Document:

exv4w8

 

Exhibit 4.8

LOCK-UP AGREEMENT

          THIS LOCK-UP AGREEMENT (this “Agreement”) is made and entered into as of March 31, 2006, by
and between Global Employment Holdings, Inc., a Delaware corporation (“Holdings”), and Arnold P.
Kling, Kirk M. Warshaw and R&R Investments I, LLC (the “Shareholders”).

RECITALS

          1. Global Employment Solutions, Inc, a Colorado corporation (“GES”), has entered into a Notes
Securities Purchase Agreement, dated March 31, 2006, by and among GES and the investors listed on
the Schedule of Buyers attached thereto, a Preferred Stock Securities Purchase Agreement, dated
March 31, 2006, by and among GES and the investors listed on the Schedule of Buyers attached
thereto and a Common Stock Securities Purchase Agreement, dated March 31, 2006, by and among GES
and the investors listed on the Schedule of Buyers attached thereto, pursuant to which the Company
will issue, as applicable, senior convertible notes, shares of Series A Convertible Preferred
Stock, shares of common stock and warrants (collectively, the “Purchase Agreements”). The
investors that are party to the Purchase Agreements are collectively referred to herein as the
“Investors”. Holdings is party to a Joinder Agreement to each of the Purchase Agreements, each
dated March 31, 2006 (the “Joinders”), pursuant to which Holdings assumes the obligations of GES
under the Purchase Agreements.

          2. The Shareholders were the sole shareholders of Holdings prior to the Transactions and are
parties to a Registration Rights Agreement with Holdings dated March 31, 2006 (the “Registration
Rights Agreement”).

          3 As a condition to the Investors’ obligations to proceed with the Transactions, the Purchase
Agreements contemplate, among other things, that the Shareholders shall enter into this Agreement.

          4. The parties hereto agree that it would be detrimental to Holdings and the Investors if the
Shareholders were to sell any shares of Holdings common stock for six months from the Effective
Date. The Investors are intended third party beneficiaries of this Agreement.

          NOW, THEREFORE, in consideration of the above recitals, the promises, covenants and agreements
set forth herein, the consummation of the Transactions, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

     1. Lock-up. Each Shareholder shall not sell, dispose of, transfer, gift, pledge, make
any short sale of, grant any option for the purchase of, or enter into any hedging, derivative or
similar transaction with the same economic effect as a sale of any common stock or other securities
of Holdings owned of record or beneficially by such Shareholder on the Closing Date (as defined in
the Purchase Agreements) (the “Securities”) for a period commencing on the Closing Date and ending
six months from the Effective Date (as defined in the Registration Rights Agreement) (the “Lock-Up
Period”); provided, however, that the Shareholders may

 

 

transfer Securities solely for estate planning purposes in one or more private transactions
during the Lock-Up Period so long as the Securities remain subject to, and transferee agrees in
writing to be bound by, the provisions of this Agreement. In order to enforce the foregoing
covenant, the Company may impose stop-transfer instructions with respect to any Securities held by
the Stockholders until the end of such period. Beneficial ownership of Securities shall be
determined in accordance with Rule 13d-3 of the 1934 Act.

     2. Survival.

          All recitals, covenants, commitments and agreements of any of the parties made in this
Agreement survive the execution and delivery of this Agreement and the closing of the Transactions.

     3. Miscellaneous.

          (a) Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

	 	 	 
	If to Holdings:
	 	 
	 
	 	 
	 

	 	Global Employment Solutions, Inc.
	 

	 	9090 Ridgeline Boulevard, Suite 205
	 

	 	Littleton, Colorado 80129
	 

	 	Telephone: (303) 216-9500
	 

	 	Facsimile: (303) 216-9533
	 

	 	Attention: Chief Executive Officer
	 
	 	 
	Copy to:

	 	Brownstein Hyatt & Farber, P.C.
	 

	 	410 17th Street
	 

	 	Denver, CO 80202
	 

	 	Telephone: (303) 223-1160
	 

	 	Facsimile: (303) 223-1111
	 

	 	Attention: Jeff Knetsch
	 
	 	 
	If to a Stockholder:

	 	Arnold P. Kling
	 

	 	712 Fifth Avenue, 11th Floor
	 

	 	New York, New York 10019
	 
	 	 
	 

	 	Kirk M. Warshaw
	 

	 	47 School Avenue
	 

	 	Chatham, New Jersey 07928

2

 

	 	 	 
	 

	 	R&R Investments I, LLC
	 

	 	1270 Avenue of the Americas, 16th Floor
	 

	 	New York, New York 10020

Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such
transmission (C) provided by an overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from an overnight courier service in accordance with
clause (i), (ii) or (iii) above, respectively.

