Document:

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                                                                               EXHIBIT 10.1

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ARTICLE 1         DEFINITION .............................................................1

1.1      DEFINITIONS .....................................................................1

ARTICLE 2         SALE AND TRANSFER OF SHARES; CLOSING ...................................4

2.1      SHARES ..........................................................................4

2.2      PURCHASE PRICE ..................................................................4

2.3      CLOSING .........................................................................4

2.4      CLOSING DELIVERIES ..............................................................4

ARTICLE 3         REPRESENTATIONS AND WARRANTIES OF SELLER ...............................5

3.1      ORGANIZATION AND GOOD STANDING ..................................................5

3.2      ENFORCEABILITY; NO CONFLICT .....................................................5

3.3      CAPITALIZATION AND OWNERSHIP ....................................................5

3.4      FINANCIAL STATEMENTS ............................................................6

3.5      NO UNDISCLOSED LIABILITIES ......................................................6

3.6      CONTRACTS; NO DEFAULTS ..........................................................6

3.7      LEGAL PROCEEDINGS; ORDERS .......................................................6

3.8      SECURITIES LAW MATTERS ..........................................................7

3.9      BROKERS OR FINDERS ..............................................................7

ARTICLE 4         REPRESENTATIONS AND WARRANTIES OF BUYER ................................7

4.1      ORGANIZATION ....................................................................7

4.2      ENFORCEABILITY; NO CONFLICT .....................................................7

4.3      BROKERS OR FINDERS ..............................................................8

ARTICLE 5         COVENANTS OF THE PARTIES BEFORE CLOSING.................................8

5.1      ACCESS AND INVESTIGATION ........................................................8

5.2      OPERATION OF THE BUSINESS OF THE COMPANY ........................................8

5.3      REQUIRED APPROVALS ..............................................................8

5.4      SHAREHOLDER APPROVAL ............................................................9

ARTICLE 6         CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE.....................9

6.1      ACCURACY OF REPRESENTATIONS .....................................................9

6.2      SELLERS' AND COMPANY'S PERFORMANCE ..............................................9

6.3      STOCKHOLDER APPROVAL ............................................................9

ARTICLE 7         CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE ...................9

7.1      ACCURACY OF REPRESENTATIONS .....................................................9

                                             i

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7.2      BUYER'S PERFORMANCE ............................................................10

ARTICLE 8         TERMINATION ...........................................................10

8.1      TERMINATION EVENTS .............................................................10

8.2      EFFECT OF TERMINATION ..........................................................10

ARTICLE 9         INDEMNIFICATION; REMEDIES .............................................11

9.1      SURVIVAL .......................................................................11

ARTICLE 10        GENERAL PROVISIONS ....................................................11

10.1     EXPENSES........................................................................11

10.2     FURTHER ACTIONS ................................................................11

10.3     ENTIRE AGREEMENT AND MODIFICATION ..............................................11

10.4     SEVERABILITY ...................................................................11

10.5     GOVERNING LAW ..................................................................12

10.6     COUNTERPARTS ...................................................................12

                                             ii

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STOCK PURCHASE AGREEMENT .................................................................5

         PRELIMINARY STATEMENT ...........................................................5

         AGREEMENT .......................................................................5

ARTICLE 1 DEFINITIONS ....................................................................5

ARTICLE 2 SALE AND TRANSFER OF SHARES; CLOSING ...........................................8

         2.1      SHARES .................................................................8

         2.2      PURCHASE PRICE .........................................................8

         2.3      CLOSING ................................................................8

         2.4      CLOSING DELIVERIES .....................................................8

                  (a) Seller will deliver to Buyer: ......................................8

                  (b) Buyer will deliver: ................................................8

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER .......................................9

         3.1      ORGANIZATION AND GOOD STANDING .........................................9

                  The Company is a corporation duly organized, validly
                           existing and in good standing under the laws of its
                           jurisdiction of organization, with full corporate
                           power and authority to conduct its business as
                           presently conducted, to own or use the properties and
                           assets that it purports to own or use, and to perform
                           all its obligations under all its Company Contracts. ..........9

         3.2      ENFORCEABILITY; NO CONFLICT ............................................9

                  (a)      Seller and the Company have the absolute and
                           unrestricted right, power, authority and capacity to
                           execute and deliver this Agreement and to perform
                           their obligations under this Agreement. Assuming due
                           authorization, execution and delivery of this
                           Agreement by Buyer, this Agreement constitutes the
                           legal, valid and binding obligation of Seller and the
                           Company, enforceable against Seller and the Company
                           in accordance with its terms. .................................9

                  (b)      Seller and the Company are not and will not be
                           required to give any notice to any Person or obtain
                           any Consent or Governmental Authorization in
                           connection with the execution and delivery of this
                           Agreement or the consummation or performance of any
                           of the Contemplated Transactions.  ............................9

                                             1

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                  (c)      Neither the execution and delivery of this Agreement
                           nor the consummation or performance of any of the
                           Contemplated Transactions will directly or indirectly
                           (with or without notice or lapse of time) (i)
                           Contravene any provision of the Governing Documents
                           of the Company, (ii) Contravene any Company Contract,
                           Governmental Authorization, Law or Order to which
                           Company or Seller, or any of the assets owned or used
                           by the Company, may be subject, or (iii) result in
                           the imposition or creation of any Encumbrance upon or
                           with respect to any of the assets owned or used by
                           the Company.  .................................................9

         3.3      CAPITALIZATION AND OWNERSHIP ...........................................9

         3.4      FINANCIAL STATEMENTS ..................................................10

         3.5      NO UNDISCLOSED LIABILITIES ............................................10

         3.6      CONTRACTS; NO DEFAULTS ................................................10

                  (a)      Section 3.6 of Seller's Disclosure Schedule contains
                           an accurate and complete list of:  ...........................10

          3.7      LEGAL PROCEEDINGS; ORDERS ............................................10

                  (a)      There exists no pending Proceedings (i) by or against
                           the Company or that otherwise relate to or may affect
                           the business of, or any of the assets owned or used
                           by, the Company or (ii) that challenge, or that may
                           have the effect of preventing, delaying, making
                           illegal or otherwise interfering with, any of the
                           Contemplated Transactions. To Seller's Knowledge, no
                           other such Proceeding has been threatened, and no
                           event has occurred or circumstance exists that may
                           give rise to or serve as a basis for the commencement
                           of any such Proceeding.  .....................................10

                  (b)      There exists no pending Order to which the Company,
                           or any of the assets owned or used by the Company, is
                           or has been subject.  ........................................10

         3.8      SECURITIES LAW MATTERS ................................................11

         3.9      BROKERS OR FINDERS ....................................................11

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER .......................................11

