Document:

Exhibit 109

    

     

    

     

    STOCK
      PURCHASE AGREEMENT

     

    

     

    By
      and among

     

    

     

    ELS
      HUMAN RESOURCE SOLUTIONS, INC.,

     

    

     

    SCOTT
      D. HORNE

     

    and

     

    STEPHEN
      R. ROUX

     

    

     

    

    

     

    

     

    As
      of October 1, 2006

    

    TABLE
      OF
      CONTENTS

     

    ARTICLE
      I. SALE AND PURCHASE OF STOCK

    Section
      1.01 Sale
      and Purchase of Stock.

    Section
      1.02 Purchase
      Price and Payment for Stock.

    ARTICLE
      II. CLOSING

    Section
      2.01 Closing

    Section
      2.02 Deliveries
      by Shareholders to Purchaser

    Section
      2.03 Deliveries
      by Purchaser

    Section
      2.04 Waivers

    ARTICLE
      III. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

    Section
      3.01 Corporate
      Existence and Qualification: Corporate Documents.

    Section
      3.02 Capitalization
      and Ownership

    Section
      3.03 Preemptive
      Rights; Registration Rights

    Section
      3.04 No
      Company Defaults or Consents

    Section
      3.05 No
      Proceedings

    Section
      3.06 Liabilities
      and Obligations

    Section
      3.07 Employee
      Matters.

    Section
      3.08 Employee
      Benefit Matters.

    Section
      3.09 Absence
      of Certain Changes

    Section
      3.10 Insurance

    Section
      3.11 Patents,
      Trademarks, Service Marks and Copyrights.

    Section
      3.12 Title
      to Assets; Condition of Assets.

    Section
      3.13 Compliance
      with Laws

    Section
      3.14 Litigation;
      Default

    Section
      3.15 Customers

    Section
      3.16 Other
      Transactions

    Section
      3.17 Tax
      Matters.

    Section
      3.18 Title
      to the Shares

    Section
      3.19 Authority
      to Execute and Perform Agreement

    Section
      3.20 No
      Shareholder Defaults or Consents

    Section
      3.21 Books
      and Records

    Section
      3.22 Contracts

    ARTICLE
      IV. REPRESENTATIONS AND WARRANTIES OF PURCHASER

    Section
      4.01 Corporate
      Existence and Qualification; Corporate Documents

    Section
      4.02 Authority,
      Approval and Enforceability

    Section
      4.03 No
      Defaults or Consents

    Section
      4.04 No
      Proceedings

    ARTICLE
      V. SURVIVAL

    Section
      5.01 Survival
      of Representations and Warranties

    ARTICLE
      VI. INDEMNIFICATION

    Section
      6.01 Obligation
      of the Shareholders to Indemnify

    Section
      6.02 Obligation
      of Purchaser to Indemnify

    Section
      6.03 Notice
      and Opportunity to Defend.

    Section
      6.04 Limitations
      on Indemnification

    ARTICLE
      VII. POST-CLOSING OBLIGATIONS

    Section
      7.01 Further
      Assurances

    Section
      7.02 Access
      to Records

    Section
      7.03 Tax
      Returns

    ARTICLE
      VIII. MISCELLANEOUS

    Section
      8.01 Brokers

    Section
      8.02 Costs
      and Expenses

    Section
      8.03 Notices

    Section
      8.04 Governing
      Law

    Section
      8.05 Entire
      Agreement, Amendments and Waivers

    Section
      8.06 Binding
      Effect and Assignment

    Section
      8.07 Remedies

    Section
      8.08 Exhibits
      and Schedules

    Section
      8.09 Multiple
      Counterparts

    Section
      8.10 References

    Section
      8.11 Survival

    ARTICLE
      IX. DEFINITIONS

    Section
      9.01 Affiliate

    Section
      9.02 Company
      Assets

    Section
      9.03 Governmental
      Authorities

    Section
      9.04 Knowledge

    Section
      9.05 Legal
      Requirements

    Section
      9.06 Material
      Adverse Change

    Section
      9.07 Material
      Adverse Effect

    Section
      9.08 Permits

    Section
      9.09 Properties

    Section
      9.10 Regulations

    Section
      9.11 Taxes
      or Tax

    Section
      9.12 Tax
      Returns

    Section
      9.13 Used

    

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    

    This
      STOCK PURCHASE AGREEMENT (the “Agreement”)
      is
      made and entered into as of October 1, 2006, by and among ELS Human Resource
      Solutions, Inc., an Ohio corporation (the “Purchaser”),
      Scott
      R. Horne (“Horne”)
      and
      Stephen R. Roux (“Roux”
and
      together with Horne, collectively, the “Shareholders”).

     

    Preliminary
      Statements

     

    A.  Thee
      Shareholders have agreed to sell, and the Purchaser has agreed to purchase,
      all
      of the issued and outstanding capital stock owned by them (collectively
“Stock”)
      of the
      following companies (each a “Company”
and
      collectively, the “Companies”),
      subject to the conditions hereinafter set forth:

     

    1. ELS
      Outsource Services, Inc., a Michigan corporation;

    2. Integrated
      Payroll Solutions, Inc., a Michigan corporation;

    3. Rio
      Services, Inc., a Michigan corporation;

    4. Imperial
      Human Resources, Inc., a Michigan corporation;

    5. Luxor
      Solutions, Inc., a Michigan corporation; and

    6. ELS
      Advantage, Inc, a Michigan corporation.

    

    B.  Capitalized
      terms used herein but not defined herein shall have the respective meanings
      given such terms in Article IX hereof.

     

    Agreement

     

    In
      consideration of the premises, mutual covenants and agreements contained herein
      and the benefits to accrue to the parties hereto, and subject to the
      satisfaction or waiver of the conditions contained herein, the parties hereto
      hereby agree as follows:

     

    ARTICLE
      I.  

    SALE
      AND PURCHASE OF STOCK

    Section
      1.01  Sale
      and Purchase of Stock.

     

    (a)  On
      the
      terms and subject to the conditions of this Agreement, at the Closing referred
      to in Section 2.01 hereof, each Shareholder shall sell, transfer, convey and
      deliver to Purchaser, and Purchaser shall purchase, acquire and accept from
      each
      Shareholder, the number and type of shares of Stock set forth opposite the
      name
      of each such Shareholder on Exhibit
      A
      hereto,
      collectively constituting all of the issued and outstanding shares of Stock
      of
      the Companies. The sale and purchase of the Stock pursuant to this Agreement
      is
      sometimes hereinafter referred to as the “Stock
      Purchase.”

     

    (b)  To
      effect
      the transfers contemplated by Section 1.01(a), at the Closing, each Shareholder
      shall deliver, or cause to be delivered, to Purchaser stock certificates
      representing the Stock being sold by such Shareholder hereunder, together with
      stock powers duly executed in blank or otherwise in proper form reasonably
      acceptable to Purchaser for transfer to Purchaser on the books of the Company,
      against payment therefor in accordance with Section 1.02 hereof.

     

    Section
      1.02  Purchase
      Price and Payment for Stock.

     

    (a)  Purchase
      Price.
      The
      purchase price for the issued and outstanding shares of Stock to be purchased
      hereunder shall be an aggregate amount equal to Two Dollars ($2.00) (the
“Purchase
      Price”).
      The
      Purchase Price shall be allocated among and delivered to the Shareholders as
      set
      forth on Exhibit
      B
      hereto.

     

    (b)  The
      Purchase Price shall be paid upon the surrender pursuant to Section 1.01(b)
      of
      certificates representing all of the issued and outstanding shares of Stock
      owned by the Shareholders, by cash.

     

    ARTICLE
      II.  

    CLOSING

    Section
      2.01  Closing

     

    .
      The
      closing of the transactions contemplated hereby (the “Closing”)
      shall
      be held as of 12:01 a.m., as of October 1, 2006 at the offices of Taft,
      Stettinius & Hollister LLP, 425 Walnut Street, Suite 1800, Cincinnati, Ohio
      45202, unless another date or place is agreed to in writing by the parties
      hereto. The date upon which the Closing occurs is hereinafter referred to as
      the
“Closing
      Date.”

     

    Section
      2.02  Deliveries
      by Shareholders to Purchaser

     

    .
      At the
      Closing, the Shareholders shall deliver to Purchaser:

     

    (a)  certificates
      representing all of the issued and outstanding shares of Stock, together with
      stock powers duly executed for transfer to Purchaser;

     

    (b)  the
      resignations of all officers and members of the board of directors of the
      Companies;

     

    (c)  the
      stock
      books, stock ledgers, minute books and corporate seals, if any of the
      Companies;

     

    (d)  a
      certificate of the Secretary of each Company certifying, as complete and
      accurate as of the Closing, as to attached copies of the Articles of
      Incorporation and Bylaws of such Company; and

     

    (e)  a
      certificate of good standing of each Company issued by the Secretary of State
      of
      such Company’s jurisdiction of incorporation.

     

    Section
      2.03  Deliveries
      by Purchaser

     

    .
      At
      the
      Closing, Purchaser shall deliver to the Shareholders:

     

    (a)  The
      Purchase Price;

     

    (b)  a
      certificate of the Secretary of Purchaser certifying, as complete and accurate
      as of the Closing, as to attached copies of the Articles of Incorporation and
      Bylaws of Purchaser and all necessary corporate action on behalf of Purchaser
      approving its execution, delivery and
      performance of this Agreement and the other agreements being delivered pursuant
      to this Agreement;

     

    (c)  a
      certificate of good standing of Purchaser issued by the Secretary of State
      of
      Ohio; and

     

    (d)  a
      certificate of good standing of Resolve issued by the Secretary of State of
      Nevada.

     

    Section
      2.04  Waivers

     

    .
      Each
      of
      the Shareholders and each applicable Company hereby waives compliance with
      any
      requirements or restrictions with respect to the sale or transfer of any Stock
      contained in each such Company’s Articles of Incorporation, By-Laws, Code of
      Regulations or in any agreement disclosed in Schedule 3.02.

     

    ARTICLE
      III.  

    REPRESENTATIONS
      AND WARRANTIES OF THE SHAREHOLDERS

    Subject
      to the limitations of Section 6.04 hereof, each Shareholder severally represents
      and warrants to Purchaser as of the Closing Date as set forth in this
      Article:

     

    Section
      3.01  Corporate
      Existence and Qualification: Corporate Documents.

     

    (a)  Each
      Company is duly organized, validly existing and in good standing under the
      laws
      of its state of incorporation and is not required to be qualified to do business
      as a foreign corporation in any other jurisdiction where the failure to so
      qualify would have a material adverse effect on such Company. Each Company
      has
      all requisite corporate power and authority to own its Properties and carry
      on
      its business as presently conducted. The copies of the Articles of Incorporation
      and Bylaws or Code of Regulations of each Company attached to the Secretary’s
      Certificate for such Company delivered pursuant to Section 2.02(d) are complete
      and reflect all amendments thereto through the date hereof.

     

    (b)  The
      stock
      and minute books of each Company have been made available to Purchaser for
      review and contain a complete and accurate record of all shareholders of such
      Company and all material actions of the shareholders and directors (and any
      committees thereof) taken at meetings of shareholders or directors of the
      Company or by written consent.

     

    (c)  No
      Company has any subsidiaries, participates in any partnership or joint venture,
      or owns any outstanding capital stock of any other entity.

     

    Section
      3.02  Capitalization
      and Ownership

     

    .
      As of
      the date of this Agreement, all issued and outstanding shares of Stock are
      owned
      of record and beneficially by the Shareholders as shown on Exhibit
      A
      hereto.
Exhibit
      A
      also
      lists the entire authorized capital stock of each of the Companies. All of
      the
      presently outstanding shares of Stock have been validly authorized and issued
      and are fully paid and non-assessable. Except as set forth on Schedule 3.02,
      no
      Company has issued any other shares of its capital stock and there are no
      outstanding options, warrants, subscriptions or other rights or obligations
      to
      purchase or acquire any of such shares, nor any outstanding securities
      convertible into or exchangeable for such shares. Except as contemplated under
      this Agreement, or as set forth in Schedule 3.02 with respect to the Articles
      of
      Incorporation, By-Laws and certain agreements, there are no agreements to which
      any Company or any Shareholder is a party regarding the issuance, registration,
      voting or transfer of its outstanding shares of its capital stock. No dividends
      are accrued but unpaid on any capital stock of any Company.

     

    Section
      3.03  Preemptive
      Rights; Registration Rights

     

    .
      No
      Company’s Articles of Incorporation afford pre-emptive rights to any
      shareholder. There have been no shares of any Company issued, other than to
      the
      Shareholders, to which preemptive rights accrued or are outstanding. There
      are
      no registration rights affecting the issuance or sale of the Stock.

     

    Section
      3.04  No
      Company Defaults or Consents

     

    .
      Neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (i)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Bylaws of any Company;

     

    (ii)  violate
      in any material respect any Legal Requirements applicable to any
      Company;

     

    (iii)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of any Company; or

     

    (iv)  require
      any of the Shareholders or any Company to obtain or make any waiver, consent,
      action, approval or authorization of, or registration, declaration, notice
      or
      filing with, any private non-governmental third party or any Governmental
      Authority except where the failure to so obtain or make would not have a
      Material Adverse Effect.

     

    Section
      3.05  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of the
      Shareholders, threatened before any Governmental Authority seeking to restrain
      any of the Shareholders or prohibit their entry into this Agreement or prohibit
      the Closing, or seeking damages against any Company or its Properties, as a
      result of the consummation of the transactions contemplated by this
      Agreement.

     

    Section
      3.06  Liabilities
      and Obligations

     

    .
      The
      financial statements of each Company reflect all material liabilities of ELS
      arising out of transactions effected or events occurring on or prior to August
      31, 2006, except for liabilities not exceeding $10,000 in the aggregate. All
      reserves shown in the Financial Statements are appropriate and reasonable to
      provide for losses thereby contemplated. 

     

    Section
      3.07  Employee
      Matters.

     

    (a)  The
      Shareholders previously have delivered to Purchaser a complete and accurate
      list
      of the names, titles and compensation of all employees of each Company (other
      than the Shareholders and the temporary employees who are hired to be assigned
      to work for customers) (collectively, the “Section
      3.07 Employees”)
      and
      copies of each written employment agreement entered into between any Company
      and
      its Section 3.07 Employees (the “Employment
      Agreements”).

     

    (b)  The
      Shareholders previously have provided Purchaser with a complete and accurate
      list of all written employee policies and procedures in effect for each
      Company.

     

    (c)  To
      the
      Knowledge of the Shareholders, no unwritten material amendments have been made,
      whether by oral communication, pattern of conduct or otherwise, with respect
      to
      the Employment Agreements or employee policies and procedures in
      effect.

     

    (d)  Each
      Company (i) has been and is in material compliance with all applicable laws,
      rules, regulations and ordinances respecting employment and employment
      practices, terms and conditions of employment and wages and hours, and (ii)
      is
      not liable in any material amount for any arrears of wages or penalties for
      failure to comply with any of the foregoing.
      No
      Company has engaged in any unfair labor practice or discriminated on the basis
      of race, color, religion, sex, national origin, age or handicap in its
      employment conditions or practices. There are no (A) unfair labor practice
      charges or complaints or racial, color, religious, sex, national origin, race
      or
      handicap discrimination charges or complaints pending or, to the Knowledge
      of
      the Shareholders, threatened against any Company before the National Labor
      Relations Board or any similar state or foreign commission or agency or (B)
      existing or threatened material labor strikes, disputes, grievances or
      controversies against any Company or any of its respective
      employees.

