Document:

Exhibit
10.50

 

SECOND
AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS SECOND
AMENDMENT TO LOAN AND SECURITY AGREEMENT (“Second Amendment”)
is entered into effective as of March 12, 2005 by and among GREENFIELD COMMERCIAL CREDIT, L.L.C., a Michigan limited liability
company (“Lender”), INFORMATION SYSTEMS
CONSULTING CORP., a Texas corporation, MANAGEMENT
ALLIANCE CORPORATION, a Texas corporation, TEXCEL
SERVICES, INC. a Pennsylvania corporation, and PREFERRED
FUNDING CORPORATION, a Texas corporation (collectively “Borrowers”)
and DIVERSIFIED CORPORATE RESOURCES, INC. a
Texas corporation, DATATEK CROUP CORPORATION,
a Texas corporation and MANAGEMENT ALLIANCE GROUP
OF INDEPENDENT CONSULTANTS, INC., a Texas corporation (collectively “Guarantors”)
and J. Michael Moore (“Validity Guarantor” which shall be included in
references to “Guarantors” below).

 

RECITALS

 

A.            Lender, Borrowers and Guarantors entered into a Loan And
Security Agreement dated as of March 12, 2004 and amended the same on April 27,
2004 by an Amendment To Loan And Security Agreement (together the “Loan
Agreement”).  All capitalized terms not
defined herein shall have the same meanings ascribed to such terms in the Loan
Agreement.

 

B.            Validity
Guarantor executed and delivered to Lender his Validity Guaranty dated as of
March 12, 2004.

 

C.            Borrowers
defaulted under the terms of the Loan Agreement by failing to pay IRS taxes and
to re-pay the Funded Reserve Account, and on July 27, 2004 the parties entered
into a Forbearance Agreement in which Lender agreed to provide Borrower time to
pay the past due IRS taxes.  The
Forbearance Agreement was amended effective October 27, 2004 to provide
additional time for payment of the taxes, and to amend the Percentage Advance
Rate on Eligible Permanent Placement Receivables.

 

D.            Borrowers
have entered into a payment arrangement with the IRS for the payment of the past
due taxes.

 

E.             The
Loan Agreement will mature by its terms on March 12, 2005.  Borrowers and Guarantors have asked Lender to
extend the maturity date to the earlier of demand or March 12, 2006 and Lender
agrees, upon the terms and conditions set forth below.

 

NOW,
THEREFORE, in consideration of the mutual covenants,
conditions, and provisions as hereinafter set forth, the parties hereto agree
to further amend the Loan Agreement as follows:

 

1.             Maturity Date/Participation
Agreement.       The
Maturity Date of the Loan Agreement is amended to the earlier of demand or
March 12, 2006.  The parties acknowledge
that Lender has entered into a Participation Agreement with the James R.
Colpitt Trust dated effective November 2, 2004 and that Borrower has a
photocopy of same.

 

2.             Permanent Placement Receivables. Paragraph 2.A of the Term
Sheet to the Receivables Loan Rider #1 is amended to provide that the
Percentage Advance Rate on Eligible Permanent Placement Receivables shall not
exceed the lesser of 35% of net availability or $1,250,000.00.  However, if the unfunded reserve is used, as
provided below, then the Percentage Advance Rate on Eligible Permanent
Placement Receivables shall reduce ratably over 90 days to the lesser of 30% of
net availability or $1,250,000.00.

 

3.             Past Due IRS taxes.            Lender hereby
agrees that the unfunded reserve held against Borrowers’ availability in the
amount of $577,000.00 can be used, if still available within the formula, to
pay past due IRS taxes if such amount will pay all past due IRS obligations in
full.

 

 

4.             Datatek Sale.        If Datatek Group
Corporation is sold during the term of this Second Amendment, Lender shall
release it as a Borrower and terminate Lender’s security interest and any UCC
financing statements filed against it.

 

5.             Early Termination Fee.      The Early Termination
Fee shall apply to the Maturity Date as amended herein.

 

6.             Amendment/Legal Fees.    Borrowers shall pay to
Lender in consideration of this Second Amendment (i) a loan amendment fee of $200,000.00,
which shall be over-funded and amortized at the rate of $10,000.00 per week
beginning March 30, 2005.  In addition,
the sum of $100,000.00, or the balance then owing on the loan amendment fee,
shall be due upon the sale of Datatek;, and (ii) Lender’s attorney’s fees in
the amount of $675.00.

