Document:

EX-10.1

NINTH AMENDMENT TO CREDIT AGREEMENT

THIS NINTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of March 23,
2009 by and among COMSYS SERVICES LLC, a Delaware limited liability company (“COMSYS Services”),
COMSYS INFORMATION TECHNOLOGY SERVICES, INC., a Delaware corporation (“COMSYS IT”), PURE SOLUTIONS,
INC., a California corporation (“Pure Solutions”), PLUM RHINO CONSULTING, LLC, a Delaware limited
liability company and successor in interest to Plum Rhino Consulting, LLC, a Georgia limited
liability company (“Plum Rhino”), PRAEOS TECHNOLOGIES, LLC, a Delaware limited liability company
and successor by merger to Praeos Technologies, Inc., a Georgia corporation (“Praeos”), ASET
INTERNATIONAL SERVICES CORPORATION, a Virginia corporation (“ASET”), TAPFIN LLC, a Delaware limited
liability company, formerly known as TWC Group Consulting, LLC (“TWC Acquisition Sub”; COMSYS
Services, COMSYS IT, Pure Solutions, Plum Rhino, Praeos, ASET and TWC Acquisition Sub are referred
to herein each individually as a “Borrower” and collectively as the “Borrowers”), COMSYS IT
PARTNERS, INC., a Delaware corporation (“Holdings”), PFI LLC, a Delaware limited liability company
(“PFI”), COMSYS IT CANADA, INC., a North Carolina corporation (“COMSYS Canada”), ECONOMETRIX, LLC,
a Delaware limited liability company (“Econometrix”), COMSYS Services, acting in its capacity as
borrowing agent and funds administrator for the Borrowers (in such capacity, the “Funds
Administrator”), the financial institutions from time to time parties thereto (the “Lenders”), GE
BUSINESS FINANCIAL SERVICES INC. (formerly known as Merrill Lynch Business Financial Services
Inc.), as administrative agent (the “Agent”), Sole Bookrunner and Sole Lead Arranger, ING CAPITAL
LLC, as co-documentation agent, ALLIED IRISH BANKS PLC, as co-documentation agent, BMO CAPITAL
MARKETS FINANCING, INC., as co-documentation agent (together with ING Capital LLC and Allied Irish
Banks PLC, the “Co-Documentation Agents”), and GMAC COMMERCIAL FINANCE LLC, as syndication agent
(the “Syndication Agent”).

W I T N E S S E T H:

WHEREAS, the Borrowers, Holdings, PFI, COMSYS Canada, Econometrix, the Agent, the
Co-Documentation Agents, the Syndication Agent and each Lender are parties to that certain Credit
Agreement dated as of December 14, 2005 (as the same has been, hereby is and may hereafter be
further amended, restated, supplemented or otherwise modified and in effect from time to time, the
“Credit Agreement”); and

WHEREAS, the Credit Parties, the Agents and the Lenders desire to amend the Credit Agreement
as 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, as amended by this Amendment.

2. Amendments. Effective as of the Ninth Amendment Effective Date, upon satisfaction
of the conditions precedent set forth in Section 3 hereof, the Credit Agreement is amended as set
forth in this Section 2:

(a) The parties hereto desire to reduce the Revolving Loan Commitment from $160,000,000 to
$110,000,000. Accordingly, in order to evidence the reduction in the Revolving Loan Commitment, the
Commitment Annex affixed to the Credit Agreement as Annex A is deleted in its entirety and a new
Annex A in the form of Exhibit A attached to this Amendment is substituted therefor (the
“New Annex A”). The parties hereto hereby agree that (x) the Revolving Loan Outstandings
on the date hereof are $63,027,522.06 and (y) the outstanding principal balance of the Term Loan as
of the Ninth Amendment Effective Date is $0.00.

(b) Each Lender having a Revolving Loan Commitment Percentage, severally and not jointly,
hereby agrees that the Lenders’ pro rata shares of the Revolving Loan Commitments as of the Ninth
Amendment Effective Date, shall be as set forth on the New Annex A. To the extent necessary to
give effect to the provisions of the preceding sentence, Allied Irish Banks PLC (the “Assigning
Lender”) hereby agrees on the date hereof to sell and to assign to certain of the Lenders having
Revolving Commitment Percentages hereunder (each Lender, in such capacity is referred to herein as
an “Assignee Lender”), without recourse, representation or warranty (except as set forth below),
and each Assignee Lender, severally and not jointly, hereby purchases and assumes from the
Assigning Lender, a percentage interest in the Revolving Loan Commitment and the Revolving Loans in
amounts required to give effect to the Revolving Loan Commitment Percentages on New Annex A. The
Assigning Lender and the Assignee Lenders, severally and not jointly, hereby agree, on the Ninth
Amendment Effective Date, to effect any inter-Lender transfers necessary to cause the Assigning
Lender’s Revolving Loan Commitment Percentage to be reduced to zero and each Assignee Lender to
hold the portion of the Revolving Loan Commitment set forth beside such Lender’s name on New Annex
A. As a result of such assignments and acceptances, the Assigning Lender is absolutely released
from any of such obligations, covenants and agreements, to the extent of its assigned shares of the
Revolving Loan Commitment. Upon the effectiveness of the assignments and acceptances described in
this Section 2(b), the Agent shall thereafter make all payments in respect of the interests
assigned hereby (including payments of principal, interest, fees and other amounts) to the Assignee
Lenders. The Lenders shall make all appropriate adjustments in payment for periods prior to the
effectiveness of the assignment and acceptance described in this Section 2(b) by the Agent or with
respect to the making of this assignment directly between themselves.

