The Staffing Group, Ltd. (OTCBB: TSGL) entered into a licensing agreement with industrial staffing provider Labor Smart (OTCQB: LTNC) that allows The Staffing Group to utilize the Labor SMART brand in all future openings. 

The firm also appointed Labor SMART COO Kimberly Thompson to its board of directors, effective Dec. 23.

According to a filing with the US Securities and Exchange Commission, the licensing agreement grants The Staffing Group exclusive license to use Labor Smart’s trademarked name in connection with general advertising materials, point of sale displays and other promotional materials. As consideration for the use of the trademarked name, The Staffing Group agreed to pay to Labor Smart a one-time fee of $5,000 for each newly opened branch location that is opened under the name of Labor Smart Inc.

Additionally, The Staffing Group on Dec. 18 entered into a Securities Purchase Agreement with Labor Smart for the purchase and sale of 12% convertible promissory notes in the aggregate principal amount of $80,000. The Staffing Group also agreed that, for so long as the convertible note is outstanding, Labor SMART shall have the ability to nominate one member its board of directors. The Staffing Group also agreed to issue Labor Smart one share of its Series A preferred stock.

The Staffing Group provides temporary staffing to construction, light industrial, refuse, ship repair and stevedoring companies.