Document:

Execution
            Copy

            

            

            SECOND LIEN
            CREDIT AGREEMENT

            Dated as of
            August 29, 2007

            among

            BUTLER SERVICE
            GROUP, INC.,

            as
            Borrower,

            THE OTHER CREDIT
            PARTIES SIGNATORY HERETO,

            as Credit
            Parties,

            THE LENDERS
            SIGNATORY HERETO

            FROM TIME TO
            TIME,

            as
            Lenders,

            and

            MONROE CAPITAL
            MANAGEMENT ADVISORS LLC,

            as Agent and
            Lender

            

            

            

            

            Table of
            Contents

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                        
                        Page

                    
	
                         

                    	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        1.

                    	
                        AMOUNT AND TERMS OF
                        CREDIT

                    	
                        
                        1

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        1.1

                    	
                        Term Loan

                    	
                        
                        1

                    
	
                         

                    	
                        1.2

                    	
                        Reserved

                    	
                        
                        2

                    
	
                         

                    	
                        1.3

                    	
                        
                        Prepayments

                    	
                        
                        2

                    
	
                         

                    	
                        1.4

                    	
                        Use of
                        Proceeds

                    	
                        
                        4

                    
	
                         

                    	
                        1.5

                    	
                        Interest and
                        Applicable Margins

                    	
                        
                        4

                    
	
                         

                    	
                        1.6

                    	
                        Reserved

                    	
                        
                        7

                    
	
                         

                    	
                        1.7

                    	
                        Reserved

                    	
                        
                        7

                    
	
                         

                    	
                        1.8

                    	
                        Reserved

                    	
                        
                        7

                    
	
                         

                    	
                        1.9

                    	
                        Fees

                    	
                        
                        7

                    
	
                         

                    	
                        1.10

                    	
                        Receipt of
                        Payments

                    	
                        
                        8

                    
	
                         

                    	
                        1.11

                    	
                        Application and
                        Allocation of Payments

                    	
                        
                        8

                    
	
                         

                    	
                        1.12

                    	
                        Loan Account and
                        Accounting

                    	
                        
                        8

                    
	
                         

                    	
                        1.13

                    	
                        Indemnity

                    	
                        
                        9

                    
	
                         

                    	
                        1.14

                    	
                        Access

                    	
                        
                        10

                    
	
                         

                    	
                        1.15

                    	
                        Taxes

                    	
                        
                        10

                    
	
                         

                    	
                        1.16

                    	
                        Capital Adequacy;
                        Increased Costs; Illegality

                    	
                        
                        11

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        2.

                    	
                        CONDITIONS
                        PRECEDENT

                    	
                        
                        13

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        2.1

                    	
                        Conditions to the
                        Initial Loans

                    	
                        
                        13

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        3.

                    	
                        REPRESENTATIONS AND
                        WARRANTIES

                    	
                        
                        14

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        3.1

                    	
                        Corporate Existence;
                        Compliance with Law

                    	
                        
                        15

                    
	
                         

                    	
                        3.2

                    	
                        Executive Offices,
                        Collateral Locations, FEIN

                    	
                        
                        15

                    
	
                         

                    	
                        3.3

                    	
                        Corporate Power,
                        Authorization, Enforceable Obligations

                    	
                        
                        15

                    
	
                         

                    	
                        3.4

                    	
                        Financial Statements
                        and Projections

                    	
                        
                        16

                    
	
                         

                    	
                        3.5

                    	
                        Material Adverse
                        Effect

                    	
                        
                        16

                    
	
                         

                    	
                        3.6

                    	
                        Ownership of
                        Property; Liens

                    	
                        
                        17

                    
	
                         

                    	
                        3.7

                    	
                        Labor
                        Matters

                    	
                        
                        17

                    
	
                         

                    	
                        3.8

                    	
                        Ventures,
                        Subsidiaries and Affiliates; Outstanding Stock and Indebtedness

                    	
                        
                        18

                    
	
                         

                    	
                        3.9

                    	
                        Government
                        Regulation

                    	
                        
                        18

                    
	
                         

                    	
                        3.10

                    	
                        Margin
                        Regulations

                    	
                        
                        18

                    
	
                         

                    	
                        3.11

                    	
                        Taxes

                    	
                        
                        18

                    
	
                         

                    	
                        3.12

                    	
                        ERISA

                    	
                        
                        19

                    
	
                         

                    	
                        3.13

                    	
                        No
                        Litigation

                    	
                        
                        20

                    
	
                         

                    	
                        3.14

                    	
                        Brokers

                    	
                        
                        20

                    
	
                         

                    	
                        3.15

                    	
                        Intellectual
                        Property

                    	
                        
                        20

                    
	
                         

                    	
                        3.16

                    	
                        Full
                        Disclosure

                    	
                        
                        20

                    
	
                         

                    	
                        3.17

                    	
                        Environmental
                        Matters

                    	
                        
                        20

                    
	
                         

                    	
                        3.18

                    	
                        Insurance

                    	
                        
                        21

                    
	
                         

                    	
                        3.19

                    	
                        Deposit and
                        Disbursement Accounts

                    	
                        
                        21

                    
	
                         

                    	
                        3.20

                    	
                        Government
                        Contracts

                    	
                        
                        21

                    
	
                         

                    	
                        3.21

                    	
                        Customer and Trade
                        Relations

                    	
                        
                        22

                    

            -i-

            

            

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        3.22

                    	
                        Agreements and Other
                        Documents

                    	
                        
                        22

                    
	
                         

                    	
                        3.23

                    	
                        Solvency

                    	
                        
                        22

                    
	
                         

                    	
                        3.24

                    	
                        Reserved

                    	
                        
                        22

                    
	
                         

                    	
                        3.25

                    	
                        Reserved

                    	
                        
                        22

                    
	
                         

                    	
                        3.26

                    	
                        Foreign Assets
                        Control Regulations

                    	
                        
                        22

                    
	
                         

                    	
                        3.27

                    	
                        Anti-Terrorism
                        Law

                    	
                        
                        22

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        4.

                    	
                        FINANCIAL STATEMENTS
                        AND INFORMATION

                    	
                        
                        23

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        4.1

                    	
                        Reports and
                        Notices

                    	
                        
                        23

                    
	
                         

                    	
                        4.2

                    	
                        Communication with
                        Accountants

                    	
                        
                        23

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        5.

                    	
                        AFFIRMATIVE
                        COVENANTS

                    	
                        
                        24

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        5.1

                    	
                        Maintenance of
                        Existence and Conduct of Business

                    	
                        
                        24

                    
	
                         

                    	
                        5.2

                    	
                        Payment of
                        Charges

                    	
                        
                        24

                    
	
                         

                    	
                        5.3

                    	
                        Books and
                        Records

                    	
                        
                        24

                    
	
                         

                    	
                        5.4

                    	
                        Insurance; Damage to
                        or Destruction of Collateral

                    	
                        
                        25

                    
	
                         

                    	
                        5.5

                    	
                        Compliance with
                        Laws

                    	
                        
                        26

                    
	
                         

                    	
                        5.6

                    	
                        Supplemental
                        Disclosure

                    	
                        
                        26

                    
	
                         

                    	
                        5.7

                    	
                        Intellectual
                        Property

                    	
                        
                        26

                    
	
                         

                    	
                        5.8

                    	
                        Environmental
                        Matters

                    	
                        
                        26

                    
	
                         

                    	
                        5.9

                    	
                        Landlords’
                        Agreements, Mortgagee Agreements, Bailee Letters and Real

                    	
                         

                    
	
                         

                    	
                         

                    	
                        
                             Estate
                        Purchases

                    	
                        
                        27

                    
	
                         

                    	
                        5.10

                    	
                        Further
                        Assurances

                    	
                        
                        28

                    
	
                         

                    	
                        5.11

                    	
                        Delivery of Butler
                        India Stock Certificate

                    	
                        
                        28

                    
	
                         

                    
	
                        6.

                    	
                        NEGATIVE
                        COVENANTS

                    	
                        
                        28

                    
	
                         

                    
	
                         

                    	
                        6.1

                    	
                        Mergers,
                        Subsidiaries, Etc

                    	
                        
                        28

                    
	
                         

                    	
                        6.2

                    	
                        Investments; Loans
                        and Advances

                    	
                        
                        28

                    
	
                         

                    	
                        6.3

                    	
                        
                        Indebtedness

                    	
                        
                        29

                    
	
                         

                    	
                        6.4

                    	
                        Employee Loans and
                        Affiliate Transactions

                    	
                        
                        30

                    
	
                         

                    	
                        6.5

                    	
                        Capital Structure
                        and Business

                    	
                        
                        30

                    
	
                         

                    	
                        6.6

                    	
                        Guaranteed
                        Indebtedness

                    	
                        
                        31

                    
	
                         

                    	
                        6.7

                    	
                        Liens

                    	
                        
                        31

                    
	
                         

                    	
                        6.8

                    	
                        Sale of Stock and
                        Assets

                    	
                        
                        31

                    
	
                         

                    	
                        6.9

                    	
                        ERISA

                    	
                        
                        32

                    
	
                         

                    	
                        6.10

                    	
                        Financial
                        Covenants

                    	
                        
                        32

                    
	
                         

                    	
                        6.11

                    	
                        Hazardous
                        Materials

                    	
                        
                        32

                    
	
                         

                    	
                        6.12

                    	
                        
                        Sale-Leasebacks

                    	
                        
                        32

                    
	
                         

                    	
                        6.13

                    	
                        Cancellation of
                        Indebtedness

                    	
                        
                        32

                    
	
                         

                    	
                        6.14

                    	
                        Restricted
                        Payments

                    	
                        
                        32

                    
	
                         

                    	
                        6.15

                    	
                        Change of Corporate
                        Name or Location; Change of Fiscal Year

                    	
                        
                        33

                    
	
                         

                    	
                        6.16

                    	
                        No Impairment of
                        Intercompany Transfers

                    	
                        
                        33

                    
	
                         

                    	
                        6.17

                    	
                        No Speculative
                        Transactions

                    	
                        
                        33

                    
	
                         

                    	
                        6.18

                    	
                        Leases; Real Estate
                        Purchases

                    	
                        
                        33

                    
	
                         

                    	
                        6.19

                    	
                        Sale or Discount of
                        Accounts

                    	
                        
                        34

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    

            -ii-

            

            

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        6.20

                    	
                        Reserved

                    	
                        
                        34

                    
	
                         

                    	
                        6.21

                    	
                        No Further Negative
                        Pledge

                    	
                        
                        34

                    
	
                         

                    	
                        6.22

                    	
                        Amendments or
                        Waivers of Certain Documents; First Lien Loan Document Notices

                    	
                        
                        34

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        7.

                    	
                        TERM

                    	
                        
                        34

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        7.1

                    	
                        
                        Termination

                    	
                        
                        34

                    
	
                         

                    	
                        7.2

                    	
                        Survival of
                        Obligations Upon Termination of Financing Arrangements

                    	
                        
                        34

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        8.

                    	
                        EVENTS OF DEFAULT;
                        RIGHTS AND REMEDIES

                    	
                        
                        35

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        8.1

                    	
                        Events of
                        Default

                    	
                        
                        35

                    
	
                         

                    	
                        8.2

                    	
                        Remedies

                    	
                        
                        37

                    
	
                         

                    	
                        8.3

                    	
                        Waivers by Credit
                        Parties

                    	
                        
                        37

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        9.

                    	
                        ASSIGNMENT AND
                        PARTICIPATIONS; APPOINTMENT OF AGENT

                    	
                        
                        37

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        9.1

                    	
                        Assignment and
                        Participations

                    	
                        
                        37

                    
	
                         

                    	
                        9.2

                    	
                        Appointment of
                        Agent

                    	
                        
                        39

                    
	
                         

                    	
                        9.3

                    	
                        Agent’s
                        Reliance, Etc

                    	
                        
                        40

                    
	
                         

                    	
                        9.4

                    	
                        Monroe Capital and
                        Affiliates

                    	
                        
                        41

                    
	
                         

                    	
                        9.5

                    	
                        Lender Credit
                        Decision

                    	
                        
                        41

                    
	
                         

                    	
                        9.6

                    	
                        
                        Indemnification

                    	
                        
                        41

                    
	
                         

                    	
                        9.7

                    	
                        Successor
                        Agent

                    	
                        
                        42

                    
	
                         

                    	
                        9.8

                    	
                        Setoff and Sharing
                        of Payments

                    	
                        
                        42

                    
	
                         

                    	
                        9.9

                    	
                        Advances; Payments;
                        Non-Funding Lenders; Information; Actions in Concert

                    	
                        
                        43

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        10.

                    	
                        SUCCESSORS AND
                        ASSIGNS

                    	
                        
                        44

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        10.1

                    	
                        Successors and
                        Assigns

                    	
                        
                        44

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        11.

                    	
                        
                        MISCELLANEOUS

                    	
                        
                        44

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        11.1

                    	
                        Complete Agreement;
                        Modification of Agreement

                    	
                        
                        44

                    
	
                         

                    	
                        11.2

                    	
                        Amendments and
                        Waivers

                    	
                        
                        44

                    
	
                         

                    	
                        11.3

                    	
                        Fees and
                        Expenses

                    	
                        
                        46

                    
	
                         

                    	
                        11.4

                    	
                        No Waiver

                    	
                        
                        47

                    
	
                         

                    	
                        11.5

                    	
                        Remedies

                    	
                        
                        47

                    
	
                         

                    	
                        11.6

                    	
                        
                        Severability

                    	
                        
                        47

                    
	
                         

                    	
                        11.7

                    	
                        Conflict of
                        Terms

                    	
                        
                        48

                    
	
                         

                    	
                        11.8

                    	
                        
                        Confidentiality

                    	
                        
                        48

                    
	
                         

                    	
                        11.9

                    	
                        GOVERNING
                        LAW

                    	
                        
                        48

                    
	
                         

                    	
                        11.10

                    	
                        Notices

                    	
                        
                        49

                    
	
                         

                    	
                        11.11

                    	
                        Section
                        Titles

                    	
                        
                        49

                    
	
                         

                    	
                        11.12

                    	
                        
                        Counterparts

                    	
                        
                        49

                    
	
                         

                    	
                        11.13

                    	
                        WAIVER OF JURY
                        TRIAL

                    	
                        
                        49

                    
	
                         

                    	
                        11.14

                    	
                        Press Releases and
                        Related Matters

                    	
                        
                        50

                    
	
                         

                    	
                        11.15

                    	
                        
                        Reinstatement

                    	
                        
                        50

                    

            -iii-

            

            

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        11.16

                    	
                        Advice of
                        Counsel

                    	
                        
                        50

                    
	
                         

                    	
                        11.17

                    	
                        No Strict
                        Construction

                    	
                        
                        50

                    

            -iv-

            

            

            

            INDEX OF
            APPENDICES

            	
                         

                    	
                         

                    	
                         

                    
	
                        Annex A
                        (Recitals)

                    	
                        -

                    	
                        
                        Definitions

                    
	
                        Annex B

                    	
                        -

                    	
                        Reserved

                    
	
                        Annex C

                    	
                        -

                    	
                        Reserved

                    
	
                        Annex D (Section 2.1
                        (a))

                    	
                        -

                    	
                        Closing
                        Checklist

                    
	
                        Annex E (Section 4.1
                        (a))

                    	
                        -

                    	
                        Financial Statements
                        and Projections Reporting

                    
	
                        Annex F (Section 4.1
                        (b))

                    	
                        -

                    	
                        Collateral
                        Reports

                    
	
                        Annex G (Section
                        6.10)

                    	
                        -

                    	
                        Financial
                        Covenants

                    
	
                        Annex H (Section
                        9.9(a))

                    	
                        -

                    	
                        Lenders’ Wire
                        Transfer Information

                    
	
                        Annex I (Section
                        11.10)

                    	
                        -

                    	
                        Notice Addresses
                        Annex J (from Annex A-

                    
	
                        
                        Commitments
                        definition)

                    	
                        -

                    	
                        Commitments as of
                        Closing Date

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        Exhibit 1.1
                        (a)

                    	
                        -

                    	
                        Form of Term B
                        Note

                    
	
                        Exhibit
                        1.5(e)

                    	
                        -

                    	
                        Form of Notice of
                        Conversion/Continuation

                    
	
                        Exhibit 9.1
                        (a)

                    	
                        -

                    	
                        Form of Assignment
                        Agreement

                    
	
                        Disclosure Schedule
                        1.4

                    	
                        -

                    	
                        Sources and Uses;
                        Funds Flow Memorandum

                    
	
                        Disclosure Schedule
                        3.1

                    	
                        -

                    	
                        Type of Entity;
                        State of Organization

                    
	
                        Disclosure Schedule
                        3.2

                    	
                        -

                    	
                        Executive Offices,
                        Collateral Locations, FEIN

                    
	
                        Disclosure Schedule
                        3.4(A)

                    	
                        -

                    	
                        Financial
                        Statements

                    
	
                        Disclosure Schedule
                        3.4(B)

                    	
                        -

                    	
                        Pro Forma

                    
	
                        Disclosure Schedule
                        3.4(C)

                    	
                        -

                    	
                        
                        Projections

                    
	
                        Disclosure Schedule
                        3.6

                    	
                        -

                    	
                        Real Estate and
                        Leases

                    
	
                        Disclosure Schedule
                        3.7

                    	
                        -

                    	
                        Labor
                        Matters

                    
	
                        Disclosure Schedule
                        3.8

                    	
                        -

                    	
                        Ventures,
                        Subsidiaries and Affiliates; Outstanding Stock

                    
	
                        Disclosure Schedule
                        3.11

                    	
                        -

                    	
                        Tax
                        Matters

                    
	
                        Disclosure Schedule
                        3.12

                    	
                        -

                    	
                        ERISA
                        Plans

                    
	
                        Disclosure Schedule
                        3.13

                    	
                        -

                    	
                        
                        Litigation

                    
	
                        Disclosure Schedule
                        3.14

                    	
                        -

                    	
                        Brokers

                    
	
                        Disclosure Schedule
                        3.15

                    	
                        -

                    	
                        Intellectual
                        Property

                    
	
                        Disclosure Schedule
                        3.17

                    	
                        -

                    	
                        Hazardous
                        Materials

                    
	
                        Disclosure Schedule
                        3.18

                    	
                        -

                    	
                        Insurance

                    
	
                        Disclosure Schedule
                        3.19

                    	
                        -

                    	
                        Deposit and
                        Disbursement Accounts

                    
	
                        Disclosure Schedule
                        3.20

                    	
                        -

                    	
                        Government
                        Contracts

                    
	
                        Disclosure Schedule
                        3.22

                    	
                        -

                    	
                        Material
                        Agreements

                    
	
                        Disclosure Schedule
                        5.1

                    	
                        -

                    	
                        Trade
                        Names

                    
	
                        Disclosure Schedule
                        6.3

                    	
                        -

                    	
                        
                        Indebtedness

                    
	
                        Disclosure Schedule
                        6.4

                    	
                        -

                    	
                        Stock Option
                        Plans

                    
	
                        Disclosure Schedule
                        6.7

                    	
                        -

                    	
                        Existing
                        Liens

                    

            v

            

            

            

            Execution
            Copy

            
                                This
            SECOND LIEN CREDIT AGREEMENT (this “Agreement”), dated as of August
            29, 2007 among Butler Service Group, Inc., a New Jersey corporation
            (“Borrower”); the other Credit Parties signatory hereto; MONROE
            CAPITAL MANAGEMENT ADVISORS LLC (in its individual capacity,
            “Monroe”), for itself, as Lender, and as Agent for Lenders, and the
            other Lenders signatory hereto from time to time.

            
            RECITALS

            
                                WHEREAS,
            Borrower has granted to Agent, for the benefit of Agent and Lenders, a security
            interest in and lien upon all of its existing and after-acquired personal and real
            property to secure the Obligations pursuant to the Collateral Documents;

            
                                WHEREAS,
            Butler International, Inc., a Maryland corporation (“Holdings”) is
            willing to guarantee all of the obligations of Borrower to Agent and Lenders under the
            Loan Documents and to grant to Agent, for the benefit of Agent and Lenders, a security
            interest in and lien upon all of its existing and after-acquired personal and real
            property to secure such guaranty;

            
                                WHEREAS,
            each of Holdings’s Subsidiaries (other than Butler India, Butler Foundation, AAC
            Corp. and Sylvan Insurance Co., Ltd.) is willing to guarantee all of the obligations of
            Borrower to Agent and Lenders under the Loan Documents and to grant to Agent, for the
            benefit of Agent and Lenders, a security interest in and lien upon all of its existing
            and after-acquired personal and real property to secure such guaranty;

            
                                WHEREAS,
            the security interests granted to the Agent by the Borrower, Holdings and each of
            Holdings’s Subsidiaries (other than Butler India, Butler Foundation, AAC Corp.
            and Sylvan Insurance Co., Ltd.) are granted subject to the terms of the Intercreditor
            Agreement; and

            
                                WHEREAS,
            capitalized terms used in this Agreement shall have the meanings ascribed to them in
            Annex A and, for purposes of this Agreement and the other Loan Documents, the
            rules of construction set forth in Annex A shall govern. All Annexes, Disclosure
            Schedules, Exhibits and other attachments (collectively,
            “Appendices”) hereto, or expressly identified to this Agreement, are
            incorporated herein by reference, and taken together with this Agreement, shall
            constitute but a single agreement. These Recitals shall be construed as part of the
            Agreement.

            
                                NOW,
            THEREFORE, in consideration of the premises and the mutual covenants hereinafter
            contained, and for other good and valuable consideration, the parties hereto agree as
            follows:

            	
                         

                    	
                         

                    
	
                        1.

                    	
                        AMOUNT AND TERMS
                        OF CREDIT

                    

            
                      1.1          
            Term Loan.

            
                                     (a)          Subject
            to the terms and conditions hereof, each Term B Lender agrees to make a term loan
            (collectively, the “Term Loan B”) on the Closing Date to Borrower in
            the original principal amount of its Term Loan B Commitment. The obligations of each
            Term B Lender hereunder shall be several and not joint. The Term Loan B shall be
            evidenced by promissory notes substantially in the form of Exhibit 1.1 (a) (each
            a “Term B Note”, collectively the “Term B
            Notes”), and, except as provided in Section 1.12, Borrower shall
            execute and

            1

            

            

            

            deliver each Term B Note to the
            applicable Term B Lender. Each Term B Note shall represent the obligation of Borrower
            to pay the amount of the applicable Term B Lender’s Term Loan B Commitment,
            together with interest thereon as prescribed in Section 1.5.

            
                                     (b)          Borrower
            shall repay the principal amount of the Term Loan B in quarterly installments on the
            first day of January, April, July and October of each year, commencing October 1, 2007,
            each installment (other than the final installment) in the amount of $225,000 and the
            final installment due on the Term Loan B Maturity Date shall be in an amount equal to
            the remaining principal balance of the Term B Loan.

            
                                     (c)          The
            aggregate outstanding principal balance of the Term Loan B shall be due and payable in
            full in immediately available funds on the Term Loan B Maturity Date, if not sooner
            paid in full. No payment with respect to the Term Loan B may be reborrowed.

            
                                     (d)          
            Each payment of principal with respect to the Term Loan B shall be paid to Agent for
            the ratable benefit of each Term B Lender, ratably in proportion to each such Term B
            Lender’s respective Term Loan B Commitment.

            
                      1.2          
            Reserved.

            
                      1.3          
            Prepayments.

            
                       
                          (a)          
            Voluntary Prepayments. Subject to the Intercreditor Agreement, Borrower may at any
            time on at least 5 days’ prior written notice to Agent voluntarily prepay all or
            part of the Term Loan B; provided that any such prepayments shall be in a
            minimum amount of $500,000 and integral multiples of $250,000 in excess of such amount.
            Any voluntary prepayment must be accompanied by the payment of the Fee required by
            Section 1.9(b), if any, plus the payment of any LIBOR funding breakage costs in
            accordance with Section 1.13(b). Each notice of partial prepayment shall
            designate the Loan or other Obligations to which such prepayment is to be
            applied.

            
                                     (b)          
            Mandatory Prepayments.

            
                                                    (i)          Until
            the Termination Date, subject to the Intercreditor Agreement, Borrower shall prepay the
            Obligations on the date that is 10 days after the earlier of (A) the date on which
            Borrower’s annual audited Financial Statements for the immediately preceding
            Fiscal Year are delivered pursuant to Annex E or (B) the date on which such
            annual audited Financial Statements were required to be delivered pursuant to Annex
            E, in an amount equal to twenty-five percent (25%) of Excess Cash Flow for the
            immediately preceding Fiscal Year; provided that, Borrower shall make such
            payment on such date only to the extent that Borrowing Availability (as defined in the
            First Lien Credit Agreement) for the 30-day period preceding the end of each first
            Fiscal Quarter in any year exceeds $4,000,000, with any remaining amount being paid 10
            days after the end of each fiscal month thereafter to the extent Borrowing Availability
            for the 30-day period preceding the end of such fiscal month exceeds $4,000,000 until
            paid in full. To the extent that Borrower does not have sufficient Borrowing
            Availability to both make the prepayments required by this clause and the prepayments
            required by Section 1.3(b)(i) of the First Lien Credit Agreement, Borrower shall
            split its prepayments 25% to the Obligations and 75% to the First Lien Indebtedness.
            Any prepayments from Excess Cash Flow paid pursuant to this clause (i) shall be applied
            in accordance with Section 1.3(c). Each such prepayment shall be

            2

            

            

            

            accompanied by a certificate
            signed by Borrower’s chief financial officer certifying the manner in which
            Excess Cash Flow and the resulting prepayment were calculated, which certificate shall
            be in form and substance satisfactory to Agent.

            
                                                    (ii)          (A)
            Subject to the Intercreditor Agreement, immediately upon receipt by any Credit Party of
            proceeds of any asset disposition of the Montvale Property, Borrower shall prepay the
            Loans in an amount equal to the lesser of (i) $5,000,000 and (ii) 100% of the amount of
            such proceeds, net of (1) commissions and other reasonable and customary transaction
            costs, fees and expenses properly attributable to such transaction and payable by
            Borrower or Butler NJ in connection therewith (in each case, paid to non-Affiliates),
            (2) transfer taxes payable by Borrower or Butler NJ, (3) amounts payable under the
            Montvale Property Mortgage Loan and (4) an appropriate reserve for income taxes in
            accordance with GAAP in connection therewith. Any such prepayment shall be applied in
            accordance with Section 1.3(c) (such amount described in this clause (ii),
            “Net Montvale Sale Proceeds”); (B) To the extent not required to be
            used to prepay First Lien Indebtedness and permitted by the terms of the Intercreditor
            Agreement, immediately upon receipt by any Credit Party of proceeds of any asset
            disposition (excluding proceeds of asset dispositions permitted by Section
            6.8(a) or described in clause (A) above), but including any sale of Stock of
            any Subsidiary of Holdings, and the amount of such proceeds from any single transaction
            or series of related transactions equals or exceeds $1,000,000, Borrower shall prepay
            the Loans in an amount equal to one hundred percent (100%) of the amount of such
            proceeds, net of (1) commissions and other reasonable and customary transaction costs,
            fees and expenses properly attributable to such transaction and payable by Borrower in
            connection therewith (in each case, paid to non-Affiliates), (2) transfer taxes, (3)
            amounts payable to holders of senior Liens (to the extent such Liens constitute
            Permitted Encumbrances hereunder), if any, and (D) an appropriate reserve for income
            taxes in accordance with GAAP in connection therewith. Any such prepayment shall be
            applied in accordance with Section 1.3(c).

            
                                                    (iii)          Subject
            to the Intercreditor Agreement, on or prior to the date 8 months following the Closing
            Date, Borrower shall prepay the Term Loan B in an amount equal to $3,000,000
            less any amounts prepaid prior to such date in accordance with Sections
            1.3(a) or 1.3(b)(ii)(A).

            
                                                    (iv)          Subject
            to the Intercreditor Agreement, immediately upon receipt by any Credit Party of cash
            deposited as cash collateral for the Montvale Property Letter of Credit, Borrower shall
            prepay the Term Loan B in an amount equal to such cash received.

            
                                     (c)          
            Application of Mandatory Prepayments. Any prepayments made by Borrower pursuant to
            Section 1.3(b) above shall be applied as follows: first, to Fees and
            reimbursable expenses of Agent then due and payable pursuant to any of the Loan
            Documents; second, to interest then due and payable on the Term Loan B; and
            third, to prepay the scheduled principal installments of the Term Loan B in
            inverse order of maturity, until such Term Loan B shall have been prepaid in
            full.

            
                                     (d)          
            Application of Prepayments from Insurance Proceeds and Condemnation
            Proceeds.

            3

            

            

            

            
                                                    (i)          To
            the extent not required to be used to prepay First Lien Indebtedness and permitted by
            the terms of the Intercreditor Agreement, prepayments from insurance or condemnation
            proceeds (other than to the extent related to the Montvale Property) in accordance with
            Section 5.4(c) and the Mortgage(s) (other than the Mortgage of the Montvale
            Property), respectively, shall be applied to scheduled installments of the Term Loan B
            in inverse order of maturity.

            
                                                    (ii)          Subject
            to the Montvale Property Mortgage, prepayments from insurance or condemnation proceeds
            in accordance with Section 5.4(c) related to the Montvale Property and the
            Mortgage of the Montvale Property, respectively, shall be applied to scheduled
            installments of the Term Loan B in inverse order of maturity.

            
                                     (e)          
            No Implied Consent. Nothing in this Section 1.3 shall be construed to
            constitute Agent’s or any Lender’s consent to any transaction that is not
            permitted by other provisions of this Agreement or the other Loan Documents.

            
                      1.4          
            Use of Proceeds. Borrower shall utilize the proceeds of the Term Loan B to repay
            $19,500,000 of First Lien Indebtedness and $2,000,000 to cash collateralize the letter
            of credit that provides credit support for the Montvale Property Mortgage Loan (the
            “Montvale Property Letter of Credit”) and to pay any related
            transaction expenses. Disclosure Schedule 1.4 contains a description of
            Borrower’s sources and uses of funds as of the Closing Date and a funds flow
            memorandum detailing how funds from each source are to be transferred to particular
            uses.

