EXHIBIT 10.2

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as
of October 27, 2004 by and among COMSYS SERVICES LLC, a Delaware limited
liability company (“COMSYS Services”), VENTURI TECHNOLOGY PARTNERS, LLC, a North
Carolina limited liability company (“VTP”), COMSYS INFORMATION TECHNOLOGY
SERVICES, INC., a Delaware corporation (“COMSYS IT”; COMSYS Services, VTP and
COMSYS IT are referred to herein each individually as a “Borrower” and
collectively as the “Borrowers”), COMSYS IT PARTNERS, INC., a Delaware
corporation (“Holdings”), PFI CORP., a Delaware corporation (“PFI Holdings”),
COMSYS HOLDING, INC., a Delaware corporation (“COMSYS Holdings”), COMSYS
Services, acting in its capacity as borrowing agent and funds administrator for
the Borrowers (in such capacity, the “Funds Administrator”), the financial
institutions parties hereto (each, a “Lender”), and MERRILL LYNCH CAPITAL, a
division of Merrill Lynch Business Financial Services Inc., as administrative
agent (the “Agent”), Sole Bookrunner and Sole Lead Arranger and as a Lender.

 

W I T N E S S E T H:

 

WHEREAS, the Borrowers, Holdings, PFI Holdings, COMSYS Holdings, the Agent, ING
Capital LLC, as Documentation Agent and as a Lender, GMAC Commercial Finance
LLC, as Syndication Agent and as a Lender and the other Lenders have entered
into that certain Credit Agreement dated as of September 30, 2004 (as the same
hereafter may be amended, modified, restated or otherwise supplemented from time
to time, the “Credit Agreement”); and

 

WHEREAS, the parties to the Credit Agreement desire to amend the Credit
Agreement on the terms and subject to the conditions set forth herein;

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and
covenants contained herein, the parties agree as follows:

 

1. Defined Terms. Capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Credit Agreement.

 

2. Amendments.

 

2.1 Section 1.1 of the Credit Agreement is hereby amended by deleting the
definition of “Borrowing Base” set forth therein and substituting the following
definition therefor:

 

“Borrowing Base” means, as of any date of calculation, a dollar amount
calculated pursuant to the Borrowing Base Certificate most recently delivered to
Agent in accordance with the terms hereof, equal to the sum of eighty-five
percent (85%) (subject to adjustment as provided below) of Eligible Billed
Accounts plus eighty-five percent (85%) (subject to adjustment as provided
below) of Eligible Unbilled Accounts and minus (i) from the period commencing on
the Closing Date through and including delivery of the Borrowing Base
Certificate required pursuant to Section 4.1(m)(i) for the fiscal month ending
closest to June 30, 2005, the Restructuring Reserve and (ii) any other Reserves
then established by Agent. Agent may, from time to time, in the exercise of its
Permitted Discretion reduce or increase any percentage amount set forth in the
immediately preceding

--------------------------------------------------------------------------------

sentence (any such increase not to exceed the percentages established on the
Closing Date). Agent shall provide the Funds Administrator with prior written
notification of any change in the percentage amount pursuant to the preceding
sentence together with a reasonably detailed description of the reason for such
change.

 

2.2 Section 4.1(m). Section 4.1(m) of the Credit Agreement is hereby deleted in
its entirety and the following is substituted in lieu thereof:

 

“(m) (i) as soon as available and in any event within fifteen (15) Business Days
after the end of each calendar month through and including December, 2004 and
within ten (10) Business Days after the end of each fiscal month ending
thereafter, and from time to time upon the request of Agent (which request may
be made as frequently as daily), a Borrowing Base Certificate as of the last day
of the month most recently ended (or, in the case of Borrowing Base Certificates
requested more frequently than monthly, as of the second preceding Business Day)
and (ii) during the period commencing on the Closing Date through and including
the date of delivery of the Borrowing Base Certificate required pursuant to
clause (i) of this Section 4.1(m) for the fiscal month ending closest to June
30, 2005, within fifteen (15) calendar days after the delivery of each Borrowing
Base Certificate referred to in clause (i) of this Section 4.1(m), an update of
the most recent Borrowing Base Certificate previously delivered pursuant to
clause (i) of this Section 4.1(m) updated solely to reflect any expenditures
since the delivery of the most recently delivered Restructuring Reserve
Certificate in respect of the Restructuring and the corresponding decrease in
the Restructuring Reserve as of the end of the fiscal month most recently
ended;”

 

2.3 Section 4.1(o). Section 4.1(o) of the Credit Agreement is hereby deleted in
its entirety and the following is substituted in lieu thereof:

 

“(o) together with each delivery of the Borrowing Base Certificates pursuant to
Section 4.1(m)(i) and Section 4.1(m)(ii), during the period commencing on the
Closing Date through and including the delivery of the Borrowing Base
Certificate for the fiscal month ending closest to June 30, 2005, a
Restructuring Reserve Certificate;”

 

2.4 Section 4.1(p). Section 4.1(p) of the Credit Agreement is hereby deleted in
its entirety and the following is substituted in lieu thereof:

 

“(p) as soon as available and in any event within fifteen (15) Business Days
after the end of each fiscal month through and including December, 2004 and
within ten (10) Business Days after the end of each fiscal month ending
thereafter, on a monthly basis or more frequently as Agent may reasonably
request, (i) agings of Accounts, (ii) unbilled revenue from the general ledger,
(iii) vworx unbilled accounts, (iv) fixed price contracts report, (v) accrued
rebates report, (vi) schedules of contra-accounts, (vii) schedules of deferred
revenue, (viii) schedule of unapplied debits and credits, (ix) federal
government receivables report, (x) schedule of unapplied cash, (xi) schedule of
eliminating entries, (xii) schedule of

 

2

--------------------------------------------------------------------------------

foreign accounts, (xiii) schedule of customer refunds, (xiv) schedule of
discount reserves, (xv) schedule of accounts payable and (xvi) a reconciliation
report in the form set forth in Exhibit F, with respect to the Borrowing Base
Certificate most recently delivered to Agent pursuant to Section 4.1(m)(i), the
financial statements of the Credit Parties delivered to Agent, the Borrowers’
general ledger and/or the reports required pursuant to this paragraph, each in
form and substance, and with such supporting detail and documentation, as may be
reasonably requested by Agent;”

 

2.5 Section 7.4. Section 7.4 of the Credit Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

 

“Section 7.4 Minimum Revolving Loan Borrowing Availability.

 

The Credit Parties will not at any time permit Net Borrowing Availability to be
less than $5,000,000. For purposes of this Section 7.4, Net Borrowing
Availability as of any date of calculation shall be calculated by reference to
the Borrowing Base Certificate most recently delivered to Agent in accordance
with the terms of this Agreement, with such adjustments as are appropriate (i)
to accurately reflect outstanding Loan amounts as of any such date of
calculation, (ii) for so long as the Restructuring Reserve is in effect, to
accurately reflect any expenditures in respect of the Restructuring not
reflected in such Borrowing Base Certificate and (iii) to accurately reflect any
other credit exposure as of such date of calculation, as determined by the
Agent. In the event the Borrowers shall at any time fail to deliver to Agent a
Borrowing Base Certificate within the time period required under this Agreement,
Agent shall calculate Net Borrowing Availability by reference to the most
recently delivered Borrowing Base Certificate, with such adjustments to the
values of Eligible Billed Accounts and Eligible Unbilled Accounts as Agent deems
appropriate in the exercise of its reasonable credit judgment.”

