Exhibit 10.1
EXECUTION COPY
AMENDMENT NO. 8 TO
REVOLVING CREDIT AND SECURITY
AGREEMENT
among
UNIFORCE SERVICES,
INC.,
BRENTWOOD SERVICE GROUP,
INC.,
CLINICAL LABFORCE OF AMERICA,
INC.,
COMFORCE INFORMATION
TECHNOLOGIES, INC.,
COMFORCE TECHNICAL,
LLC,
COMFORCE TECHNICAL SERVICES,
INC.,
COMFORCE TELECOM,
INC.,
CTS OF WASHINGTON,
LLC,
PRO CLINICAL SUPPORT SERVICES,
LLC,
PRO UNLIMITED GLOBAL, LTD
(UK),
PRO UNLIMITED GLOBAL (HK)
LIMITED,
PRO UNLIMITED GLOBAL JAPAN,
LTD
a/k/a PRO UNLIMITED GLOBAL JAPAN,
YK,
PRO UNLIMITED,
INC.,
PRO UNLIMITED MPS,
INC.,
TEMPORARY HELP INDUSTRY SERVICING
COMPANY, INC.,
UNIFORCE STAFFING SERVICES,
INC.,
SUMTEC
CORPORATION,
THISCO OF CANADA,
INC.,
CTS GLOBAL, INC.
(as Borrowers)
and
COMFORCE OPERATING,
INC.
(as Borrowing Agent)
and
COMFORCE
CORPORATION
(as Guarantor)
and
PNC BANK, NATIONAL
ASSOCIATION
(as Administrative Agent and
Lender)
and
THE OTHER LENDERS PARTY
HERETO
as of June 6, 2008
AMENDMENT NO. 8 TO CREDIT
AGREEMENT
This Amendment No. 8 to Credit Agreement (this
“ Amendment ”) is executed and delivered by the
undersigned as of June 6, 2008. Reference is hereby made
to the Revolving Credit and Security Agreement, dated as of June
25, 2003, as amended, among COMFORCE Operating, Inc. (“
COI ”), as Borrowing Agent (in such capacity, “
Borrowing Agent ”), the Borrowers named therein,
COMFORCE Corporation, a Delaware corporation, as guarantor, GE
Business Financial Services Inc. and JPMorgan Chase Bank, N.A., as
Co-Syndication Agents for the Lenders and as Lenders, Webster
Business Credit Corporation, as Documentation Agent for the Lenders
and as Lender, the other financial institutions which hereafter
become a party thereto (the “ Lenders ”), and
PNC Bank, National Association, as Administrative Agent for the
Lenders (in such capacity, “ Administrative Agent
”) and as Lender (as the same may be from time to time
further amended, extended, restated, supplemented or otherwise
modified, the “ Credit Agreement
”). Capitalized terms used, but not defined
herein, shall have the meanings ascribed to them in the Credit
Agreement.
WHEREAS, COI desires to repurchase the Senior
12% Notes;
WHEREAS, the Borrowers have requested that the
Lenders amend the Credit Agreement as set forth below to facilitate
the payment of the Senior 12% Notes.
NOW THEREFORE, in consideration of the foregoing
and for other consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:
A. Section 7.19 of
the Credit Agreement is hereby amended and restated in its entirety
as follows:
“7.19
Senior 12% Notes; Subordinated Notes . At any
time, directly or indirectly, prepay, repurchase, redeem, retire or
otherwise acquire, or make any payment on account of any principal
of, interest on or premium payable in connection with the repayment
or redemption of the Senior 12% Notes or Subordinated Notes;
provided that, notwithstanding the foregoing, (a) COI may
repurchase or prepay any portion of the Senior 12% Notes if (i)
immediately before and after giving effect to such repurchase or
prepayment (and all fees, penalties, costs and expenses incurred in
connection therewith), no Default or Event of Default shall exist
hereunder, and (ii) during the period beginning twenty (20)
Business Days prior to any such repurchase or prepayment and ending
ten (10) Business Days after giving effect to such repurchase or
prepayment, Borrowers shall have an average Undrawn Availability
throughout such period of not less than $2,500,000, provided
, however, that such amount shall increase by $1,000,000 each month
commencing on the first day of the month after the month in which
COI repurchases or prepays any Senior 12% Notes or Subordinated
Notes until such amount reaches $7,500,000, and (b) provided there
are no available options to pay in kind, COI and Holdings may make
regularly scheduled interest payments in cash then due under and
pursuant to the Senior 12% Notes and the Subordinated Notes as in
effect on the date hereof, respectively, if no Default or Event of
Default shall have occurred and be continuing immediately before
any such payment or after
giving effect
to any such payment, and (c) the aggregate amount of all such
prepayments and repurchases permitted by clause (a) of this Section
7.19 shall not exceed $15,000,000 (the “Redemption
Allowance”) in any calendar year; provided, however, that to
the extent any portion of the Redemption Allowance for any such
calendar year is not expended to prepay or repurchase the Senior
12% Notes in such calendar year, then COI may apply all of such
unused portion towards the prepayment or repurchase of the Senior
12% Notes pursuant to clause (a) of this Section 7.19(a) in any
succeeding calendar year to the extent such prepayment or
repurchase is otherwise permitted under clause (a) of this Section
7.19(a).”
B. Section 10.23 of
the Credit Agreement is hereby amended and restated in its entirety
as follows:
“10.23 Undrawn
Availability shall (a) at any time be less than $2,500,000,
provided, however, such amount shall increase by $500,000 each
month commencing the first day of the month after the month in
which COI repurchases or prepays any Senior 12% Notes or
Subordinated Notes until such amount reaches $5,000,000, or (b) at
any time within ten (10) Business Days after the consummation of
any Permitted Acquisition, be less than $10,000,000;
provided that no more than once per calendar year if Undrawn
Availability shall fall below the minimum amount required by clause
(a) above, no Event of Default shall exist solely by virtue thereof
if within seven (7) days of the date that Undrawn Availability fell
below the minimum amount required by clause (a), Undrawn
Availability shall increase to such minimum amount