 

7.             Reaffirmation.      Except as amended
hereby, the Loan Agreement and all documents and instruments executed in
connection therewith, and all of the terms of such documents, shall remain in
full force and effect.

 

8.             Reaffirmation of Guaranty and
Validity Guaranty. 
Guarantors reaffirm each and every term of their Guaranty agreements and
agree they shall continue to secure repayment of the indebtedness as provided
for herein and in the Loan Agreement.

 

9.             Entire Agreement.  All parties to this Second Amendment agree
that this Second Amendment and all documents executed in connection herewith or
referenced herein, constitute the entire agreements made by and between the
parties, and no other agreements, either written or oral, express or implied,
have been made and entered into or agreed to between the parties.  The parties also agree, each with the other,
that the agreements between the parties may be modified or amended only by
subsequent written agreement executed by all of the parties hereto.

 

10.          Counterparts.       This Second Amendment
may be executed in any number of counterparts and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Second Amendment
to be executed and delivered as of the date first hereinabove set forth.

 

	
  Accepted at Bloomfield
  Hills,

  	
   

  	
   

  	
   

  
	
  Michigan on March 14,
  2005:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LENDER:

  	
   

  	
  BORROWERS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GREENFIELD COMMERCIAL CREDIT,
  L.L.C.,

  	
  INFORMATION SYSTEMS,

  
	
  a Michigan limited
  liability company

  	
  CONSULTING CORP.,

  
	
  By:

  	
  GCC Management, Inc.

  	
  a Texas corporation

  	
   

  
	
  Its:

  	
  Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward P. Lewan

  	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
  Edward P. Lewan

  	
   

  	
  J.
  Michael Moore

  
	
  Its:

  	
  Vice President

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael Lee

  
	
   

  	
   

  	
  Its:

  	
  Secretary

  
								

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGE]

 

2

 

	
   

  	
  MANAGEMENT ALLIANCE

  
	
   

  	
  CORPORATION,

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXCEL SERVICES, INC.,

  
	
   

  	
  a Pennsylvania
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PREFERRED FUNDING CORPORATION,

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J. Michael Moore

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
					

 

[SIGNATURES CONTINUED ON
FOLLOWING PAGE]

 

3

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE

  
	
   

  	
  RESOURCES, INC.,

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  DATATEK GROUP CORPORATION,

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  MANAGEMENT ALLIANCE GROUP

  
	
   

  	
  OF INDEPENDENT CONSULTANTS,
  INC.,

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Michael
  Lee

  
	
   

  	
  Its:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  VALIDITY GUARANTOR

  
	
   

  	
   

  
	
   

  	
  /s/ J. Michael Moore

  
	
   

  	
  J. Michael Moore

  

 

4Exhibit 10.51

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

RE: J. MICHAEL MOORE

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into by and between Diversified Corporate Resources, Inc., a Texas
Corporation (herein referred to as the “Company” and J. Michael Moore (herein
referred to as the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the parties hereto previously entered into
that certain Employment Agreement Re: 
J.Michael Moore dated as of June 30, 2004 (the “Prior Agreement”) and

 

WHEREAS, this
Agreement constitutes an amendment and restatement of the Prior Agreement; and

 

WHEREAS THE Company desires to continue to employ the
Executive and the Executive desires to be employed by the Company; and

 

WHEREAS, the purpose of this document is to set forth
the terms and conditions of such employment.

 

NOW THEREFORE, for and in consideration of the mutual
advantages and benefits accruing respectively to the parties hereto, the mutual
promises hereinafter made and the acts to be performed by the respective
parties hereto, the Company and the Executive do hereby contract and agree as
follows:

 

1.             Employment.  The Company hereby employs the Executive as
the Chief Executive Officer of the Company, and the Executive hereby accepts
such employment, to perform the duties and render services as herein set
forth.  Such employment shall continue
during the term of this Agreement.

 

 

2.             Term.  Except in the case of earlier termination as
herein specifically provided, the Executive’s employment with the Company
pursuant to this Agreement shall be for the period beginning January 1, 2005
and ending December 31, 2006 (the “Termination Date”).

 

3.             Base
Compensation.  As base compensation
for the services of Executive during the term hereof, the Company shall pay the
Executive a salary at an annual rate to be fixed from time to time by the Board
of Directors of the Company but in no event less than $250,000.00 plus any
additional compensation which the Board of Directors of the Company may from
time to time determine.  The Executive’s
salary hereunder shall be paid in equal semi-monthly installments (subject to
reduction for such payroll and withholding deductions as may be required by
law), and may be paid, in whole or in part, by one or more of the subsidiaries
(the “Subsidiaries”) of the Company.