          (b) Severability. In the event that any provision or term of this Agreement, or any
word, phrase, clause, sentence or other portion thereof (including, without limitation, the
geographic and temporal restrictions and provisions contained in this Agreement), is held to be
unenforceable or invalid for any reason, such provision or portion thereof will be modified or
deleted in such a manner as to make this Agreement, as modified, legal and enforceable to the
fullest extent permitted under applicable laws.

          (c) Successors and Assigns. The terms and provisions set forth in this Agreement
inure to the benefit of and are enforceable by Holdings and its successors, assigns and
successors-in-interest, including without limitation any corporation or other entity with which
Holdings may be merged or by which it may be acquired, or which may be the acquiring entity in an
asset sale transaction or other form of reorganization. This Agreement may not be assigned by any
Shareholder.

          (d) Headings; Counterparts. The headings of paragraphs in this Agreement are for
convenience only and shall not affect its interpretation. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original and all of which, when taken
together, shall be deemed to constitute the same Agreement.

          (e) Construction. As used in this Agreement, the masculine, feminine or neuter
gender, and the singular or plural, shall be deemed to include the others whenever and wherever the
context so requires. Unless otherwise expressly provided, the word “including” does not limit the
preceding words or terms.

          (f) Governing Law. This Agreement is made pursuant to, and shall be construed and
enforced in accordance with, the laws of the State of New York and the federal laws of the United
States of America, to the extent applicable, without giving effect to otherwise applicable
principles of conflicts of law.

          (g) Arbitration. Subject to the exceptions set forth below, each Shareholder agrees
that any and all claims or disputes that such Shareholder has with Holdings that arise under the
terms of this Agreement shall be resolved through final and biding arbitration, as specified
herein. Binding arbitration will be conducted in the City of New York, State of New York in
accordance with the rules and regulations of the American Arbitration Association (AAA), by an
arbitrator selected from the AAA Commercial Disputes Panel. Each Shareholder

3

 

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. The cost of such arbitrator and arbitration
services shall be borne equally by the parties or as otherwise directed by the arbitrator. Any
decision or award of the arbitrator shall be final and conclusive on the parties to this Agreement
and their respective affiliates, and there shall be no appeal therefrom other than from gross
negligence or willful misconduct. This Section 3(g) shall not limit the right of Holdings or any
other person to seek judicial relief pursuant to this Agreement without prior arbitration.
Holdings and each Shareholder irrevocably consent to the jurisdiction of the United States federal
courts and the state courts located in the County of New York, State of New York, in any suit or
proceeding based on or arising under this Agreement and irrevocably agree that all claims in
respect of such suit or proceeding may be determined in such courts. Each Shareholder irrevocably
waives the defense of an inconvenient forum to the maintenance of such suit or proceeding in such
forum. Each Shareholder agrees that a final non-appealable judgment in any such suit or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any
other lawful manner.

          (h) 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.

          (i) Further Assurances. Each of the parties hereto shall execute such further
instruments and take such additional actions as the other party shall reasonably request in order
to effectuate the purposes of this Agreement.

          (j) Waivers. No waiver of any term, provision or condition of this Agreement, whether
by conduct or otherwise, in any one or more instances, will be deemed to be, or may be construed
as, a further or continuing waiver of any such term, provision or condition.

          (k) Modification. No amendment, modification, or waiver of this Agreement shall be
effective unless in writing. Neither the failure nor any delay on the part of any party to
exercise any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy preclude any other or further exercise of the same or of
any other right or remedy with respect to such occurrence or with respect to any other occurrence.

          (l) Investors Intended Third Party Beneficiaries. The Investors are intended third
party beneficiaries of this Agreement and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto.

[Signature Page Follows]

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          IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first
above written.

