Document:

exv10w4

 

Exhibit-10.4

EXECUTION VERSION

CONSENT AND FIRST AMENDMENT TO TERM LOAN CREDIT AGREEMENT

     THIS CONSENT AND FIRST AMENDMENT TO TERM LOAN CREDIT AGREEMENT (this “Amendment”) is entered
into as of March 31, 2006 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”; COMSYS Services, COMSYS IT
and Pure Solutions 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 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”), MERRILL LYNCH CAPITAL, a division
of Merrill Lynch Business Financial Services Inc., as administrative agent (in such capacity, the
“Administrative Agent”), and NEXBANK, SSB, a Texas-chartered savings bank, as collateral agent (in
such capacity, the “Collateral Agent”).

W I T N E S S E T H:

     WHEREAS, the Borrowers, Holdings, PFI, the Administrative Agent, the Collateral Agent and each
Lender are parties to that certain Term Loan Credit Agreement dated as of December 14, 2005 (as the
same may be amended, restated, supplemented or otherwise modified and in effect from time to time,
the “Credit Agreement”);

     WHEREAS, on the Closing Date, COMSYS Services owned two hundred forty eight (248) shares of
the common stock of VTP-CA, Inc., a North Carolina corporation (“VTPCA”);

     WHERAS, the Borrowers have requested that the Administrative Agent, the Collateral Agent and
the Lenders (a) consent to the acquisition (the “Acquisition”) by COMSYS Services of the remainder
of the issued and outstanding capital stock of VTPCA, which shall change its name (the “COMSYS
Canada Name Change”) to COMSYS IT Canada, Inc., a North Carolina corporation (VTPCA, following the
consummation of the Acquisition shall be referred to herein as “COMSYS Canada”) following the
consummation of the Acquisition and (b) amend the Credit Agreement as hereinafter set forth; and

     WHEREAS, the Administrative Agent, the Collateral Agent and the Lenders agree to accommodate
such requests of the Credit Parties, on the terms and subject to the conditions herein set forth.

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

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

     2. Amendments. Effective as of the date of the Acquisition, upon satisfaction of the
conditions precedent set forth in Section 5 hereof, the Credit Agreement is amended as set forth in
this Section 2:

 

 

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

“COMSYS Canada” means, prior to the consummation of the COMSYS Canada Name Change,
VTP-CA, Inc., a North Carolina corporation, and following the consummation of the
COMSYS Canada Name Change, COMSYS IT Canada, Inc., a North Carolina corporation.

“COMSYS Canada Name Change” means the change of the legal name of VTP-CA, Inc. to
COMSYS IT Canada, Inc., which shall be filed with the Secretary of State of the
State of North Carolina after the First Amendment Effective Date.

“First Amendment” means that certain Consent and First Amendment to Term Loan Credit
Agreement dated as of the First Amendment Effective Date by and among the Borrowers
and certain other Credit Parties, the Administrative Agent, the Collateral Agent and
the Lenders.

“First Amendment Effective Date” means March 31, 2006.

     (b) Section 1.1. Section 1.1 of the Credit Agreement is hereby further amended by
substituting the following definition of the term “Credit Party” set forth below in lieu of the
current version of such definition contained in Section 1.1 of the Credit Agreement:

“Credit Party” means Holdings, PFI, each Borrower, COMSYS Canada and each of their
respective Subsidiaries.

     (c) Section 3.4. Section 3.4 of the Credit Agreement is hereby deleted in its entirety
and the following is substituted in lieu thereof:

“Section 3.4 Capitalization.

