Document:

com_8k0331ex102.htm

    Exhibit
10.2

     

    

     

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

    

     

    This
Amended and Restated Employment Agreement (this “Agreement”), by and
among COMFORCE CORPORATION,
a Delaware corporation (“COMFORCE”), COMFORCE OPERATING, INC., a
Delaware corporation wholly owned by COMFORCE (“COI” and, together
with COMFORCE and any of its other subsidiaries that are directly or indirectly
50% or more owned by COMFORCE, collectively, “Employer”), and HARRY V. MACCARRONE, a
resident of the State of New York (“Employee”), executed
on March 31, 2008 and effective as of such date (the “Effective
Date”).

     

     

    RECITALS:

     

    A.           The
parties to this Agreement entered into that certain Amended and Restated
Employment Agreement dated August 7, 2006, as further amended March 27, 2007,
under which Employee provided services to and on behalf of Employer as an
employee of Employer.  The parties now desire to amend and restate
Employee’s employment agreement in order to ensure that the terms conform to the
requirements of the final regulations of the Internal Revenue Service issued
under Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), and to make certain other amendments to clarify terms and ensure that
the Agreement comports with the understandings and expectations of Employer and
Employee; and

     

    B.           Employer
wishes to continue to employ Employee, and Employee is willing to continue
employment with Employer, on and after the Effective Date on the terms and
conditions provided for in this Agreement.

     

    NOW, THEREFORE, in
consideration of the promises and mutual obligations of the parties contained in
this Agreement, and for other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged the parties hereto agree as
follows:

     

    1.           Employment
of Employee.  Employer
continues to employ Employee, and Employee continues to accept employment by
Employer, during the Term (as defined in Section 2 of this Agreement), for the
consideration and on the terms and conditions provided in this
Agreement.  Employee shall be employed during the Term in such
capacity or capacities, and perform such duties, as may be determined from time
to time by each Employer’s Board of Directors or the Chairman of the
Board.  COMFORCE, COI and/or any subsidiary shall allocate between
each other the uses of Employee and Employee costs under this
Agreement.  Subject to the foregoing powers of the Board of Directors
and Chairman of Employer, Employee shall maintain the title and position of
Executive Vice President, Chief Financial Officer and Secretary of
Employer.  Employee shall have full authority and responsibility to
undertake and carry out the functions and activities of that position in all
respects, subject only to directions of, and policies established and
communicated to Employee from time to time by, Board of Directors or the
Chairman of the Board.

     

    2.           Effective
Date: Term.   This
Agreement shall commence and be effective for all purposes as of the Effective
Date and shall remain in effect, unless earlier terminated as provided in
Section 7 of this Agreement, until December 31, 2008 (the “Initial Termination
Date”), which

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    date
shall be extended to the immediately succeeding December 31 unless, not less
than sixty (60) days prior to the Initial Termination Date or any subsequent
extension thereof, either party has given the other written notice of
termination of this Agreement.  For purposes of this Agreement, the
period during which Employee is employed by Employer pursuant to this Agreement
is called the “Term.”

     

    For purposes of this Agreement,
“separation from service” shall mean the Employee’s separation from service, as
defined in regulations promulgated under section 409A of the Code, except that a
separation from service will occur when the Employee’s level of services drops
to 49% or less of the average level of services provided by the Employee over
the immediately preceding 36 month period.  If Employee’s status
changes from an employee to an independent contractor (other than as a member of
COMFORCE’s board of directors), the determination of the “separation from
service” will not take into account the services provided as an independent
contractor unless required by regulations promulgated under Section 409A of
the Code.

     

    3.           Employee’s
Duties.     During
the Term, Employee shall: (i) devote his full working time and attention to the
business and affairs of Employer and to the performance of his duties under this
Agreement; (ii) serve Employer faithfully and to the best of his ability, and
use his best efforts to promote the interests of Employer; and (iii) follow and
implement the policies and directions of the Board of
Directors.  Notwithstanding the above, nothing contained in this
Section 3 shall be deemed to prevent Employee from engaging in activities
relating to: (A) making of investments for his own account or for the account of
others; (B) investment banking, venture capital and finance activities; (C)
serving as a member of the board of directors of other corporations; or (D)
engaging in charitable or public service activities; provided, however, that
such investments, services and activities do not interfere or conflict with
Employee’s performance of his duties under this Agreement.

     

    4.           Employee’s
Compensation.

     

    (a)                 Base
Salary.

     

    (i)           As
Employee’s base compensation for all services to be performed under this
Agreement for the period commencing April 1, 2007 and ending March 31, 2008,
Employer shall pay Employee a salary (“Base Salary”) at the
per annum rate of Three Hundred Sixty-Three Thousand Four Hundred Eighty-Four
Dollars ($363,484), payable in accordance with Employer’s payroll practices for
its officers.  For the period commencing April 1, 2008 and (assuming
renewal of this Agreement) ending March 31, 2009, Employer shall pay Employee a
Base Salary at the per annum rate of Three Hundred Ninety-Nine Thousand
Eight Hundred Thirty-Two Dollars ($399,832), payable in accordance with
Employer’s payroll practices for its officers.

     

    (ii)           Thereafter,
Employee’s Base Salary will increase annually during the Term on each April
1st,
by the greater of (A) seven percent (7%) or (B) the percentage increase in the
Price Index (as defined below) for the most recently available month at the time
of each such increase over the Price Index
reported for the same month one year prior (such percentage increase calculated
pursuant to this Section 4(a) is referred to in this Agreement as the “CPI
Increase”).

     

    
      
         

      

      
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    (iii)           The
Base Salary may also be increased from time to time at the discretion of the
Board of Directors or any committee thereof having authority over Employee’s
compensation to account for material changes of circumstances of Employer or of
the responsibilities of Employee, and may be increased by the Board of Directors
or such committee from time to time in its discretion for any other reason
whatsoever.

     

    For purposes of this Agreement,
“Price Index”
shall mean the United States Department of Labor, Bureau of Labor Statistics,
Consumer Price Index U.S. City Averages, all Urban Consumers, All Items, 1982-84
= 100.  If the manner in which the Price Index as determined by the
Department of Labor shall be substantially revised, or if the 1982-84 average
shall no longer be used as an index of 100, an adjustment shall be made in such
revised index so that the number used shall be that which would have been
obtained if the Price Index had not been so revised or if said average was still
in use. If the Price Index shall become unavailable for any reason whatsoever,
the parties will substitute therefor a comparable index based upon changes in
the cost of living or purchasing power of the consumer dollar published by
another governmental agency or, if no such index shall then be available, a
comparable index published by a major bank or other financial
institution.

    

    (b)                 Reimbursement of
Expenses.

