Document:

exv10w2

 

Exhibit 10.2

FIRST AMENDMENT

TO

NOTES SECURITIES PURCHASE AGREEMENT

     FIRST AMENDMENT TO NOTES SECURITIES PURCHASE AGREEMENT (this “Amendment”), dated as of
September 28, 2006, by and among Global Employment Holdings, Inc., a Delaware corporation (the
“Company”), Global Employment Solutions, Inc., a Colorado corporation (“GES”), and the investors
listed on the signature pages hereto (individually, a “Buyer” and collectively, the “Buyers”).

     WHEREAS:

     A. The Company, GES and the Buyers are party to a Notes Securities Purchase Agreement, dated
as of March 31, 2006, (the “Purchase Agreement”). Capitalized terms not otherwise defined have the
meanings set forth in the Purchase Agreement.

     B. Amatis Limited (“Amatis” or the “Old Collateral Agent”) has agreed to sell all of the Notes
and Warrants it purchased pursuant to the Purchase Agreement.

     C. Amatis was named the Collateral Agent in the Purchase Agreement and wishes to be released
from its role as the Collateral Agent.

     D. Whitebox Convertible Arbitrage Partners, LP (“Whitebox” or the “New Collateral Agent”) has
agreed to replace Amatis as the Collateral Agent.

     NOW, THEREFORE, the Company, GES and each Buyer hereby agree as follows:

     1. Amendment of Section 4(p). Section 4(p) of the Purchase Agreement is hereby
deleted from the Purchase Agreement and the following inserted in its place:

Whitebox Convertible Arbitrage Partners, LP (the “Collateral Agent”) is hereby
appointed as the collateral agent for the Buyers hereunder, and each Buyer hereby
authorizes the Collateral Agent (and its officers, directors, employees and agents)
to take any and all such actions on behalf of the Buyers with respect to the
Collateral (as defined in the Security Documents) and the Obligations in accordance
with the terms of this Agreement. The Collateral Agent shall not have, by reason
hereof or any of the other Transaction Documents, a fiduciary relationship in
respect of any Buyer. Neither the Collateral Agent nor any of its officers,
directors, employees and agents shall have any liability to any Buyer for any
action taken or omitted to be taken in connection hereof except to the extent
caused by its own gross negligence or willful misconduct, and each Buyer agrees to
defend, protect, indemnify and hold harmless the Collateral Agent and all of its
officers, directors, employees and agents (collectively, the “Indemnitees”) from
and against any losses, damages, liabilities, obligations, penalties, actions,
judgments, suits, fees, costs and expenses (including, without limitation,
reasonable attorneys’ fees, costs and expenses) incurred by such Indemnitee,
whether direct, indirect or consequential, arising from or in connection with the

 

 

performance by such Indemnitee of the duties and obligations of Collateral Agent
pursuant hereto.

     2. Resignation and Appointment of Collateral Agent. The Old Collateral Agent hereby
resigns as the Collateral Agent. The Buyers and the Company hereby accept the resignation of the
Old Collateral Agent as the Collateral Agent and hereby appoint the New Collateral Agent as the
Collateral Agent.

     3. Acceptance of Appointment of Collateral Agent. The New Collateral Agent hereby
accepts its appointment as the Collateral Agent.

4. Assignment.

          (a) Old Collateral Agent hereby assigns, without recourse, to New Collateral Agent, for the
ratable benefit of the noteholders, all of Old Collateral Agent’s right, title and interest in, to
and under (a) the Collateral and in, to and under all of the Security Documents, any UCC-1
Financing Statements or other instrument perfecting the security interest in the Collateral and any
other Transaction Document evidencing the grant of any item or security interest in any property of
the Company, (b) any Collateral delivered in connection with the execution and delivery of the
Purchase Agreement, and (c) all proceeds thereof (collectively, the “Assigned Items”). New
Collateral Agent hereby accepts all of Old Collateral Agent’s right, title and interest, as
collateral agent, in, to and under the Assigned Items.

