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<SEC-DOCUMENT>0000950123-10-034405.txt : 20100413
<SEC-HEADER>0000950123-10-034405.hdr.sgml : 20100413
<ACCEPTANCE-DATETIME>20100413163010
ACCESSION NUMBER:		0000950123-10-034405
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100407
ITEM INFORMATION:		Termination of a Material Definitive Agreement
FILED AS OF DATE:		20100413
DATE AS OF CHANGE:		20100413

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEAMSTAFF INC
		CENTRAL INDEX KEY:			0000785557
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				221899798
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18492
		FILM NUMBER:		10747405

	BUSINESS ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873
		BUSINESS PHONE:		7327481700

	MAIL ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIGITAL SOLUTIONS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c99154e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV style="font-size: 10pt">
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<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): April 7, 2010</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>TeamStaff, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>New Jersey</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-18492</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>22-1899798</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>1 Executive Drive<BR>Somerset, NJ<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>08873</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(877) 523-9897</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

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<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.02</B>&nbsp;<B>Termination of a Material Definitive Agreement.</B>


<P align="left" style="font-size: 10pt; text-indent: 0%; margin-left: 8%">
On April&nbsp;7, 2010, TeamStaff, Inc. (the &#147;<u>Company</u>&#148;) notified
Sovereign Business Capital (formerly Business Alliance
Capital Company, a division of Sovereign Bank, and
referred to herein as &#147;<u>Sovereign</u>&#148;) that it was
terminating, effective immediately, that certain Amended
and Restated Loan and Security Agreement dated as of
March&nbsp;28, 2008, as amended by that certain Modification
Agreement dated as of January&nbsp;8, 2010 (together, the &#147;<u>Loan
Agreement</u>&#148;), by and between the Company and Sovereign.
Pursuant to the Loan Agreement, Sovereign had provided the
Company with a three-year secured revolving credit line
with an initial borrowing availability of up to $3
million; however, effective in January&nbsp;2010, Sovereign
reduced the borrowing availability to $2&nbsp;million in
connection with providing its consent to the Company&#146;s
disposition of the operating assets of its TeamStaff Rx
subsidiary. The credit provided by Sovereign under the
Loan Agreement was secured by a first priority lien on all
of the Company&#146;s assets.

<P align="left" style="font-size: 10pt; margin-left: 8%">
As the Company previously reported, on February&nbsp;12, 2010,
the Company determined that as of December&nbsp;31, 2009, it
was not in compliance with the debt service coverage ratio
covenant of the Loan Agreement. The Company also reported
that it was in discussions with Sovereign regarding
obtaining a waiver of its default under the debt service
coverage ratio. Subsequently, the Company was notified by
Sovereign that it did not intend to renew the Loan
Agreement beyond its stated termination date of March&nbsp;21,
2011 and further that it would waive payment of a
termination fee in the event the Company satisfied its
obligations under the Loan Agreement prior to August&nbsp;31,
2010. The Company&#146;s decision to terminate the Loan
Agreement follows its discussions with Sovereign of these
matters and was made to provide the Company with greater
flexibility as it pursues various alternatives, including
seeking to obtain a substitute credit facility on more
favorable terms and being able to avoid the payment of the
termination fee to Sovereign.

<P align="left" style="font-size: 10pt; margin-left: 8%">
As of the date of termination, the Company did not have
any borrowings outstanding under the Loan Agreement. Based
on the foregoing, the Company believes that it will not be
required to pay any termination fee under the Loan
Agreement as a result of the termination.

<P align="left" style="font-size: 10pt; margin-left: 8%">
The foregoing summary of the Loan Agreement does not
purport to be complete and is qualified in its entirety by
reference to the Modification Agreement dated as of
January&nbsp;8, 2010 between TeamStaff and Sovereign (filed as
Exhibit&nbsp;10.36 to the Company&#146;s Annual Report on Form 10-K
for the fiscal year ended September&nbsp;30, 2009), the Amended
and Restated Loan and Security Agreement dated as of March
28, 2008 between TeamStaff and Sovereign (filed as Exhibit
10.2 to the Company&#146;s Quarterly Report for the fiscal
quarter ended March&nbsp;31, 2008), and the Amended and
Restated Revolving Credit Master Promissory Note dated
January&nbsp;8, 2010 between TeamStaff and Sovereign (filed as
Exhibit&nbsp;10.37 to the Company&#146;s Annual Report on Form 10-K
for the fiscal year ended September&nbsp;30, 2009).


<P align="center" style="font-size: 10pt">2

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, hereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
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    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>TeamStaff, Inc.</B></TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">By: <B>/</B>s/ Cheryl Presuto</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Cheryl Presuto</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: &nbsp;&nbsp;Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;Date: &nbsp;&nbsp;April&nbsp;13, 2010
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3




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