Document:

Exhibit 10.2

    
      Exhibit
        10.2

    

     

    
 

    EMPLOYMENT
      AGREEMENT

    

    

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”),
      dated
      as of January
      31,
      2007,
      is entered into by and between BTHC
      XI,
      Inc.,
      a
      Delaware corporation (together with its subsidiaries, the “Company”),
      and
Morry
      Rubin
      (the
“Employee”).
      

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Employee desires to serve the Company as Co-Chairman and Chief Executive
      Officer; and

    

    WHEREAS,
      the Company desires to employ the Employee as Co-Chairman and Chief Executive
      Officer.

    

    NOW
      THEREFORE in consideration of the mutual benefits to be derived from this
      Agreement, the Company and the Employee hereby agree as follows:

    

    1. Term
      of Employment; Office and Duties.

    

    (a) Commencing
      on the date hereof, and for an initial term ending January
      31,
      2010,
      the Company shall employ the Employee as Co-Chairman and Chief Executive
      Officer, with such duties and responsibilities consistent with such position
      as
      may from time to time be assigned to the Employee by the Company’s Board of
      Directors. The Employee agrees to perform such duties and discharge such
      responsibilities in accordance with the terms of this Agreement. This Agreement
      shall be automatically renewed for additional one year terms unless either
      party
      notifies the other, in writing, at least 60 days prior to the expiration of
      the
      term, of such party’s intention not to renew this Agreement. The period that the
      Employee serves as an employee of the Company pursuant to this Agreement,
      including as a result of any extension of the initial term, shall be referred
      to
      as the “Employment
      Term.”
      

    

    (b) The
      Employee shall be required to devote his full business time and efforts to
      the
      business and affairs of the Company other than during vacations and periods
      of
      illness or incapacity; provided that it is understood and agreed that until
      such
      time as the sale of Preferred Labor, LLC is completed it is expected that the
      Employee shall continue to provide minimal services to Preferred Labor, LLC,
      including in connection with completing such sale, and that the provision of
      such services will not be deemed to violate this Section 1(b)
      provided
      such services do not interfere with the performance of his duties and
      responsibilities under this Agreement.
      Notwithstanding the foregoing, the Employee shall be permitted to: (i) serve
      as
      a director of any organization or entity that does not result in a violation
      of
Section
      5;
      (ii)
      deliver lectures or fulfill speaking engagements; or (iii) make and manage
      passive investments and engage in charitable and community
      activities
      but only
      if such services and activities do not interfere with the performance of his
      duties and responsibilities under this Agreement.

    

    2. Compensation
      and Benefits.
      For all
      services rendered by the Employee during the Employment Term, including, without
      limitation, any services as a director generally or member of the any committee
      of the Board or any subsidiary or division thereof, the Employee shall be
      compensated as follows:

    

    
      
        
        

      

      
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    (a) Base
      Salary.
      The
      Company shall pay the Employee a fixed base salary (“Base
      Salary”).
      Initially the Base Salary shall be $1 per year. Effective commencing on the
      first day of the first month following such time as the Company shall have,
      within any period beginning on January 1 and ending not more than 12 months
      thereafter, earned pre-tax net income exceeding $1,000,000, the Base Salary
      shall be adjusted to an amount, to be mutually agreed upon between Employee
      and
      the Company, reflecting the fair value of the services provided, and to be
      provided, by Employee taking into account (i) Employee’s position,
      responsibilities and performance, (ii) the Company’s industry, size and
      performance, and (iii) other relevant factors. Base Salary will be payable
      in
      accordance with the customary payroll practices of the Company. As part of
      the
      Employees compensation program the Company extends a $1500 per month automobile
      allowance;
      it being
      understood the company shall not be responsible for any insurance, repairs,
      tires gas or other expenses related to Employee’s automobile except as provided
      in Section 3.

    

    (b)  Bonus.
      The
      Employee may be entitled to receive an annual bonus (“Annual
      Bonus”)
      for
      each fiscal year payable subsequent to the issuance of final audited financial
      statements for such fiscal year in the sole discretion of the Board in an amount
      as determined by the Compensation Committee of the Board. The targeted amount
      of
      any Annual Bonus (the “Target Bonus”) shall be determined by the Compensation
      Committee of the Board in its discretion. 

    

    (c) Fringe
      Benefits.
      

    

    (i)  The
      Employee shall be entitled to participate in such employee benefit and other
      compensatory or non-compensatory plans that are available to similarly situated
      executives of the Company, which may include disability, health, dental and
      life
      insurance plans, option and bonus plans and other fringe benefit plans or
      programs, including a 401(k) retirement plan, of the Company established from
      time to time by the Board, subject to the rules and regulations applicable
      thereto, and which shall include an executive insurance program under which
      Employee shall be entitled to be reimbursed for up to $25,000 of medical costs
      not covered by the Company’s health insurance per year.

     

    (ii)  Notwithstanding
      anything in Section
      2(c)(i)
      to the
      contrary, contemporaneous with the execution of this Agreement, the Employee
      will be granted a non-qualified stock option (the “Employment
      Option”)
      to
      purchase a total of 650,000 shares of the Company’s common stock, par value
      $.001 per share (the “Common
      Stock”),
      with
      an exercise price of $1.25 per share, pursuant to the Company’s 2007 Omnibus
      Equity Compensation Plan and the Employee will execute any award agreement
      or
      other documents required by the Company to evidence such grant. 33.33% of the
      options shall vest immediately on grant; an additional 33.33% of such options
      shall vest on February 29, 2008 and an additional 33.33% of such options shall
      vest on February 28, 2009; provided,
      however,
      that in
      the event (A) of a Change in Control or (B) the Employee's employment is
      terminated by (I) the Company without Cause pursuant to Section
      4(d)
      or (II)
      the Employee for Good Reason pursuant to Section
      4(e),
      all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full on the earliest of the date of the Change in Control or the date of the
      Employee's termination pursuant to Sections
      4(d)
      and
(e),
      as
      applicable. The term of the Employment Option will be 10 years from the date
      of
      grant.

     

    
      
        
        

      

      
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    (iii)  For
      purposes of this Agreement, a “Change
      in Control”
shall
      mean:

     

    (A)  the
      acquisition by any individual, entity or group (within the meaning of Section
      13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
      “Exchange
      Act”))
      (a
“Person”)
      of
“beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) of 50% or more of (I) the then-outstanding shares of Common Stock
      (the “Outstanding
      Company Common Stock”),
      or
      (II) the combined voting power of the then-outstanding voting securities of
      the
      Company generally entitled to vote in the election of directors (the
“Outstanding
      Company Voting Securities”)
      regardless of whether such acquisition is as a result of the issuance of
      securities by the Company to such Person, by such Person acquiring such shares
      publicly or in private sales (or in any combination of acquisitions or public
      or
      private sales or both), or otherwise; provided,
      however,
      that
      the following shall not constitute a Change in Control: (a) any issuance or
      acquisition of securities of the Company whereby the Employee (including his
      affiliates) reaches or exceeds such 50% threshold; (b) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the Company
      or any entity controlled by the Company; or (c) any issuance of shares of Series
      1 Preferred Stock issued in the Company’s initial offering of such shares or any
      shares of common stock issued upon conversion of such shares of Series 1
      Preferred Stock;

     

    (B)  approval
      by the stockholders of the Company of a reorganization, merger, consolidation
      or
      other business combination (collectively, a “Business
      Combination”),
      unless following such Business Combination more than 50% of, respectively,
      the
      then-outstanding shares of common stock of the entity resulting from such
      Business Combination and the combined voting power of the then-outstanding
      voting securities of such entity generally entitled to vote in the election
      of
      directors is then beneficially owned, directly or indirectly, by all or
      substantially all of the individuals and entities who were the beneficial
      owners, respectively, of the Outstanding Company Common Stock and Outstanding
      Company Voting Securities immediately prior to such Business Combination in
      substantially the same proportions as their ownership, immediately prior to
      such
      Business Combination, of the Outstanding Company Common Stock and Outstanding
      Company Voting Securities, as the case may be;
      and

     

    (C)  (I) approval
      by the stockholders of the Company of a complete liquidation or dissolution
      of
      the Company or (II) the first to occur of (a) the sale or other
      disposition (in one transaction or a series of related transactions) of all
      or
      substantially all of the assets of the Company, or (b) the approval by the
      stockholders of the Company of any such sale or disposition.

