Document:

exv10w44

 

EXHIBIT 10.44

XATA CORPORATION

     THIS MATCHING RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made effective as of
October 1, 2006 by and between XATA Corporation, a Minnesota corporation (the “Company”) and John
J. Coughlan (“Employee”).

Recitals

     The Company and the Employee have entered into an Executive Employment Agreement effective as
of October 1, 2006 (the “Employment Agreement”). The Company desires to afford the Employee an
opportunity to acquire shares of its common stock, par value $.01 per share (the “Shares”) in an
amount equal to the number of shares of common stock purchased by Employee from the Company at the
time of commencement of his employment, as more fully disclosed and provided in the Employment
Agreement. For purposes of this Agreement, employment by any subsidiary of the Company is
equivalent to employment by the Company. Capitalized terms used herein and not otherwise defined
shall have the meanings assigned to them in the Employment Agreement.

     ACCORDINGLY, in consideration of the premises and of the mutual covenants and agreements
contained herein, the Company and the Employee hereby agree as follows:

     1. Restricted Stock Award. Subject to the terms and provisions of this Agreement and
the Employment Agreement, the Company hereby grants to Employee as of the date hereof a restricted
stock award for ninety two thousand five hundred and ninety-three (92,593) Shares (the “Award
Shares”). For purposes of Section 16 under the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder, the grant date for the Award Shares shall be the effective
date hereof; provided, however, all of Employee’s right, title and interest in and to the Award
Shares shall be subject to Section 2 below.

     2. Vesting of Award Shares.

          (a) Subject to Sections 2(b), (c), (d), (e) and (f) below, all of Employee’s right, title and
interest in and to the Award Shares is and shall be contingent upon and subject to the continued
full-time employment of Employee by the Company during the vesting periods (the “Vesting Periods”).
On the last day (the “Vesting Date”) of each Vesting Period, and provided that Employee is then a
full time employee of the Company, Employee shall be deemed to be fully vested without restriction
in all of the Award Shares covered by that Vesting Period.

	 	 	 	 	 	 	 
	Award Shares	 	Grant Date	 	Vesting Date	 	Shares Vested
	 
	92,593

	 	October 1, 2006 
	 	September 30, 2007 
	 	All Shares 

          (b) In the event that Employee voluntarily resigns from Employee’s full-time employment
with the Company for a reason other than Good Reason or is terminated by the

 

 

Company for Cause
during any Vesting Period, Employee shall forfeit all right, title and interest in and to all
unvested Award Shares.

          (c) In the event that Employee is terminated from employment by the Company prior to the end
of any Vesting Period because the Employee has died or become Disabled, Employee shall thereupon
become immediately vested without restriction in all of the Award Shares covered by the shorter of
the next three (3) months immediately following the Date of Termination and that unexpired Vesting
Period to the same extent as though Employee had remained employed through the end of such three
(3) month period or unexpired Vesting Period, respectively. Employee shall forfeit all right,
title and interest in and to all other unvested Award Shares.

          (d) In the event that Employee is terminated from employment by the Company without Cause
(other than in the event of death or Disability, it being understood that a purported termination
for Disability or for Cause which is disputed and finally determined not to have been a proper
termination for Cause or Disability shall be a termination by the Company without Cause) or if
Employee terminates his employment for Good Reason (in each case, in the absence of a Change in
Control), Employee shall thereupon become immediately vested without restriction in all of the
Award Shares that would have vested pursuant to Section 2(a) above over the then remaining term of
the Employment Agreement or, if longer, the twelve (12) month period immediately following the Date
of Termination had Employee remained employed through the end of such term or twelve (12) month
period, respectively.

          (e) Notwithstanding anything to the contrary in Section 2 (a), (b), (c) or (d) above, in the
event that the Company consummates a Change of Control, Employee shall thereupon become immediately
vested without restriction in one-half of the number of unvested Award Shares as of the date of the
Change of Control (comprising those Shares scheduled next to vest), and the remaining unvested
Award Shares shall continue to vest in accordance with this Section 2.

          (f) Notwithstanding anything to the contrary in this Section 2, in the event that (i) upon or
within six months before a Change of Control or within two years following a Change of Control
either (x) the Company terminates Employee’s employment without Cause (other than in the event of
death or Disability, it being understood that a purported termination for Disability or for Cause
which is disputed and finally determined not to have been proper termination for Cause or
Disability shall be a termination by the Company without Cause) or (y) Employee terminates his
employment for Good Reason, or (ii) the Chairman of the Board of the Company immediately prior to
the consummation of a Change of Control ceases to be the Chairman of the Board of the Company, or
any successor thereto, immediately following the Change of Control and Employee terminates his
employment, then Employee shall thereupon become immediately vested without restriction in all of
the unvested Award Shares.