	 	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:  
	 	/s/
HOWARD BRILL 
	 

	 	 	 	Howard Brill
	 

	 	Its: 	 	President and Chief Executive
Officer
	 
	 	/s/ ARNOLD P. KLING	 	 	 	 
	 	 	 	 	 
	 	 	Arnold P. Kling	 	 
	 
	 	/s/ KIRK M. WARSHAW	 	 	 	 
	 	 	 	 	 
	 	 	Kirk M. Warshaw	 	 
	 
	 	 	 	 	 	 
	 	 	R&R INVESTMENTS I, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:  

	 	/s/
JOHN BORER 
	 

	 	 	 	John Borer
	 

	 	 	 	Presidentexv10w1

 

Exhibit 10.1

SHARE PURCHASE AGREEMENT

AMONG

GLOBAL EMPLOYMENT SOLUTIONS, INC.

GLOBAL EMPLOYMENT HOLDINGS, INC.

AND

SHAREHOLDERS OF GLOBAL EMPLOYMENT SOLUTIONS, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I	 	REPRESENTATIONS AND WARRANTIES OF HOLDINGS
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.1	 	 	Organization
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.2	 	 	Capital
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.3	 	 	Subsidiaries
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.4	 	 	Financial Statements
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.5	 	 	Absence of Changes
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.6	 	 	Absence of Undisclosed Liabilities
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.7	 	 	Tax Returns
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.8	 	 	Proprietary Rights
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.9	 	 	Compliance with Laws
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.10	 	 	Litigation
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.11	 	 	Authority
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.12	 	 	Ability to Carry Out Obligations
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	1.13	 	 	Assets
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	1.14	 	 	Material Contracts
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II	 	REPRESENTATIONS AND WARRANTIES OF GLOBAL
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	2.1	 	 	Organization
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	2.2	 	 	Capital
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	2.3	 	 	Subsidiaries
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	2.4	 	 	Financial Statements
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	2.5	 	 	Absence of Changes
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.6	 	 	Absence of Undisclosed Liabilities
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.7	 	 	Tax Returns
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.8	 	 	Proprietary Rights
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.9	 	 	Compliance with Laws
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.10	 	 	Litigation
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.11	 	 	Authority
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.12	 	 	Ability to Carry Out Obligations
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.13	 	 	Assets
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	2.14	 	 	Material Contracts
	 	 	5	 

-i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE III	 	CONDITIONS PRECEDENT TO GLOBAL’S AND THE HOLDERS’ PERFORMANCE
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	 	3.1	 	 	Conditions
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV	 	CONDITIONS PRECEDENT TO HOLDINGS’ PERFORMANCE
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	 	4.1	 	 	Conditions
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V	 	CLOSING
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	 	5.1	 	 	Closing
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI	 	COVENANTS SUBSEQUENT TO THE CLOSING DATE
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	6.1	 	 	Listing
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	6.2	 	 	Registration of Shares
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII	 	TERMINATION
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	7.1	 	 	Termination
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	7.2	 	 	Effect of Termination
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII	 	MISCELLANEOUS
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.1	 	 	Captions and Headings
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.2	 	 	No Oral Change
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.3	 	 	Non-Waiver
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.4	 	 	Time of Essence
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.5	 	 	Entire Agreement
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.6	 	 	Choice of Law
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.7	 	 	Counterparts
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	8.8	 	 	Notices
	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	 	8.9	 	 	Binding Effect
	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	 	8.10	 	 	Mutual Cooperation
	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	 	8.11	 	 	Expenses
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	 	8.12	 	 	Finders
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	 	8.13	 	 	Announcements
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	 	8.14	 	 	No Survival of Representations and Warranties
	 	 	11	 

-ii-

 

 

SHARE PURCHASE AGREEMENT

     SHARE
PURCHASE AGREEMENT dated as of March 31, 2006 among GLOBAL EMPLOYMENT SOLUTIONS, INC.,
a Colorado corporation (“Global”), GLOBAL EMPLOYMENT HOLDINGS, INC., a Delaware corporation
(“Holdings”), and the shareholders of Global signatory hereto (the “Holders”).

     WHEREAS, Holdings wishes to acquire the outstanding preferred stock of Global owned by the
Holders on the terms set forth herein; and

     WHEREAS, Global desires to assist Holdings in so acquiring all of the preferred stock of
Global owned by the Holders; and

     WHEREAS, the Holders agree to sell their shares on the terms set forth herein; and

     WHEREAS, the parties hereto intend that the transactions set forth herein be treated as an
exchange under §351 of the Internal Revenue Code of 1986, as amended.

