Document:

exv10w18

 

Exhibit 10.18

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) dated as of July 15, 2006
between Global Employment Solutions, Inc., a Colorado corporation (the “Company”), and
Steven Pennington (“Employee”).

     WHEREAS, Employee and GES are parties to a Non-Disclosure, Non-Compensation, Arbitration and
Employment Agreement, dated April 4, 2001 (the “Old Employment Agreement”); and

     WHEREAS, GES underwent a recapitalization on March 31, 2006 resulting in GES becoming a
wholly-owned subsidiary of Global Employment Holdings, Inc., a Delaware company
(“Holdings”); and

     WHEREAS, the Company and Employee desire to amend and restate the Old Employment Agreement,
effective as of March 31, 2006, providing for the continued employment of Employee as President of
the Company’s Staffing Services Division, upon the terms and subject to the conditions set forth
herein.

     NOW, THEREFORE, in consideration of the mutual undertakings contained herein, the parties
agree as follows:

ARTICLE 1. EMPLOYMENT

          1.1 Employment. The Company agrees to employ and Employee hereby accepts employment
with the Company, upon the terms and conditions set forth in this Agreement for the period
beginning on March 31, 2006 (the “Effective Date”) and ending as provided in Section 1.4
(the “Employment Period”).

          1.2 Position and Duties.

               (a) During the Employment Period, Employee shall serve as President of the Company’s Staffing
Services Division of GES. Employee shall report directly to the Chief Executive Officer of the
Company.

               (b) Employee shall be responsible for the operation and performance of the Company’s Staffing
Services Division and shall have the responsibilities and carry out the customary functions of a
division president.

               (c) Employee shall devote his best efforts and his full business time and attention (except
for reasonable amounts of time devoted to civic and charitable causes, permitted vacation periods
and reasonable periods of illness or other incapacity) to the business and affairs of the Company
and its Subsidiaries. Employee shall perform his duties and responsibilities to the best of his
abilities in a diligent, trustworthy, businesslike and efficient manner.

 

 

          1.3 Salary, Bonus, Options and Benefits.

     Section 1.01 (a) During the Employment Period, Employee’s base salary (the “Base
Salary”) shall be $200,000 per annum, which salary shall be payable in regular installments in
accordance with the Company’s general payroll practices. The Base Salary shall increase to
$203,000 per annum as of January 1, 2007. In addition, Employee shall be eligible to participate
in the bonus and incentive plans commensurate with Employee’s position. The Compensation Committee
(the “Compensation Committee”) of the Company’s Board of Directors (the “Board”)
shall annually review Employee’s Base Salary and bonus.

               (b) During the Employment Period, Employee shall be entitled to participate in all of the
Company’s employee benefit programs for which similarly situated employees of the Company and its
Subsidiaries are generally eligible. Employee shall be entitled to three weeks paid vacation per
year; provided, however, that only two weeks of any unused vacation may be carried forward to the
next succeeding year.

               (c) At the end of each fiscal year during the Employment Period, Employee shall be eligible to
receive a bonus based on (i) Holdings’ achieving annual EBITDA target amounts and (ii) performance
criteria established annually by the Compensation Committee. Promptly after the Company’s receipt
of an annual audit generated by the Company’s accountants, but in no case later than 120 days after
the Company’s fiscal year-end, the Company shall notify Employee of the bonus earned in the
preceding fiscal year. Employee must be employed with the Company or its subsidiaries as of the
end of each fiscal year to be eligible for the bonus. For purposes of this Section 1.3(c), for any
year, “EBITDA” shall be calculated as defined in Holdings’ Senior Secured Convertible Notes
issued on March 31, 2006, (i) plus, to the extent not already added back, all transaction costs
associated with the Company’s 2006 recapitalization that were paid in such year, (iii) plus or
minus any revenues or expenses recorded with respect to the warrants issued by Holdings on March
31, 2006, (iv) plus or minus any revenues or expenses that are unrelated to the Company’s
operations prior to the Effective Date and (v) minus the bonus to be paid in such year.

               (d) The Company shall reimburse Employee for all reasonable out-of-pocket expenses incurred by
him in the course of performing his duties under this Agreement upon completion of an expense
report in accordance with the Company’s and its Subsidiaries’ reimbursement, reporting and
documentation policies in effect from time to time with respect to travel, entertainment and other
business expenses.

          1.4 Term.

               (a) This Agreement shall be effective for a term commencing on the date hereof and, ending on
the earlier to occur of (i) the date of Employee’s death or Disability (as determined by the
Board), (ii) the date determined by the Board for Cause, (iii) the date determined by the Board
without Cause, or (iv) the date of voluntary resignation by Employee.

               (b) The Company shall have the right to terminate the Employment Period at any time upon the
death or Disability of Employee (as determined by the Board). In the event Employee’s employment
hereunder is terminated pursuant to this Section 1.4(b), all of Employee’s
rights to his Base Salary and Benefits shall immediately terminate as of the date of such
termination,

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except that Employee (or, in the event that Employee’s employment hereunder is
terminated due to Employee’s death, Employee’s heirs, personal representative or estate) shall be
entitled to any earned and unpaid portion of his Base Salary , a pro rata portion of any bonus
earned for the year in which such termination occurs and accrued Benefits up to the date of
termination (less all deductions or offsets for amounts owed by Employee to the Company or its
Affiliates (including but not limited to any unearned salary advances or outstanding loans)).

               (c) The Company shall have the right to terminate the Employment Period at any time for
Cause. Upon such termination, all of Employee’s rights to his Base Salary and Benefits shall
immediately terminate as of such date of termination except that Employee shall be entitled to any
earned and unpaid portion of his Base Salary and accrued Benefits up to the date of termination
(less all deductions or offsets for amounts owed by Employee to the Company or its Affiliates
(including but not limited to any unearned salary advances or outstanding loans)).

               (d) If the Employment Period is terminated without Cause, Employee shall be entitled to
continue to receive for one year (i) health insurance benefits under the Company’s health insurance
plan; provided, however, that such benefits shall discontinue if Employee is otherwise eligible for
health insurance benefits, (ii) an amount equal to the Base Salary, payable in accordance with the
Company’s regular payroll practice, and (iii) an amount equal to the bonus paid for the previous
fiscal year, payable within five days of the date of termination. If a Sale of the Company occurs
and Employee either (i) is terminated by the purchaser substantially simultaneously with the Sale
of the Company or (ii) voluntarily terminates his employment because the purchaser offers
employment on terms that are not substantially the same or more favorable than the terms provided
in this Agreement, Employee shall be entitled to receive (x) following termination, 18 months
health insurance benefits under the Company’s health insurance plan, provided, however, that such
benefits shall discontinue if Employee is otherwise eligible for health insurance employed, (y) an
amount equal to the Base Salary, payable in accordance with the Company’s regular payroll practice,
and (z) an amount equal to the bonus paid for the previous fiscal year, payable within five days of
the date of termination. If a Sale of the Company occurs and Employee is offered employment
substantially on the same or more favorable terms as this Agreement, no payments under this
Agreement shall be owing to Employee other than for accrued and unpaid Base Salary through the date
of the Sale of the Company. Employee hereby agrees that no severance compensation shall be payable
in the event Employee’s employment is terminated under Section 1.4(a)(i), (ii), (iv), or the
expiration of any mutually agreed upon extensions of this Agreement, and Employee waives any claim
for severance or other compensation. The payment of any severance compensation under this Section
1.4(d) is conditioned upon Employee entering into the Company’s standard form release agreement, a
copy of which is attached hereto. If Employee is terminated other than for Cause, the Employee
shall be released from the provisions of Section 5 (“Employee Lockup”) of the
Noncompetition Agreement entered into as of March 31, 2006 by and between Holdings, the Company and
Employee.