     3. Restriction on Transfer. No interest in unvested Award Shares shall be
transferable by any means (e.g. sale, assignment, pledge, gift).

 

 

     4. Issuance and Delivery of Certificates for Award Shares.

          (a) As soon as practicable after the execution hereof, the Company shall issue in Employee’s
name, and retain in the custody of the Company pursuant to Section 4(b) below, a certificate for
paid-up, non-assessable Shares for the full number of the Award Shares. The Company shall place a
stop transfer order on its stock records with respect to the Award Shares, and the certificate for
the Award Shares shall contain the following legend:

“The securities evidenced by this certificate were issued pursuant
to a Restricted Stock Award Agreement between the holder and the
issuer dated                      (the “Agreement”), and no sale, offer
to sell, transfer, pledge or other hypothecation of these securities
may be made so long as the securities remain subject to the
restrictions set forth in the Agreement.”

          (b) Employee acknowledges and agrees that the Company shall retain the custody of the
certificates for the Award Shares, and that the certificates will not be delivered to Employee
except as provided in Section 4(c) below. Upon execution of this Agreement, Employee has also
executed and delivered to the Company an Assignment Separate from Certificate, authorizing the
Company as attorney to transfer the certificate for the Award Shares to the Company upon forfeiture
pursuant to this Agreement.

          (c) As soon as reasonably practicable after termination of the transfer restrictions pursuant
to Section 3 above, the Company will deliver a certificate for the Award Shares, adjusted as
necessary for the actual number of Award Shares in which Employee has become vested, without the
restrictive legend set forth in Section 4(a). Delivery of the certificate under this Section 4(c)
shall be made at the principal office of the Company to the person or persons entitled thereto
during ordinary business hours of the Company not more than thirty (30) days after the vesting of
the Award Shares, or at such time, place and manner as may be agreed upon by the Company and the
person or persons entitled to the Award Shares.

     5. Rights and Restrictions as a Shareholder. During the Employee’s continued full
time employment with the Company or its subsidiaries Employee shall have full voting rights,
dividend rights and other rights as a shareholder with respect to all vested (but not unvested)
Award Shares. So long as the Company retains custody of the certificates for the Award Shares,
Employee shall not (i) sell, offer to sell, transfer, pledge or hypothecate any record or
beneficial interest in the Award Shares, other than to the Company as provided in this Agreement or
(ii) grant any proxies or voting rights with respect to the Award Shares, except to the Company.
The Employee hereby grants an irrevocable proxy to the chief operating officer and the chief
financial officer of the Company (the act of one of them being sufficient), which is coupled with
an interest as described in Minnesota Statutes § 302.449, to vote all unvested Award Shares,
subject to direction by the Board of Directors of the Company, on any and all matters put to a vote
of the shareholders of the Company. Upon vesting of the Award Shares pursuant to Section 2 above,
Employee (or, in the event of the death of Employee, the person or persons then entitled to the
Award Shares or any portion thereof) shall have full voting rights, dividend rights and other
rights as a shareholder with respect to such Award Shares.

 

 

     6. Stock Dividends, Stock Splits and Other Adjustments. During the time that the
Award Shares are subject to the vesting restrictions set forth in Section 2 above, if a stock
dividend or stock split is declared on the outstanding Shares of the Company, or if outstanding
Shares of the Company are changed into or exchanged for a different number or kind of shares or
other securities of the Company or of another corporation by reason of any reorganization, merger,
consolidation, recapitalization, reclassification, stock split, reverse stock split, combination of
shares or dividends payable in capital stock, appropriate adjustment shall be made in the number
and kind of shares as to which the Award Shares relate (the “Adjusted Shares”), to the end that the
proportionate interest of Employee, as a shareholder of the Company with respect to the Award
Shares when and if vested, shall be maintained as before the occurrence of such event. As used
herein, the term Award Shares include any corresponding Adjusted Shares. The Company shall retain
the custody of each certificate for the Adjusted Shares pursuant to Section 4(b) above.

     7. Withholding. Employee shall pay on a timely basis all withholding and payroll
taxes and/or excise taxes required by law with respect to the Award Shares (collectively,
“Withholding Taxes”). The delivery of any Award Shares (or portion thereof, if any) to Employee
under this Agreement shall be subject to and conditioned upon Employee’s payment of all applicable
Withholding Taxes. Employee hereby authorizes the Company to withhold such Withholding Taxes from
his salary and/or commissions.