     

    (e)  No
      Company is, nor has it been, a party to any agreement with any union, labor
      organization or collective bargaining unit.
      No
      employee of any Company is represented by any union, labor organization or
      collective bargaining unit. To the Knowledge of the Shareholders, no remaining
      employees of any Company have threatened to organize or join a union, labor
      organization or collective bargaining unit.

     

    Section
      3.08  Employee
      Benefit Matters.

     

    (a)  The
      Shareholders previously have delivered to Purchaser a complete and accurate
      list
      of all Employee Benefit Plans sponsored by any Company or an ERISA Affiliate
      or
      to which any Company or an ERISA Affiliate contributes on behalf of its
      employees. No unwritten amendment exists with respect to any Employee Benefit
      Plan. For purposes of this Agreement an “Employee
      Benefit Plan”
means
      each employee benefit plan, as such term is defined in Section 3(3) of the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
      maintained by any Company or an ERISA Affiliate; provided, however, that with
      respect to the representations and warranties set forth in subsection (b) of
      this Section, “Employee
      Benefit Plan”
shall
      exclude any and all “multiemployer plans” within the meaning of Section 3(37) of
      ERISA. For purposes of this Agreement, an “ERISA
      Affiliate”
means
      any corporation who is a member of a controlled group of corporations (as
      defined in Code §414(b)) that includes any Company, any trades or businesses
      (whether or not incorporated) which are under common control (as defined in
      Code
§414(c)) with any Company, any entity that is a member of an affiliated service
      group (as defined in Code §414(m)) that includes any Company, or any other
      entity that is an arrangement described in Code §414(o) that include any
      Company.

     

    (b)  To
      the
      Knowledge of the Shareholders, each Employee Benefit Plan has been administered
      and maintained in material compliance with all applicable laws, rules and
      regulations. To the Knowledge of the Shareholders, no Employee Benefit Plan
      is
      currently the subject of an audit, investigation, enforcement action or other
      similar proceeding conducted by any state or federal agency. To the Knowledge
      of
      the Shareholders, no prohibited transaction (within the meaning of Section
      4975
      of the Internal Revenue Code of 1986, as amended, and the regulations
      promulgated thereunder (the “Code”))
      has
      occurred with respect to any Employee Benefit Plan. No pending or, to the
      Knowledge of the Shareholders, threatened, claims, suits or other proceedings
      exist with respect to any Employee Benefit Plan other than normal benefit claims
      filed by participants or beneficiaries. All contractual obligations relating
      to
      the Employee Benefit Plans are terminable by the applicable Company with no
      more
      than 30 days notice and without cause or penalty. All required contributions
      to,
      and premium payments on account of, each Employee Benefit Plan have been made
      on
      a timely basis. The consummation of the transactions contemplated under this
      Agreement will not, by itself or together with any other event, increase the
      amount of or accelerate the vesting or payment of any benefit under any Employee
      Benefit Plan or Employment Agreement.

     

    (c)  Neither
      any Company nor any ERISA Affiliate has maintained, contributed to or otherwise
      participated in, or has any liability or obligation with respect to, any
      multiemployer plan within the meaning of Section 3(37) of ERISA.

     

    Section
      3.09  Absence
      of Certain Changes

     

    .
      Since
      August 31, 2006, no Company has:

     

    (a)  suffered
      any Material Adverse Change;

     

    (b)  contracted
      for the purchase of any capital assets having a cost in excess of $10,000 or
      paid any capital expenditures in excess of $10,000, except in the ordinary
      course of business consistent with past practice;

     

    (c)  incurred
      any indebtedness for borrowed money or issued or sold any debt securities,
      except in the ordinary course of business consistent with past
      practice;

     

    (d)  incurred
      or discharged any material liabilities or obligations except in the ordinary
      course of business consistent with past practice;

     

    (e)  paid
      any
      amount on any indebtedness prior to the due date, forgiven or canceled any
      material debts or claims or released or waived any material rights or claims,
      except in the ordinary course of business consistent with past
      practice;

     

    (f)  mortgaged,
      pledged or subjected to any security interest, lien, lease or other charge
      or
      encumbrance any of its Properties or Company Assets;

     

    (g)  suffered
      any damage or destruction to or loss of any Company Assets (whether or not
      covered by insurance) that has materially adversely affected its
      business;

     

    (h)  acquired
      or disposed of any material Company Assets except in the ordinary course of
      business consistent with past practice;

     

    (i)  increased
      the compensation of any Section 3.08 Employee except in the ordinary course
      of
      business;

     

    (j)  made
      any
      payments to any person or entity except in the ordinary course of business
      consistent with past practice or loaned any money to any person or entity that
      is not reflected in the Financial Statements;

     

    (k)  formed
      or
      acquired or disposed of any interest in any corporation, partnership, joint
      venture or other entity;

     

    (l)  redeemed,
      purchased or otherwise acquired, or sold, granted or otherwise disposed of,
      directly or indirectly, any of its capital stock or securities or any rights
      to
      acquire such capital stock or securities, or agreed to change the terms and
      conditions of any such rights or paid any dividends or made any distribution
      to
      the holders of such Company’s capital stock;

     

    (m)  entered
      into or terminated any material agreement with any person or group, or modified
      or amended in any material respect the terms of any existing agreement except
      in
      the ordinary course of business consistent with past practice;

     

    (n)  entered
      into, adopted or amended any Employee Benefit Plan in any material
      respect;

     

    (o)  received
      any indication from any customer or supplier that it intends to discontinue
      or
      change the terms of its relationship with such Company;

     

    (p)  materially
      changed its accounting methods; or

     

    (q)  entered
      into any agreement (written or oral) to do any of the foregoing.

     

    Section
      3.10  Insurance

     

    .
      The
      Shareholders have previously made available to Purchaser a list of all insurance
      policies (including self insurance arrangements) with respect to the property,
      assets and operations of each Company’s business and a summary of the loss
      experience of each Company. All such insurance policies and arrangements are
      in
      full force and effect. There are no pending claims by any Company relating
      to
      its business under such insurance policies as to which the insurers listed
      thereon have denied liability.

     

    Section
      3.11  Patents,
      Trademarks, Service Marks and Copyrights.

     

    (a)  Each
      Company owns all material patents, trademarks, service marks and copyrights
      (collectively “Proprietary
      Rights”),
      if
      any, necessary to conduct its business, or possesses adequate licenses or other
      rights (except for licenses for the use of non-customized software), if any,
      therefor, without conflict with the rights of others. 

     

    (b)  To
      the
      Knowledge of the Shareholders, each Company has the sole and exclusive right
      to
      use the Proprietary Rights without infringing or violating the rights of any
      third parties.
      To the
      Knowledge of the Shareholders, use of the Proprietary Rights does not require
      the consent of any other person and the Proprietary Rights are freely
      transferable. No claim has been asserted by any person to the ownership of
      or
      right to use any material Proprietary Right or challenging or questioning the
      validity or effectiveness of any license or agreement constituting a part of
      any
      material Proprietary Right. To the Knowledge of the Shareholders, each of the
      Proprietary Rights is valid and subsisting, has not been canceled, abandoned
      or
      otherwise terminated and, if applicable, has been duly issued or
      filed.

     

    Section
      3.12  Title
      to Assets; Condition of Assets.

     

    (a)  No
      Company owns any real property.

     

    (b)  Each
      Company has good and marketable title to its Company Assets (other than those
      disposed of in the ordinary course of business), free and clear of all security
      interests, liens, charges and other encumbrances, except for liens for taxes
      not
      yet due and payable or being contested in good faith in appropriate proceedings.
      All material facilities, machinery, equipment, fixtures, vehicles and other
      properties owned, leased or used by such Company are in good operating condition
      and repair, normal wear and tear excepted, are adequate and sufficient for
      the
      business of such Company and conform in all material respects with all
      applicable ordinances, regulations and laws relating to their use and
      operation.

     

    (c)  No
      Shareholder has any interest in any of the Company Assets except for salary,
      and
      no Shareholder has any financial interest in any transaction of any
      Company.

     

    Section
      3.13  Compliance
      with Laws

     

    .
      Each
      Company has all material franchises, Permits, licenses and other rights and
      privileges necessary to permit it to own its Properties and to conduct its
      businesses as presently conducted. The business and operations of each Company
      have been and are being conducted in all material respects in accordance with
      all applicable laws, rules and regulations, and such Company is not in violation
      of any judgment, law or regulation except where any such violation would not
      have a Material Adverse Effect. No Company has received any written notice
      from
      any Governmental Authority or any other person or entity regarding any actual,
      alleged or potential violation or failure to comply in any material respect
      with
      any Legal Requirement.

     

    Section
      3.14  Litigation;
      Default

     

    .
      There
      are no claims, actions, suits, investigations or proceedings against any Company
      pending or, to the Knowledge of the Shareholders, threatened in any court or
      before or by any Governmental Authority, or before any arbitrator, other than
      worker’s compensation claims that are covered by a Company’s self insurance
      arrangement. 

     

    Section
      3.15  Customers

     

    .
      Since
      August 31, 2006, there has been no material adverse change in the business
      relationship of any Company with any customer. No customer has terminated or
      materially altered, or notified any Company in writing of any intention to
      terminate or materially alter, its relationship with such Company.

     

    Section
      3.16  Other
      Transactions

     

    .
      Except
      as contemplated by this Agreement, neither any Company nor any Shareholder
      has
      entered into any agreements or arrangements and there are no pending offers
      or
      discussions concerning or providing for the merger or consolidation of any
      Company, the sale of all or any substantial portion of its assets, the sale
      by
      any Shareholder of any securities of any Company or any similar transaction
      affecting any Company or the Shareholders.

     

    Section
      3.17  Tax
      Matters.

     

    (a)  

     

    (i)  each
      Company has timely filed all federal income Tax Returns, and all other material
      Tax Returns which it is required to file under applicable laws and regulations,
      except where the failure to so file would not have a Material Adverse Effect
      on
      the Companies, taken as a whole; 

     

    (ii)  all
      such
      Tax Returns are true and accurate in all material respects;

     

    (iii)  each
      Company has withheld and paid over to the appropriate taxing authority all
      Taxes
      which it is required to withhold from amounts paid or owing to any employee,
      shareholder, creditor or other third party; and

     

    (iv)  no
      Company currently is the beneficiary of any extension of time within which
      to
      file any Tax Return.

     

    (b)  To
      the
      Knowledge of the Shareholders, no Company has received notice of a claim by
      a
      taxing authority in a jurisdiction where such Company does not file Tax Returns
      that such Company is or may be subject to taxation by that
      jurisdiction.

     

    (c)   

     

    (i)  there
      are
      no foreign, federal, state or local Tax audits or administrative or judicial
      proceedings pending with respect to any Company;

     

    (ii)  no
      information related to Tax matters has been requested by any foreign, federal,
      state or local taxing authority and no written notice indicating an intent
      to
      open an audit or other review has been received by any Company from any foreign,
      federal, state or local taxing authority; and

     

    (iii)  there
      are
      no material unresolved claims concerning any Company’s Tax
      liability.

     

    Section
      3.18  Title
      to the Shares

     

    .
      As of
      the Closing Date, each Shareholder shall own beneficially and of record, free
      and clear of any lien, option or other encumbrance, the shares of Stock set
      forth opposite such Shareholder’s name on Exhibit
      A
      hereto,
      and, upon consummation of the Stock Purchase, Purchaser will acquire good and
      valid title thereto, free and clear of any lien or other
      encumbrance.

     

    Section
      3.19  Authority
      to Execute and Perform Agreement

     

    .
      Each
      Shareholder has the full legal right and power and all authority and approval
      required to enter into, execute and deliver this Agreement and each other
      agreement to which such Shareholder is a party and to perform fully such
      Shareholder’s obligations hereunder and thereunder. This Agreement and each
      other agreement to which such Shareholder is a party has been duly executed
      and
      delivered by each Shareholder and is a valid and binding obligation of such
      Shareholder enforceable in accordance with its terms, except as such
      enforceability may be limited by any applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors' rights generally, and except as the availability of equity remedies
      may be limited by the application of general principles of equity (regardless
      of
      whether such equitable principles are applied in a proceeding at law or in
      equity). The execution and delivery by each Shareholder of this Agreement and
      each other agreement to which such Shareholder is a party and the performance
      by
      such Shareholder of this Agreement and each other agreement to which such
      Shareholder is a party in accordance with their terms and conditions will not
      (i) require the approval or consent of any foreign, federal, state, county,
      local or other governmental or regulatory body or the approval or consent of
      any
      other person; or (ii) conflict with or result in any breach or violation of
      any
      of the terms and conditions of, or constitute (or with notice or lapse of time
      or both constitute) a default under, any statute, regulation, order, judgment
      or
      decree applicable to such Shareholder or to the shares of Stock held by such
      Shareholder, or any instrument, contract or other agreement to which such
      Shareholder is a party or by or to which such Shareholder is or the shares
      of
      Stock held by such Shareholder are bound or subject.

     

    Section
      3.20  No
      Shareholder Defaults or Consents

     

    .
      The
      execution and delivery of this Agreement by each Shareholder and the performance
      by such Shareholder of his obligations hereunder will not violate any provision
      of law or any judgment, award or decree or any indenture, agreement or other
      instrument to which such Shareholder is a party.

     

    Section
      3.21  Books
      and Records

     

    .
      The
      books and records of each Company are complete and correct in all material
      respects, represent bona fide, actual transactions, and have been maintained
      in
      accordance with sound business practices.

     

    Section
      3.22  Contracts

     

    .
      No
      Shareholder has or may acquire any rights under any contract or agreement that
      relates to any Company’s business or any Company Assets. Each contract and
      agreement to which any Company is a party (“Contract”)
      is in
      full force and effect, valid and enforceable in accordance with its terms.
      To
      the Knowledge of the Shareholders, each Company is in compliance in all material
      respects with the terms of all Contracts and no event has occurred that (with
      or
      without notice or lapse of time) may contravene, conflict with or result in
      a
      breach of any Contract.

     

    ARTICLE
      IV.  

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

    Purchaser
      represents and warrants to each of the Shareholders as of the Closing Date
      that:

     

    Section
      4.01  Corporate
      Existence and Qualification; Corporate Documents

     

    . 
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Ohio, and is not required to be qualified to
      do
      business as a foreign corporation in any other jurisdiction where the failure
      to
      so qualify would have a material adverse effect on Purchaser. Purchaser has
      all
      required corporate power and authority to own its properties and to carry on
      its
      business as presently conducted.

     

    Section
      4.02  Authority,
      Approval and Enforceability

     

    .
      This
      Agreement and each other agreement to which Purchaser is a party have been
      duly
      executed and delivered by Purchaser, and Purchaser has all requisite corporate
      power and legal authority to execute and deliver this Agreement and each other
      agreement to which Purchaser is a party, to consummate the transactions
      contemplated hereby and thereby, and to perform its obligations hereunder and
      thereunder. This Agreement and each other agreement to which Purchaser is a
      party will constitute the legal, valid and binding obligations of Purchaser,
      enforceable in accordance with their respective terms, except as such
      enforceability may be limited by any applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors' rights generally, and except as the availability of equity remedies
      may be limited by the application of general principles of equity (regardless
      of
      whether such equitable principles are applied in a proceeding at law or in
      equity).