         4.1      ORGANIZATION ..........................................................11

         4.2      ENFORCEABILITY; NO CONFLICT ...........................................11

                                             2

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                  (a)      Buyer has the absolute and unrestricted right, power
                           and authority to execute and deliver this Agreement
                           and to perform its obligations under this Agreement,
                           which actions have been duly authorized and approved
                           by all necessary corporate action of Buyer. Assuming
                           the execution and delivery of this Agreement by
                           Seller, this Agreement constitutes the legal, valid
                           and binding obligation of Buyer, enforceable against
                           Buyer in accordance with its terms.  .........................l1

                  (b)      Buyer is not and will not be required to obtain any
                           Consent or Governmental Authorization in connection
                           with the execution and delivery of this Agreement or
                           the consummation or performance of any of the
                           Contemplated Transactions. .................................. 11

                  (c)      Neither the execution and delivery of this Agreement
                           by Buyer nor the consummation or performance of any
                           of the Contemplated Transactions by Buyer will give
                           arty Person the right to prevent, delay or otherwise
                           interfere with any of the Contemplated Transactions
                           pursuant to (i) any provision of Buyer's Governing
                           Documents, (ii) any resolution adopted by the board
                           of directors or the stockholders of Buyer, (iii) any
                           Law, Order or Governmental Authorization to which
                           Buyer may be subject or (iv) any Contract to which
                           Buyer is a party or by which Buyer may be bound.  ............11

         4.3      BROKERS OR FINDERS ....................................................12

ARTICLE 5 COVENANTS OF THE PARTIES BEFORE CLOSING .......................................12

         5.1      ACCESS AND INVESTIGATION ..............................................12

         5.2      OPERATION OF THE BUSINESS OF THE COMPANY ..............................12

         5.3      REQUIRPD APPROVALS ....................................................12

         5.4 SHAREHOLDER APPROVAL .......................................................13

ARTICLE 6 CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE ...........................13

         6.1      ACCURACY OF REPRESENTATIONS ...........................................13

                  All of Seller's representations and warranties in this
                           Agreement (considered both collectively and
                           individually) must have been accurate in all material
                           respects as of the date of this Agreement, and must
                           be accurate in all material respects as of the
                           Closing Date as if then made.  ..............................13

         6.2      SELLERS' AND COMPANY'S PERFORMANCE ...................................13

                                             3

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                  All of the covenants and obligations that Seller and
                           company is required to perform or to comply with
                           under this Agreement on or before the Closing Date
                           (considered both collectively and individually) must
                           have been duly performed and complied with in all
                           material respects.  .........................................13

         6.3      STOCKHOLDER APPROVAL .................................................13

ARTICLE 7 CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE .........................13

         7.1      ACCURACY OF REPRESENTATIONS ..........................................14

         7.2      BUYER'S PERFORMANCE ..................................................14

ARTICLE 8 TERMINATION ..................................................................14

         8.1      TERMINATION EVENTS ...................................................14

                  (a)      by mutual consent of Buyer and Seller; ......................14

                  (b)      by Buyer if the satisfaction of any condition in
                           Article 6 is or becomes impossible (other than
                           through the failure of Buyer to comply with its
                           obligations under this Agreement) and Buyer has not
                           waived such condition; ......................................14

                  (c)      by Seller if the satisfaction of any condition in
                           Article 7 is or becomes impossible (other than
                           through the failure of Seller to comply with its
                           obligations under this Agreement) and Seller has not
                           waived such condition; and ..................................14

                  (d)      by either Buyer or Seller if the Closing has not
                           occurred (other than through the failure of any party
                           seeking to terminate this Agreement to comply fully
                           with its obligations under this Agreement) on or
                           before August 31, 2005, or such later date as Buyer
                           and Seller may agree upon.  .................................14

         8.2      EFFECT OF TERMINATION ................................................14

ARTICLE 9 INDEMNIFICATION; REMEDIES   ..................................................15

         9.1      SURVIVAL .............................................................15

ARTICLE 10 GENERAL PROVISIONS ..........................................................15

         10.1     EXPENSES .............................................................15

         10.2     FURTHER ACTIONS ......................................................15

         10.3     ENTIRE AGREEMENT AND MODIFICATION ....................................15

         10.4     SEVERABILITY .........................................................15

         10.5     GOVERNING LAW ........................................................16

         10.6     COUNTERPARTS .........................................................16

                                             4
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                            STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement ("AGREEMENT" is made as of July 20, 2005
by and between X-Change Corporation, a Nevada corporation ("Buyer"), and Michael
L. Sheriff" ("SELLER").

                              PRELIMINARY STATEMENT

         Seller desires to sell, and Buyer desires to purchase, all of the
outstanding shares (the "SHARES") of AirGate Technologies, Inc. a corporation
organized under the; laws of Texas (the "COMPANY"), the terms and subject to the
conditions set forth in this Agreement.

                                    AGREEMENT

         The parties, intending to be legally bound, agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

         For the purposes of this Agreement, the following terms and variations
on them have the meanings specified in this ARTICLE 1:

         "BUYER" is defined in the first paragraph of this Agreement.

         "BUYER SHARES" means 10,000,000 newly issued shares of Buyer common
stock, par value $.001 per share.

         "CLOSING" means the consummation and completion of the purchase and,
sale of the Shares.

         "CLOSING DATE" means the date on which the Closing actually takes
place.

         "COMPANY" is defined in the Preliminary Statement.

         "COMPANY CONTRACT" means any Contract (a) under which the Company has
or may acquire rights, (b) under which the Company is or may become subject to
Liability or (c) by which the Company or any of its assets is or may become
bound.

         "CONSENT" means any approval, consent, ratification, waiver or; other
authorization.

         "CONTEMPLATED TRANSACTIONS" means all of the transactions to be
carried. out in accordance with this Agreement, including the purchase and sale
of the Shares, the performance by the parties of their other obligations under
this Agreement.

                                       5

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         "CONTRACT" means any contract, agreement, commitment, understanding,
lease, license, franchise, warranty, guaranty, mortgage, note, bond or other
instrument or consensual obligation (whether written or oral and whether express
or implied) that is legally binding.

         "CONTRAVENE" -- an act or omission would "Contravene" something if, as
the context requires:

         (a) the act or omission would conflict with it, violate it, result in a
bleach or violation of or failure to comply with it, or constitute a default
under it;

         (b) the act or omission would give any Governmental Body or other.
Person the right to challenge, revoke, withdraw, suspend, cancel, terminate or
modify it, to exercise any remedy or obtain any relief under it, or to declare a
default or accelerate the maturity of any obligation under it; or

         (c) the act or omission would result in the creation of an Encumbrance
on the stock or assets of the Company.