 

In addition to the Executive’s base salary, the
Executive shall be entitled to each of the following (at the Company’s expenses
unless otherwise indicated): (a) the right to receive an annual bonus pursuant
to such bonus plan(s) which the Board of Directors of the Company may hereafter
adopt with respect to the Executive, (b) health insurance coverage now or
hereafter in effect which shall provide for payment of health, dental and
related expenses incurred during the term of this Agreement with respect to the
Executive (including long-term disability coverage paid for the Executive), the
Executive’s spouse or the Executive’s children, and which shall contain such
benefits and options as shall be made available to other executives of the
Company and/or the Subsidiaries, (c) the right to participate in any and all
401(k) plans and Section 125 plans now in effect or hereafter adopted by the
Company, (d) the right to participate in any executive stock option plan which
the Board of Directors of the Company may hereafter adopt with respect to the
Executive, (e) an automobile allowance of $ 1,000 per month, (f) payment or
reimbursement of monthly dues payable

 

 

with respect to such club
membership in the initial amount of $ 350.00 per month, and (g) the right to
all fringe benefits generally made available to other executives and/or
employees of the Company.

 

In addition to the foregoing, the Executive shall be
entitled to (a) such vacation leave as shall be permitted by the Company’s
standard policies, or (b) if such standard policies provide for a lesser amount
of vacation leave, minimum annual vacation leave of fifteen (15) days per year
with full pay, and thirty (30) days per year of sick leave with full pay (this
number of days of sick leave may be extended if the Board of Directors of the
Company approves).

 

The Executive shall also be entitled to receive such
fees and/or compensation, if any, as shall be granted to the Executive by the
Board of Directors of the Company in connection with the Executive serving as a
director of the Company and any of the subsidiaries of the Company.

 

4.             Duties
and Services.  During the term of
this Agreement, the Executive agrees to (a) do his utmost to enhance and
develop the best interests and welfare of the Company, (b) give his best
efforts and skill to advancing and promoting the growth and success of the
Company, and (c) shall be responsible for management, fiscal responsibilities
and strategic planning and perform such duties or render such services as the
Board of Directors of the Company may, from time to time, reasonably confer
upon or impose on the Executive.  
Executive’s authority and responsibility in the Company shall at all
times be subject to the review and discretion of the Board of Directors, who
shall have the final authority to make decisions regarding the business of the
Company. It is understood that the Executive shall report directly to the Board
of Directors of the Company.

 

5.             Termination.

 

a.             The
Company may terminate the Executive’s employment pursuant to this Agreement at
any time for “cause” as herein defined. 
The term “cause” shall solely mean any of the following events set forth
in this paragraph: (i) the Executive’s conviction or plea of guilty to a crime
involving moral turpitude, (ii) any will full acts of acts of dishonesty and
theft or the will full

 

 

violation of any law,
rule or regulation (other than traffic violation or other minor offenses) on
the part of the Executive which, in the opinion of the Board of Directors of
the Company, is detrimental to the best interests of the Company.  However, no act or failure to act on the
Executive’s part shall be considered will full or detrimental to the best
interests of the Company unless done or omitted to be done in bad faith and
without reasonable belief by the Executive that the action or omission was in
the best interest of the Company and (iii) 
a will full, intentional and material violation by the Executive of any
written policy of the Board of Directors of the Company which is not corrected
within ninety (90) days after receipt by the Executive of a detailed written
explanation from the Board of Directors of the Company.  Any decision by the Board of Directors of the
Company to terminate the Executive for cause must be approved by the favorable
vote of seventy-five percent (75%) of all members of the Board of Directors of
the Company excluding the Executive.

 

b.             The
Company may terminate the Executive as an employee of the Company at any time
during the term of this Agreement if a majority of all of the members of the
Board of Directors of the Company approves a resolution authorizing such action
and reflecting that such action is in the best interests of the Company.  However, unless the Executive’s employment is
terminated for “cause” (as defined in paragraph 5(a)), any termination of the
Executive’s employment shall not terminate the Company’s obligations to pay to
the Executive the severance benefits as hereinafter set forth, or to comply
with the other requirements of this Agreement.

 

c.             The
Executive may terminate his employment with the Company at any time by giving
ninety (90) days written notice to the Company.

