Document:

Exhibit
10.3.5.2

 

SECOND
AMENDMENT

TO

EMPLOYMENT CONTRACT

BY AND BETWEEN

WESTAFF SUPPORT, INC.  AND DIRK A. SODESTROM

 

The Employment Contract
dated as of January 1, 2001 by and between Westaff Support, Inc.
(“Westaff”) and Dirk A. Sodestrom (“you”) and amended effective June 30,
2003 is hereby further amended as follows effective June 30, 2004:

 

The first sentence of
Section 3 is hereby deleted and replaced with the following sentence:

 

“You will be paid a
salary of Two Hundred Forty Five Thousand Dollars ($245,000) per year.”

 

All other terms and
conditions of the above-referenced Employment Contract shall remain in full
force and effect unless otherwise amended herein.

 

 

EMPLOYEE:

 

 

	
  /s/ Dirk A. Sodestrom

  	
   

  
	
  Dirk A. Sodestrom

  

 

 

WESTAFF SUPPORT, INC.

 

 

	
  By:

  	
  /s/ Dwight S. Pedersen

  	
   

  	
   

  
	
   

  	
  Dwight S. Pedersen

  	
   

  	
   

  
	
   

  	
   

  
	
  Title: President and
  Chief Executive OfficerExhibit
10.3.8.4

 

SECOND
AMENDMENT

TO

EMPLOYMENT AGREEMENT

BY AND AMONG

WESTAFF SUPPORT, INC., WESTAFF, INC.,
AND DWIGHT S. PEDERSEN

 

The Employment Agreement
effective as of January 14, 2002 by and among Westaff Support, Inc. (the
“Company”), Westaff, Inc. (“Westaff”), and Dwight S. Pedersen (the “Executive”)
and amended effective June 30, 2003 is hereby further amended as follows
effective June 30, 2004:

 

The second sentence of
Section 3.(a) is hereby deleted and replaced with the following sentence:

 

“The
current annual Base Salary to be paid Executive shall be Four Hundred Thousand
Dollars ($400,000), less withholdings required by law and agreed upon
deductions, if any.”

 

All other terms and
conditions of the above-referenced Employment Agreement shall remain in full
force and effect unless otherwise amended herein.

 

EXECUTIVE:

 

	
  /s/ Dwight S. Pedersen

  	
   

  
	
  Dwight S. Pedersen

  

 

 

	
  COMPANY:

  	
   

  
	
  WESTAFF SUPPORT, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ W. Robert Stover

  	
   

  	
   

  
	
   

  	
  W. Robert Stover

  	
   

  
	
   

  	
   

  
	
  Title: Chairman of the
  Board

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WESTAFF:

  	
   

  
	
  WESTAFF, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ W. Robert Stover

  	
   

  	
   

  
	
   

  	
  W. Robert Stover

  	
   

  
	
   

  	
   

  
	
  Title: Chairman of the
  BoardExhibit 10.8.20.5

 

EXECUTION COPY

 

FIFTH AMENDMENT

TO

MULTICURRENCY CREDIT AGREEMENT

AND CONSENT OF GUARANTORS

 

This FIFTH AMENDMENT TO MULTICURRENCY
CREDIT AGREEMENT AND CONSENT OF GUARANTORS (this “Amendment”)
is dated as of July 31, 2004, 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 3,
2003, and that certain Fourth Amendment to Multicurrency Credit Agreement,
Limited Waivers and Consent of Guarantors, dated as of February 20, 2004,
and as further modified by certain consents and waivers of the Lenders, 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 amend certain provisions
of the Loan Documents; and

 

Whereas,
the Requisite Lenders are willing to approve certain amendments requested by
the Borrowers on the terms and conditions set forth in this Amendment (which
Amendment shall be effective as of the date that all conditions to such
effectiveness set forth herein have been satisfied).

 

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. 
Section 1.5(a) of the Credit Agreement is hereby amended to
delete all paragraphs but the first paragraph of such Section, including the
grid contained therein,  and to replace
them with the following:

 

“As of the Fifth Amendment Effective Date,
the Applicable Margins are as follows:

 

	
  Applicable Revolver Index Margin

  	
   

  	
  0.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Applicable Revolver LIBOR Margin

  	
   

  	
  2.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Applicable L/C Margin

  	
   

  	
  2.50

  	
  %

  

 

The Applicable Margins shall be adjusted (up
or down) prospectively on a quarterly basis as determined by Borrowers’
consolidated financial performance, commencing with the first day of the first
calendar month that occurs more than 5 days after delivery of Borrowers’
quarterly Financial Statements to Lenders for the Fiscal Quarter ending in
October, 2004.  Adjustments in
Applicable Margins shall be determined by reference to the following grids:

 

	
  If  Trailing 13-Fiscal Period

  EBITDA IS:

  	
   

  	
  Level of

  Applicable Margins:

  	
   

  
	
  > $12.5 million

  	
   

  	
  Level I

  	
   

  
	
  < $12.5 million, and > $8.8 million

  	
   

  	
  Level II

  	
   

  
	
  < $8.8 million

  	
   

  	
  Level III

  	
   

  

 

	
   

  	
   

  	
  Applicable
  Margins

  	
   

  
	
   

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  
	
  Applicable Revolver Index Margin

  	
   

  	
  0.00

  	
  %

  	
  0.25

  	
  %

  	
  0.50

  	
  %

  
	
  Applicable Revolver LIBOR Margin

  	
   

  	
  2.25

  	
  %

  	
  2.50

  	
  %

  	
  2.75

  	
  %

  
	
  Applicable L/C Margin

  	
   

  	
  2.25

  	
  %

  	
  2.50

  	
  %

  	
  2.75

  	
  %

  