(c) Section 1.1. Section 1.1 of the Credit Agreement is hereby amended by substituting
the following definitions of the terms set forth below in lieu of the current version of such
definitions contained in Section 1.1 of the Credit Agreement:

“Commitment Expiry Date” means March 31, 2012.

“Financing Documents” means this Agreement, the First Amendment, the Second
Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth
Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the
Notes, the Security Documents, the Information Certificate, the Fee Letter, any
subordination agreement to be entered into among the Agent, the Borrowers and
Holdings in connection with the Holdings Intercompany Loan, the Assignment of PS
Purchase Agreement, the Collateral Assignment of Plum Rhino Purchase Agreement, the
Collateral Assignment of Praeos Purchase Agreement, the Collateral Assignment of TWC
Purchase Agreement, the Collateral Assignment of ASET Purchase Agreement, any fee
letter between Merrill Lynch and any Borrower relating to the transactions
contemplated hereby, any Swap Contract entered into between any Credit Party and any
Eligible Swap Counterparty, and all other documents, instruments and agreements
contemplated herein or thereby and executed concurrently by a Credit Party with or
in favor of the Agent or the Lenders in connection herewith or at any time and from
time to time hereafter, as any or all of the same may be amended, supplemented,
restated or otherwise modified from time to time.

“LIBOR Margin” means from and after the Ninth Amendment Effective Date, three and
three quarters percent (3.75%) per annum with respect to the Revolving Loans, the
Term Loan and other Obligations.

“Prime Rate Margin” means from and after the Ninth Amendment Effective Date, two and
three quarters percent (2.75%) per annum with respect to the Revolving Loans, the
Term Loan and other Obligations.

“TWC Acquisition Sub” means TAPFIN LLC, a Delaware limited liability company,
formerly known as TWC Group Consulting, LLC.

(d) Section 1.1. Section 1.1 of the Credit Agreement is hereby further amended by
adding thereto the following defined terms and their respective definitions in the correct
alphabetical order:

“ASET Purchase Agreement” means that certain Stock Purchase Agreement dated as of
June 26, 2008 among COMSYS IT, Holdings, Kevin Hendzel, an individual, and Erika N.
Hendzel, an individual, relating to the acquisition of ASET.

“Collateral Assignment of ASET Purchase Agreement” means that certain Collateral
Assignment of Purchase Documents dated as of June 26, 2008 by and among COMSYS IT,
Holdings and the Agent.

“Eighth Amendment” means that certain Eighth Amendment to Credit Agreement dated as
of June 13, 2008 by and among the Borrowers and certain other Credit Parties, the
Agent, the Co-Documentation Agents, the Syndication Agent and the Lenders.

“Ninth Amendment” means that certain Ninth Amendment to Credit Agreement dated as of
the Ninth Amendment Effective Date by and among the Borrowers and certain other
Credit Parties, the Agent, the Co-Documentation Agents, the Syndication Agent and
the Lenders.

“Ninth Amendment Effective Date” means March 23, 2009.

“Permitted Joint Venture” means a limited partnership, corporation or limited
liability company entered into by (or formed by, as the case may be) a Borrower or a
Domestic Wholly-Owned Subsidiary of a Borrower with an unrelated, non-Affiliated
third party on an arm’s length basis to engage in the joint undertaking of business,
provided, that, (x) such business arrangements shall be conducted only through a
legal entity whose liabilities are not (and will not become) by operation of law or
otherwise deemed to be liabilities of such entity’s members, shareholders, partners
or other investors (including, without limitation, the Credit Parties or their
Subsidiaries) and (y) such business shall be in the same line of business as a
Borrower or a Subsidiary of a Borrower, or any business reasonably related thereto.

(e) Section 1.1. Section 1.1 of the Credit Agreement is hereby further amended by
deleting the defined terms “Adjustment Date” and “Pricing Table” and their respective definitions
in their entirety.

(f) Section 2.1(e). The preamble of Section 2.1(e) of the Credit Agreement is hereby
deleted in its entirety and the following is substituted in lieu thereof:

“(e) All Prepayments. Any prepayment of a LIBOR Loan on a day other than
the last day of an Interest Period therefor shall include interest on the principal
amount being repaid and shall be subject to Section 2.3(f)(iv). All prepayments of
a Loan shall be applied first to that portion of such Loan comprised of Prime Rate
Loans and then to that portion of such Loan comprised of LIBOR Loans, in direct
order of Interest Period maturities. All prepayments of the Term Loan shall be
applied pro rata to the remaining installments thereof. Following the payment in
full of the Term Loan, any remaining amounts required by Section 2.1(c)(ii), (iii)
and (iv) to be used to prepay the Term Loan shall instead be applied as a repayment
of the outstanding Revolving Loans (with any excess to be held by the Agent as cash
collateral to be applied to repay future outstanding Revolving Loans as and when
made), pro rata among all Lenders having a Revolving Loan Commitment Percentage.
Notwithstanding anything to the contrary contained in this Section 2.1, each Lender
holding a portion of the Term Loan may elect not to have such Lender’s Pro Rata
Share of the Term Loan prepaid in the case of a mandatory prepayment pursuant clause
(c) of this Section 2.1, by notice to Agent received one (1) Business Day prior to
the date of such prepayment. The amount of any such prepayment which would have
been applied to the Term Loan but for such elections shall be retained by the
Borrowers.”