               (e) Except as expressly set forth in this Section 1.4, all compensation and other benefits
shall cease to accrue upon termination of the Employment Period.

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               1.5 Confidentiality.

               (a) Employee recognizes and acknowledges that the Trade Secrets and Confidential Information
obtained by him while employed by the Company and its Subsidiaries concerning the business or
affairs of the Company, its Subsidiaries or any of their customers are the property of the Company
and its Subsidiaries.

               (b) Employee recognizes and acknowledges that the business design, functionality and business
operation of the computer systems and software which the Company owns, plans or develops, or
acquires from third parties, whether for its own use or for use by its customers, are confidential
in nature and shall be deemed to be Trade Secrets or Confidential Information, proprietary to and
the property of the Company. Employee further recognizes and acknowledges that in order to enable
the Company to perform services for its customers, such customers may furnish to the Company Trade
Secrets or Confidential Information concerning the customers’ business affairs, property, methods
of operation or other data and that the good-will afforded to the Company depends upon, among other
things, the Company and the Employee’s keeping such services and information confidential.

               (c) Employee shall not use for his own account or disclose to any unauthorized person any
Trade Secret or Confidential Information of the Company, its Subsidiaries or its customers during
the term of Employee’s employment and thereafter, whether or not the Trade Secret or Confidential
Information is in tangible or intangible forms, except (i) as required to perform duties for the
Company, (ii) after receiving the prior written consent of the Company, or (iii) to the extent that
such Trade Secret or Confidential Information becomes generally available to and available for use
by the public, other than as a result of Employee’s breach of his obligations hereunder or the
breach of a third party of its confidentiality or non-disclosure obligations. Employee shall take
all necessary precautions against disclosure of such information to third parties during and after
the term of this Agreement.

               (d) Employee shall keep in strictest confidence, both during the Employee’s employment and
subsequent to termination of employment, and shall not, during the Employment Period or thereafter,
disclose or divulge to any unauthorized person, firm or corporation, or use directly or indirectly,
for the Employee’s own benefit or the benefit of others, any Trade Secret or Confidential
Information including, without limitation, information as to sources of, and arrangements for, the
Company’s business plan(s), use of hardware or software supplied in any way to the Company or the
Company’s customers, submission and proposal procedures, customers or contact lists.

               (e) Upon request of the Company and, in any event, upon the termination of the Employment
Period, the Employee shall return to and leave with the Company all computer programs,
documentation, memoranda, notes, records, drawings, manuals, flow sheets or other documents
pertaining to the Company’s business or Employee’s employment (including all copies thereof). The
Employee shall also leave with the Company all other materials involving, containing or
incorporating any Trade Secrets or Confidential Information of the Company, its Subsidiaries or
their customers.

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               (f) Notwithstanding the foregoing, in the event Employee becomes legally compelled to disclose
Confidential Information pursuant to judicial or administrative subpoena or process or other legal
obligation, Employee may make such disclosure only to the extent required, in the opinion of
counsel for Employee, to comply with such subpoena, process or other obligation. Employee shall,
as promptly as possible and in any event prior to the making of such disclosure, notify the Company
of any such subpoena, process or obligation and shall cooperate with the Company in seeking a
protective order or other means of protecting the confidentiality of the Confidential Information.

               1.6 Ownership of Inventions, Patents, Etc. Employee agrees that all copyrights,
works, inventions, innovations, improvements, developments, methods, designs, analyses, drawings,
reports, and all similar or related information which relate to the actual or anticipated business,
research and development or existing or anticipated future products or services of the Company or
its Subsidiaries and which are conceived, developed or made by Employee while employed by the
Company (“Work Product”) shall be the sole and complete property of the Company and that
all other provisions of this Agreement shall fully apply to all Work Products. Employee further
agrees that all Word Products made and works created by Employee shall be considered “works made
for hire” pursuant to the U.S. Federal Copyright Act of 1976, as amended. Employee shall promptly
disclose such Work Product to the Board, perform all actions reasonably requested by the Company
(whether during or after the Employment Period) to establish and confirm such ownership at the
Company’s expense (including, without limitation, assignments, consents, powers of attorney and
other instruments) and execute patent and copyright applications and any other instruments, deemed
necessary by the Company for the prosecution of such patent applications or the acquisition of
letters patent or registration of copyrights in the United States and foreign countries based on
any Work Product created by Employee.

               1.7 Non-Compete; Non-Solicitation. Employee has entered into a Noncompetition
Agreement with the Company, dated as of March 31, 2006 (the “Noncompetition Agreement”),
which is incorporated by reference herein.

               1.8 Avoidance of Conflict of Interest. While employed by the Company, the Employee
shall not engage in any other business activity which conflicts with Employee’s duties to the
Company. Under no circumstances shall the Employee work for any competitor or have any financial
interest in any competitor of the Company; provided, however, that this Agreement does not prohibit
investment of a reasonable part of Employee’s assets in the stock or securities of any competitor
whose stock or securities are publicly traded on a U.S. exchange.

ARTICLE 2. DEFINITIONS

               As used in this Agreement, the following terms shall have the definitions set forth below:

               “Affiliate” of the Company means any person or entity directly or indirectly
controlling, controlled by or under common control with the Company, whether by ownership of voting
securities, by contract or otherwise. Any officer or manager of the Company shall be deemed an
Affiliate of the Company.

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               “Confidential Information” shall mean any data, observations or information, other
than trade secrets, that is material, competitively sensitive, and not generally available to the
public, other than as a result of a breach of a confidentiality obligation, including, but not
limited to, training manuals, product development plans, marketing strategies and internal
performance statistics.

               “Cause” means (i) a material breach of this Agreement by Employee which, to the extent
capable of cure, is not remedied within 30 days of the written notice thereof, (ii) Employee’s
willful and repeated failure to comply with the lawful directives of the Board which, to the extent
capable of cure, is not remedied within 30 days of the written notice thereof, (iii) gross
negligence or willful misconduct by Employee in the performance of his duties hereunder, or (iv)
the commission by Employee of theft or embezzlement of Company property or any other act (including
but not limited to a felony or a crime involving moral turpitude) that is injurious in any
significant respect to the property, operations, business or reputation of the Company or its
Subsidiaries, as determined in good faith by the Board.

               “Disability” means Employee’s physical or mental illness, disability or incapacity
that prevents Employee from substantially performing his normal duties hereunder for 6 months or
more during any 12-month period, determined in good faith by the Board.

               “Sale of the Company” means (i) the acquisition of a majority or more of the
outstanding voting securities of Holdings or GES by any person or “group” (as that term is used in
Regulation 13D under the Securities Exchange Act of 1934), (ii) the sale of substantially all of
the assets of Holdings or GES or (iii) the merger of Holdings or GES into another entity, other
than an affiliate, by which Holdings or GES is not the surviving entity; provided, however, that
any transaction with Holdings’ stockholders as of the Effective Date and their respective
affiliates or Subsidiaries shall not be deemed a Sale of the Company.

               “Subsidiary” of an entity shall mean any corporation, limited liability company,
limited partnership or other business organization of which the securities having a majority of the
normal voting power in electing the board of directors, board of managers, general partner or
similar governing body of such entity are, at the time of determination, owned by such entity
directly or indirectly through one or more Subsidiaries.