     

    (d) Withholding
      and Employment Tax.
      Payment
      of all compensation hereunder shall be subject to customary withholding tax
      and
      other employment taxes as may be required with respect to compensation paid
      by
      an employer to an employee.

    

    
      
        
        

      

      
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    (e) Disability.
      The
      Company shall, to the extent such benefits can be obtained at a reasonable
      cost,
      provide the Employee with disability insurance benefits of at least 60% of
      his
      gross Base Salary per month; provided that for purposes of the foregoing, prior
      to the date on which Employee’s Base Salary is adjusted in accordance with
      Section 2(a) Employee’s Base Salary shall be deemed to be $300,000. In the event
      of the Employee's Disability (as hereinafter defined), the Employee and his
      family shall continue to be covered by all of the Company's employee welfare
      benefit plans described under Section
      2(c),
      at the
      Company's expense, to the extent such benefits may, by law, be provided, for
      the
      lesser of the term of such Disability and 24 months, in accordance with the
      terms of such plans.

    

    (f) Death.
      The
      Company shall, to the extent such benefits can be obtained at a reasonable
      cost,
      provide the Employee with life insurance benefits in the amount of at least
      $500,000. In the event of the Employee's death, the Employee's family shall
      continue to be covered by all of the Company's employee welfare benefit plans
      described under Section
      2(c),
      at the
      Company's expense, to the extent such benefits may, by law, be provided, for
      12
      months following the Employee's death in accordance with the terms of such
      plans.

    

    (g) Vacation.
      The
      Employee shall receive four weeks of vacation annually, administered in
      accordance with the Company's existing vacation policy. 

    

    3. Business
      Expenses.
      The
      Company shall pay or reimburse the Employee for all reasonable travel (including
      travel by automobile), business and entertainment expenses incurred by or
      necessary for the Employee to perform his duties under this Agreement in
      accordance with such policies and procedures as the Company may from time to
      time establish for senior officers and subject to the Company's normal
      requirements with respect to reporting and documentation of such expenses.
      

    

    4. Termination
      of Employment.
      Notwithstanding any other provision of this Agreement, the Employee's employment
      with the Company may be terminated as set forth below:

    

    (a) Termination
      by Mutual Agreement.
      The
      Employee's employment with the Company may be terminated at anytime by, and
      upon
      the terms and conditions of, a mutual written agreement between the
      parties.

    

    (b) Termination
      for Cause.
      The
      Employee's employment with the Company may be terminated by the Company for
      Cause. Provided Cause actually exists, the
      date
      of termination for Cause shall be the date the Company sends the Employee a
      written notice to such effect specifying the reason(s) for the termination
      for
      Cause.
      For
      purposes of this Agreement, “Cause”
shall
      mean any one of the following: (i) conviction of the Employee for committing
      a
      felony or crime or other crime involving moral turpitude; (ii) the Employee
      having committed acts or omissions constituting willful or wanton misconduct
      with respect to the Company; (iii) the Employee having committed any act of
      fraud or embezzlement involving the Company; (iv) the Employee having committed
      any willful and material violation of any statutory or common law duty of
      loyalty to the Company; (v) the Employee having committed acts or omissions
      constituting a material breach of this Agreement that continues for more than
      15
      days after notice from the Company specifically identifying such
      breach.
      In the
      event of any termination under this Section
      4(b),
      the
      Company shall pay all amounts of Base Salary then due to the Employee under
      Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (but expressly excluding any bonuses or other incentive
      compensation). The Company shall have no further obligations to the Employee
      under this Agreement (including no obligation with respect to bonuses or other
      incentive compensation), and any and all stock options granted to the Employee
      shall terminate according to their terms of grant with any such vested options
      being exercisable for the shorter of (i) 90 days from the date of termination
      and (ii) the exercise term of each relevant option grant.

    

    
      
        
        

      

      
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    (b) Termination
      for Disability.
      The
      Employee's employment with the Company may be terminated by the Company in
      the
      event of the Employee's Disability. The
      date
      of termination for Disability shall be the date the Company sends the Employee
      a
      written notice to such effect. In
      the
      event of any termination under this Section
      4(b),
      on the
      date of termination all options that would have otherwise vested within the
      12
      months following the date of the date of termination shall accelerate and
      immediately vest and become exercisable in full. Such options may be exercised
      for the longer of (i) 12 months from the date of the date of termination and
      (ii) the exercise term of each relevant option grant. For purposes of this
      Agreement, “Disability”
shall
      mean the inability of the Employee, in the reasonable judgment of a physician
      appointed by the Board, to perform his duties of employment because of any
      physical or mental disability or incapacity, where such disability shall exist
      for an aggregate period of more than 150 days in any 365-day period or for
      any
      period of 90 consecutive days. In the event of any termination under this
Section
      4(b),
      the
      Company shall (i) pay by the next payroll period all amounts then due to the
      Employee under Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (including bonuses then-earned or owing), and (ii) comply
      with its obligations under Section
      2(e).

    

    (c) Termination
      upon Death.
      The
      Employee's employment with the Company automatically terminates on the
      Employee's death. In the event of the Employee's death (i) the Company will
      continue to pay the Employee's heirs or beneficiaries his Base Salary for 6
      months following the date of termination (on regular payroll dates) and (ii)
      on
      the date of termination all options that would have otherwise vested within
      the
      12 months following the date of the Employee's death shall accelerate and
      immediately vest and become exercisable in full. Such options may be exercised
      for the longer of (i) 12 months from the date of the Employee's death and (ii)
      the exercise term of each relevant option grant. In addition, in the event
      of
      the Employee's death, the Company shall (i) pay by the next payroll period
      all
      amounts then due to the Employee under Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (including bonuses then-earned or owing), and (ii) comply
      with its obligations under Section
      2(f).

    

    (d) Termination
      without Cause.
      The
      Employee's employment with the Company may be terminated by the Company, in
      the
      absence of Cause, for any reason and in its sole and absolute discretion,
      provided that in such event (which
      would include the Company's declining to extend the Employment Term in
      accordance with Section 1(a))
      the
      Company shall continue to pay to the Employee the Base Salary (on regular
      payroll dates) for twelve months from the date of termination (the “Termination
      Payments”)
      plus
      any bonuses then-earned or owing on the date of termination and an amount equal
      to the Target Bonus for the year in which the termination occurs pro rated
      based
      on the number of days of service in such year.  On
      the
      date of termination, all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full.
      Such
      options may be exercised for the longer of (i) 12 months from the date of
      termination and (ii) the exercise term of each relevant option grant. Finally,
      during any period in which Termination Payments are required to be paid, the
      Company shall continue the benefits for the Employee and his family provided
      for
      under Section
      2
      at no
      cost to the Employee.

