
      business of Diversified and conform in all material respects with all applicable
      ordinances, regulations and laws relating to their use and
      operation.

     

    (c)  No
      shareholder of Diversified has any interest in any of the Company Assets except
      for salary, and no shareholder of Diversified has any financial interest in
      any
      transaction of Diversified.

     

    (d)  Compliance
      with Laws

     

    .
      Diversified has all material franchises, Permits, licenses and other rights
      and
      privileges necessary to permit it to own its Properties and to conduct its
      businesses as presently conducted. The business and operations of Diversified
      have been and are being conducted in all material respects in accordance with
      all applicable laws, rules and regulations, and Diversified is not in violation
      of any judgment, law or regulation except where any such violation would not
      have a Material Adverse Effect. Diversified has not received any written notice
      from any Governmental Authority or any other person or entity regarding any
      actual, alleged or potential violation or failure to comply in any material
      respect with any Legal Requirement.

     

    Section
      2.09  Litigation;
      Default

     

    .
      There
      are no claims, actions, suits, investigations or proceedings against Diversified
      pending or, to the Knowledge of Diversified, threatened in any court or before
      or by any Governmental Authority, or before any arbitrator, other than worker’s
      compensation claims that are covered by Diversified’s self insurance
      arrangement. 

     

    Section
      2.10  Other
      Transactions

     

    .
      Except
      as contemplated by this Agreement, Diversified has not entered into any
      agreements or arrangements and there are no pending offers or discussions
      concerning or providing for the merger or consolidation of Diversified, the
      sale
      of all or any substantial portion of its assets, the sale by Diversified of
      any
      securities of Diversified or any similar transaction affecting
      Diversified.

     

    ARTICLE
      III.  

    REPRESENTATIONS
      AND WARRANTIES OF MERGER
      SUB AND RESOLVE

    Each
      of
      Merger Sub and Resolve, jointly and severally, represents and warrants to
      Diversified as of the Closing Date that:

     

    Section
      3.01  Corporate
      Existence and Qualification; Corporate Documents

     

    . 
      Each of
      Merger Sub and Resolve is duly organized, validly existing and in good standing
      under the laws of its state of jurisdiction, and is not required to be qualified
      to do business as a foreign corporation in any other jurisdiction where the
      failure to so qualify would have a material adverse effect on either of them.
      Each of Merger Sub and Resolve has all required corporate or limited liability
      company power and authority to own its properties and to carry on its business
      as presently conducted.

     

    Section
      3.02  Authority,
      Approval and Enforceability

     

    .
      This
      Agreement and each other agreement to which Merger Sub or Resolve is a party
      have been duly executed and delivered by such entity, and each of Merger Sub
      and
      Resolve has all requisite corporate or limited liability company power and
      legal
      authority to execute and deliver this Agreement and each other agreement to
      which it is a party, to consummate the transactions contemplated hereby and
      thereby, and to perform its obligations hereunder and thereunder. This Agreement
      and each other agreement to which Merger Sub or Resolve is a party will
      constitute the legal, valid and binding obligations of such entity, enforceable
      in accordance with their respective terms, except as such enforceability may
      be
      limited by any applicable bankruptcy, insolvency, reorganization, moratorium
      or
      other similar laws affecting the enforcement of creditors' rights generally,
      and
      except as the availability of equity remedies may be limited by the application
      of general

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    principles
      of equity (regardless of whether such equitable principles are applied in a
      proceeding at law or in equity).

     

    Section
      3.03  No
      Defaults or Consents

     

    .
      Neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (a)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Organization or Code or Regulations or Bylaws of Merger Sub
      or
      Resolve;

     

    (b)  violate
      any Legal Requirements applicable to Merger Sub or Resolve;

     

    (c)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of Merger Sub or Resolve; or

     

    (d)  require
      Merger Sub or Resolve to obtain or make any waiver, consent, action, approval
      or
      authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority

     

    Section
      3.04  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of each of
      Merger Sub and Resolve, threatened before any Governmental Authority seeking
      to
      restrain Merger Sub or Resolve or prohibit either's entry into this Agreement
      or
      prohibit the Closing, or seeking damages against Merger Sub or Resolve or their
      Properties, as a result of the consummation of the transaction contemplated
      by
      this Agreement.

     

    Section
      3.05  Securities

     

    .
      The
      authorized capital stock of Resolve is 50,000,000 shares of common stock, par
      value $0.0001 per share, and 10,000,000 shares of preferred stock, par value
      $0.0001 per share. The shares of Resolve Common Stock to be issued hereunder
      have been duly authorized and, when issued in accordance with the terms of
      this
      Agreement, will be validly issued, fully paid and non-assessable and will be
      issued in compliance with all applicable federal and state securities laws.
      There are no outstanding options, warrants, subscriptions or other rights or
      obligations to purchase or acquire any of shares of Resolve Common Stock, nor
      any outstanding securities convertible into or exchangeable for such shares.
      

     

    ARTICLE
      IV.  

    SURVIVAL

    Section
      4.01  Survival
      of Representations and Warranties

     

    .
      Notwithstanding any right of any party hereto fully to investigate the affairs
      of any other party hereto and notwithstanding any knowledge of facts determined
      or determinable by any party hereto pursuant to such investigation or right
      of
      investigation, each of Merger Sub and Resolve, on the one hand, and Diversified,
      on the other hand, has the right to rely fully upon the representations,
      warranties, covenants and agreements of Merger Sub and Resolve and Diversified,
      as the case may be, contained in this Agreement, or in any certificate delivered
      pursuant to any of the foregoing; provided, that no party hereto shall be
      entitled to rely on any representation or warranty made by any other party
      hereto herein to the extent that such party has actual knowledge that such
      representation or warranty is untrue or incorrect in any material respect.
      All
      such representations

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and
      warranties shall survive the execution and delivery of this Agreement and the
      Closing hereunder, and, except as otherwise specifically provided in this
      Agreement, shall thereafter terminate and expire at the end of the twenty fourth
      (24th) month following the Closing Date, subject to the limitations on
      indemnification set forth in Section 6.04 hereof. Notwithstanding the foregoing,
      the representations and warranties set forth in Sections 3.01, 3.02, 3.09(b),
      4.01 and 4.02, and all covenants and agreements, shall survive indefinitely
      and
      shall not terminate or expire. 

     

    ARTICLE
      V.  

    INDEMNIFICATION

    Section
      5.01  Obligation
      of Diversified to Indemnify

     

    .
      Subject
      to the limitations contained in Article V and Section 6.04 hereof, Diversified
      agrees to indemnify, defend and hold harmless Merger Sub and Resolve (and their
      Affiliates, successors and assigns and their respective officers and directors)
      from and against all losses, liabilities, damages, deficiencies, costs or
      expenses (including interest, penalties and reasonable attorneys’ fees and
      disbursements, but offset by any proceeds from insurance and taking into account
      the present value of any tax savings to Merger Sub and Resolve resulting from
      such losses, liabilities, damages, deficiencies, costs or expenses)
      (“Losses”)
      based
      upon, arising out of or otherwise in respect of any inaccuracy in or any breach
      of any representation, warranty, covenant or agreement of Diversified contained
      in this Agreement.

     

    Section
      5.02  Obligation
      of Merger Sub and Resolve to Indemnify

     

    .
      Each of
      Merger Sub and Resolve, jointly and severally, agrees to indemnify, defend
      and
      hold harmless Diversified from and against any Losses based upon, arising out
      of
      or otherwise in respect of any inaccuracy in or any breach of any
      representation, warranty, covenant or agreement of Merger Sub or Resolve
      contained in this Agreement.

     

    Section
      5.03  Notice
      and Opportunity to Defend.

     

    (a)  Notice
      of Asserted Liability.
      Promptly after receipt by any party hereto (the “Indemnitee”)
      of
      notice of any demand, claim or circumstances which, with the lapse of time,
      would or might give rise to a claim or the commencement (or threatened
      commencement) of any action, proceeding or investigation (an “Asserted
      Liability”)
      that
      may result in a Loss, the Indemnitee shall give notice thereof (the
“Claims
      Notice”)
      to any
      other party (or parties) obligated to provide indemnification pursuant to
      Section 6.01 or 6.02 (the “Indemnifying Party”). The Claims Notice shall
      describe the Asserted Liability in reasonable detail and shall indicate the
      amount (estimated, if necessary and to the extent feasible) of the Loss that
      has
      been or may be suffered by the Indemnitee.