     NOW, THEREFORE, in consideration of the mutual promises, covenants and representations
contained herein, the parties hereto agree as follows:

ARTICLE I

REPRESENTATIONS AND WARRANTIES OF HOLDINGS

     Holdings hereby represents and warrants to Global and the Holders that:

     1.1 Organization. Holdings is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has all necessary corporate powers to own its
properties and to carry on its business as now owned and operated by it.

     1.2 Capital. The authorized capital stock of Holdings consists of (i) 75,000,000 authorized
shares of $0.0001 par value common stock (“Holdings Common Stock”), of which 180,927.835 shares are
issued and outstanding, (ii) 1,000,000 shares of Class A Common Stock, none of which are issued and
outstanding, (iii) 2,300,000 shares of Class B Common Stock, none of which are issued and
outstanding, and (iv) 10,000,000 shares of preferred stock, none of which are issued and
outstanding. All of the outstanding securities of Holdings have been duly and validly issued, and
are fully paid and nonassessable. There are no outstanding subscriptions, options, rights,
warrants, debentures, instruments, convertible securities or other agreements or commitments
obligating Holdings to issue or to transfer from treasury any additional shares of its capital
stock of any class.

     1.3 Subsidiaries. Holdings does not own any interest in any other enterprise.

     1.4 Financial Statements. The financial statements contained in Holdings’ Annual Report on
Form 10-K for the fiscal year ended December 31, 2005 (the “Holdings Financial

 

 

Statements”) have been prepared in accordance with generally accepted accounting principles
and practices in the United States consistently followed by Holdings throughout the periods
indicated, and fairly present the financial position of Holdings as of the dates of the balance
sheets included in the Holdings Financial Statements and the results of operations for the periods
indicated.

     1.5 Absence of Changes. Since December 31, 2005 there has not been any change in the
financial condition or operations of Holdings, other than changes in the ordinary course of
business, which changes have not in the aggregate been materially adverse.

     1.6 Absence of Undisclosed Liabilities. As of the date hereof, Holdings does not have any
material debt, liability or obligation of any nature, whether accrued, absolute, contingent or
otherwise, and whether due or to become due, that is not reflected in the Holdings Financial
Statements.

     1.7 Tax Returns. Holdings has filed all federal, state and local tax returns required by law
and has paid all taxes, assessments and penalties due and payable. There are no present disputes as
to taxes of any nature payable by Holdings.

     1.8 Proprietary Rights. Holdings does not have any patents, trademarks, service marks, trade
names or copyrights.

     1.9 Compliance with Laws. Holdings has complied in all material respects with, and is not in
violation of, applicable federal, state or local statutes, laws and regulations, including federal
and state securities laws. Holdings has filed on a timely basis all filings that would be required
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and
regulations thereunder, if Holdings had been required to make such filings under the Exchange Act.

     1.10 Litigation. Holdings is not a defendant in any suit, action, arbitration or legal,
administrative or other proceeding, or governmental investigation which is pending or, to the best
knowledge of Holdings, threatened against or affecting Holdings or its business, assets or
financial condition. Holdings is not in default with respect to any order, writ, injunction or
decree of any federal, state, local or foreign court, department, agency or instrumentality
applicable to it. Holdings is not engaged in any material litigation to recover monies due to it.

     1.11 Authority. The board of directors of Holdings has authorized the execution of this
Agreement and the consummation of the transactions contemplated herein, and Holdings has full power
and authority to execute, deliver and perform this Agreement, and this Agreement is a legal, valid
and binding obligation of Holdings and is enforceable in accordance with its terms and conditions.
No action by Holdings shareholders is necessary to authorize this Agreement or the transactions
contemplated herein.

     1.12 Ability to Carry Out Obligations. The execution and delivery of this Agreement by
Holdings and the performance by Holdings of its obligations hereunder in the time and manner
contemplated will not cause, constitute or conflict with or result in (i) any breach or

2

 

violation of any of the provisions of or constitute a default under any license, indenture,
mortgage, instrument, article of incorporation, bylaw, or other agreement or instrument to which
Holdings is a party, or by which it may be bound, nor will any consents or authorizations of any
party other than those hereto be required, (ii) an event that would permit any party to any
agreement or instrument to terminate it or to accelerate the maturity of any indebtedness or other
obligation of Holdings, or (iii) an event that would result in the creation or imposition of any
lien, charge or encumbrance on any asset of Holdings.