    

    
      
        
        

      

      
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    (e) Termination
      by
      the
      Employee for
      Good Reason.
      The
      Employee's employment with the Company may be terminated by the Employee for
      Good Reason. “Good
      Reason”
shall
      be deemed to exist: (i) if the Employee’s duties or responsibilities are
      materially diminished or the Employee is assigned any duties materially
      inconsistent with the duties or responsibilities contemplated by this Agreement;
      (ii) if the Company shall have continued to fail to comply with any material
      provision of this Agreement after a 30-day period to cure (if such failure
      is
      curable) following written notice by the Employee to the Company of such
      non-compliance; (iii) upon a Change in Control; or (iv) if the Company requires
      that the Employee be based at any location other than Charlotte, NC or Boca
      Raton, FL (or the suburban area of either). In the event of any termination
      under this Section
      4(e),
      the
      Company shall pay the Termination Payments plus any bonuses then-earned or
      owing
      on the date of termination and an amount equal to the Target Bonus for the
      year
      in which the termination occurs pro rated based on the number of days of service
      in such year to the Employee in the same amount and manner as under Section
      4(d).
      On
      the
      date of termination, all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full.
      Such
      options may be exercised for the longer of (i) 12 months from the date of
      termination and (ii) the exercise term of each relevant option grant. Finally,
      during any period in which Termination Payments are required to be paid, the
      Company shall continue the benefits for the Employee and his family provided
      for
      under Section
      2
      at no
      cost to the Employee.

    

    (f) Voluntary
      Resignation.
      The
      Employee's employment with the Company may be terminated by the Employee without
      Good Reason. In the event of any termination under this Section
      4(f),
      the
      Company shall pay all amounts of Base Salary then due to the Employee under
      Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (but expressly excluding any bonuses or other incentive
      compensation). The Company shall have no further obligations to the Employee
      under this Agreement (including no obligation with respect to bonuses or other
      incentive compensation), and any and all stock options granted to the Employee
      shall terminate according to their terms of grant; provided that if such
      termination occurs during the first year of the Employment Term any such vested
      options would be exercisable for the shorter of (i) 90 days from the date of
      termination and (ii) the exercise term of each relevant option grant, and if
      the
      termination occurs thereafter any such vested options would continue to be
      exercisable for the full exercise term of each relevant option
      grant.

    

    5. Non-Competition.
      During
      the Employment Term and for two years following termination thereof (other
      than
      any such termination by the Company without Cause or by the Employee for Good
      Reason), the Employee shall not, directly or indirectly own any interest in,
      manage, control, participate in, consult with, render services for, advise,
      or
      in any manner engage in the Company Business within a 100 mile radius of any
      office operated by the Company or any subsidiary of the Company, whether as
      an
      officer, director, stockholder, consultant, investor, agent or otherwise (unless
      the Board shall have authorized such activity and the Company shall have
      consented thereto in writing). For purposes of this Section 5, “Company
      Business” means (i) providing
      accounts receivable funding (factoring), outsourcing of accounts receivable
      management including collections and the risk of customer default, purchase
      order financing, lawsuit financing, trade finance and government contract
      funding and (ii) back office support including payroll, payroll tax compliance
      and invoice processing services. Passive
      investments in less than 5% of the outstanding securities of any entity subject
      to the reporting requirements of Section 13 or Section 15(d) of the Exchange
      Act, shall not be prohibited by this Section
      5.
      The
      provisions of this Section
      5
      are
      subject to the provisions of Section
      14.

    

    
      
        
        

      

      
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    6. Inventions
      and Confidential Information.
      The
      parties hereto recognize that a major need of the Company is to preserve its
      specialized knowledge, trade secrets and confidential information. The strength
      and good will of the Company is derived from the specialized knowledge, trade
      secrets, and confidential information generated from experience with the
      activities undertaken by the Company. The unauthorized disclosure of this
      information and knowledge to competitors would be beneficial to such competitors
      and detrimental to the Company, as would the disclosure of non-public
      information about the marketing practices, pricing practices, costs, profit
      margins, design specifications, development and business plans, analytical
      techniques and similar items of the Company. The Employee acknowledges that
      specific proprietary information and non-public data obtained by him while
      employed by the Company concerning the business or affairs of the Company are
      the property of the Company. By reason of his being a senior executive of the
      Company, the Employee has or will have access to, and has obtained or will
      obtain, trade secrets and confidential information about the Company's
      operations, which operations extend throughout the United States. Therefore,
      subject to the provisions of Section
      14,
      the
      Employee hereby agrees as follows, recognizing that the Company is relying
      on
      these agreements in entering into this Agreement:

    

    (a) During
      the Employment Term and for three years following termination of the Employee's
      employment with the Company for any reason, the Employee will not use, disclose
      to others, or publish or otherwise make available to any other party (other
      than
      in furtherance of his obligations hereunder) any non-public or confidential
      business information about the business and affairs of the Company, including
      but not limited to confidential information concerning the Company's products,
      methods, engineering designs and standards, analytical techniques, technical
      information, customer information, employee information, inventions and other
      confidential information acquired by him in the course of his past or future
      services for the Company during the Employment Term. The Employee agrees to
      hold
      as the Company's property all books, papers, letters, formulas, memoranda,
      notes, plans, records, reports, computer tapes, printouts, software and other
      documents, and all copies thereof and therefrom, relating to the Company's
      business and affairs conducted by him as Chief Executive Officer of the Company,
      whether made by him or otherwise coming into his possession or control, and
      on
      termination of his employment, or upon demand of the Company, at any time after
      termination of his employment, to deliver the same to the Company.

     

    
      
        
        

      

      
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    (b) During
      the Employment Term and for 18 months following termination of the Employee's
      employment with the Company for any reason, the Employee will not (i) directly
      or indirectly, including through an entity or agent, induce or otherwise attempt
      to influence any employee of the Company to leave the Company's employ, (ii)
      hire, cause to be hired or induce a third party to hire, any such employee
      (unless the Board shall have authorized such employment and the Company shall
      have consented thereto in writing) or in any way materially interfere with
      the
      relationship between the Company and any employee thereof, or (iii) induce
      or
      attempt to induce any customer, supplier, licensee, licensor or other business
      relation of the Company to cease or otherwise limit doing business with the
      Company or in any way materially interfere to the detriment of the Company
      with
      the relationship between any such customer, supplier, licensee or business
      relation of the Company. 

    

    7. Indemnification;
      Director and Officer Liability Insurance.
      The
      Company will indemnify (and advance the costs of defense of) the Employee (and
      his legal representatives) to the fullest extent permitted by the laws of the
      state in which the Company is incorporated, as in effect at the time of the
      subject act or omission, or by the Certificate of Incorporation and Bylaws
      of
      the Company, as in effect at such time or on the date of this Agreement,
      whichever affords greater protection to the Employee, and both
      during and after termination (for any reason) of the Employee's employment,
      the
      Company shall cause the Employee to be covered under a directors and officers'
      liability insurance policy for his acts (or non-acts) as an officer or director
      of the Company or any of its affiliates. Such policy shall be maintained by
      the
      Company, at its expense in an amount of at least $5 million and on terms
      (including the time period of coverage after the Employee's employment
      terminates) at least as favorable to the Employee as policies covering the
      Company's other members of its Board of Directors.

    

    8. Litigation
      Expenses.
      In the
      event of any litigation or other proceeding between the Company and the Employee
      with respect to the subject matter of this Agreement and the enforcement of
      the
      rights hereunder and such litigation or proceeding results in final judgment
      or
      order in favor of the Employee, which judgment or order is substantially
      inconsistent with the positions asserted by the Company in such litigation
      or
      proceeding, the losing party shall reimburse the prevailing party for all of
      his/its reasonable costs and expenses relating to such litigation or other
      proceeding, including, without limitation, his/its reasonable attorneys' fees
      and expenses. 

    

    9. Consolidation;
      Merger; Sale of Assets; Change of Control.
      Nothing
      in this Agreement shall preclude the Company from combining, consolidating
      or
      merging with or into, transferring all or substantially all of its assets to,
      or
      entering into a partnership or joint venture with, another corporation or other
      entity, or effecting any other kind of corporate combination provided that
      the
      corporation resulting from or surviving such combination, consolidation or
      merger, or to which such assets are transferred, or such partnership or joint
      venture expressly assumes in writing this Agreement and all obligations and
      undertakings of the Company hereunder. Upon such a consolidation, merger,
      transfer of assets or formation of such partnership or joint venture, this
      Agreement shall inure to the benefit of, be assumed by, and be binding upon
      such
      resulting or surviving transferee corporation or such partnership or joint
      venture, and the term “Company,” as used in this Agreement, shall mean such
      corporation, partnership or joint venture or other entity, and this Agreement
      shall continue in full force and effect and shall entitle the Employee and
      his
      heirs, beneficiaries and representatives to exactly the same compensation,
      benefits, perquisites, payments and other rights as would have been their
      entitlement had such combination, consolidation, merger, transfer of assets
      or
      formation of such partnership or joint venture not occurred. 