               “Trade Secret” shall mean the whole or any portion or phase of any technical
information, design, process, procedure, formula, improvement, confidential business or financial
information, listing of names, addresses, or telephone numbers or other information which is secret
and of value relating to any business or profession.

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ARTICLE 3. GENERAL PROVISIONS

               3.1 Enforcement. If, at the time of enforcement of Sections 1.5, 1.6 or 1.7, a court
holds that the restrictions stated herein are unreasonable under the circumstances then existing,
the parties hereto agree that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area. Because Employee’s
services are unique and because Employee has access to Confidential Information and Work Product,
the parties hereto agree that money damages would be an inadequate remedy for any breach of this
Agreement. In the event of a breach or threatened breach of this Agreement, the Company, its
Subsidiaries and their respective successors or assigns may, in addition to other rights and
remedies existing in their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent any violation of, the
provisions hereof (without posting a bond or other security). In the event of Employee’s breach of
Section 1.6, the term of the noncompete period provided for in the Noncompetition Agreement shall
be extended by a period equal to the length of such breach.

               3.2 Survival. Sections 1.5, 1.6 and 1.7 shall survive and continue in full force and
effect in accordance with their terms notwithstanding any termination of the Employment Period.

               3.3 Notices. All notices or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be deemed to have been
given when delivered personally, one business day following when sent via a nationally recognized
overnight courier, or when sent via facsimile confirmed in writing to the recipient. Such notices
and other communications shall be sent to the addresses indicated below:

To the Company:

Global Employment Holdings, Inc.

10375 Park Meadows Drive, Suite 375

Lone Tree, CO 80124

Attention: Howard Brill

Fax: (303) 216-9533

with a copy to:

Brownstein Hyatt & Farber, P.C.

410 Seventeenth Street, 22nd Floor

Denver, CO 80202

Attention: Jeff Knetsch

Fax: (303) 223-1111

To Employee:

at the address set forth on the Company’s records

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party.

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               3.4 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

               3.5 Entire Agreement. This Agreement and those documents expressly referred to herein
embody the complete agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

               3.6 Amendments and Waivers. Any provision of this Agreement may be amended or waived
only with the prior written consent of the Company and Employee.

               3.7 Governing Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Colorado, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Colorado

               3.8 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

               3.9 Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement or of any term
or provision hereof.

               3.10 Binding Nature. This Agreement shall inure to the benefit of and be binding
upon, the Company and its subsidiaries and affiliates, together with their successors and assigns,
and Employee, together with Employee’s executor, administrator, personal representative, heirs and
legatees.

               3.11 No Waiver. The failure of the Company to terminate this Agreement for the breach
of any condition or covenant herein by the Employee shall not affect the Company’s right to
terminate for subsequent breaches of the same or other conditions or covenants. The failure of
either party to enforce at any time or for any period of time any of the provisions of this
Agreement shall not be construed as a waiver of such provision or the right of the party thereafter
to enforce each and every such provision.

               3.12 Original Agreement. This Agreement amends and restates in its entirety the Old
Employment Agreement as of the Effective Date. On the Effective Date, the Old Employment Agreement shall automatically terminate and be of no further force and effect. This Agreement
further supercedes any and all prior agreements between Employee and the Company or the

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Company’s
predecessors in interest with respect to Employee’s employment, and any such prior agreements shall
be void and of no further force and effect as of the Effective Date.

               3.13 Arbitration. Subject to the exceptions set forth below, Employee agrees that any
and all claims or disputes that Employee has with the Company, or any of its employees, which arise
out of Employee’s employment or under the terms thereof, shall be resolved through final and
binding arbitration, as specified herein. This shall include, without limitation, disputes
relating to this Agreement, Employee’s employment with the Company or the termination thereof,
claims for breach of contract or breach of the covenant of good faith and fair dealing, and any
claims of discrimination or other claims under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities Act, the Employee Retirement
Income Securities Act, the Racketeer Influenced and Corrupt Organizations Act, or any other
federal, state or local law or regulation now in existence or hereinafter enacted and as amended
from time to time concerning in any way the subject of Employee’s employment with the Company or
its termination. The only claims or disputes not covered by this paragraph are disputes related to
(i) claims for benefits under the unemployment insurance or workers’ compensation laws, and (ii)
issues affecting the validity, infringement or enforceability of any Trade Secret or patent rights
held or sought by the Company or which the Company could otherwise seek; in both of the foregoing
cases such claims or disputes shall not be subject to arbitration and will be resolved pursuant to
applicable law. Binding arbitration will be conducted in Denver, Colorado in accordance with the
rules and regulations of the American Arbitration Association (“AAA”), by an arbitrator
selected from the AAA Commercial Disputes Panel with a minimum of five years experience in
employment law. If, at the time the dispute in question arose, Employee lives and works more than
100 miles from Denver, Colorado, then Employee has the option of requesting the arbitration take
place in the county in which the Company has an office that is nearest to Employee’s place of
residency. Employee understands and agrees that the arbitration shall be instead of any jury trial
and that the arbitrator’s decision shall be final and binding to the fullest extent permitted by
law and enforceable by any court having jurisdiction thereof.

               3.14 Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

* * * * *

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               IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Howard Brill	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Howard Brill	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Steven Pennington	 	 
	 

	 	 
	 	 	Steven Pennington	 	 

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ATTACHMENT

Form of Release Agreement

 

 

SEPARATION AGREEMENT AND GENERAL RELEASE

     This SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”) is between Global
Employment Holdings, Inc, a Delaware corporation (“Holdings”), Global Employment Solutions,
Inc., a Colorado corporation (“GES,” and together with Holdings, the “Company”),
and _________ (“Employee”), whose mailing address is ____________.

     WHEREAS, the Company and Employee agreed to terminate the employment relationship between them
(the “Separation”) on ____________ (“Separation Date”);

     WHEREAS, the parties agree to resolve all actual and potential disputes between them arising
prior to the date of the Agreement; and

     WHEREAS, the parties desire to enter into this Agreement in order to set forth their
respective rights and obligations in connection with the Separation.

     NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements contained
herein and for other good and valuable consideration, the parties agree as follows:

     1. EFFECTIVE DATE. The effective date of this Agreement is the date that is seven days after
the date that Employee executes this Agreement (“Effective Date”), unless earlier revoked
pursuant to Section 17.

     2. RESIGNATION. Employee hereby resigns from any and all positions with the Company and its
subsidiaries.

     3. PAYMENTS TO EMPLOYEE. Employee acknowledges that on or before the Effective Date, the
Company paid Employee all wages due and owing through the Separation Date. [The Company will pay
to Employee a severance payment in the amount of $_________, less all authorized deductions and
withholdings for applicable federal, state and local taxes. Such severance shall be paid on
_________. No other amounts except those specified in this Section 3 will be paid to Employee.]

     4. BENEFITS. Employee shall be eligible for ____________. Employee acknowledges that Employee
shall not be entitled to any other benefits from the Company whatsoever in any form.

     5. DISPARAGING STATEMENTS. Employee agrees that Employee will not make false, disparaging or
misleading statements to any person or entity regarding the Company or any of its officers,
directors or employees.

