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<SEC-DOCUMENT>0000950123-10-081766.txt : 20100827
<SEC-HEADER>0000950123-10-081766.hdr.sgml : 20100827
<ACCEPTANCE-DATETIME>20100827151357
ACCESSION NUMBER:		0000950123-10-081766
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100823
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100827
DATE AS OF CHANGE:		20100827

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:		101043714

	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>c05503e8vk.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">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<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): August 23, 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>(866) 352-5304</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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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="left" style="font-size: 10pt; margin-left: 1%; font-size: 10pt"><B>Item&nbsp;1.01 Entry in to a Material Definitive Agreement.</B>


<P align="justify" style="margin-left:8%; margin-right:0%; font-size: 10pt">On August&nbsp;23, 2010, TeamStaff Government Solutions, Inc. (&#147;TGS&#148; or &#147;Borrower&#148;), a wholly-owned subsidiary of
TeamStaff, Inc. (&#147;TeamStaff&#148;) and Presidential Financial Corporation (&#147;Lender&#148;) executed an amendment, dated as of
August&nbsp;17, 2010 (&#147;Amendment&#148;) to the Loan and Security Agreement, dated as of July&nbsp;29, 2010 and the Secured
Promissory Note, dated July&nbsp;29, 2010. Pursuant to the Amendment, the parties agreed that for purposes of computing
interest on payments received in the payment account by Lender from Borrower in payment of any loan obligation,
the number of days shall be reduced from four (4)&nbsp;to three (3)&nbsp;Business Days after Lender&#146;s receipt of advice of
deposit in the payment account.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;2.03</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>






<P align="justify" style="margin-left:8%; margin-right:0%; font-size: 10pt">The description of the Amendment under Item&nbsp;1.01 is incorporated into this item by reference.



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;9.01</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Financial Statements and Exhibits.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="justify" style="margin-left:4%; margin-right:0%; font-size: 10pt"><B>(d) </B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits are filed or furnished herewith.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="14%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;No.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Document</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Secured Promissory Note and Loan and Security Agreement</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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



<P align="justify" 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%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<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"><B>TEAMSTAFF, INC.</B></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">&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">By: <U>/s/ Cheryl Presuto&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name: Cheryl Presuto<BR>
        Title: Chief Financial Officer<BR>
        Date: August&nbsp;27, 2010

</TD>
</TR>

<!-- End Table Body -->

</TABLE>
</DIV>









<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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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

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


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description of Document</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Secured Promissory Note and Loan and Security Agreement</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




</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c05503exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: Arial,sans-serif; margin-left: .25in; width: 7.20in">


<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;10.1</B>



<P align="center" style="font-size: 10pt"><B>AMENDMENT TO SECURED PROMISSORY NOTE<BR>
AND LOAN AND SECURITY AGREEMENT</B>



<P align="justify" style="font-size: 10pt; text-indent: 4%">THIS FIRST AMENDMENT TO SECURED PROMISSORY NOTE AND LOAN AND SECURITY AGREEMENT (the &#147;Agreement&#148;) is made as of
this seventeenth day of August, 2010, by and among TeamStaff Government Solutions, Inc. a Georgia corporation, d/b/a
TeamStaff Government Solutions; d/b/a TeamStaff Govt Solutions (the &#147;Borrower&#148;), and TeamStaff Inc. (the &#147;Guarantor&#148;)
and Presidential Financial Corporation, a Georgia corporation (the &#147;Lender&#148;).


<P align="center" style="font-size: 10pt"><U><B>R E C I T A L S</B></U>



<P align="justify" style="font-size: 10pt; text-indent: 4%">Pursuant to the Loan and Security Agreement dated July&nbsp;29, 2010, (&#147;Loan Agreement&#148;), between the Borrower and the
Lender, the Lender agreed to make available to the Borrower a line of credit in accordance with, and subject to, the
provisions of the Loan Agreement. The Borrower&#146;s obligation to repay the line of credit, with interest and other fees
and charges, is evidenced by the Secured Promissory Note dated July&nbsp;29, 2010, in the principal amount of One Million
Five Hundred Thousand and No/100 Dollars ($1,500,000.00) (the &#147;Promissory Note&#148;). The indebtedness, obligations and
liabilities of the Borrower under and in connection with the line of credit are guaranteed by the Guarantor pursuant to
the terms of the Corporate Guaranty Agreement dated July&nbsp;29, 2010 executed by the Guarantor (the &#147;Guaranty Agreement&#148;).
The Loan Agreement, Promissory Note, the Guaranty Agreement, and all documents now and hereafter executed by the
Borrower, the Guarantor or any other party, to evidence, secure, or guaranty, in connection with the Borrower&#146;s
indebtedness and obligation to Lender, are hereinafter referred to as the &#147;Loan Documents.&#148;


<P align="justify" style="font-size: 10pt; text-indent: 4%">For purposes of computing interest on payments received, the parties agree to amend the number of days subject to
the terms and conditions of this Agreement.


<P align="center" style="font-size: 10pt"><U><B>A G R E E M E N T S</B></U>



<P align="justify" style="font-size: 10pt; text-indent: 4%">NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements of the parties
hereinafter set forth, it is hereby mutually agreed as follows:


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>1.&nbsp;</B><U><B>Acknowledgment of Recitals</B></U>. Each of the parties hereto acknowledges that the above recitals are true
and correct and incorporated herein by reference.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>2.&nbsp;</B><U><B>Application of Payments</B></U>. For purposes of computing interest on payments received in the Payment Account
the parties agree to reduce the number of days from four (4)&nbsp;to three (3), and hereby amend Section&nbsp;4.3 of the Loan
Agreement to read as follows:


<P align="justify" style="font-size: 10pt; margin-left: 4%; font-size: 10pt">&#147;Lender may, in its discretion, apply, reverse and re-apply all Collections and other proceeds of Collateral or
other payments received with respect to the Obligations, in such order and manner as Lender shall determine,
whether or not the Obligations are due, and whether before or after the occurrence of a Default or an Event of
Default. For purposes of determining Availability, funds received at the Remittance Address will be credited
to the Loan Account upon Lender&#146;s receipt of notice that such items have been credited to the Payment Account,
subject to final payment and collection; <U>provided</U>, <U>however</U>, that for purposes of computing
interest on the Obligations, such items shall be deemed applied by Lender three Business Days after Lender&#146;s
receipt of advice of deposit in the Payment Account, including such payments received by wire transfer, ACH or
other electronic means to an account designated by Lender, in which case such items shall be deemed applied by
Lender three Business Days after Lender&#146;s receipt of advice of deposit in the Payment Account. If, as the
result of Lender&#146;s application of Collections to the Obligations as authorized by this Section&nbsp;4.3 a credit
balance exists in favor of Borrower (meaning that, on any date of determination, the collected balance of
Collections after the applicable cutoff time on such date exceeds the outstanding principal balance of (and all
interest, fees and other amounts payable with respect to) the Obligations after the applicable cutoff time on
such date), such credit balance shall not accrue interest in favor of Borrower, but shall be available to, and
promptly paid by Lender to Borrower upon Borrower&#146;s request, at any time or times for so long as no Default or
Event of Default exists.&#148;

<P align="center" style="font-size: 10pt">1
<P align="center" style="font-size: 10pt">&nbsp;

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

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<DIV style="font-family: Arial,sans-serif; margin-left: .25in; width: 7.20in">

<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>3.&nbsp;</B><U><B>Amendment Fee</B></U>. In consideration of the amendments set forth herein, Borrower unconditionally agrees to
pay to Lender an amendment fee in the amount of $0.00 (the &#147;Amendment Fee&#148;), which shall be fully earned and payable
upon receipt of a fully executed copy of this Agreement from Borrower and acceptance of this agreement by Lender as set
forth in paragraph 9 below. The amendment fee shall not be subject to refund, rebate or proration for any reason
whatsoever, and shall be treated as an Advance and charged to the loan account on the same date of Effectiveness.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>4.&nbsp;</B><U><B>Representations and Warranties</B></U><B>. </B>In order to induce the Lender to enter into this Agreement, the
Borrower and each of the Guarantor (collectively the &#147;Obligors&#148;) represent and warrant to the Lender that as of the
date hereof (a)&nbsp;no event of default exists under the provisions of the Loan Agreement, Promissory Note or the Guaranty
Agreements or other Loan Documents, (b)&nbsp;all of the representations and warranties of the Obligors in the Loan Documents
are true and correct on the date hereof as if the same were made on the date hereof, (c)&nbsp;the Collateral, as defined in
the Loan Agreement, is free and clear of all assignments, security interest, liens and other encumbrances of any kind
and nature whatsoever, except for those granted or permitted under the provisions of the Loan Documents, (d)&nbsp;the
execution and performance by the Borrower under the Loan Agreement, as amended, will not (i)&nbsp;violate any provision of
law, any order of any court or other agency of government, or the organizational documents and/or bylaws of Borrower,
or (ii)&nbsp;violate any indenture, contract, agreement or other instrument to which the Borrower is party, or by which its
property is bound, or be in conflict with, result in a breach of or constitute (with due notice and/or lapse of time) a
default under, any such indenture, or imposition of any lien, charge or encumbrance of any nature whatsoever upon any
of the property or assets of the Borrower, and (e)&nbsp;this Agreement constitutes the legal, valid and binding obligations
of the Obligors enforceable in accordance with its terms, except its enforceability may be limited by bankruptcy,
insolvency or some other laws affecting the enforcement of creditors rights generally.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>5.&nbsp;</B><U><B>Ratification and No Novation; Validity of Loan Documents</B></U>. The Obligors hereby ratify and confirm all
of their obligations, liabilities and indebtedness under the provisions of the Loan Agreement, the Promissory Note, the
Guaranty Agreements and the other Loan Documents, as the same may be amended and modified by this Agreement, and agrees
to pay the indebtedness in accordance with the terms of the Loan Agreement, as amended and modified by this Agreement.
The Lender and the Obligors each agrees that is their intention that nothing in this Agreement shall be construed to
extinguish, release or discharge or constitute, create or affect a novation of, or an agreement to extinguish (a)&nbsp;any
of the obligations, indebtedness and liabilities of the Obligors, or any other party under the provisions of the Loan
Agreement, the Promissory Note, and such other Loan Documents, or (b)&nbsp;any assignment or pledge to the Lender of, or any
security interest or lien granted to the Lender in, or on, any Collateral and security for such obligations,
indebtedness, and liabilities. The Lender and the Obligors each agrees that the Lender shall have the absolute and
unconditional right to demand payment of the Promissory Note in Lender&#146;s discretion at any time, regardless of the
existence of any provisions hereof or of any compliance or noncompliance by Borrower with any such provision. The
Obligors agree that all of the provisions of the Loan Agreement, the Promissory Note, and the other Loan Documents
shall remain and continue in full force and effect, as the same may be modified and amended by this Agreement. In the
event of any conflict between the provisions of this Agreement and the provisions of such other Loan Documents, the
provisions of this Agreement shall control. Obligors have no existing claims, defenses (personal or otherwise) or
rights of setoff whatsoever with respect to the Obligations of the Obligors under the Loan Documents. Each of the
Obligors furthermore agrees that each of them has no defense, counterclaim, offset, cross-complaint, claim or demand of
any nature whatsoever that can be asserted as a basis to seek affirmative relief and/or damages of any kind from the
Lender.