     

    (i)           During
the Term, Employee shall incur ordinary and necessary business expenses in
connection with the performance of his duties under this
Agreement.  Employer shall pay or reimburse Employee for such business
expenses in accordance with Employer’s policies and procedures for accountable
plans.

     

    (ii)           In
addition, Employee shall receive $15,000 each calendar year during the Term as a
non-accountable expense allowance, and Employer shall reimburse to Employee such
non-accountable expenses before the close of the calendar year in which such
expenses are incurred by Employee; provided, however, that nothing herein shall
preclude Employee and Employer from accounting for any documented expenses
incurred by Employee.

     

    (c)           Benefit
Plans.  Employee shall receive such incidental benefits of
employment, such as medical and dental insurance, and pension plan participation
as are provided generally to Employer’s other executive
officers.  Without limiting the foregoing, Employer shall either (i)
pay for health insurance under Employer’s cafeteria plan under Section 125 of
the Code, or (ii) reimburse Employee for the cost of supplemental or other
health insurance costs in lieu of payment under the Employer’s cafeteria plan
(provided that in no event shall the reimbursable amount exceed the costs
Employer would bear under the cafeteria plan pursuant to clause (i)) not later
than two and one-half (2.5) months following the close of the calendar year in
which such health insurance costs are incurred.

     

    (d)           Fringe Benefits.    Employee
shall be entitled to participate in all other fringe benefits generally offered
by Employer to its employees during the Term.

     

    (e)           Deferred Plans.
Notwithstanding anything to the contrary contained in this Agreement, the
COMFORCE Corporation Restated Deferred Compensation Plan and
the

    
      
         

      

      
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    COMFORCE
Corporation Restated Deferred Vacation Plan shall continue in effect, and the
rights and obligations of Employer and Employee shall be governed by the terms
thereof.

    

    5.           Employee’s
Vacation.  Employee
shall be entitled to paid vacation annually equal to the greater of (a) five (5)
weeks or (b) the period provided in Employer’s vacation policies for similarly
situated employees.

     

    6.           Non-Solicitation
and Non-Competition Provisions.

     

    (a)           Non-Solicitation.  The
Employee recognizes that the methods employed in the Employer’s business are
such as have placed and would place the Employee in close business and personal
relationship with the Employer’s customers.  It is therefore agreed
that in the event of a termination of this Agreement for any reason whatsoever,
the Employee will not for a period of one (1) year from the date of termination
of this Agreement, either directly or indirectly on Employee’s own account or as
agent, stockholder, owner, employer, employee, or otherwise, solicit any
business from the then customers of the Employer or from potential customers of
the Employer that Employee may have contacted or been assigned to at any time
during Employee’s period of employment.  Nothing herein shall be
deemed to preclude Employee from taking a position in accordance with the last
sentence of Section 6(b) hereof, as long as he is not directly involved in
actions or conduct prohibited by this Section 6(a).

     

    (b)           Non-Competition.  The
Employee further agrees that during the Term of Employment and for a period of
one (1) year from the date of termination, Employee shall not engage
either  directly or indirectly on Employee’s  own account or
as agent, stockholder, owner, employee, employer or otherwise, in a business
which is the same as or substantially similar to that of the Employer and any
subsidiaries, parent or affiliates (collectively the “Group”), (i) within
the United States or (ii)  within any  country in which the
Group  conducts  any  business.  Notwithstanding
the foregoing, Employee may during the period in which this Section 6(b) is in
effect own stock or other interests in corporations or other entities that
engage in businesses the same or substantially similar to those engaged in by
the Group provided that Employee does not, directly or indirectly (including
without limitation as the result of ownership or control of another corporation
or other entity), individually or as part of a group (as that term is defined in
Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder) (A) control or have the ability to
control the corporation or other entity, (B) provide to the corporation or
entity, whether as an employee, consultant or otherwise, advice or consultation
other than as set forth below, (C) provide to the corporation or entity any
confidential or proprietary information regarding the Group or its businesses or
regarding the conduct of businesses similar to those of the Group, (D) have the
purpose to change or influence the control of the corporation or entity (other
than solely by the voting of his shares or ownership interest) or (E) have a
business or other relationship, by contract or otherwise, with the corporation
or entity other than as a passive investor in it; provided, however, that
Employee may vote his shares or ownership interest in such manner as he chooses
provided that such action does not otherwise violate the prohibitions set forth
in this sentence.  In addition, notwithstanding the prior provisions
of this Section 6(b), after the termination of Employee’s employment with
Employer, Employee may take a position: (x) as an employee with a business that
is similar to Employer provided that such position is a position, such as chief
financial officer or controller, that solely relates to financial and accounting
aspects of the business, that

     

    
      
         

      

      
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    such
position does not involve the management, oversight or direction of any
operations other than accounting and financial functions; or (y) as an employee
working in any capacity whatsoever for any corporation,
partnership,  limited liability company or other venture in which John
C. Fanning is either employed or has substantial involvement.

     

    7.           Termination
of Agreement.

     

    (a)                 Termination for “Just
Cause.”  Employer agrees to promptly give Employee written
notice if Employer believes that acts or events constituting “just cause” (as
defined below) exist.  Employee has the right to cure within thirty
(30) days of Employer’s giving of such notice, the acts, events or conditions
which led to Employer’s notice, but only if such acts are capable of being
cured.  If Employer provides notice to Employee of acts or events
constituting “just cause” that Employee fails to timely cure, Employer shall
have the right to terminate Employee’s employment hereunder effective
immediately upon written notice of termination from Employer to
Employee.  Within 90 days after the date of such separation from
service, but no later than March 15 of the year following the separation from
service, Employee shall receive only such amounts as are earned through the date
of separation from service (including cash bonuses that have been awarded to
Employee but remain unpaid), and Employer shall owe no further consideration or
compensation to Employee, except to the extent required by
law.  Without limiting the foregoing, Employee shall receive no
further consideration for the non-accountable expense allowance under Section
4(b)(ii) beyond any amounts previously paid or credited to Employee in respect
of such allowance or expenses reimbursed (or previously incurred and
reimbursable) under such allowance, as of the date of separation from service
(which, if any, would be paid in accordance with Section 4(b)(ii)).

     

    For purposes of this Agreement, “just
cause” shall mean: (i) the willful failure or refusal of Employee to implement
or follow the reasonable written policies or directions of Employer’s Board of
Directors, provided that Employee’s failure or refusal is not based upon
Employee’s belief in good faith, as expressed to Employer in writing, that the
implementation thereof would be unlawful; (ii) embezzlement; (iii) material
violation of any of Employee’s covenants or agreements set forth in this
Agreement due to Employee’s willfulness or gross negligence; and (iv) conviction
of Employee of a felony arising from an act or acts which result in material
harm to Employer; provided, however, that after a Change of Control, “just
cause” shall only mean the events described in clauses (ii), (iii) and (iv) of
this sentence.