     8. Investment Representations. Unless a registration statement under the Securities
Act of 1933, as amended, is in effect with respect to the Award Shares on the date of issuance of
the Award Shares, Employee will be deemed to have made the following investment representation on
the date of issuance:

Employee intends to acquire the Award Shares for Employee’s own
account for investment purposes and not with a view to resale in
connection with any distribution thereof. Employee has no present
intention, and is not a party to any agreement or arrangement, to
resell or dispose of any of the Award Shares. Employee understands
and agrees that the Company has no obligation to register the Award
Shares and that the Award Shares will not be registered under the
Securities Act of 1933, as amended (the “Act”), or under applicable
state securities laws, on the grounds that the Award Shares are
being issued in a transaction not involving a public offering and
that, consequently, such transaction is exempt from registration
under the Act and the state securities laws. Employee further
understands and agrees that the Award Shares may not be sold,
transferred or otherwise disposed of except pursuant to an effective
registration statement or appropriate exemption from registration
under the foregoing securities acts. Accordingly, Employee
acknowledges that the Company is not
required to recognize any transfer of the Award Shares if such
transfer would result in violation of any federal or state law
regarding the offering or sale of securities. The

 

 

Company may place
a stop transfer order on its stock records with respect to the Award
Shares, and the certificate(s) for the Award Shares may contain
substantially the following legend:

“The securities evidenced by this certificate have not been
registered either under any applicable federal law and rules or
applicable state law and rules. No sale, offer to sell, or transfer
of these securities may be made unless a registration statement
under the Securities Act of 1933, as amended, and any applicable
state law with respect to such securities is then in effect or an
exemption from the registration requirements of such law is then, in
fact, applicable to such securities.”

     9. Legend on Shares if Registered. If Employee is deemed an affiliate of the Company,
the Company may place a stop transfer order on its stock records with respect to the Award Shares,
and the certificate(s) for the Award Shares (or a portion thereof) may contain substantially the
following legend:

“The securities evidenced by this certificate were issued to an
affiliate of the issuer, and the resale of such securities is
subject to the restrictions of Rule 144 under the Securities Act of
1933, as amended, pertaining to shares held by affiliates.”

     10. Expenses. Nothing contained in this Agreement shall be construed to impose any
liability on the Company in favor of the Employee for any cost, loss or expense the Employee may
incur in connection with, or arising out of any transaction under, this Agreement.

     11. No Employment Agreement. Nothing in this Agreement shall be construed to
constitute or be evidence of an agreement or understanding, express or implied, on the part of the
Company to employ the Employee on any terms or for any specific period of time.

     12. Nontransferability. The rights of the Employee under this Agreement shall not be
assigned, transferred, pledged or otherwise hypothecated by the Employee other than by will or the
laws of descent and distribution.

     13. Fractional Shares. No fraction of a share shall be deliverable pursuant to this
Agreement, but in the event any adjustment hereunder of the number of the Award Shares shall cause
such number to include a fraction of a share, such fraction shall be adjusted to the nearest
smaller whole number of shares.

     14. Complete Agreement, Amendment. This Agreement and the Employment Agreement, which
by this reference is hereby incorporated herein in its entirety, contain the entire agreement
between the Company and Employee with respect to the transactions contemplated
hereby. Any modification of the terms of this Agreement must be in writing and signed by each of
the parties. Notwithstanding the foregoing, this Agreement may be modified by the Employment
Agreement (or any amendment thereto) between the parties.

 

 

     15. Governing Law. Any issue related to the formation, execution, performance and
interpretation of this Agreement shall be governed by the laws of the State of Minnesota.

     16. Headings. The section and subsection headings used in this Agreement are for
convenient reference and are not a part of this Agreement.

	 	 	 	 	 	 	 
	XATA CORPORATION	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	Title

	 	 

	 	 

John J. Coughlanexv10w1

 

Exhibit 10.1

CONVERTIBLE NOTE AND WARRANT SALE AGREEMENT

     CONVERTIBLE NOTE AND WARRANT SALE AGREEMENT (this “Agreement”) dated as of September
28, 2006 between AMATIS LIMITED (“Seller”), Global Employment Holdings, Inc.
(“Global”) and the Purchasers named in Schedule I hereto (the “Purchasers”).