         "ENCUMBRANCE" means any charge, claim, mortgage, servitude, easement,
right of way, community or other marital property interest, covenant, equitable
interest, license, lease or other possessory interest, lien, option, pledge,
security interest, preference, priority, right of first refusal or similar
restriction.

         "FINANCIAL STATEMENTS" is defined in SECTION 3.4.

         "GAAP" means generally accepted accounting principles for financial
reporting in the United States.

         "GOVERNING DOCUMENT" means any charter, articles, bylaws, certificate,
statement, statutes or similar document adopted, filed or registered in,
connection with the creation, formation or organization of an entity, and any
Contract among all equityholders, partners or members of an entity.

         "GOVERNMENTAL AUTHORIZATION" means any Consent, license, permit or
registration issued, granted, given or otherwise made available by or under the
authority of any Governmental Body or pursuant to any Law.

         "GOVERNMENTAL BODY" means any (a) nation, region, state, county, city;
town, village, district or other jurisdiction, (b) federal, state, local,
municipal, foreign or other government, (c) governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department
or other entity and any court or other tribunal), (d) multinational
organization, (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature, or (f) official of any of the foregoing.

                                       6

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         "KNOWLEDGE" means, with respect to Seller, the actual knowledge after
reasonable investigation of Seller or of the Company's directors, officers or
senior managerial employees.

         "LAW" means any constitution, law, statute, treaty, rule, regulation,
ordinance, code, binding case law, principle of common law or notice of any
Governmental Body.

         "LIABILITIES" includes liabilities or obligations of any nature,
whether known or unknown, whether absolute, accrued, contingent, choate,
inchoate or otherwise, whether duo or to become due, and whether or not required
to be reflected on a financial statement prepared in accordance with GAAP.

         "ORDER" means any order, injunction, judgment, decree, ruling,
assessment or arbitration award of any Governmental Body or arbitrator and any
Contract with any Governmental Body pertaining to compliance with Law.

         "ORDINARY COURSE OF BUSINESS" refers to actions taken in the Company's
normal operation, consistent with its past practice and having no material
adverse effect on the financial or other condition, results of operations,
assets, Liabilities, equity, business or prospects of the Company.

         "PERSON" refers to an individual or an entity, including a corporation,
share company, limited liability company, partnership, trust, association,
Governmental Body or any other body with legal personality separate from its
equityholders or members.

         "PROCEEDING" means any action, arbitration, audit, examination,
investigation, hearing, litigation or suit (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, and
whether public or private) commenced, brought, conducted or heard by or before,
or otherwise involving, any Governmental Body or arbitrator.

         "PURCHASE PRICE" is defined in SECTION 2.2.

         "SECURITIES ACT" means the Securities Act of 1933.

         "SECURITIES EXCHANGE ACT" means the Securities Exchange Act of 1934.

         "SELLER RELEASE" is defined in SECTION 2.4(a)(ii).

         "SELLER" is defined in the first paragraph of this Agreement.

         "SELLER'S DISCLOSURE SCHEDULE" means the disclosure schedule delivered
pursuant to ARTICLE 3 by Seller to Buyer concurrently with the execution of the
Agreement.

         "SHARES" is defined in the Preliminary Statement.

                                       7

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                                    ARTICLE 2

                      SALE AND TRANSFER OF SHARES; CLOSING

2.1      SHARES

         Upon the terms and subject to the conditions set forth in this
Agreement, at the Closing, Seller will sell and transfer the Shares to Buyer,
and Buyer will purchase and acquire the Shares from Seller.

2.2      PURCHASE PRICE

         The purchase price for the Shares (the "PURCHASE PRICE") will be paid
by delivery of the Buyer Shared to Seller at the Closing.

2.3      CLOSING

         The Closing will take place at the offices of Buyer, at 10:00 a.m.
(local time) on the date that is two business days following the satisfaction or
waiver of each of the conditions set forth in ARTICLE 5 and 6, unless Buyer and
Seller agree otherwise.

2.4      CLOSING DELIVERIES

         At the Closing:

         (a) Seller will deliver to Buyer:

                  (i) certificates representing the Shares, duly endorsed in
blank (or accompanied by duly executed stock powers in blank);

                  (ii) a release in the form of Exhibit 2.4(a)(ii) executed by
Seller (the "SELLER RELEASE");

                  (iii) a certificate executed by Seller as to the accuracy of
Seller's representations and warranties as of the date of this Agreement and as
of the Closing in accordance with SECTION 6.1 and as to their compliance with
and performance of its covenants and obligations to be performed or complied on
or before the Closing Date in accordance with SECTION 6.2.

         (b) Buyer will deliver:

                  (i) Stock certificates representing the Buyer Shares; and

                  (ii) a certificate executed by the President of Buyer as to
the accuracy of Buyer's representations and warranties as of the date of this
Agreement and as of the Closing in accordance with SECTION 7.1 and as to its
compliance with and performance of its covenants and obligations to be performed
or complied with on or before the Closing Date in accordance with SECTION 7.2.

                                       8

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                                    ARTICLE 3

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Buyer that:

3.1      ORGANIZATION AND GOOD STANDING

         The Company is a corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization, with full
corporate power and authority to conduct its business as presently conducted, to
own or use the properties and assets that it purports to own or use, and to
perform all its obligations under all its Company Contracts.

3.2      ENFORCEABILITY, NO CONFLICT

         (a) Seller and the Company have the absolute and unrestricted right
power, authority and capacity to execute and deliver this Agreement and to
perform their obligations under this Agreement. Assuming due authorization,
execution and delivery of this Agreement by Buyer, this Agreement constitutes
the legal, valid and binding obligation of Seller and the Company, enforceable
against Seller and the Company in accordance with its terms.

         (b) Seller and the Company are not and will not be required to give any
notice to any person or obtain any Consent or Governmental Authorization in
connection with the execution and delivery of this Agreement or the consummation
or performance of any of the Contemplated Transactions.

         (c) Neither the execution and delivery of this Agreement nor the
consummation or performance of any of the Contemplated Transactions will
directly or indirectly (with or without notice or lapse of time) (i) Contravene
any provision of the Governing Documents of the Company, (ii) Contravene any
Company Contract, Governmental Authorization, Law or Order to which Company or
Seller, or any of the assets owned or used by the Company, may be subject, or
(iii) result in the imposition or creation of any Encumbrance upon or with
respect to any of the assets owned or used by the Company.

3.3      CAPITALIZATION AND OWNERSHIP

         The authorized equity securities of the Company consist of 25,000,000
shares of common stock, par value $.0001 per share, of which 11,500,100 shares
are issued and outstanding. The Shares represent all of the issued and
outstanding shares in the Company. Seller is and will be on the Closing Date the
record holders and beneficial owners of the Shares, free and clear of all
Encumbrances. All of the outstanding equity securities of the Company have been
duly authorized and validly issued and are fully paid and nonassessable. There
are no Contracts relating to the issuance, sale or transfer of any equity
securities or other securities of the Company.