     

    If Employee terminates his employment
with Employer as a result of a material breach by Employer of its obligations
under this Agreement, which breach, (a) if it is capable of being cured, has not
been cured within 30 days following receipt of written notice of such breach
from Employee to Employer (such notice and opportunity to cure to apply only if
such breach is capable of being cured), and (b) involves a “material negative
change” in the employment relationship within the meaning of such term under
regulations promulgated under Section 409A of the Code, as amended from time to
time, such termination shall be deemed for all purposes of this Agreement as a
termination of Employee’s employment by Employer without “just
cause.”

     

    (b)                 Termination on
Death.  The employment of Employee shall automatically
terminate upon the death of Employee.  Within 90 days after the date
of the Employee’s death, Employee’s estate shall receive only such amounts as
are earned (including cash bonuses that

     

    
      
         

      

      
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    have been
awarded to Employee but remain unpaid) as of the date of Employee’s death, and
Employer shall owe no further consideration or compensation to Employee or to
Employee’s estate.  For purposes of this paragraph, for the calendar
year in which he dies, Employee shall be deemed to have earned an amount equal
to the non-accountable expense allowance under Section 4(b)(ii) multiplied by a
fraction, the numerator of which shall be the number of full calendar months
Employee was employed during the calendar year in which he dies, as of the date
of the Employee’s death, and the denominator of which shall be 12, less any
amount previously paid or credited to Employee in respect of such allowance for
such calendar year.

     

    (c)                 Termination on
Disability.  Employer shall have the right to terminate
Employee’s employment hereunder in the event Employee suffers a Disability,
effective immediately upon written notice from Employer to
Employee.  For purposes hereof, “Disability” shall
mean the inability of Employee to substantially perform his duties and
responsibilities to the Company by reason of a physical or mental injury,
illness disability or infirmity.  Within 90 days after the date of
such separation from service, Employee shall be entitled to receive the
compensation set forth below in this Section 7(c).  The amounts
determined under clauses (i), (ii), (iii), (iv) and (vi) shall be paid within 90
days after the date of separation from service, except to the extent any
portion of such payment will be subject to the provisions of Section 409A of the
Code, in which case such subject portion shall be paid no earlier than the date
that is six (6) months following the date of separation from
service.

     

    (i)           Employee
will be entitled to receive an amount equal to his annual Base Salary at the
then current rate.

     

    (ii)           Employee
will be entitled to receive an amount equal to the highest amount of cash
bonuses paid (or that have been awarded to Employee for a prior year’s service
but remain unpaid as of the date of termination) to Employee for any one (1)
year during the three (3) years prior to such separation from
service.

     

    (iii)           Employee
will be entitled to receive an amount equal to the amount contributed by
Employer on behalf of Employee for the calendar year ending immediately prior to
the date of separation from service under the COMFORCE Corporation Restated
Deferred Compensation Plan, but any contributions by Employer on behalf of
Employee under the COMFORCE Corporation Restated Deferred Vacation Plan shall be
excluded.

     

    (iv)           Employer
shall reimburse Employee for Employee’s cost of coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for a one (1) year period
following separation from service if such coverage is both available and elected
by Employee.  If such COBRA coverage is not available for all or any
part of this period, then Employer shall pay to Employee monthly, for the period
COBRA coverage is not available, the lesser of the cost of
(A) other medical insurance Employee elects to obtain by the election deadline
date that is required under COBRA or (B) COBRA insurance (had it been
available).

     

    (v)           Employee
will be entitled to receive an amount equal to the annual non-accountable
expense allowance ($15,000) multiplied by a fraction, the numerator of which
shall be the number of full calendar months Employee was employed during the
calendar year in which his employment is terminated due to Disability based on
the date of separation from

    
      
         

      

      
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    service,
and the denominator of which shall be 12, less any amount previously paid or
credited to Employee in respect of such allowance or for expenses reimbursed (or
previously incurred and reimbursable) under such allowance for such calendar
year as of the date of separation from service.

    

    (d)                 Termination without “Just
Cause.” If Employer terminates this Agreement without “just cause” or
gives notice to Employee under Section 2 that this Agreement will not be
extended beyond the then current Term, then, subject to the exclusions set forth
in this Section 7(d), Employee will be entitled to receive the compensation set
forth below, provided that if the separation from service occurs prior to a
Change of Control (as hereinafter defined), Employee will be entitled to receive
200% of the amounts determined under clauses (i), (ii) and (iii) and 100% of the
amounts determined under clauses (iv), (v) and (vi).  The amounts
determined under clauses (i), (ii), (iii), (iv) and (vi) shall be paid within 90
days after the date of separation from service, except to the extent any
portion of such payment will be subject to the provisions of Section 409A of the
Code, in which case such subject portion shall be paid no earlier than the date
that is six (6) months following the date of separation from
service.

     

    (i)           
Employee will be entitled to receive his Base Salary at the then current
rate.

     

    (ii)           Employee
will be entitled to receive an amount equal to the highest amount of cash
bonuses (or that have been awarded to Employee for a prior year’s service but
remain unpaid as of the date of termination) to Employee for any one (1) year
during the three (3) years prior to such separation from service.

     

    (iii)           Employee
will be entitled to receive an amount equal to the  amount contributed
by Employer on behalf of Employee for the calendar year ending immediately prior
to the date of separation from service under the COMFORCE Corporation Restated
Deferred Compensation Plan, but any contributions by Employer on behalf of
Employee under the COMFORCE Corporation Restated Deferred Vacation Plan shall be
excluded.

     

    (iv)           Employer
shall reimburse Employee monthly (and in no event later than the year after the
year the expense is incurred) for Employee’s cost of coverage under the COBRA
for the period through the end of the second calendar year following the
calendar year in which Employee’s separation from service occurs (the “Benefit Period”) if
such coverage is both available and elected by Employee.  The amount
of COBRA expenses eligible for reimbursement during one taxable year may not
affect the amount of COBRA expenses eligible for reimbursement in any other
taxable year.  If such COBRA coverage is not available for all or any
part of the Benefit Period, then Employer shall pay to Employee monthly, for the
period COBRA coverage is not available, the lesser of the cost of
(A) other medical insurance Employee elects to obtain by the election deadline
date that is required under COBRA or (B) COBRA insurance (had it been
available).  

     

    (v)           Employee
will be entitled to receive an amount equal to the full annual non-accountable
expense allowance ($15,000) multiplied by a fraction, the numerator of which
shall be the number of full calendar months Employee was employed during the
calendar year in which his employment is terminated without “just cause,” based
on the date of separation from

     

    
      
         

      

      
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    service,
and the denominator of which shall be 12, less any amount previously paid or
credited to Employee in respect of such allowance or for expenses reimbursed (or
previously incurred and reimbursable) under such allowance for such calendar
year as of the date of separation from service.