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

“(iv) Upon repayment in full of the Term Loan, any amounts required by Section
2.1(c)(ii), (iii) and (iv) to be used to prepay the Term Loan shall instead be
applied as a repayment of the outstanding Revolving Loans in accordance with Section
2.1(e).”

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

“(b) Unused Line Fee. From and following the Ninth Amendment Effective
Date, the Borrowers shall pay Agent, for the benefit of all Lenders committed to
make Revolving Loans, in accordance with their respective Pro Rata Shares, an
aggregate fee in an amount equal to (1) (a) the Revolving Loan Commitment less (b)
the average daily balance of the Revolving Loan Outstandings during the preceding
quarter, multiplied by (2) three quarters of one percent (.75%) per annum. Such fee
is to be paid quarterly in arrears on the first day of each calendar quarter.”

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

“(e) Computation of Interest and Related Fees. All interest and fees under
each Financing Document shall be calculated on the basis of a 360-day year for the
actual number of days elapsed. The date of funding of a Prime Rate Loan and the
first day of an Interest Period with respect to a LIBOR Loan shall be included in
the calculation of interest. The date of payment of a Prime Rate Loan and the last
day of an Interest Period with respect to a LIBOR Loan shall be excluded from the
calculation of interest. Interest on all Prime Rate Loans is payable in arrears on
the first day of each month and on the maturity of such Loans, whether by
acceleration or otherwise. Interest on LIBOR Loans shall be payable on the last day
of the applicable Interest Period, unless the Interest Period is greater than three
(3) months, in which case interest will be payable on the last day of each three (3)
month interval. In addition, interest on LIBOR Loans is due on the maturity of such
Loans, whether by acceleration or otherwise.”

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

“(c) (i) together with each delivery of financial statements pursuant to Sections
4.1(a) and 4.1(b), a Compliance Certificate (it being understood that the Credit
Parties shall only be required to complete and deliver the financial covenant
calculations attached to the Compliance Certificate to the extent that the Borrowers
are required to evidence compliance with the financial covenants set forth in
Article VII hereof), (ii) [intentionally omitted], and (iii) together with each
delivery of financial statements pursuant to Sections 4.1(a) and 4.1(b), 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), the financial statements of the Credit Parties delivered to Agent, the
Borrowers’ general ledger and/or the reports required pursuant to Section 4.1(o), in
form and substance, and with such supporting detail and documentation, as may be
reasonably requested by Agent;”

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

“(t) copies of the most recent financial statements of any Permitted Joint
Ventures;”

(l) Section 5.1(r). Section 5.1(r) of the Credit Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

“(r) intercompany Debt arising from loans made by a Borrower to COMSYS Canadian Sub
in an aggregate amount not to exceed $500,000 at any time outstanding, reduced by
the aggregate amount of all Investments not constituting Debt made by a Borrower
pursuant to Section 5.8(m); provided, however, such Debt shall be evidenced by
promissory notes having terms reasonably satisfactory to Agent, the sole originally
executed counterparts of which shall be pledged and delivered to Agent, for the
benefit of Agent and Lenders, as security for the Obligations; and”

(m) Section 5.4(e). Section 5.4(e) of the Credit Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

“(e) dividends or distributions by COMSYS IT to Holdings in an amount not to exceed
$10,000,000 in the aggregate during the period commencing on the Ninth Amendment
Effective Date and continuing through the remaining term of this Agreement, which
are immediately used by Holdings to pay dividends to its stockholders and/or to
repurchase shares of capital stock of Holdings from its stockholders, so long as:

(i) immediately before giving effect thereto, no Default or Event of Default
has occurred and is continuing and no Default or Event of Default would
arise as a result of such Restricted Distribution;

(ii) after giving effect to such Restricted Distribution, the Borrowers
shall have Net Borrowing Availability of not less than $30,000,000
(provided, that, for purposes of determining Net Borrowing Availability
solely with respect to this Section 5.4(e)(ii), the Permanent Reserve shall
not be deducted in the calculation of the Borrowing Base); and

(iii) after giving effect to such Restricted Distribution, the Fixed Charge
Coverage Ratio for the most recent four (4) fiscal quarter period ended for
which financial statements have been delivered hereunder is no less than
1.20 to 1.00;”

(n) Section 5.7(b). Section 5.7(b) of the Credit Agreement is hereby amended by (i)
deleting the “and” at the end of clause (iii), (ii) deleting the period at the end of clause (iv)
thereof and substituting “; and” therefor and (iii) adding new clause (v) thereto immediately
following clause (iv) thereof as follows:

“(v) transfers of property by a Guarantor to a Borrower or by a Borrower to any
other Borrower; provided, the Borrower receiving such property has complied with
Section 4.9.”

(o) Section 5.8. Section 5.8 of the Credit Agreement is hereby amended by (i)
deleting the “and” at the end of clause (l), (ii) deleting the period at the end of clause (m)
thereof and substituting “; and” therefor and (iii) adding new clause (n) thereto immediately
following clause (m) thereof as follows:

“(n) Investments in Permitted Joint Ventures in an aggregate amount with respect to
all Permitted Joint Ventures not to exceed $500,000 at any one time outstanding;
provided, however, that any Investments constituting Debt shall be evidenced by
promissory notes having terms reasonably satisfactory to Agent, the sole originally
executed counterparts of which shall be pledged and delivered to Agent, for the
benefit of Agent and Lenders, as security for the Obligations.”