 

d.             The
Executive’s employment by the Company shall automatically terminate on the date
of the Executive’s death if the Executive dies during the term of this
Agreement.

 

e.             If
the Executive is incapacitated by an accident, sickness or otherwise, so as to
render him mentally or physically incapable of performing the services required
of him pursuant to

 

 

this Agreement, Executive’s
employment by the Company shall terminate at such time as the Board of
Directors of the Company determines (with at least seventy-five percent of the
directors other than the Executive voting in favor) that the Executive is so
disabled and that this Agreement should be terminated by reason of such
disability.  Notwithstanding the
foregoing, the Executive shall have the right to contest any determination of
disability by the Board of Directors of the Company.  In the event that the Executive does contest
such determination, such matter shall be resolved by arbitration pursuant to
Section 13(c) of this Agreement.

 

6.             Severance
and Other Payments.

 

a.             If
the Executive’s employment pursuant to this Agreement is terminated for “cause”
(pursuant to paragraph 5(a)) or due to the death or disability (as determined
pursuant to paragraph 5(e) of this Agreement) of the Executive, the Company
shall not be obligated to pay or provide any severance compensation or benefits
to the Executive.

 

b.             If
the Executive ceases to be an employee of the Company (either during the term
of this Agreement or at any time subsequent to the termination of this
Agreement) for any reason other than pursuant to Paragraphs 5(a), 5(c) (except
for a “Good Reason” termination by the Executive as defined below), 5(d) or
5(e) of this Agreement, the Company agrees to pay to the Executive an amount
equal to the base compensation which would have been paid to the Executive
during the period of time from the date of the termination of the Executive’s
employment with the Company for a period of twelve (12) months following the
date the Executive ceases to be an employee of the Company and the Subsidiaries
(such time period is herein referred to as the “Severance Period”).  In addition to the foregoing severance
payment, the Executive and his family shall continue to participate in the
Company’s group health plan, at no cost to the Executive, during the Severance
Period. Notwithstanding the foregoing, in the event of a Special Change in
Control of the Company (as hereinafter defined) and if the Executive’s
employment with the Company is

 

 

terminated for any reason
other than Voluntary Termination (as hereinafter defined) or termination for
cause as provided for herein during the twenty-four (24) month period beginning
on the Effective Date of such Special Change in Control, (i) the Severance
Period shall be extended by six (6) months so that the Severance Period shall
be eighteen (18) months following the date the Executive ceases to be an
employee of the Company and the Subsidiaries (such extended time period is
herein referred to as the “Extended Severance Period”), and (ii) the payments
to the Executive hereunder with respect to the Extended Severance Period shall
be at such times and in such amounts as would have been paid to the Executive
during the Extended Severance Period had the Executive’s employment not been
terminated.

 

c.             If
the Executive’s employment is terminated during the term of this Agreement, for
any reason other than cause, the Executive (i) shall be entitled to receive a
prorata share (based upon the number of months employed during the calendar
year in which employment with the Company is terminated) of any bonus or
incentive compensation which the Executive would otherwise have been entitled
to receive had he remained employed for the entirety of the calendar year
involved, and (ii) shall have twelve (12) months to exercise any stock options
heretofore or hereafter granted to the Executive by the Board of Directors of
the Company.

 

d.             Commencing
in June, 2000 and during the time of Executive’s employment with the Company
and all of its subsidiaries, the Company shall fund a deferred compensation
program for the Executive in the amount of $3,000.00 per month.  All funded pursuant to this deferred
compensation arrangement shall be paid to the Executive, at the date of
termination of the Executive’s employment with the Company, in the manner
anticipated by the deferred compensation program previously implemented by the
Company for the Executive.

 

Notwithstanding the foregoing, in the event of a
Special Change in Control of the Company (as hereinafter defined) and if the
Executive’s employment with the Company terminates for any

 

 

reason other than
Voluntary Termination (as hereinafter defined) or termination for cause as
provided for herein during the twenty-four (24) month period beginning on the
Effective Date of such Special Change in Control, the Company’s obligation to
fund the deferred compensation program shall extend until the expiration of the
Extended Severance Period.

 

7.             Working
Conditions.  The Company will provide
the Executive with a private office and secretarial services.

 

8.             Relocation.  In the event that the Board of Directors of
the Company relocates the primary office of the Executive outside of the
Dallas, Texas metropolitan area, the Company shall pay all moving expenses of
the Executive to the place of the new office. 
Absent the written consent of the Executive, the Company shall not
relocate the primary office of the Executive to an office location which is not
the general corporate office of the Company.