                                       9

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3.4      FINANCIAL STATEMENTS

         Seller has furnished to Buyer financial statements as of December 31,
2004, and June 30, 2005 (collectively, the "FINANCIAL STATEMENTS") which is in
the form of a listing of assets and liabilities. The Financial Statements were
prepared in accordance with the books and records of the Company. The Financial
Statements and notes thereto are complete and fairly present the assets,
liabilities and financial condition of the Company as of the date thereof.

3.5      NO UNDISCLOSED LIABILITIES

         The Company has no Liabilities except for Liabilities reflected or
reserved against in the Financial Statements, and current Liabilities incurred
in the Ordinary Course of Business since the respective dates thereof.

3.6      CONTRACTS, NO DEFAULTS

         (a) SECTION 3.6 of Seller's Disclosure Schedule contains an accurate
and complete list of:

                  (i) each Company Contract that involves performance of
services or delivery of goods or materials by the Company of an amount or value
in excess of $10,000;

                  (ii) each Company Contract that involves performance of
services for or delivery of goods or materials to the Company of an amount or
value in excess of $10,000; and

                  (iii) each Company Contract that was not entered into in the
Ordinary Course of Business and that involves the expenditure or receipt by the
Company of an amount or value in excess of $10,000.

3.7      LEGAL PROCEEDINGS; ORDERS

         (a) There exists no pending Proceedings (i) by or against the Company
or that otherwise relate to or may affect the business of, or any of the assets
owned or used by, the Company or (ii) that challenge, or that may have the
effect of preventing, delaying, making illegal or otherwise interfering with,
any of the Contemplated Transactions. To Seller's Knowledge, no other such
Proceeding has been threatened, and no event has occurred or circumstance exists
that may give rise to or serve as a basis for the commencement of any such
Proceeding.

         (b) There exists no pending Order to which the Company, or any of the
assets owned or used by the Company, is or has been subject.

                                       10

<PAGE>

3.8      SECURITIES LAW MATTERS

         Seller is acquiring the Buyer Shares for his own account and not with a
view to distribution within the meaning of Section 2(11) of the Securities Act.
Seller confirms that Buyer has made available to Seller the opportunity to ask
questions of the officers and management employees of Buyer and to acquire such
additional information about the business and financial condition of Buyer as
Seller has requested, and all such information has been received. Seller
understands that Buyer Shares shall be considered "restricted securities" as
that term is defined in Rule 144 promulgated under the Securities Act and Buyer
is under no obligation to cause the registration of the Buyer Shares.

3.9      BROKERS OR FINDERS

         Seller has not incurred any Liability for brokerage or finders' fees or
agents' commissions or other similar payment in connection with the Contemplated
Transactions.

                                    ARTICLE 4

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller that:

4.1      ORGANIZATION

         Buyer is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization.

4.2      ENFORCEABILITY; NO CONFLICT

         (a) Buyer has the absolute and unrestricted right, power and authority
to execute and deliver this Agreement and to perform its obligations under this
Agreement, which actions have been duly authorized and approved by all necessary
corporate action of Buyer. Assuming the execution and delivery of this Agreement
by Seller, this Agreement constitutes the legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms.

         (b) Buyer is not and will not be required to obtain any Consent or
Governmental Authorization in connection with the execution and delivery of this
Agreement or the consummation or performance of any of the Contemplated
Transactions.

         (c) Neither the execution and delivery of this Agreement by Buyer for
the consummation or performance of any of the Contemplated Transactions by Buyer
will give any Person the right to prevent, delay or otherwise interfere with any
of the Contemplated Transactions pursuant to (i) any provision of Buyer's
Governing Documents, (ii) any resolution adopted by the board of directors or
the stockholders of Buyer, (iii) any Law, Order or Governmental Authorization to
which Buyer may be subject or (iv) any Contract to which Buyer is a party or by
which Buyer may be bound.

                                       11
<PAGE>

4.3      BROKER OR FINDERS

         Buyer has not incurred any Liability for brokerage or finders' fees or
agents' commissions or other similar payment in connection with the Contemplated
Transactions.

                                   ARTICLE 5

                     COVENANTS OF THE PARTIES BEFORE CLOSING

5.1      ACCESS AND INVESTIGATION

         Between the date of this Agreement and the Closing Date and upon
reasonable advance notice from Buyer, Seller will, and will cause the Company
to, (a) afford Buyer full and free access to Company's personnel, properties,
Contracts, books and records, and other documents and data, (b) furnish such
Persons with copies of all such Contracts, books and records, and other
documents and data as Buyer may reasonably request, and (c) furnish such Persons
with such additional financial, operating and other data and information as
Buyer may reasonably request.

5.2      OPERATION OF THE BUSINESS OF THE COMPANY

         Between the date of this Agreement and the Closing Date, Seller will,
and will cause the Company to, (a) conduct its business only in the Ordinary
Course of Business, (b) use their Best Efforts to preserve intact the current
business organization of the Company, keep available the services of the current
officers, employees and agents of the Company, and maintain relations and
goodwill with suppliers, customers, landlords, creditors, employees, agents and
others having business relationships with the Company, (c) confer with Buyer
concerning operational matters of a material nature and (d) otherwise report
periodically to Buyer concerning the status of the business, operations and
finances of the Company.

5.3      REQUIRED APPROVALS

         As promptly as practicable after the date of this Agreement, Buyer and
Seller will, and Seller will cause the Company to, make all filings that they
are required by Law to make to consummate the Contemplated Transactions. Between
the date of this Agreement and the Closing Date, Buyer and Seller will, and
Seller will cause the Company to, (a) cooperate with the other Party with
respect to all filings that such Party elects to make or that such Party is
required by Law to make in connection with the Contemplated Transactions, and
(b) cooperate with Buyer in obtaining any Governmental Authorizations.

                                       12

<PAGE>

5.4      SHAREHOLDER APPROVAL

         The Buyer shall take all actions in accordance with applicable law, its
Governing Documents and the Securities Exchange Act to promptly and duly call,
give notice of, convene and hold as promptly as practicable a meeting of the
Buyer's stockholders for the purpose of considering and voting upon the
Contemplated Transactions. This Buyer shall take all action that is both
reasonable and lawful to solicit from its stockholders proxies in favor of the
Contemplated Transactions and shall take all other action necessary or advisable
to seek to secure the vote or consent of the stockholders of the Company
required by the rules of the Securities Exchange Act or the Nevada General
Corporation Law to obtain such approvals.