     6. RELEASE.

     6.1 Employee hereby releases and forever discharges the Company, and the Company’s affiliates,
subsidiaries, parents, successors, assigns and other affiliated

 

 

entities, past present and future, and each of them, a well as its and their officers,
directors, attorneys, managers, agents and employees (“Releasees”) from all claims, known
or unknown, which Employee ever had or now has or may hereafter claim to have had as of or prior to
the date of this Agreement with respect to the Separation or Employee’s employment and any other
action, event or matter. These claims may include, but are not limited to, claims based on (a)
Employee’s rights under the [NAME OF EQUITY COMPENSATION PLAN]; (b) the Age Discrimination in
Employment Act of 1967, 29 U.S.C. 621 et seq., as amended; The Older Workers Benefit Protection
Act, Pub. Law 101-433, 104 Stat. 978 (1990); Title VII of the Civil Rights Act of 1964, 42 U.S.C. §
2000-e, as amended; the Americans with Disabilities Act; the Civil Rights Acts of 1866, 1871, and
1991; the Family and Medical Leave Act; the Equal Pay Act of 1963; the Employee Retirement and
Income Security Act of 1974; The Occupational Safety and Health Act, as amended; The Fair Labor
Standards Act, as amended; the Consolidated Omnibus Budget Reconciliation Act of 1985; (c) any and
all claims under Colorado or any other state’s statutory or decisional law, including, but not
limited to, the Colorado Anti-Discrimination Act, pertaining to employment discrimination or
harassment, wrongful discharge or breach of public policy; (d) state, federal or common law
relation to breach of express or implied contract, wrongful termination, employment discrimination
or harassment, emotional distress, privacy rights, fraud or misrepresentation, defamation,
negligence, infliction of emotional distress, any intentional torts, and outrageous conduct; and
(e) any and all claims for any of the following: money damages, including actual, compensatory,
liquidated or punitive damages, equitable relief such as reinstatement or injunctive relief, front
or back pay, wages, benefits, sick pay, vacation pay, costs, interest, expenses, attorneys’ fees,
or any other remedies

     6.2 Employee further agrees not to file, pursue or participate in any claims, charges, actions
or proceedings of any kind in any forum against any of the Releasees with respect to any matter
arising out of or in connection with the employment or Separation of Employee (other than pursuing
a claim for unemployment compensation benefits to which Employee may be entitled).

     7. NO ADMISSIONS. Nothing in this Agreement, including the payment of any sums by the
Company, constitutes an admission by the Company of any legal wrong in connection with the
employment or Separation of Employee.

     8. CONFIDENTIALITY. Except as required by an order of a court of law, the parties agree not
to disclose or publicize the terms of this Agreement, or to assist others to disclose or publicize
the terms of this Agreement. This non-disclosure obligation applies to the named parties, their
attorneys, agents, officials, managers, and spouses. Notwithstanding the foregoing, Employee
understands that in order to process payment of the sums in section 3, and to otherwise implement
the terms of this Agreement, certain terms of this Agreement must be disclosed to Company personnel
with a need to know.

     9. AGREEMENT UNDERSTOOD. Employee is relying on Employee’s own judgment and on the advice of
Employee’s attorneys, if Employee has chosen to

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engage counsel, and not upon any recommendations by the Company or its directors, officers,
employees, agents, attorneys, or other representatives. Employee agrees that this agreement shall
not be construed against either party on the grounds of authorship.

     10. GOVERNING LAW. This Agreement shall be construed and enforced in accordance with, and the
validity and performance hereof shall be governed by, the laws of the State of Colorado, without
giving effect to conflicts of laws principles.

     11. SEVERABILITY. In the event that any one or more of the provisions of this Agreement shall
for any reason be held to be invalid or unenforceable, the remaining provisions of this Agreement
shall be unimpaired, and shall remain in effect and be binding upon the parties.

     12. AMENDMENTS. No amendment, waiver, change or modification of any of the terms, provisions
or conditions of this Agreement shall be effective unless made in writing and signed or initialed
by the parties or by their duly authorized agents. Waiver of any provision of this Agreement shall
not be deemed a waiver of future compliance therewith and such provision shall remain in full force
and effect.

     13. SUCCESSORS AND TRANSFEREES. This Agreement shall be binding upon and inure to the benefit
of each of the parties’ successors, assigns, heirs, and transferees.

     14. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute one and the some
instrument, and in making proof hereof, it shall not be necessary to produce or account for more
than on such counterpart.

     15. COSTS, EXPENSES, AND ATTORNEY’S FEES. In the event any claim, default or violation is
asserted by a party to this Agreement regarding any of the terms or conditions or this Agreement, a
party may enforce this instrument by appropriate action, and should any of the parties prevail in
such litigation, that prevailing party shall recover all costs, expenses, and reasonable attorneys’
fees incurred in such litigation.

     16. FINAL AGREEMENT. This Agreement sets forth the entire understanding of the parties and
supersedes any and all prior written or oral agreements, with the exception of any applicable
non-disclosure agreement, arrangements or understandings related to the subject matter described
herein, and no written or oral representation, promise, inducement or statement of intention has
been made by either party which is not embodied herein.

     17. ACKNOWLEDGMENT UNDER THE ADEA. The parties acknowledge that this is an important legal
document. Employee is advised to consult with an attorney before signing this Agreement. Employee
is also advised that Employee has 21 days after receiving this Agreement to consider it. If
Employee chooses to agree to the terms of this Agreement, Employee must sign and return the
Agreement to __________________ at the address below within 21 days of

3

 

Employee’s receipt of this Agreement. If Employee signs the Agreement, Employee will then
have the right to revoke this Agreement by delivering written revocation to __________________, but
such notice must be received by ____________ within seven days after the date Employee signed
the Agreement. The signed Agreement or any notice of revocation must be delivered by an overnight
delivery service or by certified mail, return receipt requested, to:

Howard Brill

Global Employment Holdings, Inc.

10375 Park Meadows Drive, Suite 375

Lone Tree, CO 80124

If this Agreement is not signed and delivered to Howard Brill within the 21 day period, or if it is
revoked within the seven day period, neither Employee nor the Company will have any rights or
obligations under this Agreement. This Agreement is binding upon and shall inure to the benefit of
the Company, Employee and the Released Entities. By signing this Agreement, the parties represent
that they have read and understand it, that they have discussed or had an opportunity to discuss it
voluntarily with their respective attorneys, and that they enter into it knowingly and voluntarily.

DATED as of _______, ______

	 	 	 	 	 	 	 
	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	Howard Brill

Chief Executive Officer and President
	 	 	 	Howard Brill

Chief Executive Officer and President
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	[NAME OF EMPLOYEE]	 	 	 	 

4exv10w22

 

EXHIBIT 10.22

PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT, dated as of March 31, 2006, is made and given by [PLEDGOR] (the
“Pledgor”) to WELLS FARGO BANK, N.A. (the “Secured Party”), acting through its WELLS FARGO BUSINESS
CREDIT operating division.

RECITALS

     A. The Pledgor, other borrowers and the Secured Party have entered into a Credit and Security
Agreement dated as of May 7, 2002 (as the same has been and may hereafter be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) pursuant to which the
Secured Party has agreed to extend to the Pledgor certain credit accommodations.

     B. The Pledgor is the owner of the shares (the “Pledged Shares”) of stock described in Part I
of Schedule I hereto issued by the corporations named therein and of the indebtedness (together
with those items listed in Section 2(e), the “Pledged Debt”) described in Part II of Schedule I and
issued by the obligors named therein. The Pledged Debt is secured as described in said Part II of
Schedule I.