(p) Section 5.8. The last sentence of Section 5.8 of the Credit Agreement is hereby
deleted in its entirety and the following is substituted in lieu thereof:

“Without limiting the generality of the foregoing, such Credit Party will not, and
will not permit any Subsidiary to, (i) acquire or create any Subsidiary (other than
in connection with a Permitted Acquisition) or (ii) engage in any joint venture or
partnership with any other Person (other than Permitted Joint Ventures).”

(q) Exhibit C to Credit Agreement — Compliance Certificate. Exhibit C to the Credit
Agreement is hereby deleted in its entirety and Exhibit C attached hereto is substituted in lieu
thereof.

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

(a) delivery to the Agent of this Amendment executed by each Credit Party that is a
party hereto, the Agent and the Lenders in form and substance reasonably satisfactory to the
Agent;

(b) delivery to the Agent of an updated Information Certificate executed by each
Borrower, in form and substance reasonably satisfactory to the Agent;

(c) delivery to the Agent of original Third Amended and Substituted Revolving Loan
Notes executed by the Borrowers in favor of each Lender whose Revolving Loan Commitment
Amount shall be reduced as a result of this Amendment, if requested by such Lender;

(d) delivery to Agent of evidence that TWC Group Consulting, LLC has changed its name
to TAPFIN LLC (which such evidence shall include a file stamped Amendment to the Certificate
of Formation certified by the Secretary of State of the State of Delaware);

(e) the Borrowers shall have paid (and the Borrowers hereby covenant and agree to pay)
to the Administrative Agent in immediately available funds, for the benefit of each Lender
that has delivered an executed signature page to this Amendment on or prior to the date
hereof (each a “Signing Lender”), a fee in an amount equal to one and one quarter percent
(1.25%) of the Revolving Loan Commitment Amount held by such Signing Lender as of the Ninth
Amendment Effective Date (after giving effect to this Amendment and the reduction of the
Revolving Loan Commitment provided for herein), which fee shall be non-refundable for any
reason and fully earned and payable as of the date hereof;

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

(g) no Default or Event of Default under the Credit Agreement shall have occurred and
be continuing.

4. Representations and Warranties. Each Credit Party that is a party hereto hereby
represents and warrants to the 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 in all material respects as of the
date hereof, except to the extent that any such representation or warranty (i) relates to a
specific date, in which case such representation and warranty shall be true and correct in
all material respects as of such earlier date or (ii) is qualified by materiality or has
Material Adverse Effect qualifiers, in which case, such representations and warranties shall
be true and correct in all respects;

(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 (other than (i) routine corporate, tax, ERISA,
intellectual property, environmental filings and other filings from time to time necessary
in connection with the conduct of such Credit Party’s business in the ordinary course, and
(ii) recordings and filings in connection with the Liens granted to the Agent under the
Financing Documents) and do not violate, conflict with or cause a breach or a default under
any provision of applicable Law or of the Organizational Documents of any Credit Party or of
any agreement, judgment, injunction, order, decree or other instrument binding upon it,
except for such failures to file, violations, conflicts, breaches or defaults as could not
reasonably be expected to have a Material Adverse Effect;

(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 or will result from the transactions
contemplated herein.

5. No Waiver. Except as expressly set forth herein, 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, the Agent and Lenders reserve all rights,
privileges and remedies under the Financing Documents. Except as amended or consented to 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 and waived 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 THE 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 THE 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, THE 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 AGREE 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, email or similar electronic transmission 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.

11. Reaffirmation. Each of the Credit Parties that is a party hereto, 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, subject to the amendments, consents and waivers set forth herein. The execution of
this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or Lenders
or constitute a waiver of any provision of any of the Financing Documents (except as expressly set
forth herein) or serve to effect a novation of the Obligations.

[remainder of page intentionally left blank;

signature pages follow]

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:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

COMSYS INFORMATION TECHNOLOGY SERVICES, INC., a
Delaware corporation, as a Borrower

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

PURE SOLUTIONS, INC., a Delaware corporation, as a
Borrower

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

PRAEOS TECHNOLOGIES, LLC, a Delaware limited liability
company

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

1

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

BORROWERS (CONT.):

PLUM RHINO CONSULTING, LLC, a Delaware limited
liability company

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

TAPFIN LLC, a Delaware limited liability company,
formerly known as TWC Group Consulting, LLC

	 	 	 
	By:	 	______________________________
	Name:

	 	David L. Kerr

Title: Senior Vice President – Corporate Development

ASET INTERNATIONAL SERVICES CORPORATION, a Virginia
corporation

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

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

OTHER CREDIT PARTIES:

COMSYS IT PARTNERS, INC., a Delaware corporation

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

PFI LLC, a Delaware limited liability company

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

COMSYS IT CANADA, INC., a North Carolina corporation

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

ECONOMETRIX, LLC, a Delaware limited liability company

	 	 	 
	By:

Name:

	 	     

David L. Kerr

Title: Senior Vice President – Corporate Development

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

AGENT AND LENDER:

GE BUSINESS FINANCIAL SERVICES INC. (formerly known
as Merrill Lynch Business Financial Services Inc.),
as Agent and a Lender

	 	 	 
	By:

Name:

	 	     

     

Title: Its Duly Authorized SignatoryIN WITNESS WHEREOF, the parties have executed this
Amendment as of the date set forth above.