            
                      1.5          
            Interest and Applicable Margins.

            
                                     (a)          Borrower
            shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the
            various Loans being made by each Lender, in arrears on each applicable Interest Payment
            Date, at the following rates: with respect to the Term Loan B, the Index Rate plus the
            Applicable Term Loan B Index Margin per annum or, at the election of Borrower, the
            applicable LIBOR Rate plus the Applicable Term Loan B LIBOR Margin per
            annum.

            As of the Closing
            Date, the Applicable Margins are as follows:

            	
                         

                    	
                         

                    
	
                        Applicable Term Loan
                        B Index Margin

                    	
                        5.
                        00%

                    
	
                         

                    	
                         

                    
	
                        Applicable Term Loan
                        B LIBOR Margin

                    	
                        
                        6.00%

                    

            
                                     The
            Applicable Term Loan B LIBOR Margin shall be adjusted (up or down) prospectively as
            determined by Borrower’s consolidated financial performance, commencing with the
            first day of the first full Fiscal Month that occurs more than 5 days after the twelve
            month anniversary of the Closing Date and will be determined based on the Financial
            Statements then most recently delivered by reference to the following grids based upon
            the twelve months then ended:

            4

            

            

            

            	
                         

                    	
                         

                    
	
                        If Leverage

                        Ratio is:

                    	
                        Level of

                        Applicable Margins:

                    
	
                        

                    	
                        

                    
	
                        <3.25x

                    	
                        Level I

                    
	
                        >3.25x,
                        but < 3.75x

                    	
                        Level II

                    
	
                        >3.75x,
                        but < 4.25x

                    	
                        Level III

                    
	
                        
                        >4.25x

                    	
                        Level IV

                    

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Applicable
                        Margins

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Level
                        I

                    	
                        Level
                        II

                    	
                        Level
                        III

                    	
                        Level
                        IV

                    
	
                         

                    	
                        

                    	
                        

                    	
                        

                    	
                        

                    
	
                        Applicable Term Loan
                        B

                        LIBOR Margin

                    	
                        4.25%

                    	
                        4.75%

                    	
                        5.25%

                    	
                        6.00%

                    
	
                        Applicable Term Loan
                        B

                        Index Margin

                    	
                        3.25%

                    	
                        3.75%

                    	
                        4.25%

                    	
                        5.00%

                    

            
                      All
            adjustments in the Applicable Margins after the first adjustment shall be implemented
            quarterly on a prospective basis, for each calendar month commencing at least 5 days
            after the date of delivery to Lenders of the quarterly unaudited or annual audited (as
            applicable) Financial Statements evidencing the need for an adjustment. Concurrently
            with the delivery of those Financial Statements, Borrower shall deliver to Agent and
            Lenders a certificate, signed by its chief financial officer, setting forth in
            reasonable detail the basis for the continuance of, or any change in, the Applicable
            Margins. Failure to timely deliver such Financial Statements shall, in addition to any
            other remedy provided for in this Agreement, result in an increase in the Applicable
            Margins to the highest level set forth in the foregoing grid, until the first day of
            the first calendar month following the delivery of those Financial Statements
            demonstrating that such an increase is not required. If a Default or an Event of
            Default has occurred and is continuing at the time any reduction in the Applicable
            Margins is to be implemented, that reduction shall be deferred until the first day of
            the first calendar month following the date on which such Default or Event of Default
            is waived or cured.

            
                      (b)          If
            any payment on any Loan becomes due and payable on a day other than a Business Day, the
            maturity thereof will be extended to the next succeeding Business Day (except as set
            forth in the definition of LIBOR Period) and, with respect to payments of principal,
            interest thereon shall be payable at the then applicable rate during such
            extension.

            
                      (c)          All
            computations of Fees calculated on a per annum basis and interest shall be made by
            Agent on the basis of a 360-day year, in each case for the actual number of days
            occurring in the period for which such interest and Fees are payable. The Index Rate is
            a floating rate determined for each day. Each determination by Agent of an interest
            rate and Fees hereunder shall be final, binding and conclusive on Borrower, absent
            manifest error.

            
                      (d)          So
            long as an Event of Default has occurred and is continuing, the interest rates
            applicable to the Term Loan B shall be increased by two percentage points (2%) per
            annum above the rates of interest otherwise applicable hereunder (“Default
            Rate”), and all outstanding Obligations shall bear interest at the Default
            Rate applicable to such Obligations. Interest at the Default Rate shall accrue from the
            initial date of such Event of Default until that Event of Default is cured or waived
            and shall be payable upon demand.

            5

            

            

            

            
                      (e)          
            Subject to the last sentence of this Section 1.5(e), Borrower shall have the
            option to (i) convert at any time all or any part of outstanding Term Loan B from Index
            Rate Loans to LIBOR Loans, (ii) convert any LIBOR Loan to an Index Rate Loan, subject
            to payment of LIBOR breakage costs in accordance with Section 1.13(b) if such
            conversion is made prior to the expiration of the LIBOR Period applicable thereto, or
            (iii) continue all or any portion of any Loan as a LIBOR Loan upon the expiration of
            the applicable LIBOR Period and the succeeding LIBOR Period of that continued Loan
            shall commence on the first day after the last day of the LIBOR Period of the Loan to
            be continued. Any Loan or group of Loans having the same proposed LIBOR Period to be
            made or continued as, or converted into, a LIBOR Loan must be in a minimum amount of
            $5,000,000 and integral multiples of $500,000 in excess of such amount. Any such
            election must be made by 12:00 p.m. (New York time) on the 3rd Business Day prior to
            (1) the date of any proposed Advance which is to bear interest at the LIBOR Rate, (2)
            the end of each LIBOR Period with respect to any LIBOR Loans to be continued as such,
            or (3) the date on which Borrower wishes to convert any Index Rate Loan to a LIBOR Loan
            for a LIBOR Period designated by Borrower in such election. If no election is received
            with respect to a LIBOR Loan by 12:00 p.m. (New York time) on the 3rd Business Day
            prior to the end of the LIBOR Period with respect thereto (or if a Default or an Event
            of Default has occurred and is continuing), that LIBOR Loan shall be converted to an
            Index Rate Loan at the end of its LIBOR Period. Borrower must make such election by
            notice to Agent in writing, by telecopy or overnight courier. In the case of any
            conversion or continuation, such election must be made pursuant to a written notice (a
            “Notice of Conversion/Continuation”) in the form of Exhibit
            1.5(e). No Loan may be made as or converted into a LIBOR Loan at any time that a
            Default or Event of Default exists and is continuing.

            
                      (f)          Notwithstanding
            anything to the contrary set forth in this Section 1.5, if a court of competent
            jurisdiction determines in a final order that the rate of interest payable hereunder
            exceeds the highest rate of interest permissible under law (the “Maximum
            Lawful Rate”), then so long as the Maximum Lawful Rate would be so exceeded,
            the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate;
            provided, however, that if at any time thereafter the rate of interest
            payable hereunder is less than the Maximum Lawful Rate, Borrower shall continue to pay
            interest hereunder at the Maximum Lawful Rate until such time as the total interest
            received by Agent, on behalf of Lenders, is equal to the total interest that would have
            been received had the interest rate payable hereunder been (but for the operation of
            this paragraph) the interest rate payable since the Closing Date as otherwise provided
            in this Agreement. Thereafter, interest hereunder shall be paid at the rate(s) of
            interest and in the manner provided in Sections 1.5(a) through (e), unless and
            until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this
            paragraph shall again apply. In no event shall the total interest received by any
            Lender pursuant to the terms hereof exceed the amount that such Lender could lawfully
            have received had the interest due hereunder been calculated for the full term hereof
            at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this
            paragraph, such interest shall be calculated at a daily rate equal to the Maximum
            Lawful Rate divided by the number of days in the year in which such calculation is
            made. If, notwithstanding the provisions of this Section 1.5(f), a court of
            competent jurisdiction shall finally determine that a Lender has received interest
            hereunder in excess of the Maximum Lawful Rate, Agent shall, to the extent permitted by
            applicable law, promptly apply such excess in the order specified in Section
            1.11 and thereafter shall refund any excess to Borrower or as a court of competent
            jurisdiction may otherwise order.

            6

            

            

            

            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        1.6

                    	
                        
                        Reserved.

                    
	
                         

                    
	
                         

                    	
                        1.7

                    	
                        
                        Reserved.

                    
	
                         

                    
	
                         

                    	
                        1.8

                    	
                        
                        Reserved.

                    
	
                         

                    
	
                         

                    	
                        1.9

                    	
                        
                        Fees.

                    

            
                                (a)          Borrower
            shall pay to Monroe, individually, the Fees specified in the Monroe Capital Fee Letter,
            at the times specified for payment therein.

            
                                (b)          If
            Borrower pays after acceleration or prepays all or any portion of the Term Loan B prior
            to the second anniversary of the Closing Date, whether voluntarily (other than pursuant
            to Voluntary Permitted Payments) or involuntarily (other than pursuant to mandatory
            prepayments under Sections 1.3(b)(i), 1.3(b)(ii)(A), 1.3(b)(iii)
            and 1.3(d)(ii)) and whether before or after acceleration of the Obligations,
            Borrower shall pay to Agent, for the benefit of Lenders as liquidated damages and
            compensation for the costs of being prepared to make funds available hereunder an
            amount equal to the Applicable Percentage (as defined below) multiplied by the
            principal amount of the Term Loan B paid after acceleration or prepaid. As used herein,
            the term “Applicable Percentage” shall mean (x) two percent (2.00%),
            in the case of a prepayment on or prior to the first anniversary of the Closing Date
            and (y) one percent (1.00%), in the case of a prepayment after the first anniversary of
            the Closing Date but on or prior to the second anniversary thereof. The Credit Parties
            agree that the Applicable Percentages are a reasonable calculation of Lenders’
            lost profits in view of the difficulties and impracticality of determining actual
            damages resulting from an early payment of the Term Loan B.

            
                                (c)          If
            Borrower has not delivered the financial statements required to be delivered pursuant
            to Section 4.1(a) under clause (q) of Annex E by December 1, 2007,
            Borrower shall pay to Agent, for the ratable benefit of Term B Lenders, a fee of
            $25,000. Borrower shall also pay a fee of $50,000 to Agent for the ratable benefit of
            Term B Lenders, on the first day of each month thereafter until such financial
            statements have been delivered

            
                                (d)          Unless
            (i) Holdings’ Funded Debt, on a consolidated basis, is at least $9,000,000 less
            than Holdings’ Funded Debt on the Closing Date after giving effect to the Related
            Transactions, (ii) the outstanding principal amount of the Term Loan B has been reduced
            to $20,000,000 or less and (iii) the Leverage Ratio for the twelve month period then
            most recently ended for which financial statements have been delivered pursuant to
            Section 4.1 is less than 3.75x, on or before the date for which a fee is due as set
            forth in the following grid, Borrowers shall pay to Agent, for the ratable benefit of
            the Term B Lenders, fees in the amounts and on the dates set forth in such grid;
            provided, that if on any date that such fee is due, Borrower’s Net Borrowing
            Availability after giving effect to the payment of such fee would be less than
            $500,000, Borrower shall pay such amount, if any, that results in Net Borrowing
            Availability of $500,000 and on each day thereafter Borrower shall pay such amount as
            may be paid without reducing Net Borrowing Availability to less than $500,000 until
            such fee is paid in full. After such date as all of the conditions set forth in (i),
            (ii) and (iii) have been satisfied, no further fees shall be due pursuant to this
            clause (d).

            7

            

            

            

            	
                         

                    	
                         

                    
	
                        
                        Date

                    	
                        
                        Fee

                    
	
                        

                    	
                        

                    
	
                        April 29,
                        2008

                    	
                        
                        $250,000

                    
	
                        July 29,
                        2008

                    	
                        
                        $500,000

                    
	
                        October 29, 2008 and
                        each 3

                        month anniversary of  October 29, 2008

                    	
                        
                        $750,000

                    

            
                      1.10          
            Receipt of Payments. Borrower shall make each payment under this Agreement not
            later than 2:00 p.m. (New York time) on the day when due in immediately available funds
            in Dollars to the Collection Account. For purposes of computing interest and Fees as of
            any date, all payments shall be deemed received on the First Business Day following the
            Business Day on which immediately available funds therefor are received in the
            Collection Account prior to 2:00 p.m. New York time. Payments received after 2:00 p.m.
            New York time on any Business Day or on a day that is not a Business Day shall be
            deemed to have been received on the following Business Day.

            
                      1.11          
            Application and Allocation of Payments. So long as no Default or Event of Default
            has occurred and is continuing, (i) payments matching specific scheduled payments then
            due shall be applied to those scheduled payments; (ii) voluntary prepayments shall be
            applied as determined by Borrower, subject to the provisions of Section 1.3(a);
            and (iii) mandatory prepayments shall be applied as set forth in Sections 1.3(c)
            and 1.3(d). All payments and prepayments applied to a particular Loan shall be
            applied ratably to the portion thereof held by each Lender as determined by its Pro
            Rata Share. As to any other payment, and as to all payments made when a Default or
            Event or Default has occurred and is continuing or following the Term Loan B Maturity
            Date, Borrower hereby irrevocably waives the right to direct the application of any and
            all payments received from or on behalf of Borrower, and Borrower hereby irrevocably
            agrees that Agent shall have the continuing exclusive right to apply any and all such
            payments against the Obligations as Agent may deem advisable notwithstanding any
            previous entry by Agent in the Loan Account or any other books and records. In the
            absence of a specific determination by Agent with respect thereto, payments shall be
            applied to amounts then due and payable in the following order: (1) to Fees and
            Agent’s expenses reimbursable hereunder; (2) to interest on the Loans, ratably in
            proportion to the interest accrued as to each Loan; (3) to principal payments on the
            Loans, ratably to the aggregate, combined principal balance of the Loans; and (4) to
            all other Obligations including expenses of Lenders to the extent reimbursable under
            Section 11.3.

            
                      1.12          
            Loan Account and Accounting. Agent shall maintain a loan account (the
            “Loan Account”) on its books to record: the Term Loan B, all
            payments made by Borrower, and all other debits and credits as provided in this
            Agreement with respect to the Loans or any other Obligations. All entries in the Loan
            Account shall be made in accordance with Agent’s customary accounting practices
            as in effect from time to time. The balance in the Loan Account, as recorded on
            Agent’s most recent printout or other written statement, shall, absent manifest
            error, be presumptive evidence of the amounts due and owing to Agent and Lenders
            by

            8

            

            

            

            Borrower; provided that
            any failure to so record or any error in so recording shall not limit or otherwise
            affect Borrower’s duty to pay the Obligations. Agent shall render to Borrower a
            monthly accounting of transactions with respect to the Loans setting forth the balance
            of the Loan Account for the immediately preceding month. Unless Borrower notifies Agent
            in writing of any objection to any such accounting (specifically describing the basis
            for such objection), within 30 days after the date thereof, each and every such
            accounting shall, absent manifest error, be deemed final, binding and conclusive on
            Borrower in all respects as to all matters reflected therein. Only those items
            expressly objected to in such notice shall be deemed to be disputed by Borrower.
            Notwithstanding any provision herein contained to the contrary, any Lender may elect
            (which election may be revoked) to dispense with the issuance of Notes to that Lender
            and may rely on the Loan Account as evidence of the amount of Obligations from time to
            time owing to it.

            
                      1.13          
            Indemnity.

            
                                          (a)          Each
            Credit Party that is a signatory hereto shall jointly and severally indemnify and hold
            harmless each of Agent, Lenders and their respective Affiliates, and each such
            Person’s respective officers, directors, employees, attorneys, agents and
            representatives (each, an “Indemnified Person”), from and against
            any and all suits, actions, proceedings, claims, damages, losses, liabilities and
            expenses (including reasonable attorney’s fees and disbursements and other costs
            of investigation or defense, including those incurred upon any appeal) that may be
            instituted or asserted against or incurred by any such Indemnified Person as the result
            of credit having been extended, suspended or terminated under this Agreement and the
            other Loan Documents and the administration of such credit, and in connection with or
            arising out of the transactions contemplated hereunder and thereunder and any actions
            or failures to act in connection therewith, including any and all Environmental
            Liabilities and legal costs and expenses arising out of or incurred in connection with
            disputes between or among any parties to any of the Loan Documents
            (collectively, “Indemnified Liabilities”); provided, that no
            such Credit Party shall be liable for any indemnification to an Indemnified Person to
            the extent that any such suit, action, proceeding, claim, damage, loss, liability or
            expense results from that Indemnified Person’s gross negligence or willful
            misconduct. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO
            ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR
            ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT,
            PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT
            HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF
            ANY OTHER TRANSACTION CONTEMPLATED

            HEREUNDER OR THEREUNDER.

            
                                          (b)          To
            induce Lenders to provide the LIBOR Rate option on the terms provided herein, if (i)
            any LIBOR Loans are repaid in whole or in part prior to the last day of any applicable
            LIBOR Period (whether that repayment is made pursuant to any provision of this
            Agreement or any other Loan Document or occurs as a result of acceleration, by
            operation of law or otherwise); (ii) Borrower shall default in payment when due of the
            principal amount of or interest on any LIBOR Loan; (iii) Borrower shall refuse to
            accept any borrowing of, or shall request a termination of any borrowing, conversion
            into or continuation of LIBOR Loans after

            9

            

            

            

            Borrower has given notice
            requesting the same in accordance herewith; or (iv) Borrower shall fail to make any
            prepayment of a LIBOR Loan after Borrower has given a notice thereof in accordance
            herewith, then Borrower shall indemnify and hold harmless each Lender from and against
            all losses, costs and expenses resulting from or arising from any of the foregoing.
            Such indemnification shall include any loss (including loss of margin) or expense
            arising from the reemployment of funds obtained by it or from fees payable to terminate
            deposits from which such funds were obtained. For the purpose of calculating amounts
            payable to a Lender under this subsection, each Lender shall be deemed to have actually
            funded its relevant LIBOR Loan through the purchase of a deposit bearing interest at
            the LIBOR Rate in an amount equal to the amount of that LIBOR Loan and having a
            maturity comparable to the relevant LIBOR Period; provided, that each Lender may
            fund each of its LIBOR Loans in any manner it sees fit, and the foregoing assumption
            shall be utilized only for the calculation of amounts payable under this subsection.
            This covenant shall survive the termination of this Agreement and the payment of the
            Notes and all other amounts payable hereunder. As promptly as practicable under the
            circumstances, each Lender shall provide Borrower with its written calculation of all
            amounts payable pursuant to this Section 1.13(b), and such calculation shall be
            binding on the parties hereto unless Borrower shall object in writing within 10
            Business Days of receipt thereof, specifying the basis for such objection in
            detail.

            
                      1.14
                      Access. Each Credit
            Party that is a party hereto shall, during normal business hours, from time to time
            upon 1 Business Day’s prior notice as frequently as Agent determines to be
            appropriate: (a) provide Agent and any of its officers, employees and agents access to
            its properties, facilities, advisors and employees (including officers) of each Credit
            Party and to the Collateral, (b) permit Agent, and any of its officers, employees and
            agents, to inspect, audit and make extracts from any Credit Party’s books and
            records, and (c) permit Agent, and its officers, employees and agents, to inspect,
            review, evaluate and make test verifications and counts of the Accounts, Inventory and
            other Collateral of any Credit Party. If a Default or Event of Default has occurred and
            is continuing or if access is necessary to preserve or protect the Collateral as
            determined by the Agent, each such Credit Party shall provide such access to Agent and
            to each Lender at all times and without advance notice. Furthermore, so long as any
            Event of Default has occurred and is continuing, Borrower shall provide Agent and each
            Lender with access to its suppliers and customers. Each Credit Party shall make
            available to Agent and its counsel, as quickly as is possible under the circumstances,
            originals or copies of all books and records that Agent may reasonably request. Each
            Credit Party shall deliver any document or instrument necessary for Agent, as it may
            from time to time request, to obtain records from any service bureau or other Person
            that maintains records for such Credit Party, and shall maintain duplicate records or
            supporting documentation on media, including computer tapes and discs owned by such
            Credit Party. Agent will give Lenders at least 5 days’ prior written notice of
            regularly scheduled audits. Representatives of other Lenders may accompany
            Agent’s representatives on regularly scheduled audits at no charge to
            Borrower.

            
                      1.15          
            Taxes.

            
                                       (a)          Any
            and all payments by Borrower hereunder or under the Notes shall be made, in accordance
            with this Section 1.15, free and clear of and without deduction for any and all
            present or future Taxes. If Borrower shall be required by law to deduct any Taxes from
            or in respect of any sum payable hereunder or under the Notes, (i) the sum payable
            shall be increased

            10

            

            

            

            as much as shall be necessary so
            that after making all required deductions (including deductions applicable to
            additional sums payable under this Section 1.15) Agent or Lenders, as
            applicable, receive an amount equal to the sum they would have received had no such
            deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower
            shall pay the full amount deducted to the relevant taxing or other authority in
            accordance with applicable law. Within 30 days after the date of any payment of Taxes,
            Borrower shall furnish to Agent the original or a certified copy of a receipt
            evidencing payment thereof. Agent and Lenders shall not be obligated to return or
            refund any amounts received pursuant to this Section.

            
                                     (b)          Each
            Credit Party that is a signatory hereto shall indemnify and, within 10 days of demand
            therefor, pay Agent and each Lender for the full amount of Taxes (including any Taxes
            imposed by any jurisdiction on amounts payable under this Section 1.15) paid by
            Agent or such Lender, as appropriate, and any liability (including penalties, interest
            and expenses) arising therefrom or with respect thereto, whether or not such Taxes were
            correctly or legally asserted.

            
                                     (c)          Each
            Lender organized under the laws of a jurisdiction outside the United States (a
            “Foreign Lender”) as to which payments to be made under this
            Agreement or under the Notes are exempt from United States withholding tax under an
            applicable statute or tax treaty shall provide to Borrower and Agent a properly
            completed and executed IRS Form W-8ECI or Form W-8BEN or other applicable form,
            certificate or document prescribed by the IRS or the United States certifying as to
            such Foreign Lender’s entitlement to such exemption (a “Certificate of
            Exemption”). Any foreign Person that seeks to become a Lender under this
            Agreement shall provide a Certificate of Exemption to Borrower and Agent prior to
            becoming a Lender hereunder. No foreign Person may become a Lender hereunder if such
            Person fails to deliver a Certificate of Exemption in advance of becoming a
            Lender.

            
                      1.16          
            Capital Adequacy; Increased Costs; Illegality.

            
                                     (a)
                      If any Lender shall have
            determined that any law, treaty, governmental (or quasi-governmental) rule, regulation,
            guideline or order regarding capital adequacy, reserve requirements or similar
            requirements or compliance by any Lender with any request or directive regarding
            capital adequacy, reserve requirements or similar requirements (whether or not having
            the force of law), in each case, adopted after the Closing Date, from any central bank
            or other Governmental Authority increases or would have the effect of increasing the
            amount of capital, reserves or other funds required to be maintained by such Lender and
            thereby reducing the rate of return on such Lender’s capital as a consequence of
            its obligations hereunder, then Borrower shall from time to time upon demand by such
            Lender (with a copy of such demand to Agent) pay to Agent, for the account of such
            Lender, additional amounts sufficient to compensate such Lender for such reduction. A
            certificate as to the amount of that reduction and showing the basis of the computation
            thereof submitted by such Lender to Borrower and to Agent shall, absent manifest error,
            be final, conclusive and binding for all purposes. Each Lender agrees that, as promptly
            as practicable after it becomes aware of any circumstances referred to above which
            would result in any such compensation to such Lender for such reduction, the affected
            Lender shall, to the extent not inconsistent with such Lender’s internal policies
            of general application, use reasonable commercial efforts to minimize compensation
            payable to it by Borrower pursuant to this Section 1.16(a).

            11

            

            

            

            
                                     (b)          If,
            due to either (i) the introduction of or any change in any law or regulation (or any
            change in the interpretation thereof) or (ii) the compliance with any guideline or
            request from any central bank or other Governmental Authority (whether or not having
            the force of law), in each case adopted after the Closing Date, there shall be any
            increase in the cost to any Lender of agreeing to make or making, funding or
            maintaining any Loan, then Borrower shall from time to time, upon demand by such Lender
            (with a copy of such demand to Agent), pay to Agent for the account of such Lender
            additional amounts sufficient to compensate such Lender for such increased cost. A
            certificate as to the amount of such increased cost, submitted to Borrower and to Agent
            by such Lender, shall be conclusive and binding on Borrower for all purposes, absent
            manifest error. Each Lender agrees that, as promptly as practicable after it becomes
            aware of any circumstances referred to above which would result in any such increased
            cost, the affected Lender shall, to the extent not inconsistent with such
            Lender’s internal policies of general application, use reasonable commercial
            efforts to minimize costs and expenses incurred by it and payable to it by Borrower
            pursuant to this Section 1.16(b).

            
                                     (c)          Notwithstanding
            anything to the contrary contained herein, if the introduction of or any change in any
            law or regulation (or any change in the interpretation thereof) shall make it unlawful,
            or any central bank or other Governmental Authority shall assert that it is unlawful,
            for any Lender to agree to make or to make or to continue to fund or maintain any LIBOR
            Loan, then, unless that Lender is able to make or to continue to fund or to maintain
            such LIBOR Loan at another branch or office of that Lender without, in that
            Lender’s opinion, adversely affecting it or its Loans or the income obtained
            therefrom, on notice thereof and demand therefor by such Lender to Borrower through
            Agent, (i) the obligation of such Lender to agree to make or to make or to continue to
            fund or maintain LIBOR Loans shall terminate and (ii) Borrower shall forthwith prepay
            in full all outstanding LIBOR Loans owing to such Lender, together with interest
            accrued thereon, unless Borrower, within 5 Business Days after the delivery of
            such notice and demand, converts all LIBOR Loans into Index Rate Loans.

            
                                     (d)          Within
            15 days after receipt by Borrower of written notice and demand from any Lender (an
            “Affected Lender”) for payment of additional amounts or increased
            costs as provided in Sections 1.15(a), 1.16(a) or 1.16(b), Borrower may, at its
            option, notify Agent and such Affected Lender of its intention to replace the Affected
            Lender. So long as no Default or Event of Default has occurred and is continuing,
            Borrower, with the consent of Agent, may obtain, at Borrower’s expense, a
            replacement Lender (“Replacement Lender”) for the Affected Lender,
            which Replacement Lender must be reasonably satisfactory to Agent. If Borrower obtains
            a Replacement Lender within 90 days following notice of its intention to do so, the
            Affected Lender must sell and assign its Loans and Commitments to such Replacement
            Lender for an amount equal to the principal balance of all Loans held by the Affected
            Lender and all accrued interest and Fees with respect thereto through the date of such
            sale; provided, that Borrower shall have reimbursed such Affected Lender for the
            additional amounts or increased costs that it is entitled to receive under this
            Agreement through the date of such sale and assignment. Notwithstanding the foregoing,
            Borrower shall not have the right to obtain a Replacement Lender if the Affected Lender
            rescinds its demand for increased costs or additional amounts within 15 days following
            its receipt of Borrower’s notice of intention to replace such Affected Lender.
            Furthermore, if Borrower gives a notice of intention to replace and does not so replace
            such Affected Lender within 90 days thereafter, Borrower’s rights under this
            Section

            12

            

            

            

            1.16(d) shall terminate
            and Borrower shall promptly pay all increased costs or additional amounts demanded by
            such Affected Lender pursuant to Sections 1.15(a), 1.16(a) and
            1.16(b).

            
            2.          CONDITIONS
            PRECEDENT

            
                         2.1          
            Conditions to the Initial Loans. No Lender shall be obligated to make any Loan on
            the Closing Date, or to take, fulfill, or perform any other action hereunder, until the
            following conditions have been satisfied or provided for in a manner satisfactory to
            Agent, or waived in writing by Agent and Lenders:

            
                                     (a)          
            Credit Agreement; Loan Documents. This Agreement or counterparts hereof shall have
            been duly executed by, and delivered to, Borrower, each other Credit Party, Agent and
            Lenders; and Agent shall have received such documents, instruments, agreements and
            legal opinions as Agent shall reasonably request in connection with the transactions
            contemplated by this Agreement and the other Loan Documents, including all those listed
            in the Closing Checklist attached hereto as Annex D, each in form and substance
            reasonably satisfactory to Agent.

            
                                     (b)          
            Approvals. Agent shall have received (i) satisfactory evidence that the Credit
            Parties have obtained all required consents and approvals of all Persons including all
            requisite Governmental Authorities, to the execution, delivery and performance of this
            Agreement and the other Loan Documents or (ii) an officer’s certificate in form
            and substance reasonably satisfactory to Agent affirming that no such consents or
            approvals are required.

            
                                     (c)          
            Opening Availability. The Eligible Accounts and Eligible Pending Accounts
            Receivable and Fixed Contract Accounts Receivable and the amount of the Reserves (if
            any) (each such term as defined in the First Lien Credit Agreement) on the Closing Date
            shall be sufficient in value, as determined by Agent, to provide Borrower with
            Borrowing Availability (as defined in the First Lien Credit Agreement) (on a pro forma
            basis, with trade payables being paid currently (and in no event more than 60 days past
            due), and expenses and liabilities being paid in the ordinary course of business and
            without acceleration of sales) of at least $5,000,000.

            
                                     (d)          
            Payment of Fees. Borrower shall have paid the Fees required to be paid on the
            Closing Date in the respective amounts specified in Section 1.9 (including the
            Fees specified in the Monroe Capital Fee Letter), and shall have reimbursed Agent for
            all fees, costs and expenses of closing presented as of the Closing Date.

            
                                     (e)          
            Capital Structure: Other Indebtedness. The capital structure of each Credit Party
            and the terms and conditions of all Indebtedness of each Credit Party shall be
            acceptable to Agent in its sole discretion. Without limiting the foregoing, the terms
            of Holdings existing Series A preferred stock shall be amended in a manner satisfactory
            to Agent in its sole discretion.

            
                                     (f)          
            Due Diligence. Agent shall have completed its business and legal due diligence,
            including:

            
                                                   (i)          completion
            by Agent of a diligence call with Holdings’ auditors regarding the 2006 financial
            statements;

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                                          (ii)          completion
            by Agent of customer calls and satisfaction by Agent with the results
            thereof;

            
                                          (iii)        receipt
            and satisfactory review by Agent of an environmental records search of the Montvale
            Property; and

            
                                          
            (iv)       receipt and satisfactory review by Agent
            of the most recent collateral survey performed by or for the benefit of the First Lien
            Agent.

