Exhibit 10.1


 


FIFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT


 


This Fifth Amendment to
Credit and Security Agreement (this “Fifth Amendment”), dated as of November 13, 2015, is made by and among
COMMAND SECURITY CORPORATION, a New York corporation (“CSC” or “Borrower”), and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, acting through its Wells Fargo Business Credit operating
division (“Wells Fargo”).


 


WITNESSETH:


 


WHEREAS, the Borrower
and Wells Fargo are parties to a certain Credit and Security Agreement dated as of February 12, 2009 (as amended by that certain
Amendment to Credit and Security Agreement dated as of December 1, 2009, that certain Second Amendment to Credit and Security
Agreement dated as of October 18, 2011, that certain Third Amendment to Credit and Security Agreement dated as of November 6,
2012, that certain Fourth Amendment to Credit and Security Agreement dated as of June 30, 2014, and as further amended, supplemented
and in effect, collectively, the “Credit Agreement”); and


 


WHEREAS, the Borrower has requested that Wells
Fargo modify and amend certain terms and conditions of the Credit Agreement; and


 


WHEREAS, the Wells Fargo has agreed to modify
and amend certain terms and conditions of the Credit Agreement, all as provided herein.


 


NOW, THEREFORE, in consideration of the premises
and of the mutual covenants and agreements herein contained, it is agreed as follows:


 


		1.	Defined Terms. Capitalized terms used
                                         in this Fifth Amendment which are defined in the Credit Agreement shall have the same
                                         meanings as defined therein, unless otherwise defined herein.



 


		2.	Amendments to Exhibit A. Exhibit A of
                                         the Credit Agreement is hereby amended as follows:



 


		(a)	The definition of “Funds from Operations” is
hereby deleted in its entirety and the following substituted in its stead:



 


“Funds from Operations”
means for a given period, the sum of (a) Net Income, (b) depreciation and amortization, (c) any increase (or decrease) in deferred
income taxes, (d) any increase (or decrease) in lifo reserves, (e) other non-cash items, (f) Relocation Expenses, and (g) Leal
Litigation Settlement Costs, each as determined for such period in accordance with GAAP.


 


		(b)	The following new definitions are hereby added to Exhibit
A of the Credit Agreement in their correct alphabetical order:



 


(i) “Leal Litigation” means
that certain lawsuit filed by Jose Leal, on behalf of himself and other similarly situated, v. Command Security Corporation d/b/a
CSC Security Services, Superior Court of the State of California, Orange County, Case No. 30-2011-00472660-CU-OE-CXC.


 


(ii) “Leal Litigation Settlement
Costs” means such amounts to be paid by Borrower in settlement of all claims pursuant to the Leal Litigation, including costs
for attorneys’ fees and expenses; provided however that aggregate amount of all such Leal Litigation Settlement Costs shall
not exceed $2,000,000 in the aggregate.”


 


		3.	Amendments to Exhibit D. Exhibit D of
                                         the Credit Agreement is hereby amended as follows:



 


		(a)	The disclosure schedule to Section (g) of Exhibit D to
the Credit Agreement is hereby amended by inserting the following information:



 


“Jose Leal, on behalf of himself and other similarly
situated, v. Command Security Corporation d/b/a CSC Security Services, Superior Court of the State of California, Orange County,
Case No. 30-2011-00472660-CU-OE-CXC


 


On April 29, 2014, the California Superior Court
granted a plaintiff’s motion (Leal v. Command Security Corporation) to certify a class consisting of all persons who
were employed by the Company in a non-exempt security officer position within the State of California at any time since May
2, 2007 through the date of trial who agreed to and signed an on-duty meal period agreement at the time of their employment.
The case is a certified class action involving allegations that the Company violated certain California state laws relating
to on-duty meal and rest breaks.


 


On October 13, 2015, the parties participated
in mediation and, on October 15, 2015, both parties accepted the terms of the mediator’s proposal. On November 12, 2015,
the Company and the plaintiff’s counsel executed a Memorandum of Understanding (“MOU”) in which it was agreed
that the maximum settlement amount will be $2.0 million, including plaintiff’s attorney fees and costs, administration costs,
and certain other miscellaneous costs. As part of the MOU, it was further agreed that (i) the final settlement will be subject
to court approval; (ii) a minimum of 50% of the net proceeds will be distributed to the class; and (iii) the settlement will be
paid in two installments, the first to be paid upon court approval of the final settlement agreement and the second to be paid
no later than one year from final approval. The settlement is not an admission of liability and the Company denies any wrongdoing.”