LENDERS:

GMAC COMMERCIAL FINANCE LLC, as Syndication Agent and
as a Lender

	 	 	 
	By:

Name:

Title:

	 	     

Thomas Brent

Director

ING CAPITAL LLC, as Co-Documentation Agent and as a
Lender

	 	 	 
	By:

Name:

Title:

	 	     

Daryn K. Venéy

Vice President

ALLIED IRISH BANKS PLC, as Co-Documentation Agent and
as a Lender

	 	 	 
	By:

Name:

Title:

	 	     

     

     
	By:

Name:

Title:

	 	     

     

     

CAPITAL ONE LEVERAGE FINANCE CORP., formerly known as
North Fork Business Capital Corporation, as a Lender

	 	 	 
	By:

Name:

Title:

	 	     

     

     

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

LENDERS (CONT.):

AIB DEBT MANAGEMENT, LIMITED, as a Lender

	 	 	 
	By:

Name:

Title:

	 	     

     

     
	By:

Name:

Title:

	 	     

     

     

BMO CAPITAL MARKETS FINANCING, INC., as a Lender

	 	 	 
	By:

Name:

Title:

	 	     

     

     

2

EXHIBIT A

Annex A

Commitment Annex

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lender

	 	Revolving Loan

Commitment Amount
	 	Revolving Loan

Commitment

Percentage
	 	Term Loan

Commitment Amount
	 	Term Loan

Commitment

Percentage
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GE Business Financial Services Inc.

	 	$	32,931,250.00	 	 	 	29.9375000	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GMAC Commercial Finance LLC

	 	$	27,387,500.00	 	 	 	24.8977273	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ING Capital LLC

	 	$	15,881,250.00	 	 	 	14.4375000	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capital One Leverage Finance Corp.

	 	$	10,000,000.00	 	 	 	9.0909091	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Allied Irish Banks plc

	 	$	0.00	 	 	 	N/A	 	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BMO Capital Markets Financing, Inc.

	 	$	23,800,000.00	 	 	 	21.6363636	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS

	 	$	110,000,000.00	 	 	 	100	%	 	$	0.00	 	 	N/A
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

3United State Securities and Exchange Commission Edgar Filing

Exhibit 4.1

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THIS WARRANT OR SUCH SECURITIES, AS APPLICABLE, MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

 

BAYWOOD INTERNATIONAL, INC.

Warrants for the Purchase

of

Shares of Common Stock, Par Value $0.001 Per Share

No.  W-192

THIS CERTIFIES that, for consideration, the receipt and sufficiency of which are hereby acknowledged, and other value received, Eric Skae (the “Holder”) is entitled to subscribe for, and purchase from, BAYWOOD INTERNATIONAL, INC., a Nevada corporation (the “Company”), upon the terms and conditions set forth herein, at any time or from time to time on or after March 20, 2009 (the “Initial Exercise Date”) until 5:00 P.M. New York City local time on the fifth (5th) anniversary of the Initial Exercise Date (the “Exercise Period”), up to an aggregate of 100,000 shares of common stock, par value $0.001 per share (the “Common Stock”), of the Company.  This Warrant is initially exercisable at a price of $0.85 per share, subject to adjustment as described in this Warrant.  The term “Exercise Price” shall mean, depending on the context, the initial exercise price (as set forth above) or the adjusted exercise price per share.  The Company may, in its sole discretion, reduce the then current Exercise Price to any amount or extend the Exercise Period, at any time. Such modifications to the Exercise Price or Exercise Period may be temporary or permanent. 

As used herein, the term “this Warrant” shall mean and include this Warrant and any Warrant or Warrants hereafter issued as a consequence of the exercise or transfer of this Warrant in whole or in part.  Each share of Common Stock issuable upon the exercise hereof shall be hereinafter referred to as a “Warrant Share”.

1.

(a)

Subject to the terms of this Warrant, this Warrant may be exercised at any time in whole and from time to time in part, at the option of the Holder, on or after the Initial Exercise Date and on or prior to the end of the Exercise Period.  This Warrant shall initially be exercisable in whole or in part for that number of fully paid and 

- 1 -

nonassessable shares of Common Stock as indicated on the first page of this Warrant, for an exercise price per share equal to the Exercise Price, by delivery to the Company at its office at 9380 E. Bahia Dr., Suite A201, Scottsdale, Arizona 85260, or at such other place as is designated in writing by the Company, of:

(i)

a completed Election to Purchase, in the form set forth in Exhibit A, executed by the Holder exercising all or part of the purchase rights represented by this Warrant;

(ii)

this Warrant; and

(iii)

subject to Section 1(c) below, payment of an amount equal to the product of the Exercise Price multiplied by the number of shares of Common Stock being purchased upon such exercise in the form of, at the Holder’s option, (A) a certified or bank cashier’s check payable to the Company, or (B) a wire transfer of funds to an account designated by the Company.

(b)

As used herein:

(i)

“Fair Market Value” of a security shall mean, on any given day, shall mean the average of the closing prices of such security’s sales on all securities exchanges on which such security may at the time be listed on such day, or, if there has been no sales on any such exchange on such  day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on such day such security is not so listed, the average of the representative bid and asked prices quoted on the over-the-counter bulletin board (the “OTCBB”)  as of 4:00 P.M., New York time, or, if on such day such security is not quoted on the OTCBB, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the Pink Sheet, LLC, or any similar successor organization.  If at any time such security is not listed on any securities exchange or quoted on the OTCBB or the over-the-counter market, the “Fair Market Value” shall be as determined by the Board of Directors of the Company in good faith, absent manifest error.  

(c)

Cashless Exercise.  If at any time after the date of the issuance of this Warrant there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised only at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive, without the payment by the Holder of any additional consideration, a certificate for the number of Warrant Shares equal to the number as is computed using the following formula:

X = Y (A-B)

   A 

where 

X =

the number of Warrant Shares to be issued to the Holder pursuant to this Warrant.