     

    (b)  Opportunity
      to Defend.
      The
      Indemnifying Party may elect to compromise or defend, at its own expense and
      by
      its own counsel, any Asserted Liability. If the Indemnifying Party elects to
      compromise or defend such Asserted Liability, it shall within thirty (30) days
      (or sooner, if the nature of the Asserted Liability so requires) notify the
      Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the
      expense of the Indemnifying Party, in the compromise of, or defense against,
      such Asserted Liability at the sole cost of the

     

    (c)  Indemnifying
      Party. If the Indemnifying Party elects not to compromise or defend the Asserted
      Liability, fails to notify the Indemnitee of its election as herein provided
      or
      contests its obligation to indemnify under this Agreement, the Indemnitee may
      pay, compromise or defend such Asserted Liability. Notwithstanding the
      foregoing, neither the Indemnifying Party nor the Indemnitee may settle or
      compromise any claim over the objection of the other, provided, however, that
      consent to settlement or compromise shall not be unreasonably withheld. In
      any
      event, the Indemnitee and the Indemnifying Party may participate (but not
      control), at their own expense, in the defense of such Asserted Liability.
      If
      the Indemnifying Party chooses to defend the claim, the Indemnitee shall make
      available to the Indemnifying Party any books, records or other documents within
      its control that are necessary or appropriate for such defense.

     

    Section
      5.04  Limitations
      on Indemnification

     

    .
      The
      indemnification provided for in Sections 6.01 and 6.02 shall be subject to
      the
      following limitations:

     

    (a)  Diversified
      shall not be obligated to pay any amounts for indemnification under this Article
      VI arising out of any Losses based upon, arising out of or otherwise in respect
      of any inaccuracy or breach disclosed to Merger Sub and Resolve prior to the
      Closing.

     

    (b)  Neither
      Diversified nor Merger Sub and Resolve shall be obligated to pay any amounts
      for
      indemnification for breach of a representation or warranty under this Article
      VI, except those based upon, arising out of or otherwise in respect of Section
      3.01, 3.02, 3.09(b), 4.01, or 4.02 hereof (which shall be indemnifiable from
      the
      first dollar), until the aggregate indemnification payments, exclusive of those
      payable with respect to Sections 3.01, 3.02, 3.09(b), 4.01, or 4.02 equals
      $1,000,000 (the “Deductible”),
      whereupon Merger Sub and Resolve, or Diversified, as the case may be, shall
      be
      obligated to pay any indemnification payments, in excess of the Deductible,
      in
      full. This Section 6.04(b) will not apply to any breach of any representation
      and warranty of which the breaching party had Knowledge at any time prior to
      the
      date on which such representation and warranty is made or any intentional breach
      by any party of any covenant or obligation.

     

    (c)  After
      the
      Closing, the indemnification rights set forth in this Article VI shall be each
      party's sole and exclusive remedy against the other party for any breach of
      any
      representation, warranty or covenant contained in this Agreement.
      Notwithstanding the foregoing, nothing herein shall prevent any party from
      bringing an action based upon allegations of fraud in connection with this
      Agreement.

     

    ARTICLE
      VI.  

    POST-CLOSING
      OBLIGATIONS

    Section
      6.01  Further
      Assurances

     

    .
      Following the Closing, each of the parties shall execute and deliver such
      documents, and take such other action, as shall be reasonably requested by
      any
      other party hereto to carry out the transactions contemplated by this
      Agreement.

     

    Section
      6.02  Access
      to Records

     

    .
      From
      and after the Closing, (i) Diversified shall (A) deliver to Resolve all books,
      records, files, agreements and other information relating to

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Diversified,
      and (B) use best efforts to permit Resolve and its authorized employees, agents,
      accountants, legal counsel and other representatives to have access to the
      employees, counsel, accountants and other representatives of Diversified, in
      each case, to the extent and at all times reasonably requested by Resolve for
      the purpose of investigating or defending any claim made against Resolve in
      connection with periods ending on or before the Closing Date, and (ii) Resolve
      shall (A) permit Diversified and its authorized employees, agents, accountants,
      legal counsel and other representatives to have access to the books, records,
      files, agreements and other information of or regarding Diversified, and (B)
      use
      its best efforts to permit Diversified and its authorized employees, agents,
      accountants, legal counsel and other representatives to have access to the
      employees, counsel, accountants and other representatives of Resolve and its
      Affiliates, in each case, to the extent and at all times reasonably requested
      by
      Diversified, for the purpose of (I) investigating or defending any claim made
      against Diversified in connection with Article VI, or (II) with respect to
      any
      pre-Closing Date tax matters affecting Diversified.

     

    ARTICLE
      VII.  

    MISCELLANEOUS

    Section
      7.01  Brokers

     

    .
      Regardless of whether the Closing shall occur, (i) Diversified shall indemnify
      and hold harmless Merger Sub and Resolve from and against any and all liability
      for any brokers or finders' fees arising with respect to brokers or finders
      retained or engaged by Diversified in respect of the transactions contemplated
      by this Agreement, and (ii) Merger Sub and Resolve, jointly and severally,
      shall
      indemnify and hold harmless Diversified from and against any and all liability
      for any brokers' or finders' fees arising with respect to brokers or finders
      retained or engaged by Merger Sub and/or Resolve in respect of the transactions
      contemplated by this Agreement.

     

    Section
      7.02  Costs
      and Expenses

     

    .
      Each of
      the parties to this Agreement shall bear its own expenses incurred in connection
      with the negotiation, preparation, execution and closing of this Agreement
      and
      the transactions contemplated hereby.

     

    Section
      7.03  Notices

     

    .
      Any
      notice, request, instruction, correspondence or other document to be given
      hereunder by any party hereto to another (herein collectively called
“Notice”)
      shall
      be in writing and delivered personally or mailed by registered or certified
      mail, postage prepaid and return receipt requested, or by telecopier, as
      follows:

     

    Merger
      Sub or Resolve: Resolve
      Staffing, Inc.

    ELS
      Human
      Resource Solutions, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Telecopy
      No.: (513) 943-4908

    

    With
      a
      copy to:  Greg
      Bartko, Esq.

    3475
      Lenox Road, Suite 400

    Atlanta,
      Georgia 30326

    Telecopy
      No.: (404) 238-0551

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Diversified:   c/o
      Employee Leasing Services, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Attention:
      Ronald E. Heineman

    Telecopy
      No.: (513) 943-4908

    

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

    Taft,
      Stettinius & Hollister LLP

    425
      Walnut Street, Suite 1800

    Cincinnati,
      OH 45202-3957

    Telecopy
      No.: 513-381-0205

    

    Each
      of
      the above addresses for notice purposes may be changed by providing appropriate
      notice hereunder. Notice given by personal delivery or registered mail shall
      be
      effective upon actual receipt. Notice given by telecopier shall be effective
      upon actual receipt if received during the recipient's normal business hours,
      or
      at the beginning of the recipient's next normal business day after receipt
      if
      not received during the recipient's normal business hours. All Notices by
      telecopier shall be confirmed by the sender thereof promptly after transmission
      in writing by registered mail or personal delivery. Anything to the contrary
      contained herein notwithstanding, Notices to any party hereto shall not be
      deemed effective with respect to such party until such Notice would, but for
      this sentence, be effective both as to such party and as to all other persons
      to
      whom copies are provided above to be given.

     

    Section
      7.04  Governing
      Law

     

    .
      The
      provisions of this Agreement and the documents delivered pursuant hereto shall
      be governed by and construed in accordance with the laws of the State of Ohio
      (excluding any conflict of law rule or principle that would refer to the laws
      of
      another jurisdiction).

     

    Section
      7.05  Entire
      Agreement, Amendments and Waivers

     

    .
      This
      Agreement, together with all exhibits and schedules attached hereto, constitutes
      the entire agreement between the parties hereto pertaining to the subject matter
      hereof and supersedes all prior agreements, understandings, negotiations and
      discussions, whether oral or written, of the parties, and there are no
      warranties, representations or other agreements between the parties in
      connection with the subject matter hereof except as set forth specifically
      herein or contemplated hereby. No supplement, modification or waiver of this
      Agreement shall be binding unless executed in writing by the party to be bound
      thereby. No waiver of any of the provisions of this Agreement shall be deemed
      or
      shall constitute a waiver of any other provision hereof (regardless of whether
      similar), nor shall any such waiver constitute a continuing waiver unless
      otherwise expressly provided.

     

    Section
      7.06  Binding
      Effect and Assignment

     

    .
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, executors, legal representatives, permitted
      successors and assigns; but neither this Agreement nor any of the rights,
      benefits or obligations hereunder shall be assigned, by operation of law or
      otherwise, by any party hereto without the prior written consent of the other
      party. Nothing in this Agreement, express or implied, is intended to confer
      upon
      any person or entity, other than the parties hereto

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and
      their
      respective heirs, executors, legal representatives, permitted successors and
      assigns, any rights, benefits or obligations hereunder.

     

    Section
      7.07  Remedies

     

    .
      The
      rights and remedies provided by this Agreement are cumulative, and the use
      of
      any one right or remedy by any party hereto shall not preclude or constitute
      a
      waiver of its right to use any or all other remedies provided by this
      Agreement.

     

    Section
      7.08  Exhibits
      and Schedules

     

    .
      The
      exhibits and schedules referred to herein are attached hereto and incorporated
      herein by this reference.

     

    Section
      7.09  Multiple
      Counterparts

     

    .
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    Section
      7.10  References

     

    .
      Whenever required by the context, and as used in this Agreement, the singular
      number shall include the plural and pronouns and any variations thereof shall
      be
      deemed to refer to the masculine, feminine, neuter, singular or plural, as
      the
      identification of the person may require. References to monetary amounts and
      specific named statutes are intended to be and shall be construed as references
      to United States dollars and statutes of the United States, respectively, unless
      the context otherwise requires.