     1.13 Assets. Holdings has no material assets.

     1.14 Material Contracts. Holdings has no material contracts, as defined in Item 601 of
Regulation S-B under the Exchange Act (“Material Contracts”).

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF GLOBAL

     Global represents and warrants to Holdings that:

     2.1 Organization. Global is a corporation duly organized, validly existing and in good
standing under the laws of Colorado, has all necessary corporate powers to carry on its business as
now owned and operated by it, and is duly qualified to do business and is in good standing in each
of the states where its business requires qualification.

     2.2 Capital. The authorized capital stock of Global consists of (i) 10,000,000 shares of
common stock, $.01 par value (“Common Stock”), 2,693,370 of which are issued and outstanding, (ii)
50,000,000 shares of preferred stock, $.01 par value, of which (a) 7,000,000 have been designated
as Series C Preferred Stock, 6,825,780 of which are outstanding, and (b) 30,000,000 of which have
been designated as Series D Preferred Stock, 21,841,930.34 of which are outstanding. The
outstanding Common Stock, Series C Preferred Stock and Series D Preferred Stock are referred to
collectively as the “Global Shares.” All of the outstanding Global Shares have been duly and
validly issued, and are fully paid and nonassessable. Except as set forth on Schedule 2.2,
there are no other outstanding subscriptions, options, rights, warrants, debentures, instruments,
convertible securities or other agreements or commitments obligating Global to issue or to transfer
from treasury any additional shares of its capital stock of any class.

     2.3 Subsidiaries. All of Global’s subsidiaries are set forth on Schedule 2.3.

     2.4 Financial Statements. Schedule 2.4 hereto consists of the audited financial
statements of Global for the year ended January 1, 2006 (the “Global Financial Statements”). The
Global Financial Statements have been prepared in accordance with generally accepted accounting
principles and practices consistently followed by Global throughout the period indicated, and
fairly present the financial position of Global as of January 1, 2006 and the results of operations
for the year ended January 1, 2006.

3

 

     2.5 Absence of Changes. Except as contemplated by this Agreement, since January 1, 2006,
there has not been any material change in the financial condition or operations of Global, except
for changes in the ordinary course of business.

     2.6 Absence of Undisclosed Liabilities. As of January 1, 2006, Global did not have any
material debt, liability or obligation of any nature, whether accrued, absolute, contingent or
otherwise, and whether due or to become due, that is not reflected in the Global Financial
Statements.

     2.7 Tax Returns. Within the times and in the manner prescribed by law, Global has filed all
federal, state and local tax returns required by law and has paid all taxes, assessments, and
penalties due and payable.

     2.8 Proprietary Rights. Global owns and holds all necessary trademarks, service marks, trade
names, copyrights, patents and proprietary information and other rights necessary or material to
its business as now conducted or proposed to be conducted.

     2.9 Compliance with Laws. Global has complied in all material respects with, and is not in
violation of, applicable federal, state or local statutes, laws or regulations including federal
and state securities laws.

     2.10 Litigation. Global is not a defendant in any material suit, action, arbitration, or
legal, administrative or other proceeding, or governmental investigation which is pending or, to
the best knowledge of Global, threatened against or affecting Global or its business, assets or
financial condition. Global is not in default with respect to any order, writ, injunction or
decree of any federal, state, local or foreign court, department, agency or instrumentality
applicable to it. Global is not engaged in any material litigation to recover monies due to it.

     2.11 Authority. The board of directors of Global has authorized the execution of this
Agreement and the transactions contemplated herein, and Global has full power and authority to
execute, deliver and perform this Agreement, and this Agreement is the legal, valid and binding
obligation of Global, and is enforceable in accordance with its terms and conditions.

     2.12 Ability to Carry Out Obligations. The execution and delivery of this Agreement by Global
and the performance by Global of its obligations hereunder will not cause, constitute or conflict
with or result in (i) any breach or violation of any of the provisions of or constitute a default
under any license, indenture, mortgage, instrument, article of incorporation, bylaw or other
agreement or instrument to which Global is a party, or by which it may be bound, nor will any
consents or authorization of any party other than those hereto be required, (ii) an event that
would permit any party to any agreement or instrument to terminate it or to accelerate the maturity
of any indebtedness or other obligation of Global, or (iii) an event that would result in the
creation or imposition of any lien, charge or encumbrance on any asset of Global.