- 2 -

Y =

the number of Warrant Shares covered by this Warrant with respect to which the cashless exercise election is made pursuant to this Section 1(c).

A =

the Fair Market Value (as defined above) of one Warrant Share. 

B =

the Exercise Price in effect at the time the cashless exercise election is made pursuant to this Section 1(c).

(d)

Upon the exercise of this Warrant, the Company shall issue and cause promptly to be delivered upon such exercise to, or upon the written order of, the Holder a certificate or certificates for the number of full Warrant Shares to which such Holder shall be entitled, together with cash in lieu of any fraction of a Warrant Share otherwise issuable upon such exercise.  Such certificate or certificates shall be deemed to have been issued, and any person so designated to be the person or persons entitled to receive the Warrant Shares issuable upon exercise of this Warrant shall be deemed to have become a holder of record of such Warrant Shares for all purposes, as of the close of business on the date of the surrender of this Warrant and full payment of the Exercise Price.

(e)

If this Warrant is exercised in respect of less than all of the Warrant Shares evidenced by this Warrant at any time prior to the end of the Exercise Period, a new Warrant evidencing the remaining Warrant Shares shall be issued to the Holder, or its nominee(s), without charge therefor.

2.

Upon each exercise of the Holder’s rights to purchase Warrant Shares, the Holder shall be deemed to be the holder of record of the Warrant Shares, notwithstanding that the transfer books of the Company shall then be closed or certificates representing the Warrant Shares with respect to which this Warrant was exercised shall not then have been actually delivered to the Holder.  

3.

Any Warrants issued upon the transfer or exercise in part of this Warrant shall be numbered and shall be registered in a warrant register (the “Warrant Register”) as they are issued.  This Warrant shall be transferable on the books of the Company only upon delivery thereof duly endorsed by the Holder or by his duly authorized attorney or representative, or accompanied by proper evidence of succession, assignment, or authority to transfer.  In all cases of transfer by an attorney, executor, administrator, guardian, or other legal representative, duly authenticated evidence of his, her, or its authority shall be produced.  Upon any registration of transfer, the Company shall deliver a new Warrant or Warrants to the person entitled thereto.  This Warrant may be exchanged, at the option of the Holder thereof, for another Warrant, or other Warrants of different denominations, of like tenor and representing in the aggregate the right to purchase a like number of Warrant Shares (or portions thereof), upon surrender to the Company or its duly authorized agent.  Notwithstanding the foregoing, the Company shall have no obligation to cause Warrants to be transferred on its books to any person if, in the opinion of counsel to the Company, such transfer does not comply with the provisions of the Securities Act, and the rules and regulations thereunder.

- 3 -

4.

The Company shall pay all federal and state taxes (other than taxes on income of the Holder), documentary taxes, stamp taxes, if any, and other governmental charges that may be imposed upon the issuance or delivery of this Warrant or upon the issuance or delivery of Warrant Shares upon the exercise of this Warrant, provided, however, that the Company shall not be required to pay any taxes payable in connection with any transfer involved in the issuance or delivery of any Warrants or Warrant Shares in a name other than that of the Holder in respect of which such Warrant Shares are issued.  

5.

(a)  The Company shall at all times reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of providing for the exercise of the Warrants, such number of shares of Common Stock as shall, from time to time, be sufficient therefor.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue), without any personal liability attaching to the ownership thereof and will not be issued in violation of any preemptive or similar rights of stockholders.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the trading market upon which the Common Stock may be listed.

(b)

The transfer agent for the Common Stock and every subsequent transfer agent for any of the Company’s securities issuable upon the exercise of this Warrant shall be irrevocably authorized and directed at all times to reserve such number of authorized securities as shall be required for such purpose.  The Company shall keep a copy of this Warrant on file with the transfer agent for the Common Stock and with every subsequent transfer agent for shares of the Company’s securities issuable upon the exercise of this Warrant.  The Company shall supply such transfer agent with duly executed certificates representing the Common Stock or other securities for such purposes.

(c)

The Company shall not by any action including, without limitation, amending its Articles of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant; but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the amount payable therefor upon such exercise immediately prior to such increase in par value, and (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

- 4 -

6.

The Company will make all filings under Federal and state securities laws, that are required in connection with the issuance and delivery of this Warrant, the exercise of this Warrant, and the issuance and delivery of the Warrant Shares issued upon exercise of this Warrant.

7.

The Exercise Price for the Warrants in effect from time to time shall be subject to adjustment as follows: 

(a)

If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company pursuant to this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Any adjustment made pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

(b)

If the Company, at any time while this Warrant is outstanding, shall distribute to all or substantially all holders of Common Stock (and not to the Holder) evidence of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 7(a)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which (i) the denominator shall be the Fair Market Value per share of Common Stock determined as of the record date mentioned above and (ii) the numerator shall be such Fair Market Value per share of Common Stock on such record date less the then per share fair market value at such record date of the portion of such evidence of indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock so distributed applicable to one outstanding share of the Common Stock, which fair market value shall be reduced by the fair market value of consideration, if any, paid to the Company by holders of Common Stock in exchange for such evidence of indebtedness or assets or rights or warrants so distributed, in each case as such Fair Market Value is determined by the Board of Directors of the Company in good faith.   In either case, the adjustments shall be described in a statement provided to the Holder of the portion of evidences of indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock so distributed or such subscription rights applicable to one share of Common Stock.  Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

- 5 -

(c)

If, at any time while this Warrant is outstanding, the Company effects any Change of Control Transaction (as hereinafter defined), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Change of Control Transaction, upon exercise of this Warrant, the number of shares of Common Stock or other capital stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and/or any additional consideration or alternate consideration (collectively, the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event.  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Change of Control Transaction, and, to the extent that the Alternate Consideration is other than an all cash transaction, the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Change of Control Transaction, then the Holder shall, to the extent practical, be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Change of Control Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Change of Control Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Change of Control Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 7(c) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction substantially similar or analogous to a Change of Control Transaction.  

