Document:

Exhibit 10.52

 

AMENDED EMPLOYMENT
AGREEMENT

RE:  MICHAEL LEE

 

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

 

W I T N E S S E T
H:

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

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

 

3.             Base
Compensation.  As base compensation
for the services of Executive during the term hereof, the Company shall pay the
Executive a salary at an annual rate to be fixed from time to time by the Board
of Directors of the Company but in no event less than $125,000.00 plus any
additional compensation which the Board of Directors of the Company may from
time to time determine.  The Executive’s
salary hereunder shall be paid in equal semi-monthly installments (subject to
reduction for such payroll and withholding deductions as may be required by
law), and may be paid, in whole or in part, by one or more of the subsidiaries
(the “Subsidiaries”) of the Company.

 

In addition to the
Executive’s base salary, the Executive shall be entitled to each of the
following (at the Company’s expenses unless otherwise indicated): (a) 200,000
stock options priced at the date of this agreement, (b) the right to
receive a bonus pursuant to such bonus plan(s) which the Board of Directors of
the Company may hereafter adopt with respect to the Executive or which the
Chief Executive Officer may grant under authority delegated by the Board of
Directors, (c) health insurance coverage now or hereafter in effect which
shall provide for payment of health, dental and related expenses incurred
during the term of this Agreement with respect to the Executive (including
long-term disability coverage paid for the Executive), the Executive’s spouse
or the Executive’s children, and which shall contain such benefits and options
as shall be made available to other executives of the Company and/or the
Subsidiaries, (d) the right to participate in any and all 401(k) plans and
Section 125 plans now in effect or hereafter adopted by the Company, (e) the
right to participate in any executive stock option plan which the Board of
Directors of the Company may

 

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hereafter adopt with
respect to the Executive, (f) an automobile allowance of $ 600 per month, and
(g) the right to all fringe benefits generally made available to other
executives and/or employees of the Company.

 

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

 

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

 

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

 

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5.             Termination.

 

a.             The
Company may terminate the Executive’s employment pursuant to this Agreement at
any time for “cause” as herein defined. 
The term “cause” shall solely mean any of the following events set forth
in this paragraph: (i) the Executive’s conviction or plea of guilty to a
crime involving moral turpitude, (ii) any will full acts of acts of
dishonesty and theft or the will full violation of any law, rule or
regulation (other than traffic violation or other minor offenses) on the part
of the Executive which, in the opinion of the Board of Directors of the
Company, is detrimental to the best interests of the Company.  However, no act or failure to act on the
Executive’s part shall be considered will full or detrimental to the best
interests of the Company unless done or omitted to be done in bad faith and
without reasonable belief by the Executive that the action or omission was in
the best interest of the Company and (iii)  a will full, intentional and
material violation by the Executive of any written policy of the Board of
Directors of the Company which is not corrected within ninety (90) days after
receipt by the Executive of a detailed written explanation from the Board of
Directors of the Company.  Any decision
by the Board of Directors of the Company to terminate the Executive for cause
must be approved by the favorable vote of seventy-five percent (75%) of all
members of the Board of Directors of the Company excluding the Executive.

 

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

 

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

 

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

 

e.             If
the Executive is incapacitated by an accident, sickness or otherwise, so as to
render him mentally or physically incapable of performing the services required
of him pursuant to this Agreement, Executive’s employment by the Company shall
terminate at such time as the Board of Directors of the Company determines
(with at least seventy-five percent of the directors other than the Executive
voting in favor) that the Executive is so disabled and that this Agreement
should be terminated by reason of such disability.  Notwithstanding the foregoing, the Executive
shall have the right to contest any determination of disability by the Board of
Directors of the Company.  In the event
that the Executive does contest such determination, such matter shall be
resolved by arbitration pursuant to Section 13(c) of this Agreement.

 

6.             Severance
and Other Payments.

 

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

 

b.             If
the Executive ceases to be an employee of the Company (either during the term
of this Agreement or at any time subsequent to the termination of this
Agreement) for any reason other than pursuant to Paragraphs 5(a), 5(c) (except
for a “Good Reason” termination by the Executive as defined below), 5(d) or
5(e) of this Agreement, the Company agrees to pay to the Executive an
amount equal to the base compensation which would have been paid to the
Executive

 