 

9.             Travel
and Entertainment.  The Executive is
authorized to incur reasonable business expenses on behalf of the Company,
including, but not by way of limitation, expenditures of entertainment, gifts
and travel; if any expenses are of a kind or a cost in excess of the written
policies established by the Board of Directors of the Company, such expenses
must be expressly authorized by the Board of Directors of the Company. The
Company agrees to reimburse the Executive for all such expenses upon the
Executive’s presentation of an itemized account of such expenditures.  In addition to the foregoing, the Executive
is entitled to incur, and to be reimbursed by the Company, various and sundry
fees, costs and expenses (including, but not by way of limitation, fees and
costs involved in attending courses, seminars and continuing education
sessions) in connection with the Executive’s position with the Company.  These costs include the cost of membership in
and attendance at, meetings of one or more professional organizations
including, but not by way of limitation, the CEO Club.

 

 

10.           Non-Competition
Agreement.  In the event that the
termination of employment of the Executive pursuant to this Agreement is
effectuated by the Executive electing to terminate his employment pursuant to
this Agreement, and subject to the condition that the Company shall pay the
severance compensation as provided in Paragraph 6(b) of this Agreement, the
Executive agrees that the Executive shall not, for a one year period of time
following the date of termination of this Agreement, within Dallas, Dallas
County, Texas or within a radius of fifty (50) miles from any business location
of the Company and its subsidiaries in the continental United States on the
Termination Date, enter into or engage generally in direct competition with the
Company either as an individual on his own or as a partner or joint venturer,
or as an employee or agent for any person, or as an officer, director,
shareholder or otherwise of any entity other than the Company or an affiliate
of the Company.

 

11.           Notices.  All notices or other instruments or
communications provided for in this Agreement shall be in writing and signed by
the party giving same and shall be deemed properly given if delivered in
person, including delivery by overnight courier, or if sent by registered or
certified United States mail, postage pre-paid, addressed to such party at the
address listed below.  Each party may, by
notice to the other party, specify any other address for the receipt of such
notices, instruments or communications. 
Any notice, instrument or communication sent by telegram shall be deemed
properly given only when received by the person to whom it is sent.

 

12.           Certain
Conditions.

 

a.             “Special
Change in Control” means (i) any person or entity, including a “group” as
defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), other than the Company, a majority-owned subsidiary
thereof, or Executive and any affiliate of the Executive, becomes the
beneficial owner (as defined pursuant to Schedule 13(d)

 

 

under the Exchange Act) of the Company’s securities
having twenty-five percent (25%) or more of the combined voting power of the
then outstanding securities of the Company that may be cast for the election of
directors of the Company, or (ii) as the result of, or in connection with, any
cash tender or exchange offer, merger or other business combination, sales of
assets or contested election, or any combination of the foregoing transactions,
less than a majority of the combined voting power of the then outstanding
securities of the Company or any successor corporation or entity entitled to
vote generally in the election of the directors of the Company, or such other
corporation or entity after such transaction, are beneficially owned (as
defined pursuant to Section 13(d) of the Exchange Act) in the aggregate by the
holders of the Company’s securities entitled to vote generally in the election
of directors of the Company immediately prior to such transaction, or (iii)
during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Board of Directors of the Company cease for any
reason to constitute at least a majority thereof, unless the election, or the
nomination for election by the Company’s shareholders, of each director of the
Company first elected during such period was approved by a vote of at least
two-thirds of the directors of the Company then still in office who were
directors of the Company at the beginning of any such period.

 

b.             The “Effective
Date” of such Special Change in Control shall be the earlier of the date on
which an event described in Section 12(a) (i), (ii), or (iii) occurs, or if
earlier, the date of the occurrence of (i) the approval by

 

 

shareholders of an agreement by the Company, the
consummation of which would result in an event described in Section 12(a) (i),
(ii), or (iii), or (ii) the acquisition of beneficial ownership (as defined
pursuant to Section 13(d) of the Exchange Act), directly or indirectly, by any
entity, person or group (other than the Company, a majority-owed subsidiary of
the Company, or the Executive and any affiliate of the Executive) of securities
of the Company representing five percent (5%) or more of the combined voting
power of the Company’s outstanding securities, provided, however, that the
events described in Section 12(b)(i) and (ii) will be considered the Effective
Date of a Special Change in Control if they are followed within six (6) months
by an event described in Section 12(a) (i), (ii), or (iii).

