SEC Contract Filing

Filing Date: 2018-11-13

Document Content:
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>6
<FILENAME>staf-ex106_221.htm
<DESCRIPTION>EX-10.6
<TEXT>
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staf-ex106_221.htm
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">Exhibit 10.6</font></p>
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:bold;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">FIRST AMENDMENT TO INTERCREDITOR AGREEMENT </font></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:bold;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">THIS FIRST AMENDMENT TO INTERCREDITOR AGREEMENT (this &#8220;<font style="font-weight:bold;">Amendment</font>&#8221;)&#160;is executed as of August 27, 2018 (the &#8220;<font style="font-weight:bold;">Effective Date</font>&#8221;), by and among <font style="font-weight:bold;">JACKSON INVESTMENT GROUP, LLC</font>, a Georgia limited liability company, as purchaser and holder of the Term Note and as secured party under the Term Debt Documents (&#8220;<font style="font-weight:bold;">Term Note Purchaser</font>&#8221;), <font style="font-weight:bold;">STAFFING 360 SOLUTIONS, INC.,</font> a Delaware corporation (&#8220;<font style="font-weight:bold;">Parent</font>&#8221;), certain of the Parent&#8217;s subsidiaries party hereto, and <font style="font-weight:bold;">MIDCAP FUNDING X TRUST</font>, a Delaware statutory trust and successor by assignment from MidCap Financial Trust, as Agent for the financial institutions or other entities from time to time parties to the ABL Loan Agreement&nbsp;&nbsp;(acting in such capacity, &#8220;<font style="font-weight:bold;">Agent</font>&#8221;), and as a &#8220;Lender&#8221; under the ABL Loan Agreement, or such then present holder or holders of the ABL Loans as may from time to time exist (as the &#8220;Lenders&#8221; under the ABL Loan Agreement; collectively with the Agent, the &#8220;<font style="font-weight:bold;">ABL Lenders</font>&#8221;).&nbsp;&nbsp;Reference in this Amendment to &#8220;Term Note Purchaser&#8221;, &#8220;Term Note Purchasers&#8221;, &#8220;each Term Note Purchaser&#8221; or otherwise with respect to any one or more of the Term Note Purchasers shall mean each and every person included from time to time in the term &#8220;Term Note Purchaser&#8221; and any one or more of the Term Note Purchasers, jointly and severally, unless a specific Term Note Purchaser is expressly identified.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;color:#auto;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">RECITALS</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">A.<font style="margin-left:36pt;">The </font>Term Note Purchaser, Parent, certain of the Parent&#8217;s subsidiaries party thereto and ABL Lenders have entered into a Intercreditor Agreement dated as of September 15, 2017 (the &#8220;<font style="font-weight:bold;">Intercreditor Agreement</font>&#8221;), under the terms of which the ABL Lenders and Term Note Purchaser set forth the relative rights and priorities of ABL Lenders and Term Note Purchaser under the ABL Loan Documents and the Term Debt Documents in the Common Collateral.&nbsp;&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">B.<font style="margin-left:36pt;"></font>It is proposed that the Term Note Purchaser amend the Term Note Agreement to increase its senior debt secured investment in Parent on the date hereof by issuance and sale by Parent to Term Note Purchaser of a new 12% Senior Secured Note due September 15, 2020 in the principal amount of $8,427,794 (the &#8220;New Term Note&#8221;), pursuant to the Term Note Agreement, as amended by that certain First Omnibus Amendment, Joinder and Reaffirmation Agreement dated on or about the date hereof&nbsp;&nbsp;to Amended and Restated Note and Warrant Purchase Agreement in the form attached hereto as Exhibit A (the &#8220;First Amendment to Term Note Agreement&#8221;) so that the aggregate outstanding principal amount of such investment after giving effect to the First Amendment to Term Note Agreement is $48,427,794.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: