Exhibit 10.8.20.10
Execution Copy
TENTH AMENDMENT
TO
MULTICURRENCY CREDIT AGREEMENT,
LIMITED WAIVER
AND CONSENT OF
GUARANTORS
This TENTH AMENDMENT TO
MULTICURRENCY CREDIT AGREEMENT, LIMITED WAIVER AND CONSENT OF
GUARANTORS (this “ Amendment ”) is dated as
of Jan. 2, 2007, and entered into by and among WESTAFF,
INC. , a Delaware corporation (“ Parent ”),
WESTAFF (USA), INC., a California corporation (“ US
Borrower ”), WESTAFF (U.K.) LIMITED, a limited
liability company incorporated under the laws of England and Wales
(“ UK Borrower ”) WESTAFF SUPPORT, INC. ,
a California corporation (“ Term Borrower ”, and
together with US Borrower and UK Borrower, the “
Borrowers ”), the financial institutions signatory
hereto that are parties as Lenders to the Credit Agreement referred
to below (the “ Lenders ”), and GENERAL
ELECTRIC CAPITAL CORPORATION , as agent for the US Revolving
Lenders, the Term Lenders and the UK Revolving Lenders (as defined
in the Credit Agreement referred to below).
Recitals
Whereas
, the Parent, the Borrowers, the Lenders and
Agents have entered into that certain Multicurrency Credit
Agreement dated as of May 17, 2002 (as amended by that certain
First Amendment to Multicurrency Credit Agreement, Limited Waivers
and Consent of Guarantors, dated as of October 31, 2002, as further
amended by that certain Second Amendment to Multicurrency Credit
Agreement, Limited Waivers and Consent of Guarantors, dated as of
June 13, 2003, that certain Third Amendment to Multicurrency Credit
Agreement, Limited Waivers and Consent of Guarantors, dated as of
September 25, 2003, that certain Fourth Amendment to Multicurrency
Credit Agreement, Limited Waivers and Consent of Guarantors, dated
as of February 20, 2004, that certain Fifth Amendment to
Multicurrency Credit Agreement and Consent of Guarantors, dated as
of July 31, 2004, that certain Sixth Amendment to Multicurrency
Credit Agreement and Consent of Guarantors, dated as of January 5,
2004, that certain Seventh Amendment to Multicurrency Credit
Agreement, Limited Waiver and Consent of Guarantors, dated as of
August 19, 2005, that certain Eighth Amendment to Multicurrency
Credit Agreement, Limited Waiver and Consent of Guarantors dated as
of March 1, 2006, and that certain Ninth Amendment To Multicurrency
Credit Agreement And Consent Of Guarantors. dated as of July 25,
2006, and as further modified by certain consents and waivers of
the Lenders prior to the date hereof (the “ Credit
Agreement ”; capitalized terms used in this Amendment
without definition shall have the meanings given such terms in the
Credit Agreement); and
Whereas
, the Borrowers have requested that
the Lenders agree to waive a certain Event of Default and amend
certain provisions of the Credit Agreement, including extending the
Commitment Termination Date by one year; and
Whereas
, the Lenders are willing to waive
the Event of Default described herein and to consent to the
amendments to the Credit Agreement on the terms and conditions set
forth in this Amendment.
Now, therefore,
in consideration of the premises and
the mutual agreements set forth herein, the Parent, the Borrowers,
the Lenders, and Agents agree as follows:
1.
AMENDMENTS TO CREDIT
AGREEMENT . Subject to the
conditions and upon the terms set forth in this Amendment, the
Credit Agreement is hereby amended as follows:
1.1
Amendment to Section 1.5 (a) of the Credit Agreement.
The Level I
pricing grid set forth in Section 1.5 (a) of the Credit
Agreement is hereby amended to read as follows (the remainder of
such pricing grid to remain as set forth in such Section
1.5(a) ):
Applicable Margins
Level I
|
Applicable Revolver Index
Margin
|
|
0.00
|
%
|
|
Applicable Revolver LIBOR
Margin
|
|
1.75
|
%
|
|
Applicable L/C Margin
|
|
1.25
|
%
|
1.2
Amendment to Section 1.8(c) of the Credit Agreement.
Section
1.8(c) of the Credit Agreement is hereby amended by deleting
the words “fifth anniversary” in clause (z) of
the definition of Applicable Percentage and replacing them with the
words “sixth anniversary”.
1.3
Amendments to Annex A
(Definitions) to the Credit Agreement.