     

    Section
      4.03  No
      Defaults or Consents

     

    .
      Neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (a)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Code of Regulations of Purchaser;

     

    (b)  violate
      any Legal Requirements applicable to Purchaser;

     

    (c)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of Purchaser; or

     

    (d)  require
      Purchaser to obtain or make any waiver, consent, action, approval or
      authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority.

     

    Section
      4.04  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of the
      Purchaser, threatened before any Governmental Authority seeking to restrain
      Purchaser or prohibit its entry into this Agreement or prohibit the Closing,
      or
      seeking damages against Purchaser or its Properties, as a result of the
      consummation of the transaction contemplated by this Agreement.

     

    ARTICLE
      V.  

    SURVIVAL

    Section
      5.01  Survival
      of Representations and Warranties

     

    .
      Notwithstanding any right of any party hereto fully to investigate the affairs
      of any other party hereto and notwithstanding any knowledge of facts determined
      or determinable by any party hereto pursuant to such investigation or right
      of
      investigation, each of Purchaser, on the one hand, and the Shareholders, on
      the
      other hand, has the right to rely fully upon the representations, warranties,
      covenants and agreements of Purchaser and the Shareholders, as the case may
      be,
      contained in this Agreement, or in any certificate delivered pursuant to any
      of
      the foregoing; provided, that no party hereto shall be entitled to rely on
      any
      representation or warranty made by any other party hereto herein to the extent
      that such party has actual knowledge that such representation or warranty is
      untrue or incorrect in any material respect. All such representations and
      warranties shall survive the execution and delivery of this Agreement and the
      Closing hereunder, and, except as otherwise specifically provided in this
      Agreement, shall thereafter terminate and expire at the end of the twenty fourth
      (24th) month following the Closing Date, subject to the limitations on
      indemnification set forth in Section 6.04 hereof. Notwithstanding the foregoing,
      (a) the representations and warranties set forth in Sections 3.01, 3.02,
      3.12(b), 3.18, 3.19, 4.01 and 4.02, and all covenants and agreements, shall
      survive indefinitely and shall not terminate or expire, and (b) the
      representations and warranties set forth in Section 3.07 shall terminate and
      expire at the end of the thirty sixth (36th) month following the Closing Date.
      

     

    ARTICLE
      VI.  

    INDEMNIFICATION

    Section
      6.01  Obligation
      of the Shareholders to Indemnify

     

    .
      Subject
      to the limitations contained in Article V and Section 6.04 hereof, each
      Shareholder severally agrees to indemnify, defend and hold harmless Purchaser
      (and its Affiliates, successors and assigns and their respective officers and
      directors) from and against all losses, liabilities, damages, deficiencies,
      costs or expenses (including interest, penalties and reasonable attorneys’ fees
      and disbursements, but offset by any proceeds from insurance and taking into
      account the present value of any tax savings to Purchaser or any Company
      resulting from such losses, liabilities, damages, deficiencies, costs or
      expenses) (“Losses”)
      based
      upon, arising out of or otherwise in respect of any material inaccuracy in
      or
      any breach of any representation, warranty, covenant or agreement of such
      Shareholder contained in this Agreement.

     

    Section
      6.02  Obligation
      of Purchaser to Indemnify

     

    .
      Purchaser agrees to indemnify, defend and hold harmless each Shareholder from
      and against any Losses based upon, arising out of or otherwise in respect of
      any
      material inaccuracy in or any breach of any representation, warranty, covenant
      or agreement of Purchaser contained in this Agreement.

     

    Section
      6.03  Notice
      and Opportunity to Defend.

     

    (a)  Notice
      of Asserted Liability.
      Promptly after receipt by any party hereto (the “Indemnitee”)
      of
      notice of any demand, claim or circumstances which, with the lapse of time,
      would or might give rise to a claim or the commencement (or threatened
      commencement) of any action, proceeding or investigation (an “Asserted
      Liability”)
      that
      may result in a Loss, the Indemnitee shall give notice thereof (the
“Claims
      Notice”)
      to any
      other party (or parties) obligated to provide indemnification pursuant to
      Section 6.01 or 6.02 (the “Indemnifying Party”). The Claims Notice shall
      describe the Asserted Liability in reasonable detail and shall indicate the
      amount (estimated, if necessary and to the extent feasible) of the Loss that
      has
      been or may be suffered by the Indemnitee.

     

    (b)  Opportunity
      to Defend.
      The
      Indemnifying Party may elect to compromise or defend, at its own expense and
      by
      its own counsel, any Asserted Liability. If the Indemnifying Party elects to
      compromise or defend such Asserted Liability, it shall within thirty (30) days
      (or sooner, if the nature of the Asserted Liability so requires) notify the
      Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the
      expense of the Indemnifying Party, in the compromise of, or defense against,
      such Asserted Liability at the sole cost of the Indemnifying Party. If the
      Indemnifying Party elects not to compromise or defend the Asserted Liability,
      fails to notify the Indemnitee of its election as herein provided or contests
      its obligation to indemnify under this Agreement, the Indemnitee may pay,
      compromise or defend such Asserted Liability. Notwithstanding the foregoing,
      neither the Indemnifying Party nor the Indemnitee may settle or compromise
      any
      claim over the objection of the other, provided, however, that consent to
      settlement or compromise shall not be unreasonably withheld. In any event,
      the
      Indemnitee and the Indemnifying Party may participate (but not control), at
      their own expense, in the defense of such Asserted Liability. If the
      Indemnifying Party chooses to defend the claim, the Indemnitee shall make
      available to the Indemnifying Party any books, records or other documents within
      its control that are necessary or appropriate for such defense.

     

    Section
      6.04  Limitations
      on Indemnification

     

    .
      The
      indemnification provided for in Sections 6.01 and 6.02 shall be subject to
      the
      following limitations:

     

    (a)  The
      Shareholders shall not be obligated to pay any amounts for indemnification
      under
      this Article VI arising out of any Losses based upon, arising out of or
      otherwise in respect of any inaccuracy or breach disclosed to Purchaser prior
      to
      the Closing.

     

    (b)  Neither
      Purchaser nor the Shareholders shall be obligated to pay any amounts for
      indemnification for breach of a representation or warranty under this Article
      VI, except those based upon, arising out of or otherwise in respect of Sections
      3.01, 3.02, 3.07, 3.13(b), 3.19, 3.20 and 3.21 hereof (which shall be
      indemnifiable from the first dollar), until the aggregate indemnification
      payments, exclusive of those payable with respect to Sections 3.01, 3.02, 3.07,
      3.13(b), 3.19, 3.20 and 3.22, equals $1,000,000 (the “Deductible”),
      whereupon Purchaser, or the Shareholders, as the case may be, shall be obligated
      to pay any indemnification payments, in excess of the Deductible, in full.
      This
      Section 6.04(b) will not apply to any breach of any representation and warranty
      of which the breaching party had Knowledge at any time prior to the date on
      which such representation and warranty is made or any intentional breach by
      any
      party of any covenant or obligation. Notwithstanding anything to the contrary
      contained herein, Shareholders shall not be obligated to pay any amount for
      indemnification in excess of the Purchase Price.

     

    (c)  After
      the
      Closing, the indemnification rights set forth in this Article VI shall be each
      party's sole and exclusive remedy against the other party for any breach of
      any
      representation, warranty or covenant contained in this Agreement.
      Notwithstanding the foregoing, nothing herein shall prevent any party from
      bringing an action based upon allegations of fraud in connection with this
      Agreement.

     

    ARTICLE
      VII.  

    POST-CLOSING
      OBLIGATIONS

    Section
      7.01  Further
      Assurances

     

    .
      Following the Closing, the Shareholders and Purchaser shall execute and deliver
      such documents, and take such other action, as shall be reasonably requested
      by
      any other party hereto to carry out the transactions contemplated by this
      Agreement.

     

    Section
      7.02  Access
      to Records

     

    .
      From
      and after the Closing, (i) each of the Shareholders shall (A) deliver to
      Purchaser with all books, records, files, agreements and other information
      solely in the possession of the Shareholder relating to the Company, and (B)
      use
      his or her best efforts to permit Purchaser and its authorized employees,
      agents, accountants, legal counsel and other representatives to have access
      to
      the employees, counsel, accountants and other representatives of the
      Shareholders, in each case, to the extent and at all times reasonably requested
      by Purchaser for the purpose of investigating or defending any claim made
      against the Company in connection with periods ending on or before the Closing
      Date and (ii) Purchaser shall (A) permit the Shareholders and their authorized
      employees, agents, accountants, legal counsel and other representatives to
      have
      access to the books, records, files, agreements and other information of or
      regarding the Company in the possession of Purchaser or its affiliates, and
      (B)
      use its best efforts to permit the Shareholders and their respective authorized
      employees, agents, accountants, legal counsel and other representatives to
      have
      access to the employees, counsel, accountants and other representatives of
      Purchaser, the Company and their Affiliates, in each case, to the extent and
      at
      all times reasonably requested by the Shareholders, or any of them, for the
      purpose of (I) investigating or defending any claim made against the
      Shareholders in connection with Article VI, (II) securing information on matters
      or disputes with respect to Sections 1.02(b)(iii) through (v) and 6.05 hereof,
      or (III) with respect to any pre-Closing Date tax matters affecting the Company
      or the Shareholders.

     

    Section
      7.03  Tax
      Returns

     

    .
      Each of
      the Shareholders will be responsible for preparing and filing the Companies’ Tax
      Returns for all periods through the Effective Date, including, without
      limitation, the filing of an S-corporation Tax Return; provided, however, that
      Purchaser shall prepare and file Tax Returns for Tax periods that straddle
      the
      Effective Date. All Taxes payable for all periods through the Effective Date,
      regardless of which party prepares the relevant Tax Returns, shall be the
      responsibility of the Shareholders.

     

    ARTICLE
      VIII.  

    MISCELLANEOUS

    Section
      8.01  Brokers

     

    .
      Regardless of whether the Closing shall occur, (i) each Shareholder shall
      severally indemnify and hold harmless Purchaser and the Company from and against
      any and all liability for any brokers or finders' fees arising with respect
      to
      brokers or finders retained or engaged by such Shareholder in respect of the
      transactions contemplated by this Agreement, and (ii) Purchaser shall indemnify
      and hold harmless the Shareholders from and against any and all liability for
      any brokers' or finders' fees arising with respect to brokers or finders
      retained or engaged by Purchaser in respect of the transactions contemplated
      by
      this Agreement.

     

    Section
      8.02  Costs
      and Expenses

     

    .
      Each of
      the parties to this Agreement shall bear its own expenses incurred in connection
      with the negotiation, preparation, execution and closing of this Agreement
      and
      the transactions contemplated hereby.

     

    Section
      8.03  Notices

     

    .
      Any
      notice, request, instruction, correspondence or other document to be given
      hereunder by any party hereto to another (herein collectively called
“Notice”)
      shall
      be in writing and delivered personally or mailed by registered or certified
      mail, postage prepaid and return receipt requested, or by telecopier, as
      follows:

     

    PURCHASER:  ELS
      Human
      Resource Solutions, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Telecopy
      No.: (513) 943-4908

    

    With
      a
      copy to:  Greg
      Bartko, Esq.

    3475
      Lenox Road, Suite 400

    Atlanta,
      Georgia 30326

    Telecopy
      No.: (404) 238-0551

    

    THE
      SHAREHOLDERS: To
      such
      Shareholder at the address

    specified
      on Exhibit
      A
      hereof.

    

    With
      a
      copy to:  Tracey
      A.
      Puthoff, Esq.

    Taft,
      Stettinius & Hollister LLP

    425
      Walnut Street, Suite 1800

    Cincinnati,
      OH 45202-3957

    Telecopy
      No.: 513-381-0205

    

    Each
      of
      the above addresses for notice purposes may be changed by providing appropriate
      notice hereunder. Notice given by personal delivery or registered mail shall
      be
      effective upon actual receipt. Notice given by telecopier shall be effective
      upon actual receipt if received during the recipient's normal business hours,
      or
      at the beginning of the recipient's next normal business day after receipt
      if
      not received during the recipient's normal business hours. All Notices by
      telecopier shall be confirmed by the sender thereof promptly after transmission
      in writing by registered mail or personal delivery. Anything to the contrary
      contained herein notwithstanding, Notices to any party hereto shall not be
      deemed effective with respect to such party until such Notice would, but for
      this sentence, be effective both as to such party and as to all other persons
      to
      whom copies are provided above to be given.

     

    Section
      8.04  Governing
      Law

     

    .
      The
      provisions of this Agreement and the documents delivered pursuant hereto shall
      be governed by and construed in accordance with the laws of the State of Ohio
      (excluding any conflict of law rule or principle that would refer to the laws
      of
      another jurisdiction).

     

    Section
      8.05  Entire
      Agreement, Amendments and Waivers

     

    .
      This
      Agreement, together with all exhibits and schedules attached hereto, constitutes
      the entire agreement between the parties hereto pertaining to the subject matter
      hereof and supersedes all prior agreements, understandings, negotiations and
      discussions, whether oral or written, of the parties, and there are no
      warranties, representations or other agreements between the parties in
      connection with the subject matter hereof except as set forth specifically
      herein or contemplated hereby. No supplement, modification or waiver of this
      Agreement shall be binding unless executed in writing by the party to be bound
      thereby. No waiver of any of the provisions of this Agreement shall be deemed
      or
      shall constitute a waiver of any other provision hereof (regardless of whether
      similar), nor shall any such waiver constitute a continuing waiver unless
      otherwise expressly provided.

     

    Section
      8.06  Binding
      Effect and Assignment

     

    .
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, executors, legal representatives, permitted
      successors and assigns; but neither this Agreement nor any of the rights,
      benefits or obligations hereunder shall be assigned, by operation of law or
      otherwise, by any party hereto without the prior written consent of the other
      party. Nothing in this Agreement, express or implied, is intended to confer
      upon
      any person or entity, other than the parties hereto and their respective heirs,
      executors, legal representatives, permitted successors and assigns, any rights,
      benefits or obligations hereunder.

     

    Section
      8.07  Remedies

     

    .
      The
      rights and remedies provided by this Agreement are cumulative, and the use
      of
      any one right or remedy by any party hereto shall not preclude or constitute
      a
      waiver of its right to use any or all other remedies provided by this
      Agreement.

     

    Section
      8.08  Exhibits
      and Schedules

     

    .
      The
      exhibits and schedules referred to herein are attached hereto and incorporated
      herein by this reference.

     

    Section
      8.09  Multiple
      Counterparts

     

    .
      This
      Agreement may be executed 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.

     

    Section
      8.10  References

     

    .
      Whenever required by the context, and as used in this Agreement, the singular
      number shall include the plural and pronouns and any variations thereof shall
      be
      deemed to refer to the masculine, feminine, neuter, singular or plural, as
      the
      identification of the person may require. References to monetary amounts and
      specific named statutes are intended to be and shall be construed as references
      to United States dollars and statutes of the United States, respectively, unless
      the context otherwise requires.

     

    Section
      8.11  Survival

     

    .
      Any
      provision of this Agreement which contemplates performance or the existence
      of
      obligations after the Closing Date, and any and all representations and
      warranties set forth in this Agreement, shall not be deemed to be merged into
      or
      waived by the execution and delivery of the instruments executed at the Closing,
      but shall expressly survive Closing for the time period set forth in Section
      6.01 hereof and shall be binding upon the party or parties obligated thereby
      in
      accordance with the terms of this Agreement, subject to any limitations
      expressly set forth in this Agreement.

