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Exhibit 10.78
OUTSOURCE INTERNATIONAL, INC.
FOURTEENTH AMENDMENT
TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
This Fourteenth Amendment (this "Fourteenth Amendment"), dated as of
August 2, 2000, among (a) OUTSOURCE INTERNATIONAL, INC. (the "Borrower"), (b)
CAPITAL STAFFING FUND, INC.; (c) OUTSOURCE FRANCHISING, INC.; (d) SYNADYNE I,
INC.; (e) SYNADYNE II, INC.; (f) SYNADYNE III, INC.; (g) SYNADYNE IV, INC.; (h)
SYNADYNE V, INC.; (i) EMPLOYEES INSURANCE SERVICES, INC.; (j) OUTSOURCE
INTERNATIONAL OF AMERICA, INC.; (k) MASS STAFF, INC.; (l) STAFF ALL, INC.; (m)
OUTSOURCE OF NEVADA, INC.; (n) EMPLOYMENT CONSULTANTS, INC.; (o) X-TRA HELP,
INC.; (p) CO-STAFF, INC.; (q) GUARDIAN EMPLOYER EAST, LLC; (r) GUARDIAN EMPLOYER
WEST, LLC; (s) each of the banks party to the Credit Agreement hereinafter
referred to (collectively, the "Banks") and (t) FLEET NATIONAL BANK (f/k/a
BankBoston, N.A.), as agent for the Banks (the "Agent"), pursuant to that
certain Third Amended and Restated Credit Agreement (as amended, the "Credit
Agreement"), dated as of July 27, 1998, among the Borrower, the Banks and the
Agent. Capitalized terms used herein and which are not otherwise defined shall
have the respective meanings ascribed thereto in the Credit Agreement.
WHEREAS, (i) the Borrower and (ii) each Subsidiary of the Borrower
party to a Subsidiary Guarantee and whose name appears on the signature page
hereof (a "Guarantor") have requested that the Banks and the Agent agree to
amend the terms of the Credit Agreement in certain respects; and
WHEREAS, the Banks and the Agent are willing to amend the terms of the
Credit Agreement in such respects, upon the terms and subject to the conditions
contained herein; and
NOW, THEREFORE, in consideration of the mutual agreements contained in
the Credit Agreement herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
SS.1. AMENDMENT TO CREDIT AGREEMENT. Section 1.1 of the Credit
Agreement is hereby amended by deleting the definition of "Maximum Commitment"
set forth therein and substituting in lieu thereof the following new definition:
"MAXIMUM COMMITMENT: An amount equal to $21,834,073."
SS.2. CONFIRMATION OF OBLIGATIONS. The Borrower hereby confirms that
the obligations of the Borrower arising under each of the Loan Documents to
which it is a party, including Indebtedness consisting of Revolving Credit
Loans, Swingline Loans and L/C Obligations, are included in the Obligations, are
not subject to any claims or defenses whatsoever, and constitute valid and
binding obligations of the Borrower enforceable against the Borrower in
accordance with its terms, except as enforceability
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may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors' rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law). Each Guarantor hereby confirms that the obligations of such
Guarantor arising under each of the Loan Documents to which it is a party are
included in the Obligations, are not subject to any claims or defenses
whatsoever, and constitute valid and binding obligations of such Guarantor
enforceable against such Guarantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).
SS.3. RELEASE. The Borrower and each Guarantor, on the Borrower's and
each Guarantors own behalf and on behalf of the Borrower's and each Guarantors
successors and assigns, hereby waive, release and discharge the Agent and each
Bank and all of the affiliates of the Agent and each Bank, and all of the
directors, officers, employees, attorneys and agents of the Agent, each Bank and
such affiliates, from any and all claims, demands, actions or causes of action
(known and unknown) arising out of or in any way relating to the Loan Documents
and any documents, agreements, dealings or other matters connected with the
Credit Agreement, in each case to the extent arising (x) on or prior to the date
hereof or (y) out of, or relating to, actions, dealings or matters occurring on
or prior to the date hereof. The waivers, releases, and discharges in this ss.3
shall be effective regardless of whether the conditions to this Fourteenth
Amendment are satisfied and regardless of any other event that may occur or not
occur after the date hereof.
SS.4. REPRESENTATIONS AND WARRANTIES. The Borrower and each of the
Guarantors represent and warrant to the Banks and the Agent as follows:
(a) REPRESENTATIONS AND WARRANTIES IN CREDIT AGREEMENT. The
representations and warranties of the Borrower and each of the Guarantors
contained in the Credit Agreement, as amended hereby, (a) were true and correct
in all material respects when made, and (b) except (i) as a result of changes in
the ordinary course of business permitted under the Credit Agreement and (ii) to
the extent such representations and warranties by their terms are made solely as
of a prior date, continue to be true and correct in all material respects on the
date hereof.