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during the period of time
from the date of the termination of the Executive’s employment with the Company
for a period of twelve (12) months following the date the Executive ceases to
be an employee of the Company and the Subsidiaries (such time period is herein
referred to as the “Severance Period”). 
In addition to the foregoing severance payment, the Executive and his
family shall continue to participate in the Company’s group health plan, at no
cost to the Executive, during the Severance Period. Notwithstanding the
foregoing, in the event of a Special Change in Control of the Company (as
hereinafter defined) and if the Executive’s employment with the Company is
terminated for any reason other than Voluntary Termination (as hereinafter
defined) or termination for cause as provided for herein during the twenty-four
(24) month period beginning on the Effective Date of such Special Change in
Control, (i) the Severance Period shall be extended by six (6) months
so that the Severance Period shall be eighteen (18) months following the date
the Executive ceases to be an employee of the Company and the Subsidiaries
(such extended time period is herein referred to as the “Extended Severance
Period”), and (ii) the payments to the Executive hereunder with respect to
the Extended Severance Period shall be at such times and in such amounts as
would have been paid to the Executive during the Extended Severance Period had
the Executive’s employment not been terminated.

 

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

 

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d.             Commencing
in June 2004 and during the time of Executive’s employment with the
Company and all of its subsidiaries, the Company shall fund a deferred compensation
program for the Executive in the amount of $1,250.00 per month.  All funded pursuant to this deferred
compensation arrangement shall be paid to the Executive, at the date of
termination of the Executive’s employment with the Company, in the manner
anticipated by the deferred compensation program previously implemented by the
Company for the Executive.

 

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

 

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

 

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

 

9.             Travel
and Entertainment.  The Executive is
authorized to incur reasonable business expenses on behalf of the Company,
including, but not by way of limitation, expenditures of entertainment, gifts
and travel; if any expenses are of a kind or a cost in excess of the written
policies established by the Board of Directors of the Company, such expenses
must be expressly authorized by the Board of Directors of the Company. The
Company agrees to reimburse the Executive for all

 

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such expenses upon the
Executive’s presentation of an itemized account of such expenditures.  In addition to the foregoing, the Executive
is entitled to incur, and to be reimbursed by the Company, various and sundry
fees, costs and expenses (including, but not by way of limitation, fees and
costs involved in attending courses, seminars and continuing education
sessions) in connection with the Executive’s position with the Company.  These costs include the cost of membership in
and attendance at, meetings of one or more professional organizations.

 

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

 

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

 

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instruments or
communications.  Any notice, instrument
or communication sent by telegram shall be deemed properly given only when
received by the person to whom it is sent.

 

12.           Certain
Conditions.

 

a.             “Special
Change in Control” means (i) any person or entity, including a “group” as
defined in Section 13(d)(3) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), other than the Company, a majority-owned
subsidiary thereof, or Executive and any affiliate of the Executive, becomes
the beneficial owner (as defined pursuant to Schedule 13(d) under the
Exchange Act) of the Company’s securities having twenty-five percent (25%) or
more of the combined voting power of the then outstanding securities of the
Company that may be cast for the election of directors of the Company, or (ii) as
the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sales of assets or contested election, or any
combination of the foregoing transactions, less than a majority of the combined
voting power of the then outstanding securities of the Company or any successor
corporation or entity entitled to vote generally in the election of the
directors of the Company, or such other corporation or entity after such
transaction, are beneficially owned (as defined pursuant to Section 13(d) of
the Exchange Act) in the aggregate by the holders of the Company’s securities
entitled to vote generally in the election of directors of the Company
immediately prior to such transaction, or (iii) during any period of two
consecutive years, individuals who at the beginning of any such period
constitute the

 

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Board of Directors of the Company cease for any reason
to constitute at least a majority thereof, unless the election, or the
nomination for election by the Company’s shareholders, of each director of the
Company first elected during such period was approved by a vote of at least
two-thirds of the directors of the Company then still in office who were
directors of the Company at the beginning of any such period.

 

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

 

c.             “Voluntary
Termination” shall mean Executive’s resignation from the Company unless such
resignation is for Good Reason. Good Reason shall

 

10

 

mean the following (i) without Executive’s
express written consent, the assignment to Executive of any duties materially
inconsistent with his position, duties, responsibilities and status (including
his removal from the Board of Directors) with the Company, (ii) a
reduction of Executive’s base compensation and bonus compensation (other than a
reduction in payments under the Company’s incentive bonus program based on a
reduction in net profits of the Company) to an amount that is greater than ten
percent (10%) lower than such compensation, (iii) relocation of Executive’s
principal location of work to any location that is both (A) in excess of
fifty (50) miles from the location of Executive’s principal location of work,
and (B) in excess of the sum of the distance from the Executive’s
principal residence to the location of the Executive’s principal location of
work plus fifty (50) miles, (iv)  at the effective Date of a Special
Change in Control the Company fails to require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, by agreement in
form and substance reasonably satisfactory to the Executive, expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform this Agreement if no such
succession had taken place, or (v) any material breach of this Agreement
as in effect on the Effective Date of the Special Change in Control by the
Company.