            
                           (g)         
            First Lien Credit Agreement. Agent shall have received executed or conformed copy
            of the First Lien Credit Agreement and the other Loan Documents (as defined therein)
            and any amendments thereto made on or prior to the Closing Date, and, in each case, the
            terms and provisions thereof and all documents and instruments relating thereto shall
            be satisfactory to Agent;

            
                           (h)
                     Projections. Agent shall
            be satisfied with the form and substance of the Projections.

            
                           (i)
                     Closing Financial
            Position. Agent shall have received evidence that (i) Holdings’ EBITDA for
            the twelve month period ending June 30, 2007 was not less than $13,600,000, and (ii)
            Holdings’ Leverage Ratio for the twelve month period ending June 30, 2007, but
            giving pro forma effect to the Related Transactions and the incurrence of the Term Loan
            B is not more than 4.25x.

            
                           
            (j)          Montvale Property
            Appraisal. Agent shall have received an appraisal in form and substance acceptable
            to Agent of the Montvale Property from an appraiser acceptable to Agent which shows a
            fair market value for such property of at least $10,000,000.

            
                           (k)
                     Representations and
            Warranties. Each representation or warranty by any Credit Party contained herein or
            in any other Loan Document is true and correct as of such date, except to the extent
            that such representation or warranty expressly relates to an earlier date;

            
                           (1)
                     Material Adverse Effect.
            No Material Adverse Effect has occurred and there has not been any material disruption
            or general adverse development in the financial, banking or capital markets, as
            determined by Agent in its sole discretion; and

            
                           (m)
                     No Default. No Default or
            Event of Default has occurred and is continuing or would result after giving effect to
            the Term Loan B.

            The incurrence of any Term Loan
            B shall be deemed to constitute, as of the date thereof, a representation and warranty
            by Borrower that the conditions in Sections 2.1(k)-(m) have been
            satisfied.

            3.
                      REPRESENTATIONS AND
            WARRANTIES

            
                                To
            induce Lenders to enter into this Agreement and to make the Loans, the Credit Parties
            executing this Agreement, jointly and severally, make the following representations
            and

            14

            

            

            

            warranties to Agent and each
            Lender with respect to all Credit Parties, each and all of which shall survive the
            execution and delivery of this Agreement.

            
                      3.1          
            Corporate Existence; Compliance with Law. Each Credit Party (a) is a corporation,
            limited liability company or limited partnership duly organized, validly existing and
            in good standing under the laws of its respective jurisdiction of incorporation or
            organization set forth in Disclosure Schedule 3.1; (b) is duly qualified to
            conduct business and is in good standing in each other jurisdiction where its ownership
            or lease of property or the conduct of its business requires such qualification, except
            where the failure to be so qualified would not result in exposure to losses, damages or
            liabilities in excess of $75,000; (c) has the requisite power and authority and the
            legal right to own, pledge, mortgage or otherwise encumber and operate its properties,
            to lease the property it operates under lease and to conduct its business as now,
            heretofore and proposed to be conducted; (d) subject to specific representations
            regarding Environmental Laws, has all material licenses, permits, consents or approvals
            from or by, and has made all material filings with, and has given all material notices
            to, all Governmental Authorities having jurisdiction, to the extent required for such
            ownership, operation and conduct; (e) is in compliance with its charter and bylaws or
            partnership or operating agreement, as applicable; and (f) subject to specific
            representations set forth herein regarding ERISA, Environmental Laws, tax and other
            laws, is in compliance with all applicable provisions of law, except where the failure
            to comply, individually or in the aggregate, could not reasonably be expected to have a
            Material Adverse Effect.

            
                      3.2          
            Executive Offices, Collateral Locations, FEIN. As of the Closing Date, each Credit
            Party’s name as it appears in official filings in its state of incorporation,
            state of incorporation or organization, organization type, organization number, if any,
            issued by its state of incorporation or organization, and the current location of each
            Credit Party’s chief executive office and the premises at which any Collateral is
            located are set forth in Disclosure Schedule 3.2, and except as set forth on
            Disclosure Schedule 3.2, none of such locations has changed within 12 months
            preceding the Closing Date. In addition, Disclosure Schedule 3.2 lists the
            federal employer identification number and the organizational identification number of
            each Credit Party.

            
                      3.3          
            Corporate Power, Authorization, Enforceable Obligations. The execution, delivery
            and performance by each Credit Party of the Loan Documents to which it is a party and
            the creation of all Liens provided for therein: (a) are within such Person’s
            power; (b) have been duly authorized by all necessary corporate, limited liability
            company or limited partnership action; (c) do not contravene any provision of such
            Person’s charter, bylaws or partnership or operating agreement as applicable; (d)
            do not violate any law or regulation, or any order or decree of any court or
            Governmental Authority; (e) do not conflict with or result in the breach or termination
            of, constitute a default under or accelerate or permit the acceleration of any
            performance required by, any indenture, mortgage, deed of trust, lease, agreement or
            other instrument to which such Person is a party or by which such Person or any of its
            property is bound; (f) do not result in the creation or imposition of any Lien upon any
            of the property of such Person other than those in favor of Agent, on behalf of itself
            and Lenders, pursuant to the Loan Documents and those in favor of the First Lien Agent;
            and (g) do not require the consent or approval of any Governmental Authority or any
            other Person, except those referred to in Section 2.l(b), all of which will have
            been duly obtained, made or complied with prior to the Closing

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            Date. Each of the Loan Documents
            shall be duly executed and delivered by each Credit Party that is a party thereto and
            each such Loan Document shall constitute a legal, valid and binding obligation of such
            Credit Party enforceable against it in accordance with its terms.

            
                      3.4          
            Financial Statements and Projections. All Financial Statements concerning Borrower
            and its Subsidiaries that are referred to below have been prepared in accordance with
            GAAP consistently applied throughout the periods covered (except as disclosed therein
            and except, with respect to unaudited Financial Statements, for the absence of
            footnotes and normal year-end audit adjustments) and present fairly in all material
            respects the financial position of the Persons covered thereby as at the dates thereof
            and the results of their operations and cash flows for the periods then
            ended.

            
                                     (a)          
            Financial Statements. The following Financial Statements attached hereto as
            Disclosure Schedule 3.4(a) have been delivered on the date hereof:

            
                                                    (i)          The
            unaudited consolidated and consolidating balance sheets at December 31, 2006 and the
            related statement of income and cash flows of Borrower and its Subsidiaries for the
            Fiscal Year then ended.

            
                                                    (ii)          The
            unaudited balance sheet at June 30, 2007 and the related statement of income and cash
            flows of Borrower and its Subsidiaries for the Fiscal Quarter then ended.

            
                                     (b)          
            Pro Forma. The Pro Forma delivered on the date hereof and attached hereto as
            Disclosure Schedule 3.4(b) was prepared by Borrower giving pro forma
            effect to the Related Transactions, was based on the unaudited consolidated and
            consolidating balance sheets of Borrower and its Subsidiaries dated June 30, 2007, and
            was prepared in accordance with GAAP, with only such adjustments thereto as would be
            required in accordance with GAAP.

            
                                     (c)          
            Projections. The Projections delivered on the date hereof and attached hereto as
            Disclosure Schedule 3.4(c) were prepared by Borrower based on the
            Borrower’s good faith estimate of the future financial performance of the
            Borrower and its Subsidiaries using assumptions believed by the Borrower to be
            reasonable.

            
                      3.5          
            Material Adverse Effect. Between December 31, 2006 and the Closing Date, (a) no
            Credit Party has incurred any obligations, contingent or noncontingent liabilities,
            liabilities for Charges, long-term leases or unusual forward or long-term commitments
            that are not reflected in the Pro Forma and that, alone or in the aggregate, could
            reasonably be expected to have a Material Adverse Effect, (b) no contract, lease or
            other agreement or instrument has been entered into by any Credit Party or has become
            binding upon any Credit Party’s assets and no law or regulation applicable to any
            Credit Party has been adopted that has had or could reasonably be expected to have a
            Material Adverse Effect, and (c) no Credit Party is in default and to the best of
            Borrower’s knowledge no third party is in default under any material contract,
            lease or other agreement or instrument, that alone or in the aggregate could reasonably
            be expected to have a Material Adverse Effect. Between December 31, 2006 and the
            Closing Date no event has occurred, that alone or together with other events, could
            reasonably be expected to have a Material Adverse Effect.

            16

            

            

            

            
                      3.6          
            Ownership of Property; Liens. As of the Closing Date, the real estate
            (“Real Estate”) listed in Disclosure Schedule 3.6
            constitutes all of the real property owned, leased, subleased, or used by any Credit
            Party. Each Credit Party owns good and marketable fee simple title to all of its owned
            Real Estate, and valid and marketable leasehold interests in all of its leased Real
            Estate, all as described on Disclosure Schedule 3.6, and copies of all such
            leases or a summary of terms thereof reasonably satisfactory to Agent have been made
            available to Agent. Disclosure Schedule 3.6 further describes any Real Estate
            with respect to which any Credit Party is a lessor, sublessor or assignor as of the
            Closing Date. Each Credit Party also has good and marketable title to, or valid
            leasehold interests in, all of its personal property and assets. As of the Closing
            Date, none of the properties and assets of any Credit Party are subject to any Liens
            other than as set forth on Disclosure Schedule 3.6 and other than Permitted
            Encumbrances, and there are no facts, circumstances or conditions known to any Credit
            Party that may result in any Liens (including Liens arising under Environmental Laws)
            other than as set forth on Disclosure Schedule 3.6 and other than Permitted
            Encumbrances. Each Credit Party has received all deeds, assignments, waivers, consents,
            nondisturbance and attornment or similar agreements, bills of sale and other documents,
            and has duly effected all recordings, filings and other actions necessary to establish,
            protect and perfect such Credit Party’s right, title and interest in and to all
            such Real Estate and other properties and assets. Disclosure Schedule 3.6 also
            describes any purchase options, rights of first refusal or other similar contractual
            rights pertaining to any Real Estate. As of the Closing Date, no portion of any Credit
            Party’s Real Estate has suffered any material damage by fire or other casualty
            loss that has not heretofore been repaired and restored in all material respects to its
            original condition or otherwise remedied. As of the Closing Date, all material permits
            required to have been issued or appropriate to enable the Real Estate to be lawfully
            occupied and used for all of the purposes for which it is currently occupied and used
            have been lawfully issued and are in full force and effect.

            
                      3.7          
            Labor Matters. As of the Closing Date (a) no strikes or other material labor
            disputes against any Credit Party are pending or, to any Credit Party’s
            knowledge, threatened; (b) hours worked by and payment made to employees of each Credit
            Party comply with the Fair Labor Standards Act and each other federal, state, local or
            foreign law applicable to such matters; (c) all payments due from any Credit Party for
            employee health and welfare insurance have been paid or accrued as a liability on the
            books of such Credit Party; (d) except as set forth in Disclosure Schedule 3.7,
            no Credit Party is a party to or bound by any collective bargaining agreement,
            management agreement, consulting agreement, employment agreement, bonus, restricted
            stock, stock option, or stock appreciation plan or agreement or any similar plan,
            agreement or arrangement (and true and complete copies of any agreements described on
            Disclosure Schedule 3.7 have been made available to Agent); (e) except as set
            forth on Disclosure Schedule 3.7, there is no organizing activity involving any
            Credit Party pending or, to any Credit Party’s knowledge, threatened by any labor
            union or group of employees; (f) except as set forth on Disclosure Schedule 3.7,
            there are no representation proceedings pending or, to any Credit Party’s
            knowledge, threatened with the National Labor Relations Board, and no labor
            organization or group of employees of any Credit Party has made a pending demand for
            recognition; and (g) except as set forth in Disclosure Schedule 3.7, there are
            no material complaints or charges against any Credit Party pending or, to the knowledge
            of any Credit Party, threatened to be filed with any Governmental Authority or
            arbitrator based on, arising out of, in connection with, or otherwise relating to the
            employment or termination of employment by any Credit Party of any
            individual.

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                      3.8          
            Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness. Except
            as set forth in Disclosure Schedule 3.8, as of the Closing Date, no Credit Party
            has any Subsidiaries, is engaged in any joint venture or partnership with any other
            Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock
            of each Credit Party is owned by each of the Stockholders and in the amounts set forth
            in Disclosure Schedule 3.8. Except as set forth in Disclosure Schedule
            3.8, there are no outstanding rights to purchase, options, warrants or similar
            rights or agreements pursuant to which any Credit Party may be required to issue, sell,
            repurchase or redeem any of its Stock or other equity securities or any Stock or other
            equity securities of its Subsidiaries. All outstanding Indebtedness and Guaranteed
            Indebtedness of each Credit Party as of the Closing Date (except for the Obligations)
            is described in Section 6.3 (including Disclosure Schedule 6.3). Each of
            AAC Corp. and Sylvan Insurance Co., Ltd. are wholly owned Subsidiaries of Holdings
            which are inactive and have no assets or any Indebtedness or Guaranteed
            Indebtedness.

            
                      3.9          
            Government Regulation. No Credit Party is an “investment company” or an
            “affiliated person” of, or “promoter” or “principal
            underwriter” for, an “investment company,” as such terms are defined
            in the Investment Company Act of 1940. The making of the Loans by Lenders to Borrower,
            the application of the proceeds thereof and repayment thereof and the consummation of
            the Related Transactions will not violate any provision of any such statute or any
            rule, regulation or order issued by the Securities and Exchange Commission.

            
                      3.10          
            Margin Regulations. No Credit Party is engaged, nor will it engage, principally or
            as one of its important activities, in the business of extending credit for the purpose
            of “purchasing” or “carrying” any “margin stock” as
            such terms are defined in Regulation U of the Federal Reserve Board as now and from
            time to time hereafter in effect (such securities being referred to herein as
            “Margin Stock”). No Credit Party owns any Margin Stock, and none of
            the proceeds of the Loans or other extensions of credit under this Agreement will be
            used, directly or indirectly, for the purpose of purchasing or carrying any Margin
            Stock, for the purpose of reducing or retiring any Indebtedness that was originally
            incurred to purchase or carry any Margin Stock or for any other purpose that might
            cause any of the Loans or other extensions of credit under this Agreement to be
            considered a “purpose credit” within the meaning of Regulations T, U or X
            of the Federal Reserve Board. No Credit Party will take or permit to be taken any
            action that might cause any Loan Document to violate any regulation of the Federal
            Reserve Board.

            
                      3.11          
            Taxes. All tax returns, reports and statements, including information returns,
            required by any Governmental Authority to be filed by any Credit Party have been filed
            with the appropriate Governmental Authority and all Charges have been paid prior to the
            date on which any fine, penalty, interest or late charge may be added thereto for
            nonpayment thereof (or any such fine, penalty, interest, late charge or loss has been
            paid), excluding Charges or other amounts being contested in accordance with Section
            5.2(b). Proper and accurate amounts have been withheld by each Credit Party from
            its respective employees for all periods in full and complete compliance with all
            applicable federal, state, local and foreign laws and such withholdings have been
            timely paid to the respective Governmental Authorities. Disclosure Schedule 3.11
            sets forth as of the Closing Date those taxable years for which any Credit
            Party’s tax returns are currently being audited by the IRS or any other
            applicable Governmental Authority and any assessments or threatened assessments in
            connection with such audit, or

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            otherwise currently outstanding.
            Except as described in Disclosure Schedule 3.11, no Credit Party has executed or
            filed with the IRS or any other Governmental Authority any agreement or other document
            extending, or having the effect of extending, the period for assessment or collection
            of any Charges. None of the Credit Parties and their respective predecessors are liable
            for any Charges: (a) under any agreement (including any tax sharing agreements) or (b)
            to each Credit Party’s knowledge, as a transferee. As of the Closing Date, no
            Credit Party has agreed or been requested to make any adjustment under IRC Section 481
            (a), by reason of a change in accounting method or otherwise, which would have a
            Material Adverse Effect.

            
                      3.12          
            ERISA.

            
                                     (a)          
            Disclosure Schedule 3.12 lists all Plans and separately identifies all Pension
            Plans, including Title IV Plans, Multiemployer Plans, ESOPs and Welfare Plans,
            including all Retiree Welfare Plans. Copies of all such listed Plans, together with a
            copy of the latest form IRS/DOL 5500-series for each such Plan have been made available
            to Agent. Except with respect to Multiemployer Plans, each Qualified Plan has been
            determined by the IRS to qualify under Section 401 of the IRC, the trusts created
            thereunder have been determined to be exempt from tax under the provisions of Section
            501 of the IRC, and nothing has occurred that would cause the loss of such
            qualification or tax-exempt status. Each Plan is in compliance with the applicable
            provisions of ERISA and the IRC, including the timely filing of all reports required
            under the IRC or ERISA, including the statement required by 29 CFR Section 2520.104-23.
            Neither any Credit Party nor ERISA Affiliate has failed to make any contribution or pay
            any amount due as required by either Section 412 of the IRC or Section 302 of ERISA or
            the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has engaged in
            a “prohibited transaction,” as defined in Section 406 of ERISA and Section
            4975 of the IRC, in connection with any Plan, that would subject any Credit Party to a
            material tax on prohibited transactions imposed by Section 502(i) of ERISA or Section
            4975 of the IRC.

            
                                     (b)          Except
            as set forth in Disclosure Schedule 3.12: (i) no Title IV Plan has any Unfunded
            Pension Liability; (ii) no ERISA Event or event described in Section 4062(e) of ERISA
            with respect to any Title IV Plan has occurred or is reasonably expected to occur;
            (iii) there are no pending, or to the knowledge of any Credit Party, threatened claims
            (other than claims for benefits in the normal course), sanctions, actions or lawsuits,
            asserted or instituted against any Plan or any Person as fiduciary or sponsor of any
            Plan; (iv) no Credit Party or ERISA Affiliate has incurred or reasonably expects to
            incur any liability as a result of a complete or partial withdrawal from a
            Multiemployer Plan; (v) within the last five years no Title IV Plan of any Credit Party
            or ERISA Affiliate has been terminated, whether or not in a “standard
            termination” as that term is used in Section 404(b)(l) of ERISA, nor has any
            Title IV Plan of any Credit Party or ERISA Affiliate (determined at any time within the
            past five years) with Unfunded Pension Liabilities been transferred outside of the
            “controlled group” (within the meaning of Section 4001(a)(14) of ERISA) of
            any Credit Party or ERISA Affiliate; (vi) except in the case of any ESOP, Stock of all
            Credit Parties and their ERISA Affiliates makes up, in the aggregate, no more than 10%
            of fair market value of the assets of any Plan measured on the basis of fair market
            value as of the latest valuation date of any Plan; and (vii) no liability under any
            Title IV Plan has been satisfied with the purchase of a contract from an insurance
            company that is not rated AAA by the Standard & Poor’s Corporation or an
            equivalent rating by another nationally recognized rating agency.

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                      3.13      
            No Litigation. No action, claim, lawsuit, demand, investigation or proceeding is
            now pending or, to the knowledge of any Credit Party, threatened against any Credit
            Party, before any Governmental Authority or before any arbitrator or panel of
            arbitrators (collectively, “Litigation”), (a) that challenges any
            Credit Party’s right or power to enter into or perform any of its obligations
            under the Loan Documents to which it is a party, or the validity or enforceability of
            any Loan Document or any action taken thereunder, or (b) that has a reasonable risk of
            being determined adversely to any Credit Party and that, if so determined, could
            reasonably be expected to have a Material Adverse Effect. Except as set forth on
            Disclosure Schedule 3.13. as of the Closing Date there is no Litigation pending
            or threatened that seeks damages in excess of $500,000 or injunctive relief against, or
            alleges criminal misconduct of, any Credit Party.

            
                      3.14      
            Brokers. Except as set forth on Disclosure Schedule 3.14, no broker or
            finder acting on behalf of any Credit Party or Affiliate thereof brought about the
            obtaining, making or closing of the credit extended pursuant to the First Lien Credit
            Agreement or this Agreement or the transactions contemplated by the Loan Documents, and
            no Credit Party or Affiliate thereof has any obligation to any Person in respect of any
            finder’s or brokerage fees in connection therewith.

            
                      3.15      
            Intellectual Property. As of the Closing Date, each Credit Party owns or has rights
            to use all Intellectual Property necessary to continue to conduct its business as now
            or heretofore conducted by it or proposed to be conducted by it, and each Patent,
            Trademark, Copyright and License is listed, together with application or registration
            numbers, as applicable, in Disclosure Schedule 3.15. Each Credit Party conducts
            its business and affairs without infringement of or interference with any Intellectual
            Property of any other Person in any material respect. Except as set forth in
            Disclosure Schedule 3.15, no Credit Party is aware of any infringement claim by
            any other Person with respect to any Intellectual Property.

            
                      3.16      
            Full Disclosure. No information contained in this Agreement, any of the other Loan
            Documents, Financial Statements or Collateral Reports or other written reports from
            time to time delivered hereunder or any written statement furnished by or on behalf of
            any Credit Party to Agent or any Lender pursuant to the terms of this Agreement
            contains or will contain any untrue statement of a material fact or omits or will omit
            to state a material fact necessary to make the statements contained herein or therein
            not misleading in light of the circumstances under which they were made. Projections
            from time to time delivered hereunder are or will be based upon the estimates and
            assumptions stated therein, all of which Borrower believed at the time of delivery to
            be reasonable and fair in light of current conditions and current facts known to
            Borrower as of such delivery date, and reflect Borrower’s good faith and
            reasonable estimates of the future financial performance of Borrower and of the other
            information projected therein for the period set forth therein. The Liens granted to
            Agent, on behalf of itself and Lenders, pursuant to the Collateral Documents will at
            all times be fully perfected Liens in and to the Collateral described therein, subject,
            as to priority, only to Liens created by the First Lien Loan Documents and Permitted
            Encumbrances.

            
                      3.17      
            Environmental Matters.

            
                                (a)
                 Except as set forth in Disclosure Schedule 3.17,
            as of the Closing Date: (i) the Real Estate is free of contamination from any Hazardous
            Material except for such

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            contamination that would not
            adversely impact the value or marketability of such Real Estate and that would not
            result in Environmental Liabilities that could reasonably be expected to exceed
            $100,000; (ii) no Credit Party has caused or suffered to occur any Release of Hazardous
            Materials on, at, in, under, above, to, from or about any of its Real Estate; (iii) the
            Credit Parties are and have been in compliance with all Environmental Laws, except for
            such noncompliance that would not result in Environmental Liabilities which could
            reasonably be expected to exceed $100,000; (iv) the Credit Parties have obtained, and
            are in compliance with, all Environmental Permits required by Environmental Laws for
            the operations of their respective businesses as presently conducted or as proposed to
            be conducted, except where the failure to so obtain or comply with such Environmental
            Permits would not result in Environmental Liabilities that could reasonably be expected
            to exceed $100,000, and all such Environmental Permits are valid, uncontested and in
            good standing; (v) no Credit Party is involved in operations or knows of any facts,
            circumstances or conditions, including any Releases of Hazardous Materials, that are
            likely to result in any Environmental Liabilities of such Credit Party which could
            reasonably be expected to exceed $100,000, and no Credit Party has permitted any
            current or former tenant or occupant of the Real Estate to engage in any such
            operations; (vi) there is no Litigation arising under or related to any Environmental
            Laws, Environmental Permits or Hazardous Material that seeks damages, penalties, fines,
            costs or expenses in excess of $25,000 or injunctive relief against, or that alleges
            criminal misconduct by, any Credit Party; (vii) no notice has been received by any
            Credit Party identifying it as a “potentially responsible party” or
            requesting information under CERCLA or analogous state statutes, and to the knowledge
            of the Credit Parties, there are no facts, circumstances or conditions that may result
            in any Credit Party being identified as a “potentially responsible party”
            under CERCLA or analogous state statutes; and (viii) the Credit Parties have provided
            to Agent copies of all existing environmental reports, reviews and audits and all
            written information pertaining to actual or potential Environmental Liabilities, in
            each case relating to any Credit Party.

            
                                (b)
                 Each Credit Party hereby acknowledges and agrees that
            Agent (i) is not now, and has not ever been, in control of any of the Real Estate or
            any Credit Party’s affairs, and (ii) does not have the capacity through the
            provisions of the Loan Documents or otherwise to influence any Credit Party’s
            conduct with respect to the ownership, operation or management of any of its Real
            Estate or compliance with Environmental Laws or Environmental Permits.

            
                      3.18      
            Insurance. Disclosure Schedule 3.18 lists all insurance policies of any
            nature maintained, as of the Closing Date, for current occurrences by each Credit
            Party, as well as a summary of the terms of each such policy.

            
                      3.19      
            Deposit and Disbursement Accounts. Disclosure Schedule 3.19 lists all banks
            and other financial institutions at which any Credit Party maintains deposit or other
            accounts as of the Closing Date, including any Disbursement Accounts, and such Schedule
            correctly identifies the name, address and telephone number of each depository, the
            name in which the account is held, a description of the purpose of the account, and the
            complete account number therefor.

            
                      3.20      
            Government Contracts. Except as set forth in Disclosure Schedule 3.20, as of
            the Closing Date, no Credit Party is a party to any contract or agreement with any
            Governmental Authority and no Credit Party’s Accounts are subject to the Federal
            Assignment of Claims Act (31 U.S.C. Section 3727) or any similar state or local
            law.

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                      3.21      
            Customer and Trade Relations. As of the Closing Date, there exists no actual or, to
            the knowledge of any Credit Party, threatened termination or cancellation of, or any
            material adverse modification or change in: the business relationship of any Credit
            Party with any customer or group of customers whose purchases during the preceding 12
            months caused them to be ranked among the ten largest customers of such Credit Party;
            or the business relationship of any Credit Party with any supplier material to its
            operations.

            
                      3.22      
            Agreements and Other Documents. As of the Closing Date, each Credit Party has
            provided access, to Agent or its counsel, on behalf of Lenders, to accurate and
            complete copies (or summaries) of all of the following agreements or documents to which
            it is subject and each of which is listed in Disclosure Schedule 3.22: supply
            agreements and purchase agreements not terminable by such Credit Party within 60 days
            following written notice issued by such Credit Party and involving transactions in
            excess of $150,000 per annum; leases of Equipment having a remaining term of one year
            or longer and requiring aggregate rental and other payments in excess of $250,000 per
            annum; licenses and permits held by the Credit Parties, the absence of which could be
            reasonably likely to have a Material Adverse Effect; instruments and documents
            evidencing any Indebtedness or Guaranteed Indebtedness of such Credit Party and any
            Lien granted by such Credit Party with respect thereto; and instruments and agreements
            evidencing the issuance of any equity securities, warrants, rights or options to
            purchase equity securities of such Credit Party.

            
                      3.23      
            Solvency. Both before and after giving effect to (a) the Loans to be made on the
            Closing Date, (b) the disbursement of the proceeds of such Loans pursuant to the
            instructions of Borrower, (c) the consummation of the Related Transactions and (d) the
            payment and accrual of all transaction costs in connection with the foregoing, each
            Credit Party is and will be Solvent.

            
                      3.24      
            Reserved.

            
                      3.25      
            Reserved.

            
                      3.26      
            Foreign Assets Control Regulations. None of the Credit Parties nor, to the best
            knowledge of each Credit Party, any Affiliate of any Credit Party, is, or will after
            consummation of the Related Transactions and the application of the proceeds of the
            Loans, by reason of being a “national” of a “designated foreign
            country” or a “specially designated national” within the meaning of
            the Regulations of the Office of Foreign Assets Control, United States Treasury
            Department (31 C.F.R., Subtitle B, Chapter V), or for any other reason, in violation
            of, any United States Federal statute or Presidential Executive Order concerning trade
            or other relations with any foreign country or any citizen or national thereof or the
            ownership or operation of any property.

            
                      3.27      
            Anti-Terrorism Law.

            
                      
                        (a)        
            No Credit Party and, to the knowledge of the Credit Parties, none of its Affiliates is
            in violation of any laws relating to terrorism or money laundering
            (“Anti-Terrorism Laws”), including Executive Order No.
            13224 on Terrorist Financing, effective September 24, 2001 (the “Executive
            Order”), and the Uniting and Strengthening America by Providing

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            Appropriate Tools Required to
            Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the “Patriot
            Act”).

            
                                (b)
                   No Credit Party, and to the knowledge of the
            Credit Parties, no Affiliate or broker or other agent of any Credit Party acting or
            benefiting in any capacity in connection with the Loans is any of the
            following:

            
                                     (i)
                   a Person that is listed in the annex to, or is
            otherwise subject to the provisions of, the Executive Order;

            
                                     (ii)
                  a Person owned or controlled by, or acting for or
            on behalf of, any Person that is listed in the annex to, or is otherwise subject to the
            provisions of, the Executive Order;

            
                                    
            (iii)      a Person with which any Lender is prohibited from
            dealing or otherwise engaging in any transaction by any Anti-Terrorism Law;
            or

            
                                     (iv)     a
            Person that commits, threatens or conspires to commit or supports
            “terrorism” as defined in the Executive Order.

            
                                (c)
                   No Credit Party and, to the knowledge of the
            Credit Parties, no broker or other agent of any Credit Party acting in any capacity in
            connection with the Loans (i) conducts any business or engages in making or receiving
            any contribution of funds, goods or services to or for the benefit of any Person
            described in paragraph (b) above, (ii) deals in, or otherwise engages in any
            transaction relating to, any property or interests in property blocked pursuant to the
            Executive Order, or (iii) engages in or conspires to engage in any transaction that
            evades or avoids, or has the purpose of evading or avoiding, or attempts to violate,
            any of the prohibitions set forth in any Anti-Terrorism Law.

            
            4.        FINANCIAL
            STATEMENTS AND INFORMATION

            
                      4.1      
            Reports and Notices.

            
                                
            (a)       Each Credit Party executing this Agreement
            hereby agrees that from and after the Closing Date and until the Termination Date, it
            shall deliver to Agent or to Agent and Lenders, as required, the Financial Statements,
            notices, Projections and other information at the times, to the Persons and in the
            manner set forth in Annex E.