     C. The Secured Party has required that this Agreement be executed and delivered by the
Pledgor.

     D. The Pledgor finds it advantageous, desirable and in the best interests of the Pledgor to
comply with the requirement that this Agreement be executed and delivered to the Secured Party.

     NOW, THEREFORE, in consideration of the premises and in order to induce the Secured Party to
enter into the Credit Agreement and to extend credit accommodations to the Pledgor thereunder, the
Pledgor hereby agrees with the Secured Party for the Secured Party’s benefit as follows:

     1. Defined Terms.

     (a) As used in this Agreement, the following terms shall have the meanings indicated:

     “Collateral” shall have the meaning given to such term in Section 2.

     “Event of Default” shall have the meaning given to such term in Section 11.

     “Lien” shall mean any security interest, mortgage, pledge, lien, charge,
encumbrance, title retention agreement or analogous instrument or device (including the
interest of the lessors under capitalized leases), in, of or on any assets or properties of
the Person referred to.

 

 

     “Obligations” shall mean (a) all indebtedness, liabilities and obligations of
the Pledgor to the Secured Party of every kind, nature or description under the Credit
Agreement, including the Pledgor’s obligation on any promissory note or notes under the
Credit Agreement and any note or notes hereafter issued in substitution or replacement
thereof, (b) all liabilities of the Pledgor under this Agreement, (c) any and all other
liabilities and obligations of the Pledgor to the Secured Party of every kind, nature and
description, whether direct or indirect or hereafter acquired by the Secured Party from any
Person, absolute or contingent, regardless of how such liabilities arise or by what
agreement or instrument they may be evidenced, and in all of the foregoing cases whether due
or to become due, and whether now existing or hereafter arising or incurred.

     “Person” shall mean any individual, corporation, partnership, joint venture,
limited liability company, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “Pledged Debt” shall have the meaning given to such term in Recital B above.

     “Pledged Shares” shall have the meaning given to such term in Recital B
above.

     “Related Collateral” shall have the meaning given to such term in Section 2.

     “Security Interest” shall have the meaning given to such term in Section 2.

     (b) Terms Defined in Uniform Commercial Code. All other terms used in this
Agreement that are not specifically defined herein or the definitions of which are not
incorporated herein by reference shall have the meaning assigned to such terms in Revised
Article 9 of the Uniform Commercial Code as adopted in the State of Colorado.

     (c) Singular/Plural, Etc. Unless the context of this Agreement otherwise
clearly requires, references to the plural include the singular, the singular, the plural
and “or” has the inclusive meaning represented by the phrase “and/or.” The words “
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The words “hereof,” “herein,” “hereunder,” and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement. References to Sections are references to Sections in this Pledge Agreement
unless otherwise provided.

     2. Pledge. As security for the payment and performance of all of the Obligations, the
Pledgor hereby pledges to the Secured Party and grants to the Secured Party a security interest
(the “Security Interest”) in the following, including any securities account containing a
securities entitlement with respect to the following (the “Collateral”):

     (a) The Pledged Shares and the certificates representing the Pledged Shares, and all
future, issued and outstanding shares of capital stock, or other equity or investment
securities of, or partnership, membership, or joint venture interests in, each subsidiary,
whether now owned or hereafter acquired by the Pledgor and whether or not evidenced or

 

 

represented by any stock certificate, certificated security or other instrument,
together with the certificates representing such equity interests, all options and other
rights, contractual or otherwise, in respect thereof, and all dividends, cash, instruments
and other property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the foregoing.

     (b) All additional shares of stock of any issuer of the Pledged Shares from time to
time acquired by the Pledgor in any manner, and the certificates representing such
additional shares, and all dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of
such shares.

     (c) All investment property, financial assets, securities, capital stock, other equity
interests, stock options and commodity contracts of the Pledgor, all notes, debentures,
bonds, promissory notes or other evidences of indebtedness payable or owing to the Pledgor,
and all other assets now or hereafter received or receivable with respect to the foregoing.

     (d) The Pledged Debt set forth on Schedule I and the instruments evidencing the Pledged
Debt set forth on Schedule I, and all interest, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Pledged Debt set forth on Schedule I.

     (e) All additional debt evidenced by any note, bond, debenture or like instrument from
time to time issued by any Person payable or owing to the Pledgor, which additional debt is
owed to or acquired by the Pledgor, and the instruments evidencing such debt, and all
interest, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any of all of such debt.

     (f) Any and all collateral security (the “Related Collateral”) now or hereafter
securing all or any items of the Pledged Debt (including after-acquired security), and
agreements granting such security, and all rights, remedies, powers and privileges of the
Pledgor under all of the foregoing.

     (g) All securities entitlements of the Pledgor in any and all of the foregoing.

     (h) All present and future increases, profits, combinations, reclassifications, and
substitutes and replacements for all or part of the foregoing Collateral.

     (i) All proceeds of any and all of the foregoing (including proceeds that constitute
property of types described above).

     3. Delivery of Collateral. All certificates and instruments representing or evidencing
the Pledged Shares and the Pledged Debt shall be delivered to the Secured Party contemporaneously
with the execution of this Agreement. All certificates and instruments representing or evidencing
Collateral received by the Pledgor after the execution of this Agreement shall be delivered to the

 

 

Secured Party promptly upon the Pledgor’s receipt thereof along with an updated Schedule I.
All such certificates and instruments shall be held by or on behalf of the Secured Party pursuant
hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and substance satisfactory to
the Secured Party. With respect to all Pledged Shares and Pledged Debt consisting of uncertificated
securities, book-entry securities or securities entitlements, the Pledgor shall either (a) execute
and deliver, and cause any necessary issuers or securities intermediaries to execute and deliver,
control agreements in form and substance satisfactory to the Secured Party covering such Pledged
Shares or Pledged Debt, or (b) cause such Pledged Shares or Pledged Debt to be transferred into the
name of the Secured Party. The Secured Party shall have the right at any time, whether before or
after an Event of Default, to cause any or all of the Collateral to be transferred of record into
the name of the Secured Party or its nominee (but subject to the rights of the Pledgor under
Section 6) and to exchange certificates representing or evidencing Collateral for certificates of
smaller or larger denominations. If the Collateral is in the possession of a bailee, the Pledgor
will join with the Secured Party in notifying the bailee of the interest of the Secured Party and
in obtaining from the bailee an acknowledgment that it hold the Collateral for the benefit of the
Secured Party. The Pledgor shall execute and deliver to the Secured Party such items of assignment
and transfer (including, without limitation, assignments of financing statements and recordable
assignments of mortgages and deeds of trust) of any Related Collateral as the Secured Party may
from time to time reasonably request.

     4. Certain Warranties and Covenants. The Pledgor makes the following warranties and
covenants:

     (a) The Pledgor has title to the Pledged Shares and the Pledged Debt and will have
title to each other item of Collateral hereafter acquired, free of all Liens except the
Security Interest and the Lien of Amatis Limited.

     (b) The Pledgor has full power and authority to execute this Pledge Agreement, to
perform the Pledgor’s obligations hereunder and to subject the Collateral to the Security
Interest created hereby.

     (c) No financing statement covering all or any part of the Collateral is on file in any
public office (except for any financing statements filed by the Secured Party or Amatis
Limited, and any financing statements or other documents filed or recorded by the Pledgor
with respect to its Lien on any Related Collateral).