 

All adjustments in the Applicable Margins
after October 2004 shall be implemented quarterly on a prospective basis
based on the EBITDA (adjusted in accordance with the Fourth Amendment and Fifth
Amendments) for Parent and its Subsidiaries on a consolidated basis for the 13
Fiscal Periods then ended, for each calendar month commencing at least 5 days
after the date of delivery to Lenders of the quarterly unaudited Financial
Statements evidencing the need for an adjustment.  Concurrently with the delivery of those Financial Statements,
Borrower Representative

 

2

 

shall deliver to Agents and Lenders a certificate, signed by a
Financial Officer, setting forth in reasonable detail the basis for the
continuance of, or any change in, the Applicable Margins.  Borrowers hereby agree, that if at any time
after receipt by the Applicable Agent of any audited Financial Statements
required to be delivered hereunder, the Applicable Agent determines in its sole
discretion that an unjustified reduction in the Applicable Margin has been
granted to Borrowers, Borrowers shall pay upon demand therefore an amount equal
to the difference between (i) the interest amount that should have been paid by
Borrowers for such period but for such unjustified reduction in the Applicable
Margin and (ii) the interest amount actually paid by Borrowers for such period.  Failure
to timely deliver any Financial Statements required in this Section 1.5(a)
shall, in addition to any other remedy provided for in this Agreement, result
in an increase in the Applicable Margins to the highest level set forth in the
foregoing grid, until the first day of the first calendar month following the
delivery of those Financial Statements demonstrating that such an increase is
not required.  If a Default or Event of
Default has occurred and is continuing at the time any reduction in the
Applicable Margins is to be implemented, that reduction shall be deferred until
the first day of the first calendar month following the date on which such
Default or Event of Default is waived or cured.”

 

1.2           Amendments to Section 1.6 of
the Credit Agreement.  Section 1.6
of the Credit Agreement is hereby amended as follows:

 

(a)   Clause (e) is hereby amended to add the phrase
“Other than Revenue Week Accounts,” at the beginning of such clause;

 

(b)   Clause (h) is hereby amended to add the following proviso
at the end of such clause:  “provided
that up to $2,500,000 of Accounts from state, county or municipal Governmental
Authorities or departments, agencies or instrumentalities thereof may be
Eligible Accounts without compliance with applicable state, county or municipal
laws relating to assignments of claims”; and

 

(c)   Clause (s) is hereby deleted.

 

1.3           Amendments to Section 1.8(c) of
the Credit Agreement.  Section 1.8(c)
of the Credit Agreement is hereby amended to delete the next to the last
sentence and to replace it with the following:

 

As used herein, the term “Applicable Percentage” shall mean (v)  three percent (3.0%), in the case of a
prepayment on or prior to the first anniversary of the Closing Date, (w) two
percent (2.0%), in the case of a prepayment after the first anniversary of the
Closing Date but on or prior to the second anniversary thereof, (x) one percent
(1.0%), in the case of a prepayment after the second anniversary of the Closing
Date but on or prior to the third anniversary thereof, (y) one half of one
percent (0.5%) in the case of a prepayment after the third anniversary of the
Closing Date but on or prior to the fourth anniversary thereof, and (z) zero
percent (0%) from and after the fourth anniversary of the Closing Date,
provided however, that the Applicable Percentage shall be zero in the event
such

 

3

 

prepayment is made as a result of a Change of Control occurring after
the third anniversary of the Closing Date.

 

1.4           Amendment to Section 1.13
of the Credit Agreement is amended to delete the word “three” in the next to
the last sentence and to replace it with “two”

 

1.5           Amendments to Annex A (Definitions)
of the Credit Agreement.  Annex
A to the Credit Agreement is hereby amended to amend and/ to or add the
following definitions as set forth below:

 

(a)   the following definitions in Annex A to the
Credit Agreement are each hereby amended and restated in their entirety to read
as follows:

 

“Availability Reserve” means zero.

 

“EBITDA” means with respect to any Person for any fiscal period,
without duplication, an amount equal to (a) consolidated net income of such
Person for such period determined in accordance with GAAP, minus (b) the sum of
(i) income tax credits, (ii) interest income, (iii) gain from extraordinary
items for such period, (iv) any aggregate net gain (but not any aggregate net
loss) during such period arising from the sale, exchange or other disposition
of capital assets by such Person (including any fixed assets, whether tangible
or intangible, all inventory sold in conjunction with the disposition of fixed
assets and all securities), (v) any other non-cash gains that have been added
in determining consolidated net income, in each case to the extent included in
the calculation of consolidated net income of such Person for such period in
accordance with GAAP, and (vi) gains from foreign currency exchange
adjustments, but without duplication, plus (c) the sum of (i) any provision for
income taxes, (ii) Interest Expense, (iii) loss from extraordinary items for
such period, (iv) depreciation and amortization for such period, (v) amortized
debt discount for such period, (vi) the amount of any deduction to consolidated
net income as the result of any grant to any members of the management or
employees of such Person of any Stock, in each case to the extent included in
the calculation of consolidated net income of such Person for such period in
accordance with GAAP, (vii) losses from foreign currency exchange adjustments,
(viii) write-down of good will, but without duplication and (ix) without
duplication, premium or other expenses up to $2.5 million related to closing
the Alternative Collateral Transaction for policy years 1992

 