            
                                (b)
                   Each Credit Party executing this Agreement hereby
            agrees that from and after the Closing Date and until the Termination Date, it shall
            deliver to Agent or to Agent and Lenders, as required, the various Collateral Reports
            at the times, to the Persons and in the manner set forth in Annex F.

            
                      4.2      
            Communication with Accountants. Each Credit Party executing this Agreement
            authorizes (a) Agent and (b) so long as an Event of Default has occurred and is
            continuing, each Lender, to communicate directly with its independent certified public
            accountants, including Grant Thornton LLP, and authorizes and shall instruct those
            accountants and advisors to

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            communicate to Agent and each
            Lender information relating to any Credit Party with respect to the business, results
            of operations and financial condition of any Credit Party.

            
            5.          
            AFFIRMATIVE COVENANTS

            
                                 Each
            Credit Party executing this Agreement jointly and severally agrees as to all Credit
            Parties that from and after the date hereof and until the Termination Date:

            
                      5.1      
            Maintenance of Existence and Conduct of Business. Each Credit Party shall: do or
            cause to be done all things necessary to preserve and keep in full force and effect its
            corporate existence and its rights and franchises; continue to conduct its business
            substantially as now conducted or as otherwise permitted hereunder; at all times
            maintain, preserve and protect all of its assets and properties used or useful in the
            conduct of its business, and keep the same in good repair, working order and condition
            in all material respects (taking into consideration ordinary wear and tear) and from
            time to time make, or cause to be made, all necessary or appropriate repairs,
            replacements and improvements thereto consistent with industry practices; and transact
            business only in such corporate and trade names as are set forth in Disclosure
            Schedule 5.1.

            
                      5.2      
            Payment of Charges.

            
                                
            (a)        Subject to Section 5.2(b), each Credit
            Party shall pay and discharge or cause to be paid and discharged promptly all Charges
            payable by it, including (i) Charges imposed upon it, its income and profits, or any of
            its property (real, personal or mixed) and all Charges with respect to tax, social
            security and unemployment withholding with respect to its employees, (ii) lawful claims
            for labor, materials, supplies and services or otherwise, and (iii) all storage or
            rental charges payable to warehousemen and bailees, in each case, before any thereof
            shall become past due.

            
                                (b)
                   Each Credit Party may in good faith contest, by
            appropriate proceedings, the validity or amount of any Charges, Taxes or claims
            described in Section 5.2(a); provided, that (i) adequate reserves with
            respect to such contest are maintained on the books of such Credit Party, in accordance
            with GAAP; (ii) no Lien shall be imposed to secure payment of such Charges (other than
            payments to warehousemen and/or bailees) that is superior to any of the Liens securing
            payment of the Obligations and such contest is maintained and prosecuted continuously
            and with diligence and operates to suspend collection or enforcement of such Charges,
            (iii) none of the Collateral becomes subject to forfeiture or loss as a result of such
            contest, (iv) such Credit Party shall promptly pay or discharge such contested Charges,
            Taxes or claims and all additional charges, interest, penalties and expenses, if any,
            and shall deliver to Agent evidence reasonably acceptable to Agent of such compliance,
            payment or discharge, if such contest is terminated or discontinued adversely to such
            Credit Party or the conditions set forth in this Section 5.2(b) are no longer
            met, and (v) Agent has not advised Borrower in writing that Agent reasonably believes
            that nonpayment or nondischarge thereof could have or result in a Material Adverse
            Effect.

            
                      5.3      
            Books and Records. Each Credit Party shall keep adequate books and records with
            respect to its business activities in which proper entries, reflecting all financial
            transactions,

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            are made in accordance with GAAP
            and on a basis consistent with the Financial Statements attached as Disclosure
            Schedule 3.4(a).

            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        5.4

                    	
                        Insurance; Damage
                        to or Destruction of Collateral.

                    

            
                                (a)     The
            Credit Parties shall, at their sole cost and expense, maintain the policies of
            insurance described on Disclosure Schedule 3.18 as in effect on the date hereof
            or otherwise in form and amounts and with insurers reasonably acceptable to Agent. Such
            policies of insurance (or the loss payable and additional insured endorsements
            delivered to Agent) shall contain provisions pursuant to which the insurer agrees to
            provide 30 days prior written notice to Agent in the event of any non-renewal,
            cancellation or amendment of any such insurance policy. If any Credit Party at any time
            or times hereafter shall fail to obtain or maintain any of the policies of insurance
            required above or to pay all premiums relating thereto, Agent may at any time or times
            thereafter obtain and maintain such policies of insurance and pay such premiums and
            take any other action with respect thereto that Agent deems advisable. Agent shall have
            no obligation to obtain insurance for any Credit Party or pay any premiums therefor. By
            doing so, Agent shall not be deemed to have waived any Default or Event of Default
            arising from any Credit Party’s failure to maintain such insurance or pay any
            premiums therefor. All sums so disbursed, including reasonable attorneys’ fees,
            court costs and other charges related thereto, shall be payable on demand by Borrower
            to Agent and shall be additional Obligations hereunder secured by the
            Collateral.

            
                                (b)     Agent
            reserves the right at any time upon any change in any Credit Party’s risk profile
            (including any change in the product mix maintained by any Credit Party or any laws
            affecting the potential liability of such Credit Party) to require additional forms and
            limits of insurance to, in Agent’s opinion, adequately protect both Agent’s
            and Lender’s interests in all or any portion of the Collateral and to ensure that
            each Credit Party is protected by insurance in amounts and with coverage customary for
            its industry. If reasonably requested by Agent, each Credit Party shall deliver to
            Agent from time to time a report of a reputable insurance broker, reasonably
            satisfactory to Agent, with respect to its insurance policies.

            
                                (c)     
            Each Credit Party shall deliver to Agent, in form and substance reasonably satisfactory
            to Agent, endorsements to (i) all “All Risk” and business interruption
            insurance naming Agent, on behalf of itself and Lenders, as loss payee, and (ii) all
            general liability and other liability policies naming Agent, on behalf of itself and
            Lenders, as additional insured. Each Credit Party irrevocably makes, constitutes and
            appoints Agent (and all officers, employees or agents designated by Agent), so long as
            any Default or Event of Default has occurred and is continuing or the anticipated
            insurance proceeds exceed $500,000, as each Credit Party’s true and lawful agent
            and attorney-in-fact for the purpose of making, settling and adjusting claims under
            such “All Risk” policies of insurance related to the Montvale Property,
            endorsing the name of each Credit Party on any check or other item of payment for the
            proceeds of such “All Risk” policies of insurance related to the Montvale
            Property and for making all determinations and decisions with respect to such
            “All Risk” policies of insurance. Agent shall have no duty to exercise any
            rights or powers granted to it pursuant to the foregoing power-of-attorney. Borrower
            shall promptly notify Agent of any loss, damage, or destruction to the Collateral in
            the amount of $250,000 or more, whether or not covered by insurance. After deducting
            from such proceeds the expenses, if any, incurred by Agent in the collection or
            handling thereof, Agent

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            may, at its option, apply such
            proceeds to the reduction of the Obligations in accordance with Section 1.3(d),
            provided that in the case of insurance proceeds pertaining to any Credit Party
            other than Borrower, such insurance proceeds shall be applied to the Loans owing by
            Borrower, or permit or require each Credit Party to use such money, or any part
            thereof, to replace, repair, restore or rebuild the Collateral in a diligent and
            expeditious manner with materials and workmanship of substantially the same quality as
            existed before the loss, damage or destruction. Notwithstanding the foregoing, if the
            casualty giving rise to such insurance proceeds could not reasonably be expected to
            have a Material Adverse Effect and such insurance proceeds do not exceed $500,000 in
            the aggregate, Agent shall permit the applicable Credit Party to replace, restore,
            repair or rebuild the property; provided that if such Credit Party has not
            completed or entered into binding agreements to complete such replacement, restoration,
            repair or rebuilding within 180 days of such casualty, Agent may apply such insurance
            proceeds to the Obligations in accordance with Section 1.3(d); provided
            further that in the case of insurance proceeds pertaining to any Credit Party other
            than Borrower, such insurance proceeds shall be applied to the Loans owing by Borrower.
            To the extent not used to replace, repair, restore or rebuild the Collateral, such
            insurance proceeds shall be applied in accordance with Section 1.3(d);
            provided that in the case of insurance proceeds pertaining to any Credit Party
            other than Borrower, such insurance proceeds shall be applied to the Loans owing by
            Borrower.

            
                      5.5     
            Compliance with Laws. Each Credit Party shall comply with all federal, state, local
            and foreign laws and regulations applicable to it, including those relating to ERISA
            and labor matters and Environmental Laws and Environmental Permits, except to the
            extent that the failure to comply, individually or in the aggregate, could not
            reasonably be expected to have a Material Adverse Effect.

            
                      5.6     
            Supplemental Disclosure. From time to time as may be reasonably requested by Agent
            (which request will not be made more frequently than once each year absent the
            occurrence and continuance of a Default or an Event of Default), the Credit Parties
            shall supplement each Disclosure Schedule hereto, or any representation herein or in
            any other Loan Document, with respect to any matter hereafter arising that, if existing
            or occurring at the date of this Agreement, would have been required to be set forth or
            described in such Disclosure Schedule or as an exception to such representation or that
            is necessary to correct any information in such Disclosure Schedule or representation
            which has been rendered inaccurate thereby (and, in the case of any supplements to any
            Disclosure Schedule, such Disclosure Schedule shall be appropriately marked to show the
            changes made therein); provided that (a) no such supplement to any such
            Disclosure Schedule or representation shall amend, supplement or otherwise modify any
            Disclosure Schedule or representation, or be or be deemed a waiver of any Default or
            Event of Default resulting from the matters disclosed therein, except as consented to
            by Agent and Requisite Lenders in writing, and (b) no supplement shall be required or
            permitted as to representations and warranties that relate solely to the Closing
            Date.

            
                      5.7     
            Intellectual Property. Each Credit Party will conduct its business and affairs
            without infringement of or interference with any Intellectual Property of any other
            Person in any material respect.

            
                      5.8     
            Environmental Matters. Each Credit Party shall and shall cause each Person within
            its control to: (a) conduct its operations and keep and maintain its Real Estate
            in

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            compliance with all
            Environmental Laws and Environmental Permits other than noncompliance that could not
            reasonably be expected to have a Material Adverse Effect; (b) implement any and all
            investigation, remediation, removal and response actions that are appropriate or
            necessary to maintain the value and marketability of the Real Estate or to otherwise
            comply with Environmental Laws and Environmental Permits pertaining to the presence,
            generation, treatment, storage, use, disposal, transportation or Release of any
            Hazardous Material on, at, in, under, above, to, from or about any of its Real Estate;
            (c) notify Agent promptly after such Credit Party becomes aware of any violation of
            Environmental Laws or Environmental Permits or any Release on, at, in, under, above,
            to, from or about any Real Estate that is reasonably likely to result in Environmental
            Liabilities in excess of $100,000; and (d) promptly forward to Agent a copy of any
            order, notice, request for information or any communication or report received by such
            Credit Party in connection with any such violation or Release or any other matter
            relating to any Environmental Laws or Environmental Permits that could reasonably be
            expected to result in Environmental Liabilities in excess of $250,000, in each case
            whether or not the Environmental Protection Agency or any Governmental Authority has
            taken or threatened any action in connection with any such violation, Release or other
            matter. If Agent at any time has a reasonable basis to believe that there may be a
            violation of any Environmental Laws or Environmental Permits by any Credit Party or any
            Environmental Liability arising thereunder, or a Release of Hazardous Materials on, at,
            in, under, above, to, from or about any of its Real Estate, that, in each case, could
            reasonably be expected to have a Material Adverse Effect, then each Credit Party shall,
            upon Agent’s written request (i) cause the performance of such environmental
            audits including subsurface sampling of soil and groundwater, and preparation of such
            environmental reports, at Borrower’s expense, as Agent may from time to time
            reasonably request, which shall be conducted by reputable environmental consulting
            firms reasonably acceptable to Agent and shall be in form and substance reasonably
            acceptable to Agent, and (ii) permit Agent or its representatives to have access to all
            Real Estate for the purpose of conducting such environmental audits and testing as
            Agent deems appropriate, including subsurface sampling of soil and groundwater.
            Borrower shall reimburse Agent for the costs of such audits and tests and the same will
            constitute a part of the Obligations secured hereunder.

            
                      5.9     
            Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real Estate
            Purchases. Upon the request of Agent, each Credit Party shall obtain a
            landlord’s agreement, mortgagee agreement or bailee letter, as applicable, from
            the lessor of each leased property, mortgagee of owned property or bailee with respect
            to any warehouse, processor or converter facility or other location where Collateral is
            stored or located, which agreement or letter shall contain a waiver or subordination of
            all Liens or claims that the landlord, mortgagee or bailee may assert against the
            Collateral at that location, and shall otherwise be reasonably satisfactory in form and
            substance to Agent. After the Closing Date, no real property or warehouse space shall
            be leased by any Credit Party and no Inventory shall be shipped to a processor or
            converter under arrangements established after the Closing Date without the prior
            written consent of Agent (which consent, in Agent’s discretion, may be
            conditioned upon the establishment of Reserves acceptable to Agent) or, unless and
            until a satisfactory landlord agreement or bailee letter, as appropriate, shall first
            have been obtained with respect to such location. Each Credit Party shall timely and
            fully pay and perform its obligations under all leases and other agreements with
            respect to each leased location or public warehouse where any Collateral is or may be
            located. To the extent permitted hereunder, if any Credit Party proposes to acquire a
            fee ownership interest in Real Estate after the Closing Date, it shall first provide to
            Agent a mortgage or deed of

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            trust granting Agent a Lien on
            such Real Estate second in priority only to the Lien of the First Lien Agent pursuant
            to the terms of the Intercreditor Agreement, together with environmental audits,
            mortgage title insurance commitment, real property survey, local counsel opinion(s),
            and, if required by Agent, supplemental casualty insurance and flood insurance, and
            such other documents, instruments or agreements reasonably requested by Agent, in each
            case, in form and substance reasonably satisfactory to Agent.

            
                      5.10     
            Further Assurances. Each Credit Party executing this Agreement agrees that it shall
            and shall cause each other Credit Party to, at such Credit Party’s expense and
            upon request of Agent, duly execute and deliver, or cause to be duly executed and
            delivered, to Agent such further instruments and do and cause to be done such further
            acts as may be necessary or proper in the reasonable opinion of Agent to carry out more
            effectively the provisions and purposes of this Agreement or any other Loan
            Document.

            
                      5.11     
            Delivery of Butler India Stock Certificate. On or before September 11, 2007, the
            Borrower will cause to be delivered to First Lien Agent stock certificate number 3
            representing 10,000 equity shares of Butler India, together with a duly executed stock
            power.

            	
                         

                    	
                         

                    
	
                        6.

                    	
                        NEGATIVE
                        COVENANTS

                    

            
                                          Each
            Credit Party executing this Agreement jointly and severally agrees as to all Credit
            Parties that from and after the date hereof until the Termination Date:

            
                      6.1     
            Mergers, Subsidiaries, Etc. No Credit Party shall directly or indirectly, by
            operation of law or otherwise, (a) form or acquire any Subsidiary, or (b) merge with,
            consolidate with, acquire all or substantially all of the assets or Stock of, or
            otherwise combine with or acquire, any Person.

            
                      6.2     
            Investments; Loans and Advances. Except as otherwise expressly permitted by this
            Section 6, no Credit Party shall make or permit to exist any investment in, or
            make, accrue or permit to exist loans or advances of money to, any Person, through the
            direct or indirect lending of money, holding of securities or otherwise, except that:
            (a) each Credit Party may maintain its existing investments (other than investments in
            the form of intercompany loans or advances by Borrower to Butler India) in its
            Subsidiaries as of the Closing Date; (b) each Credit Party may make investments in
            Butler Foundation to the extent necessary to match funds consistent with prior
            practices in an aggregate amount not to exceed $100,000 during any Fiscal Year; (c)
            each Credit Party may make rental payments to Butler NJ in an aggregate amount not to
            exceed the amounts required under the Montvale Lease from time to time; (d) so long as
            no Default or Event of Default has occurred and is continuing, Borrower may invest no
            more than $1,000,000 of funds in overnight investments if and to the extent such funds
            have not been transferred at the close of business; (e) so long as no Default or Event
            of Default has occurred and is continuing and there is no outstanding Revolving Loan
            balance, Borrower may make investments, subject to Control Letters in favor of Agent
            for the benefit of Lenders or otherwise subject to a perfected security interest in
            favor of Agent for the benefit of Lenders, in (i) marketable direct obligations issued
            or unconditionally guaranteed by the United States of America or any agency thereof
            maturing within one year from the date of acquisition thereof, (ii) commercial paper
            maturing no more than one year from the date of creation thereof and

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            currently having the highest
            rating obtainable from either Standard & Poor’s Ratings Group or
            Moody’s Investors Service, Inc., (iii) certificates of deposit maturing no more
            than one year from the date of creation thereof issued by commercial banks incorporated
            under the laws of the United States of America, each having combined capital, surplus
            and undivided profits of not less than $300,000,000 and having a senior unsecured
            rating of “A” or better by a nationally recognized rating agency (an
            “A Rated Bank”), (iv) time deposits maturing no more than 30 days
            from the date of creation thereof with A Rated Banks and (v) mutual funds that invest
            solely in one or more of the investments described in clauses (i) through (iv)
            above; (f) Borrower may make investments in other Credit Parties in the form of
            intercompany loans and advances permitted to be incurred by such Credit Parties
            pursuant to Section 6.3(a)(vi); and (g) Borrower may make investments in Butler
            India in the form of intercompany loans and advances in an aggregate amount not to
            exceed $2,000,000 at any time so long as Butler India is creditworthy as determined by
            Agent; provided, that with respect to the intercompany loans permitted under
            clauses (f) and (g) of this section: (A) Borrower shall record all
            intercompany transactions on its books and records in a manner reasonably satisfactory
            to Agent; (B) at the time any such intercompany loan or advance is made by Borrower and
            after giving effect thereto, Borrower shall be Solvent; (C) no Default or Event of
            Default would occur and be continuing after giving effect to any such proposed
            intercompany loan; and (D) Borrower shall have Borrowing Availability (as defined in
            the First Lien Credit Agreement) of not less than $3,000,000 after giving effect to
            such intercompany loan.

            
                      6.3     
            Indebtedness.

            
                                (a)     
            No Credit Party shall create, incur, assume or permit to exist any Indebtedness, except
            (without duplication) (i) Indebtedness secured by purchase money security interests and
            Capital Leases permitted in Section 6.7(c), (ii) the Loans and the other
            Obligations, (iii) unfunded pension fund and other employee benefit plan obligations
            and liabilities to the extent they are permitted to remain unfunded under applicable
            law, (iv) existing Indebtedness described in Disclosure Schedule 6.3, (v)
            Indebtedness consisting of intercompany loans and advances made by Borrower to any
            other Credit Party that is a Guarantor; provided, that: (A) each such Guarantor
            shall have executed and delivered to Borrower, on or prior to the Closing Date, a
            demand note (collectively, the “Intercompany Notes”) to evidence any
            such intercompany Indebtedness owing at any time by such Guarantor to Borrower, which
            Intercompany Notes shall be in form and substance reasonably satisfactory to Agent and
            shall be pledged to Agent pursuant to the applicable Pledge Agreement or Security
            Agreement as additional collateral security for the Obligations; (B) no Default or
            Event of Default would occur and be continuing after giving effect to any such proposed
            intercompany loan; (C) the aggregate balance of all such intercompany loans owing to
            Borrower after the Closing Date shall not exceed $2,000,000 at any time; and (D) the
            recipient of any such intercompany loans shall be creditworthy as determined by Agent,
            (vi) subject to the Intercreditor Agreement, First Lien Indebtedness in an aggregate
            principal amount not in excess of the First Lien Cap (as defined in the Intercreditor
            Agreement) at any time outstanding and (vii) Indebtedness of any Credit Party incurred
            to finance insurance premiums in a principal amount not in excess of the casualty or
            other insurance premiums to be paid by any Credit Party for a one-year period beginning
            on the date of any incurrence of such Indebtedness and secured by the insurance
            policies being so financed.

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                                     (b)          No
            Credit Party shall, directly or indirectly, voluntarily purchase, redeem, defease or
            prepay any principal of, premium, if any, interest or other amount payable in respect
            of any Indebtedness, other than (i) the Obligations; (ii) Indebtedness secured
            by a Permitted Encumbrance if the asset securing such Indebtedness has been sold or
            otherwise disposed of in accordance with Section 6.8(b); (iii) prepayments of
            First Lien Indebtedness that do not result in a reduction of the commitments under the
            First Lien Credit Agreement; (iv) prepayments of the Montvale Property Mortgage Loan
            with net proceeds from the issuance of the Holdings common Stock or Permitted Preferred
            Stock; and (v) as otherwise permitted in Section 6.14.

            
                      6.4          
            Employee Loans and Affiliate Transactions.

            
                                     
            (a)          No Credit Party shall,
            and no Credit Party shall suffer or permit any of its Subsidiaries to, enter into any
            transaction with any Affiliate of Holdings or of any such Subsidiary except (i) as
            expressly permitted by this Agreement, (ii) in the ordinary course of business and
            pursuant to the reasonable requirements of the business of such Credit Party or such
            Subsidiary; provided that, in case of this clause (ii), such transaction shall be upon
            fair and reasonable terms no less favorable to such Credit Party or such Subsidiary
            than would be obtained in a comparable arm’s length transaction with a Person not
            an Affiliate of the Borrower or such Subsidiary and which are disclosed in writing to
            the Agent and (iii) the stock option plans described in Disclosure Schedule
            6.4.

            
                                     (b)          No
            Credit Party shall enter into any lending or borrowing transaction with any employees
            of any Credit Party, except (i) loans to its respective employees on an
            arm’s-length basis in the ordinary course of business consistent with past
            practices for travel and entertainment expenses, relocation costs and similar purposes
            up to a maximum of $50,000 to any employee and up to a maximum of $1,000,000 in the
            aggregate at any one time outstanding, (ii) advances to the Specified Employees for the
            purpose of exercising stock options pursuant to the stock option plans described in
            Disclosure Schedule 6.4 up to a maximum of $1,000,000 to any employee and up to
            a maximum of $6,000,000 in the aggregate at any one time outstanding, provided that, in
            each case, if the exercise of stock options under stock option plans described in
            Disclosure Schedule 6.4 require the Credit Parties to exceed such amounts, the
            Credit Parties and the Agent shall negotiate in good faith to establish new caps which
            are mutually agreeable, and (iii) advances to Edward M. Kopko pursuant to that certain
            Employment Agreement dated December 17, 1991.

            
                      6.5
                      Capital Structure and
            Business. No Credit Party shall: (a) make any changes in any of its business
            objectives, purposes or operations that could in any way adversely affect the repayment
            of the Loans or any of the other Obligations or could reasonably be expected to have or
            result in a Material Adverse Effect (the parties agreeing that this clause (a)
            will not be considered operative unless less than 75% of such Credit Party’s
            consolidated revenue is derived from the combination of staffing and business services
            outsourcing); (b) make any change in its capital structure as described in
            Disclosure Schedule 3.8, including the issuance or sale of any shares of Stock,
            warrants (other than warrants issued as of the Closing Date) or other securities
            convertible into Stock or any revision of the terms of its outstanding Stock; provided,
            that Holdings may issue or sell (x) its common Stock and/or Permitted Preferred Stock
            for cash, provided, that no Change of Control occurs after giving effect
            thereto, and (y) its common Stock and options to purchase its common stock pursuant to
            the employee stock option plans described

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            in Disclosure Schedule
            6.4, provided, that the aggregate value of all stock issuance pursuant to
            such plans shall not exceed 5% of the authorized Stock of Holdings or any Credit Party
            in any year; (c) amend its charter or bylaws in a manner that would adversely affect
            Agent or Lenders or such Credit Party’s duty or ability to repay the Obligations,
            or result in a Material Adverse Effect; or (d) engage in any business other than the
            businesses currently engaged in by it or businesses reasonably related thereto which in
            the aggregate exceed 10% of such Credit Party’s consolidated revenue. The Credit
            Parties shall not permit AAC Corp. or Sylvan Insurance Co., Ltd. to hold any assets or
            to incur or be liable for any Indebtedness or Guaranteed Indebtedness. Holdings will
            engage in no business other than its ownership of the Stock of Butler NJ, Butler
            Foundation, AAC Corp., Sylvan Insurance Co. and Borrower. Butler Foundation shall
            remain a not-for-profit corporation qualified under Section 501(c)(3) of the United
            States Internal Revenue Code and no Credit Party shall engage in any transaction
            (whether by way of contribution, loan, investment, disposition or otherwise) with
            Butler Foundation, other than investments permitted pursuant to Section
            6.4(b).

            
                      6.6          
            Guaranteed Indebtedness. No Credit Party shall create, incur, assume or permit to
            exist any Guaranteed Indebtedness except (a) by endorsement of instruments or items of
            payment for deposit to the general account of any Credit Party, (b) for Guaranteed
            Indebtedness incurred for the benefit of any other Credit Party if the primary
            obligation is expressly permitted by this Agreement, (c) the guaranty of the Montvale
            Property Mortgage Loan, which guaranty shall be unsecured and (d) Guaranteed
            Indebtedness not to exceed $100,000 in the aggregate.

            
                      6.7          
            Liens. No Credit Party shall create, incur, assume or permit to exist any Lien on
            or with respect to its Accounts or any of its other properties or assets (whether now
            owned or hereafter acquired) except for (a) Permitted Encumbrances; (b) Liens in
            existence on the date hereof and summarized on Disclosure Schedule 6.7 securing
            Indebtedness described on Disclosure Schedule 6.3 and permitted refinancings,
            extensions and renewals thereof, including extensions or renewals of any such Liens;
            provided that the principal amount so secured is not increased and the Lien does not
            attach to any other property; (c) Liens created after the date hereof by conditional
            sale or other title retention agreements (including Capital Leases) or in connection
            with purchase money Indebtedness with respect to Equipment and Fixtures acquired by any
            Credit Party in the ordinary course of business, involving the incurrence of an
            aggregate amount of purchase money Indebtedness and Capital Lease Obligations of not
            more than $2,000,000 outstanding at any one time for all such Liens (provided
            that such Liens attach only to the assets subject to such purchase money debt and such
            Indebtedness is incurred within 20 days following such purchase and does not exceed
            100% of the purchase price of the subject assets) and (d) subject to the terms of the
            Intercreditor Agreement, Liens securing the First Lien Indebtedness but only if the
            property subject to such Lien is also subject to an enforceable and perfected Lien
            securing the Obligations. In addition, no Credit Party shall become a party to any
            agreement, note, indenture or instrument, or take any other action, that would prohibit
            the creation of a Lien on any of its properties or other assets in favor of Agent, on
            behalf of itself and Lenders, as additional collateral for the Obligations, except
            operating leases, Capital Leases or Licenses which prohibit Liens upon the assets that
            are subject thereto.

            
                      6.8          
            Sale of Stock and Assets. No Credit Party shall sell, transfer, convey, assign or
            otherwise dispose of any of its properties or other assets, including the Stock of any
            of its Subsidiaries (whether in a public or a private offering or otherwise) or any of
            its Accounts, other

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            than (a) the sale of Inventory
            in the ordinary course of business, (b) the sale, transfer, conveyance or other
            disposition by a Credit Party of Equipment, Fixtures or Real Estate that are obsolete
            or no longer used or useful in such Credit Party’s business and having a sales
            price not exceeding $250,000 in any single transaction or $500,000 in the aggregate in
            any Fiscal Year and (c) the sale of the Montvale Property that (i) results in Net
            Montvale Sale Proceeds of at least $2,000,000, excluding any return of cash collateral
            securing the Montvale Property Letter of Credit to the extent otherwise included in
            cash net proceeds or (ii) is on terms and conditions acceptable to the Agent. With
            respect to any disposition of assets or other properties permitted pursuant to
            clauses (b) and (c) above, subject to Section 1.3(b), Agent agrees on
            reasonable prior written notice to release its Lien on such assets or other properties
            in order to permit the applicable Credit Party to effect such disposition and shall
            execute and deliver to Borrower, at Borrower’s expense, appropriate UCC-3
            termination statements and other releases as reasonably requested by
            Borrower.

            
                      6.9          
            ERISA. No Credit Party shall, or shall cause or permit any ERISA Affiliate to,
            cause or permit to occur an event that could result in the imposition of a Lien under
            Section 412 of the IRC or Section 302 or 4068 of ERISA or cause or permit to occur an
            ERISA Event to the extent such ERISA Event could reasonably be expected to have a
            Material Adverse Effect.

            
                      6.10          
            Financial Covenants. Borrower shall not breach or fail to comply with any of the
            Financial Covenants.

            
                      6.11          
            Hazardous Materials. No Credit Party shall cause or permit a Release of any
            Hazardous Material on, at, in, under, above, to, from or about any of the Real Estate
            where such Release would (a) violate in any respect, or form the basis for any
            Environmental Liabilities under, any Environmental Laws or Environmental Permits or (b)
            otherwise adversely impact the value or marketability of any of the Real Estate or any
            of the Collateral, other than such violations or Environmental Liabilities that could
            not reasonably be expected to have a Material Adverse Effect.

            
                      6.12          
            Sale-Leasebacks. No Credit Party shall engage in any sale-leaseback, synthetic
            lease or similar transaction involving any of its assets other than a sale-leaseback of
            the Montvale Property on terms and conditions acceptable to the Agent.

            
                      6.13          
            Cancellation of Indebtedness. No Credit Party shall cancel any claim or debt owing
            to it, except for reasonable consideration negotiated on an arm’s-length basis
            and in the ordinary course of its business consistent with past practices.