     (d) The Pledged Shares have been duly authorized and validly issued by the issuer
thereof and are fully paid and non-assessable. The Pledged Debt has been duly authorized,
issued and delivered and is the legal, valid and binding obligation of the issuers thereof,
and is not in default. The certificates representing the Pledged Shares and the instruments
evidencing the Pledged Debt are genuine. Neither the Pledged Shares nor the Pledged Debt
are subject to any offset or similar right or claim of the issuers thereof.

     (e) The Pledged Shares constitute 100% of the issued and outstanding shares of stock of
the respective issuers thereof.

 

 

     (f) The Pledged Debt set forth on Schedule I constitutes all of the outstanding
indebtedness for money borrowed or for the deferred purchase price of property (other than
accounts payable on ordinary trade terms) of the respective obligors thereof owed to the
Pledgor and is outstanding in the principal amount indicated on Schedule I.

     (g) The Pledgor shall not forgive, cancel, subordinate, compromise, modify, amend or
extend the time for payment of, or waive any default under, any of the Pledged Debt, or
modify or amend, or waive any default under any agreement with respect to the Related
Collateral, or consent to or acquiesce in any of the foregoing, without in each case the
prior written consent of the Secured Party.

     5. Further Assurances. The Pledgor agrees that at any time and from time to time, at
the expense of the Pledgor, the Pledgor will promptly execute and deliver all further instruments
and documents, and take all further action that may be necessary or that the Secured Party may
reasonably request, in order to perfect and protect the Security Interest or to enable the Secured
Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral (but
any failure to request or assure that the Pledgor execute and deliver such instruments or documents
or to take such action shall not affect or impair the validity, sufficiency or enforceability of
this Agreement and the Security Interest, regardless of whether any such item was or was not
executed and delivered or action taken in a similar context or on a prior occasion).

     6. Voting Rights; Dividends; Etc.

     (a) Subject to Section 6(d), the Pledgor shall be entitled to exercise or refrain from
exercising any and all voting and other consensual rights pertaining to the Pledged Shares
or any other stock that becomes part of the Collateral or any part thereof for any purpose
not inconsistent with the terms of this Agreement or the Credit Agreement; provided,
however, that the Pledgor shall not exercise or refrain from exercising any such
right if such action could reasonably be expected to have a material adverse effect on the
value of the Collateral or any material part thereof.

     (b) Subject to Section 6(e), the Pledgor shall be entitled to receive, retain, and use
in any manner not prohibited by the Credit Agreement or any Subordination Agreement (as
defined in the Credit Agreement) any and all interest and dividends paid in respect of the
Collateral; provided, however, that any and all

     (i) dividends paid or payable other than in cash in respect of, and instruments
and other property received, receivable or otherwise distributed in respect of, or
in exchange for, any Collateral,

     (ii) dividends and other distributions paid or payable in cash in respect of
any Collateral in connection with a partial or total liquidation or dissolution or
in connection with a reduction of capital, capital surplus or paid-in-surplus, and

     (iii) cash paid, payable or otherwise distributed in respect of principal of,
or in redemption of, or in exchange for, any Collateral,

 

 

shall be, and shall be forthwith delivered to the Secured Party to hold as, Collateral and shall,
if received by the Pledgor, be received in trust for the benefit of the Secured Party, be
segregated from the other property or funds of the Pledgor, and be forthwith delivered to the
Secured Party as Collateral in the same form as so received (with any necessary indorsement or
assignment). The Pledgor shall, upon request by the Secured Party, promptly execute all such
documents and do all such acts as may be necessary or desirable to give effect to the provisions of
this Section 6(b).

     (c) The Secured Party shall execute and deliver (or cause to be executed and delivered)
to the Pledgor all such proxies and other instruments as the Pledgor may reasonably request
for the purpose of enabling the Pledgor to exercise the voting and other rights that it is
entitled to exercise pursuant to Section 6(a) hereof and to receive the dividends and
interest that it is authorized to receive and retain pursuant to Section 6(b) hereof.

     (d) Upon the occurrence and during the continuance of any Event of Default, the Secured
Party shall have the right in its sole discretion, and the Pledgor shall execute and deliver
all such proxies and other instruments as may be necessary or appropriate to give effect to
such right, to terminate all rights of the Pledgor to exercise or refrain from exercising
the voting and other consensual rights that it would otherwise be entitled to exercise
pursuant to Section 6(a) hereof, and all such rights shall thereupon become vested in the
Secured Party who shall thereupon have the sole right to exercise or refrain from exercising
such voting and other consensual rights; provided, however, that the Secured
Party shall not be deemed to possess or have control over any voting rights with respect to
any Collateral unless and until the Secured Party has given written notice to the Pledgor
that any further exercise of such voting rights by the Pledgor is prohibited and that the
Secured Party and/or its assigns will henceforth exercise such voting rights; and
provided, further, that neither the registration of any item of Collateral
in the Secured Party’s name nor the exercise of any voting rights with respect thereto shall
be deemed to constitute a retention by the Secured Party of any such Collateral in
satisfaction of the Obligations or any part thereof.

     (e) Upon the occurrence and during the continuance of any Event of Default:

     (i) all rights of the Pledgor to receive the dividends and interest that it
would otherwise be authorized to receive and retain pursuant to Section 6(b) hereof
shall cease, and all such rights shall thereupon become vested in the Secured Party
who shall thereupon have the sole right to receive and hold such dividends as
Collateral, and

     (ii) all payments of interest and dividends that are received by the Pledgor
contrary to the provisions of Section 6(e)(i) shall be received in trust for the
benefit of the Secured Party, shall be segregated from other funds of the Pledgor
and shall be forthwith paid over to the Secured Party as Collateral in the same form
as so received (with any necessary indorsement).

 

 

     7. Transfers and Other Liens; Additional Shares.

     (a) Except as may be permitted by the Credit Agreement, the Pledgor agrees that it will
not (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant
any option with respect to, any of the Collateral, or (ii) create or permit to exist any
Lien, upon or with respect to any of the Collateral.

     (b) The Pledgor agrees that it will (i) cause each issuer of the Pledged Shares that it
controls not to issue any stock or other securities in addition to or in substitution for
the Pledged Shares issued by such issuer, except to the Pledgor, and (ii) pledge hereunder,
immediately upon its acquisition (directly or indirectly) thereof,
any and all additional shares of stock or other securities of each issuer of the Pledged Shares.

     8. Secured Party Appointed Attorney-in-Fact. As additional security for the
Obligations, the Pledgor hereby irrevocably appoints the Secured Party the Pledgor’s
attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of
such Pledgor or otherwise, from time to time in the Secured Party’s good-faith discretion, to take
any action and to execute any instrument that the Secured Party may reasonably believe necessary or
advisable to accomplish the purposes of this Agreement (subject to the rights of the Pledgor under
Section 6 hereof), in a manner consistent with the terms hereof, including, without limitation, to
receive, indorse and collect all instruments made payable to the Pledgor representing any dividend
or other distribution in respect of the Collateral or any part thereof and to give full discharge
for the same.

     9. Secured Party May Perform. The Pledgor hereby authorizes the Secured Party to file
financing statements with respect to the Collateral (including financing statements containing a
broader description of the Collateral than the description set forth herein). The Pledgor
irrevocably waives any right to notice of any such filing. If the Pledgor fails to perform any
agreement contained herein, the Secured Party may itself perform, or cause performance of, such
agreement, and the reasonable expenses of the Secured Party incurred in connection therewith shall
be payable by the Pledgor under Section 14 hereof.