RECITALS

     Seller owns $18,170,000 aggregate principal amount of Senior Secured Convertible Notes (the
“Notes”) issued by Global and warrants to purchase 290,720 shares of Global’s common stock
with an exercise price of $6.25 per share (the “Warrants,” and together with the Notes, the
“Securities”), purchased from Global on March 31, 2006; and

     Seller wishes to sell, and the Purchasers wish to purchase, the Securities on the terms set
forth herein (the “Sale”).

AGREEMENT

Seller and the Purchasers agree as follows:

1. Purchase and Sale. Subject to the terms and conditions herein, each Purchaser shall
purchase the portion of the Securities set forth opposite its name on Schedule I hereto for the
dollar amount set forth opposite its name thereon (together, the “Purchase Price”). The
full interest payment due on October 1, 2006 shall be paid to the Purchasers. On the business day
that all parties hereto have executed and delivered this Agreement (the “Closing Date”),
each Purchaser shall pay by wire transfer its portion of the Purchase Price to Seller pursuant to
wire instructions furnished by Seller. On the Closing Date, Global shall (i) cancel on its books
the Securities held in the name of Seller, (ii) cancel on its books the Securities purchased by
Global hereunder, and (iii) issue new Securities in the names and amounts forth on Schedule I and
deliver them to the respective Purchasers. Also on the Closing Date Seller shall return the old
Securities to Global. Assuming each Purchaser otherwise fulfills its obligations to pay for its
portion of Securities as outlined in this Agreement, Global hereby attests that the validity of
each such Purchaser’s ownership in its portion of Securities to be purchased shall be absolute and
in no way be contingent on, or dependent upon, the Seller fulfilling its obligations to deliver its
old Securities to Global.

2. Closing Conditions.

	 	(a)	 	The obligations of each Purchaser under this Agreement are subject to
satisfaction of the following conditions:

               (i) Representations and Warranties. The representations and warranties of
Seller contained in Section 3 will be true and correct on and as of the Closing Date
with the same effect as though such representations and warranties had been made on
and as of the Closing Date.

 

 

               (ii) Performance. Seller will have performed and complied with all covenants,
agreements, obligations and conditions contained in this Agreement that are required
to be performed or complied with by it on or before the Closing Date.

               (iii) Certificate. An officer of Seller will deliver to the Purchasers a
certificate dated the Closing Date and certifying that the conditions specified in
paragraphs (a) and (b) have been fulfilled.

               (iv) No Injunctions. No temporary restraining order, preliminary or permanent
injunction or other order issued by any court of competent jurisdiction or other
legal or regulatory restraint or prohibition preventing the consummation of the Sale
shall have been issued, nor shall any proceeding brought by a domestic
administrative agency or commission or other domestic governmental entity or other
third party, seeking any of the foregoing be pending.

	 	(b)	 	The obligations of Seller under this Agreement are subject to satisfaction of
the following conditions:

     (i) Representations and Warranties. The representations and warranties of each
Purchaser contained in Section 4 will be true and correct on and as of the Closing
Date with the same effect as though such representations and warranties had been
made on and as of the Closing Date.

     (ii) Performance. Each Purchaser will have performed and complied with all
covenants, agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing Date.

     (iii) No Injunctions. No temporary restraining order, preliminary or permanent
injunction or other order issued by any court of competent jurisdiction or other
legal or regulatory restraint or prohibition preventing the consummation of the Sale
shall have been issued, nor shall any proceeding brought by a domestic
administrative agency or commission or other domestic governmental entity or other
third party, seeking any of the foregoing be pending.

3. Representations and Warranties of Seller. Seller hereby represents and warrants to the
Purchasers that:

	 	(a)	 	Organization. Seller is a company duly organized, validly existing and in good
standing under the laws of the Cayman Islands, and has all necessary limited
partnership powers to own its assets and to carry on its business as now owned and
operated by it.

2

 

	 	(b)	 	Authority. This Agreement and the Sale have been approved by all requisite
corporate action; Seller has full power and authority to execute, deliver and perform
this Agreement; this Agreement is a legal, valid and binding obligation of Seller and
is enforceable in accordance with its terms and conditions, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, liquidation or similar
laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.
	 
	 	(c)	 	No Conflicts. Neither the execution and delivery of this Agreement nor the
consummation by Seller of the Sale will: (i) conflict with or result in any breach of
any provision of its constitutive documents; (ii) require any consent, approval,
authorization or permit of, or registration, declaration or filing with or notification
to, any governmental authority; (iii) result in a violation or breach of, or constitute
(with or without notice or lapse of time or both) a default (or give rise to any right
of termination, cancellation or acceleration or lien or other charge or encumbrance)
under, any of the terms, conditions or provisions of any material note, license,
agreement or other instrument or obligation to which Seller or any of its assets may be
bound; or (iv) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Seller or its assets.
	 