            
                      6.14          
            Restricted Payments. No Credit Party shall make any Restricted Payment, except (a)
            intercompany loans and advances between Borrower and Guarantors to the extent permitted
            by Section 6.3, (b) dividends and distributions by Subsidiaries of Borrower paid
            to Borrower, (c) employee loans permitted under Section 6.4(b), (d) payments of
            principal and interest of Intercompany Notes issued in accordance with Section
            6.3; (e) dividends or distributions made by Holdings consisting solely of Holdings
            common stock, or, in the case of dividends or distributions to holders of
            Holdings’ preferred stock, consisting of additional shares of Stock of the same
            series or class, (f) Restricted Payments consisting of the purchase, redemption or
            other retirement of outstanding shares of Holdings preferred stock to the extent made
            with net

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            proceeds from the issuance of
            Holdings common stock or Permitted Preferred Stock within 3 Business Days of receipt of
            such net proceeds and (g) dividends or distributions by Borrower to Holdings which are
            used immediately by Holdings to pay dividends required to be paid in cash pursuant to
            the terms of Holdings’ Series A Preferred Stock or Permitted Preferred Stock, but
            in each case, only to the extent that (i) Borrowing Availability (as defined in the
            First Lien Credit Agreement) for the 30-day period preceding such dividend would have
            exceeded $2,500,000 if such dividend had been paid, and any Indebtedness incurred to
            make pay such dividend had been incurred, on the first day of such 30-day period, (ii)
            each of the financial covenants set forth in Annex G are met on a pro forma basis
            giving effect to such dividend and (iii) no Default or Event of Default
            exists.

            
                      6.15          
            Change of Corporate Name or Location; Change of Fiscal Year. No Credit Party shall
            (a) change its corporate name or trade name, or (b) change its chief executive office,
            principal place of business, corporate offices or warehouses or locations at which
            Collateral is held or stored, or the location of its records concerning the Collateral,
            in each case without at least 30 days prior written notice to Agent and after
            Agent’s written acknowledgment that any reasonable action requested by Agent in
            connection therewith, including to continue the perfection of any Liens in favor of
            Agent, on behalf of Lenders, in any Collateral, has been completed or taken, and
            provided that any such new location shall be in the continental United States.
            Without limiting the foregoing, no Credit Party shall change its name, identity or
            corporate structure in any manner that might make any financing or continuation
            statement filed in connection herewith seriously misleading within the meaning of
            Section 9-402(7) of the Code or any other then applicable provision of the Code except
            upon prior written notice to Agent and Lenders and after Agent’s written
            acknowledgment that any reasonable action requested by Agent in connection therewith,
            including to continue the perfection of any Liens in favor of Agent, on behalf of
            Lenders, in any Collateral, has been completed or taken. No Credit Party shall change
            its Fiscal Year.

            
                      6.16          
            No Impairment of Intercompany Transfers. No Credit Party shall directly or
            indirectly enter into or become bound by any agreement, instrument, indenture or other
            obligation (other than this Agreement and the other Loan Documents) that could directly
            or indirectly restrict, prohibit or require the consent of any Person with respect to
            the payment of dividends or distributions or the making or repayment of intercompany
            loans by a Subsidiary of Borrower to Borrower.

            
                      6.17          
            No Speculative Transactions. No Credit Party shall engage in any transaction
            involving commodity options, futures contracts or similar transactions, except solely
            to hedge against fluctuations in the prices of commodities owned or purchased by it and
            the values of foreign currencies receivable or payable by it and interest swaps, caps
            or collars.

            
                      6.18          
            Leases; Real Estate Purchases. Other than in connection with a sale-leaseback
            transaction permitted under Section 6.12, no Credit Party shall enter into any
            operating lease for Equipment or Real Estate, if the aggregate of all such operating
            lease payments payable in any year for all Credit Parties on a consolidated basis would
            exceed $5,000,000. No Credit Party shall purchase a fee simple ownership interest in
            Real Estate.

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                      6.19          
            Sale or Discount of Accounts. No Credit Party shall sell, or allow any other Credit
            Party to sell, or discount or otherwise dispose of any of its Accounts other than in
            connection with (i) the pledge and assignment to Agent for the benefit of the Lenders
            under the Loan Documents and (ii) with respect to Accounts owing by companies in
            bankruptcy.

            
                      6.20          
            Reserved.

            
                      6.21          
            No Further Negative Pledge. Except as (a) set forth in the First Lien Loan
            Documents, (b) with respect to specific property encumbered to secure payment of
            particular Indebtedness or to be sold pursuant to an executed agreement with respect to
            a permitted asset sale under Section 6.8 of this Agreement and (c) with respect
            to restrictions by reason of customary provisions restricting assignments, subletting
            or other transfers contained in leases, licenses and similar agreements entered into in
            the ordinary course of business (provided that such restrictions are limited to the
            property or assets secured by such Liens or the property or assets subject to such
            leases, licenses or similar agreements, as the case may be), no Credit Party shall
            enter into any agreement prohibiting the creation or assumption of any Lien upon any of
            its properties or assets, whether now owned or hereafter acquired, to secure the
            Obligations.

            
                      6.22          
            Amendments or Waivers of Certain Documents; First Lien Loan Document Notices. (a)
            The Borrower shall not, and shall not permit any Credit Party to, directly or
            indirectly, amend or otherwise change, cancel, terminate or waive the terms of (i) any
            document governing Indebtedness outstanding as of the date hereof and (ii) any First
            Lien Loan Document other than as permitted by the Intercreditor Agreement.

            
                                
                 (b) Whenever Borrower gives or serves upon any other
            party any notice, demand, request, consent, approval, declaration or other
            communication pursuant to any First Lien Loan Document, a copy of each such notice,
            demand, request, consent, approval, declaration or other communication also shall be
            served on Agent in the manner set forth in Section 11.10 of this
            Agreement.

            
            7.          TERM

            
                      7.1          
            Termination. The financing arrangements contemplated hereby shall be in effect
            until the Term Loan B Maturity Date, and the Loans and all other Obligations shall be
            automatically due and payable in full on such date.

            
                      7.2          
            Survival of Obligations Upon Termination of Financing Arrangements. Except as
            otherwise expressly provided for in the Loan Documents, no termination or cancellation
            (regardless of cause or procedure) of any financing arrangement under this Agreement
            shall in any way affect or impair the obligations, duties and liabilities of the Credit
            Parties or the rights of Agent and Lenders relating to any unpaid portion of the Loans
            or any other Obligations, due or not due, liquidated, contingent or unliquidated or any
            transaction or event occurring prior to such termination, or any transaction or event,
            the performance of which is required after the Term Loan B Maturity Date. Except as
            otherwise expressly provided herein or in any other Loan Document, all undertakings,
            agreements, covenants, warranties and representations of or binding upon the Credit
            Parties, and all rights of Agent and each Lender, all as contained in the Loan
            Documents, shall not terminate or expire, but rather shall survive any such termination
            or

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            cancellation and shall continue
            in full force and effect until the Termination Date; provided, that the
            provisions of Section 11, the payment obligations under Sections 1.15 and
            1.16, and the indemnities contained in the Loan Documents shall survive the
            Termination Date.

            
            8.       
            EVENTS OF DEFAULT; RIGHTS AND REMEDIES

            
                      8.1          
            Events of Default. The occurrence of any one or more of the following events
            (regardless of the reason therefor) shall constitute an “Event of
            Default” hereunder:

            
                                     (a)          Borrower
            (i) fails to make any payment of principal of, or interest on, or Fees owing in respect
            of, the Loans or any of the other Obligations when due and payable, or (ii) fails to
            pay or reimburse Agent or Lenders for any expense reimbursable hereunder or under any
            other Loan Document within 10 days following Agent’s demand for such
            reimbursement or payment of expenses.

            
                                     (b)          Any
            Credit Party fails or neglects to perform, keep or observe any of the provisions of
            Sections 1.4, 5.4(a) or 6, or any of the provisions set forth in Annex G,
            respectively.

            
                                     (c)          Borrower
            fails or neglects to perform, keep or observe (i) any of the provisions of Section
            4 or any provisions set forth in Annexes E or F (other than clause
            (q) of Annex E), respectively, and the same shall remain unremedied for 3
            days or more or (ii) the provisions set forth in clause (q) of Annex
            E.

            
                                     (d)          Any
            Credit Party fails or neglects to perform, keep or observe any other provision of this
            Agreement or of any of the other Loan Documents (other than any provision embodied in
            or covered by any other clause of this Section 8.1) and the same shall remain
            unremedied for 20 days or more.

            
                                     (e)          (i)
            A “Default” or “Event of Default” (or words having similar
            meaning) under and as defined in the First Lien Credit Agreement shall have occurred
            and be continuing or (ii) default or breach occurs under any other agreement, document
            or instrument to which any Credit Party is a party that is not cured within any
            applicable grace period therefor, and such default or breach (a) involves the failure
            to make any payment when due in respect of any Indebtedness or Guaranteed Indebtedness
            (other than the Obligations) of any Credit Party in excess of $500,000 in the aggregate
            (including (x) undrawn committed or available amounts and (y) amounts owing to all
            creditors under any combined or syndicated credit arrangements), or (b) causes, or
            permits any holder of such Indebtedness or Guaranteed Indebtedness or a trustee to
            cause, Indebtedness or Guaranteed Indebtedness or a portion thereof in excess of
            $500,000 in the aggregate to become due prior to its stated maturity or prior to its
            regularly scheduled dates of payment, or cash collateral to be demanded in respect
            thereof, in each case, regardless of whether such default is waived, or such right is
            exercised, by such holder or trustee.

            
                                     (f)          Any
            representation or warranty contained in any Loan Document or in any written statement,
            report, financial statement or certificate made or delivered to Agent or any Lender by
            any Credit Party is untrue or incorrect in any material respect as of the date when
            made or deemed made.

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                                     (g)          Assets
            of any Credit Party with a fair market value of $250,000 or more are attached, seized,
            levied upon or subjected to a writ or distress warrant, or come within the possession
            of any receiver, trustee, custodian or assignee for the benefit of creditors of any
            Credit Party and such condition continues for 30 days or more.

            
                                     (h)          A
            case or proceeding is commenced against any Credit Party seeking a decree or order in
            respect of such Credit Party (i) under the Bankruptcy Code or any other applicable
            federal, state or foreign bankruptcy or other similar law, (ii) appointing a custodian,
            receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such
            Credit Party or for any substantial part of any such Credit Party’s assets, or
            (iii) ordering the winding-up or liquidation of the affairs of such Credit Party, and
            such case or proceeding shall remain undismissed or unstayed for 60 days or more or a
            decree or order granting the relief sought in such case or proceeding by a court of
            competent jurisdiction.

            
                                     (i)          Any
            Credit Party (i) files a petition seeking relief under the Bankruptcy Code or any other
            applicable federal, state or foreign bankruptcy or other similar law, (ii) consents to
            or fails to contest in a timely and appropriate manner to the institution of
            proceedings thereunder or to the filing of any such petition or to the appointment of
            or taking possession by a custodian, receiver, liquidator, assignee, trustee or
            sequestrator (or similar official) for such Credit Party or for any substantial part of
            any such Credit Party’s assets, (iii) makes an assignment for the benefit of
            creditors, or (iv) takes any action in furtherance of any of the foregoing, or (v)
            admits in writing its inability to, or is generally unable to, pay its debts as such
            debts become due.

            
                                     (j)          A
            final judgment or judgments for the payment of money in excess of $250,000 in the
            aggregate at any time are outstanding against one or more of the Credit Parties and the
            same are not, within 30 days after the entry thereof, discharged or execution thereof
            stayed or bonded pending appeal, or such judgments are not discharged prior to the
            expiration of any such stay.

            
                                     (k)          Any
            material provision of any Loan Document for any reason ceases to be valid, binding and
            enforceable in accordance with its terms (or any Credit Party shall challenge the
            enforceability of any Loan Document or shall assert in writing, or engage in any action
            or inaction based on any such assertion, that any provision of any of the Loan
            Documents has ceased to be or otherwise is not valid, binding and enforceable in
            accordance with its terms), or any Lien created under any Loan Document ceases to be a
            valid and perfected second priority Lien (except as otherwise permitted herein or
            therein) in any of the Collateral purported to be covered thereby.

            
                                     (1)          Any
            Change of Control occurs.

            
                                     (m)          Any
            event occurs, whether or not insured or insurable, as a result of which
            revenue-producing activities cease or are substantially curtailed at any facility of
            Borrower generating more than 10% of Borrower’s revenues for the Fiscal Year
            preceding such event and such cessation or curtailment continues for more than 30 days,
            unless such revenue-producing activity can be continued elsewhere within such period of
            time without disruption in the business cycle.

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                      8.2          
            Remedies.

            
                                     (a)          If
            any Event of Default has occurred and is continuing, Agent may (and at the written
            request of Requisite Lenders shall), without notice except as otherwise expressly
            provided herein, increase the rate of interest applicable to the Loans to the Default
            Rate.

            
                                     (b)          If
            any Event of Default has occurred and is continuing, Agent may (and at the written
            request of the Requisite Lenders shall), without notice: (i) declare all or any portion
            of the Obligations, including all or any portion of any Loan to be forthwith due and
            payable, and require that the Letter of Credit Obligations be cash, all without
            presentment, demand, protest or further notice of any kind, all of which are expressly
            waived by Borrower and each other Credit Party; or (ii) exercise any rights and
            remedies provided to Agent under the Loan Documents or at law or equity, including all
            remedies provided under the Code; provided, that upon the occurrence of an Event
            of Default specified in Sections 8.1(h) or (i), all of the Obligations shall
            become immediately due and payable without declaration, notice or demand by any
            Person.

            
                      8.3          
            Waivers by Credit Parties. Except as otherwise provided for in this Agreement or by
            applicable law, each Credit Party waives: (a) presentment, demand and protest and
            notice of presentment, dishonor, notice of intent to accelerate, notice of
            acceleration, protest, default, nonpayment, maturity, release, compromise, settlement,
            extension or renewal of any or all commercial paper, accounts, contract rights,
            documents, instruments, chattel paper and guaranties at any time held by Agent on which
            any Credit Party may in any way be liable, and hereby ratifies and confirms whatever
            Agent may do in this regard, (b) all rights to notice and a hearing prior to
            Agent’s taking possession or control of, or to Agent’s replevy, attachment
            or levy upon, the Collateral or any bond or security that might be required by any
            court prior to allowing Agent to exercise any of its remedies, and (c) the benefit of
            all valuation, appraisal, marshaling and exemption laws.

            
            9.       
            ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT

            
                      9.1          
            Assignment and Participations.

            
                                     (a)          Subject
            to the terms of this Section 9.1, any Lender may make an assignment to a
            Qualified Assignee of, or sale of participations in, at any time or times, the Loan
            Documents, Loans, and any Commitment or any portion thereof or interest therein,
            including any Lender’s rights, title, interests, remedies, powers or duties
            thereunder. Any assignment by a Lender shall: (i) require the consent of Agent (which
            consent shall not be unreasonably withheld or delayed with respect to a Qualified
            Assignee) and the execution of an assignment agreement (an “Assignment
            Agreement” substantially in the form attached hereto as Exhibit 9.1
            (a) and otherwise in form and substance reasonably satisfactory to, and
            acknowledged by, Agent; (ii) be conditioned on such assignee Lender representing to the
            assigning Lender and Agent that it is purchasing the applicable Loans to be assigned to
            it for its own account, for investment purposes and not with a view to the distribution
            thereof; (iii) after giving effect to any such partial assignment, the assignee Lender
            shall have Loans in an amount at least equal to $1,000,000 and the assigning Lender
            shall have retained Loans in an amount at least equal to $1,000,000; and (iv) include a
            payment to Agent of an assignment fee of $3,500. In the case of an assignment by a
            Lender under this Section 9.1, the assignee shall have, to the extent of such
            assignment, the

            37

            

            

            

            same rights, benefits and
            obligations as all other Lenders hereunder. The assigning Lender shall be relieved of
            its obligations hereunder with respect to its Commitments or assigned portion thereof
            from and after the date of such assignment. Borrower hereby acknowledges and agrees
            that any assignment shall give rise to a direct obligation of Borrower to the assignee
            and that the assignee shall be considered to be a “Lender”. In all
            instances, each Lender’s liability to make Loans hereunder shall be several and
            not joint and shall be limited to such Lender’s Pro Rata Share of the applicable
            Commitment. In the event Agent or any Lender assigns or otherwise transfers all or any
            part of the Obligations, Agent or any such Lender shall so notify Borrower and Borrower
            shall, upon the request of Agent or such Lender, execute new Notes in exchange for the
            Notes, if any, being assigned. Notwithstanding the foregoing provisions of this
            Section 9.1 (a), any Lender may at any time pledge the Obligations held by it
            and such Lender’s rights under this Agreement and the other Loan Documents to a
            Federal Reserve Bank, and any lender that is an investment fund may assign the
            Obligations held by it and such Lender’s rights under this Agreement and the
            other Loan Documents to another investment fund managed by the same investment advisor
            or assign or pledge all or any portion of the Loans held by it (and Notes evidencing
            such Loans) to the trustee under any indenture to which such Lender is a party in
            support of its obligations to the trustee for the benefit of the applicable trust
            beneficiaries; provided, that no such pledge to a Federal Reserve Bank or
            trustee shall release such Lender from such Lender’s obligations hereunder or
            under any other Loan Document.

            
                                     (b)          Any
            participation by a Lender of all or any part of its Loans shall be made with the
            understanding that all amounts payable by Borrower hereunder shall be determined as if
            that Lender had not sold such participation, and that the holder of any such
            participation shall not be entitled to require such Lender to take or omit to take any
            action hereunder except actions directly affecting (i) any reduction in the principal
            amount of, or interest rate or Fees payable with respect to, any Loan in which such
            holder participates, (ii) any extension of the scheduled amortization of the principal
            amount of any Loan in which such holder participates or the final maturity date
            thereof, and (iii) any release of all or substantially all of the Collateral (other
            than in accordance with the terms of this Agreement, the Collateral Documents or the
            other Loan Documents). Solely for purposes of Sections 1.13, 1.15, 1.16 and
            9.8, Borrower acknowledges and agrees that a participation shall give rise to a
            direct obligation of Borrower to the participant and the participant shall be
            considered to be a “Lender”. Except as set forth in the preceding sentence
            neither Borrower nor any other Credit Party shall have any obligation or duty to any
            participant. Neither Agent nor any Lender (other than the Lender selling a
            participation) shall have any duty to any participant and may continue to deal solely
            with the Lender selling a participation as if no such sale had occurred.

            
                                     (c)          Except
            as expressly provided in this Section 9.1, no Lender shall, as between Borrower
            and that Lender, or Agent and that Lender, be relieved of any of its obligations
            hereunder as a result of any sale, assignment, transfer or negotiation of, or granting
            of participation in, all or any part of the Loans, the Notes or other Obligations owed
            to such Lender.

            
                                     (d)          Each
            Credit Party executing this Agreement shall assist any Lender permitted to sell
            assignments or participations under this Section 9.1 as reasonably required to
            enable the assigning or selling Lender to effect any such assignment or participation,
            including the execution and delivery of any and all agreements, notes and other
            documents and instruments as shall be requested and the preparation of informational
            materials for, and the participation of

            38

            

            

            

            management in meetings with,
            potential assignees or participants. Each Credit Party executing this Agreement shall
            certify the correctness, completeness and accuracy of all descriptions of the Credit
            Parties and their respective affairs contained in any selling materials provided by it
            and all other information provided by it and included in such materials, except that
            any Projections delivered by Borrower shall only be certified by Borrower as having
            been prepared by Borrower in compliance with the representations contained in
            Section 3.4(c).

            
                                (e)     A
            Lender may furnish any information concerning Credit Parties in the possession of such
            Lender from time to time to assignees and participants (including prospective assignees
            and participants); provided that such Lender shall obtain from assignees or
            participants confidentiality covenants substantially equivalent to those contained in
            Section 11.8.

            
                                (f)     So
            long as no Event of Default has occurred and is continuing, no Lender shall assign or
            sell participations in any portion of its Loans or Commitments to a potential Lender or
            participant, if, as of the date of the proposed assignment or sale, the assignee Lender
            or participant would be subject to capital adequacy or similar requirements under
            Section 1.16(a), increased costs under Section 1.16(b), an inability to
            fund LIBOR Loans under Section 1.16(c), or withholding taxes in accordance with
            Section 1.15(a).

            
                                (g)     Notwithstanding
            anything to the contrary contained herein, any Lender (a “Granting
            Lender”), may grant to a special purpose funding vehicle (an
            “SPC”), identified as such in writing by the Granting Lender to Agent and
            Borrower, the option to provide to Borrower all or any part of any Loans that such
            Granting Lender would otherwise be obligated to make to Borrower pursuant to this
            Agreement; provided that (i) nothing herein shall constitute a commitment by any
            SPC to make any Loan; and (ii) if an SPC elects not to exercise such option or
            otherwise fails to provide all or any part of such Loan, the Granting Lender shall be
            obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an
            SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent,
            and as if such Loan were made by such Granting Lender. No SPC shall be liable for any
            indemnity or similar payment obligation under this Agreement (all liability for which
            shall remain with the Granting Lender). Any SPC may (i) with notice to, but without the
            prior written consent of, Borrower and Agent and without paying any processing fee
            therefor assign all or a portion of its interests in any Loans to the Granting Lender
            or to any financial institutions (consented to by Borrower and Agent) providing
            liquidity and/or credit support to or for the account of such SPC to support the
            funding or maintenance of Loans and (ii) disclose on a confidential basis any
            non-public information relating to its Loans to any rating agency, commercial paper
            dealer or provider of any surety, guarantee or credit or liquidity enhancement to such
            SPC. This Section 9.1(g) may not be amended without the prior written consent of
            each Granting Lender, all or any of whose Loans are being funded by an SPC at the time
            of such amendment. For the avoidance of doubt, the Granting Lender shall for all
            purposes, including without limitation, the approval of any amendment or waiver of any
            provision of any Loan Document or the obligation to pay any amount otherwise payable by
            the Granting Lender under the Loan Documents, continue to be the Lender of record
            hereunder.

            
                      9.2     
            Appointment of Agent. Monroe Capital is hereby appointed to act on behalf of all
            Lenders as Agent under this Agreement and the other Loan Documents. The provisions of
            this Section 9.2 are solely for the benefit of Agent and Lenders and no Credit
            Party nor any other

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            Person shall have any rights as
            a third party beneficiary of any of the provisions hereof. In performing its functions
            and duties under this Agreement and the other Loan Documents, Agent shall act solely as
            an agent of Lenders and does not assume and shall not be deemed to have assumed any
            obligation toward or relationship of agency or trust with or for any Credit Party or
            any other Person. Agent shall have no duties or responsibilities except for those
            expressly set forth in this Agreement and the other Loan Documents. The duties of Agent
            shall be mechanical and administrative in nature and Agent shall not have, or be deemed
            to have, by reason of this Agreement, any other Loan Document or otherwise a fiduciary
            relationship in respect of any Lender. Except as expressly set forth in this Agreement
            and the other Loan Documents, Agent shall not have any duty to disclose, and shall not
            be liable for failure to disclose, any information relating to any Credit Party or any
            of their respective Subsidiaries or any Account Debtor that is communicated to or
            obtained by Monroe Capital or any of its Affiliates in any capacity. Neither Agent nor
            any of its Affiliates nor any of their respective officers, directors, employees,
            agents or representatives shall be liable to any Lender for any action taken or omitted
            to be taken by it hereunder or under any other Loan Document, or in connection herewith
            or therewith, except for damages caused by its or their own gross negligence or willful
            misconduct.

            
                                If
            Agent shall request instructions from Requisite Lenders, or all affected Lenders with
            respect to any act or action (including failure to act) in connection with this
            Agreement or any other Loan Document, then Agent shall be entitled to refrain from such
            act or taking such action unless and until Agent shall have received instructions from
            Requisite Lenders, or all affected Lenders, as the case may be, and Agent shall not
            incur liability to any Person by reason of so refraining. Agent shall be fully
            justified in failing or refusing to take any action hereunder or under any other Loan
            Document (a) if such action would, in the opinion of Agent, be contrary to law or the
            terms of this Agreement or any other Loan Document, (b) if such action would, in the
            opinion of Agent, expose Agent to Environmental Liabilities or (c) if Agent shall not
            first be indemnified to its satisfaction against any and all liability and expense
            which may be incurred by it by reason of taking or continuing to take any such action.
            Without limiting the foregoing, no Lender shall have any right of action whatsoever
            against Agent as a result of Agent acting or refraining from acting hereunder or under
            any other Loan Document in accordance with the instructions of Requisite Lenders, or
            all affected Lenders, as applicable.

            
                      9.3     
            Agent’s Reliance, Etc. Neither Agent nor any of its Affiliates nor any of
            their respective directors, officers, agents or employees shall be liable for any
            action taken or omitted to be taken by it or them under or in connection with this
            Agreement or the other Loan Documents, except for damages caused by its or their own
            gross negligence or willful misconduct. Without limiting the generality of the
            foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until Agent
            receives written notice of the assignment or transfer thereof signed by such payee and
            in form reasonably satisfactory to Agent; (b) may consult with legal counsel,
            independent public accountants and other experts selected by it and shall not be liable
            for any action taken or omitted to be taken by it in good faith in accordance with the
            advice of such counsel, accountants or experts; (c) makes no warranty or representation
            to any Lender and shall not be responsible to any Lender for any statements, warranties
            or representations made in or in connection with this Agreement or the other Loan
            Documents; (d) shall not have any duty to ascertain or to inquire as to the performance
            or observance of any of the terms, covenants or conditions of this Agreement or the
            other Loan Documents on the part of any Credit Party or to inspect the Collateral
            (including the books and records) of any Credit

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            Party; (e) shall not be
            responsible to any Lender for the due execution, legality, validity, enforceability,
            genuineness, sufficiency or value of this Agreement or the other Loan Documents or any
            other instrument or document furnished pursuant hereto or thereto; and (f) shall incur
            no liability under or in respect of this Agreement or the other Loan Documents by
            acting upon any notice, consent, certificate or other instrument or writing (which may
            be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or
            sent by the proper party or parties.

            
                      9.4     
            Monroe Capital and Affiliates. With respect to its Loan hereunder, Monroe Capital
            shall have the same rights and powers under this Agreement and the other Loan Documents
            as any other Lender and may exercise the same as though it were not Agent; and the term
            “Lender” or “Lenders” shall, unless otherwise expressly
            indicated, include Monroe Capital in its individual capacity. Monroe Capital and its
            Affiliates may lend money to, invest in, and generally engage in any kind of business
            with, any Credit Party, any of their Affiliates and any Person who may do business with
            or own securities of any Credit Party or any such Affiliate, all as if Monroe Capital
            were not Agent and without any duty to account therefor to Lenders. Monroe Capital and
            its Affiliates may accept fees and other consideration from any Credit Party for
            services in connection with this Agreement or otherwise without having to account for
            the same to Lenders.

            
                      9.5     
            Lender Credit Decision. Each Lender acknowledges that it has, independently and
            without reliance upon Agent or any other Lender and based on the Financial Statements
            referred to in Section 3.4(a) and such other documents and information as it has
            deemed appropriate, made its own credit and financial analysis of the Credit Parties
            and its own decision to enter into this Agreement. Each Lender also acknowledges that
            it will, independently and without reliance upon Agent or any other Lender and based on
            such documents and information as it shall deem appropriate at the time, continue to
            make its own credit decisions in taking or not taking action under this Agreement. Each
            Lender acknowledges the potential conflict of interest of each other Lender as a result
            of Lenders holding disproportionate interests in the Loans, and expressly consents to,
            and waives any claim based upon, such conflict of interest.

            
                      9.6     
            Indemnification. Lenders agree to indemnify Agent (to the extent not reimbursed by
            Credit Parties and without limiting the obligations of Borrower hereunder), ratably
            according to their respective Pro Rata Shares, from and against any and all
            liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
            expenses or disbursements of any kind or nature whatsoever that may be imposed on,
            incurred by, or asserted against Agent in any way relating to or arising out of this
            Agreement or any other Loan Document or any action taken or omitted to be taken by
            Agent in connection therewith; provided, that no Lender shall be liable for any
            portion of such liabilities, obligations, losses, damages, penalties, actions,
            judgments, suits, costs, expenses or disbursements resulting from Agent’s gross
            negligence or willful misconduct. Without limiting the foregoing, each Lender agrees to
            reimburse Agent promptly upon demand for its ratable share of any out-of-pocket
            expenses (including reasonable counsel fees) incurred by Agent in connection with the
            preparation, execution, delivery, administration, modification, amendment or
            enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal
            advice in respect of rights or responsibilities under, this Agreement and each other
            Loan Document, to the extent that Agent is not reimbursed for such expenses by Credit
            Parties.

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                      9.7     
            Successor Agent. Agent may resign at any time by giving not less than 30
            days’ prior written notice thereof to Lenders and Borrower. Upon any such
            resignation, the Requisite Lenders shall have the right to appoint a successor Agent.
            If no successor Agent shall have been so appointed by the Requisite Lenders and shall
            have accepted such appointment within 30 days after the resigning Agent’s giving
            notice of resignation, then the resigning Agent may, on behalf of Lenders, appoint a
            successor Agent, which shall be a Lender, if a Lender is willing to accept such
            appointment, or otherwise shall be a commercial bank or financial institution or a
            subsidiary of a commercial bank or financial institution if such commercial bank or
            financial institution is organized under the laws of the United States of America or of
            any State thereof and has a combined capital and surplus of at least $300,000,000. If
            no successor Agent has been appointed pursuant to the foregoing, within 30 days after
            the date such notice of resignation was given by the resigning Agent, such resignation
            shall become effective and the Requisite Lenders shall thereafter perform all the
            duties of Agent hereunder until such time, if any, as the Requisite Lenders appoint a
            successor Agent as provided above. Any successor Agent appointed by Requisite Lenders
            hereunder shall be subject to the approval of Borrower, such approval not to be
            unreasonably withheld or delayed; provided that such approval shall not be
            required if a Default or an Event of Default has occurred and is continuing. Upon the
            acceptance of any appointment as Agent hereunder by a successor Agent, such successor
            Agent shall succeed to and become vested with all the rights, powers, privileges and
            duties of the resigning Agent. Upon the earlier of the acceptance of any appointment as
            Agent hereunder by a successor Agent or the effective date of the resigning
            Agent’s resignation, the resigning Agent shall be discharged from its duties and
            obligations under this Agreement and the other Loan Documents, except that any
            indemnity rights or other rights in favor of such resigning Agent shall continue. After
            any resigning Agent’s resignation hereunder, the provisions of this Section
            9 shall inure to its benefit as to any actions taken or omitted to be taken by it
            while it was acting as Agent under this Agreement and the other Loan
            Documents.