 

2.6 Section 12.5(a). Clause (a) of Section 12.5 of the Credit Agreement is
hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“(a) unless signed by all the Lenders: (i) reduce the principal of, rate of
interest on or any fees with respect to any Loan or Reimbursement Obligation;
(ii) postpone the date fixed for any payment (other than a payment pursuant to
Section 2.1(c)) of principal of any Loan, or of any Reimbursement Obligation or
of interest on any Loan or any Reimbursement Obligation or any fees hereunder or
for any termination of any commitment; (iii) change the definition of the term
Required Lenders or the percentage of Lenders which shall be required for
Lenders to take any action hereunder; (iv) amend or waive this Section 12.5 or
the definitions of the terms used in this Section 12.5 insofar as the
definitions affect the substance of this Section 12.5; (v) consent to the
assignment, delegation or other transfer by any Credit Party of any of its
rights and obligations under any Financing Document; or (vi) consent to the
release of any guarantor of the Obligations from its obligations and liabilities
arising under any Guarantee; and”

 

3

--------------------------------------------------------------------------------

3. Conditions. The effectiveness of this Amendment is subject to the following
conditions precedent:

 

  (a) the execution and delivery of this Amendment by each Credit Party that is
a party hereto, the Agent and Required Lenders;

 

  (b) the truth and accuracy of the representations and warranties contained in
Section 4 hereof; and

 

  (c) the Borrowers shall have delivered to Agent (i) an update of the Borrowing
Base Certificate previously delivered pursuant to Section 4.1(m)(i) of the
Credit Agreement for the fiscal month ended closest to September 30, 2004,
updated solely to reflect any expenditures in respect of the Restructuring and
the corresponding decrease in the Restructuring Reserve as of October 15, 2004
and (ii) a Restructuring Reserve Certificate reflecting expenditures made by the
Credit Parties through October 15, 2004.

 

4. Representations and Warranties. Each Credit Party hereby represents and
warrants to Agent and each Lender as follows:

 

  (a) the representations and warranties of the Borrowers and the other Credit
Parties contained in the Financing Documents are true and correct as of the date
hereof, except to the extent that any such representation or warranty relates to
a specific date, in which case such representation and warranty shall be true
and correct as of such earlier date;

 

  (b) the execution, delivery and performance by such Credit Party of this
Amendment are within its powers, have been duly authorized by all necessary
action pursuant to its Organizational Documents, require no further action by or
in respect of, or filing with, any governmental body, agency or official and do
not violate, conflict with or cause a breach or a default under any provision of
applicable law or regulation or of the Organizational Documents of any Credit
Party or of any agreement, judgment, injunction, order, decree or other
instrument binding upon it;

 

  (c) this Amendment constitutes the valid and binding obligation of the Credit
Parties that are parties hereto, enforceable against such Persons in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws relating to the enforcement of
creditor’s rights generally and by general equitable principles; and

 

  (d) no Default or Event of Default exists.

 

5. No Waiver. Nothing contained herein shall be deemed to constitute a waiver of
compliance with any term or condition contained in the Credit Agreement or any
of the other Financing Documents or constitute a course of conduct or dealing
among the parties. Except as expressly stated herein, Agent and Lenders reserve
all rights, privileges and remedies under the

 

4

--------------------------------------------------------------------------------

Financing Documents. Except as amended hereby, the Credit Agreement and other
Financing Documents remain unmodified and in full force and effect. All
references in the Financing Documents to the Credit Agreement shall be deemed to
be references to the Credit Agreement as amended hereby.

 

6. Severability. In case any provision of or obligation under this Amendment
shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of
such provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

 

7. Headings. Headings and captions used in this Amendment (including the
Exhibits, Schedules and Annexes hereto, if any) are included for convenience of
reference only and shall not be given any substantive effect.

 

8. GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AMENDMENT SHALL BE GOVERNED
BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. EACH CREDIT PARTY
HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN
THE COUNTY OF COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO
AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AMENDMENT OR THE OTHER FINANCING DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS.
EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH CREDIT
PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL
SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH PERSON BY CERTIFIED OR REGISTERED
MAIL, RETURN RECEIPT REQUESTED, ADDRESSED C/O FUNDS ADMINISTRATOR AT THE ADDRESS
SET FORTH IN THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10)
DAYS AFTER THE SAME HAS BEEN POSTED.