     

    ARTICLE
      IX.  

    DEFINITIONS

    Capitalized
      terms used in this Agreement shall have the respective meanings ascribed to
      such
      terms in this Article IX, unless otherwise defined in this
      Agreement.

     

    Section
      9.01  Affiliate

     

    .
      The
      term “Affiliate”
shall
      mean, with respect to any person, any other person controlling, controlled
      by or
      under common control with such person. The term “control” as used in the
      preceding sentence means, with respect to a corporation, the right to exercise,
      directly or indirectly, more than fifty percent (50%) of the voting rights
      attributable to the shares of the controlled corporation and, with respect
      to
      any person other than a corporation, the possession, directly or indirectly,
      of
      the power to direct or cause the direction of the management or policies of
      such
      person.

     

    Section
      9.02  Company
      Assets

     

    .
      The
      term “Company
      Assets”
shall
      mean, with respect to any Company, all of the Properties, Contracts, and Permits
      that were Used by the Company as of August 31, 2006, and those Used by such
      Company at any time after such dates until the Closing Date.

     

    Section
      9.03  Governmental
      Authorities

     

    .
      The
      term “Governmental
      Authorities”
shall
      mean any nation or country (including but not limited to the United States)
      and
      any commonwealth, territory or possession thereof and any political subdivision
      of any of the foregoing, including but not limited to courts, departments,
      commissions, boards, bureaus, agencies, ministries or other
      instrumentalities.

     

    Section
      9.04  Knowledge

     

    .
      The
      term “Knowledge”
shall
      mean the actual knowledge of a party and, in the case of the Company, of any
      of
      its directors or executive officers with respect to the representation being
      made, and, in the case of the Shareholders, such knowledge as reasonably should
      have been obtained upon due investigation and inquiry into the representation
      being made.

     

    Section
      9.05  Legal
      Requirements

     

    .
      The
      term “Legal
      Requirements”,
      when
      described as being applicable to any person, shall mean any and all laws
      (statutory, judicial or otherwise), ordinances, regulations, judgments, orders,
      directives, injunctions, writs, decrees or awards of, and any contracts with,
      any Governmental Authority, in each case as and to the extent applicable to
      such
      person or such person's business, operations or Properties.

     

    Section
      9.06  Material
      Adverse Change

     

    .
      The
      term “Material
      Adverse Change”
shall
      mean a material adverse change in a Company’s condition (financial or
      otherwise), operations, results of operations, business, Properties or
      liabilities.

     

    Section
      9.07  Material
      Adverse Effect

     

    .
      The
      term “Material
      Adverse Effect”
shall
      mean a material adverse effect on a Company’s operations, business, Properties,
      financial condition or results of operations.

     

    Section
      9.08  Permits

     

    .
      The
      term “Permits”
shall
      mean any and all permits or orders under any Legal Requirement or otherwise
      granted by any Governmental Authority.

     

    Section
      9.09  Properties

     

    .
      The
      term “Properties”
shall
      mean any and all properties and assets (real, personal or mixed, tangible or
      intangible).

     

    Section
      9.10  Regulations

     

    .
      The
      term “Regulations”
shall
      mean any and all regulations promulgated by the Department of the Treasury
      pursuant to the Code.

     

    Section
      9.11  Taxes
      or Tax

     

    .
      The
      term “Taxes”
or
      “Tax”
means
      any federal, state, local, or foreign income, gross receipts, license, payroll,
      employment, gift, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including taxes under Code §59A), customs duties,
      capital stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add-on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty, or
      addition thereto, whether disputed or not.

     

    Section
      9.12  Tax
      Returns

     

    .
      The
      term “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    Section
      9.13  Used

     

    .
      The
      term “Used”
shall
      mean, with respect to the Properties, Contracts or Permits of a Company, those
      owned, leased, licensed or otherwise held by a Company which were acquired
      for
      use or held for use by a Company in connection with a Company’s business and
      operations, whether or not reflected on the books of account.

     

    

     

    

     

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXECUTED
      as of the date first written above.

     

    ELS
      HUMAN
      RESOURCE SOLUTIONS, INC.

    

    By:
      /s/ Donald Quarterman  

      Donald
      E.
      Quarterman, President

    

     

    

    

    SHAREHOLDERS:

     

    /s/
      Scott Horne
Scott D. Horne

    

    /s/
      Stephen Roux
Stephen
      R. Roux

    

    

    
      
        
          Signature
            Page

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    FOR
      PURPOSES OF SECTION 2.04 ONLY

    

    ELS
      OUTSOURCE SERVICES, INC.

    

    By:/s/
      Scott Horne________________

    Scott
      D.
      Horne

    Vice-President

    

    

    INTEGRATED
      PAYROLL SOLUTIONS, INC.

    

    By:/s/
      Ronald Heineman______________

    Ronald
      E.
      Heineman

    President

    

    

    RIO
      SERVICES, INC.

    

    By:/s/
      Ronald Heineman_____________

    Ronald
      E.
      Heineman

    President

    

    

    IMPERIAL
      HUMAN RESOURCES, INC.

    

    By:/s/
      Stephen Roux_________________

    Stephen
      R. Roux

    Vice-President

    

    

    LUXOR
      SOLUTIONS, INC.

    

    By:/s/
      Scott Horne____________________

    Scott
      D.
      Horne

    President

    

    

    ELS
      ADVANTAGE, INC.

    

    By:_/s/
      Stephen Roux____________

    Stephen
      R. Roux

    President

    

    

    

    

    EXHIBIT
      A

     

    Shareholders

     

    1.
      ELS
      Outsource Services, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Scott
      D.
      Horne    390

    

    Stephen
      R. Roux    220

    

    

    

    2.
      Integrated Payroll Solutions, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Scott
      D.
      Horne    210

    

    

    

    3.
      Rio
      Services, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Stephen
      R. Roux    210

    

    

    

    4.
      Imperial Human Resources, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Stephen
      R. Roux    280

    

    

    
      
        A-

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.
      Luxor
      Solutions, Inc.

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Scott
      D.
      Horne    49

    

    

    

    6.
      ELS
      Advantage, Inc.

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    No.
      of
      Shares Owned

    

    Stephen
      R. Roux    1,000

    

    

    
      
        
          A-

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      B

    

    Purchase
      Price

    

    

    Cash

    

    Scott
      D.
      Horne     $1.00

    

    Stephen
      R. Roux     $1.00

    

    
      
        
          B-

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    Schedule
      3.02

    

    Agreements

    

    Agreements

    

    
      	1.  	
              Management
                Agreement dated as of December 31, 2002, between ELS Outsource Services,
                Inc. and ELS Administrative Services,
                LLC.

            

    

     

    
      	2.  	
              Management
                Agreement dated as of December 31, 2002, between Integrated Payroll
                Solutions, Inc. and ELS Administrative Services,
                LLC.

            

    

     

    
      	3.  	
              Management
                Agreement dated as of December 31, 2002, between Rio Services, Inc.
                and
                ELS Administrative Services, LLC.

            

    

     

    
      	4.  	
              Management
                Agreement dated as of December 31, 2002, between Luxor Solutions,
                Inc. and
                ELS Administrative Services, LLC.

            

    

     

    
      	5.  	
              Management
                Agreement dated as of December 31, 2002, between ELS Advantage, Inc.
                and
                ELS Administrative Services, LLC.

            

    

     

    
      	6.  	
              Agreement
                dated as of December 31, 2002, by and between ELS Administrative
                Services,
                LLC, Rockmor Group, Inc., Foxstar, Inc., Luxor Solutions, Inc., Mandalay
                Services, Inc., Streamline Management, Inc., Imperial Human Resources,
                Inc., Rio Services, Inc., Integrated Payroll Solutions, Inc., ELS
                Advantage, Inc., ELS Outsource Services, Inc., and ELS Employee Services,
                Inc.

            

    

     

    Other
      Owners of Companies

    

    
      	1.  	
              William
                J. Walton owns 390 shares of common stock of ELS Outsource Services,
                Inc.,
                which shares are being sold to Purchaser
                separately.

            

    

     

    
      	2.  	
              Ronald
                E. Heineman owns 790 shares of Integrated Payroll Solutions, Inc.,
                which
                shares are being sold to Purchaser
                separately.

            

    

     

    
      	3.  	
              Ronald
                E. Heineman owns 790 shares of Rio Services, Inc., which shares are
                being
                sold to Purchaser separately.

            

    

     

    
      	4.  	
              William
                J. Walton owns 720 shares of Imperial Human Resources, Inc., which
                shares
                are being sold to Purchaser
                separately.Exhibit 1010

    

     

    

     

    STOCK
      PURCHASE AGREEMENT

     

    

     

    By
      and among

     

    

     

    ELS
      HUMAN RESOURCE SOLUTIONS, INC.,

     

    

     

    BARBARA
      L. HEINEMAN YEAR 2002 REVOCABLE TRUST

    ORIGINALLY
      DATED AUGUST 16, 2002 

     

    and

     

    WILLIAM
      J. WALTON

     

    

     

    

    

     

    

     

    As
      of October 1, 2006

    

    TABLE
      OF
      CONTENTS

     

    ARTICLE
      I. SALE AND PURCHASE OF STOCK

    Section
      1.01 Sale
      and Purchase of Stock.

    Section
      1.02 Purchase
      Price and Payment for Stock.

    ARTICLE
      II. CLOSING

    Section
      2.01 Closing

    Section
      2.02 Deliveries
      by Shareholders to Purchaser

    Section
      2.03 Deliveries
      by Purchaser

    Section
      2.04 Waivers

     ARTICLE
      III. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

    Section
      3.01 Corporate
      Existence and Qualification: Corporate Documents.

    Section
      3.02 Capitalization
      and Ownership

    Section
      3.03 Preemptive
      Rights; Registration Rights

    Section
      3.04 No
      Company Defaults or Consents

    Section
      3.05 No
      Proceedings

    Section
      3.06 Financial
      Statements

    Section
      3.07 Liabilities
      and Obligations

    Section
      3.08 Employee
      Matters.

    Section
      3.09 Employee
      Benefit Matters.

    Section
      3.10 Absence
      of Certain Changes

    Section
      3.11 Insurance

    Section
      3.12 Patents,
      Trademarks, Service Marks and Copyrights.

    Section
      3.13 Title
      to Assets; Condition of Assets.

    Section
      3.14 Compliance
      with Laws

    Section
      3.15 Litigation;
      Default

    Section
      3.16 Customers

    Section
      3.17 Other
      Transactions

    Section
      3.18 Tax
      Matters.

    Section
      3.19 Title
      to the Shares

    Section
      3.20 Authority
      to Execute and Perform Agreement

    Section
      3.21 No
      Shareholder Defaults or Consents

    Section
      3.22 Books
      and Records

    Section
      3.23 Contracts

    ARTICLE
      IV. REPRESENTATIONS AND WARRANTIES OF PURCHASER

    Section
      4.01 Corporate
      Existence and Qualification; Corporate Documents

    Section
      4.02 Authority,
      Approval and Enforceability

    Section
      4.03 No
      Defaults or Consents

    Section
      4.04 No
      Proceedings

    ARTICLE
      V. SURVIVAL

    Section
      5.01 Survival
      of Representations and Warranties

    ARTICLE
      VI. INDEMNIFICATION

    Section
      6.01 Obligation
      of the Shareholders to Indemnify

    Section
      6.02 Obligation
      of Purchaser to Indemnify

    Section
      6.03 Notice
      and Opportunity to Defend.

    Section
      6.04 Limitations
      on Indemnification

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VII. POST-CLOSING OBLIGATIONS 

    Section
      7.01 Further
      Assurances

    Section
      7.02 Access
      to Records

    Section
      7.03 Tax
      Returns

    ARTICLE
      VIII. MISCELLANEOUS

    Section
      8.01 Brokers

    Section
      8.02 Costs
      and Expenses

    Section
      8.03 Notices

    Section
      8.04 Governing
      Law

    Section
      8.05 Entire
      Agreement, Amendments and Waivers

    Section
      8.06 Binding
      Effect and Assignment

    Section
      8.07 Remedies

    Section
      8.08 Exhibits
      and Schedules

    Section
      8.09 Multiple
      Counterparts

    Section
      8.10 References

    Section
      8.11 Survival

    HYPERLINK
      \l "_Toc146686780"
      ARTICLE
      IX. DEFINITIONS

    Section
      9.01 Affiliate

    Section
      9.02 Company Assets

    Section
      9.03 Governmental Authorities

    Section
      9.04 Knowledge

    Section
      9.05 Legal Requirements

    Section
      9.06 Material Adverse Change

    Section
      9.07 Material Adverse Effect

    Section
      9.08 Permits

    Section
      9.09 Properties

    Section
      9.10 Regulations

    Section
      9.11 Taxes or Tax

    Section
      9.12 Tax Returns

    Section
      9.13 Used

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    This
      STOCK PURCHASE AGREEMENT (the “Agreement”)
      is
      made and entered into as of October 1, 2006, by and among ELS Human Resource
      Solutions, Inc., an Ohio corporation (the “Purchaser”),
      Barbara L. Heineman Year 2002 Revocable Trust Originally Dated August 16, 2002
      (“Heineman”)
      and
      William J. Walton (“Walton”
and
      together with Heineman, collectively, the “Shareholders”).

    Preliminary
      Statements

     

    A.  Thee
      Shareholders have agreed to sell, and the Purchaser has agreed to purchase,
      all
      of the issued and outstanding capital stock owned by them (collectively
“Stock”)
      of the
      following companies (each a “Company”
and
      collectively, the “Companies”),
      subject to the conditions hereinafter set forth:

     

    1. Employee
      Leasing Services, Inc., an Ohio corporation (“ELS”);

    2. ELS,
      Inc., an Ohio corporation;

    3. ELS
      Outsource Services, Inc., a Michigan corporation;

    4. ELS
      Payroll Solutions, Inc., an Ohio corporation; 

    5. Premier
      HR Services, Inc., a California corporation;

    6. ELS
      Human
      Resources, Inc., an Ohio corporation;

    7. Foxstar,
      Inc., a Michigan corporation;

    8. Integrated
      Payroll Solutions, Inc., a Michigan corporation;

    9. ELS
      Personnel Services, Inc., an Ohio corporation;

    10. Rio
      Services, Inc., a Michigan corporation;

    11. Imperial
      Human Resources, Inc., a Michigan corporation;

    12. ELS
      Payroll Managers, Inc., an Ohio corporation;

    13. ELS
      HR,
      Inc., an Ohio corporation;

    14. ELS
      Temporary Solutions, Inc., an Ohio corporation;

    15. Resolve
      HR Solutions, Inc., an Ohio corporation;

    16. Fidelity
      Capital, Inc., an Ohio corporation; and

    17. Streamline
      Management, Inc., a Michigan corporation.

    

    B.  Capitalized
      terms used herein but not defined herein shall have the respective meanings
      given such terms in Article IX hereof.

     

    C.  Agreement

     

    In
      consideration of the premises, mutual covenants and agreements contained herein
      and the benefits to accrue to the parties hereto, and subject to the
      satisfaction or waiver of the conditions contained herein, the parties hereto
      hereby agree as follows:

     

    ARTICLE
      I.  

    SALE
      AND PURCHASE OF STOCK

    Section
      1.01  Sale
      and Purchase of Stock.