    

    
      
        
        

      

      
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    10. No
      Set-off; No Mitigation Required.
      Except
      as expressly provided otherwise in this Agreement, the obligation of the Company
      to make any payments provided for hereunder and otherwise to perform its
      obligations hereunder will not be affected by any set-off, counterclaim,
      recoupment, defense or other claim, right or action which the Company may have
      against the Employee or others. In no event will the Employee be obligated
      to
      seek other employment or take other action by way of mitigation of the amounts
      payable to the Employee under any of the provisions of this Agreement, and
      such
      amounts will not be reduced (except as otherwise specifically provided herein)
      whether or not the Employee obtains other employment.

    

    11. Section
      409A Compliance.
      This
      Agreement is intended to comply with Internal Revenue Code Section 409A.
      Notwithstanding any provision herein to the contrary, this Agreement shall
      be
      interpreted, operated and administered consistent with this intent. In that
      regard, any payment described herein that is subject to Code Section 409A shall
      not be made earlier than six (6) months after the date of termination to the
      extent required by Code Section 409A(a)(2)(B)(i); provided that any such payment
      that is deferred pursuant to this Section 11 shall be paid in full as soon
      as
      possible consistent with this Section 11.

    

    12. Survival
      of Obligations.
      Sections
      4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15
      and
16
      shall
      survive the termination for any reason of this Agreement (whether such
      termination is by the Company, by the Employee, upon the expiration of this
      Agreement or otherwise).

    

    13. Employee's
      Representations.
      The
      Employee hereby represents and warrants to the Company that (i) the execution,
      delivery and performance of this Agreement by the Employee do not and shall
      not
      conflict with, breach, violate or cause a default under any material contract,
      agreement, instrument, order, judgment or decree to which the Employee is a
      party or by which he is bound, (ii) the Employee is not a party to, or bound
      by,
      any employment agreement, noncompete agreement or confidentiality agreement
      with
      any other person or entity, and (iii) upon the execution and delivery of this
      Agreement by the Company, this Agreement shall be the valid and binding
      obligation of the Employee, enforceable in accordance with its terms. The
      Employee hereby acknowledges and represents that he has consulted with legal
      counsel regarding his rights and obligations under this Agreement and that
      he
      fully understands the terms and conditions contained herein.

    

    14. Company's
      Representations.
      The
      Company hereby represents and warrants to the Employee that (i) the execution,
      delivery and performance of this Agreement by the Company do not and shall
      not
      conflict with, breach, violate or cause a default under any material contract,
      agreement, instrument, order, judgment or decree to which the Company is a
      party
      or by which it is bound, and (ii) upon the execution and delivery of this
      Agreement by the Employee, this Agreement shall be the valid and binding
      obligation of the Company, enforceable in accordance with its
      terms.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    15. Enforcement.
      Because
      the Employee's services are unique and because the Employee has access to
      confidential information concerning the Company, the parties hereto agree that
      money damages shall not be an adequate remedy for any breach of this Agreement.
      Therefore, in the event of a breach or threatened breach of this Agreement
      that
      cannot be compensated with monetary damages, the Company may, in addition to
      other rights and remedies existing in its favor, apply to any court of competent
      jurisdiction for specific performance and/or injunctive or other relief in
      order
      to enforce, or prevent any violations of, the provisions hereof (without posting
      a bond or other security).

    

    16. Severability.
      In case
      any one or more of the provisions or part of a provision contained in this
      Agreement shall for any reason be held to be invalid, illegal or unenforceable
      in any respect in any jurisdiction, such invalidity, illegality or
      unenforceability shall be deemed not to affect any other jurisdiction or any
      other provision or part of a provision of this Agreement, nor shall such
      invalidity, illegality or unenforceability affect the validity, legality or
      enforceability of this Agreement or any provision or provisions hereof in any
      other jurisdiction; and this Agreement shall be reformed and construed in such
      jurisdiction as if such provision or part of a provision held to be invalid
      or
      illegal or unenforceable had never been contained herein and such provision
      or
      part reformed so that it would be valid, legal and enforceable in such
      jurisdiction to the maximum extent possible. In furtherance and not in
      limitation of the foregoing, the Company and the Employee each intend that
      the
      covenants contained in Sections
      5
      and
6
      shall be
      deemed to be a series of separate covenants. If, in any judicial proceeding,
      a
      court shall refuse to enforce any of such separate covenants, then such
      unenforceable covenants shall be deemed eliminated from the provisions hereof
      for the purpose of such proceedings to the extent necessary to permit the
      remaining separate covenants to be enforced in such proceedings. If, in any
      judicial proceeding, a court shall refuse to enforce any one or more of such
      separate covenants because the total time, scope or area thereof is deemed
      to be
      excessive or unreasonable, then it is the intent of the parties hereto that
      such
      covenants, which would otherwise be unenforceable due to such excessive or
      unreasonable period of time, scope or area, be enforced for such lesser period
      of time, scope or area as shall be deemed reasonable and not excessive by such
      court.

    

    17. Entire
      Agreement; Amendment.
      This
      Agreement contains the entire agreement between the Company and the Employee
      with respect to the subject matter hereof. This Agreement may not be amended,
      waived, changed, modified or discharged except by an instrument in writing
      executed by or on behalf of the party against whom enforcement of any amendment,
      waiver, change, modification or discharge is sought. No course of conduct or
      dealing shall be construed to modify, amend or otherwise affect any of the
      provisions hereof.

    

    18. Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed to have been duly given if physically delivered,
      delivered by express mail or other expedited service or upon receipt if mailed,
      postage prepaid, via registered mail, return receipt requested, addressed as
      follows:

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

      

    
      	 (a) To
              the Company:	 (b) To
              the Employee:
	
              BTHC
                XI, Inc.

              c/o
                Anchor Funding Services, LLC

              2201
                Crownpoint Executive Drive

              Charlotte,
                NC 28227

            	
              Morry
                Rubin

              17853
                Key Vista Way

              Boca
                Raton, FL 33496

            

    

    

    and/or
      to
      such other persons and addresses as any party shall have specified in writing
      to
      the other.

    

    19. Assignability.
      This
      Agreement shall not be assignable by either party and shall be binding upon,
      and
      shall inure to the benefit of, the heirs, executors, administrators, legal
      representatives, successors and assigns of the parties. In the event that all
      or
      substantially all of the business of the Company is sold or transferred, then
      this Agreement shall be binding on the transferee of the business of the Company
      whether or not this Agreement is expressly assigned to the
      transferee.

    

    20. Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      Delaware without regard to conflict of laws principles.

    

    21. Waiver
      and Further Agreement.
      Any
      waiver of any breach of any terms or conditions of this Agreement shall not
      operate as a waiver of any other breach of such terms or conditions or any
      other
      term or condition, nor shall any failure to enforce any provision hereof operate
      as a waiver of such provision or of any other provision hereof. Each of the
      parties hereto agrees to execute all such further instruments and documents
      and
      to take all such further action as the other party may reasonably require in
      order to effectuate the terms and purposes of this Agreement.

    

    22. Headings
      of No Effect.
      The
      Section headings contained in this Agreement are for reference purposes only
      and
      shall not in any way affect the meaning or interpretation of this
      Agreement.