4

 

through 2004, provided that the form and substance of the transaction
is satisfactory to Lenders.  For purposes of this definition,
the following items shall be excluded in determining consolidated net income of
a Person without duplication: (1) the income (or deficit) of any other Person
accrued prior to the date it became a Subsidiary of, or was merged or
consolidated into, such Person or any of such Person’s Subsidiaries; (2) the
income (or deficit) of any other Person (other than a Subsidiary) in which such
Person has an ownership interest, except to the extent any such income has
actually been received by such Person in the form of cash dividends or
distributions; (3) the undistributed earnings of any Subsidiary of such Person
to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary is not at the time permitted by the terms of
any contractual obligation or requirement of law applicable to such Subsidiary;
(4) any restoration to income of any contingency reserve, except to the extent
that provision for such reserve was made out of income accrued during such
period; (5) any write-up of any asset; (6) any net gain from the collection of
the proceeds of life insurance policies; (7) any net gain arising from the acquisition
of any securities, or the extinguishment, under GAAP, of any Indebtedness, of
such Person, (8) in the case of a successor to such Person by consolidation or
merger or as a transferee of its assets, any earnings of such successor prior
to such consolidation, merger or transfer of assets, (9) any deferred credit
representing the excess of equity in any Subsidiary of such Person at the date
of acquisition of such Subsidiary over the cost to such Person of the
investment in such Subsidiary and (10) subsequent to closing the Alternative
Collateral Transaction, the income or expense charge required under generally
accepted accounting principles to increase or decrease the reserves for
workers’ compensation incurred claim losses relating to fiscal years 1992 through
2004, however, only to the extent such charges arise from periodic adjustments
supported by actuarial review (excluding recurring monthly accruals) and only
to the extent that such charges do not and will not result in any current or
future cash outlays by any Credit Party or any of its Subsidiaries.

 

“Revenue Week Account’ means an Account for which the services
have been performed and accepted by the customer (as evidenced by an approved
time card) but for which an invoice has not been issued;

 

5

 

provided that each
Revenue Week Account shall cease to be an Eligible Account upon the earlier of
(x) seven (7) days after the receipt of the approved time card or (y) issuance
of an invoice for such Account.”

 

“‘UK Borrowing Base’ means, as of any date of determination by
UK Agent, from time to time, an amount equal to (a) up to 85% of the book value
of UK Borrower’s Eligible Accounts (other than Revenue Week Accounts) in Pounds
Sterling; plus (b) the lesser of (i) up to 50% of the book value of UK
Borrower’s Revenue Week Accounts and (ii) the Pound Sterling Equivalent of
$500,000; less (c) any Reserves established by UK Agent at such time.”

 

“‘US Borrowing Base’ means, as of any date of determination by
US Agent, from time to time, an amount equal to (a) up to 85% of the book value
of US Borrower’s Eligible Accounts (other than Revenue Week Accounts); plus
the lesser of (i) up to 50% of the book value of US Borrower’s Revenue Week
Accounts and (ii) $5,000,000;  less
(b) any Reserves established by US Agent at such time.”

 

(b)   the following new definitions are hereby added to Annex
A to the Credit Agreement in the proper alphabetical order, which
definitions shall read as follows:

 

“Alternative Collateral Transaction” means a transaction involving the
restructuring of the existing workers compensation collateral program for
Parent and its Subsidiaries, in form and substance satisfactory to Lenders and
pursuant to documentation satisfactory to Lenders.

 

“‘Fifth Amendment’ means the Fifth Amendment to Multicurrency
Credit Agreement and Consent of Guarantors, dated as of
July       , 2004, among the Parent, the
Borrowers, the Lenders and Agents.”

 

“‘Fifth Amendment Effective Date’ means the date on which the
Fifth Amendment became effective in accordance with its terms.”

 

1.6           Amendments
to Annex E (Financial Statements and Projections – Reporting), Annex
F (Collateral Reports), and Annex G (Financial Covenants) to the
Credit Agreement.

 

6

 

(a)   Annex
E (Financial Statements and Projections – Reporting) to the Credit
Agreement is amended to delete Paragraph (o) in its entirety.

 

(b)   Annex
F (Collateral Reports) to the Credit Agreement is amended to delete Paragraph
(b) in its entirety and to replace it with the following:

 

“To the Applicable Agent, upon the request of the Applicable Agent and
in any event on the first Business Day of each week (together with a copy of
all or any part of the following report requested by any Lender in writing
after the Closing Date), a
collateral report with respect to the Accounts of the US Borrowers and the UK
Borrower, identifying the balance of all Accounts (other than Revenue Week
Accounts) and the balance of all Revenue Week Accounts, and reflecting all
collections of Accounts, in each case accompanied by such supporting detail and
documentation as shall be requested by the Applicable Agent in its reasonable
discretion, each of which shall be prepared by the Applicable Borrower as of the
end of the immediately preceding week;”

 

(c)   Annex G (Financial Covenants) to the Credit
Agreement is hereby amended as follows:

 

(a)  Paragraph (a) (Maximum Capital
Expenditures) of  Annex G of the
Credit Agreement is hereby amended to increase the maximum Capital Expenditures
permitted thereunder with respect to Fiscal Year 2004 from $2,500,000 to
$5,000,000;

 

(b) 
Paragraph (c) (Minimum EBITDA) of such Annex G
is amended and restated  in its
entirety to read as follows:

 

“(c)         Minimum EBITDA  Parent and its Subsidiaries on a
consolidated basis shall have at the end of each Fiscal Period set forth below,

 

(i)   EBITDA for the 13 Fiscal Periods
then ended of not less than the amount set forth below for such period:

 

7

 

	
  PERIOD

  	
   

  	
  FISCAL
  PERIOD

  ENDING

  	
   

  	
  MINIMUM

  EBITDA

  	
   

  
	
  Period 9, 2004

  	
   

  	
  7/10/2004

  	
   

  	
  $

  	
  9,000,000

  	
   