          (b) Except as otherwise specifically stated in this Amendment, Old Collateral Agent
specifically disclaims any warranty, guaranty or representation, oral or written, past, present or
future with respect to the Assigned Items, including, without limitation: (a) the validity,
existence, or priority of any lien or security interest relating to the Assigned Items; (b) the
existence or basis for any claim, counterclaim, defense or offset relating to the Assigned Items;
(c) the financial condition of the Company or any of its subsidiaries; (d) the compliance of the
Assigned Items with any laws, ordinances or regulations of any government or other body; (e) the
condition or existence of any Assigned Items; and (f) the future performance of the Company or the
Collateral. Old Collateral Agent shall not be responsible in any manner whatsoever for the
correctness of any recitals, statements, representations or warranties contained in any of the
Security Documents or other Transaction Documents. The New Collateral Agent acknowledges and
represents to Old Collateral Agent that having been given the opportunity to undertake its own
investigation of the Assigned Items, it is relying solely on its own investigation of the Assigned
Items and not any information provided or to be provided by Old Collateral Agent (except as
specifically set forth in this Amendment). This assignment is made on an “AS IS”,
“WHERE IS” basis, with all faults, and the New Collateral
Agent, by acceptance of this Amendment expressly acknowledges that OLD COLLATERAL AGENT MAKES NO WARRANTY OR REPRESENTATION,
EXCEPT AS SPECIFICALLY SET FORTH IN THIS AMENDMENT, EXPRESS OR IMPLIED, RELATING TO THE ASSIGNED
ITEMS. THIS ASSIGNMENT IS MADE WITHOUT RECOURSE.

     5. No Other Changes. Except as explicitly set forth in this Amendment, all of the
terms and conditions of the Purchase Agreement remain in full force and effect.

- 2 -

 

     6. Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as any other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Amendment and the consummation of
the transactions contemplated hereby. Specifically, Amatis shall cause a release of the
assignments for security with respect to all of the Intellectual Property owned by the Company and
its Subsidiaries (the “Existing Assignments”) to be filed with the United States Patent and
Trademark Office.

     7. Assignments
for Security.  Within one business day after execution of this
Amendment, the Company and its Subsidiaries, as applicable,
shall deliver to the New Collateral Agent duly executed assignments for security with respect to
all of the Intellectual Property owned by the Company and its Subsidiaries.

     8. Facsimile Signatures; Counterparts. This Amendment may be executed via facsimile
signature. This Amendment may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory thereto with the same
force and effect as if the signature were an original, not a facsimile signature.

[Signature Page Follows]

- 3 -

 

     IN WITNESS WHEREOF, each Buyer, the Company and GES have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

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

	 	/s/ Howard Brill
	 	By:
	 	/s/ Howard Brill	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Howard Brill
	 	 	 	Name: Howard Brill	 	 
	 

	 	Title: President and Chief Executive Officer
	 	 	 	Title: President and Chief Executive Officer
	 	 
	 

	 	 	 	 	 	 	 	 

 

 

     IN WITNESS WHEREOF, each Buyer, the Company and GES have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BUYERS:	 	 
	 
	 	 	 	 	 	 
	 	 	AMATIS LIMITED	 	 
	 

	 	 	 	By: Amaranth Advisors, L.L.C.,	 	 
	 

	 	 	 	Its Trading Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Karl J. Wachter	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Karl J. Wachter	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	RADCLIFFE SPC, LTD. for and on behalf of
the Class A Convertible Crossover
Segregated Portfolio	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RG Capital Management, L.P
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RGC Management Company, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gerald F. Stahlecker	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Gerald F. Stahlecker	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	MAGNETAR CAPITAL MASTER FUND, LTD	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Magnetar Financial LLC, its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	  Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Convertible Arbitrage Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jonathan Wood	 	 
	 

	 	 	 	Title: Chief Financial Officer/Director	 	 
	 
	 	 	 	 	 	 
	 	 	GUGGENHEIM PORTFOLIO XXXI, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Guggenheim Advisors, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jonathan Wood	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PANDORA SELECT PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Pandora Select Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jonathan Wood	 	 
	 

	 	 	 	Title: Chief Financial Officer/Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	WHITEBOX INTERMARKET PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Intermarket Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jonathan Wood	 	 
	 

	 	 	 	Title: Chief Financial Officer/Director	 	 
	 
	 	 	 	 	 	 
	 	 	CONTEXT ADVANTAGE FUND, LP	 	 
	 	 	f/k/a Context Convertible Arbitrage Fund, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Context Capital Management LLC, General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael S. Rosen	 	 
	 

	 	 	 	Title: Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	CONTEXT OFFSHORE ADVANTAGE FUND, LTD.	 	 
	 	 	f/k/a Context Convertible Arbitrage Offshore, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Context Capital Management LLC, its Investment Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael S. Rosen	 	 
	 

	 	 	 	Title: Managing Member	 	 

 

 

	 	 	 	 	 
	 	 	CONTEXT OPPORTUNISTIC MASTER FUND, L.P.
	 
	 	 	 	 
	 	 	By: Context Capital Management LLC, its Investment Advisor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen
	 

	 	 	 	 
	 

	 	 	 	Name: Michael S. Rosen
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 	 	 
	ACCEPTED BY:	 	ACCEPTED BY:	 	 
	 
	 	 	 	 	 	 	 	 
	WHITEBOX CONVERTIBLE
ARBITRAGE PARTNERS, LP,	 	AMATIS LIMITED,	 	 
	as New Collateral Agent	 	as Old Collateral Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By: Amaranth Advisors L.L.C,
	 	 
	 

	 	 	 	 	 	Its: Trading Advisor	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jonathan Wood
	 	By:
	 	/s/ Karl J. Wachter	 	 
	 

	 	 
	 	 	 	 	 	 
	Name: Jonathan Wood	 	Name: Karl J. Wachter	 	 
	Title: Chief Financial
Officer	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Address:

	 	3033 Excelsior Boulevard
	 	Address:
	 	One America Lane
	 

	 	Suite 300
	 	 	 	Greenwich, CT 06831
	 

	 	Minneapolis, MN 55146exv10w3

 

Exhibit 10.3

FIRST AMENDMENT

TO

SECURITY AGREEMENT, PLEDGE AGREEMENT

AND GUARANTY

          FIRST AMENDMENT TO SECURITY AGREEMENT, PLEDGE AGREEMENT AND GUARANTY, dated as of September
28, 2006 (this “Amendment”) made by Global Employment Holdings, Inc. a Delaware corporation (the
"Company”), Global Employment Solutions, Inc., a Colorado corporation (“GES”), each of its
subsidiaries (each a “Guarantor” and together with the Company and each of its subsidiaries, each a
"Grantor” and a “Pledgor” and together the “Grantors” and “Pledgors”), Amatis Limited (“Amatis”),
in its capacity as the original collateral agent (in such capacity, the “Original Collateral
Agent”), and Whitebox Convertible Arbitrage Partners, LP (“Whitebox”), in its capacity as the new
collateral agent (in such capacity, the “Collateral Agent”).

     WHEREAS:

     A. The Company, GES and the Buyers are party to the Notes Securities Purchase Agreement, dated
as of March 31, 2006, (the “Purchase Agreement”). Capitalized terms not otherwise defined herein
have the meanings set forth in the Purchase Agreement.

     B. Amatis has agreed to sell all of the Notes and Warrants it purchased pursuant to the
Purchase Agreement to a group of investors.

     C. Amatis was named the Collateral Agent in the Purchase Agreement and wishes to be released
from its role as the Collateral Agent.

     D. Whitebox has agreed to replace Amatis as the Collateral Agent.

     E. Amatis is named as Collateral Agent in the Security Agreement, the Pledge Agreement and the
Guaranty.

          NOW, THEREFORE, the parties hereto agree as follows:

          SECTION 1. New Collateral Agent. Each reference to Amatis as Collateral Agent in the
Security Agreement, the Pledge Agreement and the Guaranty is hereby amended to read: “Whitebox
Convertible Arbitrage Partners, LP”.

          SECTION 2. No Other Changes. Except as explicitly amended by this Amendment, all of
the terms and conditions of the Security Agreement, the Pledge Agreement and the Guaranty remain in
full force and effect.

          SECTION 3. Facsimile Signatures; Counterparts. This Amendment may be executed in two
or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile signature shall be considered due execution
 

 

 

and shall be binding upon the signatory thereto with the same force and effect as if the
signature were an original, not a facsimile signature.

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

	 	 	 	 	 
	 	GLOBAL EMPLOYMENT HOLDINGS, INC

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	GLOBAL EMPLOYMENT SOLUTIONS, INC

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	EXCELL PERSONNEL SERVICES, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	FRIENDLY ADVANCED SOFTWARE

         TECHNOLOGY, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MAIN LINE PERSONAL SERVICE, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 

 

 

	 	 	 	 	 
	 	SOUTHEASTERN PERSONNEL

      MANAGEMENT, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	SOUTHEASTERN STAFFING, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	BAY HR, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	SOUTHEASTERN GEORGIA HR, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	TEMPORARY PLACEMENT SERVICE, INC.

 	 
	 	By:  	/s/ Howard Brill
 	 
	 	 	Name:  	Howard Brill  	 
	 	 	Title:  	Executive Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	ACCEPTED BY:	 	ACCEPTED BY:	 	 
	 
	 	 	 	 	 	 	 	 
	WHITEBOX CONVERTIBLE
ARBITRAGE PARTNERS, LP,	 	AMATIS LIMITED,	 	 
	as Collateral Agent	 	as Original Collateral Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By: Amaranth Advisors L.L.C,
	 	 
	 

	 	 	 	 	 	Its: Trading Advisor	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jonathan Wood
	 	By:
	 	/s/ Karl J. Wachter	 	 
	 

	 	 
	 	 	 	 	 	 
	Name: Jonathan Wood	 	Name: Karl J. Wachter	 	 
	Title: Chief Financial
Officer/Director	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Address:

	 	3033 Excelsior Boulevard
	 	Address:
	 	One America Lane
	 

	 	Suite 300
	 	 	 	Greenwich, CT 06831
	 

	 	Minneapolis, MN 55146

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