     

     

     

     

     

     

     

     

    

    (Remainder
      of page intentionally left blank)

    

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

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

     

    
      	 	 	COMPANY:
	 	 	 
	 	 	BTHC XI, INC. 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
              Brad Bernstein
	 	
              Title:
                President  

            

    

    
      	 	 	 
	 	
              EMPLOYEE:

            
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Morry
              Rubin
	 	 

    

    

     

    
      
        
        

      

      
        12Exhibit
      10.3

    EMPLOYMENT
      AGREEMENT

    

    

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”),
      dated
      as of January
      31,
      2007
      is entered into by and between BTHC
      XI,
      Inc.,
      a
      Delaware corporation (together with its subsidiaries, the “Company”),
      and
Brad
      Bernstein
      (the
“Employee”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Employee desires to serve the Company as President and Chief Financial
      Officer; and

    

    WHEREAS,
      the Company desires to employ the Employee as President and Chief Financial
      Officer.

    

    NOW
      THEREFORE in consideration of the mutual benefits to be derived from this
      Agreement, the Company and the Employee hereby agree as follows:

    

    1. Term
      of Employment; Office and Duties.

    

    (a) Commencing
      on the date hereof, and for an initial term ending January
      31,
      2010,
      the Company shall employ the Employee as President and Chief Financial Officer,
      with such duties and responsibilities consistent with such position as may
      from
      time to time be assigned to the Employee by the Company’s Board of Directors.
      The Employee agrees to perform such duties and discharge such responsibilities
      in accordance with the terms of this Agreement. This Agreement shall be
      automatically renewed for additional one year terms unless either party notifies
      the other, in writing, at least 60 days prior to the expiration of the term,
      of
      such party’s intention not to renew this Agreement. The period that the Employee
      serves as an employee of the Company pursuant to this Agreement, including
      as a
      result of any extension of the initial term, shall be referred to as the
“Employment
      Term.”
      

    

    (b) The
      Employee shall be required to devote his full business time and efforts to
      the
      business and affairs of the Company other than during vacations and periods
      of
      illness or incapacity; provided that it is understood and agreed that until
      such
      time as the sale of Preferred Labor, LLC is completed it is expected that the
      Employee shall continue to provide minimal services to Preferred Labor, LLC,
      including in connection with completing such sale, and that the provision of
      such services will not be deemed to violate this Section 1(b)
      provided
      such services do not interfere with the performance of his duties and
      responsibilities under this Agreement.
      Notwithstanding the foregoing, the Employee shall be permitted to: (i) serve
      as
      a director of any organization or entity that does not result in a violation
      of
Section
      5;
      (ii)
      deliver lectures or fulfill speaking engagements; or (iii) make and manage
      passive investments and engage in charitable and community
      activities
      but only
      if such services and activities do not interfere with the performance of his
      duties and responsibilities under this Agreement.

    

    2. Compensation
      and Benefits.
      For all
      services rendered by the Employee during the Employment Term, including, without
      limitation, any services as a director generally or member of the any committee
      of the Board or any subsidiary or division thereof, the Employee shall be
      compensated as follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) Base
      Salary.
      The
      Company shall pay the Employee a fixed base salary (“Base
      Salary”)
      of
      $205,000 during the first year of the Employment Term, $220,000 during the
      second year of the Employment Term and $240,000 during the Third Year and any
      additional year of the Employment Term. The Board may periodically review the
      Employee's Base Salary and may determine to increase (but not decrease) the
      Base
      Salary, in accordance with such policies as the Company may hereafter adopt
      from
      time to time, if it deems appropriate. Base Salary will be payable in accordance
      with the customary payroll practices of the Company. As part of the Employee’s
      compensation program the Company extends a $1000 per month automobile
      allowance;
      it being
      understood the Company shall not be responsible for any insurance, repairs,
      tires gas or other expenses related to Employee’s automobile except as provided
      in Section 3.

    

    (b)  Bonus.
      The
      Employee may be entitled to receive an annual bonus (“Annual
      Bonus”)
      for
      each fiscal year payable subsequent to the issuance of final audited financial
      statements for such fiscal year in the sole discretion of the Board in an amount
      as determined by the Compensation Committee of the Board. The targeted amount
      of
      any Annual Bonus (the “Target Bonus”) shall be determined by the Compensation
      Committee of the Board in its discretion. 

    

    (c) Fringe
      Benefits.
      

    

    (i)  The
      Employee shall be entitled to participate in such employee benefit and other
      compensatory or non-compensatory plans that are available to similarly situated
      executives of the Company, which may include disability, health, dental and
      life
      insurance plans, option and bonus plans and other fringe benefit plans or
      programs, including a 401(k) retirement plan, of the Company established from
      time to time by the Board, subject to the rules and regulations applicable
      thereto, and which shall include an executive insurance program under which
      Employee shall be entitled to be reimbursed for up to $25,000 of medical costs
      not covered by the Company’s health insurance per year. The Employee shall also
      be entitled to reimbursement for out-of-pocket moving costs incurred in
      connection with the relocation of the Company’s offices to Boca Raton,
      FL.

     

    (ii)  Notwithstanding
      anything in Section
      2(c)(i)
      to the
      contrary, contemporaneous with the execution of this Agreement, the Employee
      will be granted a non-qualified stock option (the “Employment
      Option”)
      to
      purchase 950,000 shares of the Company’s common stock, par value $.001 per share
      (the “Common
      Stock”),
      with
      an exercise price of $1.25 per share, pursuant to the Company’s 2007 Omnibus
      Equity Compensation Plan and the Employee will execute any award agreement
      or
      other documents required by the Company to evidence such grant. 33.33% of the
      options shall vest immediately on grant; an additional 33.33% of such options
      shall vest on February 29, 2008 and an additional 33.33% of such options shall
      vest on February 28, 2009; provided,
      however,
      that in
      the event (A) of a Change in Control or (B) the Employee's employment is
      terminated by (I) the Company without Cause pursuant to Section
      4(d)
      or (II)
      the Employee for Good Reason pursuant to Section
      4(e),
      all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full on the earliest of the date of the Change in Control or the date of the
      Employee's termination pursuant to Sections
      4(d)
      and
(e),
      as
      applicable. The term of the Employment Option will be 10 years from the date
      of
      grant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)  For
      purposes of this Agreement, a “Change
      in Control”
shall
      mean:

     

    (A)  the
      acquisition by any individual, entity or group (within the meaning of Section
      13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
      “Exchange
      Act”))
      (a
“Person”)
      of
“beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) of 50% or more of (I) the then-outstanding shares of Common Stock
      (the “Outstanding
      Company Common Stock”),
      or
      (II) the combined voting power of the then-outstanding voting securities of
      the
      Company generally entitled to vote in the election of directors (the
“Outstanding
      Company Voting Securities”)
      regardless of whether such acquisition is as a result of the issuance of
      securities by the Company to such Person, by such Person acquiring such shares
      publicly or in private sales (or in any combination of acquisitions or public
      or
      private sales or both), or otherwise; provided,
      however,
      that
      the following shall not constitute a Change in Control: (a) any issuance or
      acquisition of securities of the Company whereby the Employee (including his
      affiliates) reaches or exceeds such 50% threshold; (b) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the Company
      or any entity controlled by the Company; or (c) any issuance of shares of Series
      1 Preferred Stock issued in the Company’s initial offering of such shares or any
      shares of common stock issued upon conversion of such shares of Series 1
      Preferred Stock;

     

    (B)  approval
      by the stockholders of the Company of a reorganization, merger, consolidation
      or
      other business combination (collectively, a “Business
      Combination”),
      unless following such Business Combination more than 50% of, respectively,
      the
      then-outstanding shares of common stock of the entity resulting from such
      Business Combination and the combined voting power of the then-outstanding
      voting securities of such entity generally entitled to vote in the election
      of
      directors is then beneficially owned, directly or indirectly, by all or
      substantially all of the individuals and entities who were the beneficial
      owners, respectively, of the Outstanding Company Common Stock and Outstanding
      Company Voting Securities immediately prior to such Business Combination in
      substantially the same proportions as their ownership, immediately prior to
      such
      Business Combination, of the Outstanding Company Common Stock and Outstanding
      Company Voting Securities, as the case may be;
      and

     

    (C)  (I) approval
      by the stockholders of the Company of a complete liquidation or dissolution
      of
      the Company or (II) the first to occur of (a) the sale or other
      disposition (in one transaction or a series of related transactions) of all
      or
      substantially all of the assets of the Company, or (b) the approval by the
      stockholders of the Company of any such sale or disposition.