     

    Section
      7.11  Survival

     

    .
      Any
      provision of this Agreement which contemplates performance or the existence
      of
      obligations after the Closing Date, and any and all representations and
      warranties set forth in this Agreement, shall not be deemed to be merged into
      or
      waived by the execution and delivery of the instruments executed at the Closing,
      but shall expressly survive Closing for the time period set forth in Section
      6.01 hereof and shall be binding upon the party or parties obligated thereby
      in
      accordance with the terms of this Agreement, subject to any limitations
      expressly set forth in this Agreement.

     

    ARTICLE
      VIII.  

    DEFINITIONS

    Capitalized
      terms used in this Agreement shall have the respective meanings ascribed to
      such
      terms in this Article IX, unless otherwise defined in this
      Agreement.

     

    Section
      8.01  Affiliate

     

    .
      The
      term “Affiliate”
shall
      mean, with respect to any person, any other person controlling, controlled
      by or
      under common control with such person. The term “control” as used in the
      preceding sentence means, with respect to a corporation, the right to exercise,
      directly or indirectly, more than fifty percent (50%) of the voting rights
      attributable to the shares of the controlled corporation and, with respect
      to
      any person other than a corporation, the possession, directly or indirectly,
      of
      the power to direct or cause the direction of the management or policies of
      such
      person.

     

    Section
      8.02  Company
      Assets

     

    .
      The
      term “Company
      Assets”
shall
      mean, with respect to Diversified, all of the Properties, Contracts and Permits
      Used by Diversified as of the Closing Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Governmental
      Authorities

     

    .
      The
      term “Governmental
      Authorities”
shall
      mean any nation or country (including but not limited to the United States)
      and
      any commonwealth, territory or possession thereof and any political subdivision
      of any of the foregoing, including but not limited to courts, departments,
      commissions, boards, bureaus, agencies, ministries or other
      instrumentalities.

     

    Section
      8.03  Knowledge

     

    .
      The
      term “Knowledge”
shall
      mean the actual knowledge of a party and, in the case of Diversified, of any
      of
      its directors or executive officers with respect to the representation being
      made.

     

    Section
      8.04  Legal
      Requirements

     

    .
      The
      term “Legal
      Requirements”,
      when
      described as being applicable to any person, shall mean any and all laws
      (statutory, judicial or otherwise), ordinances, regulations, judgments, orders,
      directives, injunctions, writs, decrees or awards of, and any contracts with,
      any Governmental Authority, in each case as and to the extent applicable to
      such
      person or such person's business, operations or Properties.

     

    Section
      8.05  Material
      Adverse Change

     

    .
      The
      term “Material
      Adverse Change”
shall
      mean a material adverse change in Diversified’s condition (financial or
      otherwise), operations, results of operations, business, Properties or
      liabilities.

     

    Section
      8.06  Material
      Adverse Effect

     

    .
      The
      term “Material
      Adverse Effect”
shall
      mean a material adverse effect on Diversified’s operations, business,
      Properties, financial condition or results of operations.

     

    Section
      8.07  Permits

     

    .
      The
      term “Permits”
shall
      mean any and all permits or orders under any Legal Requirement or otherwise
      granted by any Governmental Authority.

     

    Section
      8.08  Properties

     

    .
      The
      term “Properties”
shall
      mean any and all properties and assets (real, personal or mixed, tangible or
      intangible).

     

    Section
      8.09  Regulations

     

    .
      The
      term “Regulations”
shall
      mean any and all regulations promulgated by the Department of the Treasury
      pursuant to the Code.

     

    Section
      8.10  Taxes
      or Tax

     

    .
      The
      term “Taxes”
or
      “Tax”
means
      any federal, state, local, or foreign income, gross receipts, license, payroll,
      employment, gift, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including taxes under Code §59A), customs duties,
      capital stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add-on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty, or
      addition thereto, whether disputed or not.

     

    Section
      8.11  Tax
      Returns

     

    .
      The
      term “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    Section
      8.12  Used

     

    .
      The
      term “Used”
shall
      mean, with respect to the Properties, Contracts or Permits of Diversified,
      those
      owned, leased, licensed or otherwise held by

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Diversified
      which were acquired for use or held for use by Diversified in connection with
      Diversified’s business and operations, whether or not reflected on the books of
      account.

     

    

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXECUTED
      as of the date first written above.

     

    DIVERSIFIED
      MERGER SUB LLC

    

    By:
      Resolve Staffing, Inc.,

    sole
      member

     

    By:
      /s/
      Donald Quarterman

    Donald
      E.
      Quarterman

    Director
      and Authorized

    Representative

     

    

    RESOLVE
      STAFFING, INC.

    

    By:_
      /s/ Donald Quarterman 

    Donald
      E.
      Quarterman

    Director
      and Authorized

    Representative

    

    

    DIVERSIFIED
      SUPPORT SYSTEMS, LLC

    

    By:/s/
      Ronald Heineman______________

    Ronald
      E.
      Heineman,

    sole
      member 

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      A

    

    Capitalization

    

    Diversified
      Support Systems, LLC

    

    No.
      of
      Membership Units Owned

    

    Ronald
      E.
      Heineman      100

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
      3.02

    

    AgreementsExhibit 108

    

     

    

     

    AGREEMENT
      AND PLAN OF MERGER

     

    

     

    By
      and among

     

    

     

    ELS
      HUMAN RESOURCE SOLUTIONS, INC.

     

    RESOLVE
      STAFFING, INC.

     

    ELS
      OF DAYTON PREMIER BUSINESS SOLUTIONS, LLC

     

    and

     

    ELS
      ADMINISTRATIVE SERVICES, L.L.C.

     

    

     

    

    

     

    

     

    As
      of October 1, 2006

    

    TABLE
      OF
      CONTENTS

     

    ARTICLE
      I. The Merger

    Section
      1.01 Merger
      into ELS HRS.

    Section
      1.02 Effective
      Time and Effective Date

    Section
      1.03 Effects
      of the Merger

    Section
      1.04 Articles
      of Incorporation and Code of Regulations

    Section
      1.05 Directors

    Section
      1.06 Officers

    Section
      1.07 Rights
      and Obligations.

    ARTICLE
      II. CLOSING

    Section
      2.01 Closing

    Section
      2.02 Deliveries
      by each Constituent Company to ELS HRS

    Section
      2.03 Deliveries
      by ELS HRS to the Constituent Companies

    Section
      2.04 Conversion
      of Equity.

    Section
      2.05 Surrender
      of Certificates.

    ARTICLE
      III. REPRESENTATIONS AND WARRANTIES OF THE CONSTITUENT COMPANIES

    Section
      3.01 Corporate
      Existence and Qualification: Corporate Documents.

    Section
      3.02 Capitalization
      and Ownership

    Section
      3.03 Preemptive
      Rights; Registration Rights

    Section
      3.04 No
      Defaults or Consents

    Section
      3.05 No
      Proceedings

    Section
      3.06 Absence
      of Certain Changes

    Section
      3.07 Insurance

    Section
      3.08 Patents,
      Trademarks, Service Marks and Copyrights.

    Section
      3.09 Title
      to Assets; Condition of Assets.

    Section
      3.10 Compliance
      with Laws

    Section
      3.11 Litigation;
      Default

    Section
      3.12 Other
      Transactions

    ARTICLE
      IV. REPRESENTATIONS AND WARRANTIES OF ELS HRS AND RESOLVE

    Section
      4.01 Corporate
      Existence and Qualification; Corporate Documents

    Section
      4.02 Authority,
      Approval and Enforceability

    Section
      4.03 No
      Defaults or Consents

    Section
      4.04 No
      Proceedings

    Section
      4.05 Securities

    ARTICLE
      V. SURVIVAL

    Section
      5.01 Survival
      of Representations and Warranties

    ARTICLE
      VI. INDEMNIFICATION

    Section
      6.01 Obligation
      of each Constituent Company to Indemnify

    Section
      6.02 Obligation
      of ELS HRS and Resolve to Indemnify

    Section
      6.03 Notice
      and Opportunity to Defend.