 

9. WAIVER OF JURY TRIAL. EACH CREDIT PARTY, AGENT AND THE LENDERS HEREBY
IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

10. Counterparts; Integration. This Amendment may be executed and delivered via
facsimile with the same force and effect as if an original were executed and may
be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures hereto were upon the same instrument.
This Amendment constitutes the entire agreement and understanding among the
parties hereto with respect to the subject matter hereof and supersedes any and
all prior agreements and understandings, oral or written, relating to the
subject matter hereof.

 

5

--------------------------------------------------------------------------------

11 Reaffirmation. Each of the Credit Parties as debtor, grantor, pledgor,
guarantor, assignor, or in other any other similar capacity in which such Credit
Party grants liens or security interests in its property or otherwise acts as
accommodation party or guarantor, as the case may be, hereby (i) ratifies and
reaffirms all of its payment and performance obligations, contingent or
otherwise, under each of the Financing Documents to which it is a party (after
giving effect hereto) and (ii) to the extent such Credit Party granted liens on
or security interests in any of its property pursuant to any such Financing
Document as security for or otherwise guaranteed the Borrowers’ Obligations
under or with respect to the Financing Documents, ratifies and reaffirms such
guarantee and grant of security interests and liens and confirms and agrees that
such security interests and liens hereafter secure all of the Obligations as
amended hereby. Each of the Credit Parties hereby consents to this Amendment and
acknowledges that each of the Financing Documents remains in full force and
effect and is hereby ratified and reaffirmed. The execution of this Amendment
shall not operate as a waiver of any right, power or remedy of the Agent or
Lenders, constitute a waiver of any provision of any of the Financing Documents
or serve to effect a novation of the Obligations.

 

[remainder of page intentionally left blank;

signature page follows]

 

6

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set
forth above.

 

BORROWERS: COMSYS SERVICES LLC, a Delaware limited liability company, as the
Funds Administrator and as a Borrower By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development
COMSYS INFORMATION TECHNOLOGY SERVICES, INC., a Delaware corporation, as a
Borrower By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development
VENTURI TECHNOLOGY PARTNERS, LLC, a North Carolina limited liability company, as
a Borrower By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development

--------------------------------------------------------------------------------

OTHER CREDIT PARTIES: COMSYS IT PARTNERS, INC., a Delaware corporation By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development
COMSYS HOLDING, INC., a Delaware corporation By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development PFI
CORP., a Delaware corporation By:  

/s/ DAVID L. KERR

--------------------------------------------------------------------------------

Name:   David L. Kerr Title:   Senior Vice President – Corporate Development

--------------------------------------------------------------------------------

AGENT AND LENDER:

MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services
Inc.,

as Agent and a Lender

By:  

/s/ Scott E. Gast

--------------------------------------------------------------------------------

Name:   Scott E. Gast Title:   Vice President

--------------------------------------------------------------------------------

LENDERS:

GMAC COMMERCIAL FINANCE LLC, as a Lender By:  

/s/ Thomas Brent

--------------------------------------------------------------------------------

Name:   Thomas Brent Title:   Vice President ING CAPITAL LLC, as a Lender By:  

/s/ DARYN K. VENÉY

--------------------------------------------------------------------------------

Name:   Daryn K. Venéy Title:   Vice President ALLIED IRISH BANKS PLC, as a
Lender By:  

/s/ JOHN FARRACE

--------------------------------------------------------------------------------

Name:   John Farrace Title:   Senior Vice President NORTH FORK BUSINESS CAPITAL
CORPORATION, as a Lender By:  

/s/ ROBERT HEINZ

--------------------------------------------------------------------------------

Name:   Robert Heinz Title:   Senior Vice President LOAN FUNDING VII LLC, as a
Lender By:   Highland Capital Management, L.P., as Collateral Manager     By:  

/s/ TODD TRAVERS

--------------------------------------------------------------------------------

    Name:   Todd Travers     Title:   Senior Portfolio Manager FRIEDBERGMILSTEIN
PRIVATE CAPITAL FUND I, as a Lender By:  

/s/ ERIC A. GREEN

--------------------------------------------------------------------------------

Name:   Eric A. Green Title:   Senior Partner