     

    (a)  On
      the
      terms and subject to the conditions of this Agreement, at the Closing referred
      to in Section 2.01 hereof, each Shareholder shall sell, transfer, convey and
      deliver to Purchaser, and Purchaser shall purchase, acquire and accept from
      each
      Shareholder, the number and type of shares of Stock set forth opposite the
      name
      of each such Shareholder on Exhibit
      A
      hereto,
      collectively constituting all of the issued and outstanding shares of Stock
      of
      the Companies. The sale and purchase of the Stock pursuant to this Agreement
      is
      sometimes hereinafter referred to as the “Stock
      Purchase.”

     

    (b)  To
      effect
      the transfers contemplated by Section 1.01(a), at the Closing, each Shareholder
      shall deliver, or cause to be delivered, to Purchaser stock certificates
      representing the Stock being sold by such Shareholder hereunder, together with
      stock powers duly executed in blank or otherwise in proper form reasonably
      acceptable to Purchaser for transfer to Purchaser on the books of the Company,
      against payment therefor in accordance with Section 1.02 hereof.

     

    Section
      1.02  Purchase
      Price and Payment for Stock.

     

    (a)  Purchase
      Price.
      The
      purchase price for the issued and outstanding shares of Stock to be purchased
      hereunder shall be an aggregate amount equal to Sixteen Million Six Hundred
      Sixty-Three Thousand Eight Hundred Fifty-Six and 18/100 Dollars ($16,663,856.18)
      (the “Purchase
      Price”),
      as
      adjusted as set forth herein. The Purchase Price shall be allocated among and
      delivered to the Shareholders as set forth on Exhibit
      B
      hereto.

     

    (b)  The
      Purchase Price shall be paid upon the surrender pursuant to Section 1.01(b)
      of
      certificates representing all of the issued and outstanding shares of Stock
      owned by the Shareholders, by delivery of promissory notes (collectively, the
      “Notes”)
      in the
      amounts set forth for such Shareholder on Exhibit
      B.

     

    (c)  After
      the
Closing,
      the
Purchase
      Price shall
      be
      adjusted further as follows:

     

    (i)  “Purchase
      Price Adjustment”
shall
      mean an amount equal to difference between the Closing
      ELS
      Assets and the August ELS Assets.

     

    (ii)  “Closing
      ELS
      Assets”
shall
      mean, with respect to ELS, the amount calculated by adding
      the following as of the Closing Date: (A)
      reserve workers’ compensation insurance with Providence; (B) investment in
      Providence; (C) deposits set forth on the balance

     

    (iii)  sheet;
      (D) retained earnings; and (E) principal amount and accrued interest on the
      promissory note from Resolve Staffing, Inc. (“Resolve”)
      to
      ELS.

     

    (iv)  “August
      ELS Assets”
shall
      mean, with respect to ELS, the amount calculated by adding the following as
      of
      August 31, 2006: (A) reserve workers’ compensation insurance with Providence;
      (B) investment in Providence; (C) deposits set forth on the balance sheet;
      (D)
      retained earnings; and (E) principal amount and accrued interest on the
      promissory note from Resolve to ELS.

     

    (v)  Shareholders
      shall
      calculate the Closing ELS Assets and the August ELS Assets on the same basis
      and
      applying the same accounting principles, policies and practices that were used
      in preparing the Financials
      (as
      defined in Section 3.06). Shareholders
      shall
      then determine the Purchase Price Adjustment based on such
      calculations
      and
shall
      deliver all
      such
      calculations to Purchaser within
      sixty (60) days following the Closing
      Date.
      Shareholders
      shall
      furnish or cause to be furnished to Purchaser
      such
      work
      papers, records, and other documents relating to such calculations, and access
      thereto, as may be necessary or reasonably appropriate for such
      calculations.

     

    (vi)  If
      within
      thirty (30) days following delivery of such
      calculations, Purchaser
      has not given Shareholders
      written
      notice of its objection as to such
      calculations (which
      notice shall state the basis of Purchaser’s objection), then the Purchase
      Price Adjustment calculated
      by Shareholders
      shall
      be
      binding and conclusive on the parties.

     

    (vii)  If
      Purchaser
      timely
      gives Shareholders
      such
      notice of objection, and if Shareholders
      and
      Purchaser
      fail
      to
      resolve the issues outstanding with respect to the
      calculations within
      thirty (30) days of Shareholders’ receipt of Purchaser’s
      objection notice, Shareholders
      and
      Purchaser
      shall
      submit the issues remaining in dispute to mutually agreed upon independent
      public accountants (the “Independent
      Accountants”)
      for
      resolution applying the principles, policies and practices referred to in
      subsection (iii)
      above.
      If
      issues are submitted to the Independent
      Accountants for
      resolution, (A)
      Shareholders
      and
      Purchaser
      shall
      furnish or cause to be furnished to the Independent
      Accountants such
      work
      papers and other documents and information relating to the disputed issues
      as
      the Independent
      Accountants may
      request and are available to that party or its agents and shall be afforded
      the
      opportunity to present to the Independent
      Accountants any
      material relating to the disputed issues and to discuss the issues with the
      Independent
      Accountants;
      (B)
      the
      determination by the Independent
      Accountants,
      as set
      forth in a notice to be delivered to both Shareholders
      and
      Purchaser
      within
      sixty (60) days of the submission to the Independent
      Accountants of
      the
      issues remaining in dispute, shall be final, binding and conclusive on the
      parties and shall be used in the calculation of the Purchase
      Price Adjustment;
      and
(C)
      Shareholders
      and
      Purchaser
      will
      each
      bear fifty percent (50%) of the fees and costs of the Independent
      Accountants for
      such
      determination.

     

    (viii)  If
      the
Purchase
      Price Adjustment is
      a
      positive number, then Purchaser
      shall
      deliver to Shareholders additional promissory notes, in equal principal amounts,
      representing the aggregate Purchase Price Adjustment. If the Purchase
      Price Adjustment is
      a
      negative number, Shareholders
      and
      Purchaser shall execute an amendment to the Notes adjusting the principal
      amounts of the Notes to account for the Purchase Price Adjustment. 

     

    (ix)  

     

    CLOSING

     

    Section
      1.03  Closing

     

    .
      The
      closing of the transactions contemplated hereby (the “Closing”)
      shall
      be held as of 12:01 a.m., as of October 1, 2006 at the offices of Taft,
      Stettinius & Hollister LLP, 425 Walnut Street, Suite 1800, Cincinnati, Ohio
      45202, unless another date or place is agreed to in writing by the parties
      hereto. The date upon which the Closing occurs is hereinafter referred to as
      the
“Closing
      Date.”

     

    Section
      1.04  Deliveries
      by Shareholders to Purchaser

     

    .
      At the
      Closing, the Shareholders shall deliver to Purchaser:

     

    (a)  certificates
      representing all of the issued and outstanding shares of Stock, together with
      stock powers duly executed for transfer to Purchaser;

     

    (b)  the
      resignations of all officers and members of the board of directors of the
      Companies;

     

    (c)  the
      stock
      books, stock ledgers, minute books and corporate seals, if any of the
      Companies;

     

    (d)  a
      certificate of the Secretary of each Company certifying, as complete and
      accurate as of the Closing, as to attached copies of the Articles of
      Incorporation and Code of Regulations or Bylaws of such Company;

     

    (e)  a
      certificate of good standing of each Company issued by the Secretary of State
      of
      such Company’s jurisdiction of incorporation; and

     

    (f)  an
      employment agreement between Heineman and Resolve Staffing, Inc., a Nevada
      corporation (“Resolve”),
      executed by Heineman (the “Employment
      Agreement”).

     

    Section
      1.05  Deliveries
      by Purchaser

     

    .
      At
      the
      Closing, Purchaser shall deliver to the Shareholders:

     

    (a)  the
      Notes, duly executed by Purchaser;

     

    (b)  a
      certificate of the Secretary of Purchaser certifying, as complete and accurate
      as of the Closing, as to attached copies of the Articles of Incorporation and
      Bylaws of Purchaser and all necessary corporate action on behalf of Purchaser
      approving its execution, delivery and
      performance of this Agreement and the other agreements being delivered pursuant
      to this Agreement;

     

    (c)  a
      guaranty duly executed by Resolve Staffing, Inc.;

     

    (d)  a
      security agreement duly executed by Purchaser and Resolve;

     

    (e)  a
      stock
      pledge agreement in substantially the form of Exhibit
      E
      attached
      hereto, executed by Resolve;

     

    (f)  a
      certificate of good standing of Purchaser issued by the Secretary of State
      of
      Ohio;

     

    (g)  a
      certificate of good standing of Resolve issued by the Secretary of State of
      Nevada; and

     

    (h)  the
      Employment Agreement, executed by Resolve.

     

    Section
      1.06  Waivers

     

    .
      Each
      of
      the Shareholders and each applicable Company hereby waives compliance with
      any
      requirements or restrictions with respect to the sale or transfer of any Stock
      contained in each such Company’s Articles of Incorporation, By-Laws, Code of
      Regulations or in any agreement disclosed in Schedule 3.02.

     

    ARTICLE
      II.  

    REPRESENTATIONS
      AND WARRANTIES OF THE SHAREHOLDERS

    Subject
      to the limitations of Section 6.04 hereof, each Shareholder severally represents
      and warrants to Purchaser as of the Closing Date as set forth in this
      Article:

     

    Section
      2.01  Corporate
      Existence and Qualification: Corporate Documents.

     

    (a)  Each
      Company is duly organized, validly existing and in good standing under the
      laws
      of its state of incorporation and is not required to be qualified to do business
      as a foreign corporation in any other jurisdiction where the failure to so
      qualify would have a material adverse effect on such Company. Each Company
      has
      all requisite corporate power and authority to own its Properties and carry
      on
      its business as presently conducted. The copies of the Articles of Incorporation
      and Bylaws or Code of Regulations of each Company attached to the Secretary’s
      Certificate for such Company delivered pursuant to Section 2.02(d) are complete
      and reflect all amendments thereto through the date hereof.

     

    (b)  The
      stock
      and minute books of each Company have been made available to Purchaser for
      review and contain a complete and accurate record of all shareholders of such
      Company and all material actions of the shareholders and directors (and any
      committees thereof) taken at meetings of shareholders or directors of the
      Company or by written consent.

     

    (c)  No
      Company has any subsidiaries, participates in any partnership or joint venture,
      or owns any outstanding capital stock of any other entity.

     

    Section
      2.02  Capitalization
      and Ownership

     

    .
      As of
      the date of this Agreement, all issued and outstanding shares of Stock are
      owned
      of record and beneficially by the Shareholders as shown on Exhibit
      A
      hereto.
Exhibit
      A
      also
      lists the entire authorized capital stock of each of the Companies. All of
      the
      presently outstanding shares of Stock have been validly authorized and issued
      and are fully paid and non-assessable. Except as set forth on Schedule 3.02,
      no
      Company has issued any other shares of its capital stock and there are no
      outstanding options, warrants, subscriptions or other rights or obligations
      to
      purchase or acquire any of such shares, nor any outstanding securities
      convertible into or exchangeable for such shares. Except as contemplated under
      this Agreement, or as set forth in Schedule 3.02 with respect to the
      Articles

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    of
      Incorporation, By-Laws and certain agreements, there are no agreements to which
      any Company or any Shareholder is a party regarding the issuance, registration,
      voting or transfer of its outstanding shares of its capital stock. No dividends
      are accrued but unpaid on any capital stock of any Company.

     

    Section
      2.03  Preemptive
      Rights; Registration Rights

     

    .
      Except
      for ELS, no Company’s Articles of Incorporation afford pre-emptive rights to any
      shareholder. There have been no shares of any Company issued, other than to
      the
      Shareholders, to which preemptive rights accrued or are outstanding. There
      are
      no registration rights affecting the issuance or sale of the Stock.

     

    Section
      2.04  No
      Company Defaults or Consents

     

    .
      Except
      as set forth on Schedule
      3.04,
      neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (i)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Code of Regulations or Bylaws of any Company;

     

    (ii)  violate
      in any material respect any Legal Requirements applicable to any
      Company;

     

    (iii)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of any Company; or

     

    (iv)  require
      any of the Shareholders or any Company to obtain or make any waiver, consent,
      action, approval or authorization of, or registration, declaration, notice
      or
      filing with, any private non-governmental third party or any Governmental
      Authority except where the failure to so obtain or make would not have a
      Material Adverse Effect.

     

    Section
      2.05  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of the
      Shareholders, threatened before any Governmental Authority seeking to restrain
      any of the Shareholders or prohibit their entry into this Agreement or prohibit
      the Closing, or seeking damages against any Company or its Properties, as a
      result of the consummation of the transactions contemplated by this
      Agreement.

     

    Section
      2.06  Financial
      Statements

     

    .
      The
      Shareholders previously have delivered to Purchaser true, correct, and complete
      copies of (i) the audited income statement and balance sheet for the fiscal
      year
      ended December 31, 2005 of ELS, (ii) unaudited balance sheet of ELS as of August
      31 2006 (collectively the “Financials”)
      and
      (iii) unaudited income statement of ELS as of and for the eight months ended
      August 31, 2006 (the “Balance
      Sheet Date”).
      All
      of such statements (collectively the “Financial
      Statements”)
      (i)
      have been prepared consistently with past practices and from the books and
      records of ELS, and (ii) present fairly the financial condition of ELS and
      its
      results of operations as at and for the respective periods then
      ended.

     

    Section
      2.07  Liabilities
      and Obligations

     

    .
      The
      Financial Statements reflect all material liabilities of ELS arising out of
      transactions effected or events occurring on or prior to the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Balance
      Sheet Date, except for liabilities not exceeding $10,000 in the aggregate.
      All
      reserves shown in the Financial Statements are appropriate and reasonable to
      provide for losses thereby contemplated. 

     

    Section
      2.08  Employee
      Matters.

     

    (a)  The
      Shareholders previously have delivered to Purchaser a complete and accurate
      list
      of the names, titles and compensation of all employees of each Company (other
      than the Shareholders and the temporary employees who are hired to be assigned
      to work for customers) (collectively, the “Section
      3.08 Employees”)
      and
      copies of each written employment agreement entered into between any Company
      and
      its Section 3.08 Employees (the “Employment
      Agreements”).

     

    (b)  The
      Shareholders previously have provided Purchaser with a complete and accurate
      list of all written employee policies and procedures in effect for each
      Company.

     

    (c)  To
      the
      Knowledge of the Shareholders, no unwritten material amendments have been made,
      whether by oral communication, pattern of conduct or otherwise, with respect
      to
      the Employment Agreements or employee policies and procedures in
      effect.

     

    (d)  Each
      Company (i) has been and is in material compliance with all applicable laws,
      rules, regulations and ordinances respecting employment and employment
      practices, terms and conditions of employment and wages and hours, and (ii)
      is
      not liable in any material amount for any arrears of wages or penalties for
      failure to comply with any of the foregoing.
      No
      Company has engaged in any unfair labor practice or discriminated on the basis
      of race, color, religion, sex, national origin, age or handicap in its
      employment conditions or practices. There are no (A) unfair labor practice
      charges or complaints or racial, color, religious, sex, national origin, race
      or
      handicap discrimination charges or complaints pending or, to the Knowledge
      of
      the Shareholders, threatened against any Company before the National Labor
      Relations Board or any similar state or foreign commission or agency or (B)
      existing or threatened material labor strikes, disputes, grievances or
      controversies against any Company or any of its respective
      employees.