     The authorized equity securities of each of the Credit Parties as of the Closing
Date is as set forth on the Information Certificate. All issued and outstanding
equity securities of each of the Credit Parties are duly authorized and validly
issued, fully paid, nonassessable, and, solely with respect to the equity securities
of PFI, each Borrower, COMSYS Canada and each of their respective Subsidiaries, free
and clear of all Liens other than those in favor of Collateral Agent for the benefit
of Agents and Lenders and other Liens permitted pursuant to Section 5.2(d) and
Section 5.2(h), and all such equity securities of each Credit Party were issued in
compliance with all applicable state, federal and foreign laws concerning the
issuance of securities. The identity of the holders of the equity securities of each
of the Credit Parties and the percentage of their fully-diluted ownership of the
equity securities of each of the Credit Parties as of the Closing Date is set forth
on the Information Certificate. Holdings owns all of the issued and outstanding
equity securities of COMSYS IT and PFI. COMSYS IT owns all of the issued and
outstanding equity securities of COMSYS Services, Pure

2

 

Solutions and COMSYS Limited.
COMSYS Services owns all of the issued and
outstanding equity securities of COMSYS Canada. No shares of the capital stock
or other equity securities of any Credit Party, other than those described above, are
issued and outstanding. Except as set forth on the Information Certificate, as of
the Closing Date there are no preemptive or other outstanding rights, options,
warrants, conversion rights or similar agreements or understandings for the purchase
or acquisition from any Credit Party of any equity securities of any such entity.”

     (d) Section 5.8(j). Section 5.8(j) of the Credit Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

“Investments of Holdings (to the extent owned by Holdings on the Closing Date) in
the capital stock or other equity securities of (i) Econometrix, Inc., a California
corporation, (ii) AutoHire Development, Inc. and (iii) PFI, provided, in each case,
all of the outstanding capital stock or other equity interests of any such Person
owned by Holdings has been pledged to the Collateral Agent;”

     (e) Section 9.1. Section 9.1(j) of the Credit Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:

“(j) (1) any person or group of persons (within the meaning of the Securities Exchange Act
of 1934) (other than Wachovia Investors, Inc. and its Affiliates) shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 under the Securities Exchange Act of
1934) of fifty percent (50%) or more of the issued and outstanding shares of capital stock
of Holdings having the right to vote for the election of the directors of Holdings under
ordinary circumstances, (2) Holdings shall cease to directly own and control one hundred
percent (100%) of each class of the outstanding equity interests of COMSYS IT and PFI, (3)
COMSYS IT shall cease to directly own and control one hundred percent (100%) of the equity
interests of COMSYS Services, Pure Solutions and COMSYS Limited, (4) COMSYS Services shall
cease to directly own and control one hundred percent (100%) of the equity interests of
COMSYS Canada, (5) each Borrower shall cease to, directly or indirectly, own and control one
hundred percent (100%) of each class of the outstanding equity interests of each Subsidiary
of such Borrower (except, with respect to clauses (2), (3), (4) and (5), to the extent
permitted in Section 5.7(a)), (6) any “Change in Ownership,” “Fundamental Change,” or terms
of similar import occurs under the Holdings Certificate of Designations, or (7) a period of
ninety (90) consecutive days shall have elapsed during which Larry L. Enterline shall cease
to be the chairman of the board, chief executive officer or president of each Credit Party
for any reason unless prior to the expiration of such time, a replacement reasonably
satisfactory to Administrative Agent shall have been appointed and employed, or”

     3. Consent. Effective as of the date hereof, upon satisfaction of the conditions
precedent set forth in Section 5 hereof, and in reliance upon the representations and warranties of
the Credit Parties set forth in the Credit Agreement and in this Amendment, and notwithstanding
anything to the contrary contained in the Credit Agreement or any other Financing Document, the
Agents and the Lenders consent to the Acquisition, the COMSYS Canada Name Change and the
Corresponding First Lien Amendment (as defined below) and acknowledge and agree that