                                    ARTICLE 6

               CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE

         Buyer's obligation to purchase the Shares and to take the other actions
required to be taken by Buyer at the Closing is subject to the satisfaction, on
or before the Closing Date, of each of the following conditions (any of which
may be waived by Buyer, in whole or in part):

6.1      ACCURACY OF REPRESENTATIONS

         All of Seller's representations and warranties in this Agreement
(considered both collectively and individually) must have been accurate in all
material respects of the date of this Agreement, and must be accurate in all
material respects as of the closing Date as if then made.

6.2      SELLERS' AND COMPANY'S PERFORMANCE

         All of the covenants and obligations that Seller and Company is
required to perform or to comply with under this Agreement on or before the
Closing Date (considered both collectively and individually) must have been duly
performed and complied with in all material respects.

6.3      STOCKHOLDER APPROVAL

         The Contemplated Transactions shall have been approved by the Buyer's
stockholders.

                                    ARTICLE 7

              CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE

         Seller's obligation to sell the Shares and to take the other actions
required to be taken by Seller at the Closing is subject to the satisfaction, on
or before the Closing Date, of each of the following conditions (any of which
may be waived by Seller, in whole or in part):

                                       13

<PAGE>

7.1      ACCURACY OF REPRESENTATIONS

         All of Buyer's representations and warranties in this Agreement
(considered both collectively and individually) must have been accurate in all
material respects as of the date of this Agreement and must be accurate in all
material respects as of the Closing Date as if then made.

7.2      BUYER'S PERFORMANCE

         All of the covenants and obligations that Buyer is required to perform
or to comply with under this Agreement on or before the Closing Date (considered
both collectively and individually) must have been performed and complied with
in all material respects.

                                    ARTICLE 8

                                   TERMINATION

8.1      TERMINATION EVENTS

         Subject to SECTION 8.2, this Agreement may, by notice given before or
at the Closing, be terminated:

         (a) by mutual consent of Buyer and Seller;

         (b) by Buyer if the satisfaction of any condition in ARTICLE 6 is or
becomes impossible (other than through the failure of Buyer to comply with its
obligation under this Agreement) and Buyer has not waived such condition;

         (c) by Seller if the satisfaction of any condition in ARTICLE 7 is or
becomes impossible (other than through the failure of Seller to comply with its
obligations under this Agreement) and Seller has not waived such condition; and

         (d) by either Buyer or Seller if the Closing has not occurred (other
than through the failure of any party seeking to terminate this Agreement to
comply fully with its obligations under this Agreement) on or before August 31,
2005, or such later date as Buyer and Seller may agree upon.

8.2      EFFECT OF TERMINATION

         Each party's right of termination under SECTION 8.1 is in addition to
any other rights it may have under this Agreement or otherwise, and the exercise
of such right of termination will not be an election of remedies. If this
Agreement is terminated pursuant to SECTION 8.1, all obligations of the parties
under this Agreement will terminate; PROVIDED, HOWEVER, that if this Agreement
is terminated by a party because of the breach of the Agreement by another party
or because one or more of the conditions to the terminating party's obligations
under this Agreement is not satisfied as a result of any other party's failure
to comply with its obligations under this Agreement, the terminating party's
right to pursue all legal remedies will survive such termination unimpaired.

                                       14

<PAGE>

                                    ARTICLE 9

                            INDEMNIFICATION; REMEDIES

9.1      SURVIVAL

         All representations, warranties, covenants and obligations in this
Agreement, and any other certificate or document delivered pursuant to this
Agreement will survive the Closing and the consummation of the Contemplated
Transactions.

                                   ARTICLE 10

                               GENERAL PROVISIONS

10.1     EXPENSES

         Except as otherwise expressly provided in this Agreement, each party to
this Agreement will bear its respective expenses incurred in connection with the
preparation, execution and performance of this Agreement and the Contemplated
Transactions, including all fees and expenses of its Representatives.

10.2     FURTHER ACTIONS

         Upon, the request of any party to this Agreement, the other parties
will (a) furnish to the requesting party any additional information, (b) execute
and deliver, at their own expense, any other documents and (c) take any other
actions as the requesting party may reasonably require to more effectively carry
out the intent of this Agreement and the Contemplated Transactions.

10.3     ENTIRE AGREEMENT AND MODIFICATION

         This Agreement supersedes all prior agreements among the parties with
respect to its subject matter a complete and exclusive statement of the terms of
the agreement between the parties with respect to its subject matter. This
Agreement may not be amended, supplemented or otherwise modified except in a
written document executed by the party against whose interest the modification
will operate.

10.4     SEVERABILITY

         If a court of competent jurisdiction holds any provision of this
Agreement invalid or unenforceable, the other provisions of this Agreement will
remain in full force and effect. Any provision of this Agreement held invalid or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid or unenforceable.

                                       15

<PAGE>

10.5     GOVERNING LAW

         This Agreement will be governed by and construed under the laws of
Texas without regard to conflicts of laws principles that would require the
application of any other law.

10.6     COUNTERPARTS

         This Agreement may be executed in two or more counterparts.

         The parties have executed and delivered this Agreement as of the date
indicated in the first sentence of this Agreement.

                                                      X-CHANGE CORPORATION

                                                      By:  /s/ Charles Stidham
                                                          ----------------------

                                                      /s/ Michael L. Sheriff
                                                      --------------------------
                                                      MICHAEL L. SHERIFF, in his
                                                      individual capacity

                                       16EXHIBIT  10.1

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

THIS AGREEMENT is entered into as of this 22nd day of July 2005, by and between Gevity HR, Inc., a Florida corporation (the "Company"), and Clifford M. Sladnick ("Executive").

W I T N E S S E T H

 

WHEREAS, the Company considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of the Company and its stockholders; and

 

WHEREAS, the Company recognizes that, as is the case with many publicly held corporations, the possibility of a change in control may arise and that such possibility may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders; and

 

WHEREAS, the Board (as defined in Section 1) has determined that it is in the best interests of the Company and its stockholders to secure Executive's continued services and to ensure Executive's continued dedication to his duties in the event of any threat or occurrence of a Change in Control (as defined in Section 1) of the Company; and

 

WHEREAS, the Board has authorized the Company to enter into this Agreement.

 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained, the Company and Executive hereby agree as follows:

 

1.  Definitions.  As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

(a)  "Board" means the Board of Directors of the Company.

 

(b)  "Bonus Amount" means the greater of (i) the average annual incentive bonus earned by Executive from the Company (or its affiliates) during the last three (3) completed fiscal years of the Company immediately preceding Executive's Date of Termination (annualized in the event 

 

 

 

 

Executive was not employed by the Company (or its affiliates) for the whole of any such fiscal year), and (ii) the Executive's target annual incentive bonus for the year in which the Date of Termination occurs.