     

    (e)           Change of
Control.  Upon the occurrence of any change in the ownership or
effective control of COMFORCE, or in the ownership of a substantial portion of
the assets of COMFORCE (as described in the regulations under section 409A of
the Code) (“Change of
Control”):

     

    (i)           Employer
will make a lump sum cash payment to Employee within 90 days after the date of
the Change of Control, equal to 300% of the aggregate of following:

     

    
      	
               
      

            	
              (A)

            	
              the
      sum of: (x) Employee’s then-current annual base salary; plus (y) the
      highest amount of cash bonuses paid to Employee (or that have been awarded
      to Employee for a prior year’s service but remain unpaid as of the date of
      termination) for any one (1) year during the three (3) calendar years
      immediately prior to the Change of Control; plus (z) the
      Employee’s annual non-accountable expense allowance;
  and

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      amount contributed by Employer on behalf of Employee for the calendar year
      ending immediately prior to the separation from service, without
      duplication of amounts accounted for under clause (A) of this subsection,
      to any pension, retirement or similar plan of Employer or under the
      COMFORCE Corporation Restated Deferred Compensation Plan (but any
      contributions by Employer on behalf of Employee under the COMFORCE
      Corporation Restated Deferred Vacation Plan shall be
      excluded).

            

    

     

    All compensation received by Employee
pursuant to this subsection is collectively referred to in this Agreement as
“Change of Control
Payments.”

     

               (f)           Excise
Tax.  In the event that Employee becomes entitled to a Change
of Control Payment, then, if any of the Change of Control Payment will be
subject to the tax (the “Excise Tax”) imposed
by Section 4999 of the Code, Employer shall pay to Employee promptly following
determination of the estimated amount due, subject to any adjustments when the
final determination is made that the Excise Tax is due, an additional amount
(the “Gross-Up
Payment”) such that the net amount retained by Employee, after deduction
of Excise Tax on the Change of Control Payment and any federal, state and local
income tax upon the payment provided for by this Section 7(f), shall be equal to
the Change of Control Payment.  In no event will any amount of the
Gross-Up Payment be paid later than the end of the calendar year next following
the year in which the related taxes are remitted.

     

    For purposes of determining whether any
payment will be subject to the Excise Tax and the amount of such Excise
Tax:

     

    
      
         

      

      
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    (i) any other
payments or benefits received or to be received by Employee in connection with
the Change of Control of Employer or the termination of Employee’s employment
(whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with Employer, any person whose actions result in a Change of
Control or any person affiliated with Employer or such person) shall be treated
as “parachute payments” within the meaning of Section 280G(b)(2) of the Code,
and “excess parachute payments” within the meaning of Section 280G(b)(1) shall
be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by Employer and acceptable to Employee such other payments or benefits
(in whole or in part) do not constitute parachute payments, or such excess
parachute payments (in whole or in part) represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the
Code;

     

    (ii)           the
amount of Change of Control Payment which shall be treated as subject to the
Excise Tax shall be equal to the lesser of (A) the total amount of the Change of
Control Payment or (B) the amount of excess parachute payments within the
meaning of Section 280G(b)(1) and (4) after applying clause (i) above;
and

     

    (iii)           the
value of any non-cash benefits or any deferred payment or benefit shall be
determined by Employer’s independent auditors in accordance with the principles
of Sections 280G(d)(3) and (4) of the Code.

     

    For purposes of determining the amount
of the Gross-Up Payment, Employee shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rates of taxation in the state and locality that imposes such
tax on the date of termination of Employee’s employment, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such
state and local taxes.  In the event that the Excise Tax is
subsequently determined to be less than the amount taken into account under this
Agreement at the time of the termination of Employee’s employment, Employee
shall repay to Employer the portion of the Gross-Up Payment attributable to such
reduction plus interest on the amount of such repayment at the rate provided in
Section 1274(b)(2)(B) of the Code at the time the amount of such reduction
in Excise Tax is finally determined. In the event that the Excise Tax is
determined to exceed the amount taken into account under this Agreement at the
time of the termination of Employee’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), Employer shall make an additional gross-up payment in respect
of such excess (plus any interest payable with respect to such excess) after the
amount of such excess is finally determined but in no event later than the end
of the calendar year next following the year in which the related taxes are
remitted.

     

               (g)           Voluntary
Termination.  If Employee shall voluntarily cease his
employment with Employer for any reason (other than under circumstances in which
a resignation is deemed to be a termination for “just cause” as provided in
Section 7(a)) or Employee is terminated for just cause, Employee shall receive
within 90 days after the separation from service, only such amounts as are
earned (including cash bonuses that have been awarded to Employee but remain
unpaid) prior to Employee’s voluntary termination.  For purposes of
this paragraph, for the calendar year in which he voluntarily terminates,
Employee shall be deemed to have earned an amount equal to the non-accountable
expense allowance under Section 4(b)(ii) multiplied by a

     

    
      
         

      

      
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    fraction,
the numerator of which shall be the number of full calendar months Employee was
employed during the calendar year in which he voluntarily terminates his
employment, based on the date of separation from service, and the denominator of
which shall be 12, less any amount previously paid or credited to Employee in
respect of such allowance (or expenses reimbursed under such allowance) for such
calendar year as of the date of separation from service.  Employer
shall owe no further consideration or compensation to Employee, and all
compensation and benefits payable to Employee under this Agreement shall
thereupon, without further writing or act, cease, lapse and be terminated;
provided, however, that Employee may continue to receive benefits under any
group health care insurance plan, at Employee’s expense, to the extent required
by COBRA.  This Section 7(g) does not affect any rights of Employee
under any stock option agreements, the COMFORCE Corporation Restated Deferred
Compensation Plan, or the COMFORCE Corporation Restated Deferred Vacation Plan,
which shall be governed by the express terms of such agreements or
plans.

     

    (h)           Certain
Reimbursements.  Employer will reimburse Employee for any and
all legal and professional fees and expenses reasonably incurred by Employee,
including without limitation all fees and expenses incurred in connection with
efforts to enforce the provisions of this Agreement, which reimbursement shall
be paid promptly but in no event more than two and one-half (2.5) months after
such expenses are incurred by the Employee.