3

 

the
Acquisition shall constitute an Investment permitted under Section 5.8 of the Credit Agreement
(without reliance upon Section 5.8(l) of the Credit Agreement); provided, that the
foregoing consents are conditioned on the Borrowers’ delivery to Administrative Agent of the
following documents no later than September 30, 2006: (i) a guaranty by COMSYS Canada (the
“Subsidiary Guaranty”) whereby COMSYS Canada shall guaranty all Obligations of the Borrowers under
the Credit Agreement, (ii) a Joinder to Credit Agreement and Information Certificate whereby COMSYS
Canada shall become a “Credit Party” under the Credit Agreement, (iii) a pledge amendment whereby
COMSYS Services shall pledge one hundred percent of the capital stock of COMSYS Canada to the
Collateral Agent, for the benefit of the Agents and the Lenders, together with all stock powers,
proxies and other documents as the Administrative Agent reasonably shall request, pursuant to which
the Collateral Agent shall have received, for the benefit of the Agents and the Lenders, a second
priority security interest in all of the issued and outstanding capital stock of COMSYS Canada,
(iv) a security agreement executed by COMSYS Canada securing all of its obligations under the
Subsidiary Guaranty, (v) a certificate of the Secretary of COMSYS Canada certifying: (A) the names
and true signatures of the officers of COMSYS Canada authorized to execute, deliver and perform all
obligations under the Financing Documents to which it is a party; (B) copies of the resolutions of
the board of directors or other governing body of COMSYS Canada approving and authorizing the
execution, delivery and performance, as applicable, of all other documents, instruments or
agreements to be executed or delivered in connection herewith; and (C) the Organizational Documents
of COMSYS Canada which, if applicable, shall be certified by the Secretary of State of North
Carolina as of a recent date, and (vi) all other agreements, instruments and documents as the Agent
may reasonably request, and the Borrowers shall take such additional actions as the Administrative
Agent may reasonably require in order (A) to carry out more effectively the purposes of the Credit
Agreement and the other Financing Documents, (B) to subject to the Liens created by any of the
Security Documents any of the properties, rights or interests covered by any of the Security
Documents, (C) to perfect and maintain the validity, effectiveness and priority of any of the
Security Documents and the Liens intended to be created thereby, and (D) to better assure, convey,
grant, assign, transfer, preserve, protect and confirm to the Agents and Lenders the rights granted
or intended to be granted to the Agents and the Lenders under any Financing Document or under any
other document executed in connection therewith.

     4. Waiver of Mandatory Prepayments in Connection with the unused portion of the 2006
Equity Issuance. Effective as of the date hereof, upon satisfaction of the conditions
precedent set forth in Section 5 hereof and in reliance upon the representations and warranties of
the Credit Parties set forth in the Credit Agreement, the other Financing Documents and in this
Amendment, and notwithstanding anything to the contrary contained in the Credit Agreement or any
other Financing Document (including, without limitation, Section 2.1(c)(iii)(D) and Section 2.1(e)
of the Credit Agreement), the Agents and the Lenders hereby agree to waive the applicability of
Sections 2.1(c)(iii)(D) and 2.1(e) of the Credit Agreement solely with respect to the 2006 Equity
Issuance Available Amount, which such amount constitutes the unused portion of the Net Cash
Proceeds received in connection with the 2006 Equity Issuance.

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

4

 

	 	(a)	 	delivery to the Administrative Agent of this Amendment executed
by each Credit Party that is a party hereto, the Agents and the Lenders in form
and substance reasonably satisfactory to the Administrative Agent;
	 
	 	(b)	 	the delivery to Administrative Agent of a copy of the fully
executed consent and amendment to the First Lien Debt Documents regarding the
substance of this Amendment (which shall include, without limitation, the First
Lien Lenders’ consent to the transactions contemplated by Section 3 of this
Amendment) (the “Corresponding First Lien Amendment”), in form and substance
reasonably acceptable to the Administrative Agent, and evidence that all
conditions contained in such consent and amendment (other than the
effectiveness of this Amendment) have been satisfied;
	 
	 	(c)	 	the truth and accuracy of the representations and warranties
contained in Section 6 hereof; and
	 
	 	(d)	 	no Default or Event of Default under the Credit Agreement, as
amended hereby, shall have occurred and be continuing.

     6. Representations and Warranties. Each Credit Party that is a party hereto hereby
represents and warrants to the Agents 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 Collateral 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 regulation 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;

5

 

	 	(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)	 	after giving effect to this Amendment, no Default or Event of
Default exists or will result from the consummation of the Acquisition.

     7. 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 Agents 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.

     8. 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.

     9. 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.