    Section
      6.04 Limitations
      on Indemnification

    ARTICLE
      VII. POST-CLOSING OBLIGATIONS

    Section
      7.01 Further
      Assurances

    Section
      7.02 Access
      to Records

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VIII. MISCELLANEOUS 

    Section
      8.01 Brokers

    Section
      8.02 Costs
      and Expenses

    Section
      8.03 Notices

    Section
      8.04 Governing
      Law

    Section
      8.05 Entire
      Agreement, Amendments and Waivers

    Section
      8.06 Binding
      Effect and Assignment

    Section
      8.07 Remedies

    Section
      8.08 Exhibits
      and Schedules

    Section
      8.09 Multiple
      Counterparts

    Section
      8.10 References

    Section
      8.11 Survival

    ARTICLE
      IX. DEFINITIONS

    Section
      9.01 Affiliate

    Section
      9.02 Company
      Assets

    Section
      9.03 Governmental
      Authorities

    Section
      9.04 Knowledge

    Section
      9.05 Legal
      Requirements

    Section
      9.06 Material
      Adverse Change

    Section
      9.07 Material
      Adverse Effect

    Section
      9.08 Permits

    Section
      9.09 Properties

    Section
      9.10 Regulations

    Section
      9.11 Taxes
      or Tax

    Section
      9.12 Tax
      Returns

    Section
      9.13 Used

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    This
      AGREEMENT AND PLAN OF MERGER (the “Agreement”)
      is
      made and entered into as of October 1, 2006, by and among ELS Human Resource
      Solutions, Inc., an Ohio corporation (“ELS
      HRS”),
      Resolve Staffing, Inc., a Nevada corporation (“Resolve”),
      ELS
      of Dayton Premier Business Solutions, LLC, an Ohio limited liability company
      (“Dayton”)
      and
      ELS Administrative Services, L.L.C (“Admin”)(Admin
      and Dayton each a “Constituent
      Company”
and
      collectively the “Constituent
      Companies”).

     

    Preliminary
      Statements

     

    A.  The
      issued and outstanding membership units of the Constituent Companies are set
      forth on Exhibit
      A
      hereto;
      and

     

    B.  Resolve
      owns 100% of the issued and outstanding stock of ELS HRS; and

     

    C.  It
      is
      proposed that each Constituent Company be merged with and into ELS HRS, with
      ELS
      HRS as the surviving corporation (the “Merger”),
      and
      that the presently issued and outstanding membership units of the Constituent
      Companies be converted into merger consideration as set forth herein;
      and

     

    D.  The
      Managers and members of the Constituent Companies and the Board of Directors
      and
      sole shareholder of ELS HRS have each approved the Merger upon the terms and
      conditions set forth herein and have approved this Agreement; and

     

    E.  The
      Constituent Companies and ELS HRS desire to enter into and carry out the
      transactions contemplated by this Agreement in accordance with the terms hereof,
      and the provisions of the Ohio Revised Code; and

     

    F.  The
      parties intend that the Merger shall qualify as a reorganization within the
      meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended
      (the "Internal
      Revenue Code").

     

    Capitalized
      terms used herein but not defined herein shall have the respective meanings
      given such terms in Article IX hereof.

     

    Agreement

     

    In
      consideration of the premises, mutual covenants and agreements contained herein
      and the benefits to accrue to the parties hereto, and subject to the
      satisfaction or waiver of the conditions contained herein, the parties hereto
      hereby agree as follows:

     

    ARTICLE
      I.  

    The
      Merger

    Section
      1.01  Merger
      into ELS HRS.

     

    At
      the
      Effective Time on the Effective Date (each as hereinafter defined), each
      Constituent Company shall be merged with and into ELS HRS, with ELS HRS
      (hereinafter sometimes called the “Surviving
      Corporation”)
      as the
      surviving corporation of the Merger. Following the Effective Time, the corporate
      existence of ELS HRS shall continue unaffected and unimpaired, and as the
      Surviving Corporation of the Merger, ELS HRS shall continue to be a corporation
      governed by the laws of the State of Ohio. On the Closing Date, each Constituent
      Company and ELS HRS shall cause a Certificate of Merger to be executed and
      filed
      with the Secretary of State of Ohio in form required by the Ohio Revised Code
      (the “Ohio
      Certificate of Merger”).

     

    Section
      1.02  Effective
      Time and Effective Date

     

    .
      The
      effective date of the Merger shall be October 1, 2006 (the “Effective
      Date”),
      and
      the effective time of the Merger shall be 12:01 a.m. on October 1, 2006 (the
      “Effective
      Time”).

     

    Section
      1.03  Effects
      of the Merger

     

    . The
      Merger shall have the effects set forth in the Ohio Revised Code, as
      amended.

     

    Section
      1.04  Articles
      of Incorporation and Code of Regulations

     

    . 

     

    (a)  The
      articles of incorporation of ELS HRS, as in effect immediately prior to the
      Effective Time, shall be the articles of incorporation of the Surviving
      Corporation until thereafter changed or amended as provided therein or by
      applicable law.

     

    (b)  The
      code
      of regulations of ELS HRS as in effect immediately prior to the Effective Time
      shall be the code of regulations of the Surviving Corporation, until thereafter
      changed or amended as provided therein or by applicable law.

     

    Section
      1.05  Directors

     

    .
      The
      directors of the Surviving Corporation from and after the Effective Time, and
      until the earlier of their respective death, resignation or removal or until
      their respective successors are duly elected and qualified, as the case may
      be,
      shall be the directors of ELS HRS.

     

    Section
      1.06  Officers

     

    .
      The
      officers of the Surviving Corporation from and after the Effective Time, and
      until the earlier of their respective death, resignation or removal or until
      their respective successors are duly elected and qualified, as the case may
      be,
      shall be the officers of ELS HRS.

     

    Section
      1.07  Rights
      and Obligations.

     

    At
      the
      Effective Time, the separate existence of each Constituent Company shall cease,
      and in accordance with the terms of this Agreement, ELS HRS shall possess and
      be
      vested with all of the rights, privileges, franchises, immunities and powers
      and
      all property (real, personal or mixed) of each Constituent Company, debts due
      to
      each Constituent Company, choses in action and all other things belonging to
      each Constituent Company, and ELS HRS shall be subject to all of the
      restrictions, liabilities, disabilities and duties of ELS HRS.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      identity, existence, purposes, powers, objects, franchises, privileges, rights
      and immunities of ELS HRS shall continue unaffected and unimpaired by the
      Merger.

     

    

     

    ARTICLE
      II.  

    CLOSING

    Section
      2.01  Closing

     

    .
      The
      closing of the transactions contemplated hereby (the “Closing”)
      shall
      be held as of 12:01 a.m. as of October 1, 2006 at the offices of Taft,
      Stettinius & Hollister LLP, 425 Walnut Street, Suite 1800, Cincinnati, Ohio
      45202, unless another date or place is agreed to in writing by the parties
      hereto. The date upon which the Closing occurs is hereinafter referred to as
      the
“Closing
      Date.”

     

    Section
      2.02  Deliveries
      by each Constituent Company to ELS
      HRS

     

    .
      At the
      Closing, each Constituent Company shall deliver to ELS HRS:

     

    (a)  the
      resignations of all officers and members of the board of managers of each
      Constituent Company;

     

    (b)  the
      stock
      books, stock ledgers or other records reflecting the ownership of all
      outstanding membership units, minute books and corporate seals, if any of each
      Constituent Company;

     

    (c)  a
      certificate of the Manager of each Constituent Company certifying, as complete
      and accurate as of the Closing, as to attached copies of the Articles of
      Organization and Operating Agreement of each Constituent Company and all
      necessary action on behalf of each Constituent Company approving its execution,
      delivery and performance of this Agreement; and

     

    (d)  a
      certificate of good standing of each Constituent Company issued by the Secretary
      of State of Ohio.

     

    Section
      2.03  Deliveries
      by ELS HRS to
      the Constituent Companies

     

    .
      At
      the
      Closing, ELS HRS shall deliver to the Constituent Companies:

     

    (a)  a
      certificate of the Secretary of ELS HRS certifying, as complete and accurate
      as
      of the Closing, as to attached copies of the Articles of Incorporation and
      Code
      of Regulations of ELS HRS and all necessary corporate action on behalf of ELS
      HRS approving its execution, delivery and
      performance of this Agreement;

     

    (b)  a
      certificate of good standing of ELS HRS issued by the Secretary of State of
      the
      State of Ohio; 

     

    (c)  a
      certificate of good standing of Resolve issued by the Secretary of State of
      the
      State of Nevada;

     

    (d)  certificates
      for shares of Resolve Common Stock (defined below) issued in accordance with
      Section 2.04; and

     

    (e)  promissory
      notes, duly executed by Resolve, in accordance with Section 2.04. 

     

    Section
      2.04  Conversion
      of Equity.

     

    (a)  Dayton.
      At the
      Effective Time on the Effective Date, (i) all membership units of Dayton issued
      and outstanding immediately prior thereto (“Dayton
      Equity”)
      and
      owned by William J. Walton shall be converted into the right to receive,
      collectively, a promissory note from Resolve in the principal amount of $249,922
      for all Dayton Equity so converted; (ii) all Dayton equity owned by FTJ
      Consulting, LLC shall be converted into the right to receive, collectively,
      250,000 shares of common stock, par value $0.0001 per share of Resolve
      (“Resolve
      Common Stock”)
      for
      all Dayton Equity so converted; (iii) all Dayton Equity owned by Kim Kelly
      shall
      be converted into the right to receive, collectively, 250,000 shares of Resolve
      Common Stock for all Dayton Equity so converted; (iv) all Dayton Equity owned
      by
      Charles Keish, Jr. shall be converted into the right to receive, collectively,
      39,470 shares of Resolve Common Stock for all Dayton Equity so converted; and
      (v) all Dayton Equity owned by Ronald E. Heineman shall be converted into the
      right to receive, collectively, a promissory note from Resolve in the principal
      amount of $249,922 for all Dayton Equity so converted (collectively, the
“Dayton
      Merger Consideration”).
      On
      the Closing Date, Resolve will send irrevocable instructions to its transfer
      agent to issue certificates to FTJ Consulting, LLC, Kim Kelly and Charles Keish,
      Jr. representing 250,000, 250,000 and 39,470 shares of Resolve Common Stock,
      respectively, to be issued hereunder.