(d)

If the Company, at any time shall offer, sell, grant any option to purchase or offer, sell or grant any right to re-price, or otherwise dispose of or issue, any Common Stock or Common Stock Equivalents (as defined below) entitling any Person to acquire shares of Common Stock, at an effective price per share less than the then Exercise Price (such issuances, individually and collectively, a “Dilutive Issuance”), then the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. 

Such adjustment to the Exercise Price shall be made upon each occurrence of a Dilutive Issuance.  Notwithstanding the foregoing, no adjustment to the Exercise Price shall be made under this Section 7(d) in respect of an Exempt Issuance (as defined below).      

(e)

As used in this Section 7, the following terms have the meanings set forth below:

(i)

“Common Stock Equivalents” means any securities of the Company or the subsidiaries of the Company which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, 

- 6 -

options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

(ii)

 “Exempt Issuance” means the issuance (A) of shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted by the Board of Directors of the Company or a majority of the members of a committee, the majority of which are non-employee directors, established for such purpose, among others; (B) of securities upon the exercise of or conversion of convertible securities, options or warrants issued and outstanding on the date of this Warrant, provided, however, that such securities have not been amended since the date of this Warrant to increase the number of such securities or to decrease the exercise or conversion price of any such securities (other than by the antidilution provisions thereof, if any); (C) of securities issued to consultants or suppliers in exchange for products or services being provided to the Company; (D) of securities issued to Persons with whom the Company enters into acquisition, merger or strategic alliance transactions in connection with such transactions;  and (E) of securities issued to commercial banks in connection with the Company obtaining bank financing. 

(iii)

“Change of Control Transaction” means the occurrence of (A) an acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Securities Exchange Act of 1934, of beneficial ownership, directly or indirectly, through purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions of capital stock of the Company entitling that person to fifty percent (50%) or more of the total voting power of all capital stock of the Company or (B) the consolidation or merger of the Company with or into any other person, any merger of another person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the Company’s properties, business or assets, other than (in the case of this clause (B) only) (1) any transaction (x) that does not result in any reclassification, conversion, exchange or cancellation of outstanding capital stock of the Company and (y) pursuant to which holders of the Company’s capital stock immediately prior to such transaction have the right to exercise, directly or indirectly, fifty percent (50%) or more of the total voting power of all ownership interests or capital stock of the continuing or surviving person immediately after such transaction, or (2) any merger solely for the purpose of changing the Company’s jurisdiction of formation and resulting in a reclassification, conversion or exchange of outstanding capital stock into ownership interests or capital stock of the surviving entity.  

(iv)

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

  (f)

The Company shall not amend its Articles of Incorporation (as amended from time to time), its By-laws or participate in any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action for the purpose of avoiding or seeking to avoid the observance or performance of any of the terms of this Warrant to be observed or performed by the Company, including without limitation this Section 7, but 

- 7 -

shall at all times in good faith assist in carrying out all such action as may be reasonably necessary or appropriate in order to protect the rights of the Investor against dilution or other impairment as provided herein.

(g)

Upon the occurrence of each adjustment or readjustment of the Exercise Price pursuant to this Section 7, the Company at its expense shall, as promptly as reasonably practicable but in any event not later than fifteen (15) business days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property for which this Warrant shall be exercisable and the Exercise Price) and showing in detail the facts upon which such adjustment or readjustment is based.  The Company shall, as promptly as reasonably practicable after the written request at any time of the Holder (but in any event not later than fifteen (15) business days thereafter), furnish or cause to be furnished to the Holder a certificate setting forth the Exercise Price then in effect.

(h)

All calculations under this Section 7 shall be made to the nearest cent. 

(i)

The Company shall not be required upon the exercise of this Warrant to issue any fractional shares, but may pay the value thereof to the Holder in cash on the basis of the Fair Market Value per Warrant Share, as determined pursuant to Section 1(b) above.

(j)

No adjustment in the Exercise Price shall be required unless such adjustment (plus any adjustments not previously made by reason of this subsection (j)) would require an increase or decrease of at least one (1) percent in such price; provided, however, that any adjustments which by reason of this subsection (j) are not required to be made shall be carried forward and taken into account in any subsequent adjustment.  

8.

Unless registered, the Warrant Shares issued on exercise of the Warrants shall be subject to a stop transfer order and the certificate or certificates representing the Warrant Shares shall bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THE SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

- 8 -

9.

The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate, without charge, of like date, tenor and denomination, in lieu of such Warrant or stock certificate.

10.

(a)

The Holder shall not have, solely on account of its status as a holder of a Warrant, any rights of a stockholder of the Company, either at law or in equity, or to any notice of meetings of stockholders or of any other proceedings of the Company, except as provided in this Warrant.

(b)

No provision hereof, in the absence of affirmative action by the Holder to receive Warrant Shares, and no enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of Company, whether such liability is asserted by Company or by creditors of Company.

11.