     10. The Secured Party’s Duties. The powers conferred on the Secured Party hereunder
are solely to protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. The Secured Party shall be deemed to have exercised reasonable care in
the safekeeping of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to the safekeeping which the Secured Party accords its own property of like
kind. Except for the safekeeping of any Collateral in its possession and the accounting for monies
and for other properties actually received by it hereunder, the Secured Party shall have no duty,
as to any Collateral, as to ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Collateral, whether or not the
Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any
necessary steps to preserve rights against any Persons or any other rights pertaining to any
Collateral. The Secured Party will take action in the nature of exchanges, conversions,
redemption, tenders and the like requested in writing by the Pledgor with respect to any of the
Collateral in the Secured Party’s possession if the Secured Party in its reasonable judgment
determines that such action will not impair the Security Interest or the value of the Collateral,
but a failure of the Secured Party to comply with any such request shall not of itself be deemed a
failure to exercise reasonable care.

 

 

     11. Default. Each of the following occurrences shall constitute an Event of Default
under this Agreement: (a) the Pledgor shall fail to observe or perform any covenant or agreement
applicable to the Pledgor under this Agreement; (b) any representation or warranty made by the
Pledgor in this Agreement or in any financial statements, reports or certificates heretofore or at
any time hereafter submitted by or on behalf of the Pledgor to the Secured Party shall prove to
have been false or materially misleading when made; (c) any Event of Default shall occur under the
Credit Agreement; (d) the Secured Party receives at any time any information indicating that the
Secured Party’s Security Interest is not enforceable, is not perfected or in not prior to all other
security interests or other interests in the Collateral, except as otherwise agreed by the Secured
Party.

     12. Remedies upon Default. If any Event of Default shall have occurred and be
continuing:

     (a) The Secured Party may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the rights and
remedies of a secured party on default under Revised Article 9 of the Uniform Commercial
Code as adopted in the State of Colorado (the “Code”) in effect at that time, and may,
without notice except as specified below, sell the Collateral or any part thereof in one or
more parcels at public or private sale, at any exchange, broker’s board or at any of the
Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, and upon
such other terms as the Secured Party may reasonably believe are commercially reasonable.
The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten
days’ prior notice to the Pledgor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable notification. The Secured
Party shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given. The Secured Party may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. The Pledgor
hereby waives all requirements of law, if any, relating to the marshalling of assets which
would be applicable in connection with the enforcement by the Secured Party of its remedies
hereunder, absent this waiver. The Secured Party may disclaim warranties of title and
possession and the like.

     (b) The Secured Party may notify any Person obligated on any of the Collateral that the
same has been assigned or transferred to the Secured Party and that the same should be
performed as requested by, or paid directly to, the Secured Party, as the case may be. The
Pledgor shall join in giving such notice, if the Secured Party so requests. The Secured
Party may, in the Secured Party’s name or in the Pledgor’s name, demand, sue for, collect or
receive any money or property at any time payable or receivable on account of, or securing,
any such Collateral or grant any extension to, make any compromise or settlement with or
otherwise agree to waive, modify, amend or change the obligation of any such Person.

     (c) Any cash held by the Secured Party as Collateral and all cash proceeds received by
the Secured Party in respect of any sale of, collection from, or other

 

 

realization upon all or any part of the Collateral may, in the discretion of the
Secured Party, be held by the Secured Party as collateral for, or then or at any time
thereafter be applied in whole or in part by the Secured Party against, all or any part of
the Obligations (including any expenses of the Secured Party payable pursuant to Section 14
hereof).

     13. Waiver of Certain Claims. The Pledgor acknowledges that because of present or
future circumstances, a question may arise under the Securities Act of 1933, as from time to time
amended (the “Securities Act”), with respect to any disposition of the Collateral permitted
hereunder. The Pledgor understands that compliance with the Securities Act may very strictly limit
the course of conduct of the Secured Party if the Secured Party were to attempt to dispose of all
or any portion of the Collateral and may also limit the extent to which or the manner in which any
subsequent transferee of the Collateral or any portion thereof may dispose of the same. There may
be other legal restrictions or limitations affecting the Secured Party in any attempt to dispose of
all or any portion of the Collateral under the applicable Blue Sky or other securities laws or
similar laws analogous in purpose or effect. The Secured Party may be compelled to resort to one
or more private sales to a restricted group of purchasers who will be obliged to agree, among other
things, to acquire such Collateral for their own account for investment only and not to engage in a
distribution or resale thereof. The Pledgor agrees that the Secured Party shall not incur any
liability, and any liability of the Pledgor for any deficiency shall not be impaired, as a result
of the sale of the Collateral or any portion thereof at any such private sale in a manner that the
Secured Party reasonably believes is commercially reasonable (within the meaning of Section 9-627
of the Uniform Commercial Code). The Pledgor hereby waives any claims against the Secured Party
arising by reason of the fact that the price at which the Collateral may have been sold at such
sale was less than the price that might have been obtained at a public sale or was less than the
aggregate amount of the Obligations, even if the Secured Party shall accept the first offer
received and does not offer any portion of the Collateral to more than one possible purchaser. The
Pledgor further agrees that the Secured Party has no obligation to delay sale of any Collateral for
the period of time necessary to permit the issuer of such Collateral to qualify or register such
Collateral for public sale under the Securities Act, applicable Blue Sky laws and other applicable
state and federal securities laws, even if said issuer would agree to do so. Without limiting the
generality of the foregoing, the provisions of this Section would apply if, for example, the
Secured Party were to place all or any portion of the Collateral for private placement by an
investment banking firm, or if such investment banking firm purchased all or any portion of the
Collateral for its own account, or if the Secured Party placed all or any portion of the Collateral
privately with a purchaser or purchasers.

     14. Costs and Expenses; Indemnity. The Pledgor will pay or reimburse the Secured
Party on demand for all out-of-pocket expenses (including in each case all filing and recording
fees and taxes and all reasonable fees and expenses of counsel and of any experts and agents)
incurred by the Secured Party in connection with the creation, perfection, protection,
satisfaction, foreclosure or enforcement of the Security Interest and the preparation,
administration, continuance, amendment or enforcement of this Agreement, and all such costs and
expenses shall be part of the Obligations secured by the Security Interest. The Pledgor shall
indemnify and hold the Secured Party harmless from and against any and all claims, losses and
liabilities (including reasonable attorneys’ fees) growing out of or resulting from this Agreement
(including enforcement of this

 

 

Agreement) or the Secured Party’s actions pursuant hereto. Any liability of the Pledgor to
indemnify and hold Secured Party harmless pursuant to the preceding sentence shall be part of the
Obligations secured by the Security Interest. The obligations of the Pledgor under this Section
shall survive any termination of this Agreement.

     15. Waivers and Amendments; Remedies. This Agreement can be waived, modified,
amended, terminated or discharged, and the Security Interest can be released, only explicitly in a
writing signed by the Secured Party. A waiver so signed shall be effective only in the specific
instance and for the specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to the Secured Party. All rights and
remedies of the Secured Party shall be cumulative and may be exercised singly in any order or
sequence, or concurrently, at the Secured Party’s option, and the exercise or enforcement of any
such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any
other.

     16. Notices. Any notice or other communication to any party in connection with this
Agreement shall be in writing and shall be sent by manual delivery, telefacsimile transmission,
overnight courier or United States mail (postage prepaid) addressed to such party at the address
specified on the signature page hereof, or at such other address as such party shall have specified
to the other party hereto in writing. All periods of notice shall be measured from the date of
delivery thereof if manually delivered, from the date of sending thereof if sent by telefacsimile
transmission, from the first business day after the date of sending if sent by overnight courier,
or from four days after the date of mailing if mailed.