  
	
  Period 10, 2004

  	
   

  	
  8/7/2004

  	
   

  	
  $

  	
  9,000,000

  	
   

  
	
  Period 11, 2004

  	
   

  	
  9/4/2004

  	
   

  	
  $

  	
  8,800,000

  	
   

  
	
  Period 12, 2004

  	
   

  	
  10/2/2004

  	
   

  	
  $

  	
  8,300,000

  	
   

  
	
  Period 13, 2004

  	
   

  	
  10/30/2004

  	
   

  	
  $

  	
  8,200,000

  	
   

  
	
  Period 1, 2005

  	
   

  	
  11/27/2004

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  Period 2, 2005

  	
   

  	
  12/25/2004

  	
   

  	
  $

  	
  7,900,000

  	
   

  
	
  Period 3, 2005

  	
   

  	
  1/22/2005

  	
   

  	
  $

  	
  8,200,000

  	
   

  
	
  Period 4, 2005

  	
   

  	
  2/19/2005

  	
   

  	
  $

  	
  8,300,000

  	
   

  
	
  Period 5, 2005

  	
   

  	
  3/19/2005

  	
   

  	
  $

  	
  8,500,000

  	
   

  
	
  Period 6, 2005

  	
   

  	
  4/16/2005

  	
   

  	
  $

  	
  9,000,000

  	
   

  
	
  Period 7, 2005

  	
   

  	
  5/14/2005

  	
   

  	
  $

  	
  8,900,000

  	
   

  
	
  Period 8, 2005

  	
   

  	
  6/11/2005

  	
   

  	
  $

  	
  8,800,000

  	
   

  
	
  Period 9, 2005

  	
   

  	
  7/9/2005

  	
   

  	
  $

  	
  9,200,000

  	
   

  
	
  Period 10, 2005

  	
   

  	
  8/6/2005

  	
   

  	
  $

  	
  9,800,000

  	
   

  
	
  Period 11, 2005

  	
   

  	
  9/3/2005

  	
   

  	
  $

  	
  10,500,000

  	
   

  
	
  Period 12, 2005

  	
   

  	
  10/1/2005

  	
   

  	
  $

  	
  11,200,000

  	
   

  

 

(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

  	
   

  
	
  10/29/2005

  	
   

  	
  $

  	
  11,900,000

  	
   

  
	
  1/21/2006

  	
   

  	
  $

  	
  12,000,000

  	
   

  
	
  4/15/2006

  	
   

  	
  $

  	
  12,000,000

  	
   

  
	
  7/8/2006

  	
   

  	
  $

  	
  12,000,000

  	
   

  
	
  10/28/2006

  	
   

  	
  $

  	
  14,000,000

  	
   

  

 

8

 

(iii) at the end of each Fiscal Quarter after October 28, 2006,
EBITDA for the 13 Fiscal Periods then ended of not less than $14,000,000

 

and (c) to delete Paragraph (d) (Minimum Domestic EBITDA) of
such Annex G in its entirety.

 

1.7           Amendments to Exhibit 1.1(a)(i)
(Combined Notice of Revolving Credit Advance and Collateral Activity Report)
and Exhibit 4.1(b) (Borrowing Base Certificate) to the Credit Agreement.

 

(a)   Exhibit 1.1(a)(i) to the Credit Agreement is
hereby amended and restated in its entirety by substituting therefore Schedule 1/Exhibit
1.1(a)(i)  attached hereto, such
that Schedule 1/Exhibit 1.1(a)(i) shall be Exhibit 1.1(a)(i)
under the Credit Agreement; and

 

(b)   Exhibit 4.1(b) to the Credit Agreement is
hereby amended and restated in its entirety by substituting therefore Schedule 2/Exhibit
4.1(b)  attached hereto, such that Schedule 2/Exhibit
4.1(b) shall be Exhibit 4.1(b) under the Credit Agreement.

 

1.8           Deletion of Covenant Under Fourth
Amendment.  The covenant
set forth in Section 4(b) of the Fourth Amendment is hereby deleted and
shall have no force and effect.

 

2.             ONE-TIME ADD-BACK TO EBITDA.   Subject to the provisions of this Section 2 and
the satisfaction of the other conditions set forth in this Amendment, the
Lenders hereby agree that, solely for the purpose of determining compliance
with the minimum EBITDA covenants set forth in Paragraphs (c) and (d) of Annex
G (Financial Covenants) to the Credit Agreement, as amended by this Amendment,
the Parent and its Subsidiaries may, for the Fiscal Period ended April 17,
2004, make a one-time add-back adjustment to EBITDA in the aggregate amount of
$480,000 with respect to certain adjustments directly resulting from a quarter
end adjustment in the amount of $480,000 to increase workers’ compensation
reserves for all periods prior to November 1, 2003.  This add-back is in addition to the add-back
to EBITDA set forth in Section 2 of the Fourth Amendment.

 

3.             REPRESENTATIONS AND WARRANTIES OF THE PARENT AND THE
BORROWERS.  The Parent and
the US Borrower, jointly and severally, and UK Borrower, only in respect of
itself, severally, make the following representations and warranties to each
Lender and each Agent with respect to all Credit Parties:

 

3.1                           Power and Authority. 
Each of the Credit Parties has all corporate or other
organizational power and authority to enter into this Amendment and, as
applicable, the Consent of Guarantors attached hereto (the “Consent”),
and to carry out the transactions contemplated by, and to perform its
obligations under or in respect of, the Credit Agreement, as amended hereby.