     

    (e)  No
      Company is, nor has it been, a party to any agreement with any union, labor
      organization or collective bargaining unit.
      No
      employee of any Company is represented by any union, labor organization or
      collective bargaining unit. To the Knowledge of the Shareholders, no remaining
      employees of any Company have threatened to organize or join a union, labor
      organization or collective bargaining unit.

     

    Section
      2.09  Employee
      Benefit Matters.

     

    (a)  The
      Shareholders previously have delivered to Purchaser a complete and accurate
      list
      of all Employee Benefit Plans sponsored by any Company or an ERISA Affiliate
      or
      to which any Company or an ERISA Affiliate contributes on behalf of its
      employees. No unwritten amendment exists with respect to any Employee Benefit
      Plan. For purposes of this Agreement an “Employee
      Benefit Plan”
means
      each employee benefit plan, as such term is defined in Section 3(3) of the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
      maintained by any Company or an ERISA Affiliate; provided, however, that
      with

     

    (b)  respect
      to the representations and warranties set forth in subsection (b) of this
      Section, “Employee
      Benefit Plan”
shall
      exclude any and all “multiemployer plans” within the meaning of Section 3(37) of
      ERISA. For purposes of this Agreement, an “ERISA
      Affiliate”
means
      any corporation who is a member of a controlled group of corporations (as
      defined in Code §414(b)) that includes any Company, any trades or businesses
      (whether or not incorporated) which are under common control (as defined in
      Code
§414(c)) with any Company, any entity that is a member of an affiliated service
      group (as defined in Code §414(m)) that includes any Company, or any other
      entity that is an arrangement described in Code §414(o) that include any
      Company.

     

    (c)  Except
      as
      set forth on Schedule 3.09(b),
      to the Knowledge of the Shareholders, each Employee Benefit Plan has been
      administered and maintained in material compliance with all applicable laws,
      rules and regulations. To the Knowledge of the Shareholders, no Employee Benefit
      Plan is currently the subject of an audit, investigation, enforcement action
      or
      other similar proceeding conducted by any state or federal agency. To the
      Knowledge of the Shareholders, no prohibited transaction (within the meaning
      of
      Section 4975 of the Internal Revenue Code of 1986, as amended, and the
      regulations promulgated thereunder (the “Code”))
      has
      occurred with respect to any Employee Benefit Plan. No pending or, to the
      Knowledge of the Shareholders, threatened, claims, suits or other proceedings
      exist with respect to any Employee Benefit Plan other than normal benefit claims
      filed by participants or beneficiaries. All contractual obligations relating
      to
      the Employee Benefit Plans are terminable by the applicable Company with no
      more
      than 30 days notice and without cause or penalty. All required contributions
      to,
      and premium payments on account of, each Employee Benefit Plan have been made
      on
      a timely basis. The consummation of the transactions contemplated under this
      Agreement will not, by itself or together with any other event, increase the
      amount of or accelerate the vesting or payment of any benefit under any Employee
      Benefit Plan or Employment Agreement.

     

    (d)  Neither
      any Company nor any ERISA Affiliate has maintained, contributed to or otherwise
      participated in, or has any liability or obligation with respect to, any
      multiemployer plan within the meaning of Section 3(37) of ERISA.

     

    Section
      2.10  Absence
      of Certain Changes

     

    .
      From
      the Balance Sheet Date to the date of this Agreement, no Company
      has:

     

    (a)  suffered
      any Material Adverse Change;

     

    (b)  contracted
      for the purchase of any capital assets having a cost in excess of $10,000 or
      paid any capital expenditures in excess of $10,000, except in the ordinary
      course of business consistent with past practice;

     

    (c)  incurred
      any indebtedness for borrowed money or issued or sold any debt securities,
      except in the ordinary course of business consistent with past
      practice;

     

    (d)  incurred
      or discharged any material liabilities or obligations except in the ordinary
      course of business consistent with past practice;

     

    (e)  paid
      any
      amount on any indebtedness prior to the due date, forgiven or canceled any
      material debts or claims or released or waived any material rights or claims,
      except in the ordinary course of business consistent with past
      practice;

     

    (f)  mortgaged,
      pledged or subjected to any security interest, lien, lease or other charge
      or
      encumbrance any of its Properties or Company Assets;

     

    (g)  suffered
      any damage or destruction to or loss of any Company Assets (whether or not
      covered by insurance) that has materially adversely affected its
      business;

     

    (h)  acquired
      or disposed of any material Company Assets except in the ordinary course of
      business consistent with past practice;

     

    (i)  increased
      the compensation of any Section 3.08 Employee except in the ordinary course
      of
      business;

     

    (j)  made
      any
      payments to any person or entity except in the ordinary course of business
      consistent with past practice or loaned any money to any person or entity that
      is not reflected in the Financial Statements;

     

    (k)  formed
      or
      acquired or disposed of any interest in any corporation, partnership, joint
      venture or other entity;

     

    (l)  redeemed,
      purchased or otherwise acquired, or sold, granted or otherwise disposed of,
      directly or indirectly, any of its capital stock or securities or any rights
      to
      acquire such capital stock or securities, or agreed to change the terms and
      conditions of any such rights or paid any dividends or made any distribution
      to
      the holders of such Company’s capital stock;

     

    (m)  entered
      into or terminated any material agreement with any person or group, or modified
      or amended in any material respect the terms of any existing agreement except
      in
      the ordinary course of business consistent with past practice;

     

    (n)  entered
      into, adopted or amended any Employee Benefit Plan in any material
      respect;

     

    (o)  received
      any indication from any customer or supplier that it intends to discontinue
      or
      change the terms of its relationship with such Company;

     

    (p)  materially
      changed its accounting methods; or

     

    (q)  entered
      into any agreement (written or oral) to do any of the foregoing.

     

    Section
      2.11  Insurance

     

    .
      The
      Shareholders have previously made available to Purchaser a list of all insurance
      policies (including self insurance arrangements) with respect to the property,
      assets and operations of each Company’s business and a summary of the loss
      experience of each Company. All such insurance policies and arrangements are
      in
      full force and effect. There are no pending claims by any Company relating
      to
      its business under such insurance policies as to which the insurers listed
      thereon have denied liability.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Patents,
      Trademarks, Service Marks and Copyrights.

     

    (a)  Each
      Company owns all material patents, trademarks, service marks and copyrights
      (collectively “Proprietary
      Rights”),
      if
      any, necessary to conduct its business, or possesses adequate licenses or other
      rights (except for licenses for the use of non-customized software), if any,
      therefor, without conflict with the rights of others. 

     

    (b)  To
      the
      Knowledge of the Shareholders, each Company has the sole and exclusive right
      to
      use the Proprietary Rights without infringing or violating the rights of any
      third parties.
      To the
      Knowledge of the Shareholders, use of the Proprietary Rights does not require
      the consent of any other person and the Proprietary Rights are freely
      transferable. No claim has been asserted by any person to the ownership of
      or
      right to use any material Proprietary Right or challenging or questioning the
      validity or effectiveness of any license or agreement constituting a part of
      any
      material Proprietary Right. To the Knowledge of the Shareholders, each of the
      Proprietary Rights is valid and subsisting, has not been canceled, abandoned
      or
      otherwise terminated and, if applicable, has been duly issued or
      filed.

     

    Section
      2.12  Title
      to Assets; Condition of Assets.

     

    (a)  No
      Company owns any real property.

     

    (b)  Each
      Company has good and marketable title to its Company Assets (other than those
      disposed of in the ordinary course of business), free and clear of all security
      interests, liens, charges and other encumbrances, except for liens for taxes
      not
      yet due and payable or being contested in good faith in appropriate proceedings.
      All material facilities, machinery, equipment, fixtures, vehicles and other
      properties owned, leased or used by such Company are in good operating condition
      and repair, normal wear and tear excepted, are adequate and sufficient for
      the
      business of such Company and conform in all material respects with all
      applicable ordinances, regulations and laws relating to their use and
      operation.

     

    (c)  No
      Shareholder has any interest in any of the Company Assets except for salary,
      and
      no Shareholder has any financial interest in any transaction of any
      Company.

     

    Section
      2.13  Compliance
      with Laws

     

    .
      Each
      Company has all material franchises, Permits, licenses and other rights and
      privileges necessary to permit it to own its Properties and to conduct its
      businesses as presently conducted. The business and operations of each Company
      have been and are being conducted in all material respects in accordance with
      all applicable laws, rules and regulations, and such Company is not in violation
      of any judgment, law or regulation except where any such violation would not
      have a Material Adverse Effect. No Company has received any written notice
      from
      any Governmental Authority or any other person or entity regarding any actual,
      alleged or potential violation or failure to comply in any material respect
      with
      any Legal Requirement.

     

    Section
      2.14  Litigation;
      Default

     

    .
      Except
      as disclosed in Schedule 3.15, there are no claims, actions, suits,
      investigations or proceedings against any Company pending or, to the Knowledge
      of the Shareholders, threatened in any court or before or by any Governmental
      Authority, or before any arbitrator, other than worker’s compensation claims
      that are covered by a Company’s self insurance arrangement. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Customers

     

    .
      Since
      the Balance Sheet Date, there has been no material adverse change in the
      business relationship of any Company with any customer. No customer has
      terminated or materially altered, or notified any Company in writing of any
      intention to terminate or materially alter, its relationship with such
      Company.

     

    Section
      2.15  Other
      Transactions

     

    .
      Except
      as contemplated by this Agreement, neither any Company nor any Shareholder
      has
      entered into any agreements or arrangements and there are no pending offers
      or
      discussions concerning or providing for the merger or consolidation of any
      Company, the sale of all or any substantial portion of its assets, the sale
      by
      any Shareholder of any securities of any Company or any similar transaction
      affecting any Company or the Shareholders.

     

    Section
      2.16  Tax
      Matters.

     

    (a)  Except
      as
      set forth in Schedule 3.18 hereto:

     

    (i)  each
      Company has timely filed all federal income Tax Returns, and all other material
      Tax Returns which it is required to file under applicable laws and regulations,
      except where the failure to so file would not have a Material Adverse Effect
      on
      the Companies, taken as a whole; 

     

    (ii)  all
      such
      Tax Returns are true and accurate in all material respects;

     

    (iii)  each
      Company has withheld and paid over to the appropriate taxing authority all
      Taxes
      which it is required to withhold from amounts paid or owing to any employee,
      shareholder, creditor or other third party; and

     

    (iv)  no
      Company currently is the beneficiary of any extension of time within which
      to
      file any Tax Return.

     

    (b)  To
      the
      Knowledge of the Shareholders, no Company has received notice of a claim by
      a
      taxing authority in a jurisdiction where such Company does not file Tax Returns
      that such Company is or may be subject to taxation by that
      jurisdiction.

     

    (c)   

     

    (i)  there
      are
      no foreign, federal, state or local Tax audits or administrative or judicial
      proceedings pending with respect to any Company;

     

    (ii)  no
      information related to Tax matters has been requested by any foreign, federal,
      state or local taxing authority and no written notice indicating an intent
      to
      open an audit or other review has been received by any Company from any foreign,
      federal, state or local taxing authority; and

     

    (iii)  there
      are
      no material unresolved claims concerning any Company’s Tax
      liability.

     

    Section
      2.17  Title
      to the Shares

     

    .
      As of
      the Closing Date, each Shareholder shall own beneficially and of record, free
      and clear of any lien, option or other encumbrance, the shares of Stock set
      forth opposite such Shareholder’s name on Exhibit
      A
      hereto,
      and, upon consummation of the Stock Purchase, Purchaser will acquire good and
      valid title thereto, free and clear of any lien or other
      encumbrance.

     

    Section
      2.18  Authority
      to Execute and Perform Agreement

     

    .
      Each
      Shareholder has the full legal right and power and all authority and approval
      required to enter into, execute and deliver this Agreement and each other
      agreement to which such Shareholder is a party and to perform fully such
      Shareholder’s obligations hereunder and thereunder. This Agreement and each
      other agreement to which such Shareholder is a party has been duly executed
      and
      delivered by each Shareholder and is a valid and binding obligation of such
      Shareholder enforceable in accordance with its terms, except as such
      enforceability may be limited by any applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors' rights generally, and except as the availability of equity remedies
      may be limited by the application of general principles of equity (regardless
      of
      whether such equitable principles are applied in a proceeding at law or in
      equity). The execution and delivery by each Shareholder of this Agreement and
      each other agreement to which such Shareholder is a party and the performance
      by
      such Shareholder of this Agreement and each other agreement to which such
      Shareholder is a party in accordance with their terms and conditions will not
      (i) require the approval or consent of any foreign, federal, state, county,
      local or other governmental or regulatory body or the approval or consent of
      any
      other person; or (ii) conflict with or result in any breach or violation of
      any
      of the terms and conditions of, or constitute (or with notice or lapse of time
      or both constitute) a default under, any statute, regulation, order, judgment
      or
      decree applicable to such Shareholder or to the shares of Stock held by such
      Shareholder, or any instrument, contract or other agreement to which such
      Shareholder is a party or by or to which such Shareholder is or the shares
      of
      Stock held by such Shareholder are bound or subject.

     

    Section
      2.19  No
      Shareholder Defaults or Consents

     

    .
      The
      execution and delivery of this Agreement by each Shareholder and the performance
      by such Shareholder of his obligations hereunder will not violate any provision
      of law or any judgment, award or decree or any indenture, agreement or other
      instrument to which such Shareholder is a party.

     

    Section
      2.20  Books
      and Records

     

    .
      The
      books and records of each Company are complete and correct in all material
      respects, represent bona fide, actual transactions, and have been maintained
      in
      accordance with sound business practices.

     

    Section
      2.21  Contracts

     

    .
      Except
      as set forth in Schedule 3.02, no Shareholder has or may acquire any rights
      under any contract or agreement that relates to any Company’s business or any
      Company Assets. Each contract and agreement to which any Company is a party
      (“Contract”)
      is in
      full force and effect, valid and enforceable in accordance with its terms.
      To
      the Knowledge of the Shareholders, each Company is in compliance in all material
      respects with the terms of all Contracts and no event has occurred that (with
      or
      without notice or lapse of time) may contravene, conflict with or result in
      a
      breach of any Contract.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

     

    Purchaser
      represents and warrants to each of the Shareholders as of the Closing Date
      that:

     

    Section
      2.22  Corporate
      Existence and Qualification; Corporate Documents

     

    . 
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Ohio, and is not required to be qualified to
      do
      business as a foreign corporation in any other jurisdiction where the failure
      to
      so qualify would have a material adverse effect on Purchaser. Purchaser has
      all
      required corporate power and authority to own its properties and to carry on
      its
      business as presently conducted.

     

    Section
      2.23  Authority,
      Approval and Enforceability

     

    .
      This
      Agreement and each other agreement to which Purchaser is a party have been
      duly
      executed and delivered by Purchaser, and Purchaser has all requisite corporate
      power and legal authority to execute and deliver this Agreement and each other
      agreement to which Purchaser is a party, to consummate the transactions
      contemplated hereby and thereby, and to perform its obligations hereunder and
      thereunder. This Agreement and each other agreement to which Purchaser is a
      party will constitute the legal, valid and binding obligations of Purchaser,
      enforceable in accordance with their respective terms, except as such
      enforceability may be limited by any applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors' rights generally, and except as the availability of equity remedies
      may be limited by the application of general principles of equity (regardless
      of
      whether such equitable principles are applied in a proceeding at law or in
      equity).

     

    Section
      2.24  No
      Defaults or Consents

     

    .
      Neither
      the execution and delivery of this Agreement nor the carrying out of the
      transactions contemplated hereby will:

     

    (a)  violate
      or conflict with any of the terms, conditions or provisions of the Articles
      of
      Incorporation or Code of Regulations of Purchaser;

     

    (b)  violate
      any Legal Requirements applicable to Purchaser;

     

    (c)  result
      in
      the creation of any lien, charge or other encumbrance on the shares of capital
      stock or any Property of Purchaser; or

     

    (d)  require
      Purchaser to obtain or make any waiver, consent, action, approval or
      authorization of, or registration, declaration, notice or filing with, any
      private non-governmental third party or any Governmental Authority.

     

    Section
      2.25  No
      Proceedings

     

    .
      No
      suit, action or other proceeding is pending or, to the Knowledge of the
      Purchaser, threatened before any Governmental Authority seeking to restrain
      Purchaser or prohibit its entry into this Agreement or prohibit the Closing,
      or
      seeking damages against Purchaser or its Properties, as a result of the
      consummation of the transaction contemplated by this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SURVIVAL

     

    Section
      2.26  Survival
      of Representations and Warranties

     

    .
      Notwithstanding any right of any party hereto fully to investigate the affairs
      of any other party hereto and notwithstanding any knowledge of facts determined
      or determinable by any party hereto pursuant to such investigation or right
      of
      investigation, each of Purchaser, on the one hand, and the Shareholders, on
      the
      other hand, has the right to rely fully upon the representations, warranties,
      covenants and agreements of Purchaser and the Shareholders, as the case may
      be,
      contained in this Agreement, or in any certificate delivered pursuant to any
      of
      the foregoing; provided, that no party hereto shall be entitled to rely on
      any
      representation or warranty made by any other party hereto herein to the extent
      that such party has actual knowledge that such representation or warranty is
      untrue or incorrect in any material respect. All such representations and
      warranties shall survive the execution and delivery of this Agreement and the
      Closing hereunder, and, except as otherwise specifically provided in this
      Agreement, shall thereafter terminate and expire at the end of the twenty fourth
      (24th) month following the Closing Date, subject to the limitations on
      indemnification set forth in Section 6.04 hereof. Notwithstanding the foregoing,
      (a) the representations and warranties set forth in Sections 3.01, 3.02,
      3.13(b), 3.19, 3.20, 4.01 and 4.02, and all covenants and agreements, shall
      survive indefinitely and shall not terminate or expire, and (b) the
      representations and warranties set forth in Section 3.07 shall terminate and
      expire at the end of the thirty sixth (36th) month following the Closing Date.
      

     

    ARTICLE
      III.  

    INDEMNIFICATION

    Section
      3.01  Obligation
      of the Shareholders to Indemnify

     

    .
      Subject
      to the limitations contained in Article V and Section 6.04 hereof, each
      Shareholder severally agrees to indemnify, defend and hold harmless Purchaser
      (and its Affiliates, successors and assigns and their respective officers and
      directors) from and against all losses, liabilities, damages, deficiencies,
      costs or expenses (including interest, penalties and reasonable attorneys’ fees
      and disbursements, but offset by any proceeds from insurance and taking into
      account the present value of any tax savings to Purchaser or any Company
      resulting from such losses, liabilities, damages, deficiencies, costs or
      expenses) (“Losses”)
      based
      upon, arising out of or otherwise in respect of any material inaccuracy in
      or
      any breach of any representation, warranty, covenant or agreement of such
      Shareholder contained in this Agreement.

     

    Section
      3.02  Obligation
      of Purchaser to Indemnify

     

    .
      Purchaser agrees to indemnify, defend and hold harmless each Shareholder from
      and against any Losses based upon, arising out of or otherwise in respect of
      any
      material inaccuracy in or any breach of any representation, warranty, covenant
      or agreement of Purchaser contained in this Agreement.

     

    Section
      3.03  Notice
      and Opportunity to Defend.

     

    (a)  Notice
      of Asserted Liability.
      Promptly after receipt by any party hereto (the “Indemnitee”)
      of
      notice of any demand, claim or circumstances which, with the lapse of time,
      would or might give rise to a claim or the commencement (or threatened
      commencement)

     

    (b)  of
      any
      action, proceeding or investigation (an “Asserted
      Liability”)
      that
      may result in a Loss, the Indemnitee shall give notice thereof (the
“Claims
      Notice”)
      to any
      other party (or parties) obligated to provide indemnification pursuant to
      Section 6.01 or 6.02 (the “Indemnifying Party”). The Claims Notice shall
      describe the Asserted Liability in reasonable detail and shall indicate the
      amount (estimated, if necessary and to the extent feasible) of the Loss that
      has
      been or may be suffered by the Indemnitee.

     

    (c)  Opportunity
      to Defend.
      The
      Indemnifying Party may elect to compromise or defend, at its own expense and
      by
      its own counsel, any Asserted Liability. If the Indemnifying Party elects to
      compromise or defend such Asserted Liability, it shall within thirty (30) days
      (or sooner, if the nature of the Asserted Liability so requires) notify the
      Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the
      expense of the Indemnifying Party, in the compromise of, or defense against,
      such Asserted Liability at the sole cost of the Indemnifying Party. If the
      Indemnifying Party elects not to compromise or defend the Asserted Liability,
      fails to notify the Indemnitee of its election as herein provided or contests
      its obligation to indemnify under this Agreement, the Indemnitee may pay,
      compromise or defend such Asserted Liability. Notwithstanding the foregoing,
      neither the Indemnifying Party nor the Indemnitee may settle or compromise
      any
      claim over the objection of the other, provided, however, that consent to
      settlement or compromise shall not be unreasonably withheld. In any event,
      the
      Indemnitee and the Indemnifying Party may participate (but not control), at
      their own expense, in the defense of such Asserted Liability. If the
      Indemnifying Party chooses to defend the claim, the Indemnitee shall make
      available to the Indemnifying Party any books, records or other documents within
      its control that are necessary or appropriate for such defense.

     

    Section
      3.04  Limitations
      on Indemnification

     

    .
      The
      indemnification provided for in Sections 6.01 and 6.02 shall be subject to
      the
      following limitations:

     

    (a)  The
      Shareholders shall not be obligated to pay any amounts for indemnification
      under
      this Article VI arising out of any Losses based upon, arising out of or
      otherwise in respect of any inaccuracy or breach disclosed to Purchaser prior
      to
      the Closing.

     

    (b)  Neither
      Purchaser nor the Shareholders shall be obligated to pay any amounts for
      indemnification for breach of a representation or warranty under this Article
      VI, except those based upon, arising out of or otherwise in respect of Sections
      3.01, 3.02, 3.07, 3.13(b), 3.19, 3.20 and 3.21 hereof (which shall be
      indemnifiable from the first dollar), until the aggregate indemnification
      payments, exclusive of those payable with respect to Sections 3.01, 3.02, 3.07,
      3.13(b), 3.19, 3.20 and 3.22, equals $1,000,000 (the “Deductible”),
      whereupon Purchaser, or the Shareholders, as the case may be, shall be obligated
      to pay any indemnification payments, in excess of the Deductible, in full.
      This
      Section 6.04(b) will not apply to any breach of any representation and warranty
      of which the breaching party had Knowledge at any time prior to the date on
      which such representation and warranty is made or any intentional breach by
      any
      party of any covenant or obligation. Notwithstanding anything to contrary
      contained herein, Shareholders shall not be obligated to pay any amounts for
      indemnification in excess of the Purchase Price.

     

    (c)  After
      the
      Closing, the indemnification rights set forth in this Article VI shall be each
      party's sole and exclusive remedy against the other party for any breach of
      any

     

    (d)  representation,
      warranty or covenant contained in this Agreement. Notwithstanding the foregoing,
      nothing herein shall prevent any party from bringing an action based upon
      allegations of fraud in connection with this Agreement.

     

    ARTICLE
      IV.  

    POST-CLOSING
      OBLIGATIONS

    Section
      4.01  Further
      Assurances

     

    .
      Following the Closing, the Shareholders and Purchaser shall execute and deliver
      such documents, and take such other action, as shall be reasonably requested
      by
      any other party hereto to carry out the transactions contemplated by this
      Agreement.

     

    Section
      4.02  Access
      to Records

     

    .
      From
      and after the Closing, (i) each of the Shareholders shall (A) deliver to
      Purchaser with all books, records, files, agreements and other information
      solely in the possession of the Shareholder relating to the Company, and (B)
      use
      his or her best efforts to permit Purchaser and its authorized employees,
      agents, accountants, legal counsel and other representatives to have access
      to
      the employees, counsel, accountants and other representatives of the
      Shareholders, in each case, to the extent and at all times reasonably requested
      by Purchaser for the purpose of investigating or defending any claim made
      against the Company in connection with periods ending on or before the Closing
      Date and (ii) Purchaser shall (A) permit the Shareholders and their authorized
      employees, agents, accountants, legal counsel and other representatives to
      have
      access to the books, records, files, agreements and other information of or
      regarding the Company in the possession of Purchaser or its affiliates, and
      (B)
      use its best efforts to permit the Shareholders and their respective authorized
      employees, agents, accountants, legal counsel and other representatives to
      have
      access to the employees, counsel, accountants and other representatives of
      Purchaser, the Company and their Affiliates, in each case, to the extent and
      at
      all times reasonably requested by the Shareholders, or any of them, for the
      purpose of (I) investigating or defending any claim made against the
      Shareholders in connection with Article VI, (II) securing information on matters
      or disputes with respect to Sections 1.02(b)(iii) through (v) and 6.05 hereof,
      or (III) with respect to any pre-Closing Date tax matters affecting the Company
      or the Shareholders.

     

    Section
      4.03  Tax
      Returns

     

    .
      Each of
      the Shareholders will be responsible for preparing and filing the Companies’ Tax
      Returns for all periods through the Effective Date, including, without
      limitation, the filing of an S-corporation Tax Return; provided, however, that
      Purchaser shall prepare and file Tax Returns for Tax periods that straddle
      the
      Effective Date. All Taxes payable for all periods through the Effective Date,
      regardless of which party prepares the relevant Tax Returns, shall be the
      responsibility of the Shareholders.

     

    ARTICLE
      V.  

    MISCELLANEOUS

    Section
      5.01  Brokers

     

    .
      Regardless of whether the Closing shall occur, (i) each Shareholder shall
      severally indemnify and hold harmless Purchaser and the Company from and against
      any and all liability for any brokers or finders' fees arising with respect
      to
      brokers or

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    finders
      retained or engaged by such Shareholder in respect of the transactions
      contemplated by this Agreement, and (ii) Purchaser shall indemnify and hold
      harmless the Shareholders from and against any and all liability for any
      brokers' or finders' fees arising with respect to brokers or finders retained
      or
      engaged by Purchaser in respect of the transactions contemplated by this
      Agreement.

     

    Section
      5.02  Costs
      and Expenses

     

    .
      Each of
      the parties to this Agreement shall bear its own expenses incurred in connection
      with the negotiation, preparation, execution and closing of this Agreement
      and
      the transactions contemplated hereby.

     

    Section
      5.03  Notices

     

    .
      Any
      notice, request, instruction, correspondence or other document to be given
      hereunder by any party hereto to another (herein collectively called
“Notice”)
      shall
      be in writing and delivered personally or mailed by registered or certified
      mail, postage prepaid and return receipt requested, or by telecopier, as
      follows:

     

    PURCHASER:  ELS
      Human
      Resource Solutions, Inc.

    3235
      Omni
      Drive

    Cincinnati,
      OH 45245

    Telecopy
      No.: (513) 943-4908

    

    With
      a
      copy to:  Greg
      Bartko, Esq.

    3475
      Lenox Road, Suite 400

    Atlanta,
      Georgia 30326

    Telecopy
      No.: (404) 238-0551

    

    THE
      SHAREHOLDERS: To
      such
      Shareholder at the address

    specified
      on Exhibit
      A
      hereof.

    

    With
      a
      copy to:  Tracey
      A.
      Puthoff, Esq.

    Taft,
      Stettinius & Hollister LLP

    425
      Walnut Street, Suite 1800

    Cincinnati,
      OH 45202-3957

    Telecopy
      No.: 513-381-0205

    

    Each
      of
      the above addresses for notice purposes may be changed by providing appropriate
      notice hereunder. Notice given by personal delivery or registered mail shall
      be
      effective upon actual receipt. Notice given by telecopier shall be effective
      upon actual receipt if received during the recipient's normal business hours,
      or
      at the beginning of the recipient's next normal business day after receipt
      if
      not received during the recipient's normal business hours. All Notices by
      telecopier shall be confirmed by the sender thereof promptly after transmission
      in writing by registered mail or personal delivery. Anything to the contrary
      contained herein notwithstanding, Notices to any party hereto shall not be
      deemed effective with respect to such party until such Notice would, but for
      this sentence, be effective both as to such party and as to all other persons
      to
      whom copies are provided above to be given.

     

    Section
      5.04  Governing
      Law

     

    .
      The
      provisions of this Agreement and the documents delivered pursuant hereto shall
      be governed by and construed in accordance with the laws of the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    State
      of
      Ohio (excluding any conflict of law rule or principle that would refer to the
      laws of another jurisdiction).

     

    Section
      5.05  Entire
      Agreement, Amendments and Waivers

     

    .
      This
      Agreement, together with all exhibits and schedules attached hereto, constitutes
      the entire agreement between the parties hereto pertaining to the subject matter
      hereof and supersedes all prior agreements, understandings, negotiations and
      discussions, whether oral or written, of the parties, and there are no
      warranties, representations or other agreements between the parties in
      connection with the subject matter hereof except as set forth specifically
      herein or contemplated hereby. No supplement, modification or waiver of this
      Agreement shall be binding unless executed in writing by the party to be bound
      thereby. No waiver of any of the provisions of this Agreement shall be deemed
      or
      shall constitute a waiver of any other provision hereof (regardless of whether
      similar), nor shall any such waiver constitute a continuing waiver unless
      otherwise expressly provided.

     

    Section
      5.06  Binding
      Effect and Assignment

     

    .
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, executors, legal representatives, permitted
      successors and assigns; but neither this Agreement nor any of the rights,
      benefits or obligations hereunder shall be assigned, by operation of law or
      otherwise, by any party hereto without the prior written consent of the other
      party. Nothing in this Agreement, express or implied, is intended to confer
      upon
      any person or entity, other than the parties hereto and their respective heirs,
      executors, legal representatives, permitted successors and assigns, any rights,
      benefits or obligations hereunder.

     

    Section
      5.07  Remedies

     

    .
      The
      rights and remedies provided by this Agreement are cumulative, and the use
      of
      any one right or remedy by any party hereto shall not preclude or constitute
      a
      waiver of its right to use any or all other remedies provided by this
      Agreement.

     

    Section
      5.08  Exhibits
      and Schedules

     

    .
      The
      exhibits and schedules referred to herein are attached hereto and incorporated
      herein by this reference.

     

    Section
      5.09  Multiple
      Counterparts

     

    .
      This
      Agreement may be executed 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.