<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: Arial,sans-serif; margin-left: .25in; width: 7.20in">

<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>6.&nbsp;</B><U><B>Release</B></U>. Borrower hereby releases Lender and its affiliates and their respective directors, officers,
employees, attorneys and agents and any other Person affiliated with or representing Lender (the &#147;<B><I>Released Parties</I></B>&#148;)
from any and all liability arising from acts or omissions under or pursuant to this Agreement, whether based on errors
of judgment or mistake of law or fact, except for those arising from willful misconduct. In no circumstance will any
of the Released Parties be liable for lost profits or other special or consequential damages. Such release is made on
the date hereof and remade upon each request for an Advance by Borrower.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>7.&nbsp;</B><U><B>Applicable Law, Binding Effect, etc.</B></U> This Agreement shall be governed by the laws of the State of
Georgia and may be executed in any number of duplicate originals and counterparts, each of which, and all taken
together, shall constitute one and the same instrument. This Agreement shall be binding upon, and inure to the benefit
of, the Lender, the Borrower, and each of the Guarantor and their respective successors, heirs and assigns.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>8.&nbsp;</B><U><B>Expenses</B></U>. Borrower hereby agrees to pay all out-of-pocket expense incurred by Lender in connection
with the preparation, negotiation and consummation of this Agreement, and all other documents related thereto (whether
or not any borrowing under the Loan Agreement as amended shall be consummated), including, without limitation, the fees
and expenses of Lender&#146;s counsel.


<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>9.&nbsp;</B><U><B>Effectiveness of this Agreement</B></U>. This Agreement shall not be effective until the same is executed and
accepted by Lender.


<P align="center" style="font-size: 10pt"><B>&#091;THIS PORTION OF PAGE IS INTENTIONALLY LEFT BLANK&#093;</B>


<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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<P align="justify" style="font-size: 10pt; text-indent: 4%"><B>IN WITNESS WHEREOF</B>, the Lender, the Borrower, and each of the Guarantor have caused this Agreement to be duly
executed, under seal, as of the day and year first above written.


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt"><B>BORROWER:</B>


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt"><B>TEAMSTAFF GOVERNMENT SOLUTIONS, INC. D/B/A TEAMSTAFF GOVERNMENT SOLUTIONS; D/B/A TEAMSTAFF GOVT SOLUTIONS</B>


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">By: <U>/s/ Zachary C. Parker</U><BR>
Zachary C. Parker, CEO



<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt"><B>GUARANTOR:</B>


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">TEAMSTAFF INC.


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">By: <U>/s/ Zachary C. Parker</U><BR>
 Zachary C. Parker, CEO


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt"><B>LENDER:</B>


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">Presidential Financial Corporation


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">By: <U>/s/ Yung Simmons</U><BR>
Assistant Vice President<BR>

<P align="center" style="font-size: 10pt">4

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

<P align="center" style="font-size: 10pt; display: none">4




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