 

(c)  "Cause" means (i) the willful and continued failure of Executive to perform substantially his duties with the Company (other than any such failure resulting from Executive's incapacity due to physical or mental illness or any such failure subsequent to Executive being delivered a Notice of Termination without Cause by the Company or delivering a Notice of Termination for Good Reason to the Company) after a written demand for substantial performance is delivered to Executive by the Board which specifically identifies the manner in which the Board believes that Executive has not substantially performed Executive's duties, or (ii) the willful engaging by Executive in illegal conduct or gross misconduct which is demonstrably and materially injurious to the Company or its affiliates.  For purpose of this paragraph (c), no act or failure to act by Executive shall be considered
"willful", unless done or omitted to be done by Executive in bad faith and without reasonable belief that Executive's action or omission was in the best interests of the Company or its affiliates.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board, based upon the advice of counsel for the Company or upon the instructions of the Company's chief executive officer or another senior officer of the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.  Cause shall not exist unless and until the Company has delivered to Executive a copy of a resolution duly adopted by three-quarters (3/4) of the entire Board (excluding Executive if Executive is a Board member) at a meeting of the Board called and held for such purpose (after reasonable notice to Executive and an opportunity for Executive, together with counsel, to be heard before the Board),
finding that in the good faith opinion of the Board an event set forth in clauses (i) or (ii) has occurred and specifying the particulars thereof in detail.

 

(d)  "Change in Control" means the occurrence of any one of the following events:

 

 

 

 

 

(i) individuals who, on July 11,2005 constitute the Board (the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to July 11, 2005 whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual
or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director;

 

(ii) any "person" (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act") and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company's then outstanding securities eligible to vote for the election of the Board (the "Company Voting Securities"); provided, however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions:  (A) by the Company or any Subsidiary, (B) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (iii)), or (E) unless otherwise approved by the Board, pursuant to any acquisition by Executive or any group of persons including Executive (or any entity controlled by Executive or any group of persons including Executive);

 

(iii) the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company's stockholders, whether for such transaction or 

 

 

 

 

the issuance of securities in the transaction (a "Business Combination"), unless immediately following such Business Combination:  (A) more than 50% of the total voting power of (x) the corporation resulting from such Business Combination (the "Surviving Corporation"), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the "Parent Corporation"), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities
among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 25% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a "Non-Qualifying
Transaction"); or

 

(iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the Company's assets.

 

Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 25% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; 

 

 

 

 

provided that, if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur.

 

(e)  "Date of Termination" means (1) the effective date on which Executive's employment by the Company terminates as specified in a prior written notice by the Company or Executive, as the case may be, to the other, delivered pursuant to Section 10 or (2) if Executive's employment by the Company terminates by reason of death, the date of death of Executive.

 

(f)  "Disability" means termination of Executive's employment by the Company due to Executive's absence from Executive's duties with the Company on a full-time basis for at least one hundred eighty (180) consecutive days as a result of Executive's incapacity due to physical or mental illness.

 

(g)  "Good Reason" means, without Executive's express written consent, the occurrence of any of the following events after a Change in Control:

 

(i) (A) any change in the duties or responsibilities (including reporting responsibilities) of Executive that is inconsistent in any material and adverse respect with Executive's position(s), duties, responsibilities or status with the Company immediately prior to such Change in Control (including any material and adverse diminution of such duties or responsibilities) or (B) a material and adverse change in Executive's titles or offices (including, if applicable, membership on the Board) with the Company as in effect immediately prior to such Change in Control;

 

(ii) a reduction by the Company in Executive's rate of annual base salary or annual target bonus opportunity (including any material and adverse change in the formula for such annual bonus target) as in effect immediately prior to such Change in Control or as the same may be increased from time to time thereafter;

 

 

 

 

 

(iii) any requirement of the Company that Executive (A) be based anywhere more than fifty (50) miles from the office where Executive is located at the time of the Change in Control or (B) travel on Company business to an extent substantially greater than the travel obligations of Executive immediately prior to such Change in Control;

 

(iv) the failure of the Company to (A) continue in effect any employee benefit plan, compensation plan, welfare benefit plan or material fringe benefit plan in which Executive is participating immediately prior to such Change in Control or the taking of any action by the Company which would adversely affect Executive's participation in or reduce Executive's benefits under any such plan, unless Executive is permitted to participate in other plans providing Executive with substantially equivalent benefits in the aggregate (at substantially equivalent cost with respect to welfare benefit plans), or (B) provide Executive with paid vacation in accordance with the most favorable vacation policies of the Company (and its affiliated companies) as in effect for Executive immediately prior to such Change in Control, including the crediting of all service for which
Executive had been credited under such vacation policies prior to the Change in Control;

 

(v)  any purported termination of Executive's employment which is not effectuated pursuant to Section 10(b) (and which will not constitute a termination hereunder); or

 

(vi) the failure of the Company to obtain the assumption agreement from any successor as contemplated in Section 9(b).

 

An isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within ten (10) days after receipt of notice thereof given by Executive shall not constitute Good Reason.  Executive's right to terminate employment for Good Reason shall not be affected by Executive's incapacities due to mental or physical illness and Executive's continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason; provided, however, that Executive must provide notice of termination of employment within ninety (90) days following Executive's knowledge of an event constituting Good Reason 

 

 

 

 

or such event shall not constitute Good Reason under this Agreement.

 

(h)  "Qualifying Termination" means a termination of Executive's employment (i) by the Company other than for Cause or (ii) by Executive for Good Reason.  Termination of Executive's employment on account of death, Disability or Retirement shall not be treated as a Qualifying Termination.

 

(i)  "Retirement" means Executive's mandatory retirement (not including any mandatory early retirement) in accordance with the Company's retirement policy generally applicable to its salaried employees, as in effect immediately prior to the Change in Control, or in accordance with any retirement arrangement established with respect to Executive with Executive's written consent.

 

(j)  "Subsidiary" means any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities or interests of such corporation or other entity entitled to vote generally in the election of directors or in which the Company has the right to receive 50% or more of the distribution of profits or 50% of the assets or liquidation or dissolution.

 

(k)  "Termination Period" means the period of time beginning with a Change in Control and ending two (2) years following such Change in Control.  Notwithstanding anything in this Agreement to the contrary, if (i) Executive's employment is terminated prior to a Change in Control for reasons that would have constituted a Qualifying Termination if they had occurred following a Change in Control; (ii) Executive reasonably demonstrates that such termination (or Good Reason event) was at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change in Control; and (iii) a Change in Control involving such third party (or a party competing with such third party to effectuate a Change in Control) does occur, then for purposes of this Agreement, the date immediately prior to the date of such termination of employment or event
constituting Good Reason shall be treated as a Change in Control.  For purposes of determining the timing of payments and benefits to Executive under Section 4, the date of the actual Change in Control shall be treated as Executive's Date of Termination under Section 1(e).