 

9

 

3.2                           Due Authorization,
Non-Contravention.  The
execution, delivery and performance by each Credit Party of this Amendment and
the Consent, as applicable, and the performance of the obligations of each
Credit Party under or in respect of the Credit Agreement as amended hereby (a)
have been duly authorized by all necessary corporate, limited liability company
or partnership action, (b) do not contravene any provision of such Person’s
charter, bylaws or partnership or operating agreement, as applicable, (c) do
not violate any law or regulation or any order or decree of any court or
Governmental Authority of the United States or the United Kingdom or, in each
case, any political subdivision thereof, (d) do not conflict with or result in
the breach or termination of, constitute a default under or accelerate or
permit the acceleration of any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which such
Person is a party or by which such Person or any of its property is bound,
except where any such violations, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, and (e) do not result
in the creation or imposition of any Lien on any of the property of such
Person.

 

3.3                           Execution, Delivery and
Enforceability.  This Amendment
and the Consent have been duly executed and delivered by each Credit Party
which is a party thereto and this Amendment, the Consent and the Credit
Agreement as amended hereby constitute the legal, valid and binding obligations
of such Credit Party, enforceable in accordance with their terms, except as
enforceability may be limited by Insolvency Laws or similar laws affecting
creditors’ rights generally or by general equitable principles.

 

3.4                           No Default or Event of Default. 
No event has occurred and is continuing after giving
effect to this Amendment or will result from the execution and delivery of this
Amendment or the Consent that would constitute a Default or an Event of Default.

 

3.5                           Representations and Warranties. 
After giving effect to this Amendment, each of the
representations and warranties contained in the Loan Documents is and will be
true and correct in all material respects on and as of the date hereof and as
of the effective date of this Amendment, except to the extent that such
representations and warranties specifically relate to an earlier date, in which
case they were true, correct and complete in all material respects as of such
earlier date.

 

4.             CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT.  This Amendment shall be effective
only if and when (i) signed by, and when counterparts hereof shall have been
delivered to the US Agent (by hand delivery, mail or telecopy) by, the Parent,
the Borrowers and the Requisite Lenders; (ii) each Guarantor shall have
delivered to the US Agent executed counterparts of the Consent; (iii) Borrowers
shall have delivered to the US Agent a certificate certifying that the
charters, bylaws (or other similar organizational document) and resolutions
authorizing the execution, delivery and performance by the Credit Parties of
their obligations under the Credit Agreement, each in the form delivered to the
Agents on the Closing Date, are in full force and effect and have not been
amended, rescinded or otherwise modified as of the date of this Amendment
(other than an amendment to Parent’s bylaws to reduce the number of members of
the board of directors from six to five); that no other resolutions have been
adopted with respect to this Amendment and that no further authorization or
consent is required to be obtained with respect to the execution, delivery and
performance of this

 

10

 

Amendment, the
Consent and the Credit Agreement as amended hereby; and an incumbency
certificate for each Credit Party; and (iv) the US Agent, for the ratable
benefit of the Lenders, shall have received payment by the Borrowers of a
non-refundable fee equal to $50,000.

 

5.             EFFECT
OF AMENDMENT; RATIFICATION.  This Amendment
is a Loan Document.  From and after the
date on which this Amendment becomes effective, all references in the Loan
Documents to the Credit Agreement shall mean the Credit Agreement as amended
hereby.  Except as expressly amended or
waived hereby, the Credit Agreement and the other Loan Documents, including the
Liens granted thereunder, shall remain in full force and effect, and all terms
and provisions thereof are hereby ratified and confirmed.  Each of the Parent and each Borrower
confirms that, as amended hereby, each of the Loan Documents is in full force
and effect.

 

6.             RELEASE
AND WAIVER OF CLAIMS, DEFENSES AND RIGHTS OF SET OFF.  Each of the Parent and the Borrowers
acknowledges that the US Agent, the UK Agent and the Lenders have performed all
obligations and duties owed to the Parent and the Borrowers under the Loan
Documents through the date hereof, and each such party further, acknowledges,
represents and warrants that, none of the Parent or the Borrowers has any
claim, cause of action, defense, or right of set off against the US Agent, the
UK Agent or the Lenders, and, to the extent that any such party has any such
rights, each of the Parent and the Borrowers hereby releases, waives, and
forever discharges the US Agent, the UK Agent and the Lenders (together with
each of their predecessors, successors and assigns) and each of their officers,
directors, employees, agents and representatives from each action, cause of
action, suit, debt, defense, right of set off, or other claim whatsoever, in law
or in equity, known or unknown against the US Agent, the UK Agent or the
Lenders, or such officers, employees, agents or representatives.  Each of the Parent and each Borrower hereby
specifically waives as against the US Agent, the UK Agent or the Lenders any
rights they or any of them may have under Section 1542 of the California
Civil Code, which provides as follows: 
“A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”

 

7.             APPLICABLE
LAW.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS
AND DECISIONS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES.

 

8.             COMPLETE
AGREEMENT.  This Amendment sets
forth the complete agreement of the parties in respect of any amendment to any
of the provisions of any Loan Document. 
The execution, delivery and effectiveness of this Amendment do not
constitute a waiver of any Default or Event of Default, amend or modify any
provision of any Loan Document except as expressly set forth herein or
constitute a course of dealing or any other basis for altering the Obligations
of any Credit Party.

 

9.             CAPTIONS;
COUNTERPARTS.  The catchlines and
captions herein are intended solely for convenience of reference and shall not
be used to interpret or construe the

 

11

 

provisions
hereof. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts (including by telecopy), all
of which taken together shall constitute but one and the same instrument.

 

12

 

IN WITNESS WHEREOF,
each of the undersigned has duly executed this Fifth Amendment to Multicurrency
Credit Agreement and Consent of Guarantors as of the date set forth above.