     2.13 Assets. Except as set forth on Schedule 2.13, Global has good and marketable
title to all of its property, free and clear of all liens, claims and encumbrances.

4

 

     2.14 Material Contracts. Schedule 2.14 sets forth all of Global’s Material Contracts.

ARTICLE III

CONDITIONS PRECEDENT TO GLOBAL’S AND THE HOLDERS’ PERFORMANCE

     3.1 Conditions. Global’s and the Holders’ obligations hereunder shall be subject to the
satisfaction at or before the closing of the transaction contemplated hereby (the “Closing”) of all
the conditions set forth in this Article III. Global may waive (for itself and on behalf of the
Holders) any or all of these conditions in whole or in part without prior notice; provided,
however, that no such waiver of a condition shall constitute a waiver by Global or the Holders of
any other condition or any of Global’s and the Holders’ other rights or remedies, at law or in
equity, if Holdings shall be in default of any of its representations, warranties or covenants
under this Agreement.

	 	(a)	 	Accuracy of Representations. Except as otherwise permitted by this Agreement,
all representations and warranties by Holdings in this Agreement or in any written
statement that shall be delivered to Global by Holdings under this Agreement shall be
true and accurate on and as of the Closing Date as though made at that time.
	 
	 	(b)	 	Performance. Holdings shall have performed, satisfied and complied with all
covenants, agreements and conditions required by this Agreement to be performed or
complied with by it on or before the Closing Date.
	 
	 	(c)	 	Absence of Litigation. No action, suit, or proceeding before any court or any
governmental body or authority, pertaining to the transaction contemplated by this
Agreement or to its consummation, shall have been instituted or threatened against
Global or Holdings on or before the Closing Date.
	 
	 	(d)	 	Officer’s Certificate. Holdings shall have delivered to Global a certificate
signed by the President of Holdings certifying that each of the conditions specified in
this Article has been fulfilled and that all of the representations set forth in
Article I are true and correct as of the Closing Date.

ARTICLE IV

CONDITIONS PRECEDENT TO HOLDINGS’ PERFORMANCE

     4.1 Conditions. Holdings’ obligations hereunder shall be subject to the satisfaction at or
before the Closing of all the conditions set forth in this Article IV. Holdings may waive any or
all of these conditions in whole or in part without prior notice; provided, however, that no such
waiver of a condition shall constitute a waiver by Holdings of any other condition or any of
Holdings’ other rights or remedies, at law or in equity, if Global or the Holders shall be in
default of any of its representations, warranties or covenants under this Agreement.

5

 

	 	(a)	 	Accuracy of Representations. Except as otherwise permitted by this Agreement,
all representations and warranties by Global in this Agreement or in any written
statement that shall be delivered to Holdings by Global under this Agreement shall be
true and accurate on and as of the Closing Date as though made at that time.
	 
	 	(b)	 	Performance. Global shall have performed, satisfied and complied with all
covenants, agreements and conditions required by this Agreement to be performed or
complied with by it on or before the Closing Date.
	 
	 	(c)	 	Absence of Litigation. No action, suit or proceeding before any court or any
governmental body or authority, pertaining to the transaction contemplated by this
Agreement or to its consummation, shall have been instituted or threatened against
Global or Holdings on or before the Closing Date.
	 
	 	(d)	 	Officer’s Certificate. Global shall have delivered to Holdings a certificate
dated the Closing Date and signed by the Chief Executive Officer of Global certifying
that each of the conditions specified in this Article has been fulfilled and that all
of the representations set forth in Article II are true and correct as of the Closing
Date.
	 
	 	(e)	 	Holders holding at least 90% of the Global Shares shall have entered into this
Agreement.
	 
	 	(f)	 	Board of Directors. The board of directors of Holdings shall consist solely of
Howard Brill, Charles Gwirtsman, Luci Staller Altman, Steven List and Jay Wells, and
all members of Holdings’ board directors prior to the Closing shall have resigned as
directors.
	 
	 	(g)	 	Declaration of Special Dividend. Holdings board of directors shall have
declared a dividend of $25.58528 per share of Class A Common Stock and $3.21374 per
share of Class B Common Stock, payable to each of the Holders immediately following the
Closing (the “Special Dividend”).
	 