            
                      9.8     
            Setoff and Sharing of Payments. In addition to any rights now or hereafter granted
            under applicable law and not by way of limitation of any such rights, upon the
            occurrence and during the continuance of any Event of Default and subject to Section
            9.9(f), each Lender is hereby authorized at any time or from time to time, without
            notice to any Credit Party or to any other Person, any such notice being hereby
            expressly waived, to offset and to appropriate and to apply any and all balances held
            by it at any of its offices for the account of Borrower or any Guarantor (regardless of
            whether such balances are then due to Borrower or any Guarantor) and any other
            properties or assets at any time held or owing by that Lender or that holder to or for
            the credit or for the account of Borrower or any Guarantor against and on account of
            any of the Obligations that are not paid when due. Any Lender exercising a right of
            setoff or otherwise receiving any payment on account of the Obligations in excess of
            its Pro Rata Share thereof shall purchase for cash (and the other Lenders or holders
            shall sell) such participations in each such other Lender’s or holder’s Pro
            Rata Share of the Obligations as would be necessary to cause such Lender to share the
            amount so offset or otherwise received with each other Lender or holder in accordance
            with their respective Pro Rata Shares, (other than offset rights exercised by any
            Lender with respect to Sections 1.13, 1.15 or 1.16). Borrower and each Guarantor
            agrees, to the fullest extent permitted by law, that (a) any Lender may exercise its
            right to offset with respect to amounts in excess of its Pro Rata Share of the
            Obligations and may sell participations in such amounts so offset to other Lenders and
            holders and (b) any Lender so purchasing a participation in the Loans made or other
            Obligations held by other Lenders or

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            holders may exercise all rights
            of offset, bankers’ lien, counterclaim or similar rights with respect to such
            participation as fully as if such Lender or holder were a direct holder of the Loans
            and the other Obligations in the amount of such participation. Notwithstanding the
            foregoing, if all or any portion of the offset amount or payment otherwise received is
            thereafter recovered from the Lender that has exercised the right of offset, the
            purchase of participations by that Lender shall be rescinded and the purchase price
            restored without interest.

            
                      9.9     
            Advances; Payments; Non-Funding Lenders; Information; Actions in
            Concert.

            
                                (a)     
            Payments. On the 2nd Business Day of each calendar week or more frequently at
            Agent’s election (each, a “Settlement Date”), Agent
            shall advise each Lender by telephone, or telecopy of the amount of such Lender’s
            Pro Rata Share of principal, interest and Fees paid for the benefit of Lenders with
            respect to each applicable Loan. Agent shall pay to each Lender such Lender’s Pro
            Rata Share of principal, interest and Fees paid by Borrower since the previous
            Settlement Date for the benefit of such Lender on the Loans held by it. Such payments
            shall be made by wire transfer to such Lender’s account (as specified by such
            Lender in Annex H or the applicable Assignment Agreement) not later than 2:00
            p.m. (New York time) on the next Business Day following each Settlement
            Date.

            
                                (b)     
            Reserved.

            
                                (c)     
            Return of Payments.

            
                                          (i)     If
            Agent pays an amount to a Lender under this Agreement in the belief or expectation that
            a related payment has been or will be received by Agent from Borrower and such related
            payment is not received by Agent, then Agent will be entitled to recover such amount
            from such Lender on demand without setoff, counterclaim or deduction of any
            kind.

            
                                          (ii)     If
            Agent determines at any time that any amount received by Agent under this Agreement
            must be returned to Borrower or paid to any other Person pursuant to any insolvency law
            or otherwise, then, notwithstanding any other term or condition of this Agreement or
            any other Loan Document, Agent will not be required to distribute any portion thereof
            to any Lender. In addition, each Lender will repay to Agent on demand any portion of
            such amount that Agent has distributed to such Lender, together with interest at such
            rate, if any, as Agent is required to pay to Borrower or such other Person, without
            setoff, counterclaim or deduction of any kind.

            
                                (d)     
            Reserved.

            
                                (e)     
            Dissemination of Information. Agent shall use reasonable efforts to provide Lenders
            with any notice of Default or Event of Default received by Agent from, or delivered by
            Agent to, any Credit Party, with notice of any Event of Default of which Agent has
            actually become aware and with notice of any action taken by Agent following any Event
            of Default; provided, that Agent shall not be liable to any Lender for any failure to
            do so, except to the extent that such failure is attributable to Agent’s gross
            negligence or willful misconduct. Lenders acknowledge that Borrower is required to
            provide Financial Statements and Collateral Reports to Lenders in accordance with
            Annexes E and F hereto and agree that Agent shall have no duty to provide
            the same to Lenders.

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            (f)          Actions in
            Concert. Anything in this Agreement to the contrary notwithstanding, each Lender
            hereby agrees with each other Lender that no Lender shall take any action to protect or
            enforce its rights arising out of this Agreement or the Notes (including exercising any
            rights of setoff) without first obtaining the prior written consent of Agent and
            Requisite Lenders, it being the intent of Lenders that any such action to protect or
            enforce rights under this Agreement and the Notes shall be taken in concert and at the
            direction or with the consent of Agent or Requisite Lenders.

            
            10.         
            SUCCESSORS AND ASSIGNS

            
                          10.1     
            Successors and Assigns. This Agreement and the other Loan Documents shall be
            binding on and shall inure to the benefit of each Credit Party, Agent, Lenders and
            their respective successors and assigns (including, in the case of any Credit Party, a
            debtor-in-possession on behalf of such Credit Party), except as otherwise provided
            herein or therein. No Credit Party may assign, transfer, hypothecate or otherwise
            convey its rights, benefits, obligations or duties hereunder or under any of the other
            Loan Documents without the prior express written consent of Agent and Lenders. Any such
            purported assignment, transfer, hypothecation or other conveyance by any Credit Party
            without the prior express written consent of Agent and Lenders shall be void. The terms
            and provisions of this Agreement are for the purpose of defining the relative rights
            and obligations of each Credit Party, Agent and Lenders with respect to the
            transactions contemplated hereby and no Person shall be a third party beneficiary of
            any of the terms and provisions of this Agreement or any of the other Loan
            Documents.

            
            11.         
            MISCELLANEOUS

            
                          11.1     
            Complete Agreement; Modification of Agreement. The Loan Documents constitute the
            complete agreement between the parties with respect to the subject matter thereof and
            may not be modified, altered or amended except as set forth in Section 11.2. Any
            letter of interest, commitment letter or fee letter (other than the Monroe Capital Fee
            Letter) between any Credit Party and Agent or any Lender or any of their respective
            Affiliates, predating this Agreement and relating to a financing of substantially
            similar form, purpose or effect shall be superseded by this Agreement. Notwithstanding
            anything in this Section 11.1 to the contrary, if the syndication of the Term
            Loan B has not been completed on the Closing Date and Agent determines that changes to
            the terms of this Agreement are advisable in order to ensure a successful syndication
            of such Term Loan B, this Agreement may be amended to the extent provided in the
            post-closing syndication letter dated as of the date hereof between Borrower and
            Monroe. With respect to such changes, Borrower, the other Credit Parties and the
            Lenders agree that, notwithstanding anything to the contrary in Section 11.2 or
            otherwise, no consent of Borrower, any other Credit Party or any Lender to amend or
            modify the terms of this Agreement or any other Loan Document to the extent provided in
            the immediately preceding sentence is required and no consent of any Lender is required
            to amend or modify the terms of this Agreement.

            
                          11.2     
            Amendments and Waivers.

            
                                      (a)          Except
            for actions expressly permitted to be taken by Agent, no amendment, modification,
            termination or waiver of any provision of this Agreement or any other

            44

            

            

            

            Loan Document, or any consent to
            any departure by any Credit Party therefrom, shall in any event be effective unless the
            same shall be in writing and signed by Agent and Borrower, and by Requisite Lenders, or
            all affected Lenders, as applicable. Except as set forth in clause (b) below,
            all such amendments, modifications, terminations or waivers requiring the consent of
            any Lenders shall require the written consent of Requisite Lenders.

            
                                    (b)          No
            amendment, modification, termination or waiver shall, unless in writing and signed by
            Agent and each Lender directly affected thereby: (i) increase the principal amount of
            any Lender’s Commitment or Pro Rata Share (which action shall be deemed only to
            affect those Lenders whose Commitments and Pro Rata Shares are increased and may be
            approved by Requisite Lenders, including those lenders whose Commitments and Pro Rata
            Shares are increased); (ii) reduce the principal of, rate of interest on or Fees
            payable with respect to any Loan of any affected Lender; (iii) extend any scheduled
            payment date (other than payment dates of mandatory prepayments under Section
            1.3(b) or final maturity date of the principal amount of any Loan of any affected
            Lender; (iv) waive, forgive, defer, extend or postpone any payment of interest or Fees
            as to any affected Lender; (v) release any Guaranty or, except as otherwise permitted
            herein or in the other Loan Documents, release, or permit any Credit Party to sell or
            otherwise dispose of, any Collateral with a value exceeding $5,000,000 in the aggregate
            (which action shall be deemed to directly affect all Lenders); (vi) change the
            percentage of the Commitments or of the aggregate unpaid principal amount of the Loans
            that shall be required for Lenders or any of them to take any action hereunder; and
            (vii) amend or waive this Section 11.2 or the definition of the terms
            “Requisite Lenders” insofar as such definitions affect the substance of
            this Section 11.2. Furthermore, no amendment, modification, termination or
            waiver affecting the rights or duties of Agent under this Agreement or any other Loan
            Document shall be effective unless in writing and signed by Agent in addition to
            Lenders required hereinabove to take such action. Each amendment, modification,
            termination or waiver shall be effective only in the specific instance and for the
            specific purpose for which it was given. No amendment, modification, termination or
            waiver shall be required for Agent to take additional Collateral pursuant to any Loan
            Document. No amendment, modification, termination or waiver of any provision of any
            Note shall be effective without the written concurrence of the holder of that Note. No
            notice to or demand on any Credit Party in any case shall entitle such Credit Party or
            any other Credit Party to any other or further notice or demand in similar or other
            circumstances. Any amendment, modification, termination, waiver or consent effected in
            accordance with this Section 11.2 shall be binding upon each holder of the Notes
            at the time outstanding and each future holder of the Notes.

            
                                    (c)          If,
            in connection with any proposed amendment, modification, waiver or termination (a
            “Proposed Change”) requiring the consent of all affected Lenders,
            the consent of Requisite Lenders is obtained, but the consent of other Lenders whose
            consent is required is not obtained (any such Lender whose consent is not obtained as
            described in this clause being referred to as a “Non-Consenting
            Lender”), then, so long as Agent is not a Non-Consenting Lender, at
            Borrower’s request Agent, or a Person reasonably acceptable to Agent, shall have
            the right with Agent’s consent and in Agent’s sole discretion (but shall
            have no obligation) to purchase from such Non-Consenting Lenders, and such
            Non-Consenting Lenders agree that they shall, upon Agent’s request, sell and
            assign to Agent or such Person, all of the Commitments of such Non-Consenting Lenders
            for an amount equal to the principal balance of all Loans held by the Non-Consenting
            Lenders and all accrued interest and Fees with respect thereto through the

            45

            

            

            

            date of sale, such purchase and
            sale to be consummated pursuant to an executed Assignment Agreement.

            
                                    (d)          Upon
            payment in full in cash and performance of all of the Obligations (other than
            indemnification Obligations), termination of the Commitments and a release of all
            claims against Agent and Lenders, and so long as no suits, actions proceedings, or
            claims are pending or threatened against any Indemnified Person asserting any damages,
            losses or liabilities that are Indemnified Liabilities, Agent shall deliver to Borrower
            termination statements, mortgage releases and other documents necessary or appropriate
            to evidence the termination of the Liens securing payment of the
            Obligations.

            
                      11.3       
            Fees and Expenses. Borrower shall reimburse (i) Agent for all fees, costs and
            expenses (including the reasonable fees and expenses of all of its counsel, advisors,
            consultants and auditors) and (ii) Agent (and, with respect to clauses (c) and
            (d) below, all Lenders) for all fees, costs and expenses, including the reasonable
            fees, costs and expenses of counsel or other advisors (including environmental and
            management consultants and appraisers) incurred in connection with the negotiation,
            preparation and filing and/or recordation of the Loan Documents and incurred in
            connection with:

            
                                    (a)          the
            forwarding to Borrower or any other Person on behalf of Borrower by Agent of the
            proceeds of any Loan (including a wire transfer fee of $25 per wire
            transfer);

            
                                    (b)          any
            amendment, modification or waiver of, or consent with respect to, or termination of,
            any of the Loan Documents or Related Transactions Documents or advice in connection
            with the syndication and administration of the Loans made pursuant hereto or its rights
            hereunder or thereunder;

            
                                    (c)          any
            litigation, contest, dispute, suit, proceeding or action (whether instituted by Agent,
            any Lender, any Credit Party or any other Person and whether as a party, witness or
            otherwise) in any way relating to the Collateral, any of the Loan Documents or any
            other agreement to be executed or delivered in connection herewith or therewith,
            including any litigation, contest, dispute, suit, case, proceeding or action, and any
            appeal or review thereof, in connection with a case commenced by or against any or all
            of the Credit Parties or any other Person that may be obligated to Agent by virtue of
            the Loan Documents, including any such litigation, contest, dispute, suit, proceeding
            or action arising in connection with any work-out or restructuring of the Loans during
            the pendency of one or more Events of Default; provided that in the case of
            reimbursement of counsel for Lenders other than Agent, such reimbursement shall be
            limited to one counsel for all such Lenders; provided, further, that no Person
            shall be entitled to reimbursement under this clause (c) in respect of any
            litigation, contest, dispute, suit, proceeding or action to the extent any of the
            foregoing results from such Person’s gross negligence or willful
            misconduct;

            
                                    (d)          any
            attempt to enforce any remedies of Agent or any Lender against any or all of the Credit
            Parties or any other Person that may be obligated to Agent or any Lender by virtue of
            any of the Loan Documents, including any such attempt to enforce any such remedies in
            the course of any work-out or restructuring of the Loans during the pendency of one or
            more

            46

            

            

            

            Events of Default;
            provided, that in the case of reimbursement of counsel for Lenders other than
            Agent, such reimbursement shall be limited to one counsel for all such
            Lenders;

            
                                    (e)          any
            workout or restructuring of the Loans during the pendency of one or more Events of
            Default; and

            
                                    (f)          efforts
            to (i) monitor the Loans or any of the other Obligations, (ii) evaluate, observe or
            assess any of the Credit Parties or their respective affairs, and (iii) verify,
            protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of
            any of the Collateral;

            including, as to each of
            clauses (a) through (f) above, all reasonable attorneys’ and other
            professional and service providers’ fees arising from such services and other
            advice, assistance or other representation, including those in connection with any
            appellate proceedings, and all expenses, costs, charges and other reasonable fees
            incurred by such counsel and others in connection with or relating to any of the events
            or actions described in this Section 11.3, all of which shall be payable, on
            demand, by Borrower to Agent. Without limiting the generality of the foregoing, such
            expenses, costs, charges and fees may include: reasonable fees, costs and expenses of
            accountants, environmental advisors, appraisers, investment bankers, management and
            other consultants and paralegals; court costs and expenses; photocopying and
            duplication expenses; court reporter fees, costs and expenses; long distance telephone
            charges; air express charges; telegram or telecopy charges; secretarial overtime
            charges; and expenses for travel, lodging and food paid or incurred in connection with
            the performance of such legal or other advisory services.

            
                      11.4          
            No Waiver. Agent’s or any Lender’s failure, at any time or times, to
            require strict performance by the Credit Parties of any provision of this Agreement or
            any other Loan Document shall not waive, affect or diminish any right of Agent or such
            Lender thereafter to demand strict compliance and performance herewith or therewith.
            Any suspension or waiver of an Event of Default shall not suspend, waive or affect any
            other Event of Default whether the same is prior or subsequent thereto and whether the
            same or of a different type. Subject to the provisions of Section 11.2, none of
            the undertakings, agreements, warranties, covenants and representations of any Credit
            Party contained in this Agreement or any of the other Loan Documents and no Default or
            Event of Default by any Credit Party shall be deemed to have been suspended or waived
            by Agent or any Lender, unless such waiver or suspension is by an instrument in writing
            signed by an officer of or other authorized employee of Agent and the applicable
            required Lenders and directed to Borrower specifying such suspension or
            waiver.

            
                      11.5          
            Remedies. Agent’s and Lenders’ rights and remedies under this Agreement
            shall be cumulative and nonexclusive of any other rights and remedies that Agent or any
            Lender may have under any other agreement, including the other Loan Documents, by
            operation of law or otherwise. Recourse to the Collateral shall not be
            required.

            
                      11.6          
            Severability. Wherever possible, each provision of this Agreement and the other
            Loan Documents shall be interpreted in such a manner as to be effective and valid under
            applicable law, but if any provision of this Agreement or any other Loan Document shall
            be prohibited by or invalid under applicable law, such provision shall be ineffective
            only to the

            47

            

            

            

            extent of such prohibition or
            invalidity, without invalidating the remainder of such provision or the remaining
            provisions of this Agreement or such other Loan Document.

            
                      11.7          
            Conflict of Terms. Except as otherwise provided in this Agreement or any of the
            other Loan Documents by specific reference to the applicable provisions of this
            Agreement, if any provision contained in this Agreement conflicts with any provision in
            any of the other Loan Documents, the provision contained in this Agreement shall govern
            and control.

            
                      11.8          
            Confidentiality. Agent and each Lender agree to use commercially reasonable efforts
            (equivalent to the efforts Agent or such Lender applies to maintain the confidentiality
            of its own confidential information) to maintain as confidential all confidential
            information provided to them by the Credit Parties and designated as confidential for a
            period of 2 years following receipt thereof, except that Agent and each Lender may
            disclose such information (a) to Persons employed or engaged by Agent or such Lender in
            evaluating, approving, structuring or administering the Loans and the Commitments; (b)
            to any bona fide assignee or participant or potential assignee or participant that has
            agreed to comply with the covenant contained in this Section 11.8 (and any such
            bona fide assignee or participant or potential assignee or participant may disclose
            such information to Persons employed or engaged by them as described in clause (a)
            above); (c) as required or requested by any Governmental Authority or reasonably
            believed by Agent or such Lender to be compelled by any court decree, subpoena or legal
            or administrative order or process; (d) as, on the advise of Agent’s or such
            Lender’s counsel, is required by law; (e) in connection with the exercise of any
            right or remedy under the Loan Documents or in connection with any Litigation to which
            Agent or such Lender is a party; or (f) that ceases to be confidential through no fault
            of Agent or any Lender.

            
                      11.9          
            GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN
            DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
            PERFORMANCE, THE LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED
            AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE
            TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE
            UNITED STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS AND AGREES THAT THE
            STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL
            HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE
            CREDIT PARTIES, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
            DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
            OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT AGENT, LENDERS AND THE CREDIT
            PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
            HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY AND; PROVIDED,
            FURTHER THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
            PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
            JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
            OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF
            AGENT.

            48

            

            

            

            EACH CREDIT PARTY EXPRESSLY
            SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
            COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION
            THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER
            VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING
            OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH
            CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND
            OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF
            SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
            ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS SET FORTH IN ANNEX I OF THIS
            AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH
            CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER DEPOSIT IN THE
            UNITED STATES MAILS, PROPER POSTAGE PREPAID.

            
                      11.10     
            Notices. Except as otherwise provided herein, whenever it is provided herein
            that any notice, demand, request, consent, approval, declaration or other communication
            shall or may be given to or served upon any of the parties by any other parties, or
            whenever any of the parties desires to give or serve upon any other parties any
            communication with respect to this Agreement, each such notice, demand, request,
            consent, approval, declaration or other communication shall be in writing and shall be
            deemed to have been validly served, given or delivered (a) upon the earlier of actual
            receipt and 3 Business Days after deposit in the United States Mail, registered or
            certified mail, return receipt requested, with proper postage prepaid, (b) upon
            transmission, when sent by telecopy or other similar facsimile transmission (with such
            telecopy or facsimile promptly confirmed by delivery of a copy by personal delivery or
            United States Mail as otherwise provided in this Section 11.10); (c) 1 Business
            Day after deposit with a reputable overnight courier with all charges prepaid or (d)
            when delivered, if hand-delivered by messenger, all of which shall be addressed to the
            party to be notified and sent to the address or facsimile number indicated in Annex
            I or to such other address (or facsimile number) as may be substituted by notice
            given as herein provided. The giving of any notice required hereunder may be waived in
            writing by the party entitled to receive such notice. Failure or delay in delivering
            copies of any notice, demand, request, consent, approval, declaration or other
            communication to any Person (other than Borrower or Agent) designated in Annex I
            to receive copies shall in no way adversely affect the effectiveness of such notice,
            demand, request, consent, approval, declaration or other communication.

            
                      11.11     
            Section Titles. The Section titles and Table of Contents contained in this
            Agreement are and shall be without substantive meaning or content of any kind
            whatsoever and are not a part of the agreement between the parties hereto.

            
                      11.12     
            Counterparts. This Agreement may be executed in any number of separate
            counterparts, each of which shall collectively and separately constitute one
            agreement.

            
                      11.13     
            WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH
            COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
            EXPERIENCED AND

            49

            

            

            

            EXPERT PERSON AND THE PARTIES
            WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
            PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
            APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
            OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL
            BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER
            SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT, LENDERS AND ANY CREDIT PARTY
            ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
            ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN
            DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

            
                      11.14     
            Press Releases and Related Matters. Each Credit Party executing this Agreement
            agrees that neither it nor its Affiliates will in the future issue any press releases
            or other public disclosure using the name of Monroe Capital or its affiliates or
            referring to this Agreement, the other Loan Documents or the Related Transactions
            Documents without at least 2 Business Days’ prior notice to Monroe Capital and
            without the prior written consent of Monroe Capital unless (and only to the extent
            that) such Credit Party or Affiliate is required to do so under law and then, in any
            event, such Credit Party or Affiliate will consult with Monroe Capital before issuing
            such press release or other public disclosure. Each Credit Party consents to the
            publication by Agent or any Lender of a tombstone or similar advertising material
            relating to the financing transactions contemplated by this Agreement. Agent or such
            Lender shall provide a draft of any such tombstone or similar advertising material to
            each Credit Party for review and comment prior to the publication thereof. Agent
            reserves the right to provide to industry trade organizations information necessary and
            customary for inclusion in league table measurements.

            
                      11.15     
            Reinstatement. This Agreement shall remain in full force and effect and continue to
            be effective should any petition be filed by or against any Credit Party for
            liquidation or reorganization, should any Credit Party become insolvent or make an
            assignment for the benefit of any creditor or creditors or should a receiver or trustee
            be appointed for all or any significant part of any Credit Party’s assets, and
            shall continue to be effective or to be reinstated, as the case may be, if at any time
            payment and performance of the Obligations, or any part thereof, is, pursuant to
            applicable law, rescinded or reduced in amount, or must otherwise be restored or
            returned by any obligee of the Obligations, whether as a “voidable
            preference,” “fraudulent conveyance,” or otherwise, all as though
            such payment or performance had not been made. In the event that any payment, or any
            part thereof, is rescinded, reduced, restored or returned, the Obligations shall be
            reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
            restored or returned.

            
                      11.16     
            Advice of Counsel. Each of the parties represents to each other party hereto that
            it has discussed this Agreement and, specifically, the provisions of Sections 11.9
            and 11.13, with its counsel.

            
                      11.17     
            No Strict Construction. The parties hereto have participated jointly in the
            negotiation and drafting of this Agreement. In the event an ambiguity or question of
            intent or interpretation arises, this Agreement shall be construed as if drafted
            jointly by the parties hereto

            50

            

            

            

            and no presumption or burden of
            proof shall arise favoring or disfavoring any party by virtue of the authorship of any
            provisions of this Agreement.

            51

            

            

            

            
                                IN
            WITNESS WHEREOF, this Agreement has been duly executed as of the date first written
            above.

            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER SERVICE
                        GROUP, INC.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        
                        
                        

                    
	
                        

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                          Mark
                        Koscinski

                    
	
                         

                    	
                        Title:

                    	
                         Vice-President
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        MONROE CAPITAL
                        MANAGEMENT

                        ADVISORS LLC,

                    
	
                         

                    	
                         

                    	
                        as Agent and
                        Lender

                    
	
                         

                    	
                        By:

                    	
                         

                    
	
                        

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                        
                           Duly
                        Authorized Signatory

                    

            Signature Page to
            Second Lien Credit Agreement

            

            

            

            
                                IN
            WITNESS WHEREOF, this Agreement has been duly executed as of the date first written
            above.

            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER SERVICE
                        GROUP, INC.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Title:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        MONROE CAPITAL
                        MANAGEMENT

                        ADVISORS LLC,

                    
	
                         

                    	
                        as Agent and
                        Lender

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        
                        
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        
                           Duly
                        Authorized Signatory

                    

            Signature Page to
            Second Lien Credit Agreement

            

            

            

            
                                The
            following Persons are signatories to this Agreement in their capacity as Credit Parties
            and not as Borrowers.

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER
                        INTERNATIONAL, INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER SERVICES
                        INTERNATIONAL, INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER TELECOM,
                        INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER
                        PUBLISHING, INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER OF NEW
                        JERSEY REALTY CORP.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER SERVICES,
                        INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    

            Signature Page to
            Second Lien Credit Agreement

            

            

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        BUTLER UTILITY
                        SERVICE, INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        Name:

                    	
                        MARK
                        KOSCINSKI

                    
	
                         

                    	
                        Title:

                    	
                        Vice-President,
                        Controller

                    

            Signature Page to
            Second Lien Credit Agreement

            

            

            

            ANNEX A
            (Recitals)

            to

            CREDIT AGREEMENT

            
            DEFINITIONS

            
                                Capitalized
            terms used in the Loan Documents shall have (unless otherwise provided elsewhere in the
            Loan Documents) the following respective meanings and all references to Sections,
            Exhibits, Schedules or Annexes in the following definitions shall refer to Sections,
            Exhibits, Schedules or Annexes of or to the Agreement:

            
                                
            “2005 Year End Financial Information” has the meaning ascribed to it in
            subsection (q) of Annex E.

            
                                
            “2006 Year End Financial Information” has the meaning ascribed to it in
            subsection (q) of Annex E.

            
                                
            “Account Debtor” means any Person who may become obligated to any Credit Party
            under, with respect to, or on account of, an Account.

            
                                
            “Accounting Changes” has the meaning ascribed thereto in Annex
            G.

            
                                
            “Accounts” means all “accounts,” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party, including (a) all accounts
            receivable, other receivables, book debts and other forms of obligations (other than
            forms of obligations evidenced by Chattel Paper, Documents or Instruments), whether
            arising out of goods sold or services rendered by it or from any other transaction
            (including any such obligations that may be characterized as an account or contract
            right under the Code), (b) all of each Credit Party’s rights in, to and under all
            purchase orders or receipts for goods or services, (c) all of each Credit Party’s
            rights to any goods represented by any of the foregoing (including unpaid
            sellers’ rights of rescission, replevin, reclamation and stoppage in transit and
            rights to returned, reclaimed or repossessed goods), (d) all monies due or to become
            due to any Credit Party, under all purchase orders and contracts for the sale of goods
            or the performance of services or both by such Credit Party or in connection with any
            other transaction (whether or not yet earned by performance on the part of such Credit
            Party), including the right to receive the proceeds of said purchase orders and
            contracts, (e) all healthcare insurance receivables, and (f) all collateral security
            and guaranties of any kind, now or hereafter in existence, given by any Account Debtor
            or other Person with respect to any of the foregoing.

            
                                
            “Affiliate” means, with respect to any Person, (a) each Person that, directly
            or indirectly, owns or controls, whether beneficially, or as a trustee, guardian or
            other fiduciary, 5% or more of the Stock having ordinary voting power in the election
            of directors of such Person, (b) each Person that controls, is controlled by or is
            under common control with such Person, (c) each of such Person’s officers,
            directors, joint venturers and partners and (d) in the case of Borrower, the immediate
            family members, spouses and lineal descendants of individuals who are Affiliates of
            Borrower. For the purposes of this definition, “control” of a Person
            shall mean the possession, directly or indirectly, of the power to direct or cause the
            direction of its management

            A-l

            

            

            

            or policies, whether through the
            ownership of voting securities, by contract or otherwise; provided,
            however, that the term “Affiliate” shall specifically exclude
            Agent and each Lender.

            
                                
            “Agent” means Monroe Capital in its capacity as Agent for Lenders or its
            successor appointed pursuant to Section 9.7.

            
                                
            “Agreement” means the Second Lien Credit Agreement by and among Borrower, the
            other Credit Parties party thereto, Monroe Capital, as Agent and Lender and the other
            Lenders from time to time party thereto, as the same may be amended, supplemented,
            restated or otherwise modified from time to time.

            
                                
            “Anti-Terrorism Law” has the meaning ascribed to it in Section
            3.27(a).

            
                                
            “Appendices” has the meaning ascribed to it in the recitals to the
            Agreement.

            
                                
            “Applicable Margins” means collectively the Applicable Term Loan B Index
            Margin and the Applicable Term Loan B LIBOR Margin.

            
                                
            “Applicable Term Loan B Index Margin” means the per annum interest rate from
            time to time in effect and payable in addition to the Index Rate applicable to the Term
            Loan B, as determined by reference to Section 1.5(a).

            
                                
            “Applicable Term Loan B LIBOR Margin” means the per annum interest rate from
            time to time in effect and payable in addition to the LIBOR Rate applicable to the Term
            Loan B, as determined by reference to Section 1.5(a).

            
                                
            “Assignment Agreement” has the meaning ascribed to it in Section
            9.l(a).

            
                                
            “Bankruptcy Code” means the provisions of Title 11 of the United States Code,
            11 U.S.C. §§ 101 et seq.

            
                                
            “Borrower” has the meaning ascribed thereto in the preamble to the
            Agreement.