     

    8.           Indemnification
and Insurance.

     

    In the
event that during or after the Term, Employee is made a party or is threatened
to be made a party to or is involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (“proceeding”), by
reason of the fact that he is or was a director or officer, employee or agent of
or is or was serving at the request of Employer as a director or officer,
employee or agent or another corporation, or of a partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether the basis of such proceeding is alleged action in an official
capacity as a director, officer, employee or agent or in any other capacity
while serving as a director, officer, employee or agent, Employee shall be
indemnified and held harmless by Employer to the fullest extent authorized by
the Delaware General Corporation Law, as the same exists or may hereafter be
amended (but, in the case of any such amendment, only to the extent such
amendment permits Employer to provide broader indemnification rights than said
law permitted Employer to provide prior to such amendment) against all expenses,
liabilities and losses (including attorneys fees, judgments, fines ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably
incurred or suffered by Employee in connection therewith.  Such right
shall be a contract right and shall include the right to be paid by Employer
expenses incurred in defending any such proceeding in advance of its final
disposition; provided, however, that the payment of such expenses incurred by
Employee in his capacity as a director or officer (and not in any other capacity
in which service was or is rendered by Employee while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of such proceeding will be made only upon delivery to
Employer of an undertaking, by or on behalf of Employee, to repay all amounts to
so advanced if it should be determined ultimately that Employee is not entitled
to be indemnified under this section or otherwise.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Promptly
after receipt by Employee of notice of the commencement of any Proceeding for
which Employee may be entitled to be indemnified, Employee shall notify Employer
in writing of the commencement thereof (but the failure to notify Employer shall
not relieve it from any liability which it may have under this Section 8 unless
and to the extent that it has been prejudiced in a material respect by such
failure or from the forfeiture of substantial rights and
defenses).  If any such action, suit or proceeding is brought against
Employee and he notifies Employer of the commencement thereof, Employer will be
entitled to participate therein, and, to the extent it may elect by written
notice delivered to Employee promptly after receiving the aforesaid notice from
Employee, to assume the defense thereof with counsel reasonably satisfactory to
Employee, which may be the same counsel as counsel to
Employer.  Notwithstanding the foregoing, Employee shall have the
right to employ his own counsel in any such case, but the fees and expenses of
such counsel shall be at the expense of Employee unless: (i) the employment of
such counsel shall have been authorized in writing by Employer; (ii) Employer
shall not have employed counsel reasonably satisfactory to Employee to take
charge of the defense of such action within a reasonable time after notice of
commencement of the action; or (iii) Employee shall have reasonably concluded,
after consultation with counsel to Employee, that a conflict of interest exists
which makes representation by counsel chosen by Employer not advisable (in which
case Employer shall not have the right to direct the defense of such action on
behalf of Employee), in any of which events such fees and expenses of one
additional counsel shall be borne by Employer.  Anything in this
Section 8 to the contrary notwithstanding, Employer shall not be liable for any
settlement of any claim or action effected without its written
consent.

     

    Employer
agrees that it will maintain Directors and Officers Insurance during the Term
and for a period of three (3) years thereafter covering Employee and the other
officers and directors of Employer in the amount of not less than Ten Million
Dollars ($10,000,000).  In the event that such Directors and Officers
Insurance is not commercially available to Employer, Employer will create a
self-insurance reserve for all liabilities which would otherwise be covered by
Directors and Officers Insurance in the amount of Ten Million Dollars
($10,000,000), which reserve shall be maintained in a separate escrow account
and used exclusively for payment of liabilities, judgments, settlements or
claims against officers and directors of Employer, including Employee, which
would otherwise have been the subject of Directors and Officers
Insurance.

     

    9.           Effect
of Reorganization.

     

    If
Employer is at any time before or after a Change of Control merged or
consolidated into or with any other corporation or other entity (whether or not
Employer is surviving entity), or if substantially all of the assets thereof are
transferred to another corporation or other entity, the provisions of this
Agreement will be binding upon and inure to the benefit of the corporation or
other entity resulting from such merger or consolidation or the acquirer of such
assets, voting power or control, and this Section 9 will apply in the event of
any subsequent merger or consolidation or transfer of assets.

     

    In the
event of any merger, consolidation, or sale of assets described above, nothing
contained in this Agreement will detract from or otherwise limit Employee’s
right to participate or privilege of participation in any stock option or
purchase plan or any bonus, profit sharing, pension, group insurance,
hospitalization, or other incentive or benefit plan or arrangement

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    which may
be or become applicable to executives of the corporation or other entity
resulting from such merger or consolidation or the corporation or other entity
acquiring such assets of Employer.

     

    In the
event of any merger, consolidation or sale of assets described above, references
to Employer in this Agreement shall unless the context suggests otherwise be
deemed to include the entity resulting from such merger or consolidation or the
acquirer of such assets.

     

    10.           No
Duty to Mitigate.

     

    There
shall be no requirement on the part of Employee to seek other employment or
otherwise mitigate damages in order to be entitled to the full amount of any
payments and benefits to which Employee is entitled under this Agreement, and
the amount of such payments and benefits shall not be reduced by any
compensation or benefits received by Employee from other
employment.

     

    11.           Miscellaneous.

     

    (a)                 All
notice under this Agreement to the parties hereto shall be in writing sent by
certified or registered mail, return receipt requested, postage prepaid, or by
telegram, telex or telecopy, addressed to the respective parties at the
following addresses:

     

    
      	
              EMPLOYER:

            	
              COMFORCE
      Corporation

            
	 
      	
              415
      Crossways Park Drive

            
	 
      	
              Woodbury,
      NY 11797

            
	 
      	 
      
	
              EMPLOYEE:

            	
              Harry
      V. Maccarrone

            
	 
      	
              c/o
      COMFORCE Corporation

            
	 
      	
              415
      Crossways Park Drive

            
	 
      	
              Woodbury,
      NY 11797

            

    

    

    Any party
may, by written notice complying with the requirements of this section, specify
another or different person or address for the purpose of notification under
this Agreement.  All notices shall be deemed to have been given and
received on the next day following the sending of such telegram, telex or
telecopy, or if mailed, on the third business day following such
mailing.

     

    (b)                 If
Employer fails to timely make any payment to Employee that is required to be
made under this Agreement, the amount not timely paid shall bear interest from
the date it is due under this Agreement until paid at the per annum rate equal
to 3.0% per annum in excess of the rate published in The Wall Street Journal as
the prime lending rate, as the same may be modified from time to time. All
payments required to be made by Employer under this Agreement to Employee or his
dependents, beneficiaries, or estate will be subject to the withholding of such
amounts relating to tax and/or other payroll deductions as may be required by
law.

     

    (c)                 This
Agreement contains the entire and only agreement of the parties hereto
respecting the matters set forth in this Agreement, supersedes all prior
agreements and

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    understandings
between the parties hereto regarding the matters hereby contemplated, and may
not be changed or terminated orally, nor shall any change, termination or
attempted waiver of any of the provisions contained in this Agreement be binding
unless in writing and signed by the party against whom the same is sought to be
enforced, nor shall this section itself be waived orally.  This
Agreement may be amended only by a written instrument duly executed by or on
behalf of the parties hereto.