     

    (d) Withholding
      and Employment Tax.
      Payment
      of all compensation hereunder shall be subject to customary withholding tax
      and
      other employment taxes as may be required with respect to compensation paid
      by
      an employer to an employee.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) Disability.
      The
      Company shall, to the extent such benefits can be obtained at a reasonable
      cost,
      provide the Employee with disability insurance benefits of at least 60% of
      his
      gross Base Salary per month. In the event of the Employee's Disability (as
      hereinafter defined), the Employee and his family shall continue to be covered
      by all of the Company's employee welfare benefit plans described under
Section
      2(c),
      at the
      Company's expense, to the extent such benefits may, by law, be provided, for
      the
      lesser of the term of such Disability and 24 months, in accordance with the
      terms of such plans.

    

    (f) Death.
      The
      Company shall, to the extent such benefits can be obtained at a reasonable
      cost,
      provide the Employee with life insurance benefits in the amount of at least
      $500,000. In the event of the Employee's death, the Employee's family shall
      continue to be covered by all of the Company's employee welfare benefit plans
      described under Section
      2(c),
      at the
      Company's expense, to the extent such benefits may, by law, be provided, for
      12
      months following the Employee's death in accordance with the terms of such
      plans.

    

    (g) Vacation.
      The
      Employee shall receive four weeks of vacation annually, administered in
      accordance with the Company's existing vacation policy. 

    

    3. Business
      Expenses.
      The
      Company shall pay or reimburse the Employee for all reasonable travel (including
      travel by automobile), business and entertainment expenses incurred by or
      necessary for the Employee to perform his duties under this Agreement in
      accordance with such policies and procedures as the Company may from time to
      time establish for senior officers and subject to the Company's normal
      requirements with respect to reporting and documentation of such expenses.
      

    

    4. Termination
      of Employment.
      Notwithstanding any other provision of this Agreement, the Employee's employment
      with the Company may be terminated as set forth below:

    

    (a) Termination
      by Mutual Agreement.
      The
      Employee's employment with the Company may be terminated at anytime by, and
      upon
      the terms and conditions of, a mutual written agreement between the
      parties.

    

    (b) Termination
      for Cause.
      The
      Employee's employment with the Company may be terminated by the Company for
      Cause. Provided Cause actually exists, the
      date
      of termination for Cause shall be the date the Company sends the Employee a
      written notice to such effect specifying the reason(s) for the termination
      for
      Cause.
      For
      purposes of this Agreement, “Cause”
shall
      mean any one of the following: (i) conviction of the Employee for committing
      a
      felony or crime or other crime involving moral turpitude; (ii) the Employee
      having committed acts or omissions constituting willful or wanton misconduct
      with respect to the Company; (iii) the Employee having committed any act of
      fraud or embezzlement involving the Company; (iv) the Employee having committed
      any willful and material violation of any statutory or common law duty of
      loyalty to the Company; (v) the Employee having committed acts or omissions
      constituting a material breach of this Agreement that continues for more than
      15
      days after notice from the Company specifically identifying such
      breach.
      In the
      event of any termination under this Section
      4(b),
      the
      Company shall pay all amounts of Base Salary then due to the Employee under
      Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (but expressly excluding any bonuses or other incentive
      compensation). The Company shall have no further obligations to the Employee
      under this Agreement (including no obligation with respect to bonuses or other
      incentive compensation), and any and all stock options granted to the Employee
      shall terminate according to their terms of grant with any such vested options
      being exercisable for the shorter of (i) 90 days from the date of termination
      and (ii) the exercise term of each relevant option grant. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Termination
      for Disability.
      The
      Employee's employment with the Company may be terminated by the Company in
      the
      event of the Employee's Disability. The
      date
      of termination for Disability shall be the date the Company sends the Employee
      a
      written notice to such effect. In
      the
      event of any termination under this Section
      4(b),
      on the
      date of termination all options that would have otherwise vested within the
      12
      months following the date of the date of termination shall accelerate and
      immediately vest and become exercisable in full. Such options may be exercised
      for the longer of (i) 12 months from the date of the date of termination and
      (ii) the exercise term of each relevant option grant. For purposes of this
      Agreement, “Disability”
shall
      mean the inability of the Employee, in the reasonable judgment of a physician
      appointed by the Board, to perform his duties of employment because of any
      physical or mental disability or incapacity, where such disability shall exist
      for an aggregate period of more than 150 days in any 365-day period or for
      any
      period of 90 consecutive days. In the event of any termination under this
Section
      4(b),
      the
      Company shall (i) pay by the next payroll period all amounts then due to the
      Employee under Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (including bonuses then-earned or owing), and (ii) comply
      with its obligations under Section
      2(e).

    

    (c) Termination
      upon Death.
      The
      Employee's employment with the Company automatically terminates on the
      Employee's death. In the event of the Employee's death (i) the Company will
      continue to pay the Employee's heirs or beneficiaries his Base Salary for 6
      months following the date of termination (on regular payroll dates) and (ii)
      on
      the date of termination all options that would have otherwise vested within
      the
      12 months following the date of the Employee's death shall accelerate and
      immediately vest and become exercisable in full. Such options may be exercised
      for the longer of (i) 12 months from the date of the Employee's death and (ii)
      the exercise term of each relevant option grant. In addition, in the event
      of
      the Employee's death, the Company shall (i) pay by the next payroll period
      all
      amounts then due to the Employee under Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (including bonuses then-earned or owing), and (ii) comply
      with its obligations under Section
      2(f).

    

    (d) Termination
      without Cause.
      The
      Employee's employment with the Company may be terminated by the Company, in
      the
      absence of Cause, for any reason and in its sole and absolute discretion,
      provided that in such event (which
      would include the Company's declining to extend the Employment Term in
      accordance with Section 1(a))
      the
      Company shall continue to pay to the Employee the Base Salary (on regular
      payroll dates) for twelve months from the date of termination (the “Termination
      Payments”)
      plus
      any bonuses then-earned or owing on the date of termination and an amount equal
      to the Target Bonus for the year in which the termination occurs pro rated
      based
      on the number of days of service in such year.  On
      the
      date of termination, all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full.
      Such
      options may be exercised for the longer of (i) 12 months from the date of
      termination and (ii) the exercise term of each relevant option grant. Finally,
      during any period in which Termination Payments are required to be paid, the
      Company shall continue the benefits for the Employee and his family provided
      for
      under Section
      2
      at no
      cost to the Employee.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) Termination
      by
      the
      Employee for
      Good Reason.
      The
      Employee's employment with the Company may be terminated by the Employee for
      Good Reason. “Good
      Reason”
shall
      be deemed to exist: (i) if the Employee’s duties or responsibilities are
      materially diminished or the Employee is assigned any duties materially
      inconsistent with the duties or responsibilities contemplated by this Agreement;
      (ii) if the Company shall have continued to fail to comply with any material
      provision of this Agreement after a 30-day period to cure (if such failure
      is
      curable) following written notice by the Employee to the Company of such
      non-compliance; (iii) upon a Change in Control; or (iv) if the Company requires
      that the Employee be based at any location other than Charlotte, NC or Boca
      Raton, FL (or the suburban area of either). In the event of any termination
      under this Section
      4(e),
      the
      Company shall pay the Termination Payments plus any bonuses then-earned or
      owing
      on the date of termination and an amount equal to the Target Bonus for the
      year
      in which the termination occurs pro rated based on the number of days of service
      in such year to the Employee in the same amount and manner as under Section
      4(d).
      On
      the
      date of termination, all
      unvested options shall accelerate and immediately vest and become exercisable
      in
      full.
      Such
      options may be exercised for the longer of (i) 12 months from the date of
      termination and (ii) the exercise term of each relevant option grant. Finally,
      during any period in which Termination Payments are required to be paid, the
      Company shall continue the benefits for the Employee and his family provided
      for
      under Section
      2
      at no
      cost to the Employee.