     

    (b)  Admin.
      At the
      Effective Time on the Effective Date, (i) all membership units of Admin issued
      and outstanding immediately prior thereto (“Admin
      Equity”)
      and
      owned by William J. Walton shall be converted into the right to receive,
      collectively, a promissory note from Resolve in the principal amount of $284,615
      for all Admin Equity so converted; (ii) all Admin equity owned by Scott D.
      Horne
      shall be converted into the right to receive, collectively, 50,000 shares of
      Resolve Common Stock for all Admin Equity so converted; (iii) all Admin Equity
      owned by Stephen R. Roux shall be converted into the right to receive,
      collectively, 50,000 shares of Resolve Common Stock for all Admin Equity so
      converted; and (iv) all Admin Equity owned by Ronald E. Heineman shall be
      converted into the right to receive, collectively, 97,692 shares of Resolve
      Common Stock and a promissory note from Resolve in the principal amount of
      $89,231 for all Admin Equity so converted (collectively, the “Admin
      Merger Consideration”).
      On
      the Closing Date, Resolve will send irrevocable instructions to its transfer
      agent to issue certificates to Scott D. Horne, Stephen R. Roux and Ronald E.
      Heineman representing 50,000, 50,000 and 97,692 shares of Resolve Common Stock,
      respectively, to be issued hereunder. For purposes of this Agreement, the shares
      of Resolve Stock being issued hereunder are valued at $2.00 per
      share.

     

    (c)  The
      shares of Resolve Common Stock to be issued as set forth in the above paragraphs
      shall not be registered under state or federal securities laws but shall qualify
      as exempt from registration under Regulation D promulgated under the Securities
      Act of 1933 (“Act”)
      or
      other recognized exemptions from registration, and as such, shall be deemed
      to
      be

     

    (d)  restricted
      securities as defined in Rule 144(a)(3) of the Act. As such, the Resolve Common
      Stock shall include a customary form of restrictive legend which indicates
      that
      the shares may not be resold, transferred, pledged or hypothecated by the
      holder(s) thereof unless such shares are registered under the Act or in
      accordance with a legal opinion permitting such sale or transfer, which legal
      opinion shall be in form and substance acceptable to counsel for
      Resolve.

     

    (e)  Shares
      of
      ELS HRS capital stock outstanding at the Effective Time shall not be converted
      or changed as a result of the Merger

     

    Section
      2.05  Surrender
      of Certificates.

     

    From
      and
      after the Effective Time, each holder of certificates, if any, representing
      Dayton Equity and Admin Equity converted by virtue of the Merger into the right
      to receive merger consideration, upon surrender of such certificates to ELS
      HRS
      (the “Exchange
      Agent”),
      shall
      be entitled forthwith to receive in exchange therefor, respectively, only the
      Dayton Merger Consideration or Admin Merger Consideration to which such holder
      is entitled pursuant to the terms of this Agreement. Such conversion shall
      be
      complete and effective at the Effective Time without regard to the date or
      dates
      upon which outstanding certificates are surrendered for the applicable merger
      consideration.

     

    ARTICLE
      III.  

    REPRESENTATIONS
      AND WARRANTIES OF THE
      CONSTITUENT COMPANIES

    Subject
      to the limitations of Section 6.04 hereof, each Constituent Company represents
      and warrants to ELS HRS as of the Closing Date as set forth in this
      Article:

     

    Section
      3.01  Corporate
      Existence and Qualification: Corporate Documents.

     

    (a)  Such
      Constituent Company is duly organized, validly existing and in good standing
      under the laws of its state of organization and is not required to be qualified
      to do business as a foreign entity in any other jurisdiction where the failure
      to so qualify would have a material adverse effect on it. Such Constituent
      Company has all requisite limited liability company power and authority to
      own
      its Properties and carry on its business as presently conducted. The copies
      of
      the Articles of Organization and Operating Agreement of such Constituent Company
      attached to the Manager’s Certificate for such Constituent Company delivered
      pursuant to Section 2.04(c) are complete and reflect all amendments thereto
      through the date hereof.

     

    (b)  The
      minute books of such Constituent Company have been made available to ELS HRS
      for
      review and contain a complete and accurate record of all members of such
      Constituent Company and all material actions of the members and managers (and
      any committees thereof) taken at meetings of members or managers of such
      Constituent Company or by written consent.

     

    (c)  Such
      Constituent Company has no subsidiaries, participates in any partnership or
      joint venture, or owns any outstanding capital stock of any other
      entity.

     

    (d)  Capitalization
      and Ownership

     

    .
      As of
      the date of this Agreement, the entire authorized equity of such Constituent
      Company is set forth on Exhibit
      A
      hereto,
      and all issued and outstanding membership units of such Constituent Company
      are
      owned of record and beneficially as set forth on Exhibit
      A
      hereto.
      All of the presently outstanding membership units of such Constituent Company
      have been validly authorized and issued and are fully paid and non-assessable.
      Such Constituent Company has not issued any other equity, and there are no
      outstanding options, warrants, subscriptions or other rights or obligations
      to
      purchase or acquire any of such equity, nor any outstanding securities
      convertible into or exchangeable for such equity. Except as contemplated under
      this Agreement, or as set forth in Schedule
      3.02
      with
      respect to the Articles of Organization, Operating Agreement and certain
      agreements, there are no agreements to which such Constituent Company or its
      members is a party regarding the issuance, registration, voting or transfer
      of
      its outstanding equity. No dividends are accrued but unpaid on any equity of
      such Constituent Company.

     

    Section
      3.02  Preemptive
      Rights; Registration Rights

     

    .
      Such
      Constituent Company’s Articles of Organization do not afford pre-emptive rights
      to any member. There have been no interests of such Constituent Company issued
      to which preemptive rights accrued or are outstanding. There are no registration
      rights affecting the issuance or sale of equity of such Constituent
      Company.

     

    Section
      3.03  No
      Defaults or Consents

     

    .
      Neither
      the execution nor delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (i)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Organization or Operating Agreement of such Constituent Company;

     

    (ii)  violate
      in any material respect any Legal Requirements applicable to such Constituent
      Company;

     

    (iii)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of such Constituent Company; or

     

    (iv)  require
      such Constituent Company to obtain or make any waiver, consent, action, approval
      or authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority except where
      the failure to so obtain or make would not have a Material Adverse
      Effect.

     

    Section
      3.04  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of such
      Constituent Company, threatened before any Governmental Authority seeking to
      restrain such Constituent Company or prohibit its entry into this Agreement
      or
      prohibit the Closing, or seeking damages against such Constituent Company or
      its
      Properties, as a result of the consummation of the transactions contemplated
      by
      this Agreement.

     

    Section
      3.05  Absence
      of Certain Changes

     

    .
      Since
      August 31, 2006, such Constituent Company has not:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    suffered
      any Material Adverse Change;

     

    (a)  contracted
      for the purchase of any capital assets having a cost in excess of $10,000 or
      paid any capital expenditures in excess of $10,000, except in the ordinary
      course of business consistent with past practice;

     

    (b)  incurred
      any indebtedness for borrowed money or issued or sold any debt securities,
      except in the ordinary course of business consistent with past
      practice;

     

    (c)  incurred
      or discharged any material liabilities or obligations except in the ordinary
      course of business consistent with past practice;

     

    (d)  paid
      any
      amount on any indebtedness prior to the due date, forgiven or canceled any
      material debts or claims or released or waived any material rights or claims,
      except in the ordinary course of business consistent with past
      practice;

     

    (e)  mortgaged,
      pledged or subjected to any security interest, lien, lease or other charge
      or
      encumbrance any of its Properties or Company Assets;

     

    (f)  suffered
      any damage or destruction to or loss of any Company Assets (whether or not
      covered by insurance) that has materially adversely affected its
      business;

     

    (g)  acquired
      or disposed of any material Company Assets except in the ordinary course of
      business consistent with past practice;

     

    (h)  made
      any
      payments to any person or entity except in the ordinary course of business
      consistent with past practice or loaned any money to any person or entity that
      is not reflected in the Financial Statements;

     

    (i)  formed
      or
      acquired or disposed of any interest in any corporation, partnership, joint
      venture or other entity;

     

    (j)  redeemed,
      purchased or otherwise acquired, or sold, granted or otherwise disposed of,
      directly or indirectly, any of its capital stock or securities or any rights
      to
      acquire such capital stock or securities, or agreed to change the terms and
      conditions of any such rights or paid any dividends or made any distribution
      to
      the holders of its capital stock;

     

    (k)  entered
      into or terminated any material agreement with any person or group, or modified
      or amended in any material respect the terms of any existing agreement except
      in
      the ordinary course of business consistent with past practice;

     

    (l)  received
      any indication from any customer or supplier that it intends to discontinue
      or
      change the terms of its relationship with each Constituent Company;

     

    (m)  materially
      changed its accounting methods; or

     

    (n)  entered
      into any agreement (written or oral) to do any of the foregoing.