     10. 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 ADMINISTRATIVE 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.

6

 

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

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

     13. 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 Agents 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]

7

 

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

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

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

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

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President – Corporate Development
	 
	 	 	 	 
	 	 	PURE SOLUTIONS, INC., a Delaware corporation, as a
Borrower
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President – Corporate Development

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

     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:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President – Corporate Development
	 
	 	 	 	 
	 	 	PFI LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President – Corporate Development

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:
	 
	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL, a division of Merrill Lynch
Business Financial Services Inc.,
as Administrative Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott E. Gast
	 

	 	 	 	 
	 

	 	Name:
	 	Scott E. Gast
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	COLLATERAL AGENT:
	 
	 	 	 	 
	 	 	NEXBANK, SSB, a Texas-chartered savings bank, as

Collateral Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Ory
	 

	 	 	 	 
	 

	 	Name:
	 	John Ory
	 

	 	Title:
	 	Vice President

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 	 	 	 	 
	 	 	RESTORATION FUNDING CLO, LTD., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General
Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	LIBERTY CLO, LTD., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manger
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	LIBERTY MUTUAL INSURANCE COMPANY, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Its Investment Manager, Highland Capital Management, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Its General Partner, Strand Advisors, Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 	 	 
	 	 	JASPER CLO, LTD., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General
Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND OFFSHORE PARTNERS, L.P., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	LOAN FUNDING VII LLC, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 	 	 
	 	 	HIGHLAND LOAN FUNDING V LTD., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General
Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	LOAN FUNDING IV LLC, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND LEGACY LIMITED, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 	 	 
	 	 	HIGHLAND FLOATING RATE LIMITED LIABILITY COMPANY, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its Investment Advisor
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Joe Dougherty
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Joe Dougherty
	 

	 	 	 	 	 	Title:
	 	Senior Vice President

	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND FLOATING RATE ADVANTAGE FUND, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its Investment Manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Joe Dougherty
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Joe Dougherty
	 

	 	 	 	 	 	Title:
	 	Senior Vice President

	 	 	 	 	 	 	 	 	 
	 	 	GLENEAGLES CLO, LTD., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 	 	 
	 	 	ELF FUNDING TRUST I, as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Strand Advisors, Inc., Its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Brian Lohrding
	 

	 	 	 	 	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 
	 	 	ORIX FINANCE CORP., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christopher L. Smith
	 

	 	 	 	 
	 

	 	Name:
	 	Christopher L. Smith
	 

	 	Title:
	 	Authorized Representative

	 	 	 	 	 
	 	 	D.E. SHAW LAMINAR PORTFOLIOS, L.L.C., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Posner
	 

	 	 	 	 
	 

	 	Name:
	 	Daniel Posner
	 

	 	Title:
	 	Authorized Signatory

	 	 	 	 	 
	 	 	JZ EQUITY PARTNERS PLC, as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David W. Zalazusek
	 

	 	 	 	 
	 

	 	Name:
	 	David W. Zalazusek
	 

	 	Title:
	 	Investment Advisor

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL SOLUTIONS OFFSHORE FUND FINANCING,
as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	 	 	Title:
	 	Director — Bank Debt

	 	 	 	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL SOLUTIONS FUND FINANCING, as a
Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	 	 	Title:
	 	Director — Bank Debt

	 	 	 	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL OPPORTUNITIES, L.P., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	 	 	Title:
	 	Director — Bank Debt

Consent and First Amendment to Term Loan Credit Agreement

(COMSYS)exv10w5

 

Exhibit-10.5

CONSENT, WAIVER AND SECOND AMENDMENT TO 

TERM LOAN CREDIT AGREEMENT

     THIS CONSENT, WAIVER AND SECOND AMENDMENT TO TERM LOAN CREDIT AGREEMENT (this “Amendment”) is
entered into as of September 15, 2006 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”; COMSYS
Services, COMSYS IT and Pure Solutions 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”), 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”), MERRILL LYNCH CAPITAL, a division
of Merrill Lynch Business Financial Services Inc., as administrative agent (in such capacity, the
“Administrative Agent”), and NEXBANK, SSB, a Texas-chartered savings bank, as collateral agent (in
such capacity, the “Collateral Agent”).

