Amendment to Revolving Credit and Security Agreement between PNC Bank and TeamStaff Entities (August 14, 2006)

Contract Categories: Business Finance › Modification Agreements
Summary

This amendment updates the Revolving Credit and Security Agreement originally dated June 8, 2005, between PNC Bank (as agent and lender) and TeamStaff, Inc., TeamStaff Rx, Inc., and RS Staffing Services, Inc. The main change is to Section 6.5(a), which now requires the borrowers to maintain a minimum Fixed Charge Coverage Ratio of 1.0 to 1.0 for the twelve months ending June 30, 2006, and 1.05 to 1.0 for the twelve months ending September 30, 2006, and each fiscal quarter after. All parties must sign to acknowledge and accept these revised terms.

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EX-10.3 2 file2.htm FORM OF AMEND. TO REV. CREDIT & SECURITY AGMT. 
  PNC Bank, National Association South Tryon Square 201 South College Street Suite 900 Charlotte, North Carolina 28202 August 14, 2006 TeamStaff, Inc. TeamStaff Rx, Inc. RS Staffing Services, Inc. 300 Atrium Drive Somerset, New Jersey 08873 Gentlemen: Reference is hereby made to that certain Revolving Credit and Security Agreement dated as of June 8, 2005, as amended, by and among TeamStaff, Inc., a New Jersey corporation, TeamStaff Rx, Inc., a Texas corporation, and RS Staffing Services, Inc., a Georgia corporation (collectively, the "Borrowers"), the financial institutions party thereto (the "Lenders") and PNC Bank, National Association, a national banking association, as agent for the Lenders (in such capacity, the "Agent") (the "Credit Agreement"). The purpose of this letter is to amend Section 6.5(a) of the Credit Agreement to read as followes: "(a) Fixed Charge Coverage Ratio. Cause to be maintained a Fixed Charge Coverage Ratio of not less than (i) 1.0 to 1.0 for the twelve month period ending as of June 30, 2006 and (ii) 1.05 to 1.0 for the twelve month period ending as of September 30, 2006 and as of each fiscal quarter thereafter." Please acknowledge your agreement to the terms set forth herein by signed below. Very truly yours, PNC Bank, National Association, as Agent and Lender By --------------------------------- Title ------------------------------  Agreed to acknowledged by: TeamStaff, Inc. By ---------------------------------- Title ------------------------------- TeamStaff Rx, Inc. By ---------------------------------- Title ------------------------------- RS Staffing Services, Inc. By ---------------------------------- Title -------------------------------