 

c.             “Voluntary
Termination” shall mean Executive’s resignation from the Company unless such
resignation is for Good Reason. Good Reason shall mean the following (i)
without Executive’s express written consent, the assignment to Executive of any
duties materially inconsistent with his position, duties, responsibilities and
status (including his removal from the Board of Directors) with the Company,
(ii) a reduction of Executive’s base compensation and bonus compensation (other
than a reduction in payments under the Company’s incentive bonus program based
on a reduction in net profits of the Company) to an amount that is greater than
ten percent (10%) lower than such compensation, (iii) relocation of Executive’s
principal location of work to any location that is both (A) in excess of fifty
(50) miles from the location of Executive’s principal

 

 

location of work, and (B) in excess of the sum of the
distance from the Executive’s principal residence to the location of the
Executive’s principal location of work plus fifty (50) miles, (iv)  at the effective Date of a Special Change in
Control the Company fails to require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, by agreement in form and substance
reasonably satisfactory to the Executive, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform this Agreement if no such succession had
taken place, or (v) any material breach of this Agreement as in effect on the
Effective Date of the Special Change in Control by the Company.

 

13.           Miscellaneous.

 

a.             Subject
to the condition that this Agreement is not assignable by either party without
the prior written consent of the other party, the terms and provisions of this
Agreement shall inure to the benefit of, and shall be binding on, the parties
hereto and their respective heirs, representatives, successors and assigns.

 

b.             This
Agreement supersedes any other agreements, either oral or in writing, between
the parties to this Agreement, with respect to the employment of the Executive
by the Company.  This Agreement contains
the entire understanding of the parties and all of the covenants and agreement
between the parties with respect to such employment.  Any such prior agreements related to
employment of the Executive by the Company are hereby terminated without
obligation for any

 

 

payments due thereunder,
except for unpaid obligations which accrued and become payable prior to the
termination of any such agreements.

 

c.             Any
controversy between the parties to this Agreement involving the construction or
application of any of the terms, covenants, or conditions of this Agreement
(including, but not by way of limitation, the determination of any amounts
payable under the terms of this Agreement) shall be submitted to arbitration if
either party to this Agreement shall request arbitration by notice in writing
to the other party.  In such event, the
parties to this Agreement shall, within thirty (30) days after this Paragraph
13(c) is invoked, both appoint one person as an arbitrator to hear and
determine the dispute, and if such arbitrators shall be unable to agree within
fifteen (15) days after selection of the second of the two, then the two
arbitrators so chosen shall, within fifteen (15) days, select a third impartial
arbitrator whose decision shall be final and conclusive upon the parties to
this Agreement.  The decision of the
third arbitrator shall be rendered within fifteen (15) days after
selection.  The individual parties
expenses of the initial arbitration proceedings conducted pursuant to this
Agreement shall be borne separately by each party to this Agreement; the
expenses of a third arbitrator shall be borne equally by the Company and the
Executive.

 

d.             In
the event of any litigation between the parties related to the compliance with
the terms and conditions of this Agreement, the parties hereto acknowledge and
agree that such litigation proceedings must be held in Dallas County, Texas.

 

e.             This
Agreement has been made under and shall be governed by the laws of the State of
Texas.

 

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement effective as of the 1st day of January, 2005, but actually
executed this 29th day of December, 2004.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Lee

  
	
   

  	
   

  	
  Michael C. Lee

  
	
   

  	
   

  	
  Chief Financial
  Officer, Treasurer/V.P.

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  10670 North Central Expressway

  
	
   

  	
   

  	
  Suite 600

  
	
   

  	
   

  	
  Dallas, TX 75231

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ J. Michael Moore

  
	
   

  	
  J. Michael Moore

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  5919 Club Hill Place

  
	
   

  	
   

  	
  Dallas, Texas 75248

  
					

 

 

The Compensation
Committee have read and approved the renewed Two-Year Employment Agreement for
J. Michael Moore from January 1, 2005 to December 31, 2006, which is an exact
extension of prior contracts.

 

 

 

	
   

  	
  COMPENSATION COMMITTEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel E. Hunter

  
	
   

  	
   

  	
  Samuel E. Hunter,
  Compensation Committee

  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark E. Cline

  
	
   

  	
   

  	
  Mark E. Cline,
  Compensation Committee Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Gilreath

  
	
   

  	
   

  	
  John M.
  Gilreath, Compensation Committee Member

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