W I T N E S S E T H:

     WHEREAS, the Borrowers, Holdings, PFI, COMSYS Canada, the Administrative Agent, the Collateral
Agent and each Lender are parties to that certain Term Loan Credit Agreement dated as of December
14, 2005 (as the same has been and may further be amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Credit Agreement”);

     WHEREAS, the Borrowers have (a) informed the Lenders that the Borrowers have requested that
the First Lien Lenders increase the First Lien Loans under the First Lien Credit Agreement, with
the proceeds of such increase to be used by Borrowers on the date hereof to prepay a portion of the
outstanding principal amount of the Second Lien Term Loan in an amount equal to $70,000,000 plus
all accrued and unpaid interest on such prepaid principal and any applicable prepayment premiums
associated with such prepayment (the “Second Lien Term Loan Prepayment”), (b) requested that the
Agents and Lenders consent to the Second Lien Term Loan Prepayment and (c) requested that the
Agents and Lenders amend the Credit Agreement in certain other respects; and

     WHEREAS, the Administrative Agent, the Collateral Agent and the Lenders agree to accommodate
such requests of the Credit Parties, on the terms and subject to the conditions herein set forth.

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

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

 

 

     2. Amendments. Effective as of the date hereof, upon satisfaction of the conditions
precedent set forth in Section 4 hereof, the Credit Agreement is amended as set forth in this
Section 2:

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

“Second Amendment” means that certain Consent, Waiver and Second Amendment to Term
Loan Credit Agreement dated as of Second Amendment Effective Date by and among the
Borrowers and certain other Credit Parties, the Administrative Agent, the Collateral
Agent and the Lenders.

“Second Amendment Effective Date” means September 15, 2006.

“Second Lien Term Loan Prepayment” means the prepayment by the Borrowers of a
portion of the outstanding principal amount of the Second Lien Term Loan in an
amount equal to $70,000,000 plus all accrued and unpaid interest on such prepaid
principal and any applicable prepayment premiums associated with such prepayment,
which such prepayment shall be paid on the Second Amendment Effective Date solely
with the proceeds of the First Lien Loans being made to the Borrowers on the Second
Amendment Effective Date.

     (b) Section 1.1. Section 1.1 of the Credit Agreement is hereby further amended by
substituting the definition of the term “Financing Documents” as set forth below in lieu of the
current version of such definition contained in Section 1.1 of the Credit Agreement:

“Financing Documents” means this Agreement, the First Amendment, the Second
Amendment, the Second Lien Term Notes, the Security Documents, the Information
Certificate, the Fee Letter, the Second Lien Intercreditor Agreement, any
subordination agreement to be entered into among an Agent, the Borrowers and
Holdings in connection with the Holdings Intercompany Loan, the Assignment of PS
Purchase Agreement, any fee letter between an Agent and any Borrower relating to the
transactions contemplated hereby and all other documents, instruments and agreements
contemplated herein or thereby and executed concurrently by a Credit Party with or
in favor of an 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.

     (c) Section 1.1. The definition of “Permitted Acquisition” contained in Section 1.1
of the Credit Agreement is hereby amended by substituting new clause (12) set forth below in lieu
of the current version of clause (12) contained in the definition of Permitted Acquisition:

“the total consideration paid or payable (including all transaction costs, all Debt,
liabilities and Contingent Obligations incurred or assumed and, with respect to any
Earnout or comparable payment obligation in connection therewith, the aggregate
amount reasonably expected to be paid by the Borrowers in connection

2

 

with such Earnout, as determined by the Borrowers in their reasonable business
judgment, whether or not reflected on a consolidated balance sheet of the Borrowers
and Target) for all acquisitions consummated after the Second Amendment Effective
Date shall not exceed $10,000,000 in the aggregate for all such acquisitions.”