     

    (o)  Insurance

     

    .
      Such
      Constituent Company has previously made available to ELS HRS a list of all
      insurance policies (including self insurance arrangements) with respect to
      the
      property, assets and operations of such Constituent Company’s business and a
      summary of the loss experience of such Constituent Company. All such insurance
      policies and arrangements are in full force and effect. There are no pending
      claims by such Constituent Company relating to its business under such insurance
      policies as to which the insurers listed thereon have denied
      liability.

     

    Section
      3.06  Patents,
      Trademarks, Service Marks and Copyrights.

     

    (a)  Such
      Constituent Company owns all material patents, trademarks, service marks and
      copyrights (collectively “Proprietary
      Rights”),
      if
      any, necessary to conduct its business, or possesses adequate licenses or other
      rights (except for licenses for the use of non-customized software), if any,
      therefor, without conflict with the rights of others. 

     

    (b)  To
      its
      knowledge, such Constituent Company has the sole and exclusive right to use
      the
      Proprietary Rights without infringing or violating the rights of any third
      parties. To its knowledge, use of the Proprietary Rights does not require the
      consent of any other person and the Proprietary Rights are freely transferable.
      No claim has been asserted by any person to the ownership of or right to use
      any
      material Proprietary Right or challenging or questioning the validity or
      effectiveness of any license or agreement constituting a part of any material
      Proprietary Right. To its knowledge, each of the Proprietary Rights is valid
      and
      subsisting, has not been canceled, abandoned or otherwise terminated and, if
      applicable, has been duly issued or filed.

     

    Section
      3.07  Title
      to Assets; Condition of Assets.

     

    (a)  Such
      Constituent Company owns no real property.

     

    (b)  Such
      Constituent Company has good and marketable title to its Company Assets (other
      than those disposed of in the ordinary course of business), free and clear
      of
      all security interests, liens, charges and other encumbrances, except for liens
      for taxes not yet due and payable or being contested in good faith in
      appropriate proceedings. All material facilities, machinery, equipment,
      fixtures, vehicles and other properties owned, leased or used by such
      Constituent Company are in good operating condition and repair, normal wear
      and
      tear excepted, are adequate and sufficient for the business of such Constituent
      Company and conform in all material respects with all applicable ordinances,
      regulations and laws relating to their use and operation.

     

    (c)  No
      member
      of such Constituent Company has any interest in any of the Company Assets except
      for salary, and no member of such Constituent Company has any financial interest
      in any transaction of such Constituent Company.

     

    Section
      3.08  Compliance
      with Laws

     

    .
      such
      Constituent Company has all material franchises, Permits, licenses and other
      rights and privileges necessary to permit it to own its Properties and to
      conduct its businesses as presently conducted. The business and operations
      of
      eacsuchh Constituent Company have been and are being conducted in all material
      respects in accordance with all applicable laws, rules and regulations, and
      such
      Constituent Company is not

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    in
      violation of any judgment, law or regulation except where any such violation
      would not have a Material Adverse Effect. Such Constituent Company has not
      received any written notice from any Governmental Authority or any other person
      or entity regarding any actual, alleged or potential violation or failure to
      comply in any material respect with any Legal Requirement.

     

    Section
      3.09  Litigation;
      Default

     

    .
      There
      are no claims, actions, suits, investigations or proceedings against such
      Constituent Company pending or, to the Knowledge of such Constituent Company,
      threatened in any court or before or by any Governmental Authority, or before
      any arbitrator, other than worker’s compensation claims that are covered by such
      Constituent Company’s self insurance arrangement. 

     

    Section
      3.10  Other
      Transactions

     

    .
      Except
      as contemplated by this Agreement, such Constituent Company has not entered
      into
      any agreements or arrangements and there are no pending offers or discussions
      concerning or providing for the merger or consolidation of such Constituent
      Company, the sale of all or any substantial portion of its assets, the sale
      by
      such Constituent Company of any securities of such Constituent Company or any
      similar transaction affecting such Constituent Company.

     

    ARTICLE
      IV.  

    REPRESENTATIONS
      AND WARRANTIES OF ELS
      HRS AND RESOLVE

    Each
      of
      ELS HRS and Resolve, jointly and severally, represents and warrants to each
      Constituent Company as of the Closing Date that:

     

    Section
      4.01  Corporate
      Existence and Qualification; Corporate Documents

     

    . 
      Each of
      ELS HRS and Resolve is a corporation duly organized, validly existing and in
      good standing under the laws of its state of jurisdiction, and is not required
      to be qualified to do business as a foreign corporation in any other
      jurisdiction where the failure to so qualify would have a material adverse
      effect on either of them. Each of ELS HRS and Resolve has all required corporate
      power and authority to own its properties and to carry on its business as
      presently conducted.

     

    Section
      4.02  Authority,
      Approval and Enforceability

     

    .
      This
      Agreement and each other agreement to which ELS HRS or Resolve is a party have
      been duly executed and delivered by such entity, and each of ELS HRS and Resolve
      has all requisite corporate power and legal authority to execute and deliver
      this Agreement and each other agreement to which it is a party, to consummate
      the transactions contemplated hereby and thereby, and to perform its obligations
      hereunder and thereunder. This Agreement and each other agreement to which
      ELS
      HRS or Resolve is a party will constitute the legal, valid and binding
      obligations of such entity, enforceable in accordance with their respective
      terms, except as such enforceability may be limited by any applicable
      bankruptcy, insolvency, reorganization, moratorium or other similar laws
      affecting the enforcement of creditors' rights generally, and except as the
      availability of equity remedies may be limited by the application of general
      principles of equity (regardless of whether such equitable principles are
      applied in a proceeding at law or in equity).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    No
      Defaults or Consents

     

    .
      Neither
      the execution nor delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (a)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Code of Regulations or Bylaws of ELS HRS or
      Resolve;

     

    (b)  violate
      any Legal Requirements applicable to ELS HRS or Resolve;

     

    (c)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of ELS HRS or Resolve; or

     

    (d)  require
      ELS HRS or Resolve to obtain or make any waiver, consent, action, approval
      or
      authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority

     

    Section
      4.03  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of each of
      ELS
      HRS and Resolve, threatened before any Governmental Authority seeking to
      restrain ELS HRS or Resolve or prohibit either's entry into this Agreement
      or
      prohibit the Closing, or seeking damages against ELS HRS or Resolve or their
      Properties, as a result of the consummation of the transaction contemplated
      by
      this Agreement.

     

    Section
      4.04  Securities

     

    .
      The
      authorized capital stock of Resolve is 50,000,000 shares of common stock, par
      value $0.0001 per share, and 10,000,000 shares of preferred stock, par value
      $0.0001 per share. The shares of Resolve Common Stock to be issued hereunder
      have been duly authorized and, when issued in accordance with the terms of
      this
      Agreement, will be validly issued, fully paid and non-assessable and will be
      issued in compliance with all applicable federal and state securities laws.
      There are no outstanding options, warrants, subscriptions or other rights or
      obligations to purchase or acquire any of shares of Resolve Common Stock, nor
      any outstanding securities convertible into or exchangeable for such shares.
      

     

    ARTICLE
      V.  

    SURVIVAL

    Section
      5.01  Survival
      of Representations and Warranties

     

    .
      Notwithstanding any right of any party hereto fully to investigate the affairs
      of any other party hereto and notwithstanding any knowledge of facts determined
      or determinable by any party hereto pursuant to such investigation or right
      of
      investigation, each of ELS HRS and Resolve, on the one hand, and the Constituent
      Companies, on the other hand, has the right to rely fully upon the
      representations, warranties, covenants and agreements of ELS HRS and Resolve
      and
      each Constituent Company, as the case may be, contained in this Agreement,
      or in
      any certificate delivered pursuant to any of the foregoing; provided, that
      no
      party hereto shall be entitled to rely on any representation or warranty made
      by
      any other party hereto herein to the extent that such party has actual knowledge
      that such representation or warranty is untrue or incorrect in any material
      respect. All such representations and warranties shall survive the execution
      and
      delivery of this Agreement and the Closing hereunder, and, except as otherwise
      specifically provided in this Agreement, shall thereafter terminate and expire
      at the end of the twenty fourth (24th) month following the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Closing
      Date, subject to the limitations on indemnification set forth in Section 6.04
      hereof. Notwithstanding the foregoing, the representations and warranties set
      forth in Sections 3.01, 3.02, 3.09(b), 4.01 and 4.02, and all covenants and
      agreements, shall survive indefinitely and shall not terminate or expire.

     

    ARTICLE
      VI.  

    INDEMNIFICATION

    Section
      6.01  Obligation
      of each Constituent Company to Indemnify

     

    .
      Subject
      to the limitations contained in Article V and Section 6.04 hereof, each
      Constituent Company agrees to indemnify, defend and hold harmless ELS HRS and
      Resolve (and their Affiliates, successors and assigns and their respective
      officers and directors) from and against all losses, liabilities, damages,
      deficiencies, costs or expenses (including interest, penalties and reasonable
      attorneys’ fees and disbursements, but offset by any proceeds from insurance and
      taking into account the present value of any tax savings to ELS HRS and Resolve
      resulting from such losses, liabilities, damages, deficiencies, costs or
      expenses) (“Losses”)
      based
      upon, arising out of or otherwise in respect of any inaccuracy in or any breach
      of any representation, warranty, covenant or agreement of such Constituent
      Company contained in this Agreement.

     

    Section
      6.02  Obligation
      of ELS HRS and Resolve to Indemnify

     

    .
      Each of
      ELS HRS and Resolve, jointly and severally, agrees to indemnify, defend and
      hold
      harmless each Constituent Company from and against any Losses based upon,
      arising out of or otherwise in respect of any inaccuracy in or any breach of
      any
      representation, warranty, covenant or agreement of ELS HRS or Resolve contained
      in this Agreement.

     

    Section
      6.03  Notice
      and Opportunity to Defend.

     

    (a)  Notice
      of Asserted Liability.
      Promptly after receipt by any party hereto (the “Indemnitee”)
      of
      notice of any demand, claim or circumstances which, with the lapse of time,
      would or might give rise to a claim or the commencement (or threatened
      commencement) of any action, proceeding or investigation (an “Asserted
      Liability”)
      that
      may result in a Loss, the Indemnitee shall give notice thereof (the
“Claims
      Notice”)
      to any
      other party (or parties) obligated to provide indemnification pursuant to
      Section 6.01 or 6.02 (the “Indemnifying Party”). The Claims Notice shall
      describe the Asserted Liability in reasonable detail and shall indicate the
      amount (estimated, if necessary and to the extent feasible) of the Loss that
      has
      been or may be suffered by the Indemnitee.

     

    (b)  Opportunity
      to Defend.
      The
      Indemnifying Party may elect to compromise or defend, at its own expense and
      by
      its own counsel, any Asserted Liability. If the Indemnifying Party elects to
      compromise or defend such Asserted Liability, it shall within thirty (30) days
      (or sooner, if the nature of the Asserted Liability so requires) notify the
      Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the
      expense of the Indemnifying Party, in the compromise of, or defense against,
      such Asserted Liability at the sole cost of the Indemnifying Party. If the
      Indemnifying Party elects not to compromise or defend the Asserted Liability,
      fails to notify the Indemnitee of its election as herein provided or contests
      its obligation to indemnify under this Agreement, the Indemnitee may pay,
      compromise or defend such

     

    (c)  Asserted
      Liability. Notwithstanding the foregoing, neither the Indemnifying Party nor
      the
      Indemnitee may settle or compromise any claim over the objection of the other,
      provided, however, that consent to settlement or compromise shall not be
      unreasonably withheld. In any event, the Indemnitee and the Indemnifying Party
      may participate (but not control), at their own expense, in the defense of
      such
      Asserted Liability. If the Indemnifying Party chooses to defend the claim,
      the
      Indemnitee shall make available to the Indemnifying Party any books, records
      or
      other documents within its control that are necessary or appropriate for such
      defense.

     

    Section
      6.04  Limitations
      on Indemnification

     

    .
      The
      indemnification provided for in Sections 6.01 and 6.02 shall be subject to
      the
      following limitations:

     

    (a)  No
      Constituent Company shall be obligated to pay any amounts for indemnification
      under this Article VI arising out of any Losses based upon, arising out of
      or
      otherwise in respect of any inaccuracy or breach disclosed to ELS HRS and
      Resolve prior to the Closing.

     

    (b)  Neither
      each Constituent Company nor ELS HRS and Resolve shall be obligated to pay
      any
      amounts for indemnification for breach of a representation or warranty under
      this Article VI, except those based upon, arising out of or otherwise in respect
      of Section 3.01, 3.02, 3.09(b), 4.01, or 4.02 hereof (which shall be
      indemnifiable from the first dollar), until the aggregate indemnification
      payments, exclusive of those payable with respect to Sections 3.01, 3.02,
      3.09(b), 4.01, or 4.02 equals $1,000,000 (the “Deductible”),
      whereupon ELS HRS and Resolve, or the applicable Constituent Company, as the
      case may be, shall be obligated to pay any indemnification payments, in excess
      of the Deductible, in full. This Section 6.04(b) will not apply to any breach
      of
      any representation and warranty of which the breaching party had Knowledge
      at
      any time prior to the date on which such representation and warranty is made
      or
      any intentional breach by any party of any covenant or obligation.

     

    (c)  After
      the
      Closing, the indemnification rights set forth in this Article VI shall be each
      party's sole and exclusive remedy against the other party for any breach of
      any
      representation, warranty or covenant contained in this Agreement.
      Notwithstanding the foregoing, nothing herein shall prevent any party from
      bringing an action based upon allegations of fraud in connection with this
      Agreement.

     

    ARTICLE
      VII.  

    POST-CLOSING
      OBLIGATIONS

    Section
      7.01  Further
      Assurances

     

    .
      Following the Closing, each of the parties shall execute and deliver such
      documents, and take such other action, as shall be reasonably requested by
      any
      other party hereto to carry out the transactions contemplated by this
      Agreement.

     

    Section
      7.02  Access
      to Records

     

    .
      From
      and after the Closing, (i) each Constituent Company shall (A) deliver to ELS
      HRS
      all books, records, files, agreements and other information relating to such
      Constituent Company, and (B) use best efforts to permit ELS HRS and its
      authorized employees, agents, accountants, legal counsel and other
      representatives to

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    have
      access to the employees, counsel, accountants and other representatives of
      each
      Constituent Company, in each case, to the extent and at all times reasonably
      requested by ELS HRS for the purpose of investigating or defending any claim
      made against ELS HRS in connection with periods ending on or before the Closing
      Date, and (ii) ELS HRS shall (A) permit each Constituent Company and its
      authorized employees, agents, accountants, legal counsel and other
      representatives to have access to the books, records, files, agreements and
      other information of or regarding such Constituent Company, and (B) use its
      best
      efforts to permit each Constituent Company and its authorized employees, agents,
      accountants, legal counsel and other representatives to have access to the
      employees, counsel, accountants and other representatives of ELS HRS and its
      Affiliates, in each case, to the extent and at all times reasonably requested
      by
      such Constituent Company, for the purpose of (I) investigating or defending
      any
      claim made against such Constituent Company in connection with Article VI,
      or
      (II) with respect to any pre-Closing Date tax matters affecting such Constituent
      Company.

     

    ARTICLE
      VIII.  

    MISCELLANEOUS

    Section
      8.01  Brokers

     

    .
      Regardless of whether the Closing shall occur, (i) each Constituent Company
      shall indemnify and hold harmless ELS HRS and Resolve from and against any
      and
      all liability for any brokers or finders' fees arising with respect to brokers
      or finders retained or engaged by such Constituent Company in respect of the
      transactions contemplated by this Agreement, and (ii) ELS HRS and Resolve,
      jointly and severally, shall indemnify and hold harmless each Constituent
      Company from and against any and all liability for any brokers' or finders'
      fees
      arising with respect to brokers or finders retained or engaged by ELS HRS and/or
      Resolve in respect of the transactions contemplated by this
      Agreement.

     

    Section
      8.02  Costs
      and Expenses

     

    .
      Each of
      the parties to this Agreement shall bear its own expenses incurred in connection
      with the negotiation, preparation, execution and closing of this Agreement
      and
      the transactions contemplated hereby.

     

    Section
      8.03  Notices

     

    .
      Any
      notice, request, instruction, correspondence or other document to be given
      hereunder by any party hereto to another (herein collectively called
“Notice”)
      shall
      be in writing and delivered personally or mailed by registered or certified
      mail, postage prepaid and return receipt requested, or by telecopier, as
      follows:

     

    ELS
      HRS
      or Resolve:  Resolve
      Staffing, Inc.

    ELS
      Human
      Resource Solutions, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Telecopy
      No.: (513) 943-4908

    

    With
      a
      copy to:  Greg
      Bartko, Esq.