     

    (d)                 This
Agreement and all of its provisions, rights and obligations shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors.  This Agreement may be assigned by Employer to any person,
firm or corporation or other entity which shall become the owner of
substantially all of the assets of Employer or which shall succeed to the
business of Employer; provided, however, that in the event of any such
assignment Employer shall obtain an instrument in writing from the assignee in
which such assignee assumes the obligations of Employer under this Agreement and
shall deliver an executed copy thereof to Employee.

     

    (e)                 This
Agreement shall be construed and enforced according to, and the rights and
obligations of the parties shall be governed in all respects by, the laws of the
State of New York.  Should any action be brought to interpret or
enforce the terms of this Agreement, the prevailing party shall be awarded costs
and reasonable attorneys’ fees.

     

    (f)                 Any
controversy, dispute or claim arising out of or relating to this Agreement, or
the breach of this Agreement, shall at the option of Employee be resolved by (i)
arbitration in accordance with the then current rules of the American
Arbitration Association and all findings of fact by the arbitrators shall be
conclusive and binding on the parties or (ii) litigation before a federal or
state court of competent jurisdiction located in the State of New
York.  If Employee elects to have the matter resolved by arbitration,
the controversy or claim shall be submitted to the American Arbitration
Association through its New York, New York office, and the hearing of such
dispute will be held in New York, New York.  The decision of the
arbitrator(s) will be final and binding on all parties to the arbitration and
said decision may be filed as a final judgment in any court.

     

    (g)                 The
headings of the sections of this Agreement have been inserted for convenience of
reference only and shall in no way affect the interpretation of any of the terms
or conditions of this Agreement.

     

    (h)                 If
any provision or part thereof of this Agreement for any reason shall be validly
held by an official body to be invalid or unenforceable, the valid and
enforceable provisions or parts thereof shall continue to be given effect and
bind Employer and Employee.

     

    (i)                 Employer
shall pay Employee’s reasonable legal and professional fees and expenses
incurred in connection with the negotiation of this Agreement, no later than two
and one-half (2.5) months after the close of the year such fees or expenses are
incurred by the Employee.

     

    (j)                 No
right or interest to or in any payments or benefits under this Agreement shall
be assignable by Employee; provided, however, that this provision shall not
preclude him

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    from
designating one or more beneficiaries to receive any amount that may be payable
after his death and shall not preclude the legal representative of his estate
from assigning any right under this Agreement to the person or persons entitled
thereto under his will or, in the case of intestacy, to the person or persons
entitled thereto under the laws of intestacy applicable to his
estate.  The term “beneficiaries” as used in this Agreement shall mean
a beneficiary or beneficiary or beneficiaries so designated to receive any such
amount, or if no beneficiary has been so designated, the legal representative of
Employee’s estate.

     

    (k)                 No
right, benefit, or interest under this Agreement, shall be subject to
anticipation, alienation, sale, assignment, encumbrance, charge, pledge,
hypothecation, or set-off in respect of any claim, debt, or obligation, or to
execution, attachment, levy, or similar process, or assignment by operation of
law.  Any attempt, voluntary or involuntary, to effect any action
specified in the immediately preceding sentence shall, to the full extent
permitted by law, be null, void, and of no effect.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement on the day and
year first above mentioned.

     

    

     

    

     

    
      	
              COMFORCE
      CORPORATION

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	 
      	 
      
	 
      	 
      	 
      
	
              Its:

            	 
      	 
      
	 
      	 
      	 
      
	 	 
	 
      	 
      
	
              COMFORCE
      OPERATING, INC.

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	 
      	 
      
	 
      	 
      	 
      
	
              Its:

            	 
      	 
      
	 
      	 
      	 
      
	 	 
	 	 
	
              EMPLOYEE

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Harry
      V. Maccarrone

            	 
      

    

    
 

     

     

    15com_8k0331ex103.htm

    Exhibit
10.3

     

    

     

    COMFORCE
CORPORATION

     

    SECOND RESTATED DEFERRED
COMPENSATION PLAN

     

    AS
CONTINUED IN EFFECT PURSUANT TO THE RESOLUTIONS ADOPTED BY THE COMPANY’S STOCK
OPTION AND COMPENSATION COMMITTEE AND BOARD OF DIRECTORS EFFECTIVE MARCH 31,
2008

     

    1.           Purpose

     

    
      	
               
      

            	
              The
      purpose of the COMFORCE Corporation Deferred Compensation Plan (the
      “Plan”) is to provide deferred compensation to certain officers and key
      management employees (“Employees”) who render services to COMFORCE
      Corporation, a Delaware corporation (“COMFORCE”), and/or any of its
      subsidiaries that are 50% or
      more owned by it (collectively, together with COMFORCE, the
      “Company”).

            

    

     

    
      	
              2.

            	
              Administration

            

    

     

    
      	
               
      

            	
              The
      Plan shall be administered by the Compensation Committee (the “Committee”)
      of the Board of Directors of the Company.  Subject to the
      provisions of the Plan, the Committee shall have exclusive power to select
      the Employees to participate in the Plan and the time or times when such
      participation will commence.  The authority granted to the
      Committee by the preceding sentence will be exercised based upon
      recommendations received from the management of the
    Company.

            

    

     

    
      	
               
      

            	
              The
      Committee shall have authority to interpret the Plan, to adopt and revise
      rules and regulations relating to the Plan, to determine the conditions
      subject to which any awards may be made or payable, and to make any other
      determinations which it believes necessary or advisable for the
      administration of the Plan.  Determinations by the Committee
      shall be made by majority vote and shall be final and binding on all
      parties with respect to all matters relating to the
  Plan.

            

    

     

    
      	
              3.

            	
              Definitions

            

    

     

    
      	
               
      

            	
              As
      used in this Plan, the following terms shall have the following
      meanings:

            

    

     

    
      	
               
      

            	
              (a)

            	
              “Aggregate
      Sum” shall mean the sum of the Total Deferred Credit and the Total
      Interest Credit.

            

    

     

    
      	
               
      

            	
              (b)

            	
              “Change
      of Control” shall mean a change in ownership or effective control of
      COMFORCE, or in the ownership of a substantial portion of the assets of
      COMFORCE, as provided in regulations promulgated under Section 409A of the
      Internal Revenue Code of 1986, as amended (the
  “Code”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              “Commencement
      Date” shall mean the date set forth in the Grant
  Letter.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              “Deferred
      Credits” shall mean the deferred credits awarded to Employees under this
      Plan.

            

    

     

    
      	
               
      

            	
              (e)

            	
              “Employment
      Termination Date” means the date of the Employee’s separation from
      service, as defined in regulations promulgated under Section 409A of the
      Code and herein, if such separation from service occurs prior to any
      Change of Control.  A separation from service will occur when an
      Employee’s level of services drops to 49% or less of the average level of
      services provided by the Participant over the immediately preceding
      36-month period (or if providing services for less than 36 months, such
      lesser period).  If an Employee’s status changes from an
      employee to an independent contractor, the determination of the Employment
      Termination Date will not take into account the services provided as an
      independent contractor unless required by regulations promulgated
      under Section 409A of the Code.

            

    

     

    
      	
               
      

            	
              (f)

            	
              “Grant
      Letter” shall be as set forth in Exhibit A attached to this Plan (which
      may be modified at any time and from time to time by the Compensation
      Committee).

            

    

     

    
      	
               
      

            	
              (g)

            	
              “Interest
      Credit” shall mean the sum equivalent to interest compounded quarterly at
      the Mid-Term Monthly Applicable Federal Rate (“AFR”) as promulgated from
      time to time by the Internal Revenue Service.  Interest Credit
      shall apply beginning when the Deferred Credit is credited to the employee
      pursuant to section 4, and shall continue until the Termination
      Date.

            

    

     

    
      	
               
      

            	
              (h)

            	
              “Quarterly
      Period” shall mean each consecutive period of three (3) months commencing
      on the first day of the calendar quarter next succeeding the Commencement
      Date.

            

    

     

    
      	
               
      

            	
              (i)

            	
              “Specified
      Employee” shall have the meaning ascribed to such term under Section
      409A(a)(2)(B)(i) of the Code and regulations promulgated thereunder or as
      set forth in any resolution adopted by the Company from time to time in
      accordance with such sections of the Code and the regulations promulgated
      thereunder.

            

    

     

    
      	
               
      

            	
              (j)

            	
              “Termination
      Date” shall mean the earlier of (i) the Employment Termination Date, or
      (ii) the date of the occurrence of any Change of
  Control.

            

    

     

    
      	
               
      

            	
              (k)

            	
              “Total
      Deferred Credit” shall mean the sum of the Deferred Credits earned by the
      Employee during the period commencing with the Commencement Date and
      terminating with the Termination
Date.

            

    

     

    
      	
               
      

            	
              (l)

            	
              “Total
      Interest Credit” shall mean the sum of the Interest Credits on the Total
      Deferred Credit earned by the
Employee.

            

    

     

    
      	
              4.

            	
              Earnings of
      Credits

            

    

     

    
      	
               
      

            	
              The
      Employee shall earn one (1) Deferred Credit for each Quarterly Period
      commencing with the Quarterly Period next following the Commencement Date
      and terminating with the Termination Date.  Deferred Credit
      shall be credited to the Employee at the
  beginning

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    of the
Quarterly Period following the Quarterly Period during which the Deferred Credit
was earned.  Any initial Deferred Credit provided for in the Grant
Letter shall be credited to the Employee as of the Commencement
Date.

     

    
      	
              5.

            	
              Payment of Deferred
      Compensation

            

    

     

    
      	
              (a)

            	
              Upon
      the occurrence of the Employment Termination Date, the Aggregate Sum shall
      be determined.  This Aggregate Sum shall then be divided by the
      number of Quarterly Periods in which this Aggregate Sum was earned (the
      “Accrual Period”).  The quotient shall be multiplied by two and
      the result shall constitute an amount of each “Deferred Payment” to be
      made as provided in this Section 5.  The period (the “Payment
      Period”) over which the Deferred Payments shall be made shall be one-half
      of the duration of the Accrual
Period.

            

    

     

    
      	
               
      

            	
              By
      way of example, assume the Aggregate Sum is $50,000 and the Accrual Period
      is 20 Quarterly Periods, then the Deferred Payment shall be $5,000 and the
      Payment Period shall be 10 Quarterly
Periods.

            

    

     

    
      	
               
      

            	
              In
      the case of any Employee who is not a Specified Employee, the last day of
      the Quarterly Period commencing next following the Employment Termination
      Date occurs shall be deemed to be the “First Payment
      Date”   In the case of any Specified Employee, the last day
      of the Quarterly Period commencing six (6) months following the Employment
      Termination Date occurs shall be deemed to be the “First Payment Date” The
      date of the First Payment and the last day of each Quarterly Period
      thereafter during the Payment Period shall each be a “Payment
      Date.”

            

    

     

    
      	
               
      

            	
              Subject
      to the provisions of Sections 5(b) and 5(c), on each Payment Date until
      all Deferred Payments are made, the Company shall pay to the
      Employee:

            

    

     

    
      	
               
      

            	
              (i)  One
      Deferred Payment; and

            

    

     

    
      
        	
                 
      

              	
                (ii)
      an amount equal to interest compounded monthly at the Interest Credit,
      calculated from the First Payment Date and continuing until such Payment
      Date, on the Aggregate Sum as of the Employment Termination Date less the
      aggregate amount of all Deferred Payments theretofore
  made.

              

      

       

    

    
      	
              (b)

            	
              If
      a Change of Control shall occur prior to the Employment Termination Date,
      the Company shall make a lump sum cash payment to the Employee within 30
      days after the date of the Change of Control in an amount equal to the
      Aggregate Sum as of the date of the Change of
  Control.

            

    

     

    
      	
              (c)

            	
              If
      a Change of Control shall occur following the Employment Termination Date
      but prior to the final Payment
Date,

            

    

     

    
      	
               
      

            	
              (i)

            	
              in
      the case of any Employee who is not a Specified Employee, the Company
      shall make a lump sum cash payment to the Employee within 30 days after
      the date of the Change of Control in an amount equal to
  the

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Aggregate
Sum (as of the Employment Termination Date) less any Deferred Payments made
pursuant to Section 5(a); and

     

    
      	
               
      

            	
              (ii)

            	
              in
      the case of any Specified Employee, the Company shall make a lump sum cash
      payment to the Employee on the later of (A) the date that is six (6)
      months following the Employment Termination Date or (B) within 30 days
      after the date of the Change of Control, in an amount equal to the balance
      of the Aggregate Sum (as of the Employment Termination Date) less any
      Deferred Payments made pursuant to Section
5(a).

            

    

     

    
      	 	
              (d)

            	
              If
      the Employee is not alive at any Payment Date, the amounts payable on such
      Payment Date shall be paid instead to the Employee’s
    estate.

            

    

     

    
      	
              6.

            	
              Benefits Subject to
      Company Creditors

            

    

     

    
      	
               
      

            	
              All
      amounts due Employees under the Plan constitute a liability to the
      Company.