     (d) Section 2.1(c)(i). Section 2.1(c)(i) of the Credit Agreement is hereby deleted in
its entirety and the following is substituted in lieu thereof:

“(i) commencing with the Fiscal Year following the Fiscal Year in which the First
Lien Term Loan has been paid in full in cash (but, in any event, no earlier than the
Fiscal Year ending closest to December 31, 2007), and for so long as any portion of
the Second Lien Term Loan remains outstanding, on the ninety-fifth (95th) day
following the last day of each Fiscal Year, an amount equal to twenty five percent
(25%) of Excess Cash Flow, provided, that (i) until the Discharge of all First Lien
Debt, such prepayment shall only be required to be made if the Net Borrowing
Availability plus Available Cash, immediately before and immediately after giving
effect thereto, is greater than or equal to $20,000,000 (as such Net Borrowing
Availability is determined by reference to the most recent Borrowing Base
Certificate delivered pursuant to this Agreement) and (ii) if the Total Debt to
Adjusted EBITDA Ratio calculated as of the last day of any Fiscal Year is less than
2.00 to 1.00 for such Fiscal Year, then no prepayment shall be required pursuant to
this Section 2.1(c)(i) with respect to such Fiscal Year (in each such case, Total
Debt to Adjusted EBITDA Ratio shall be determined by reference to the respective
Compliance Certificate absent demonstrable error);”

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

“(d) Optional Prepayments. Following the Discharge of all First Lien Debt
or, prior to the Discharge of all First Lien Debt, if consented to by the First Lien
Agent and the requisite number of First Lien Lenders, and subject to the provisions
of Section 2.1(e), the Borrowers may from time to time, on at least one (1) Business
Day’s prior written notice to the Administrative Agent specifying the date and
amount of such prepayment, prepay the Second Lien Term Loan in whole or in part. No
payment pursuant to this Section 2.1(d) shall (except as reflected in any
determination of Excess Cash Flow), reduce the amount of any payment required by
Section 2.1(c).”

     (f) Compliance Certificate. Notwithstanding anything to the contrary contained in
Schedule 2 to Exhibit B to the Compliance Certificate, solely for purposes of calculating EBITDA,
the calculation of EBITDA contained therein is hereby amended to include the following addback:

“Severance costs accrued during the period commencing on January 1, 2006 through and
including March 31, 2006, solely to the extent (i) all add backs to EBITDA in
respect of such costs do not exceed $1,900,000 in the aggregate

3

 

during the term of the Credit Agreement and (ii) such costs are deducted in the
determination of net income for the Defined Period”

     (g) Compliance Certificate. The calculation of EBITDA set forth on Schedule 2 to
Exhibit B to the Compliance Certificate is hereby further amended by deleting the addback in
respect of Sarbanes-Oxley compliance costs during the Fiscal Year ending closest to December 31,
2005 in its entirety and including the following addback in lieu thereof:

“Costs incurred during the Fiscal Year ending closest to December 31, 2005 and/or
during the fiscal quarter ending closest to March 31, 2006 by Holdings and its
Subsidiaries in connection with required Sarbanes-Oxley compliance, solely to the
extent (i) such costs are in excess of $650,000, (ii) all add backs to EBITDA in
respect of such costs do not exceed $1,350,000 in the aggregate during the term of
the Credit Agreement and (iii) such costs are deducted in the determination of net
income for the Defined Period”

     3. Consent to Second Lien Term Loan Prepayment on the Second Amendment Effective Date.
Effective as of the date hereof, subject to the conditions set forth below in this clause (a) of
Section 3, upon satisfaction of the conditions precedent set forth in Section 4 hereof, and in
reliance upon the representations and warranties of the Credit Parties set forth in the Credit
Agreement, the other Financing Documents and in this Amendment, and notwithstanding anything to the
contrary contained in the Credit Agreement or any other Financing Document (including, without
limitation, Section 2.1(d) and Section 5.6 of the Credit Agreement), the Agents and the Lenders
hereby consent to the Second Lien Term Loan Prepayment and the Corresponding First Lien Amendment
(as defined below), provided that the effectiveness of such consent is subject to the following
conditions: (i) the Second Lien Term Loan Prepayment is made on the date hereof solely with
proceeds of the First Lien Loans, (ii) all First Lien Lenders shall have consented to the Second
Lien Term Loan Prepayment and (iii) the Borrowers shall pay the prepayment premium required to be
paid pursuant to Section 2.1(g) of the Credit Agreement in connection with the Second Lien Term
Loan Prepayment.