 

 

 

 

 

2.  Obligation of Executive.  In the event of a tender or exchange offer, proxy contest, or the execution of any agreement which, if consummated, would constitute a Change in Control, Executive agrees not to voluntarily leave the employ of the Company, other than as a result of Disability or an event which would constitute Good Reason if a Change in Control had occurred, until the Change in Control occurs or, if earlier, such tender or exchange offer, proxy contest, or agreement is terminated or abandoned.

 

3.  Term of Agreement.  This Agreement shall be effective on the date hereof and shall continue in effect until the Company shall have given three (3) years' written notice of cancellation; provided that, notwithstanding the delivery of any such notice, this Agreement shall continue in effect for a period of two (2) years after a Change in Control, if such Change in Control shall have occurred during the term of this Agreement.  Notwithstanding anything in this Section to the contrary, this Agreement shall terminate if Executive or the Company terminates Executive's employment prior to a Change in Control except as provided in Section l(k).

 

4.  Payments Upon Termination of Employment.

 

(a)  Qualifying Termination.  If during the Termination Period the employment of Executive shall terminate pursuant to a Qualifying Termination, then the Company shall provide to Executive:

 

(i) within five (5) days following the Date of Termination, a lump-sum cash amount equal to the sum of (A) Executive's base salary through the Date of Termination and any bonus amounts which have become payable, to the extent not theretofore paid or deferred, (B) a pro rata portion of Executive's annual bonus for the fiscal year in which Executive's Date of Termination occurs in an amount at least equal to (1) Executive's Bonus Amount, multiplied by (2) a fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination occurs through the Date of Termination and the denominator of which is three hundred sixty-five (365), and reduced by (3) any amounts paid from the Company's annual incentive plan for the fiscal
year in which Executive's Date of Termination occurs and (C) any 

 

 

 

 

accrued vacation pay, in each case to the extent not theretofore paid; plus

 

(ii) within five (5) days following the Date of Termination, a lump-sum cash amount equal to (i) two (2) times Executive's highest annual rate of base salary during the 12-month period immediately prior to Executive's Date of Termination, plus (ii) two (2) times Executive's Bonus Amount.

 

(iii) in addition to the payments set forth in Sections 4  (a) (i) and  (ii) as well as Section 5, any stock incentives (as defined in the stock incentive plans maintained by the Company) that have been awarded to Executive under the terms of the stock incentive plans maintained by the Company shall fully vest upon the occurrence of a Change in Control, as such term is defined in Section 1(d) with 50% substituted for 25 % in Section 1 (d) (ii) (whether or not a Qualifying Termination has occurred) and all other terms and conditions of any such stock incentive award shall remain in effect to the extent not inconsistent with the provisions of this Section 4 (a) (iii).

 

(b)  If during the Termination Period the employment of Executive shall terminate pursuant to a Qualifying Termination, the Company shall continue to provide, for a period of two (2) years following Executive's Date of Termination, Executive (and Executive's dependents, if applicable) with the same level of medical, dental, accident, disability and life insurance benefits upon substantially the same terms and conditions (including contributions required by Executive for such benefits) as existed immediately prior to Executive's Date of Termination (or, if more favorable to Executive, as such benefits and terms and conditions existed immediately prior to the Change in Control); provided that, if Executive cannot continue to participate in the Company plans providing such benefits, the Company shall otherwise provide such benefits on the same
after-tax basis as if continued participation had been permitted.  Notwithstanding the foregoing, in the event Executive becomes reemployed with another employer and becomes eligible to receive welfare benefits from such employer, the welfare benefits described herein shall be secondary to such benefits during the period of Executive's eligibility, but only to the extent that the Company reimburses Executive for any increased cost and provides any 

 

 

 

 

additional benefits necessary to give Executive the benefits provided hereunder.

 

(c)  If during the Termination Period the employment of Executive shall terminate other than by reason of a Qualifying Termination, then the Company shall pay to Executive within thirty (30) days following the Date of Termination, a lump-sum cash amount equal to the sum of (1) Executive's base salary through the Date of Termination and any bonus amounts which have become payable, to the extent not theretofore paid or deferred, and (2) any accrued vacation pay, in each case to the extent not theretofore paid.  The Company may make such additional payments, and provide such additional benefits, to Executive as the Company and Executive may agree in writing.

 

5.  Certain Additional Payments by the Company.

 

(a)  Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 5) (the "Payments") would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"),
then the Company shall pay to Executive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

 

(b)  Subject to the provisions of Section 5(a), all determinations required to be made under this Section 5, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determinations, shall be made by the public accounting firm that is retained by the 

 

 

 

 

Company as of the date immediately prior to the Change in Control (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from the Company or the Executive that there has been a Payment, or such earlier time as is requested by the Company (collectively, the "Determination").  In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, Executive may appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any agreement requested by the Accounting Firm in connection
with the performance of the services hereunder.  The Gross-up Payment under this Section 5 with respect to any Payments shall be made no later than thirty (30) days following such Payment.  If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive's applicable federal income tax return will not result in the imposition of a negligence or similar penalty.  The Determination by the Accounting Firm shall be binding upon the Company and Executive.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-up Payments which will not have been made by the Company should have been made ("Underpayment") or Gross-up Payments are made by the Company which should not have been made ("Overpayment"), consistent with the calculations required
to be made hereunder.  In the event that the Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive.  In the event the amount of the Gross-up Payment exceeds the amount necessary to reimburse the Executive for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive (to the extent he has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the 

 

 

 

Company.  Executive shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax.

 

6.  Withholding Taxes.  The Company may withhold from all payments due to Executive (or his beneficiary or estate) hereunder all taxes which, by applicable federal, state, local or other law, the Company is required to withhold therefrom.

 

7.  Reimbursement of Expenses.  If any contest or dispute shall arise under this Agreement involving termination of Executive's employment with the Company or involving the failure or refusal of the Company to perform fully in accordance with the terms hereof, the Company shall pay directly or reimburse Executive, on a current basis, for all reasonable legal fees and expenses, if any, incurred by Executive in connection with such contest or dispute (regardless of the result thereof), together with interest in an amount equal to the prime rate of the Chase Manhattan Bank, N.A., from time to time in effect, but in no event higher than the maximum legal rate permissible under applicable law, such interest to accrue from the date the Company receives Executive's statement for such fees and expenses through the date of payment thereof, regardless of
whether or not Executive's claim is upheld by a court of competent jurisdiction/arbitration panel.