(b) AUTHORITY, ETC. The execution and delivery by the Borrower and each
of the Guarantors of this Fourteenth Amendment and the performance by the
Borrower and each of the Guarantors of all of their agreements and obligations
under this Fourteenth Amendment and the Credit Agreement as amended hereby (i)
are within the corporate authority of the Borrower and each of the Guarantors,
(ii) have been duly authorized by all necessary corporate or other proceedings
or actions, as the case may be, by the Borrower and each of the Guarantors,
(iii) do not conflict with or result in any breach or contravention of any
provision of law, statute, rule or regulation to which the Borrower or any of
the Guarantors is subject or any judgment, order, writ, injunction, license or
permit applicable to the Borrower or any of the Guarantors, and (iv) do not
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conflict with any provision of the corporate charter, by-laws or partnership
agreement of, or any agreement or other instrument binding upon, the Borrower or
any of the Guarantors.
(c) ENFORCEABILITY OF OBLIGATIONS. This Fourteenth Amendment, and the
Credit Agreement as amended hereby, and the other Loan Documents constitute the
legal, valid and binding obligations of the Borrower and each of the Guarantors
enforceable against each such Person in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law). After giving effect
to this Fourteenth Amendment, no Default or Event of Default exists under the
Credit Agreement.
SS.5. CONDITIONS TO EFFECTIVENESS. This Fourteenth Amendment shall be
effective as of the date hereof upon the satisfaction of the following
conditions precedent:
(a) receipt by the Agent of an original counterpart signature to this
Fourteenth Amendment, duly executed and delivered by the Borrower, each of the
Guarantors, each of the Banks and the Agent;
(b) payment by the Borrower of the legal, appraisal, consultant and
out-of-pocket fees and expenses of the Agent, in each case, to the extent that
invoices for the same have been presented to the Borrower; and
(c) payment by the Borrower of all fees and expenses of Nightingale &
Associates, LLC and any other consultant retained by the Agent and/or the Banks
in connection with consulting services, to the extent that invoices for the same
have been presented to the Borrower (in addition to any amounts previously paid
as a retainer).
SS.6. MISCELLANEOUS PROVISIONS. (a) Except as otherwise expressly
provided by this Fourteenth Amendment, all of the terms, conditions and
provisions of the Credit Agreement shall remain the same. It is declared and
agreed by each of the parties hereto that the Credit Agreement, as amended
hereby, shall continue in full force and effect, and that this Fourteenth
Amendment and the Credit Agreement shall be read and construed as one
instrument.
(b) THIS FOURTEENTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
ACCORDING TO, THE LAWS OF THE STATE OF CONNECTICUT (EXCLUDING THE LAWS
APPLICABLE TO CONFLICTS OR CHOICE OF LAW).
(c) This Fourteenth Amendment may be executed in any number of
counterparts, but all such counterparts shall together constitute but one
instrument. In making proof of this Fourteenth Amendment it shall not be
necessary to produce or account for more than one counterpart signed by each
party hereto by and against which enforcement hereof is sought.
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(d) Headings or captions used in this Fourteenth Amendment are for
convenience of reference only and shall not define or limit the provisions
hereof.
(e) The Borrower hereby agrees to pay to the Agent, on demand by the
Agent, all reasonable out-of-pocket costs and expenses incurred or sustained by
the Agent in connection with the preparation of this Fourteenth Amendment
(including without limitation, recording and filing fees, notarization fees,
stamp taxes, any other tax imposed by reason of the execution and delivery of
the Loan Documents, the reasonable fees and expenses of counsel to the Agent and
the reasonable fees and expenses of the Agent's commercial finance examiners and
commercial auditors).
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IN WITNESS WHEREOF, each of the undersigned has duly executed this
Fourteenth Amendment as of the date first set forth above.
OUTSOURCE INTERNATIONAL, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
CAPITAL STAFFING FUND, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
OUTSOURCE FRANCHISING, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
SYNADYNE I, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
SYNADYNE II, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
SYNADYNE III, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
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SYNADYNE IV, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
SYNADYNE V, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
EMPLOYEES INSURANCE SERVICES, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
OUTSOURCE INTERNATIONAL OF AMERICA, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
MASS STAFF, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
STAFF ALL, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
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OUTSOURCE OF NEVADA, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
EMPLOYMENT CONSULTANTS, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
X-TRA HELP, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
CO-STAFF, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Vice President and CFO
GUARDIAN EMPLOYER EAST, LLC
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Manager
GUARDIAN EMPLOYER WEST, LLC
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Manager
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FLEET NATIONAL BANK (f/k/a BankBoston, N.A.),
individually and as Agent
By: /s/ C. Xxxxxxxxxxx Xxxxx
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Name: C. Xxxxxxxxxxx Xxxxx
Title: Vice President
COMERICA BANK
By: /s/ Xxxxxx X. Xxxxxxx
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Name: Xxxxxx X. Xxxxxxx
Title: Vice President
LASALLE BANK NATIONAL ASSOCIATION
(f/k/a LaSalle National Bank)
By: /s/ Xxxxx Xxxxxxx
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Name: Xxxxx Xxxxxxx
Title: First Vice President
SUNTRUST BANK, SOUTH FLORIDA,
NATIONAL ASSOCIATION
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
Title: Director