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

	 	(a)	 	delivery to the Administrative Agent of the following
documents, each duly authorized and executed and in form and substance
reasonably satisfactory to the Administrative Agent:

	 	(i)	 	this Amendment executed by each Credit Party
that is a party hereto, the Agents and the Lenders;
	 
	 	(ii)	 	and all documents, agreements and instruments
required to be delivered pursuant to Section 3 of the First Amendment;
	 
	 	(iii)	 	a fee letter executed by the Borrowers in
favor of the Administrative Agent; and

4

 

	 	(iv)	 	such evidence of the authority of the Credit
Parties to execute and deliver this Amendment and all other Financing
Documents delivered in connection herewith as the Administrative Agent
may require, including but not limited to a copy of resolutions duly
adopted by the board of directors (or other governing authority) of
each such Person, authorizing the execution by each such Person of this
Amendment and the other agreements, documents and instruments to be
executed by each such Person pursuant to this Amendment, certified as
complete and correct by the corporate secretary or similar officer of
each such Person; and

	 	(b)	 	the delivery to Administrative Agent of a copy of the fully
executed consent and amendment to the First Lien Debt Documents regarding the
substance of this Amendment (which shall include, without limitation, the First
Lien Lenders’ consent to the transactions contemplated by Section 3 of this
Amendment) (the “Corresponding First Lien Amendment”), in form and substance
reasonably acceptable to the Administrative Agent, and evidence that all
conditions contained in such consent and amendment (other than the
effectiveness of this Amendment) have been satisfied;
	 
	 	(c)	 	the Borrowers shall have delivered (and the Borrowers hereby
covenant and agree to pay) to the Agent for the ratable benefit of the Lenders,
a non-refundable closing fee in the aggregate amount of $37,500.00, which fee
shall be fully earned and payable as of the date hereof;
	 
	 	(d)	 	the delivery to the Administrative Agent of a fully-executed
original of the Consent, First Amendment to and Reaffirmation of Intercreditor
and Lien Subordination Agreement executed by the Administrative Agent, the
Collateral Agent, the Lenders, the First Lien Agent, the Borrowers and certain
other Credit Parties, in form and substance reasonably satisfactory to the
Administrative Agent;
	 
	 	(e)	 	the truth and accuracy of the representations and warranties
contained in Section 5 hereof; and
	 
	 	(f)	 	no Default or Event of Default under the Credit Agreement, as
amended hereby, shall have occurred and be continuing.

     5. Representations and Warranties. Each Credit Party that is a party hereto hereby
represents and warrants to the Agents 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

5

 

	 	 	 	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 Collateral 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 regulation 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)	 	after giving effect to this Amendment, no Default or Event of
Default exists.

     6. 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 Agents 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.

     7. 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.

     8. 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.

6

 

     9. 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 ADMINISTRATIVE 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.

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

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

     12. 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

7

 

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
Agents 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]

8

 

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

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	COMSYS SERVICES LLC, a Delaware limited liability

company, as the Funds Administrator and as a Borrower
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development
	 
	 	 	 	 
	 	 	COMSYS INFORMATION TECHNOLOGY SERVICES, INC., a

Delaware corporation, as a Borrower
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development
	 
	 	 	 	 
	 	 	PURE SOLUTIONS, INC., a Delaware corporation, as a

Borrower
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

     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:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development
	 
	 	 	 	 
	 	 	PFI LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development
	 
	 	 	 	 
	 	 	COMSYS IT CANADA, INC., a North Carolina corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David L. Kerr
	 

	 	 	 	 
	 

	 	Name:
	 	David L. Kerr
	 

	 	Title:
	 	Senior Vice President — Corporate Development

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:
	 