 

	
   

  	
  WESTAFF (USA), INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:

  	
  Dirk A.  Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTAFF SUPPORT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:

  	
  Dirk A. Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTAFF (U.K.) LIMITED

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dwight S. Pedersen

  	
   

  
	
   

  	
  Name: 

  	
  Dwight S. Pedersen

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION,

  
	
   

  	
  as US Agent, UK Agent, a US Revolving Lender, a

  Term Lender and a UK Revolving Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lawrence E. Ridgway

  	
   

  
	
   

  	
  By: 

  	
  Lawrence E. Ridgway

  
	
   

  	
  Duly Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N. A.,

  
	
   

  	
  as Documentation Agent, a US Revolving Lender, a

  Term Lender and a UK Revolving Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David T. Knoblauch

  	
   

  
	
   

  	
  Name:

  	
  David T. Knoblauch

  
	
   

  	
  Title:

  	
  Senior Vice President

  
										

 

S-1

 

The following Person is a signatory to this Fifth Amendment to
Multicurrency Credit Agreement and Consent of Guarantors in its capacity as a
Credit Party and not as a Borrower.

 

	
   

  	
  WESTAFF, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name: 

  	
  Dirk A.  Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial

  Officer

  
					

 

S-1

 

CONSENT OF GUARANTORS

 

Each of the undersigned is a Guarantor of the Obligations of the
Borrowers under the Credit Agreement and each other Loan Document (including US
Borrower and Term Borrower in its capacity as a Guarantor of the Obligations of
the other Borrowers) and hereby (a) consents to the foregoing Amendment, (b)
acknowledges that notwithstanding the execution and delivery of the foregoing
Amendment, the obligations of each of the undersigned Guarantors are not
impaired or affected and the Parent Guaranty, the Subsidiary Guaranty, and the
cross-guaranty contained in the Credit Agreement continue in full force and
effect, and (c) ratifies the Parent Guaranty, the Subsidiary Guaranty or the
cross-guaranty contained in the Credit Agreement, as applicable, and each of
the Loan Documents to which it is a party and further ratifies the Liens
granted by it to any Agent for its benefit and the benefit of the Lenders.

 

[signatures following; remainder of page
intentionally left blank]

 

Consent -1

 

IN WITNESS WHEREOF, each of the undersigned
has executed and delivered this CONSENT OF GUARANTORS as of the date first set
forth above.

 

 

	
   

  	
  WESTAFF, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:

  	
  Dirk A. Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTERN MEDICAL SERVICES, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary A. Kittleson

  	
   

  
	
   

  	
  Name:

  	
  Gary Kittleson

  
	
   

  	
  Title:

  	
   Executive Vice President, Chief

  Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTAFF (USA), INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:  

  	
  Dirk A. Sodestrom

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WESTAFF SUPPORT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:  

  	
  Dirk A. Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief

  Financial Officer

  
							

 

Consent Signatures - 1

 

	
   

  	
  MEDIAWORLD INTERNATIONAL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dirk A. Sodestrom

  	
   

  
	
   

  	
  Name:

  	
  Dirk A. Sodestrom

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief

  Financial Officer

  
					

 

Consent Signatures - 2

 

Schedule 1/Exhibit 1.1(a)(i)

 

[see attached]

 

 

Exhibit 1.1(a)(i)

Westaff (USA), Inc.

 

Combined Notice of Revolving Credit Advance
and Collateral Activity Report - (A/R Only Rollforward)

 

Capitalized terms used herein which are
defined in the Credit Agreement dated as of 5-17-02 shall have the meanings
therein defined.  The undersigned hereby
certifies that on the date hereof and on the borrowing date set forth below,
and after giving effect to the Advances requested hereby: (i) there exists and
there shall exist no Default or Event of Default under the Credit Agreement;
(ii) the proceeds of the Revolving Credit Advances will be used in accordance
with Section 1.4  of the Credit
Agreement; and (iii) each of the representations and warranties contained in
the Credit Agreement and the other Loan Documents is true and correct in all
material respects.

 

	
  Client and Address

  	
   

  	
   

  	
   

  	
  Name of Contact

  	
   

  	
   

  	
  Phone

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
   

  	
   

  
	
  Request
  Date

  	
   

  	
   

  	
   

  	
  LIBOR
  Loan Amount

  	
   

  	
   

  	
   

  	
  Fax

  	
   

  	
   

  	
   

  
	
  Current
  Index Rate Loan Request

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  LIBOR
  Period:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wire
  Information

  	
   

  	
  US
  Bank

  	
   

  	
  Bank
  of America

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
  2890 North Main Street

  	
   

  	
  345 Montgomery Street

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Walnut Creek, CA 94596

  	
   

  	
  San Francisco, CA  94104

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Account
  Name

  	
   

  	
  Westaff USA, Inc

  	
   

  	
  Westaff USA, Inc

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABA#

  	
   

  	
  091 000 022

  	
   

  	
  121 000 358

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acct#

  	
   

  	
  1534
  906 00159

  	
   

  	
  14990 13019

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wire Amount

  	
   

  	
   

  	
  $0.00

  	
   

  	
   

  	
   

  	
  $0.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank
  Contact

  	
   

  	
  Scott Smith (925) 942-9484

  	
   

  	
  Nancy Tully (714) 850-6589

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collateral Availability
  Information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A/R Aging Balance

  	
   

  	
  from
  AR Aging dated

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ineligible Accounts

  	
   

  	
  from
  Borrowing Base Cert for P/E

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eligible Aging Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current Week Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning AR Balance

  	
   

  	
  from previous request dated

  	
   

  	
   

  	
  +

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Plus: Sales

  	
   