    3475
      Lenox Road, Suite 400

    Atlanta,
      Georgia 30326

    Telecopy
      No.: (404) 238-0551

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Constituent
      Companies: c/o
      Employee Leasing Services, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Attention:
      Ronald E. Heineman

    Telecopy
      No.: (513) 943-4908

    

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

    Taft,
      Stettinius & Hollister LLP

    425
      Walnut Street, Suite 1800

    Cincinnati,
      OH 45202-3957

    Telecopy
      No.: 513-381-0205

    

    Each
      of
      the above addresses for notice purposes may be changed by providing appropriate
      notice hereunder. Notice given by personal delivery or registered mail shall
      be
      effective upon actual receipt. Notice given by telecopier shall be effective
      upon actual receipt if received during the recipient's normal business hours,
      or
      at the beginning of the recipient's next normal business day after receipt
      if
      not received during the recipient's normal business hours. All Notices by
      telecopier shall be confirmed by the sender thereof promptly after transmission
      in writing by registered mail or personal delivery. Anything to the contrary
      contained herein notwithstanding, Notices to any party hereto shall not be
      deemed effective with respect to such party until such Notice would, but for
      this sentence, be effective both as to such party and as to all other persons
      to
      whom copies are provided above to be given.

     

    Section
      8.04  Governing
      Law

     

    .
      The
      provisions of this Agreement and the documents delivered pursuant hereto shall
      be governed by and construed in accordance with the laws of the State of Ohio
      (excluding any conflict of law rule or principle that would refer to the laws
      of
      another jurisdiction).

     

    Section
      8.05  Entire
      Agreement, Amendments and Waivers

     

    .
      This
      Agreement, together with all exhibits and schedules attached hereto, constitutes
      the entire agreement between the parties hereto pertaining to the subject matter
      hereof and supersedes all prior agreements, understandings, negotiations and
      discussions, whether oral or written, of the parties, and there are no
      warranties, representations or other agreements between the parties in
      connection with the subject matter hereof except as set forth specifically
      herein or contemplated hereby. No supplement, modification or waiver of this
      Agreement shall be binding unless executed in writing by the party to be bound
      thereby. No waiver of any of the provisions of this Agreement shall be deemed
      or
      shall constitute a waiver of any other provision hereof (regardless of whether
      similar), nor shall any such waiver constitute a continuing waiver unless
      otherwise expressly provided.

     

    Section
      8.06  Binding
      Effect and Assignment

     

    .
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, executors, legal representatives, permitted
      successors and assigns; but neither this Agreement nor any of the rights,
      benefits or obligations hereunder shall be assigned, by operation of law or
      otherwise, by any party hereto without the prior written consent of the other
      party. Nothing in this Agreement, express or implied, is intended to confer
      upon
      any person or entity, other than the parties hereto

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and
      their
      respective heirs, executors, legal representatives, permitted successors and
      assigns, any rights, benefits or obligations hereunder.

     

    Section
      8.07  Remedies

     

    .
      The
      rights and remedies provided by this Agreement are cumulative, and the use
      of
      any one right or remedy by any party hereto shall not preclude or constitute
      a
      waiver of its right to use any or all other remedies provided by this
      Agreement.

     

    Section
      8.08  Exhibits
      and Schedules

     

    .
      The
      exhibits and schedules referred to herein are attached hereto and incorporated
      herein by this reference.

     

    Section
      8.09  Multiple
      Counterparts

     

    .
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    Section
      8.10  References

     

    .
      Whenever required by the context, and as used in this Agreement, the singular
      number shall include the plural and pronouns and any variations thereof shall
      be
      deemed to refer to the masculine, feminine, neuter, singular or plural, as
      the
      identification of the person may require. References to monetary amounts and
      specific named statutes are intended to be and shall be construed as references
      to United States dollars and statutes of the United States, respectively, unless
      the context otherwise requires.

     

    Section
      8.11  Survival

     

    .
      Any
      provision of this Agreement which contemplates performance or the existence
      of
      obligations after the Closing Date, and any and all representations and
      warranties set forth in this Agreement, shall not be deemed to be merged into
      or
      waived by the execution and delivery of the instruments executed at the Closing,
      but shall expressly survive Closing for the time period set forth in Section
      6.01 hereof and shall be binding upon the party or parties obligated thereby
      in
      accordance with the terms of this Agreement, subject to any limitations
      expressly set forth in this Agreement.

     

    ARTICLE
      IX.  

    DEFINITIONS

    Capitalized
      terms used in this Agreement shall have the respective meanings ascribed to
      such
      terms in this Article IX, unless otherwise defined in this
      Agreement.

     

    Section
      9.01  Affiliate

     

    .
      The
      term “Affiliate”
shall
      mean, with respect to any person, any other person controlling, controlled
      by or
      under common control with such person. The term “control” as used in the
      preceding sentence means, with respect to a corporation, the right to exercise,
      directly or indirectly, more than fifty percent (50%) of the voting rights
      attributable to the shares of the controlled corporation and, with respect
      to
      any person other than a corporation, the possession, directly or indirectly,
      of
      the power to direct or cause the direction of the management or policies of
      such
      person.

     

    Section
      9.02  Company
      Assets

     

    .
      The
      term “Company
      Assets”
shall
      mean, with respect to each Constituent Company, all of the Properties, Contracts
      and Permits Used by such Constituent Company as of the Closing
      Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Governmental
      Authorities

     

    .
      The
      term “Governmental
      Authorities”
shall
      mean any nation or country (including but not limited to the United States)
      and
      any commonwealth, territory or possession thereof and any political subdivision
      of any of the foregoing, including but not limited to courts, departments,
      commissions, boards, bureaus, agencies, ministries or other
      instrumentalities.

     

    Section
      9.03  Knowledge

     

    .
      The
      term “Knowledge”
shall
      mean the actual knowledge of a party and, in the case of a Constituent Company,
      of any of its directors or executive officers with respect to the representation
      being made.

     

    Section
      9.04  Legal
      Requirements

     

    .
      The
      term “Legal
      Requirements”,
      when
      described as being applicable to any person, shall mean any and all laws
      (statutory, judicial or otherwise), ordinances, regulations, judgments, orders,
      directives, injunctions, writs, decrees or awards of, and any contracts with,
      any Governmental Authority, in each case as and to the extent applicable to
      such
      person or such person's business, operations or Properties.

     

    Section
      9.05  Material
      Adverse Change

     

    .
      The
      term “Material
      Adverse Change”
shall
      mean a material adverse change in a Constituent Company’s condition (financial
      or otherwise), operations, results of operations, business, Properties or
      liabilities.

     

    Section
      9.06  Material
      Adverse Effect

     

    .
      The
      term “Material
      Adverse Effect”
shall
      mean a material adverse effect on a Constituent Company’s operations, business,
      Properties, financial condition or results of operations.

     

    Section
      9.07  Permits

     

    .
      The
      term “Permits”
shall
      mean any and all permits or orders under any Legal Requirement or otherwise
      granted by any Governmental Authority.

     

    Section
      9.08  Properties

     

    .
      The
      term “Properties”
shall
      mean any and all properties and assets (real, personal or mixed, tangible or
      intangible).

     

    Section
      9.09  Regulations

     

    .
      The
      term “Regulations”
shall
      mean any and all regulations promulgated by the Department of the Treasury
      pursuant to the Code.

     

    Section
      9.10  Taxes
      or Tax

     

    .
      The
      term “Taxes”
or
      “Tax”
means
      any federal, state, local, or foreign income, gross receipts, license, payroll,
      employment, gift, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including taxes under Code §59A), customs duties,
      capital stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add-on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty, or
      addition thereto, whether disputed or not.

     

    Section
      9.11  Tax
      Returns

     

    .
      The
      term “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    Section
      9.12  Used

     

    .
      The
      term “Used”
shall
      mean, with respect to the Properties, Contracts or Permits of a Constituent
      Company, those owned, leased, licensed or otherwise held by such Constituent
      Company which were acquired for use or held for use by such
      Constituent

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Company
      in connection with such Constituent Company’s business and operations, whether
      or not reflected on the books of account.

     

    

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXECUTED
      as of the date first written above.

     

    

     

    ELS
      HUMAN
      RESOURCE SOLUTIONS, INC.

    

    

    By:/s/
      Donald Quarterman_____________

    Donald
      E.
      Quarterman

    President

    

    

    RESOLVE
      STAFFING, INC.

    

    

    By:
      /s/ Donald Quarterman__________

    Donald
      E.
      Quarterman

    Director
      and Authorized Representative

    

    

    

    ELS
      OF
      DAYTON PREMIER BUSINESS SOLUTIONS, LLC

    

    By:_/s/
      Ronald Heineman______________

    Ronald
      E.
      Heineman

    Manager

    

    

    

    ELS
      ADMINISTRATIVE SERVICES, L.L.C.

    

    By:_
      /s/ Ronald Heineman_____________

    Ronald
      E.
      Heineman

    Manager

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      A

    

    Capitalization

    

    1. ELS
      of
      Dayton Premier Business Solutions, LLC

    

    Membership
      Units Owned

    

    Ronald
      E.
      Heineman     22.5

    William
      J. Walton     22.5

    FTJ
      Consulting, LLC     45

    Kim
      Kelly      45

    Charles
      Keish, Jr.     7.25

    

    

    2. ELS
      Administrative Services, L.L.C.

    

    Membership
      Units Owned

    

    Ronald
      E.
      Heineman     3,700

    William
      J. Walton     3,700

    Scott
      D.
      Horne     1,300

    Stephen
      R. Roux     1,300

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