	 	(d)	 	Ownership of Securities. Seller is the beneficial and record owner of the
Securities, free and clear of any encumbrance.
	 
	 	(e)	 	Litigation. There is no action, proceeding or investigation pending to which
Seller is a party or, to Seller’s knowledge, threatened, against Seller, which
questions the validity of this Agreement or impairs the ability of Seller to consummate
the Sale.
	 
	 	(f)	 	Fair Value. The Purchase Price represents fair value to Seller for the Securities.

4. Representations and Warranties of Purchasers. Each Purchaser, severally and not
jointly, hereby represents and warrants to Seller that:

	 	(a)	 	Purchase Entirely for Own Account. The Securities will be acquired for
investment for such Purchaser’s own account, not as a nominee or agent, and not with a
view to the resale or distribution of any part thereof. Such Purchaser has no present
intention of selling, granting any participation in, or otherwise distributing the
same. Such Purchaser does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participations to such person or to any
third person, with respect to any of the Securities.
	 
	 	(b)	 	Accredited Investor. Such Purchaser acknowledges that it/he/she is an
“accredited investor” within the meaning of Rule 501 under the Securities Act of 1933,
as amended (the “Act”) as presently in effect.

3

 

	 	(c)	 	Restricted Securities. Such Purchaser understands that the Securities
have not been sold pursuant to a registration statement under the Act, or under the
laws of any jurisdiction and that the Securities are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being acquired in a
transaction not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under the Act only in
certain limited circumstances. In this connection, such Purchaser represents that it
is familiar with Rule 144 under the Act, as presently in effect, and understands the
resale limitations imposed thereby and by the Act, including without limitation, the
Rule 144 condition that current information about the Company be made available to the
public.
	 
	 	(d)	 	Acknowledgments. Such Purchaser is aware that: (i) investment in the
Securities involves a high degree of risk, lack of liquidity and substantial
restrictions on transferability of interest, and (ii) no federal or state agency or any
other government or governmental agency has made any finding or determination as to the
fairness for investment by the public, nor any recommendation or endorsement of the
Securities.
	 
	 	(e)	 	Reliance on Exemptions. Such Purchaser understands that the Securities
are being offered and sold to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws and that
the Seller is relying in part upon the truth and accuracy of, and such Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgments and
understandings of such Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of such Purchaser to acquire the
Securities.
	 
	 	(f)	 	Validity, Enforcement. This Agreement has been duly and validly
authorized, executed and delivered on behalf of such Purchaser and shall constitute the
legal, valid and binding obligations of such Purchaser enforceable against such
Purchaser in accordance with their respective terms, except as such enforceability may
be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

5. Registration. Global agrees and acknowledges that the common stock issuable upon
conversion and exercise of the Securities shall be deemed to be Registrable Securities as defined
in the Registration Rights Agreement, dated as of March 31, 2006, pursuant to which Global agreed
to provide registration rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute, and applicable state securities laws.
Global shall promptly following the Closing make the appropriate filing with the Securities and
Exchange Commission to permit the Purchasers to sell such Registrable Securities pursuant to
Global’s effective resale registration statement.

4

 

6. Independent Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under this Agreement are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations
of any other Purchaser under this Agreement. Each Purchaser confirms that it has independently
participated in the negotiation of the transaction contemplated by this Agreement with the advice
of its own counsel and advisors, that it has independently determined to enter into the
transactions contemplated hereby, that it is not relying on any advice from or evaluation by any
other Purchaser, and that it is not acting in concert with any other Purchaser in making its
purchase of Securities hereunder or in monitoring its investment in the Company. Nothing contained
herein and no action taken by any Purchaser hereto shall be deemed to constitute the Purchasers as
a partnership, an association, a joint venture or any other kind of entity or group, or create a
presumption that the Purchasers are in any way acting in concert or as members of a “group” for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.

7. Miscellaneous.

	 	(a)	 	Time of Essence. Time is of the essence of this Agreement and of each and
every provision hereof.
	 
	 	(b)	 	Entire Agreement. This Agreement contains the entire Agreement and
understanding between the parties hereto and supersedes all prior agreements and
understandings.
	 
	 	(c)	 	Choice of Law. This Agreement and its application shall be governed by the
laws of the state of Delaware.
	 
	 	(d)	 	Counterparts. This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.
	 