All notices that are required or permitted hereunder shall be in writing and shall be sufficient if personally delivered, sent by facsimile, or sent by registered or certified mail or Federal Express or other nationally recognized overnight delivery service.  Any notices shall be deemed given upon the earlier of the date when received at, the day when delivered via facsimile or the third day after the date when sent by registered or certified mail or the day after the date when sent by Federal Express to, the address set forth below, unless such address is changed by notice to the other party hereto:

if to the Company:

Baywood International, Inc.

9380 E. Bahia Dr.

Suite A201

Scottsdale, Arizona 85260

Attention:  Chief Executive Officer

Facsimile: (480) 483-2168

   

if to the Holder:  As set forth in the Warrant Register of the Company.

The Company or the Holder by notice to the other party may designate additional or different addresses as shall be furnished in writing by such party.  

12.

The provisions of this Warrant may not be amended, modified or changed except by an instrument in writing signed by each of the Company and the Holder.

13.

All the covenants and provisions of this Warrant by or for the benefit of the Company or the Holder shall be binding upon and shall inure to the benefit of their respective permitted successors and assigns hereunder.

- 9 -

14.

The Company shall not merge or consolidate with or into any other entity unless the entity resulting from such merger or consolidation (if not the Company) shall expressly assume, by supplemental agreement satisfactory in form to the Holder and executed and delivered to the Holder, the due and punctual performance and observance of each and every covenant and condition of this Warrant to be performed and observed by the Company.

15.

 The validity, interpretation and performance of this Warrant shall be governed by the laws of the State of Arizona, as applied to contracts made and performed within such State, without regard to principles of conflicts of law.  The Company irrevocably submits to the exclusive jurisdiction of the courts of the State of Arizona for the purpose of any suit, action, proceeding or judgment relating to or arising out of this letter agreement.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Warrant.  The Company irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  The Company irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  

16.

The provisions hereof have been and are made solely for the benefit of the Company and the Holder, and their respective successors and assigns, and no other person shall acquire or have any right hereunder or by virtue hereof.

17.

The headings in this Warrant are for convenience only and shall not limit or otherwise affect the meaning hereof.

18.

If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such which may be hereafter declared invalid, illegal, void or unenforceable.

19.

This Warrant is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Warrant supersedes all prior agreements and understandings between the parties with respect to such subject matter.

20.

In any action or proceeding brought to enforce any provision of this Warrant, or where any provision hereof is validly asserted as a defense, the prevailing party, as determined by the court, shall be entitled to recover reasonable attorneys’ fees in addition to any other available remedy.

- 10 -

21.

The Company agrees to take such further action and to deliver or cause to be delivered to each other after the date hereof such additional agreements or instruments as any of them may reasonably request for the purpose of carrying out this Warrant and the agreements and transactions contemplated hereby and thereby.

22.

 Each party hereto acknowledges and agrees that irreparable harm, for which there may be no adequate remedy at law and for which the ascertainment of damages would be difficult, would occur in the event any of the provisions of this Warrant were not performed in accordance with its specific terms or were otherwise breached.  Each party hereto accordingly agrees that each other party hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Warrant, or any agreement contemplated hereunder, and to enforce specifically the terms and provisions hereof or thereof in any court of the United States or any state thereof having jurisdiction, in each instance without being required to post bond or other security and in addition to, and without having to prove the inadequacy of, other remedies at law.

[signature page follows]

- 11 -

Dated as of:  March 20, 2009

			
	 
	BAYWOOD INTERNATIONAL, INC.

	 
	 
	 

	 
	 
	 

	 
	By:

	 /s/ Neil Reithinger

	 
	 
	Name: Neil Reithinger

	 
	 
	Title: Chief Financial Officer

- 12 -

EXHIBIT A

ELECTION TO PURCHASE

The undersigned hereby irrevocably elects to exercise Warrants represented by this Warrant and to purchase the shares of Common Stock or other securities issuable upon the exercise of said Warrants, and requests that Certificates for such shares be issued and delivered as follows:

PORTION OF WARRANT BEING EXERCISED:   (check applicable box or fill in number of Warrant Shares):

Entire Warrant   ̈

____________ Warrant Shares

			
	ISSUE TO:

	 
	 

	 
	(Name)

	 

	 
	 
	 

	 
	 
	 

	 
	(Address, Including Zip Code)

	 

	 
	 
	 

	 
	 
	 

	 
	(Social Security or Tax Identification Number)

	 

	 
	 
	 

	DELIVER TO:

	 
	 

	 
	(Name)

	 

	 
	 
	 

	 
	 
	 

	 
	(Address, Including Zip Code)

	 

In payment of the purchase price with respect to this Warrant exercised, the undersigned hereby either (A) tenders payment of $              by (i) certified or bank cashiers check payable to the order of the Company ̈; or (ii) a wire transfer of such funds to an account designated by the Company  ̈  (check applicable box) or (B) hereby provides notice to the Company that the undersigned is exercising this Warrant pursuant to the Cashless Exercise set forth in Section 1(c) of the Warrant.  If the number of Warrant Shares hereby exercised is fewer than all the Warrant Shares represented by this Warrant, the undersigned requests that a new Warrant representing the number of full Warrant Shares not exercised to be issued and delivered as set forth below:

			
	Name of Holder or Assignee:

	 
	 

	 
	(Please Print)

	 

			
	Address:

	 
	 

	 
	 
	 

	 
	 
	 

						
	Signature:

	 
	DATED:

	 
	, 20

	 

(Signature must conform in all respects to name of holder as specified on the fact of this Warrant)

		
	Signature Guaranteed:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]