     

    Section
      5.10  References

     

    .
      Whenever required by the context, and as used in this Agreement, the singular
      number shall include the plural and pronouns and any variations thereof shall
      be
      deemed to refer to the masculine, feminine, neuter, singular or plural, as
      the
      identification of the person may require. References to monetary amounts and
      specific named statutes are intended to be and shall be construed as references
      to United States dollars and statutes of the United States, respectively, unless
      the context otherwise requires.

     

    Section
      5.11  Survival

     

    .
      Any
      provision of this Agreement which contemplates performance or the existence
      of
      obligations after the Closing Date, and any and all representations and
      warranties set forth in this Agreement, shall not be deemed to be merged into
      or
      waived by the execution and delivery of the instruments executed at the Closing,
      but shall expressly survive Closing for the time period set forth in Section
      6.01 hereof and shall be

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    binding
      upon the party or parties obligated thereby in accordance with the terms of
      this
      Agreement, subject to any limitations expressly set forth in this
      Agreement.

     

    ARTICLE
      VI.  

    DEFINITIONS

    Capitalized
      terms used in this Agreement shall have the respective meanings ascribed to
      such
      terms in this Article IX, unless otherwise defined in this
      Agreement.

     

    Section
      6.01  Affiliate

     

    .
      The
      term “Affiliate”
shall
      mean, with respect to any person, any other person controlling, controlled
      by or
      under common control with such person. The term “control” as used in the
      preceding sentence means, with respect to a corporation, the right to exercise,
      directly or indirectly, more than fifty percent (50%) of the voting rights
      attributable to the shares of the controlled corporation and, with respect
      to
      any person other than a corporation, the possession, directly or indirectly,
      of
      the power to direct or cause the direction of the management or policies of
      such
      person.

     

    Section
      6.02  Company
      Assets

     

    .
      The
      term “Company
      Assets”
shall
      mean, with respect to any Company, all of the Properties, Contracts, and Permits
      that were Used by the Company as of the Balance Sheet Date, and those Used
      by
      such Company at any time after such dates until the Closing Date.

     

    Section
      6.03  Governmental
      Authorities

     

    .
      The
      term “Governmental
      Authorities”
shall
      mean any nation or country (including but not limited to the United States)
      and
      any commonwealth, territory or possession thereof and any political subdivision
      of any of the foregoing, including but not limited to courts, departments,
      commissions, boards, bureaus, agencies, ministries or other
      instrumentalities.

     

    Section
      6.04  Knowledge

     

    .
      The
      term “Knowledge”
shall
      mean the actual knowledge of a party and, in the case of the Company, of any
      of
      its directors or executive officers with respect to the representation being
      made, and, in the case of the Shareholders, such knowledge as reasonably should
      have been obtained upon due investigation and inquiry into the representation
      being made.

     

    Section
      6.05  Legal
      Requirements

     

    .
      The
      term “Legal
      Requirements”,
      when
      described as being applicable to any person, shall mean any and all laws
      (statutory, judicial or otherwise), ordinances, regulations, judgments, orders,
      directives, injunctions, writs, decrees or awards of, and any contracts with,
      any Governmental Authority, in each case as and to the extent applicable to
      such
      person or such person's business, operations or Properties.

     

    Section
      6.06  Material
      Adverse Change

     

    .
      The
      term “Material
      Adverse Change”
shall
      mean a material adverse change in a Company’s condition (financial or
      otherwise), operations, results of operations, business, Properties or
      liabilities.

     

    Section
      6.07  Material
      Adverse Effect

     

    .
      The
      term “Material
      Adverse Effect”
shall
      mean a material adverse effect on a Company’s operations, business, Properties,
      financial condition or results of operations.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Permits

     

    .
      The
      term “Permits”
shall
      mean any and all permits or orders under any Legal Requirement or otherwise
      granted by any Governmental Authority.

     

    Section
      6.08  Properties

     

    .
      The
      term “Properties”
shall
      mean any and all properties and assets (real, personal or mixed, tangible or
      intangible).

     

    Section
      6.09  Regulations

     

    .
      The
      term “Regulations”
shall
      mean any and all regulations promulgated by the Department of the Treasury
      pursuant to the Code.

     

    Section
      6.10  Taxes
      or Tax

     

    .
      The
      term “Taxes”
or
      “Tax”
means
      any federal, state, local, or foreign income, gross receipts, license, payroll,
      employment, gift, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including taxes under Code §59A), customs duties,
      capital stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add-on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty, or
      addition thereto, whether disputed or not.

     

    Section
      6.11  Tax
      Returns

     

    .
      The
      term “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    Section
      6.12  Used

     

    .
      The
      term “Used”
shall
      mean, with respect to the Properties, Contracts or Permits of a Company, those
      owned, leased, licensed or otherwise held by a Company which were acquired
      for
      use or held for use by a Company in connection with a Company’s business and
      operations, whether or not reflected on the books of account.

     

    

     

    

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXECUTED
      as of the date first written above.

     

    ELS
      HUMAN
      RESOURCE SOLUTIONS, INC.

    

    By:
      /s/ Donald Quarterman 

    Donald
      E.
      Quarterman

    President

    

    

    

     

    SHAREHOLDERS:

    

    

    BARBARA
      L. HEINEMAN YEAR 2002 REVOCABLE TRUST ORIGINALLY DATED AUGUST 16,
      2002

    

    /s/
      Barbara Heineman

    Barbara
      L. Heineman, Trustee

    

    

    

    

    /s/
      William Walton

    William
      J. Walton

    

    
      
        Signature
          Page

         

      

      
         

        
          

        

      

      
         

      

    

    FOR
      PURPOSES OF SECTION 2.04 ONLY

    

    

    

    EMPLOYEE
      LEASING SERVICES, INC.

    

    By:_/s/
      Ronald Heineman_____________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    ELS,
      INC.

    

    By:
      /s/ Ronald Heineman_____________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    ELS
      OUTSOURCE SERVICES, INC.

    

    By:/s/
      Scott Horne____________________

    Scott
      D.
      Horne

    Vice
      President

    

    

    

    

    ELS
      PAYROLL SOLUTIONS, INC.

    

    By:
      /s/ Ronald Heineman_____________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    PREMIER
      HR SERVICES, INC.

    

    By:
      /s/ Ronald Heineman_____________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    ELS
      HUMAN
      RESOURCES, INC.

    

    By:
      /s/ Ronald Heineman____________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    FOXSTAR,
      INC.

    

    By:/s/
      William Walton____________

    William
      J. Walton

    President

    

    

    

    

    INTEGRATED
      PAYROLL SOLUTIONS, INC.

    

    By:
      /s/ Ronald Heineman___________

    Ronald
      E.
      Heineman

    President

    

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    ELS
      PERSONNEL SERVICES, INC.

    

    By:
      /s/ Ronald Heineman______________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    RIO
      SERVICES, INC.

    

    By:
      /s/ Ronald Heineman__________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    IMPERIAL
      HUMAN RESOURCES, INC.

    

    By:/s/
      Stephen Roux_____________

    Stephen
      R. Roux

    Vice
      President

    

    

    

    

    ELS
      PAYROLL MANAGERS, INC.

    

    By:
      /s/ Ronald Heineman___________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    ELS
      HR,
      INC.

    

    By:/s/
      Ronald Heineman__________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    ELS
      TEMPORARY SOLUTIONS, INC.

    

    By:/s/
      Ronald Heineman___________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    RESOLVE
      HR SOLUTIONS, INC.

    

    By:
      /s/ Ronald Heineman_______________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    FIDELITY
      CAPITAL, INC.

    

    By:_
      /s/ Ronald Heineman___________

    Ronald
      E.
      Heineman

    President

    

    

    

    

    STREAMLINE
      MANAGEMENT, INC.

    

    By:
      /s/ Ronald Heineman__________

    Ronald
      E.
      Heineman

    President

    

    

    
      
        
          Signature
            Page

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXHIBIT
      A

     

    Shareholders

     

    

     

    1.
      Employee Leasing Services, Inc.     

    

    Authorized
      Capital Stock = 750 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    80

    

    William
      J. Walton      80

    

    

    

    2.
      ELS,
      Inc.      

    

    Authorized
      Capital Stock = 850 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    40

    

    William
      J. Walton      40

    

    

    

    3.
      ELS
      Outsource Services, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    William
      J. Walton      390

    

    
      
        A-

         

      

      
         

        
          

        

      

      
         

      

    

    

    4.
      ELS
      Payroll Solutions, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100

    

    William
      J. Walton      100

    

    

    

    5.
      Premier HR Services, Inc.      

    

    Authorized
      Capital Stock = 1,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100 

    

    William
      J. Walton      100

    

    

    

    6.
      ELS
      Human Resources, Inc.      

    

    Authorized
      Capital Stock = 850 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    40

    

    William
      J. Walton      40

    

    

    
      
        A-

         

      

      
         

        
          

        

      

      
         

      

    

    

    7.
      Foxstar, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    William
      J. Walton      900

    

    

    

    8.
      Integrated Payroll Solutions, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    790

    

    

    

    9.
      ELS
      Personnel Services, Inc.      

    

    Authorized
      Capital Stock = 850 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    40

    

    William
      J. Walton      40

    

    

    
      
        A-

         

      

      
         

        
          

        

      

      
         

      

    

    10.
      Rio
      Services, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    790

    

    

    

    11.
      Imperial Human Resources, Inc.      

    

    Authorized
      Capital Stock = 60,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    William
      J. Walton      720

    

    

    

    12.
      ELS
      Payroll Managers, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100

    

    William
      J. Walton      100

    

    

    

    
      
        A-

         

      

      
         

        
          

        

      

      
         

      

    

    13.
      ELS
      HR, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100  

    

    William
      J. Walton      100

    

    

    

    14.
      ELS
      Temporary Solutions, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100

    

    William
      J. Walton      100

    

    

    

    15.
      Resolve HR Solutions, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100

     

    William
      J. Walton      100

    

    

    

    
      
        A-

         

      

      
         

        
          

        

      

      
         

      

    

    16.
      Fidelity Capital, Inc.      

    

    Authorized
      Capital Stock = 1,500 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    100

     

    

    

    

    17.
      Streamline Management, Inc.      

    

    Authorized
      Capital Stock = 5,000 shares of common stock

    

    

    No.
      of
      Shares Owned

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    500

    

    

    
      
        
          A-

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXHIBIT
      B

    

    Purchase
      Price

    

    

    Note

    

    Barbara
      L. Heineman Year 2002 Revocable Trust

    Originally
      Dated August 16, 2002    $8,425,027.59

    

    William
      J. Walton      $8,238,828.59

    

    
      
        
          B-

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Schedule
      3.02

    

    Agreements

    

    Agreements

    

    	1.  	
            Shareholder
              Agreement dated as of January 1, 2001, by and among ELS, William J.
              Walton, Ronald E. Heineman and
              Robert T. McMillin.

          

     

    	2.  	
            Shareholder
              Agreement dated as of January 1, 2001, by and among ELS Human Resources,
              Inc., William J. Walton, Ronald E. Heineman and Robert T.
              McMillin.

          

     

    	3.  	
            Shareholder
              Agreement dated as of January 1, 2001, by and among ELS, Inc., William
              J.
              Walton, Ronald E. Heineman and Robert T.
              McMillin.

          

     

    	4.  	
            Shareholder
              Agreement dated as of January 1, 2001, by and among ELS Personnel
              Services, Inc., William J. Walton, Ronald E. Heineman and Robert T.
              McMillin.

          

     

    	5.  	
            Management
              Agreement dated as of December 31, 2002, between ELS Outsource Services,
              Inc. and ELS Administrative Services,
              LLC.

          

     

    	6.  	
            Management
              Agreement dated as of December 31, 2002, between Integrated Payroll
              Solutions, Inc. and ELS Administrative Services,
              LLC.

          

     

    	7.  	
            Management
              Agreement dated as of December 31, 2002, between Rio Services, Inc.
              and
              ELS Administrative Services, LLC.

          

     

    	8.  	
            Management
              Agreement dated as of December 31, 2002, between Imperial Human Resources,
              Inc. and ELS Administrative Services,
              LLC.

          

     

    	9.  	
            Management
              Agreement dated as of December 31, 2002, between Foxstar, Inc. and
              ELS
              Administrative Services, LLC.

          

     

    	10.  	
            Management
              Agreement dated as of December 31, 2002, between Streamline Management,
              Inc. and ELS Administrative Services,
              LLC.

          

     

    	11.  	
            Agreement
              dated as of December 31, 2002, by and between ELS Administrative Services,
              LLC, Rockmor Group, Inc., Foxstar, Inc., Luxor Solutions, Inc., Mandalay
              Services, Inc., Streamline Management, Inc., Imperial Human Resources,
              Inc., Rio Services, Inc., Integrated Payroll Solutions, Inc., ELS
              Advantage, Inc., ELS Outsource Services, Inc., and ELS Employee Services,
              Inc.

          

     

    Other
      Owners of Companies

    

    	1.  	
            Scott
              Horne and Steve Roux own, respectively, 390 and 220 shares of common
              stock
              of ELS Outsource Services, Inc., which shares are being sold to Purchaser
              separately.

          

     

    	2.  	
            Scott
              Horne owns 210 shares of Integrated Payroll Solutions, Inc., which
              shares
              are being sold to Purchaser separately.

          

     

    	3.  	
            Steve
              Roux owns 210 shares of Rio Services, Inc., which shares are being
              sold to
              Purchaser separately.

          

     

    	4.  	
            Steve
              Roux owns 280 shares of Imperial Human Resources, Inc., which shares
              are
              being sold to Purchaser separately.

          

     

    

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Schedule
      3.04

    

    Consents

    

    1. [Loan
      agreements with 5/3]

    2. [Form
      PEO
      contract]

    3. [Providence
      contract]

    4. [Shelby
      Township, MI lease]

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Schedule
      3.09(b)

    

    

    

    The
      U.S.
      Department of Labor is conducting an audit of ELS’ health plan, and the
      Government has indicated that it is likely to issue a notice claiming ERISA
      violations.

     

    

    

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Schedule
      3.15

    

    Litigation

    

    	1.  	
            In
              Professions,
              Inc. v. Tonya Ruble,
              Case No. A0601813 (Hamilton County, Ohio Court of Common Pleas), the
              former employer claims that Ms. Ruble's employment with ELS violates
              a
              noncompetition agreement that she allegedly entered with
              Professions.

          

    	2.  	
            ELS has
              been informed of demand letters sent to ELS employee Wayne Vinson by
              his former employer, CBS Personnel, concerning a noncompetition agreement
              that he allegedly entered with CBS.  No lawsuit has been filed by
              CBS at this time.

          

    	3.  	
            Employers
              Security Insurance Co. made a disputed attempt to draw against a
              letter of credit issued by Fifth Third Bank at the request of ELS. 
              To prevent a draw against the letter of credit, ELS filed the case
              titled
              Employee Leasing Services, et al. v. Employers Security Insurance Co.,
              et
              al. in December, 2005, in the Hamilton County Court of Common
              Pleas.  In February, 2006 this case was settled without a
              draw on the letter of credit being made.

          

    

    

    

    

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Schedule
      3.18

    

    Tax
      Matters

    

    

    

    During
      2005, the Ohio Department of Taxation began conducting a sales and use tax
      audit
      of ELS for the years 1999-2004. The use tax portion of the audit was completed
      in February 2006 and ELS recently paid an agreed amount of $40,934.95, including
      interest and penalty. The sales tax portion of the audit is not
      completed.

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