	 	(e)	 	Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given on the date
of service if served personally on the party to whom notice is to be given, or on the
next business day when delivered to a recognized overnight courier service:
	 
	 	 	 	To Seller:

c/o Amaranth Advisors L.L.C.

One American Lane

Greenwich, CT 06831

Attn: General Counsel

Fax: (203) 422-3540

Telephone: (203) 422-3340

To Each Purchaser: As set forth on Schedule I.

5

 

	 	(f)	 	Binding Effect. This Agreement shall inure to and be binding upon the heirs,
executors, personal representatives, successors and assigns of each of the parties to
this Agreement.
	 
	 	(g)	 	Mutual Cooperation. The parties hereto shall cooperate with each other to
achieve the purpose of this Agreement and shall execute such other and further
documents and take such other and further actions as are legally required to effect the
transaction described herein.
	 
	 	(h)	 	Expenses. Each party shall bear its own costs and expenses in connection with
this Agreement and the transactions contemplated hereby.
	 
	 	(i)	 	Brokers and Finders. Each party hereto represents that no brokerage or
finder’s fee has been paid or is payable by such party in connection with the Sale.
	 
	 	(j)	 	Public Announcements. Seller and each Purchaser acknowledge that Global will
disclose the Sale in a filing on Form 8-K with the Securities and Exchange Commission
and may also make a press release disclosing the Sale in the form attached hereto as
Schedule II; provided, however, that in all other instances, Global will not publicly
disclose the names of Seller or any Purchaser without Seller or such Purchaser’s prior
written consent, except as required by law.

6

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SELLER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AMATIS LIMITED	 	 	 	 	 	 
	 	 	By:	 	Amaranth Advisors, L.L.C.,
Its Trading Advisor	 	 	 	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Karl J. Wachter	 	 	 	By:	 	/s/ Howard Brill	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name: Karl J. Wachter

  Title: Authorized Signatory	 	 	 	 	 	Name: Howard Brill

     Title: President and Chief Executive Officer	 	 

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

	 	By:
	 	RG Capital Management, L.P	 	 
	 
	 	 	 	 	 	 
	 

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

	 	By:	 	/s/ Gerald F. Stahlecker	 	 
	 

	 	 	 	 

Name: Gerald F. Stahlecker
	 	 
	 

	 	 	 	Title: Managing Director	 	 

	 	 	 	 	 	 	 
	 	 	WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Convertible Arbitrage Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 

Name: Jonathan Wood
	 	 
	 

	 	 	 	Title: Chief Financial Officer/Director	 	 

7

 

	 	 	 	 	 	 	 
	 	 	GUGGENHEIM PORTFOLIO XXXI, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Guggenheim Advisors, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 

Name: Jonathan Wood
	 	 
	 

	 	 	 	Title:  Chief Financial Officer	 	 

	 	 	 	 	 	 	 
	 	 	PANDORA SELECT PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Pandora Select Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 

 Name: Jonathan Wood
	 	 
	 

	 	 	 	Title:  Chief Financial Officer/Director	 	 

	 	 	 	 	 	 	 
	 	 	WHITEBOX INTERMARKET PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Intermarket Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Whitebox Advisors LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Wood	 	 
	 

	 	 	 	 

Name: Jonathan Wood
	 	 
	 

	 	 	 	Title:  Chief Financial Officer/Director	 	 

8

 

	 	 	 	 	 	 	 
	 	 	CONTEXT ADVANTAGE FUND, LP

f/k/a Context Convertible Arbitrage Fund, L.P.

By: Context Capital Management LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen	 	 
	 

	 	 	 	 

Name: Michael S. Rosen
	 	 
	 

	 	 	 	Title: Managing Member	 	 

	 	 	 	 	 	 	 
	 	 	CONTEXT OFFSHORE ADVANTAGE FUND, LTD.

f/k/a Context Convertible Arbitrage Offshore, Ltd.

By: Context Capital Management LLC, its Investment Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen	 	 
	 

	 	 	 	 

Name: Michael S. Rosen
	 	 
	 

	 	 	 	Title: Managing Member	 	 

	 	 	 	 	 	 	 
	 	 	CONTEXT OPPORTUNISTIC MASTER FUND, L.P.