            

    

     

    
      	
               
      

            	
              The
      Company may, although it is not required to, segregate any funds for the
      purposes of this Plan but, in the event of such segregation, such amounts
      will remain part of the Company’s general assets and will be subject to
      the claims of the Company’s general
creditors.

            

    

     

    
      	
              7.

            	
              Withholding

            

    

     

    
      	
               
      

            	
              The
      Company or employer shall deduct from all payments under the Plan federal,
      state and local income and employment taxes, as required by applicable
      law.  Amounts deferred will be taken into account for purposes
      of any tax or withholding obligation under the Federal Insurance
      Contributions Act and Federal Unemployment Tax Act, not in the year
      distributed, but at the later of the year the services are performed or
      the year in which the rights to the amounts are no longer subject to a
      substantial risk of forfeiture, as required by Sections 3121(v)(2) and
      3306(r)(2) of the Code and the regulations thereunder.  Amounts
      required to be withheld pursuant to Sections 3121(v)(2) and 3306(r)(2) of
      the Code generally shall be withheld out of other current wages paid by
      the employer, but, alternatively, may be paid by the Participant’s
      delivery of cash or a check satisfactory to the
  Committee.

            

    

     

    
      	
              8.

            	
              Vesting

            

    

     

    
      	
               
      

            	
              Subject
      to the provisions of this agreement, the Employee shall be fully vested in
      his Aggregate Sum except that he shall forfeit all such amounts in the
      event that his termination of employment was caused by or results from (i)
      the Employee having been convicted of a felony, a crime of moral
      turpitude, or any crime involving the Company (other than pursuant to
      actions taken at the direction of or with approval of the Board of
      Directors of the Company; or (ii) a determination by the Board of
      Directors of the Company that the Employee was engaged in fraud,
      misappropriation or embezzlement.

            

    

     

    
      	
              9.

            	
              Miscellaneous
      Provisions

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              No
      Employee shall have any claim or right to become a participant under the
      Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Neither
      the Plan nor any action taken hereunder shall be construed as giving any
      Employee any right to be retained in the employ of the
      Company.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Except
      when otherwise required by the context, any masculine terminology in this
      document shall include the feminine and any singular terminology shall
      include the plural.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      right of any Employee (or beneficiary of an Employee) to any benefit or to
      any payment hereunder shall not be subject to alienation, assignment,
      garnishment, attachment, execution or levy of any
  kind.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      provisions of this Plan shall be construed, administered, and enforced in
      accordance with the laws of the State of New York, other than its laws
      respecting choice of law, to the extent not pre-empted by federal
      law.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      an Employee (or beneficiary of an Employee) entitled to receive any
      benefits hereunder is determined by the Committee to be legally incapable
      of giving valid receipt and discharge for such benefits, the benefits may
      be paid to the duly appointed personal representative of such
      person.

            

    

     

    
      	
              10.

            	
              Claims
      Processes

            

    

     

    
      	
               
      

            	
              In
      the event that an Employee (or the beneficiary of an Employee) does not
      receive any Plan benefit that is claimed, such person shall be entitled to
      consideration and review as provided herein.  Such consideration
      and review shall be conducted in a manner designed to comply with Section
      503 of the Employee Retirement Income Security Act of
  1974.

            

    

     

    
      	
               
      

            	
              Upon
      receipt of any written claim for benefits, the Committee shall be notified
      and shall give due consideration to the claim presented.  If the
      claim is denied to any extent by the Committee, the Committee shall
      furnish the claimant with a written notice setting forth (in a manner
      calculated to be understood by the
claimant):

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      specific reason or reasons for denial of the
  claim;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      specific reference to the Plan provisions on which the denial is
      based;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      description of any additional material or information necessary for the
      claimant to perfect the claim and an explanation of why such material or
      information is necessary; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              an
      explanation of the provisions of this
section.

            

    

     

    
      	
               
      

            	
              A
      claimant who has a claim denied may appeal to the Committee for
      reconsideration of that claim.  A request for reconsideration
      under this section must be filed by written notice within sixty (60) days
      after receipt by the claimant of the notice of
  denial.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Upon
      receipt of an appeal, the Committee shall promptly take action to give due
      consideration to the appeal.  Such consideration may include a
      hearing of the parties involved, if the Committee feels such a hearing is
      necessary.  In preparing for this appeal, the claimant shall be
      given the right to review pertinent documents and the right to submit in
      writing a statement of issues and comments.  After consideration
      of the merits of the appeal, the Committee shall issue a written decision
      which shall be binding on all parties.  The decision shall be
      written in a manner calculated to be understood by the claimant, and shall
      specifically state its reasons and pertinent Plan provisions on which it
      relies.  The Committee’s decision shall be issued within sixty
      (60) days after the appeal is filed, except that if a hearing is held, the
      decision may be issued within one hundred twenty (120) days after the
      appeal is filed.

            

    

     

    
      	
               
      

            	
              The
      Committee may designate one or more of its members or any other person of
      its choosing to make any determination otherwise required under this
      section.

            

    

     

    
      	
              11.

            	
              Amendment of the
      Plan

            

    

     

    
      	
               
      

            	
              The
      Board of Directors of the Company may alter or amend the Plan from time to
      time and at any time, or terminate the Plan at any
  time.

            

    

     

    
      	
               
      

            	
              No
      amendment to the Plan or its termination may alter, impair, or reduce the
      “Aggregate Sum” accrued for any Employee up to the time of such amendment
      or termination, nor will any amendment or plan termination allow payments
      to be made in a manner so as to be an impermissible acceleration under
      section 409A of the Code.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Exhibit
A

     

    Dear
_______________________:

     

    You have
been hereby chosen to participate in the Comforce Corporation Deferred
Compensation Plan (the “Plan”), a copy of which is attached to this
letter.

     

    Please
note that: Commencement Date shall
be______________________________.

     

    Deferred
Credit shall be an amount equal to one and one half percent (1.5%) of your total
wages as defined in Section 3401(a) of the Internal Revenue Code of 1986, as
amended, based upon each Quarterly Period as defined in the Plan commencing with
the next succeeding Quarterly Period. Total wages shall not include (i)
reimbursements or other expense allowances, (ii) fringe benefits, (iii) moving
expenses, (iv) deferred compensation paid or accrued and, (v) welfare
benefits.

     

    In
addition you shall be awarded an initial Deferred Credit in an amount equal to
$__________.

     

    If the
above is acceptable to you, please sign one copy of this letter and return it to
us.

     

    

     

    
      	 
      	
              Very
      truly yours,

            
	 	 
	 
      	
              COMFORCE
      Corporation

            
	 
      	 
      	 
      
	 
      	
              By

            	 
      
	
              The
      above is acceptable to me:

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

     

     

     

    7

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