            
                                
            “Borrower Pledge Agreement” means the Pledge Agreement of even date herewith
            executed by Borrower in favor of Agent, on behalf of itself and Lenders, pledging all
            Stock of its Subsidiaries, if any, and all Intercompany Notes owing to or held by
            it.

            
                                
            “Borrower Security Agreement” means the Borrower Security Agreement of even
            date herewith entered into by and among Agent, on behalf of itself and Lenders, and
            Borrower.

            
                                
            “Business Day” means any day that is not a Saturday, a Sunday or a day on
            which banks are required or permitted to be closed in the State of New York and in
            reference to LIBOR Loans shall mean any such day that is also a LIBOR Business
            Day.

            
                                
            “Butler Foundation” means Butler International Charitable Foundation Corp., a
            not-for-profit corporation organized under the laws of New Jersey.

            A-2

            

            

            

            
                                
            “Butler India” means Butler Technical Services India Private Limited, a
            company organized under the law of India.

            
                                
            “Butler NJ” means butler of New Jersey Realty Corp., a New Jersey
            corporation.

            
                                
            “Capital Expenditures” means, with respect to any Person, all expenditures (by
            the expenditure of cash or the incurrence of Indebtedness) by such Person during any
            measuring period for any fixed assets or improvements or for replacements,
            substitutions or additions thereto, that have a useful life of more than one year and
            that are required to be capitalized under GAAP.

            
                                
            “Capital Lease” means, with respect to any Person, any lease of any property
            (whether real, personal or mixed) by such Person as lessee that, in accordance with
            GAAP, would be required to be classified and accounted for as a capital lease on a
            balance sheet of such Person.

            
                                
            “Capital Lease Obligation” means, with respect to any Capital Lease of any
            Person, the amount of the obligation of the lessee thereunder that, in accordance with
            GAAP, would appear on a balance sheet of such lessee in respect of such Capital
            Lease.

            
                                
            “Change of Control” means any of the following: (a) any person or group of
            persons (within the meaning of the Securities Exchange Act of 1934) shall have acquired
            beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities
            and Exchange Commission under the Securities Exchange Act of 1934) of 20% or more of
            the issued and outstanding shares of capital Stock of Holdings having the right to vote
            for the election of directors of Holdings under ordinary circumstances; (b) during any
            period of twelve consecutive calendar months, individuals who at the beginning of such
            period constituted the board of directors of Holdings (together with any new directors
            whose election by the board of directors of Holdings or whose nomination for election
            by the Stockholders of Holdings was approved by a vote of at least two-thirds of the
            directors then still in office who either were directors at the beginning of such
            period or whose election or nomination for election was previously so approved) cease
            for any reason other than death or disability to constitute a majority of the directors
            then in office; (c) Holdings ceases to own and control all of the economic and voting
            rights associated with all of the outstanding capital Stock of Borrower; (d) Borrower
            ceases to own and control all of the economic and voting rights associated with all of
            the outstanding capital Stock of any of its Subsidiaries; (e) Edward M. Kopko shall
            cease to be responsible for the day to day management of the Borrower, or (f) any
            “Change of Control” or similar event shall occur under the First Lien
            Credit Agreement..

            
                                
            “Charges” means all federal, state, county, city, municipal, local, foreign or
            other governmental taxes (including taxes owed to the PBGC at the time due and
            payable), levies, assessments, charges, liens, claims or encumbrances upon or relating
            to (a) the Collateral, (b) the Obligations, (c) the employees, payroll, income or gross
            receipts of any Credit Party, (d) any Credit Party’s ownership or use of any
            properties or other assets, or (e) any other aspect of any Credit Party’s
            business.

            A-3

            

            

            

            
                                
            “Chattel Paper” means any “chattel paper,” as such term is defined
            in the Code, including electronic chattel paper, now owned or hereafter acquired by any
            Credit Party, wherever located.

            
                                
            “Closing Date” means August 29, 2007.

            
                                
            “Closing Checklist” means the schedule, including all appendices, exhibits or
            schedules thereto, listing certain documents and information to be delivered in
            connection with the Agreement, the other Loan Documents and the transactions
            contemplated thereunder, substantially in the form attached hereto as Annex
            D.

            
                                
            “Code” means the Uniform Commercial Code as the same may, from time to time,
            be enacted and in effect in the State of New York; provided, that in the event
            that, by reason of mandatory provisions of law, any or all of the attachment,
            perfection or priority of, or remedies with respect to, Agent’s or any
            Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as
            enacted and in effect in a jurisdiction other than the State of New York, the term
            “Code” shall mean the Uniform Commercial Code as enacted and in
            effect in such other jurisdiction solely for purposes of the provisions thereof
            relating to such attachment, perfection, priority or remedies and for purposes of
            definitions related to such provisions.

            
                                
            “Collateral” means the property covered by the Security Agreement, the
            Intellectual Property Security Agreement, the Mortgages and the other Collateral
            Documents and any other property, real or personal, tangible or intangible, now
            existing or hereafter acquired, that may at any time be or become subject to a security
            interest or Lien in favor of Agent, on behalf of itself and Lenders, to secure the
            Obligations.

            
                                
            “Collateral Documents” means the Security Agreements, the Pledge Agreements,
            the Guaranties, the Intellectual Property Security Agreement, the Mortgages, and all
            similar agreements entered into guaranteeing payment of, or granting a Lien upon
            property as security for payment of, the Obligations.

            
                                
            “Collateral Reports” means the reports with respect to the Collateral referred
            to in Annex F.

            
                                
            “Collection Account” means the account of Agent as may be specified in writing
            by Agent as the “Collection Account” from time to time.

            
                                
            “Commitments” means (a) as to any Lender, such Lender’s Term Loan B
            Commitment as set forth on Annex J to the Agreement or in the most recent
            Assignment Agreement executed by such Lender and (b) as to all Lenders, the aggregate
            of all Lenders’ Term Loan B Commitments, which aggregate commitment shall be
            Twenty-Three Million Dollars ($23,000,000.00) on the Closing Date, as to each of
            clauses (a) and (b), as such Commitments may be reduced, amortized or adjusted
            from time to time in accordance with the Agreement.

            
                                
            “Compliance Certificate” has the meaning ascribed to it in Annex
            E.

            A-4

            

            

            

            
                                
            “Consolidated Interest Expense” means, for any period, the sum of the amount
            which would, in conformity with GAAP, be set forth opposite the captions
            “interest expense” or any like caption (expressed as a negative number) in
            each case on a consolidated income statement of Holdings and its Subsidiaries;
            provided, however, that all interest expense associated with the Borrower’s real
            estate holdings shall be included with such amount.

            
                                
            “Consolidated Net Income” means, for any fiscal period, the consolidated net
            income (or loss) of Holdings and its Subsidiaries for such period, determined on a
            consolidated basis in accordance with GAAP.

            
                                
            “Contracts” means all “contracts,” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party, in any event, including all
            contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper,
            Documents or Instruments) in or under which any Credit Party may now or hereafter have
            any right, title or interest, including any agreement relating to the terms of payment
            or the terms of performance of any Account.

            
                                
            “Copyright License” means any and all rights now owned or hereafter acquired
            by any Credit Party under any written agreement granting any right to use any Copyright
            or Copyright registration.

            
                                
            “Copyrights” means all of the following now owned or hereafter adopted or
            acquired by any Credit Party: (a) all copyrights and General Intangibles of like nature
            (whether registered or unregistered), all registrations and recordings thereof, and all
            applications in connection therewith, including all registrations, recordings and
            applications in the United States Copyright Office or in any similar office or agency
            of the United States, any state or territory thereof, or any other country or any
            political subdivision thereof, and (b) all reissues, extensions or renewals
            thereof.

            
                                
            “Credit Parties” means Holdings, Borrower, and each of Holdings’
            Subsidiaries other than Butler India, Butler Foundation, AAC Corp. or Sylvan Insurance
            Co., Ltd.

            
                                
            “Default” means any event that, with the passage of time or notice or both,
            would, unless cured or waived, become an Event of Default.

            
                                
            “Default Rate” has the meaning ascribed to it in Section
            1.5(d).

            
                                
            “Deposit Accounts” means all “deposit accounts” as such term is
            defined in the Code, now or hereafter held in the name of any Credit Party.

            
                                
            “Disclosure Schedules” means the Schedules prepared by Borrower and
            denominated as Disclosure Schedules 1.4 through 6.7 in the Index to the
            Agreement.

            
                                
            “Documents” means any “documents,” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party, wherever located.

            
                                
            “Dollars” or “$” means lawful currency of the United States
            of America.

            A-5

            

            

            

            
                                
            “EBIT” means, for any period, Consolidated Net Income for such period,
            plus (i) Consolidated Interest Expense in such period, plus (ii) deferred
            financing cost amortization, plus (iii) all charges in such period for federal,
            state and local income taxes excluding (iv) all extraordinary nonrecurring items
            of income or loss.

            
                                
            “EBITDA” means, for any period, EBIT for such period, plus (i) all
            charges in such period for amortization of intangibles, depletion and depreciation,
            (ii) the amount of non-cash charges as the result of any grant to any Person of Stock
            or other non-cash consideration (iii) actual fees and expenses incurred in connection
            with the Related Transactions (including, without limitation, forbearance fees paid
            prior to the effectiveness of the First Lien Loan Documents) as set forth in writing to
            Agent and acceptable to Agent in its sole discretion, (iv) charges related to the
            Levine Leichtman transaction, expenses associated with the audit process for the 2004,
            2005 and 2006 Fiscal Years and severance costs paid to the former chief financial
            officer and (v) non-recurring, extraordinary items set forth in writing to the Agent
            and acceptable to Agent in its sole discretion, in each case, to the extent deducted in
            determining Consolidated Net Income for such period.

            
                                
            “Environmental Laws” means all applicable federal, state, local and foreign
            laws, statutes, ordinances, codes, rules, standards and regulations, now or hereafter
            in effect, and any applicable judicial or administrative interpretation thereof,
            including any applicable judicial or administrative order, consent decree, order or
            judgment, imposing liability or standards of conduct for or relating to the regulation
            and protection of human health, safety, the environment and natural resources
            (including ambient air, surface water, groundwater, wetlands, land surface or
            subsurface strata, wildlife, aquatic species and vegetation). Environmental Laws
            include the Comprehensive Environmental Response, Compensation, and Liability Act of
            1980 (42 U.S.C. §§9601 et seq.) (“CERCLA”); the
            Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§
            5101 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
            §§ 136 et seq.); the Solid Waste Disposal Act (42 U.S.C. §§
            6901 et seq.); the Toxic Substance Control Act (15 U.S.C. §§ 2601
            et seq.); the Clean Air Act (42 U.S.C. §§ 7401 et seq.); the
            Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.); the
            Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.); and the
            Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), and any and all
            regulations promulgated thereunder, and all analogous state, local and foreign
            counterparts or equivalents and any transfer of ownership notification or approval
            statutes.

            
                                
            “Environmental Liabilities” means, with respect to any Person, all
            liabilities, obligations, responsibilities, response, remedial and removal costs,
            investigation and feasibility study costs, capital costs, operation and maintenance
            costs, losses, damages, punitive damages, property damages, natural resource damages,
            consequential damages, treble damages, costs and expenses (including all reasonable
            fees, disbursements and expenses of counsel, experts and consultants), fines,
            penalties, sanctions and interest incurred as a result of or related to any claim,
            suit, action, investigation, proceeding or demand by any Person, whether based in
            contract, tort, implied or express warranty, strict liability, criminal or civil
            statute or common law, including any arising under or related to any Environmental
            Laws, Environmental Permits, or in connection with any Release or threatened Release or
            presence of a Hazardous Material whether on, at, in, under, from or about or in the
            vicinity of any real or personal property.

            A-6

            

            

            

            
                                
            “Environmental Permits” means all permits, licenses, authorizations,
            certificates, approvals or registrations required by any Governmental Authority under
            any Environmental Laws.

            
                                
            “Equipment” means all “equipment,” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party, wherever located and, in any
            event, including all such Credit Party’s machinery and equipment, including
            processing equipment, conveyors, machine tools, data processing and computer equipment,
            including embedded software and peripheral equipment and all engineering, processing
            and manufacturing equipment, office machinery, furniture, materials handling equipment,
            tools, attachments, accessories, automotive equipment, trailers, trucks, forklifts,
            molds, dies, stamps, motor vehicles, rolling stock and other equipment of every kind
            and nature, trade fixtures and fixtures not forming a part of real property, together
            with all additions and accessions thereto, replacements therefor, all parts therefor,
            all substitutes for any of the foregoing, fuel therefor, and all manuals, drawings,
            instructions, warranties and rights with respect thereto, and all products and proceeds
            thereof and condemnation awards and insurance proceeds with respect thereto.

            
                                
            “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
            from time to time, and any regulations promulgated thereunder.

            
                                
            “ERISA Affiliate” means, with respect to any Credit Party, any trade or
            business (whether or not incorporated) that, together with such Credit Party, are
            treated as a single employer within the meaning of Sections 414(b), (c), (m) or (o) of
            the IRC.

            
                                
            “ERISA Event” means, with respect to any Credit Party or any ERISA Affiliate,
            (a) any event described in Section 4043(c) of ERISA with respect to a Title IV Plan;
            (b) the withdrawal of any Credit Party or ERISA Affiliate from a Title IV Plan subject
            to Section 4063 of ERISA during a plan year in which it was a substantial employer, as
            defined in Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal of any
            Credit Party or any ERISA Affiliate from any Multiemployer Plan; (d) the filing of a
            notice of intent to terminate a Title IV Plan or the treatment of a plan amendment as a
            termination under Section 4041 of ERISA; (e) the institution of proceedings to
            terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) the failure by any
            Credit Party or ERISA Affiliate to make when due required contributions to a
            Multiemployer Plan or Title IV Plan unless such failure is cured within 30 days; (g)
            any other event or condition that might reasonably be expected to constitute grounds
            under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
            administer, any Title IV Plan or Multiemployer Plan or for the imposition of liability
            under Section 4069 or 4212(c) of ERISA; (h) the termination of a Multiemployer Plan
            under Section 4041A of ERISA or the reorganization or insolvency of a Multiemployer
            Plan under Section 4241 or 4245 of ERISA; or (i) the loss of a Qualified Plan’s
            qualification or tax exempt status; or (j) the termination of a Plan described in
            Section 4064 of ERISA.

            
                                
            “ESOP” means a Plan that is intended to satisfy the requirements of Section
            4975(e)(7) of the IRC.

            
                                
            “Event of Default” has the meaning ascribed to it in Section
            8.1.

            A-7

            

            

            

            
                                
            “Excess Cash Flow” means, without duplication, with respect to any Fiscal Year
            of Holdings and its Subsidiaries, EBITDA minus (a) Capital Expenditures during
            such Fiscal Year (excluding the financed portion thereof), minus (b) Interest
            Expense paid or accrued (excluding any original issue discount, interest paid in kind
            or amortized debt discount, to the extent included in determining Interest Expense) and
            scheduled principal payments paid or payable in respect of Funded Debt, minus
            (c) Restricted Payments made to any Person other than a Credit Party during such Fiscal
            Year, minus (d) prepayments paid in cash pursuant to Sections 1.3(a),
            (b)(i) and (b)(iii) of this Agreement and pursuant to Section 1.3
            of the First Lien Credit Agreement (other than mandatory prepayments made pursuant to
            Sections 1.3(b)(i), (b)(ii), (b)(iv) or 1.3(d) of the First Lien Credit
            Agreement), minus (e) amounts actually paid by Holdings and its Subsidiaries for
            federal, state and local income tax obligations.

            
                                
            “Executive Order” has the meaning ascribed to it in Section
            3.27(a).

            
                                
            “Fair Labor Standards Act” means the Fair Labor Standards Act, 29 U.S.C.
            §201 et seq.

            
                                
            “Federal Funds Rate” means, for any day, a floating rate equal to the weighted
            average of the rates on overnight federal funds transactions among members of the
            Federal Reserve System, as determined by Agent in its sole discretion, which
            determination shall be final, binding and conclusive (absent manifest
            error).

            
                                
            “Federal Reserve Board” means the Board of Governors of the Federal Reserve
            System.

            
                                
            “Fees” means any and all fees payable to Agent or any Lender pursuant to the
            Agreement or any of the other Loan Documents.

            
                                
            “Financial Covenants” means the financial covenants set forth in Annex
            G.

            
                                
            “Financial Statements” means the consolidated and consolidating income
            statements, statements of cash flows and balance sheets of Borrower delivered in
            accordance with Section 3.4 and Annex E.

            
                                
            “First Lien Agent” means General Electric Capital Corporation, as agent under
            the First Lien Credit Agreement, or any successor agent under the First Lien Credit
            Agreement.

            
                                
            “First Lien Credit Agreement” means that certain Third Amended and Restated
            Credit Agreement, dated as of the date hereof, by and among Borrower, GE Capital, and
            the other lenders party thereto from time to time, as amended, restated, supplemented,
            refinanced or replaced from time to time in accordance with the terms of the
            Intercreditor Agreement.

            
                                
            “First Lien Indebtedness” means Indebtedness incurred by Borrower pursuant to
            the First Lien Credit Agreement and secured solely by any or all assets that constitute
            Collateral, which security has the priority set forth in the Intercreditor
            Agreement.

            A-8

            

            

            

            
                                
            “First Lien Loan Documents” means the First Lien Credit Agreement and all
            other “Loan Documents” under and as defined in the First Lien Credit
            Agreement, as in effect on the Closing Date, and as the same may be amended, restated,
            supplemented or replaced from time to time in accordance with the terms of the
            Intercreditor Agreement.

            
                                
            “Fiscal Month” means any of the monthly accounting periods of
            Borrower.

            
                                
            “Fiscal Quarter” means any of the quarterly accounting periods of Borrower,
            ending on or about the last day of March, June, September and December of each
            year.

            
                                
            “Fiscal Year” means any of the annual accounting periods of Borrower ending on
            December 31 of each year.

            
                                
            “Fixed Charges” means, with respect to any Person for any fiscal period, (a)
            the aggregate of all Interest Expense paid in cash during such period, plus (b)
            scheduled payments of principal with respect to Indebtedness during such period, plus
            (c) Capital Expenditures during such period (excluding the financed portion thereof)
            plus (d) amounts actually paid by Holdings and its Subsidiaries for federal, state and
            local income tax obligations plus (e) Restricted Payments paid to any Person other than
            a Credit Party during such period, minus (f) any payments received as a result of tax
            refunds.

            
                                
            “Fixed Charge Coverage Ratio” means, with respect to any Person for any fiscal
            period, the ratio of EBITDA to Fixed Charges.

            
                                
            “Fixtures” means all “fixtures” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party.

            
                                
            “Funded Debt” means, with respect to any Person, without duplication, all
            Indebtedness for borrowed money evidenced by notes, bonds, debentures, or similar
            evidences of Indebtedness and that by its terms matures more than one year from, or is
            directly or indirectly renewable or extendible at such Person’s option under a
            revolving credit or similar agreement obligating the lender or lenders to extend credit
            over a period of more than one year from the date of creation thereof, and specifically
            including Capital Lease Obligations, current maturities of long-term debt, revolving
            credit and short-term debt extendible beyond one year at the option of the debtor, and
            also including, in the case of Borrower, the Obligations, the First Lien Indebtedness
            and, without duplication, Guaranteed Indebtedness consisting of guaranties of Funded
            Debt of other Persons, but excluding, without duplication, unmatured obligations with
            respect to letters of credit; provided, that solely for the purposes of calculating the
            Leverage Ratio for periods ending on or before March 31, 2008, there shall be added to
            Funded Debt (i) the net proceeds from any sale, transfer, conveyance, assignment or
            other disposition of all or any portion of the Montvale Property and (ii) the net
            proceeds from any sale or offering of Holdings Stock after the Closing Date except to
            the extent such proceeds are used to make a Restricted Payment permitted under Section
            6.14(f).

            
                                
            “GAAP” means generally accepted accounting principles in the United States of
            America, consistently applied, as such term is further defined in Annex G to the
            Agreement.

            A-9

            

            

            

            
                                
            “General Intangibles” means “general intangibles,” as such term is
            defined in the Code, now owned or hereafter acquired by any Credit Party, including all
            right, title and interest that such Credit Party may now or hereafter have in or under
            any Contract, all payment intangibles, customer lists, Licenses, Copyrights,
            Trademarks, Patents, and all applications therefor and reissues, extensions or renewals
            thereof, rights in Intellectual Property, interests in partnerships, joint ventures and
            other business associations, licenses, permits, copyrights, trade secrets, proprietary
            or confidential information, inventions (whether or not patented or patentable),
            technical information, procedures, designs, knowledge, know-how, software, data bases,
            data, skill, expertise, experience, processes, models, drawings, materials and records,
            goodwill (including the goodwill associated with any Trademark or Trademark License),
            all rights and claims in or under insurance policies (including insurance for fire,
            damage, loss and casualty, whether covering personal property, real property, tangible
            rights or intangible rights, all liability, life, key man and business interruption
            insurance, and all unearned premiums), uncertificated securities, choses in action,
            deposit, checking and other bank accounts, rights to receive tax refunds and other
            payments, rights to receive dividends, distributions, cash, Instruments and other
            property in respect of or in exchange for pledged Stock and Investment Property, rights
            of indemnification, all books and records, correspondence, credit files, invoices and
            other papers, including without limitation all tapes, cards, computer runs and other
            papers and documents in the possession or under the control of such Credit Party or any
            computer bureau or service company from time to time acting for such Credit
            Party.

            
                                
            “Goods” means any “goods” as defined in the Code, now owned or
            hereafter acquired by any Credit Party, including embedded software.

            
                                
            “Governmental Authority” means any nation or government, any state or other
            political subdivision thereof, and any agency, department or other entity exercising
            executive, legislative, judicial, regulatory or administrative functions of or
            pertaining to government.

            
                                
            “Guaranteed Indebtedness” means, as to any Person, any obligation of such
            Person guaranteeing, providing comfort or otherwise supporting any Indebtedness, lease,
            dividend, or other obligation (“primary obligation”) of any other
            Person (the “primary obligor”) in any manner, including any
            obligation or arrangement of such Person to (a) purchase or repurchase any such primary
            obligation, (b) advance or supply funds (i) for the purchase or payment of any such
            primary obligation or (ii) to maintain working capital or equity capital of the primary
            obligor or otherwise to maintain the net worth or solvency or any balance sheet
            condition of the primary obligor, (c) purchase property, securities or services
            primarily for the purpose of assuring the owner of any such primary obligation of the
            ability of the primary obligor to make payment of such primary obligation, (d) protect
            the beneficiary of such arrangement from loss (other than product warranties given in
            the ordinary course of business) or (e) indemnify the owner of such primary obligation
            against loss in respect thereof. The amount of any Guaranteed Indebtedness at any time
            shall be deemed to be an amount equal to the lesser at such time of (x) the stated or
            determinable amount of the primary obligation in respect of which such Guaranteed
            Indebtedness is incurred and (y) the maximum amount for which such Person may be liable
            pursuant to the terms of the instrument embodying such Guaranteed Indebtedness, or, if
            not stated or determinable, the maximum reasonably anticipated liability (assuming full
            performance) in respect thereof.

            A-10

            

            

            

            
                                
            “Guaranties” means, collectively, the Holdings Guaranty, each Subsidiary
            Guaranty and any other guaranty executed by any Guarantor in favor of Agent and Lenders
            in respect of the Obligations.

            
                                
            “Guarantors” means Holdings and each Subsidiary of Holdings (other than Butler
            India, Butler Foundation, AAC Corp. and Sylvan Insurance Co., Ltd.), and each other
            Person, if any, that executes a guaranty or other similar agreement in favor of Agent,
            for itself and the ratable benefit of Lenders, in connection with the transactions
            contemplated by the Agreement and the other Loan Documents.

            
                                
            “Hazardous Material” means any substance, material or waste that is regulated
            by, or forms the basis of liability now or hereafter under, any Environmental Laws,
            including any material or substance that is (a) defined as a “solid waste,”
            “hazardous waste,” “hazardous material,” “hazardous
            substance,” “extremely hazardous waste,” “restricted hazardous
            waste,” “pollutant,” “contaminant,” “hazardous
            constituent,” “special waste,” “toxic substance” or other
            similar term or phrase under any Environmental Laws, or (b) petroleum or any fraction
            or by-product thereof, asbestos, polychlorinated biphenyls (PCB’s), or any
            radioactive substance.

            
                                
            “Holdings” has the meaning ascribed thereto in the recitals to the
            Agreement.

            
                                
            “Holdings Guaranty” means the Guaranty dated of even date herewith executed by
            Holdings and Butler NJ in favor of Agent, on behalf of itself and Lenders.

            
                                
            “Holdings Pledge Agreement” means the Pledge Agreement of even date herewith
            executed by Holdings in favor of Agent, on behalf of itself and Lenders, pledging all
            Stock of Borrower.

            
                                
            “Holdings Security Agreement” means the Security Agreement dated of even date
            herewith executed by and among Holdings and Butler NJ and Agent, on behalf of itself
            and the Lenders.

            
                                
            “Indebtedness” means, with respect to any Person, without duplication (a) all
            indebtedness of such Person for borrowed money or for the deferred purchase price of
            property payment for which is deferred 6 months or more, but excluding obligations to
            trade creditors incurred in the ordinary course of business that are unsecured and not
            overdue by more than 6 months unless being contested in good faith, (b) all
            reimbursement and other obligations with respect to letters of credit, banker’s
            acceptances and surety bonds, whether or not matured, (c) all obligations evidenced by
            notes, bonds, debentures or similar instruments, (d) all indebtedness created or
            arising under any conditional sale or other title retention agreement with respect to
            property acquired by such Person (even though the rights and remedies of the seller or
            lender under such agreement in the event of default are limited to repossession or sale
            of such property), (e) all Capital Lease Obligations and the present value (discounted
            at the Index Rate as in effect on the Closing Date) of future rental payments under all
            synthetic leases, (f) all obligations of such Person under commodity purchase or option
            agreements or other commodity price hedging arrangements, in each case whether
            contingent or matured, (g) all obligations of such Person under any foreign exchange
            contract, currency swap agreement, interest rate swap, cap or collar agreement or other
            similar agreement or arrangement designed to alter the risks of that Person

            A-11

            

            

            

            arising from fluctuations in
            currency values or interest rates, in each case whether contingent or matured, (h) all
            Indebtedness referred to above secured by (or for which the holder of such Indebtedness
            has an existing right, contingent or otherwise, to be secured by) any Lien upon or in
            property or other assets (including accounts and contract rights) owned by such Person,
            even though such Person has not assumed or become liable for the payment of such
            Indebtedness, and (i) the Obligations.

            
                                
            “Indemnified Liabilities” has the meaning ascribed to it in Section
            1.13.

            
                                
            “Indemnified Person” has the meaning ascribed to it in Section
            1.13.

            
                                
            “Index Rate” means, for any day, a floating rate equal to the higher of (i)
            the rate publicly quoted from time to time by The Wall Street Journal as the
            “base rate on corporate loans posted by at least 75% of the nation’s 30
            largest banks” (or, if The Wall Street Journal ceases quoting a base rate
            of the type described, the highest per annum rate of interest published by the Federal
            Reserve Board in Federal Reserve statistical release H. I5 (519) entitled
            “Selected Interest Rates” as the Bank prime loan rate or its equivalent),
            and (ii) the Federal Funds Rate plus 50 basis points per annum. Each change in any
            interest rate provided for in the Agreement based upon the Index Rate shall take effect
            at the time of such change in the Index Rate.

            
                                
            “Index Rate Loan” means a Loan or portion thereof bearing interest by
            reference to the Index Rate.

            
                                
            “Instruments” means all “instruments,” as such term is defined in
            the Code, now owned or hereafter acquired by any Credit Party, wherever located, and,
            in any event, including all certificated securities, all certificates of deposit, and
            all notes and other, without limitation, evidences of indebtedness, other than
            instruments that constitute, or are a part of a group of writings that constitute,
            Chattel Paper.

            
                                
            “Intellectual Property” means any and all Licenses, Patents, Copyrights,
            Trademarks, and the goodwill associated with such Trademarks.

            
                                
            “Intellectual Property Security Agreement” means the Intellectual Property
            Security Agreement of even date herewith made in favor of Agent on behalf of itself and
            Lenders, by each applicable Credit Party.

            
                                
            “Intercompany Notes” has the meaning ascribed to it in Section
            6.3.

            
                                
            “Intercreditor Agreement” means that certain Intercreditor Agreement, dated as
            of August 29, 2007, as amended, restated or replaced from time to time, between by
            First Lien Agent and Agent, and acknowledged by Borrower.

            
                                
            “Interest Expense” means, with respect to any Person for any fiscal period,
            interest expense (whether cash or non-cash) of such Person determined in accordance
            with GAAP for the relevant period ended on such date, including interest expense with
            respect to any Funded Debt of such Person and interest expense for the relevant period
            that has been capitalized on the balance sheet of such Person, but excluding deferred
            financing cost amortization.

            A-12

            

            

            

            
                                
            “Interest Payment Date” means (a) as to any Index Rate Loan, the first
            Business Day of each month to occur while such Loan is outstanding, and (b) as to any
            LIBOR Loan, the last day of the applicable LIBOR Period; provided that, in
            addition to the foregoing, each of (x) the date upon which all of the Commitments have
            been terminated and the Loans have been paid in full and (y) the Term Loan B Maturity
            Date shall be deemed to be an “Interest Payment Date” with respect
            to any interest that has then accrued under the Agreement.

            
                                
            “Inventory” means any “inventory,” as such term is defined in the
            Code, now owned or hereafter acquired by any Credit Party, wherever located, and in any
            event including inventory, merchandise, goods and other personal property that are held
            by or on behalf of any Credit Party for sale or lease or are furnished or are to be
            furnished under a contract of service, or that constitute raw materials, work in
            process, finished goods, returned goods, supplies or materials of any kind, nature or
            description used or consumed or to be used or consumed in such Credit Party’s
            business or in the processing, production, packaging, promotion, delivery or shipping
            of the same, including other supplies and embedded software.