By: Context Capital Management LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael S. Rosen	 	 
	 

	 	 	 	 

Name: Michael S. Rosen
	 	 
	 

	 	 	 	Title: Managing Partner	 	 

9

 

	 	 	 	 	 	 	 
	 	 	GLOBAL EMPLOYMENT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Howard Brill
 

Name: Howard Brill
	 	 
	 

	 	 	 	Title: President and Chief Executive Officer	 	 

	 	 	 	 	 	 	 
	 	 	CAPITAL RESOURCES GROWTH, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Charles Gwirtsman	 	 
	 

	 	 	 	 

Name: Charles Gwirtsman
	 	 
	 

	 	 	 	Title: President	 	 

	 	 	 	 	 	 	 
	 	 	/s/ Howard Brill	 	 
	 	 	 	 	 
	 	 	Howard Brill	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kenneth Michaels	 	 
	 	 	 	 	 
	 	 	Kenneth Michaels	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Steven Pennington	 	 
	 	 	 	 	 
	 	 	Steven Pennington	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Michael Lazrus	 	 
	 	 	 	 	 
	 	 	Michael Lazrus	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Terry Koch	 	 
	 	 	 	 	 
	 	 	Terry Koch	 	 

10

 

	 	 	 	 	 	 	 
	 	 	/s/ Fred Viarrial	 	 
	 	 	 	 	 
	 	 	Fred Viarrial	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Daniel Hollenbach	 	 
	 	 	 	 	 
	 	 	Daniel Hollenbach	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Gregory Bacharach	 	 
	 	 	 	 	 
	 	 	Gregory Bacharach	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Steven List	 	 
	 	 	 	 	 
	 	 	Steven List	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Richard Goldman	 	 
	 	 	 	 	 
	 	 	Richard Goldman	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Luci Altman	 	 
	 	 	 	 	 
	 	 	Luci Altman	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Jay Wells	 	 
	 	 	 	 	 
	 	 	Jay Wells	 	 

11

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 
	 	 	Address and	 	Principal Amount	 	Number of	 	 
	Purchaser	 	Facsimile Number	 	of Notes	 	Warrants	 	Purchase Price
	 
	Radcliffe SPC, Ltd.

for and on behalf of Class A
Convertible Crossover Segregated
Portfolio

	 	c/o RG Capital Management, L.P.

3 Bala Plaza — East, Suite 501

Bala Cynwyd, PA 19004

Attention: Gerald Stahlecker

Facsimile: (610) 617-5900

Telephone: (610) 617-0570
	 	$	3,210,000.00	 	 	 	51,360	 	 	$	2,792,700.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Whitebox Convertible Arbitrage
Partners, LP

	 	3033 Excelsior Blvd., #300
Minneapolis, MN 55416

Telephone: (612) 253-6028
	 	$	2,681,000.00	 	 	 	42,896	 	 	$	2,332,470.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Guggenheim Portfolio XXXI, LLC

	 	3033 Excelsior Blvd., #300
Minneapolis, MN 55416

Telephone: (612) 253-6028
	 	$	192,000.00	 	 	 	3,072	 	 	$	167,040.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pandora Select Partners, LP

	 	3033 Excelsior Blvd., #300
Minneapolis, MN 55416

Telephone: (612) 253-6028
	 	$	415,000.00	 	 	 	6,640	 	 	$	361,050.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Whitebox Intermarket Partners, LP

	 	3033 Excelsior Blvd., #300
Minneapolis, MN 55416

Telephone: (612) 253-6028
	 	$	415,000.00	 	 	 	6,640	 	 	$	361,050.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Context Advantage Fund, LP

f/k/a Context Convertible
Arbitrage Fund, L.P.
	 	12626 High Bluff Drive, Ste 440

San Diego, CA 92130

Telephone: (858) 481-3666
	 	$	530,000.00	 	 	 	8,480	 	 	$	461,100.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Context Offshore Advantage Fund,
Ltd.

f/k/a Context Convertible
Arbitrage Offshore, Ltd.

	 	12626 High Bluff Drive, Ste 440

San Diego, CA 92130

Telephone: (858) 481-3666
	 	$	2,038,000.00	 	 	 	32,608	 	 	$	1,773,060.00	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 
	 	 	Address and	 	Principal Amount	 	Number of	 	 
	Purchaser	 	Facsimile Number	 	of Notes	 	Warrants	 	Purchase Price
	 
	Context Opportunistic Master
Fund, L.P.

	 	12626 High Bluff Drive, Ste 440

San Diego, CA 92130

Telephone: (858) 481-3666
	 	$	642,000.00	 	 	 	10,272	 	 	$	558,540.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Global Employment Holdings, Inc.

	 	10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	5,744,000.00	 	 	 	91,904	 	 	$	4,997,280.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capital Resources Growth, Inc.