  	
  Information recorded on  

  	
   

  	
   

  	
  +

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Cash Receipts Applied

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Credit Memos

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Discounts

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Plus/Minus: Other Debits/Credits

  	
   

  	
   

  	
   

  	
   

  	
  +/-

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Explanation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ending Net Current AR Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current A/R Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available A/R Aging Advance rate

  	
   

  	
   

  	
   

  	
  85%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beginning Net Current Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Plus: Estimated Sales

  	
   

  	
   

  	
   

  	
   

  	
  +

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Current billing

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Ending Net Current Week Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Net Current Revenue Week Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue Week Advance rate

  	
   

  	
  Lesser
  of 50% of net revenue week or $5,000,000

  	
   

  	
  50%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Available

  	
   

  	
  Lesser
  of total available or $50,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  
	
  Less: Revolver

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
   

  	
   

  
	
  Less: LIBOR Outstanding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
   

  	
   

  
	
  Less: Outstanding Letters of Credit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
   

  	
   

  
	
  Less: Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  
	
  (                         )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excess Availability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revolver Balance

  	
   

  	
  Line
  H Last Request Dated

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Deposit Sweep From Last to Current Request

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Plus: Current Amount Requested (From Above)

  	
   

  	
   

  	
  +

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Plus: Interest/Other (From MM/DD/YY to MM/DD/YY)

  	
   

  	
   

  	
  +

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Minus: Other(From MM/DD/YY to MM/DD/YY)

  	
   

  	
   

  	
  -

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
  Revolver
  Balance After Advance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  
	
  Westaff (USA), Inc. has caused this Request to be executed
  by its duly authorized officer as of the date and year first written above.

  	
   

  	
   

  	
   

  	
   

  
	
  Westaff
  (USA), Inc. certifies that the Advance herein requested is for the separate
  accounts of the following Borrowers in the following respective amount by
  11:30 am PST:  Westaff (USA), Inc.

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorizations

  	
   

  	
  Christa Leonard

  	
   

  	
   

  	
   

  	
   

  	
  Phone

  	
   

  	
   

  	
  Treasury
  Fax

  	
   

  
	
    Requested by:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Duly Authorized Signatory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  68411.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Fax to:

  	
   

  	
  Meri
  Yermakov at GE Capital  (312) 463-3854;

  	
  Phone:  (312) 441-7542

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FOR WESTAFF PURPOSES ONLY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Prepared By:

  	
   

  	
   

  	
  Reviewed
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																																			

 

 

Schedule 2/Exhibit 4.1(b)

 

[see attached]

 

 

Westaff
USA,  Inc.

 

PERIOD-END COLLATERAL
REPORT AND BORROWING CERTIFICATE

 

	
   

  	
   

  	
   

  	
   

  	
  Period-Ending:

  	
   

  	
  XXXX

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Report #:

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Report Date:

  	
   

  	
  #VALUE!

  	
   

  

 

REVOLVING
FACILITY

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Consolidated

  	
   

  
	
  ELIGIBLE ACCOUNTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As of:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.) A/R Aging Balance as of the Period End

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
   

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  2.)
  LESS:   Ineligible Accounts Receivable (Per Attached
  Schedule A)

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
  3.) Eligible Accounts Receivable

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
   

  	
   

  	
  $

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REVENUE WEEK

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  From:

  	
   

  	
  To:

  	
   

  	
   

  	
   

  
	
  4.) ADD:   Revenue Week for
  the period to date:

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  #VALUE!

  	
   

  	
  XXXX

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BORROWING BASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.)
  ADD:       85%   (of Line
  3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  #VALUE!

  	
   

  
	
  6.)
  ADD:       50%   (of Line
  4)

  	
   

  	
  Not to exceed $5,000,000

  	
   

  	
   

  	
   

  	
  As of:

  	
   

  	
  $

  	
  #VALUE!

  	
   

  
	
  7.) Borrowing Base as of the period to
  date:

  	
   

  	
  Not to exceed $50,000,000

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BORROWING
  AVAILABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  As of:

  	
   

  	
   

  	
   

  
	
  Index Rate Loan

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  LIBOR One Month

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  LIBOR Two Month

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  —

  	
   

  
	
  LIBOR Three Month

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
   

  	
   

  
	
  Stand-by L/Cs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  Other
  (Specify)        Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  8.) Total Obligations at Period-end

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  As of:

  	
   

  	
   

  	
   

  
	
  9.) Borrowing
  Availability (Line 8 minus Line 9)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  XXXX

  	
   

  	
  $

  	
  #VALUE!

  	
   

  

 

The undersigned represents and warrants,
that as an officer of Westaff (USA), Inc. and not in his or her
individual capacity, as follows:

(A)  The information
provided above and in the accompanying supporting documentation is true,
complete and correct, and

complies fully with the conditions, terms and covenants of
the Multicurrency Credit Agreement dated May 17, 2002, among Westaff USA, Inc.,
(“Westaff USA”), Westaff (CA), Inc., (“WCA”), Westaff Limited Partnership
(“WestLP”, and collectively with Westaff USA and WCA, the “US Borrowers”),
Westaff (U.K.) Limited, as UK Borrower, Westaff Support, Inc., as Term
Borrower, Westaff Inc., as the Parent, Agent, and the Lenders from time to time
party thereto (as may be amended, restated, amended and restated, supplemented,
replaced or otherwise modified from time to time, the “Credit Agreement”).

(B)  Each of the
representations and warranties contained in the Loan Documents is true and
correct as of the date hereof, except where such representation and warranty
may otherwise expressly refer to an earlier date, in which case it is true and
correct of such earlier date.