 

8.              Scope of Agreement.  Nothing in this Agreement shall be deemed to entitle Executive to continued employment with the Company or its Subsidiaries, and if Executive's employment with the Company shall terminate prior to a Change in Control, Executive shall have no further rights under this Agreement (except as otherwise provided hereunder); provided, however, that any termination of Executive's employment during the Termination Period shall be subject to all of the provisions of this Agreement.

 

9.  Successors:  Binding Agreement.

 

(a)  This Agreement shall not be terminated by any Business Combination.  In the event of any Business Combination, the provisions of this Agreement shall be binding upon the Surviving Corporation, and such Surviving Corporation shall be treated as the Company hereunder.

 

 

 

 

 

(b)  The Company will 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 unconditionally to assume expressly and agree to perform this Agreements in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.  As used in this Agreement, "Company" means the Company has hereinbefore defined, and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.  Failure of the Company to obtain such assumption prior to the effectiveness of any such succession that constitutes a Change in Control, shall be a breach of this Agreement and shall constitute Good Reason hereunder and shall entitle Executive to compensation and other benefits
from the Company in the same amount and on the same terms as Executive would be entitled hereunder if Executive's employment were terminated following a Change in Control by reason of a Qualifying Termination.  For purposes of implementing the foregoing, the date on which any such Business Combination becomes effective shall be deemed the date Good Reason occurs, and shall be the Date of Termination if requested by Executive.

 

(c)  This Agreement is personal to the Executive and without the express prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution, and any such purported assignment shall be void.  This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive shall die while any amounts would be payable to Executive hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person is so appointed, to Executive's estate.

 

10.  Notice.  (a)  For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or five (5) days after deposit in the United States mail, certified and return receipt requested, postage prepaid, addressed as follows:

 

 

 

 

 

If to the Executive:

 

Clifford M. Sladnick

343 Old Green Bay Road

Glencoe, IL 60022

 

If to the Company:

 

Gevity HR, Inc.

600 301 Boulevard West

Bradenton, FL  34205

Attn:  General Counsel

 

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

(b)  A written notice of Executive's Date of Termination by the Company or Executive, as the case may be, to the other, shall (i) indicate the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated and (iii) specify the termination date (which date shall be not less than fifteen (15) (thirty (30), if termination is by the Company for Disability) nor more than sixty (60) days after the giving of such notice).  The failure by Executive or the Company to set forth in such notice any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or
circumstance in enforcing Executive's or the Company's rights hereunder.

 

11.  Full Settlement; Resolution of Disputes.  The Company's obligation to make any payments provided for in this Agreement and otherwise to perform its obligations hereunder shall be in lieu and in full settlement of all other severance payments to Executive under any other severance or employment agreement between Executive and the Company, and any severance plan of the Company.  The Company's obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against Executive or others.  In no event shall Executive be obligated to seek 

 

 

 

 

other employment or take other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and, except as provided in Section 4(b), such amounts shall not be reduced whether or not Executive obtains other employment.

 

12.  Employment with Subsidiaries.  Employment with the Company for purposes of this Agreement shall include employment with any Subsidiary.

 

13.  Survival.  The respective obligations and benefits afforded to the Company and Executive as provided in Sections 4 (to the extent that payments or benefits are owed as a result of a termination of employment that occurs during the term of this Agreement), 5 (to the extent that Payments are made to Executive as a result of a Change in Control that occurs during the term of this Agreement), 6, 7, 9(c) and 11 shall survive the termination of this Agreement.

 

14.  GOVERNING LAW.  THE INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF FLORIDA WITHOUT REGARD TO THE PRINCIPLE OF CONFLICTS OF LAWS.

 

15.  Severability.  The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity, legality or enforceability of any other provision of this Agreement, which other provisions shall remain in full force and effect.  If the effect of a final and unappealable holding or finding that any such provision is either invalid, illegal or unenforceable is to modify to the Executive's detriment, reduce or eliminate any compensation, reimbursement, payment, allowance or other benefit to the Executive intended by the Company and Executive in entering into this Agreement, the Company shall promptly negotiate and enter into an agreement with the Executive containing alternative provisions (reasonably acceptable to the Executive) that will restore to the Executive (to the extent legally permissible) substantially
the same economic, substantive and income tax benefits the Executive would have enjoyed had any such provision of this Agreement been upheld as valid, legal and enforceable.

 

16.  Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an 

 

 

 

 

original and all of which together shall constitute one and the same instrument.

 

17.  Miscellaneous.  (a)  No provision of this Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by Executive and by a duly authorized officer of the Company.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

(b)  Failure by Executive or the Company to insist upon strict compliance with any provision of this Agreement or to assert any right Executive or the Company may have hereunder, including without limitation, the right of Executive to terminate employment for Good Reason, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

(c)  Except as otherwise specifically provided herein, the rights of, and benefits payable to, Executive, his estate or his beneficiaries pursuant to this Agreement are in addition to any rights of, or benefits payable to, Executive, his estate or his beneficiaries under any other employee benefit plan or compensation program of the Company.

 

(d)  If any amounts which are required or determined to be paid or payable or reimbursed or reimbursable to the Executive under this Agreement (or, following a Change in Control, under any other plan, agreement, policy or arrangement with the Company) are not so paid promptly at the times provided hereon or therein, such amounts shall accrue interest at an annual percentage rate of ten percent (10%) from the date such amounts were required or determined to have been paid or payable or reimbursed or reimbursable to the Executive until such amounts and any interest accrued thereon are finally and fully paid; provided, however, that in no event shall the amount of interest contracted for, charged or received hereunder exceed the maximum non-usurious amount of interest allowed by applicable law.

 

(e)  The Executive acknowledges receipt of a copy of this Agreement (together with any attachments hereto), 

 

 

 

 

which has been executed in duplicate and agrees that, with respect to the subject matter hereof, this is the entire agreement with the Company. This Agreement replaces and supercedes the Change in Control Severance Agreement between the parties dated the 23rd day of February 2000.  Any other oral or any written representations, understandings or agreements with the Company or any of its officers or representatives covering the same subject matter which are in conflict with this Agreement hereby are merged into and superseded by the provisions of this Agreement.  Notwithstanding anything to the contrary in this Agreement, any payments made or benefits provided under this Agreement shall be an offset to the payments and/or benefits otherwise payable under any other agreement between Executive and the Company.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer of the Company and Executive has executed this Agreement as of the day and year first above written.

 

 

	
             
 	
            GEVITY HR, Inc.
 
	
             
 	
             
 
	
             
 	
            /s/ Gregory M Nichols
 	
             
 
	
             
 	
            Name: Gregory M. Nichols
 
	
             
 	
             
 
	
             
 	
            Title: Senior Vice President and

General Counsel
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            /s/ Clifford M. Sladnick
 	
             
 
	
             
 	
            CLIFFORD M. SLADNICK

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