	 	1515 Arapahoe St, Tower 1
Suite 1500

Denver CO 80202

Fax: (303) 390-5015
	 	$	115,000.00	 	 	 	1,840	 	 	$	100,050.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Howard Brill

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	1,150,000.00	 	 	 	18,400	 	 	$	1,000,500.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kenneth Michaels

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	575,000.00	 	 	 	9,200	 	 	$	500,250.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Steven Pennington

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	11,500.00	 	 	 	184	 	 	$	10,005.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Michael Lazrus

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	23,000.00	 	 	 	368	 	 	$	20,010.00	 

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 
	 	 	Address and	 	Principal Amount	 	Number of	 	 
	Purchaser	 	Facsimile Number	 	of Notes	 	Warrants	 	Purchase Price
	 
	Terry Koch

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	34,500.00	 	 	 	552	 	 	$	30,015.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fred Viarrial

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	29,000.00	 	 	 	464	 	 	$	25,230.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Daniel Hollenbach

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	29,000.00	 	 	 	464	 	 	$	25,230.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gregory Bacharach

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	58,000.00	 	 	 	928	 	 	$	50,460.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Steven List

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	150,000.00	 	 	 	2,400	 	 	$	130,500.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Richard Goldman

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	58,000.00	 	 	 	928	 	 	$	50,460.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Luci Altman

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	58,000.00	 	 	 	928	 	 	$	50,460.00	 

3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 
	 	 	Address and	 	Principal Amount	 	Number of	 	 
	Purchaser	 	Facsimile Number	 	of Notes	 	Warrants	 	Purchase Price
	 
	Jay Wells

	 	Global Employment Solutions, Inc. 

10375 Park Meadows Dr., Suite 375

Lone Tree, CO 80124

Fax: (303) 216-9533
	 	$	12,000.00	 	 	 	192	 	 	$	10,440.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	     TOTAL
	 	$	18,170,000.00	 	 	 	290,720	 	 	$	15,807,900.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

4

 

SCHEDULE II

Global Employment Holdings Refinances $5,744,000 of Convertible Debt

LONE TREE, CO, September 30, 2006

Global Employment Holdings, Inc. (GEYH:OB) announced today that it has purchased $5,744,000
principal amount of its convertible secured notes, along with warrants to purchase 91,904 shares of
Global common stock, from a fund controlled by an institutional investor. The purchase price was
87% of principal amount. The notes and warrants purchased by Global will be retired. In addition,
13 of Global’s directors and officers purchased, at the same price, an additional $2,303,000
principal amount of the notes, together with warrants to purchase 36,848 shares. The same
institutional investor sold $10,123,000 principal amount (together with the 161,968 warrants
purchased with the notes) to existing investors in Global’s convertible notes at the same purchase
price of 87% of principal amount. The convertible notes were issued on March 31, 2006.

Global financed the purchase with borrowings under its existing credit facility with Wells Fargo
Business Credit.

“We are pleased to have been able to reduce our overall debt level by almost $750,000 just six
months following our recapitalization on March 31.” said Howard Brill, Global’s chief executive
officer. Charles Gwirtsman, Global’s board chairman, said “we are gratified by the faith so many
of our senior managers and directors, as well as our other note holders, showed in Global by
purchasing convertible notes.”

Global Employment Holdings is the parent of Global Employment Solutions, Inc., which provides
temporary placement, permanent placement and PEO services to its clients. Global currently has
offices across the United States including Chicago, Atlanta, Tampa, Philadelphia and New York.

Global Employment Solutions’ corporate office is located at 10375 Park Meadows Dr., Suite 375 Lone
Tree, Colorado 80124. Phone: 303-216-9500; FAX: 303-216-9533.

This press release may include “forward looking statements” as defined by the Securities and
Exchange Commission (the “SEC”). Forward-looking statements include all statements that do not
relate solely to historical or current facts. These forward-looking statements are based on the
current plans and expectations of our management and are subject to certain risks and uncertainties
that could cause actual results to differ materially from historical results or those anticipated.
These factors include, but are not limited to: economic conditions affecting the human capital
solutions industry; the adverse effect of legislation and other matters affecting the industry;
increased competition in the industry; our dependence on certain customers; the risk that we may
not be able to retain and attract customers; the availability of and costs associated with
potential sources of financing; the loss of key personnel; our inability to attract and retain new
qualified personnel; difficulties associated with integrating acquired businesses and customers
into our operations; material deviations from expected future workers’ compensation claims
experience; collectibility of accounts receivable; the carrying values of deferred income tax
assets and goodwill, which may be affected by future operating results; the availability of capital
or letters of credit necessary to meet state-mandated surety deposit requirements; and government
regulation.

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