    

    (f) Voluntary
      Resignation.
      The
      Employee's employment with the Company may be terminated by the Employee without
      Good Reason. In the event of any termination under this Section
      4(f),
      the
      Company shall pay all amounts of Base Salary then due to the Employee under
      Section
      2(a)
      up to
      the payroll period worked but for which payment had not yet been made up to
      the
      date of termination (but expressly excluding any bonuses or other incentive
      compensation). The Company shall have no further obligations to the Employee
      under this Agreement (including no obligation with respect to bonuses or other
      incentive compensation), and any and all stock options granted to the Employee
      shall terminate according to their terms of grant; provided that if such
      termination occurs during the first year of the Employment Term any such vested
      options would be exercisable for the shorter of (i) 90 days from the date of
      termination and (ii) the exercise term of each relevant option grant, and if
      the
      termination occurs thereafter any such vested options would continue to be
      exercisable for the full exercise term of each relevant option
      grant.

    

    5. Non-Competition.
      During
      the Employment Term and for two years following termination thereof (other
      than
      any such termination by the Company without Cause or by the Employee for Good
      Reason), the Employee shall not, directly or indirectly own any interest in,
      manage, control, participate in, consult with, render services for, advise,
      or
      in any manner engage in the Company Business within a 100 mile radius of any
      office operated by the Company or any subsidiary of the Company, whether as
      an
      officer, director, stockholder, consultant, investor, agent or otherwise (unless
      the Board shall have authorized such activity and the Company shall have
      consented thereto in writing). For purposes of this Section 5, “Company
      Business” means (i) providing
      accounts receivable funding (factoring), outsourcing of accounts receivable
      management including collections and the risk of customer default, purchase
      order financing, lawsuit financing, trade finance and government contract
      funding and (ii) back office support including payroll, payroll tax compliance
      and invoice processing services. Passive
      investments in less than 5% of the outstanding securities of any entity subject
      to the reporting requirements of Section 13 or Section 15(d) of the Exchange
      Act, shall not be prohibited by this Section
      5.
      The
      provisions of this Section
      5
      are
      subject to the provisions of Section
      14.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Inventions
      and Confidential Information.
      The
      parties hereto recognize that a major need of the Company is to preserve its
      specialized knowledge, trade secrets and confidential information. The strength
      and good will of the Company is derived from the specialized knowledge, trade
      secrets, and confidential information generated from experience with the
      activities undertaken by the Company. The unauthorized disclosure of this
      information and knowledge to competitors would be beneficial to such competitors
      and detrimental to the Company, as would the disclosure of non-public
      information about the marketing practices, pricing practices, costs, profit
      margins, design specifications, development and business plans, analytical
      techniques and similar items of the Company. The Employee acknowledges that
      specific proprietary information and non-public data obtained by him while
      employed by the Company concerning the business or affairs of the Company are
      the property of the Company. By reason of his being a senior executive of the
      Company, the Employee has or will have access to, and has obtained or will
      obtain, trade secrets and confidential information about the Company's
      operations, which operations extend throughout the United States. Therefore,
      subject to the provisions of Section
      14,
      the
      Employee hereby agrees as follows, recognizing that the Company is relying
      on
      these agreements in entering into this Agreement:

    

    (a) During
      the Employment Term and for three years following termination of the Employee's
      employment with the Company for any reason, the Employee will not use, disclose
      to others, or publish or otherwise make available to any other party (other
      than
      in furtherance of his obligations hereunder) any non-public or confidential
      business information about the business and affairs of the Company, including
      but not limited to confidential information concerning the Company's products,
      methods, engineering designs and standards, analytical techniques, technical
      information, customer information, employee information, inventions and other
      confidential information acquired by him in the course of his past or future
      services for the Company during the Employment Term. The Employee agrees to
      hold
      as the Company's property all books, papers, letters, formulas, memoranda,
      notes, plans, records, reports, computer tapes, printouts, software and other
      documents, and all copies thereof and therefrom, relating to the Company's
      business and affairs conducted by him as President of the Company, whether
      made
      by him or otherwise coming into his possession or control, and on termination
      of
      his employment, or upon demand of the Company, at any time after termination
      of
      his employment, to deliver the same to the Company.

     

    (b) During
      the Employment Term and for 18 months following termination of the Employee's
      employment with the Company for any reason, the Employee will not (i) directly
      or indirectly, including through an entity or agent, induce or otherwise attempt
      to influence any employee of the Company to leave the Company's employ, (ii)
      hire, cause to be hired or induce a third party to hire, any such employee
      (unless the Board shall have authorized such employment and the Company shall
      have consented thereto in writing) or in any way materially interfere with
      the
      relationship between the Company and any employee thereof, or (iii) induce
      or
      attempt to induce any customer, supplier, licensee, licensor or other business
      relation of the Company to cease or otherwise limit doing business with the
      Company or in any way materially interfere to the detriment of the Company
      with
      the relationship between any such customer, supplier, licensee or business
      relation of the Company. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7. Indemnification;
      Director and Officer Liability Insurance.
      The
      Company will indemnify (and advance the costs of defense of) the Employee (and
      his legal representatives) to the fullest extent permitted by the laws of the
      state in which the Company is incorporated, as in effect at the time of the
      subject act or omission, or by the Certificate of Incorporation and Bylaws
      of
      the Company, as in effect at such time or on the date of this Agreement,
      whichever affords greater protection to the Employee, and both
      during and after termination (for any reason) of the Employee's employment,
      the
      Company shall cause the Employee to be covered under a directors and officers'
      liability insurance policy for his acts (or non-acts) as an officer or director
      of the Company or any of its affiliates. Such policy shall be maintained by
      the
      Company, at its expense in an amount of at least $5 million and on terms
      (including the time period of coverage after the Employee's employment
      terminates) at least as favorable to the Employee as policies covering the
      Company's other members of its Board of Directors.

    

    8. Litigation
      Expenses.
      In the
      event of any litigation or other proceeding between the Company and the Employee
      with respect to the subject matter of this Agreement and the enforcement of
      the
      rights hereunder and such litigation or proceeding results in final judgment
      or
      order in favor of the Employee, which judgment or order is substantially
      inconsistent with the positions asserted by the Company in such litigation
      or
      proceeding, the losing party shall reimburse the prevailing party for all of
      his/its reasonable costs and expenses relating to such litigation or other
      proceeding, including, without limitation, his/its reasonable attorneys' fees
      and expenses. 

