SEC Contract Filing

Filing Date: 2019-08-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>staf-ex103_6.htm
<DESCRIPTION>EX-10.3
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staf-ex103_6.htm
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<p style="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;">
<p style="text-align:right;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;">Exhibit 10.3</p>&nbsp;</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: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;">THIRD 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 THIRD AMENDMENT TO INTERCREDITOR AGREEMENT (this &#8220;<font style="font-weight:bold;">Amendment</font>&#8221;)&#160;is executed as of August 29, 2019 (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 IV TRUST</font>, a Delaware statutory trust and successor by assignment from Midcap Funding X Trust (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 Term Note Purchaser, Parent, </font>certain of the Parent&#8217;s subsidiaries party thereto and ABL Lenders have entered into a Intercreditor Agreement dated as of September 15, 2017 (as amended by that certain First Amendment to Intercreditor Agreement dated as of August 27, 2018, as amended by that certain Second Amendment to Intercreditor Agreement dated as of February 7, 2019, as amended hereby and as may further be amended, modified, supplemented and/or restated from time to time, 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;">It is p</font>roposed 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 18% Senior Secured Note due December 31, 2019 in the principal amount of $2,538,000 (the &#8220;<font style="font-weight:bold;">New Term Note</font>&#8221;), pursuant to the Term Note Agreement, as amended by that certain Fourth Omnibus Amendment and Rea