 

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13.           Miscellaneous.

 

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

 

b.             This
Agreement supersedes any other agreements, either oral or in writing, between
the parties to this Agreement, with respect to the employment of the Executive
by the Company.  This Agreement contains
the entire understanding of the parties and all of the covenants and agreement
between the parties with respect to such employment.  Any such prior agreements related to
employment of the Executive by the Company are hereby terminated without
obligation for any payments due thereunder, except for unpaid obligations which
accrued and become payable prior to the termination of any such agreements.

 

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

 

12

 

Agreement shall be borne
separately by each party to this Agreement; the expenses of a third arbitrator
shall be borne equally by the Company and the Executive.

 

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

 

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

 

 

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

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Moore

  
	
   

  	
   

  	
  J.
  Michael Moore

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  10670 North Central
  Expressway

  
	
   

  	
   

  	
  Suite 600

  
	
   

  	
   

  	
  Dallas, TX 75231

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael Lee

  
	
   

  	
  Michael Lee

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2117 Brook Tree Drive

  
	
   

  	
   

  	
  Garland, Texas 75040

  
				

 

13Exhibit 10.53

 

PARTICIPATION AGREEMENT

 

	
  Date:  eff
  November2, 2004

  	
  Amount of Credit:

  
	
   

  	
  Up to $5,000,000.00

  
	
   

  	
   

  	
   

  
	
  Seller’s Share:

  	
   

  	
  Purchaser’s Share:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $550,000.00

  
	
   

  	
   

  	
   

  	
   

  
	
  Interest Rate: Prime + 8%

  	
   

  	
  Interest Rate: Prime + 8%

  
	
   

  	
   

  	
   

  	
   

  
	
  Method of determining Share:

  	
   

  	
  See paragraph 5 below

  
	
  (check one)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Seller:

  	
  Greenfield Commercial Credit, LLC

  
	
   

  	
   

  
	
  Purchaser:

  	
  James R. Colpitt Trust

  
	
   

  	
   

  
	
  Borrower:

  	
  Information Systems Consulting Corp., et al as described in the
  Credit Documents.

  
	
   

  	
   

  
	
  Address:

  	
  10670 N. Central Express Way, Ste 600, Dallas, TX 75231

  
					

 

THIS PARTICIPATION AGREEMENT (“Agreement”), made effective November 2, 2004, between the
undersigned as Seller and Purchaser to provide for the sale and purchase of a
participation in the Credit described above to Borrower (“Credit”) for the
share indicated above, and to further delineate the rights, duties, and
liabilities of Seller and Purchaser in relation to the making and servicing of
the Credit and application of payments:

 

WITNESSETH:

 

NOW, THEREFORE, in
consideration of the promises and the mutual covenants and agreements herein
contained, Seller and Purchasers agree as follows:

 

1.                                      Credit Documents; Disbursement of
Credit.  The Credit has been disbursed or will be
disbursed by Seller to Borrower by one or more disbursements in accordance with
the agreements and notes between Seller and Borrower.  The Credit is or shall be evidenced by loan
agreement and notes and other documentation; is secured by such security agreements,
real estate mortgages and other security documents and is

 

 

guaranteed
by guaranties (collectively the “Credit Documents”).  Copies of the Credit Documents are either in
possession of Purchaser or shall be forwarded to Purchaser upon request.  The originals of the Credit Documents shall
be retained by Seller.

 

2.                                      Purchase of Participation.  Purchaser shall remit to Seller, through Borrower, upon receipt of this
Agreement signed by Seller, funds equivalent to the principal amount of this
participation..

 

3.                                      Interest Earned.         Interest shall be earned in direct proportion
to the share of the principal owned by Seller and Purchaser, except that
interest earned by Purchaser shall be calculated from date of disbursement.

 

4.                                      Disclosure of Information.                                                 To the extent not already available to Purchaser,
Seller shall use its best efforts to provide Purchaser, promptly after Seller’s
receipt of Purchaser’s written request therefor, (a) such information as
is then in Seller’s possession in respect of the current status of principal
and interest payments under the Credit Documents and in respect of the current
status of accrual of interest under the Credit Documents, (b) copies of
all current financial statements then in Seller’s possession with respect to
Borrower and each guarantor under the Credit Documents, (c) current
information then in Seller’s possession as to collateral values and lien
status, and (d) other current factual information then in Seller’s
possession bearing on the continuing creditworthiness of Borrower or any
guarantor under the Credit Documents; provided that nothing contained in this
paragraph shall impose any liability upon Seller for its failure to provide
Purchaser any such information or financial statements except for Seller’s own
bad faith, willful misconduct, or gross negligence; and provided that Seller
shall not be obligated to provide Purchaser with any information in violation
of applicable law or any contractual restrictions on the disclosure thereof.

 

5.                                      Loan Servicing and Application of
Payments.                                              Seller will service the Credit and apply
payments as follows:

 

a.                                       Seller will collect all payments, and, when
collected, promptly credit all such payments first to Borrower’s Obligations to
Seller as Lender under the Credit Documents until all such Obligations are paid
in full.  Thereafter, Seller will collect
all payments, and, when collected, promptly credit all such payments to such of
Purchaser’s Share as shall have been advanced by it under this Agreement.  For further clarity, it is the intention of
this Agreement that Purchaser shall have the benefit of any equity in the
Collateral as defined in the Credit Documents, to the extent of advances made
by it up to $550,000.00, but only after Borrower’s Obligations to Seller as
Lender have been paid in full.  Provided,
however, that Purchaser shall have the immediate benefit of any security
interest Seller may have in all Datatek accounts, except the Assigned Datatek
Accounts as defined in the Intercreditor Agreement. Purchaser acknowledges that
Seller’s interest in such Accounts (other than the Assigned Datatek Accounts),
and therefore Purchaser’s, is subordinate to Wells Fargo Business Credit, Inc.
and the Internal Revenue Service.

 

 

b.                                      Except as expressly provided herein to the
contrary, including, without limitation, the preceding paragraph,  all rights pursuant to the Credit Documents
and all Collateral held by Seller to secure payment of the obligations of
Borrower under the Credit Documents shall be so held (and such rights shall be
exercised or not exercised at the sole option of Seller and without consent of
the Purchaser) for the ratable benefit of Seller and Purchaser and Purchaser
shall have no right or responsibility to exercise such rights or to require
Seller to exercise such rights. 
Purchaser hereby acknowledges and agrees that neither this Agreement nor
the participation created hereby confer on Purchaser any right to vote on,
approve, or sign amendments or waivers of the Credit Documents or any other
independent benefit or any legal or equitable right, remedy or other claim
under the Credit Documents, except as otherwise provided in the Credit
Documents.

 

c.                                       The participation shall be for the account
and risk, and at the pro rata out-of-pocket expense of participants, and said
participation may not be transferred by Purchaser, in whole or in part, without
the written consent of Seller.  It is
also understood that Seller shall have no independent responsibility for the
performance of Borrower’s obligation, or for failure or delay in exercising any
rights or powers any rights or powers given Seller by the Credit Documents.

 

d.                                      At its option, from time to time and at any
time, Seller shall be entitled to:                                               (a) grant one or more additional
participations in the obligations of Borrower under the Credit Documents upon
terms similar to this agreement or otherwise; or (b) pay to Purchaser all
principal, interest, and fees then owing to Purchaser hereunder in respect of
its pro rata Participation, thereby terminating this agreement. Notwithstanding
any other provision in this Agreement, in addition to the rights of Seller,
Purchaser shall have the right, at any time that Borrower is not in default to
Seller under the Credit Documents, to be repaid by the Borrower for all
principal, interest, and fees then owing to Purchaser hereunder and under the
note between the Borrower and Purchaser dated as of the date hereof (the “Note”),
thereby terminating this agreement, the participation created hereunder, and
the Note.

 

e.                                       Seller shall keep proper books of account,
files and records, reflecting the participation evidenced hereby, and allow
Purchaser or federal or state banking authorities having authority to examine
Purchaser, to inspect same and obtain copies of such accounts, files and
records, at Seller’s expense.

 

6.                                      Purchaser’s Warranties.      Purchaser represents and warrants that (a) it has independently
reviewed the Credit Documents and all other documents related thereto in the
possession of Seller and requested by Purchaser, including without limitation
the Intercreditor Agreement dated March 12, 2004 between Greenfield
Commercial Credit, LLC and Wells Fargo Business Credit, Inc., and that
there shall be no recourse on, or any liability incurred by, Seller for any
misstatement (whether material or immaterial) or omission (whether negligent or
otherwise) of any person contained in any such documents or otherwise, (b) Purchaser
has conducted, to the extent it deems

 

 

necessary,
an independent investigation of Borrower, including, without limitation, an
investigation relating to the creditworthiness of Borrower, and the risk
involved to Purchaser in the advance of its funds pursuant to the Credit
Documents, and (c) Purchaser has not relief upon Seller for any such
investigation or assessment of risk.