    

    9. Consolidation;
      Merger; Sale of Assets; Change of Control.
      Nothing
      in this Agreement shall preclude the Company from combining, consolidating
      or
      merging with or into, transferring all or substantially all of its assets to,
      or
      entering into a partnership or joint venture with, another corporation or other
      entity, or effecting any other kind of corporate combination provided that
      the
      corporation resulting from or surviving such combination, consolidation or
      merger, or to which such assets are transferred, or such partnership or joint
      venture expressly assumes in writing this Agreement and all obligations and
      undertakings of the Company hereunder. Upon such a consolidation, merger,
      transfer of assets or formation of such partnership or joint venture, this
      Agreement shall inure to the benefit of, be assumed by, and be binding upon
      such
      resulting or surviving transferee corporation or such partnership or joint
      venture, and the term “Company,” as used in this Agreement, shall mean such
      corporation, partnership or joint venture or other entity, and this Agreement
      shall continue in full force and effect and shall entitle the Employee and
      his
      heirs, beneficiaries and representatives to exactly the same compensation,
      benefits, perquisites, payments and other rights as would have been their
      entitlement had such combination, consolidation, merger, transfer of assets
      or
      formation of such partnership or joint venture not occurred. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. No
      Set-off; No Mitigation Required.
      Except
      as expressly provided otherwise in this Agreement, the obligation of the Company
      to make any payments provided for hereunder and otherwise to perform its
      obligations hereunder will not be affected by any set-off, counterclaim,
      recoupment, defense or other claim, right or action which the Company may have
      against the Employee or others. In no event will the Employee be obligated
      to
      seek other employment or take other action by way of mitigation of the amounts
      payable to the Employee under any of the provisions of this Agreement, and
      such
      amounts will not be reduced (except as otherwise specifically provided herein)
      whether or not the Employee obtains other employment.

    

    11. Section
      409A Compliance.
      This
      Agreement is intended to comply with Internal Revenue Code Section 409A.
      Notwithstanding any provision herein to the contrary, this Agreement shall
      be
      interpreted, operated and administered consistent with this intent. In that
      regard, any payment described herein that is subject to Code Section 409A shall
      not be made earlier than six (6) months after the date of termination to the
      extent required by Code Section 409A(a)(2)(B)(i); provided that any such payment
      that is deferred pursuant to this Section 11 shall be paid in full as soon
      as
      possible consistent with this Section 11.

    

    12. Survival
      of Obligations.
      Sections
      4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15
      and
16
      shall
      survive the termination for any reason of this Agreement (whether such
      termination is by the Company, by the Employee, upon the expiration of this
      Agreement or otherwise).

    

    13. Employee's
      Representations.
      The
      Employee hereby represents and warrants to the Company that (i) the execution,
      delivery and performance of this Agreement by the Employee do not and shall
      not
      conflict with, breach, violate or cause a default under any material contract,
      agreement, instrument, order, judgment or decree to which the Employee is a
      party or by which he is bound, (ii) the Employee is not a party to, or bound
      by,
      any employment agreement, noncompete agreement or confidentiality agreement
      with
      any other person or entity, and (iii) upon the execution and delivery of this
      Agreement by the Company, this Agreement shall be the valid and binding
      obligation of the Employee, enforceable in accordance with its terms. The
      Employee hereby acknowledges and represents that he has consulted with legal
      counsel regarding his rights and obligations under this Agreement and that
      he
      fully understands the terms and conditions contained herein.

    

    14. Company's
      Representations.
      The
      Company hereby represents and warrants to the Employee that (i) the execution,
      delivery and performance of this Agreement by the Company do not and shall
      not
      conflict with, breach, violate or cause a default under any material contract,
      agreement, instrument, order, judgment or decree to which the Company is a
      party
      or by which it is bound, and (ii) upon the execution and delivery of this
      Agreement by the Employee, this Agreement shall be the valid and binding
      obligation of the Company, enforceable in accordance with its
      terms.

    

    15. Enforcement.
      Because
      the Employee's services are unique and because the Employee has access to
      confidential information concerning the Company, the parties hereto agree that
      money damages shall not be an adequate remedy for any breach of this Agreement.
      Therefore, in the event of a breach or threatened breach of this Agreement
      that
      cannot be compensated with monetary damages, the Company may, in addition to
      other rights and remedies existing in its favor, apply to any court of competent
      jurisdiction for specific performance and/or injunctive or other relief in
      order
      to enforce, or prevent any violations of, the provisions hereof (without posting
      a bond or other security).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    16. Severability.
      In case
      any one or more of the provisions or part of a provision contained in this
      Agreement shall for any reason be held to be invalid, illegal or unenforceable
      in any respect in any jurisdiction, such invalidity, illegality or
      unenforceability shall be deemed not to affect any other jurisdiction or any
      other provision or part of a provision of this Agreement, nor shall such
      invalidity, illegality or unenforceability affect the validity, legality or
      enforceability of this Agreement or any provision or provisions hereof in any
      other jurisdiction; and this Agreement shall be reformed and construed in such
      jurisdiction as if such provision or part of a provision held to be invalid
      or
      illegal or unenforceable had never been contained herein and such provision
      or
      part reformed so that it would be valid, legal and enforceable in such
      jurisdiction to the maximum extent possible. In furtherance and not in
      limitation of the foregoing, the Company and the Employee each intend that
      the
      covenants contained in Sections
      5
      and
6
      shall be
      deemed to be a series of separate covenants. If, in any judicial proceeding,
      a
      court shall refuse to enforce any of such separate covenants, then such
      unenforceable covenants shall be deemed eliminated from the provisions hereof
      for the purpose of such proceedings to the extent necessary to permit the
      remaining separate covenants to be enforced in such proceedings. If, in any
      judicial proceeding, a court shall refuse to enforce any one or more of such
      separate covenants because the total time, scope or area thereof is deemed
      to be
      excessive or unreasonable, then it is the intent of the parties hereto that
      such
      covenants, which would otherwise be unenforceable due to such excessive or
      unreasonable period of time, scope or area, be enforced for such lesser period
      of time, scope or area as shall be deemed reasonable and not excessive by such
      court.

    

    17. Entire
      Agreement; Amendment.
      This
      Agreement contains the entire agreement between the Company and the Employee
      with respect to the subject matter hereof. This Agreement may not be amended,
      waived, changed, modified or discharged except by an instrument in writing
      executed by or on behalf of the party against whom enforcement of any amendment,
      waiver, change, modification or discharge is sought. No course of conduct or
      dealing shall be construed to modify, amend or otherwise affect any of the
      provisions hereof.

    

    18. Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed to have been duly given if physically delivered,
      delivered by express mail or other expedited service or upon receipt if mailed,
      postage prepaid, via registered mail, return receipt requested, addressed as
      follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

       

    
      	 (a) To
              the Company:	(b) To
              the Employee:
	
              BTHC
                XI, Inc.

              c/o
                Anchor Funding Services, LLC

              2201
                Crownpoint Executive Drive

              Charlotte,
                NC 28227

            	
              Brad
                Bernstein

              5936
                Woodleigh Oaks Dr.

              Charlotte,
                NC 28226

            

    

    

    and/or
      to
      such other persons and addresses as any party shall have specified in writing
      to
      the other.

    

    19. Assignability.
      This
      Agreement shall not be assignable by either party and shall be binding upon,
      and
      shall inure to the benefit of, the heirs, executors, administrators, legal
      representatives, successors and assigns of the parties. In the event that all
      or
      substantially all of the business of the Company is sold or transferred, then
      this Agreement shall be binding on the transferee of the business of the Company
      whether or not this Agreement is expressly assigned to the
      transferee.

    

    20. Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      Delaware without regard to conflict of laws principles.

    

    21. Waiver
      and Further Agreement.
      Any
      waiver of any breach of any terms or conditions of this Agreement shall not
      operate as a waiver of any other breach of such terms or conditions or any
      other
      term or condition, nor shall any failure to enforce any provision hereof operate
      as a waiver of such provision or of any other provision hereof. Each of the
      parties hereto agrees to execute all such further instruments and documents
      and
      to take all such further action as the other party may reasonably require in
      order to effectuate the terms and purposes of this Agreement.

    

    22. Headings
      of No Effect.
      The
      Section headings contained in this Agreement are for reference purposes only
      and
      shall not in any way affect the meaning or interpretation of this
      Agreement.

    

     

     

     

     

     

    
 

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

     

    
      	 	 	COMPANY:
	 	 	 
	 	 	BTHC
              XI, INC.
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:  
	 	Title 

    

    

    
      	 	 	EMPLOYEE:
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Brad
              Bernstein
	 	Title

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