	 	(h)	 	Private Placements. On the Closing Date, Holdings shall have completed a
private placement of (i) its preferred shares raising gross proceeds of at least
$12,750,000 and on terms acceptable to Global, (ii) its common shares raising gross
proceeds of at least $4,250,000 and (ii) its convertible notes raising gross proceeds
of $30,000,000 and on terms acceptable to Global (together, the “Private Placements”).
	 
	 	(i)	 	Wells Fargo Agent. On the Closing Date, Global’s senior credit facility with
Wells Fargo Business Credit shall have been amended to permit borrowings of up to
$20,000,000.

6

 

ARTICLE V

CLOSING

     5.1 Closing. The Closing shall be held at the offices of Brownstein Hyatt & Farber, P.C., as
soon as practicable following satisfaction or waiver of all the conditions set forth in Articles IV
and V, unless extended by agreement of Holdings and Global. At the Closing:

	 	(a)	 	Exchange of Global Shares for Holdings Shares. Holdings shall exchange
0.12737 shares of its Class A Common Stock for each share of Global Series C
Preferred Stock and 0.09479 shares of its Class B Common Stock for each share of Global
Series D Preferred Stock held by each Holder.
	 
	 	(b)	 	Global Dividend. The Special Dividend shall be paid to the Holders.
	 
	 	(c)	 	Restricted Stock Plan Participants. Each Holder that is a participant in
Global’s Restricted Stock Plan shall exchange his or her shares of Common Stock for the
amount of cash and Holdings Common Stock set forth opposite his or her name on
Schedule A hereto. Each such Holder acknowledges that the receipt of such cash
and Holdings Common Stock will satisfy all of Global’s obligations to such Holder under
Global’s Certificate of Incorporation, Global’s Series C Preferred Stock, Global’s
Series D Preferred Stock, the Restricted Stock Plan and the Master Investment Agreement
dated as of November 15, 2001, by and among Global, Global Investment I, LLC and the
other parties identified therein.
	 
	 	(d)	 	Retirement of Subordinated Debt. Holdings shall retire all of Global’s
subordinated debt listed on Schedule 5.1 by issuing the number of shares of
Holdings Common Stock and paying the dollar amount set forth opposite each item of
subordinated debt, and each holder of subordinated debt shall acknowledge in writing
that such item of subordinated debt is completely retired and satisfied in full.
	 
	 	(e)	 	Cancellation of Warrants and Options. Each Holder who holds warrants or
options to acquire Global Shares hereby acknowledges that in consideration of the
Holdings Common Stock and the Special Dividend received by such Holder, such warrants
or options are hereby forfeited to Global and cancelled, without any further action
required.

ARTICLE VI

COVENANTS SUBSEQUENT TO THE CLOSING DATE

     6.1 Listing. As soon as practicable following the Closing Date, Holdings shall use reasonable
commercial efforts to list the Holdings Common Stock on the National Association of Securities
Dealers, Inc.’s OTC Bulletin Board.

7

 

     6.2 Registration of Shares. Holdings shall file a registration statement with the Securities
and Exchange Commission on Form S-1 or other appropriate form to register the resale of the
Holdings Common Stock issued to the holders at the Closing, provided that Holdings shall not permit
such registration statement to become effective sooner than two years from the Closing Date.

ARTICLE VII

TERMINATION

     7.1 Termination. This Agreement may be terminated, and the transactions contemplated hereby
may be abandoned, at any time prior to the Closing, whether before or after approval by the
stockholders of Holdings:

     (a) by mutual written consent of Holdings and Global;

     (b) 
by either Holdings or Global, if the Closing shall not have been consummated on or before
April 30, 2006 (unless, in the case of any such termination pursuant to this Section 7.1(b), the
failure of such event to occur shall have been caused by the action or failure to act of the party
seeking to terminate this Agreement, which action or failure to act constitutes a breach of such
party’s obligations under this Agreement);

     (c) 
by either Holdings or Global, if any permanent injunction, order, decree or ruling by any
governmental entity of competent jurisdiction preventing the consummation of the Closing shall have
become final and nonappealable; provided, however, that the party seeking to terminate this
Agreement pursuant to this Section 7.1(c) shall have used its reasonable best efforts to remove
such injunction or overturn such action;

     (d) 
by Holdings, if there has been a material breach by Global of any of its representation or
warranties, or covenants or agreements set forth in this Agreement, which breach is not curable or,
if curable, is not cured within 45 days after written notice of such breach is given by Holdings to
Global;

     (e) 
by Global, if there has been a material breach by Holdings of any of its representations
or warranties, covenants or agreements set forth in this Agreement, which breach is not curable or,
if curable, is not cured within 45 days after written notice of such breach is given by the Company
to Parent; and

     (f) 
by Global or Holdings, if its respective board of directors shall determine, in good faith
and after consultation with outside counsel, that failure to terminate this Agreement may be
inconsistent such board’s fiduciary duties.

