EXHIBIT 10.1
WAIVER, CONSENT AND NINTH AMENDMENT TO CREDIT
AGREEMENT
This Waiver, Consent and Ninth Amendment to
Credit Agreement (this "Amendment") is dated as of February 1,
2007, and is by and among General Electric Capital Corporation, a
Delaware corporation, individually as a Lender and as Agent and
Security Trustee for the Lenders, and Analysts International
Corporation, a Minnesota corporation ("Borrower").
W I T N E S S E T H
:
WHEREAS, pursuant to a certain Credit Agreement
dated as of April 11, 2002, by and among General Electric Capital
Corporation, a Delaware corporation, individually as a Lender and
as Agent and Security Trustee for the Lenders, the other Credit
Parties signatory from time to time thereto, and Borrower (as
amended or otherwise modified from time to time, the "Credit
Agreement"; capitalized terms used herein and not otherwise defined
herein shall have the meaning ascribed to such terms in the Credit
Agreement), Agent and Lenders agreed, subject to the terms and
provisions thereof, to provide certain loans and other financial
accommodations to Borrower;
WHEREAS, Borrower has notified Agent and Lenders
that Borrower has provided intercompany advances to Medical
Staffing (as hereinafter defined) in a net amount outstanding as of
the date hereof equal to approximately $1,400,000 (collectively,
the "Medical Staffing Affiliate Transactions"), which Medical
Staffing Affiliate Transactions constituted Defaults under Sections
6.3(a)(vii)(x) and 6.4 of the Credit Agreement and separate Events
of Default under Section 8.1(b) of the Credit Agreement
(collectively, the "Existing Events of Default");
WHEREAS, Borrower desires to provide for working
capital purposes intercompany advances to AISSS (as hereinafter
defined) on or prior to May 1, 2007 in an amount not to exceed
$200,000 in the aggregate (the "AISSS Funding") and intercompany
advances to Medical Staffing on or prior to May 1, 2007 in an
amount not to exceed $200,000 in the aggregate (the "Medical
Staffing Funding"), which AISSS Funding and Medical Staffing
Funding, in absence of the prior written consent of Agent and
Requisite Lenders, would be defaults under Sections 6.3(a)(vii)(x)
and 6.4 of the Credit Agreement and an Event of Default under
Section 8.1(b) of the Credit Agreement;
WHEREAS, Borrower desires to transfer to AISSS
certain contracts it has entered into with customers as part of the
managed services group business (the "Contract Transfers"), which
Contract Transfers, in absence of the prior written consent of
Agent and Required Lenders, would be defaults under Sections 6.4
and 6.8 of the Credit Agreement and an Event of Default under
Section 8.1(b) of the Credit Agreement; and
WHEREAS, Borrower has requested that Agent and
Requisite Lenders waive the Existing Events of Default, consent to
the AISSS Funding, the Medical Staffing Funding and the Contract
Transfers, and amend the Credit Agreement in certain respects, as
set forth below.
NOW, THEREFORE, in consideration of the premises
and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1.
Waiver and Consent
. In reliance upon the
representations and warranties of Borrower set forth in Section 4
below and the covenant of Borrower set forth in Section 5 below,
and subject to the conditions to effectiveness set forth in Section
3 below, Agent and Requisite Lenders hereby (a) waive the Existing
Events of Default and (b) consent to the AISSS Funding, the Medical
Staffing Funding and the Contract Transfers. This is a limited
waiver and consent and shall not be deemed to constitute a waiver
of, or consent to, any other future breach of the Credit
Agreement.
2.
Amendment . In reliance upon the representations and
warranties of Borrower set forth in Section 4 below and the
covenant of Borrower set forth in Section 5 below, and subject to
the conditions to effectiveness set forth in Section 3 below, the
Credit Agreement is hereby amended as follows:
(a)
Section 6.20
of the Credit Agreement is hereby
amended and restated in its entirety, as follows:
6.20
Credit Parties Other than
Borrower .
None of the Credit Parties other than Borrower
shall engage in any trade or business, or own any assets (other
than Stock of their Subsidiaries) or incur any Indebtedness or
Guaranteed Indebtedness (other than the Obligations),
provided that (a) Medical Staffing shall be
permitted to engage in its relevant business and own assets, (b)
the Staffing Subsidiaries (other than Analysts International
Strategic Sourcing Services, LLC, a Minnesota limited liability
company) shall be permitted to employ personnel to be leased back
to the Borrower under those certain Employee Services Agreements by
and between Borrower and each Staffing Subsidiary (the "Employee
Services Agreements") and (c) Analysts International Strategic
Sourcing Services, LLC, a Minnesota limited liability company,
shall be permitted to (i) employ personnel to be leased back to the
Borrower under the Employee Services Agreements, (ii) engage in the
managed services group business and (iii) own assets in connection
with the managed services group business not to exceed $4,000,000
at any time outstanding.
(b)
Disclosure Schedule
(5.1) of the Credit
Agreemen
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