(C)  The calculations
set forth herein are made in accordance with the Credit Agreement, and do not
include as Eligible Accounts those Accounts which are ineligible pursuant to
the terms of Section 1.6 of the Credit Agreement.

(D)  Since the date of
the last financial statement or certification furnished to the US agent:

(i)  No event or
circumstance has occurred that would have a Material Adverse Effect; and

(ii) No event which is, or with notice or lapse of time or
both would be, a default under the Credit Agreement

 

IN WITNESS WHEREOF, I have signed this Borrowing Base
Certificate as of this XX day of Month, 2004

 

	
   

  	
  Westaff
  USA,  Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
     By: 

  	
  Christa Leonard

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   Name:

  	
  Christa
  Leonard

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  V.P.
  and Treasurer

  	
   

  
						

 

5th Amendment Exh-borrowing certificate

 

 

Westaff USA,  Inc.

SCHEDULE A

SCHEDULE OF INELIGIBLES

FOR THE PERIOD ENDED:

XXXX

 

	
  Ineligible Accounts Receivable

  	
   

  	
  Domestic

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Over 90 days past invoice date

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  50% Cross Aging

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  Credit Balances Over 90 days past invoice
  date

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  Foreign Accounts

  	
   

  	
  $

  	
  —

  	
   

  
	
  Government - Note 1

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  Contra Elimination

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  InterCompany

  	
   

  	
  $

  	
  XXXX

  	
   

  
	
  Datings/Futures

  	
   

  	
  $

  	
  —

  	
   

  
	
  Cash/COD’s

  	
   

  	
  $

  	
  —

  	
   

  
	
  Bankrupt Accounts

  	
   

  	
  $

  	
  —

  	
   

  
	
  Concentration excess

  	
   

  	
  $

  	
  —

  	
   

  
	
  Other (Specify)  

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL ACCOUNTS
  RECEIVABLE INELIGIBLES

  	
   

  	
   

  	
   

  
	
  (To Line #10 of
  Borrowing Certificate)

  	
   

  	
  $

  	
  —

  	
   

  

 

Note
1: Excluded Government accounts include all federal accounts that have not
executed an assignment of claims and all state, county, city and other local
state government in excess of $2,500,000 of the aggregate of all state accounts
that have not executed an assignment of claims.

 

 

Westaff USA Inc.

Detailed AR Reconciliation

For Period XX, FY 2004

 

	
   

  	
   

  	
  XX/XX/XX

  	
   

  	
  Comments

  	
   

  
	
  A/R Balance by
  Category per the Summary Aging

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as GEARpeX-XX.xls

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciling Items

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a)    Period
  X Sales invoiced on XX/XX/XX

  	
   

  	
  XXXX

  	
   

  	
  See faxed support denoted as (a)

  	
   

  
	
  Total Reconciling
  Items

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciled Balance

  	
   

  	
  $

  	
  0

  	
   

  	
  See detail e-mailed as GEARpeX-XX.xls

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A/R Open Amount
  (balance) per the Summary Aging

  	
   

  	
  #VALUE!

  	
   

  	
  Per BBC Template

  	
   

  
	
  Variance

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A/R Beginning
  Borrowing Base Figure

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciling Items

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b)    Revenue
  Week

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as ARRevWeekXXXXXX.xls

  	
   

  
	
  c)    Unapplied
  Cash

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as GEARReconX-XX.xls

  	
   

  
	
  d)    Adjusted
  Accrual Revenue Week

  	
   

  	
  XXXX

  	
   

  	
  See faxed support denoted as (d)

  	
   

  
	
  e)    ”QPX”
  Receivables

  	
   

  	
  XXXX

  	
   

  	
  QPX receivables are trade receivables but
  are included in “Other Current Assets” for accounting purposes

  	
   

  
	
  f)    Other

  	
   

  	
  XXXX

  	
   

  	
  Immaterial

  	
   

  
	
  Total Reconciling
  Items

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciled A/R
  Aging Balance

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Ledger A/R
  Balance - Domestic

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as ARBBCGLX-XX.xls

  	
   

  
	
  Variance

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciling Items

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  g)    Allowance
  for doubtful accounts

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as ARBBCGLX-XX.xls

  	
   

  
	
  h)    Foreign
  Accounts Receivable

  	
   

  	
  XXXX

  	
   

  	
  See detail e-mailed as ARBBCGLX-XX.xls

  	
   

  
	
  Total Recconciling
  Items

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aggregated General
  Ledger A/R Balance - Consolidated

  	
   

  	
  —

  	
   

  	
  See detail e-mailed as ARBBCGLX-XX.xls

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A/R Balance per the
  Financial Statements

  	
   

  	
  XXXX

  	
   

  	
  From Financial Statements provided each period

  	
   

  
	
  Variance

  	
   

  	
  #VALUE!

  	
   

  	
   

  	
   

  

 

 

Westaff USA,
Inc.

 

Consolidated Accounts Receivable
Reconciliation

 

	
  As  of  XX/XX/2004 in $000:

  	
   

  	
  Domestic
  Aging

  	
   

  	
  Domestic
  G/L

  	
   

  	
  Consolidated

  Financials

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Balance per Source Records:

  	
   

  	
  #VALUE!

  	
   

  	
  XXXX

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue Week

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
  Unapplied Cash (DIT)

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
  Adjustments: Accrual Revenue Week

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
  Foreign

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  #VALUE!

  	
   

  
	
  QPX Receivables

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Adjustments

  	
   

  	
   

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reconciled Totals

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  	
  #VALUE!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Variance ineligible:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Variance Between Aging & G/L (if G/L is
  lower)

  	
   

  	
   

  	
   

  	
  $

  	
  —

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]