     7.2 
Effect of Termination. In the event of termination of this Agreement pursuant to this
Article VII, the transactions contemplated hereby shall be deemed abandoned and this Agreement
shall forthwith become void, except that the provisions of Section 8.11 shall survive

8

 

any termination of this Agreement; provided, however, that nothing in this Agreement shall
relieve any party from liability for any material breach of this Agreement.

ARTICLE VIII

MISCELLANEOUS

     8.1 Captions and Headings. The Article and Section headings throughout this Agreement are for
convenience and reference only and shall not define, limit or add to the meaning of any provision
of this Agreement.

     8.2 No Oral Change. This Agreement and any provision hereof may not be waived, changed,
modified or discharged orally, but only by an agreement in writing signed by the party against whom
enforcement of any such waiver, change, modification or discharge is sought.

     8.3 Non-Waiver. The failure of any party to insist in any one or more cases upon the
performance of any of the provisions, covenants or conditions of this Agreement or to exercise any
option herein contained shall not be construed as a waiver or relinquishment for the future of any
such provisions, covenants or conditions. No waiver by any party of one breach by another party
shall be construed as a waiver with respect to any other subsequent breach.

     8.4 Time of Essence. Time is of the essence of this Agreement and of each and every provision
hereof.

     8.5 Entire Agreement. This Agreement contains the entire Agreement and understanding between
the parties hereto and supersedes all prior agreements and understandings.

     8.6 Choice of Law. This Agreement and its application shall be governed by the laws of the
state of Colorado.

     8.7 Counterparts. This Agreement may be executed simultaneously in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

     8.8 Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given on the date of service if served
personally on the party to whom notice is to be given, or on the next business day when delivered
to a recognized overnight courier service:

To Global or the Holders:

Global Employment Solutions, Inc.

9090 Ridgeline Boulevard, Suite 205

Littleton, Colorado 80129

Attn: Howard Brill, Chief Executive Officer

9

 

Fax: (303) 216-9594

With copies to:

KRG Capital Partners, LLC

The Park Central Building

1515 Arapahoe Street

Tower One, Suite 1500

Denver, CO 80202

Attn: Charles Gwirtsman

Fax: (303) 390-5015

Brownstein Hyatt & Farber, P.C.

410 17th Street, 22nd Floor

Denver, CO 80202

Attn: Jeff Knetsch

Fax: (303) 224-0960

To Holdings:

With a copy to:

Morse Zelnick Rose & Lander, LLP

405 Park Avenue

New York, NY 10022

Attn: Kenneth Rose

Fax: (212) 838-9190

     8.9 Binding Effect. This Agreement shall inure to and be binding upon the heirs, executors,
personal representatives, successors and assigns of each of the parties to this Agreement.

     8.10 Mutual Cooperation. The parties hereto shall cooperate with each other to achieve the
purpose of this Agreement and shall execute such other and further documents and take such other
and further actions as may be necessary or convenient to effect the transaction described herein.

     8.11 Expenses. Each party shall bear its own costs and expenses in connection with this
Agreement and the transactions contemplated hereby.

     8.12 Finders. The parties hereto represent that no finder has brought about this Agreement,
and no finder’s fee has been paid or is payable by either party except for payments to be paid by
Global to Ewing Bemiss & Co. and Rodman & Renshaw, LLC.

     8.13 Announcements. The parties will consult and cooperate with each other as to the timing
and content of any public announcements regarding this Agreement.

10

 

     8.14 No Survival of Representations and Warranties. The representations and warranties of the
parties set forth in this Agreement shall not survive the Closing.

11

 

          In witness whereof, the parties have executed this Agreement on the date indicated above.

	 	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT SOLUTIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Howard Brill

Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Arnold Kling	 	 
	 

	 	 	 	President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SHAREHOLDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	Please Print Exact Name of Holder:	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Please Print Exact Name of

Authorized Signatory, if any:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Second Signature if held jointly:

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