     17. Pledgor Acknowledgments. The Pledgor hereby acknowledges that (a) the Pledgor has
been advised by counsel in the negotiation, execution and delivery of this Agreement, (b) the
Secured Party has no fiduciary relationship to the Pledgor, the relationship being solely that of
debtor and creditor, and (c) no joint venture exists between the Pledgor and the Secured Party.

     18. Continuing Security Interest; Assignments under Credit Agreement. This Agreement
shall create a continuing security interest in the Collateral and shall (a) remain in full force
and effect until the payment in full of the Obligations and the expiration of the obligation, if
any, of the Secured Party to extend credit accommodations to the Pledgor, (b) be binding upon the
Pledgor, its successors and assigns, and (c) inure, together with the rights and remedies of the
Secured Party hereunder, to the benefit of, and be enforceable by, the Secured Party and its
successors, transferees and assigns. Without limiting the generality of the foregoing clause (c),
the Secured Party may assign or otherwise transfer all or any portion of its rights and obligations
under the Credit Agreement to any other Person to the extent and in the manner provided in the
Credit Agreement, and may similarly transfer all or any portion of its rights under this Pledge
Agreement to such Persons.

     19. Termination of Security Interest. Upon payment in full of the Obligations and the
expiration of any obligation of the Secured Party to extend credit accommodations to the Pledgor,
the security interest granted hereby shall terminate and all rights to the Collateral shall revert
to the Pledgor. Upon any such termination, the Secured Party will return to the Pledgor such of
the Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof and

 

 

execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to
evidence such termination. Any reversion or return of the Collateral upon termination of this
Agreement and any instruments of transfer or termination shall be at the expense of the Pledgor and
shall be without warranty by, or recourse on, the Secured Party. As used in this Section,
“Pledgor” includes any assigns of Pledgor or whoever else may be lawfully entitled to any part of
the Collateral.

     20. Governing Law and Construction. THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF
THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF COLORADO; PROVIDED, HOWEVER, THAT NO
EFFECT SHALL BE GIVEN TO CONFLICT OF LAWS PRINCIPLES OF THE STATE OF COLORADO, EXCEPT TO THE EXTENT
THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN
RESPECT OF ANY PARTICULAR COLLATERAL ARE MANDATORILY GOVERNED BY THE LAWS OF A JURISDICTION OTHER
THAN THE STATE OF COLORADO. Whenever possible, each provision of this Agreement and any other
statement, instrument or transaction contemplated hereby or relating hereto shall be interpreted in
such manner as to be effective and valid under such applicable law, but, if any provision of this
Agreement or any other statement, instrument or transaction contemplated hereby or relating hereto
shall be held to be prohibited or invalid under such applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement or any other statement,
instrument or transaction contemplated hereby or relating hereto.

     21. Consent to Jurisdiction. AT THE OPTION OF THE SECURED PARTY, THIS AGREEMENT MAY
BE ENFORCED IN ANY FEDERAL COURT OR COLORADO STATE COURT SITTING IN THE CITY AND COUNTY OF DENVER,
COLORADO; AND THE PLEDGOR CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY
ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT THE PLEDGOR COMMENCES ANY
ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, THE SECURED PARTY AT ITS OPTION SHALL
BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR
IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT
PREJUDICE.

     22. Waiver of Jury Trial. EACH OF THE PLEDGOR AND THE SECURED PARTY, BY ITS
ACCEPTANCE OF THIS AGREEMENT, IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     23. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed to be an original and all of which

 

 

counterparts, taken together, shall constitute but one and the same instrument. Delivery of
an executed counterpart of this Agreement by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Agreement. Any party delivering an executed
counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart
of this Agreement but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement..

     24. General. All representations and warranties contained in this Agreement or in any
other agreement between the Pledgor and the Secured Party shall survive the execution, delivery and
performance of this Agreement and the creation and payment of the Obligations. The Pledgor waives
notice of the acceptance of this Agreement by the Secured Party. Captions in this Agreement are
for reference and convenience only and shall not affect the interpretation or meaning of any
provision of this Agreement.

[The remainder of this page intentionally left blank.]

 

 

     IN WITNESS WHEREOF, the Pledgor has caused this Pledge Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above written.

[PLEDGOR]

By:                                                            

Name:

Its:

Address for Pledgor:

Address for Secured Party:

Wells Fargo Business Credit

MAC C7300 210

1740 Broadway

Denver, Colorado 80274

Telecopier: (303) 863-4904

Attention: Martin E. Tracy

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

GLOBAL EMPLOYMENT SOLUTIONS, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

	 	 	 	 	 	 	 
	Stock Issuer: Main Line Personnel Services, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Number of Shares:

	 	 	100	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Temporary Placement Service, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	1.00	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	0.10	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 

	 	 	 	 	 	 	 
	Stock Issuer: Excell Personnel Services Corporation
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value: $

	 	 	1.00	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Friendly Advanced Software Technology, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Personnel Management, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value: $1

	 	 	00.00	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

EXCELL PERSONNEL SERVICES CORPORATION

 

 

SCHEDULE I

PART I

PLEDGED STOCK

	 	 	 	 	 	 	 
	Stock Issuer: PD Quick — Temps
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 

      

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

FRIENDLY ADVANCED SOFTWARE TECHNOLOGY, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

TEMPORARY PLACEMENT SERVICE, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

	 	 	 	 	 
	Obligor	 	Type	 	Principal Amount
	Cherokee Carpets
	 	A/R	 	$3,162
	Right to Privacy
	 	A/R	 	$13,067
	Realty Ready
	 	A/R	 	$137,320

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

SOUTHEASTERN STAFFING, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

	 	 	 	 	 	 	 
	Stock Issuer: Bay HR, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	1.00	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing II, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value: $1.00
	 	 	 	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing IV, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value: $1.00
	 	 	 	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing VI, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	1.00	 	 	 
	Number of Shares:

	 	 	1,000	 	 	 

	 	 	 	 	 	 	 
	Stock Issuer: Southeastern Georgia HR, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	1.00	 	 	 
	Number of Shares: 2

	 	 	,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing III, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:

	 	$	1.00	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 
	 
	 	 	 	 	 	 
	Stock Issuer: Southeastern Staffing V, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value

	 	$	1.00	 	 	 
	Number of Shares:

	 	 	2,000	 	 	 

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

SOUTHEASTERN PERSONNEL MANAGEMENT, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

MAIN LINE PERSONNEL SERVICES, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

BAY HR, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

SOUTHEASTERN GEORGIA HR, INC.

 

 

SCHEDULE I

PART I

PLEDGED STOCK

NONE

 

 

PART II

PLEDGED DEBT

NONE

 

 

SCHEDULES TO PLEDGE AGREEMENT

FOR

GLOBAL EMPLOYMENT HOLDINGS, INC.

[GUARANTOR]

 

 

SCHEDULE I

PLEDGED STOCK

After the effective date of the merger of Global Merger Corp with and into Global Employment
Solutions, Inc.:

	 	 	 	 	 	 	 
	Stock Issuer: Global Employment Solutions, Inc.
	Percentage Ownership:

	 	 	100	%	 	 
	Class of Stock:

	 	Common
	 	 
	Certificate No(s).:

	 	 	1	 	 	 
	Par Value:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Number of Shares:

	 	 	100	 	 	 

      

 

 

PART II

PLEDGED DEBT

NONE

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