 

7.                                      Administration and Seller’s Limited
Liability.                                       Neither Seller nor any of its agents,
officers or employees shall be liable for any action taken or omitted to be
taken by it or them under this agreement or any Credit Documents in good faith
and believed by it or them to be within the discretion or power conferred upon
it or them by this agreement or any Credit Documents, or be responsible for the
consequences or any error of judgment. 
Seller will exercise the same care in administering the Credit Documents
as it exercises with respect to similar transactions entered into solely for
its own account and shall otherwise have no liability or responsibility to
Purchaser except for actions taken or omitted to betaken by Seller which shall
constitute gross negligence or willful misconduct.  Unless indemnified to the satisfaction of
Seller against loss, cost, liability, and expense, Seller shall be under no
duty to enforce any rights, remedies, powers, or privileges with respect to any
enforcement of the obligations of Borrower under the Credit Documents and shall
not be compelled to do any act hereunder or there under or to take any action
toward the exercise or enforcement of the powers created by this agreement or
any Credit Documents, or to prosecute or defend any suit in respect hereof or thereof.  Seller shall not be responsible in any manner
to Purchaser for (a) the effectiveness, enforceability, genuineness,
validity, or due execution of the Credit Documents or any other documents, (b) any
representation, warranty, document, certificate, report, or statement herein
made or furnished under or in connection with any of such documents, (c) the
adequacy of collateral, if any, for the obligations of Borrower under the
Credit Documents, (d) the existence, priority, or perfection of any liens
or security interests granted or purported to be granted in connection with the
Credit Documents, or (e) observation of or compliance with any of the
terms, covenants, or conditions or any such documents on the part of Borrower.

 

8.                                      No Repurchase Obligation.                                             No amount paid by Purchaser to purchase any
participation in the obligations of Borrower under the Credit Documents shall
be considered a loan by Seller to Purchaser. 
Seller shall have no obligation to repurchase the participation sold
under this agreement upon any default by Borrower under any of its obligations
or otherwise.

 

9.                                      Benefit of Agreement.                        None of the provisions of this agreement
shall inure to the benefit of Borrower or any person other than Seller and
Purchaser; consequently, Borrower and any person other than Purchaser or Seller
shall not be entitled to rely upon or raise a defense, in any manner
whatsoever, the failure of either Seller or Purchaser to comply with the
provisions of this Agreement.  Neither
Seller nor Purchaser shall incur any liability to Borrower or any other person
for any act or omission of each other.

 

10.                               Relationship With Participants.                   Neither the execution of this agreement,
sharing in the Credit Documents, nor any agreement to share profit or losses

 

 

arising
as a result of the transactions contemplated hereby is intended to be or to
create, and the foregoing shall be construed not to be or to create, any
partnership, joint venture, or other joint enterprise between Seller and
Purchaser; and neither the execution of this Agreement, nor the management and
administration of the Credit Documents and the related documents by Seller, nor
any other right, duty or obligation of Seller under or pursuant to this
Agreement is intended to be or to create any express, implied, or constructive
trust or other fiduciary relationship between Seller and Purchaser.

 

11.                               Choice of Law.                 This Agreement shall be governed by and
construed in accordance with the laws of the State of Michigan.  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

 

12.                               Entire Agreement.                                           This Agreement (a) embodies the entire
agreement between the parties, supersedes all prior agreements and
understandings, if any relating to the subject matter hereof, and may be
amended only by an instrument in writing executed jointly by an authorized
officer or Seller and of Purchaser, and (b) has been executed in a number
of identical counterparts, each of which shall be deemed an original for all
purposes and all of which constitute, collectively, one agreement; but in
making proof of this agreement, it shall not be necessary to produce or account
for more than one such counterpart.

 

Executed
as of the date first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  GREENFIELD COMMERCIAL

  
	
   

  	
  CREDIT LLC

  
	
   

  	
  a Michigan limited liability company

  
	
   

  	
  By:

  	
  GCC Management, Inc.

  
	
   

  	
  Its:

  	
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald G. Barr, Jr.

  
	
   

  	
   

  	
  Donald G. Barr, Jr.

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  JAMES R. COLPITT TRUST

  
	
   

  	
  u/a dated 12/17/04

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Colpitt

  
	
   

  	
  Its:

  	
  Trustee

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