	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL, a division of Merrill Lynch

Business Financial Services Inc.,
as Administrative Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott E. Gast
	 

	 	 	 	 
	 

	 	Name:
	 	Scott E. Gast
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	COLLATERAL AGENT:
	 
	 	 	 	 
	 	 	NEXBANK, SSB, a Texas-chartered savings bank, 
as
Collateral Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Ory
	 

	 	 	 	 
	 

	 	Name:
	 	John Ory
	 

	 	Title:
	 	Vice President

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 	 	 
	 	 	RESTORATION FUNDING CLO, LTD., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
	 

	 	 	 	Management, L.P.

	 	 	 	 	 	 	 
	 	 	LIBERTY CLO, LTD., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
	 

	 	 	 	Management, L.P.

	 	 	 	 	 	 	 
	 	 	LIBERTY MUTUAL INSURANCE COMPANY, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Its Investment Manager, Highland Capital
Management, L.P.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Its General Partner, Strand Advisors,
Inc.

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 
	 	 	JASPER CLO, LTD., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 
	 	 	HIGHLAND OFFSHORE PARTNERS, L.P., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 
	 	 	LOAN FUNDING VII LLC, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P. As Collateral
Manger
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 
	 	 	HIGHLAND LOAN FUNDING V LTD., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 
	 	 	LOAN FUNDING IV LLC, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 	 	 
	 	 	HIGHLAND LEGACY LIMITED, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 
	 	 	HIGHLAND FLOATING RATE LIMITED LIABILITY COMPANY, as

a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its Investment
Advisor

	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Dougherty
	 

	 	 	 	 
	 

	 	Name:
	 	Joe Dougherty
	 

	 	Title:
	 	Senior Vice President

	 	 	 	 	 	 	 
	 	 	HIGHLAND FLOATING RATE ADVANTAGE FUND, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its Investment
Manager

	 	 	 	 	 
	 

	 	By:
	 	/s/ Joe Dougherty
	 

	 	 	 	 
	 

	 	Name:
	 	Joe Dougherty
	 

	 	Title:
	 	Senior Vice President

	 	 	 	 	 	 	 
	 	 	GLENEAGLES CLO, LTD., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., as Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 
	 	 	ELF FUNDING TRUST I, as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Capital Management, L.P., As Collateral
Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Strand Advisors, Inc., Its General
Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Lohrding
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Lohrding
	 

	 	Title:
	 	Treasurer, Strand Advisors, Inc.,
	 

	 	 	 	General Partner of Highland Capital
Management, L.P.

	 	 	 	 	 
	 	 	ORIX FINANCE CORP., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christopher L. Smith
	 

	 	 	 	 
	 

	 	Name:
	 	Christopher L. Smith
	 

	 	Title:
	 	Authorized Representative
	 
	 	 	 	 
	 	 	D.E. SHAW LAMINAR PORTFOLIOS, L.L.C., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Posner
	 

	 	 	 	 
	 

	 	Name:
	 	Daniel Posner
	 

	 	Title:
	 	Authorized Signatory
	 
	 	 	 	 
	 	 	JZ EQUITY PARTNERS PLC, as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David W. Zalazusek
	 

	 	 	 	 
	 

	 	Name:
	 	David W. Zalazusek
	 

	 	Title:
	 	Investment Advisor

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

 

 

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

	 	 	 	 	 	 	 
	 	 	LENDERS (CONT.):
	 
	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL SOLUTIONS OFFSHORE FUND FINANCING,

as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	Title:
	 	Director — Bank Debt

	 	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL SOLUTIONS FUND FINANCING, as a

Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	Title:
	 	Director — Bank Debt
	 
	 	 	 	 	 	 
	 	 	GOLDENTREE CAPITAL OPPORTUNITIES, L.P., as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	GoldenTree Asset Management, L.P.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Karen Weber
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Karen Weber
	 

	 	 	 	Title:
	 	Director — Bank Debt

Consent, Waiver and Second Amendment to Term Loan Credit Agreement

(COMSYS)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]