 




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		4.	Ratification of
                                         Loan Documents. Except as provided for herein, all terms and conditions of the Credit
                                         Agreement and the other Loan Documents remain in full force and effect. Borrower hereby
                                         ratifies, confirms, and reaffirms all representations, warranties, and covenants contained
                                         therein and acknowledges and agrees that the Obligations, as modified hereby, are and
                                         continue to be secured by the Collateral. Borrower warrants and represents to Wells Fargo
                                         that as of the date hereof, no Event of Default has occurred and is continuing. Borrower
                                         acknowledges and agrees that Borrower does not have any offsets, defenses, or counterclaims
                                         against Wells Fargo thereunder, and to the extent that any such offsets, defenses, or
                                         counterclaims may exist, Borrower hereby WAIVES and RELEASES Wells Fargo therefrom.



  


		5.	Fifth Amendment
                                         Fee. In addition to the other fees described in the Credit Agreement for which the
                                         Borrower is obligated to pay to Wells Fargo, in consideration of Wells Fargo’s
                                         entering into this Fifth Amendment, the Borrower shall pay to Wells Fargo a fee (the
                                         “Fifth Amendment Fee”) in the amount of Five Thousand Dollars ($5,000.00)
                                         simultaneous with the execution and delivery of this Fifth Amendment to Wells Fargo,
                                         which Fifth Amendment Fee shall be fully and irrevocably earned by Wells Fargo as of
                                         such date, and is non-refundable to the Borrower.



 


		6.	Conditions
                                         Precedent. This Fifth Amendment shall not be effective until each of the following
                                         conditions precedent has been fulfilled to the satisfaction of Wells Fargo:



 


		(a)	This Fifth Amendment shall have been duly executed and
delivered by the respective parties thereto, and shall be in full force and effect and shall be in form and substance satisfactory
to Wells Fargo.



 


		(b)	Wells Fargo shall have received the documents, instruments
and agreements as Wells Fargo may reasonably require to effectuate this Fifth Amendment.



 


		(c)	All action on the part of the Borrower necessary for the
valid execution, delivery and performance by the Borrower of this Fifth Amendment shall have been duly and effectively taken and
evidence thereof reasonably satisfactory to Wells Fargo shall have been provided to Wells Fargo.



 


		(d)	The Borrower shall have paid the Fifth Amendment Fee.



 


		(e)	No Event of Default shall have occurred and be continuing.



 


		(f)	The Borrower shall have paid all reasonable and documented
costs and expenses of Wells Fargo, including, without limitation, reasonable attorneys’ fees in connection with the preparation,
negotiation, execution and delivery of this Fifth Amendment as well as any outstanding invoices.



 


		7.	Miscellaneous.



 


		(a)	This Fifth Amendment may be executed in several counterparts
and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which
together shall constitute one instrument.



 


		(b)	This Fifth Amendment expresses the entire understanding
of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify,
or otherwise affect the provisions hereof.



  


		(c)	Any determination that any provision of this Fifth Amendment
or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity,
legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other
provisions of this Fifth Amendment.



 


		(d)	The Borrower warrants and represents that the Borrower
has consulted with independent legal counsel of the Borrower’s selection in connection with this Fifth Amendment and is
not relying on any representations or warranties of Wells Fargo or its counsel in entering into this Fifth Amendment.



 


[Remainder of Page Left Blank Intentionally]


 




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IN WITNESS WHEREOF, each
party hereto has executed this Fifth Amendment as a sealed instrument under the laws of the Commonwealth of Massachusetts through
its authorized officer as of the date set forth above.


 


	 	COMMAND SECURITY CORPORATION 
	 	 
	 	By: 	/s/ N. Paul Brost




	 	Name:	N. Paul Brost




	 	Title:  	Chief Financial Officer




	 	 	 
	 	WELLS FARGO BANK,
	 	NATIONAL ASSOCIATION  
	 	 
	 	By: 	/s/ James A. Kelly




	 	Name:	James A. Kelly
	 	Title:  	Vice President






 


Signature Page to Fifth Amendment to Credit
Agreement