(a)
The definition of “ Authorized Officer ” is
hereby deleted in its entirety and replaced with the
following:
“
Authorized Officer
” of (i)
US Borrower means John P. Sanders, Patricia M. Newman, Bonnie
McDonald, or Richard Sugerman and (ii) UK Borrower means David
Mogford or Patricia M. Newman; and in case, any other officer
designated to the Applicable Agent in writing from time to time as
an Authorized Office by the Applicable Borrower.
(b)
The definition of “ Commitment Termination Date
” is hereby amended by changing the reference in clause
(a) thereof from “May 17, 2008” to “May 17,
2009”.
2
1.4
Amendment to Annex F to the
Credit Agreement. Annex F to the
Credit Agreement is hereby amended by deleting clauses (i) and (ii)
in paragraph (b) in their entirety and replacing them with the
following:
“(i) US
Borrower shall have Borrowing Availability of not less than
$5,000,000, (ii) US Borrower and UK Borrower shall have a combined
Borrowing Availability of not less than $8,000,000,
and”
1.5
Amendments to Annex G to the
Credit Agreement. Annex G to the
Credit Agreement is hereby amended by (a) deleting the last
sentence of paragraph (b) thereof in its entirety and
replacing it with the following:
“For each
Fiscal Quarter ending after October 30, 2004 and on or before
October 30, 2006, Parent and its Subsidiaries shall have on a
consolidated basis a Fixed Charge Coverage Ratio of not less than
1.25:1.00, measured on a 13 Fiscal Periods then ended basis.
For each Fiscal Period ending after October 30, 2006, Parent and
its Subsidiaries shall have on a consolidated basis a Fixed Charge
Coverage Ratio of not less than 1.25:1.00 measured on a 13 Fiscal
Periods then ended basis; provided , however ,
if as of the end of any Fiscal Period the US Borrower has a
Borrowing Availability of not less than $7,500,000, the Fixed
Charge Coverage Ratio shall not be tested for that Fiscal
Period.”
and (b) deleting
paragraph (c)(ii) thereof (including the matrix therein) in
its entirety and replacing it with the following:
“(ii)
at the end of each Fiscal Quarter set forth below, EBITDA for the
13 Fiscal Periods then ended of not less than the amount set forth
below for such period:
|
FISCAL QUARTER
ENDING
|
|
MINIMUM EBITDA
|
|
|
1/21/2006
|
|
$
|
10,500,000
|
|
|
|
|
|
|
|
4/15/2006
|
|
$
|
10,500,000
|
|
|
|
|
|
|
|
7/8/2006
|
|
$
|
10,500,000
|
|
|
|
|
|
|
|
10/28/2006
|
|
$
|
13,000,000
|
|
|
|
|
|
|
|
1/20/2007
|
|
$
|
10,000,000
|
|
|
|
|
|
|
|
4/14/2007
|
|
$
|
12,000,000
|
|
|
|
|
|
|
|
7/7/2007 and for each Fiscal Quarter
ended thereafter
|
|
$
|
13,000,000
|
|
3
1.6
Amendment to Annex I of the
Credit Agreement. Annex I
to the Credit Agreement is hereby amended by deleting the address
for either Agent or GE Capital in Pleasanton, California set forth
therein and replacing it with the following:
General Electric Capital
Corporation
100 California Street, 10
th Floor
San Francisco, California
94111
Attention: Westaff Account
Manager
Telecopier:
513-794-8596
Telephone:
415-277-7432
2.
LIMITED WAIVER. Subject to the satisfaction of the
conditions set forth herein, the Lenders hereby agree that,
notwithstanding the requirements of paragraph (c)(ii) of
Annex G (Financial Covenants) to the Credit Agreement, the
Lenders hereby waive the Event of Default that arose from the
failure of Parent and its Subsidiaries to have on a consolidated
basis a minimum EBITDA for the 13 Fiscal Periods ending on
October 28, 2006 of not less than $13,000,000, provided that
the minimum EBITDA for such Fiscal Quarter, measured on a 13 Fiscal
Periods then ended basis, may not be less than $10,400,000.
This waiver shall be limited precisely as written, shall apply
solely with respect to the failure of Parent and its Subsidiaries
to have on a consolidated basis a minimum EBITDA of not less than
$13,000,000, measured on a 13 Fiscal Periods then ended basis, for
the Fiscal Quarter ending October 28, 2006, as required
pursuant to paragraph (c)(ii) of Annex G (Financial Covenants) to
the Credit Agreement, and nothing contained in this Amendment shall
be deemed to constitute a waiver of any other Default or Event of
Default or provision of the Cr