            
                                
            “Investment Property” means all “investment property” as such term
            is defined in the Code now owned or hereafter acquired by any Credit Party, wherever
            located, including (i) all securities, whether certificated or uncertificated,
            including stocks, bonds, interests in limited liability companies, partnership
            interests, treasuries, certificates of deposit, and mutual fund shares; (ii) all
            securities entitlements of any Credit Party, including the rights of such Credit Party
            to any securities account and the financial assets held by a securities intermediary in
            such securities account and any free credit balance or other money owing by any
            securities intermediary with respect to that account; (iii) all securities accounts of
            any Credit Party; (iv) all commodity contracts of any Credit Party; and (v) all
            commodity accounts held by any Credit Party.

            
                                
            “IRC” means the Internal Revenue Code of 1986, as amended, and all regulations
            promulgated thereunder.

            
                                
            “IRS” means the Internal Revenue Service.

            
                                
            “Lenders” means Monroe Capital, any other Lenders named on the signature pages
            of the Agreement, and, if any such Lender shall decide to assign all or any portion of
            the Obligations, such term shall include any assignee of such Lender.

            
                                
            “Letter-of-Credit Rights” means letter-of-credit rights as such term is
            defined in the Code, now owned or hereafter acquired by any Credit Party, including
            rights to payment or performance under a letter of credit, whether or not such Credit
            Party, as beneficiary, has demanded or is entitled to demand payment or
            performance.

            
                                
            “Leverage Ratio” means, with respect to any Person for any twelve (12) month
            fiscal period ending on any date of determination, the ratio of (a) Funded Debt as of
            any date of determination, to (b) EBITDA for the twelve (12) months ending on that date
            of determination.

            
                                
            “LIBOR Business Day” means a Business Day on which banks in the City of London
            are generally open for interbank or foreign exchange transactions.

            A-13

            

            

            

            
                                
            “LIBOR Loan” means a Loan or any portion thereof bearing interest by reference
            to the LIBOR Rate.

            
                                
            “LIBOR Period” means, with respect to any LIBOR Loan, each period commencing
            on a LIBOR Business Day selected by Borrower pursuant to the Agreement and ending one,
            two or three months thereafter, as selected by Borrower’s irrevocable notice to
            Agent as set forth in Section 1.5(e); provided, that the foregoing
            provision relating to LIBOR Periods is subject to the following:

            	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (a)     if
                        any LIBOR Period would otherwise end on a day that is not a LIBOR Business
                        Day, such LIBOR Period shall be extended to the next succeeding LIBOR
                        Business Day unless the result of such extension would be to carry such
                        LIBOR Period into another calendar month in which event such LIBOR Period
                        shall end on the immediately preceding LIBOR Business Day;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (b)     any
                        LIBOR Period that would otherwise extend beyond the Term Loan B Maturity
                        Date shall end 2 LIBOR Business Days prior to such date;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (c)     any
                        LIBOR Period that begins on the last LIBOR Business Day of a calendar month
                        (or on a day for which there is no numerically corresponding day in the
                        calendar month at the end of such LIBOR Period) shall end on the last LIBOR
                        Business Day of a calendar month;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (d)     Borrower
                        shall select LIBOR Periods so as not to require a payment or prepayment of
                        any LIBOR Loan during a LIBOR Period for such Loan; and

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (e)     Borrower
                        shall select LIBOR Periods so that there shall be no more than 3 separate
                        LIBOR Loans in existence at any one time.

                    
	
                         

                    	
                         

                    
	
                        
                                            “
                        LIBOR Rate” means for each LIBOR Period, a rate of interest
                        determined by Agent equal to:

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (a)     the
                        greater of (i) the offered rate for deposits in United States Dollars for
                        the applicable LIBOR Period that appears on Telerate Page 3750 as of 11:00
                        a.m. (London time), on the second full LIBOR Business Day next preceding
                        the first day of such LIBOR Period (unless such date is not a Business Day,
                        in which event the next succeeding Business Day will be used) or (ii) five
                        percent (5.00%); divided by

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  (b)     a
                        number equal to 1.0 minus the aggregate (but without duplication) of
                        the rates (expressed as a decimal fraction) of reserve requirements in
                        effect on the day that is 2 LIBOR Business Days prior to the beginning of
                        such LIBOR Period (including basic, supplemental, marginal and emergency
                        reserves under any regulations of the Federal Reserve Board or other
                        Governmental Authority having jurisdiction with respect thereto, as now and
                        from time to time in effect) for Eurocurrency funding (currently referred
                        to as “Eurocurrency Liabilities” in Regulation D of the Federal
                        Reserve Board that are required to be maintained by a member bank of the
                        Federal Reserve System.

                    

            A-14

            

            

            

            	
                         

                    	
                         

                    
	
                         

                    	
                        
                                  If
                        such interest rates shall cease to be available from Telerate News Service,
                        the LIBOR Rate shall be determined from such financial reporting service or
                        other information as shall be mutually acceptable to Agent and
                        Borrower.

                    

            
                                
            “License” means any Copyright License, Patent License, Trademark License or
            other license of rights or interests now held or hereafter acquired by any Credit
            Party.

            
                                
            “Lien” means any mortgage or deed of trust, pledge, hypothecation, assignment,
            deposit arrangement, lien, charge, claim, security interest, easement or encumbrance,
            or preference, priority or other security agreement or preferential arrangement of any
            kind or nature whatsoever (including any lease or title retention agreement, any
            financing lease having substantially the same economic effect as any of the foregoing,
            and the filing of, or agreement to give, any financing statement perfecting a security
            interest under the Code or comparable law of any jurisdiction).

            
                                
            “Litigation” has the meaning ascribed to it in Section 3.13.

            
                                
            “Loan Account” has the meaning ascribed to it in Section
            1.12.

            
                                
            “Loan Documents” means the Agreement, the Notes, the Intercreditor Agreement,
            the Collateral Documents and all other agreements, instruments, documents and
            certificates identified in the Closing Checklist executed and delivered to, or in favor
            of, Agent or any Lenders and including all other pledges, powers of attorney, consents,
            assignments, contracts, notices, and all other written matter whether heretofore, now
            or hereafter executed by or on behalf of any Credit Party, or any employee of any
            Credit Party, and delivered to Agent or any Lender in connection with the Agreement or
            the transactions contemplated thereby. Any reference in the Agreement or any other Loan
            Document to a Loan Document shall include all appendices, exhibits or schedules
            thereto, and all amendments, restatements, supplements or other modifications thereto,
            and shall refer to the Agreement or such Loan Document as the same may be in effect at
            any and all times such reference becomes operative.

            
                                
            “Loans” means the Term Loan B.

            
                                
            “Margin Stock” has the meaning ascribed to it in Section
            3.10.

            
                                
            “Material Adverse Effect” means a material adverse effect on (a) the business,
            assets, operations, prospects or financial or other condition of the Credit Parties
            considered as a whole, (b) Borrower’s ability to pay any of the Loans or any of
            the other Obligations in accordance with the terms of the Agreement, (c) the Collateral
            or Agent’s Liens, on behalf of itself and Lenders, on the Collateral or the
            priority of such Liens, or (d) Agent’s or any Lender’s rights and remedies
            under the Agreement and the other Loan Documents. Without limiting the generality of
            the foregoing, any event or occurrence adverse to one or more Credit Parties which
            results or could reasonably be expected to result in costs and/or liabilities or loss
            of revenues, individually, or in the aggregate, to any Credit Party in any 30-day
            period in excess of $3,000,000 as of any date of determination shall constitute a
            Material Adverse Effect.

            
                                
            “Monroe Capital” means Monroe Capital Management Advisors LLC.

            A-15

            

            

            

            
                                
            “Monroe Capital Fee Letter” means that certain letter, dated as of August 9,
            2007, between Monroe Capital and Borrower with respect to certain Fees to be paid from
            time to time by Borrower to Monroe Capital.

            
                                
            “Montvale Lease” means the lease agreement by Butler NJ of the Montvale
            Property to Borrower and the other Credit Parties from time to time in
            effect.

            
                                
            “Montvale Property” means the Real Estate owned by Butler NJ at 110 Summit
            Avenue, Montvale, New Jersey.

            
                                
            “Montvale Property Letter of Credit” has the meaning set forth in Section
            1.4.

            
                                
            “Montvale Property Mortgage Loan” means the Indebtedness evidenced by that
            certain Promissory Note and Mortgage and Security Agreement dated September 30, 2002,
            and the related documents by and between Butler NJ and Park National Bank (as successor
            in interest to GMAC Commercial Mortgage Corp.), and any successor to Park National
            Bank.

            
                                
            “Montvale Property Mortgage” means the mortgage on the Montvale Property
            certain Promissory Note and Mortgage and Security Agreement dated September 30, 2002,
            and the related documents by and between Butler NJ and Park National Bank (as successor
            in interest to GMAC Commercial Mortgage Corp.).

            
                                
            “Mortgages” means each of the mortgages, deeds of trust, leasehold mortgages,
            leasehold deeds of trust, collateral assignments of leases or other real estate
            security documents delivered by any Credit Party to Agent on behalf of itself and
            Lenders with respect to any Real Estate, all in form and substance reasonably
            satisfactory to Agent.

            
                                
            “Multiemployer Plan” means a “multiemployer plan” as defined in
            Section 4001 (a)(3) of ERISA, and to which any Credit Party or ERISA Affiliate is
            making, is obligated to make or has made or been obligated to make, contributions on
            behalf of participants who are or were employed by any of them.

            
                                
            “Net Borrowing Availability” means, on any date of determination,
            “Borrowing Availability” as defined in the First Lien Credit Agreement, as
            in effect on the date hereof, on such date plus cash on hand of Holdings and its
            Subsidiaries on such date.

            
                                
            “Net Montvale Sale Proceeds” shall have the meaning set forth in Section
            1.3(b)(ii).

            
                                
            “Notes” means, collectively, the Term B Notes.

            
                                
            “Notice of Conversion/Continuation” has the meaning ascribed to it in
            Section 1.5(e).

            
                                
            “Obligations” means all loans, advances, debts, liabilities and obligations,
            for the performance of covenants, tasks or duties or for payment of monetary amounts
            (whether or not such performance is then required or contingent, or such amounts are
            liquidated or determinable) owing by any Credit Party to Agent or any Lender, and all
            covenants and duties regarding such

            A-16

            

            

            

            amounts, of any kind or nature,
            present or future, whether or not evidenced by any note, agreement or other instrument,
            arising under the Agreement or any of the other Loan Documents. This term includes all
            principal, interest (including all interest that accrues after the commencement of any
            case or proceeding by or against any Credit Party in bankruptcy, whether or not allowed
            in such case or proceeding), Fees, Charges, expenses, attorneys’ fees and any
            other sum chargeable to any Credit Party under the Agreement or any of the other Loan
            Documents.

            
                                
            “Patent License” means rights under any written agreement now owned or
            hereafter acquired by any Credit Party granting any right with respect to any invention
            on which a Patent is in existence.

            
                                
            “Patents” means all of the following in which any Credit Party now holds or
            hereafter acquires any interest: (a) all letters patent of the United States or any
            other country, all registrations and recordings thereof, and all applications for
            letters patent of the United States or of any other country, including registrations,
            recordings and applications in the United States Patent and Trademark Office or in any
            similar office or agency of the United States, any State or any other country, and (b)
            all reissues, continuations, continuations-in-part or extensions thereof.

            
                                
            “Patriot Act” has the meaning ascribed to it in Section
            3.27(a).

            
                                
            “PBGC” means the Pension Benefit Guaranty Corporation.

            
                                
            “Pension Plan” means a Plan described in Section 3(2) of ERISA.

            
                                
            “Permitted Covenant” means (i) any periodic reporting covenant, (ii) any
            covenant restricting payments by Holdings with respect to any securities of Holdings
            which are junior to the Permitted Preferred Stock, (iii) any covenant the default of
            which can only result in an increase in the amount of any redemption price, repayment
            amount, dividend rate or interest rate and (iv) any covenant providing board observance
            rights with respect to Holdings’ board of directors.

            
                                
            “Permitted Encumbrances” means the following encumbrances: (a) Liens for taxes
            or assessments or other governmental Charges not yet due and payable or which are being
            contested in accordance with Section 5.2(b); (b) pledges or deposits of money
            securing statutory obligations under workmen’s compensation (including deposits
            made with workers compensation insurance providers), unemployment insurance, social
            security or public liability laws or similar legislation (excluding Liens under ERISA);
            (c) pledges or deposits of money securing bids, tenders, contracts (other than
            contracts for the payment of money) or leases to which any Credit Party is a party as
            lessee made in the ordinary course of business; (d) inchoate and unperfected
            workers’, mechanics’ or similar liens arising in the ordinary course of
            business, so long as such Liens attach only to Equipment, Fixtures and/or Real Estate;
            (e) carriers’, warehousemen’s, suppliers’ or other similar possessory
            liens arising in the ordinary course of business and securing liabilities in an
            outstanding aggregate amount not in excess of $250,000 at any time, so long as such
            Liens attach only to Inventory; (f) deposits securing, or in lieu of, surety, appeal or
            customs bonds in proceedings to which any Credit Party is a party; (g) any attachment
            or judgment lien not constituting an Event of Default under Section 8.1(j); (h)
            zoning

            A-17

            

            

            

            restrictions, easements,
            licenses, or other restrictions on the use of any Real Estate or other minor
            irregularities in title (including leasehold title) thereto, so long as the same do not
            materially impair the use, value, or marketability of such Real Estate; (i) presently
            existing or hereafter created Liens in favor of Agent, on behalf of Lenders; (j) Liens
            expressly permitted under clauses (b), (c) and (d) of Section
            6.7 of the Agreement; (k) Liens described in Section 6.3(a)(vii) of the
            Agreement; and (l) Montvale Property Mortgage.

            
                                
            “Permitted Preferred Stock” means any preferred stock of Holdings (or any
            equity security of Holdings that is convertible or exchangeable into any preferred
            stock of Holdings), so long as the terms of any such preferred stock or equity security
            of Holdings (i) do not provide any collateral security, (ii) do not provide any
            guaranty or other support by any Subsidiaries of Holdings, (iii) do not contain any
            put, redemption, repayment, sinking fund or other similar provision occurring before
            the seventh anniversary of the Closing Date, (iv) do not require the cash payment of
            dividends or interest, (v) do not contain any covenants other than any Permitted
            Covenant, (vi) do not grant the holders thereof any voting rights except for (x) voting
            rights required to be granted to such holders under applicable law, (y) limited
            customary voting rights on fundamental matters such as mergers, consolidations, sales
            of substantial assets, or liquidations involving Holdings and (z) other voting rights
            to the extent not greater than or superior to those allocated to Holdings common Stock
            on a per share basis, and (vii) to the extent any such preferred stock or equity
            security does not otherwise comply with clauses (i) through (vi) hereof,
            such preferred stock or equity security is otherwise reasonably satisfactory to
            Agent.

            
                                
            “Person” means any individual, sole proprietorship, partnership, joint
            venture, trust, unincorporated organization, association, corporation, limited
            liability company, institution, public benefit corporation, other entity or government
            (whether federal, state, county, city, municipal, local, foreign, or otherwise,
            including any instrumentality, division, agency, body or department
            thereof).

            
                                
            “Plan” means, at any time, an “employee benefit plan,” as defined
            in Section 3(3) of ERISA, that any Credit Party or ERISA Affiliate maintains,
            contributes to or has an obligation to contribute to on behalf of participants who are
            or were employed by any Credit Party.

            
                                
            “Pledge Agreements” means the Borrower Pledge Agreement, the Holdings Pledge
            Agreement, the Subsidiary Pledge Agreement and any other pledge agreement entered into
            after the Closing Date by any Credit Party (as required by the Agreement or any other
            Loan Document).

            
                                
            “Proceeds” means “proceeds,” as such term is defined in the Code,
            including (a) any and all proceeds of any insurance, indemnity, warranty or guaranty
            payable to any Credit Party from time to time with respect to any of the Collateral,
            (b) any and all payments (in any form whatsoever) made or due and payable to any Credit
            Party from time to time in connection with any requisition, confiscation, condemnation,
            seizure or forfeiture of all or any part of the Collateral by any Governmental
            Authority (or any Person acting under color of governmental authority), (c) any claim
            of any Credit Party against third parties (i) for past, present or future infringement
            of any Patent or Patent License, or (ii) for past, present or future infringement or
            dilution of any Copyright, Copyright License, Trademark or Trademark License, or for
            injury to the goodwill associated with any Trademark or Trademark License, (d) any
            recoveries by any

            A-18

            

            

            

            Credit Party against third
            parties with respect to any litigation or dispute concerning any of the Collateral, (e)
            dividends, interest, distributions and Instruments with respect to Investment Property
            and pledged Stock, and (f) any and all other amounts from time to time paid or payable
            under or in connection with any of the Collateral, upon disposition or
            otherwise.

            
                                
            “Pro Forma” means the unaudited consolidated and consolidating balance sheet
            of Borrower and its Subsidiaries as of June 30, 2007 after giving pro
            forma effect to the Related Transactions.

            
                                
            “Projections” means Borrower’s forecasted consolidated and
            consolidating: (a) balance sheets; (b) profit and loss statements; (c) cash flow
            statements; and (d) capitalization statements, all prepared on a Subsidiary by
            Subsidiary or division-by-division basis, if applicable, and otherwise consistent with
            the historical Financial Statements of Borrower, together with appropriate supporting
            details and a statement of underlying assumptions.

            
                                
            “Pro Rata Share” means with respect to all matters relating to any Lender with
            respect to the Term Loan B, the percentage obtained by dividing (i) the Term Loan B
            Commitment of that Lender by (ii) the aggregate Term Loan B Commitments of all Lenders,
            as any such percentages may be adjusted by assignments permitted pursuant to Section
            9.1.

            
                                
            “Qualified Plan” means a Pension Plan that is intended to be tax-qualified
            under Section 401(a) of the IRC.

            
                                
            “Qualified Assignee” means (a) any Lender, any Affiliate of any Lender and,
            with respect to any Lender that is an investment fund that invests in commercial loans,
            any other investment fund that invests in commercial loans and that is managed or
            advised by the same investment advisor as such Lender or by an Affiliate of such
            investment advisor, and (b) any commercial bank, savings and loan association or
            savings bank or any other entity which is an “accredited investor” (as
            defined in Regulation D under the Securities Act) which extends credit or buys loans as
            one of its businesses, including insurance companies, mutual funds, lease financing
            companies and commercial finance companies.

            
                                
            “Real Estate” has the meaning ascribed to it in Section 3.6.

            
                                
            “Refinancing” means the (i) the effectiveness of the Third Amended and
            Restated Credit Agreement dated the date hereof among Borrower, certain Credit Parties
            and the First Lien Agent, (ii) repayment by Borrower of $19,500,000 of outstanding
            obligations under the First Lien Credit Agreement, and (iii) the cash collateralization
            of the Montvale Property Letter of Credit.

            
                                
            “Related Transactions” means the initial borrowing under and the Term Loan B
            on the Closing Date, the Refinancing, the payment of all fees, costs and expenses
            associated with all of the foregoing and the execution and delivery of all of the
            Related Transactions Documents.

            
                                
            “Related Transactions Documents” means the Loan Documents, and all other
            agreements or instruments executed in connection with the Related
            Transactions.

            A-19

            

            

            

            
                                
            “Release” means any release, threatened release, spill, emission, leaking,
            pumping, pouring, emitting, emptying, escape, injection, deposit, disposal, discharge,
            dispersal, dumping, leaching or migration of Hazardous Material in the indoor or
            outdoor environment, including the movement of Hazardous Material through or in the
            air, soil, surface water, ground water or property.

            
                                
            “Requisite Lenders” means Lenders having more than 66 2/3% of the aggregate
            outstanding amount of the Loans; provided, that at any time there are only two
            Lenders (treating affiliates and related funds of a Lender as a single Lender for
            purposes hereof), Requisite Lenders shall mean both such Lenders.

            
                                
            “Restated Financial Statements” has the meaning ascribed to it in
            subsection (q)of Annex E.

            
                                
            “Restricted Payment” means, with respect to any Credit Party (a) the
            declaration or payment of any dividend or the incurrence of any liability to make any
            other payment or distribution of cash or other property or assets in respect of Stock;
            (b) any payment on account of the purchase, redemption, defeasance, sinking fund or
            other retirement of such Credit Party’s Stock or any other payment or
            distribution made in respect thereof, either directly or indirectly; (c) any payment or
            prepayment of principal of, premium, if any, or interest, fees or other charges on or
            with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or
            similar payment and any claim for rescission with respect to, any Subordinated Debt;
            (d) any payment made to redeem, purchase, repurchase or retire, or to obtain the
            surrender of, any outstanding warrants, options or other rights to acquire Stock of
            such Credit Party now or hereafter outstanding; (e) any payment of a claim for the
            rescission of the purchase or sale of, or for material damages arising from the
            purchase or sale of, any shares of such Credit Party’s Stock or of a claim for
            reimbursement, indemnification or contribution arising out of or related to any such
            claim for damages or rescission; (f) any payment, loan, contribution, or other transfer
            of funds or other property to any Stockholder of such Credit Party other than payment
            of compensation in the ordinary course of business to Stockholders who are employees of
            such Credit Party; and (g) any payment of management fees (or other fees of a similar
            nature) by such Credit Party to any Stockholder of such Credit Party or its
            Affiliates.

            
                                
            “Retiree Welfare Plan” means, at any time, a Welfare Plan that provides for
            continuing coverage or benefits for any participant or any beneficiary of a participant
            after such participant’s termination of employment, other than continuation
            coverage provided pursuant to Section 4980B of the IRC and at the sole expense of the
            participant or the beneficiary of the participant.

            
                                
            “Security Agreements” means (i) the Borrower Security Agreement; (ii) the
            Subsidiary Security Agreement; and (iii) the Holdings Security Agreement.

            
                                
            “Specified Employees” means Edward M. Kopko, Thomas F. Comeau, Hugh G.
            McBreen, Frank H. Murray, Louis F. Petrossi, Wesley B. Tyler, Ronald Uyermatsu, Walter
            O. LeCroy, James Beckley, Sr., George Geogiou, Sr., Robert O’Flynn, Chris Tyrell
            and Mark Koscinski.

            A-20

            

            

            

            
                                
            “Solvent” means, with respect to any Person on a particular date, that on such
            date (a) the fair value of the property of such Person is greater than the total amount
            of liabilities, including contingent liabilities, of such Person; (b) the present fair
            salable value of the assets of such Person is not less than the amount that will be
            required to pay the probable liability of such Person on its debts as they become
            absolute and matured; (c) such Person does not intend to, and does not believe that it
            will, incur debts or liabilities beyond such Person’s ability to pay as such
            debts and liabilities mature; and (d) such Person is not engaged in a business or
            transaction, and is not about to engage in a business or transaction, for which such
            Person’s property would constitute an unreasonably small capital. The amount of
            contingent liabilities (such as litigation, guaranties and pension plan liabilities) at
            any time shall be computed as the amount that, in light of all the facts and
            circumstances existing at the time, represents the amount that can be reasonably be
            expected to become an actual or matured liability.

            
                                
            “Stock” means all shares, options, warrants, general or limited partnership
            interests, membership interests or other equivalents (regardless of how designated) of
            or in a corporation, partnership, limited liability company or equivalent entity
            whether voting or nonvoting, including common stock, preferred stock or any other
            “equity security” (as such term is defined in Rule 3al 1-1 of the General
            Rules and Regulations promulgated by the Securities and Exchange Commission under the
            Securities Exchange Act of 1934).

            
                                
            “Stockholder” means, with respect to any Person, each holder of Stock of such
            Person.

            
                                
            “Subordinated Debt” means any Indebtedness of any Credit Party subordinated to
            the Obligations in a manner and form satisfactory to Agent and Lenders in their sole
            discretion, as to right and time of payment and as to any other rights and remedies
            thereunder.

            
                                
            “Subsidiary” means, with respect to any Person, (a) any corporation of which
            an aggregate of more than 50% of the outstanding Stock having ordinary voting power to
            elect a majority of the board of directors of such corporation (irrespective of
            whether, at the time, Stock of any other class or classes of such corporation shall
            have or might have voting power by reason of the happening of any contingency) is at
            the time, directly or indirectly, owned legally or beneficially by such Person or one
            or more Subsidiaries of such Person, or with respect to which any such Person has the
            right to vote or designate the vote of 50% or more of such Stock whether by proxy,
            agreement, operation of law or otherwise, and (b) any partnership or limited liability
            company in which such Person and/or one or more Subsidiaries of such Person shall have
            an interest (whether in the form of voting or participation in profits or capital
            contribution) of more than 50% or of which any such Person is a general partner or may
            exercise the powers of a general partner. Unless the context otherwise requires, each
            reference to a Subsidiary shall be a reference to a Subsidiary of the
            Borrower.

            
                                
            “Subsidiary Guaranty” means the Subsidiaries Guaranty dated of even date
            herewith executed by all Subsidiaries of Borrower (other than Butler India) in favor of
            Agent, on behalf of itself and Lenders.

            
                                
            “Subsidiary Pledge Agreement” means the Pledge Agreement of even date herewith
            executed by the applicable Credit Parties in favor of Agent, on behalf of itself
            and

            A-21

            

            

            

            Lenders, pledging all stock of
            their Subsidiaries, if any, and all Intercompany Notes and other instruments owing to
            or held by it.

            
                                
            “Subsidiary Security Agreement” means the Subsidiaries Security Agreement of
            even date herewith entered into by and among Agent, on behalf of itself and Lenders,
            and each Credit Party that is a signatory thereto.

            
                                
            “Supporting Obligations” has the meaning ascribed thereto in the
            Code.

            
                                
            “Taxes” means taxes, levies, imposts, deductions, Charges or withholdings, and
            all liabilities with respect thereto, excluding taxes imposed on or measured by the net
            income of Agent or a Lender by the jurisdictions under the laws of which Agent and
            Lenders are organized or conduct business or any political subdivision
            thereof.

            
                                
            “Termination Date” means the date on which (a) the Loans have been
            indefeasibly repaid in full, (b) all other Obligations under the Agreement and the
            other Loan Documents have been completely discharged, and (c) Borrower shall not have
            any further right to borrow any monies under the Agreement.

            
                                
            “Term B Lenders” means those Lenders having Term Loan B Commitments

            
                                
            “Term Loan B” has the meaning assigned to it in Section 1.1.

            
                                
            “Term Loan B Commitment” means (a) as to any Lender with a Term Loan B
            Commitment, the commitment of such Lender to make its Pro Rata Share of the Term Loan B
            as set forth on Annex Jto the Agreement or in the most recent Assignment
            Agreement executed by such Lender, and (b) as to all Lenders with a Term Loan B
            Commitment, the aggregate commitment of all Lenders to make the Term Loan B, which
            aggregate commitment shall be Twenty-Three Million ($23,000,000.00) on the Closing
            Date. After advancing the Term Loan B, each reference to a Lender’s Term Loan B
            Commitment shall refer to that Lender’s Pro Rata Share of the outstanding Term
            Loan B.

            
                                
            “Term B Maturity Date” means the earliest of (a) August 29, 2012, (b) the
            “Commitment Termination Date” as defined in the First Lien Credit
            Agreement, (c) July 1, 2011 unless all outstanding shares of Holdings’ series A
            preferred stock have been redeemed prior to such date, and (d) the date of indefeasible
            prepayment in full by Borrower of the Loans.

            
                                
            “Term B Note” has the meaning assigned to it in Section
            1.1(a).

            
                                
            “Title IV Plan” means a Pension Plan (other than a Multiemployer Plan), that
            is covered by Title IV of ERISA, and that any Credit Party or ERISA Affiliate
            maintains, contributes to or has an obligation to contribute to on behalf of
            participants who are or were employed by any of them.

            
                                
            “Trademark License” means rights under any written agreement now owned or
            hereafter acquired by any Credit Party granting any right to use any
            Trademark.

            A-22

            

            

            

            
                                
            “Trademarks” means all of the following now owned or hereafter adopted or
            acquired by any Credit Party: (a) all trademarks, trade names, corporate names,
            business names, trade styles, service marks, logos, other source or business
            identifiers, prints and labels on which any of the foregoing have appeared or appear,
            designs and General Intangibles of like nature (whether registered or unregistered),
            all registrations and recordings thereof, and all applications in connection therewith,
            including registrations, recordings and applications in the United States Patent and
            Trademark Office or in any similar office or agency of the United States, any state or
            territory thereof, or any other country or any political subdivision thereof; (b) all
            reissues, extensions or renewals thereof; and (c) all goodwill associated with or
            symbolized by any of the foregoing.

            
                                
            “Unfunded Pension Liability” means, at any time, the aggregate amount, if any,
            of the sum of (a) the amount by which the present value of all accrued benefits under
            each Title IV Plan exceeds the fair market value of all assets of such Title IV Plan
            allocable to such benefits in accordance with Title IV of ERISA, all determined as of
            the most recent valuation date for each such Title IV Plan using the actuarial
            assumptions for funding purposes in effect under such Title IV Plan, and (b) for a
            period of 5 years following a transaction which might reasonably be expected to be
            covered by Section 4069 of ERISA, the liabilities (whether or not accrued) that could
            be avoided by any Credit Party or any ERISA Affiliate as a result of such
            transaction.

            
                                
            “Voluntary Permitted Payments” means the first $5,000,000 of prepayments made
            pursuant to Section 1.3(a) provided, that such prepayments are not made
            in connection with a prepayment in full of the Term Loan B.

            
                                
            “Welfare Plan” means a Plan described in Section 3(1) of ERISA.

            
                                Rules
            of construction with respect to accounting terms used in the Agreement or the other
            Loan Documents shall be as set forth in Annex G. All other undefined terms
            contained in any of the Loan Documents shall, unless the context indicates otherwise,
            have the meanings provided for by the Code as in effect in the State of New York to the
            extent the same are used or defined therein. Unless otherwise specified, references in
            the Agreement or any of the Appendices to a Section, subsection or clause refer to such
            Section, subsection or clause as contained in the Agreement. The words
            “herein,” “hereof” and “hereunder” and other words
            of similar import refer to the Agreement as a whole, including all Annexes, Exhibits
            and Schedules, as the same may from time to time be amended, restated, modified or
            supplemented, and not to any particular section, subsection or clause contained in the
            Agreement or any such Annex, Exhibit or Schedule.

            
                                Wherever
            from the context it appears appropriate, each term stated in either the singular or
            plural shall include the singular and the plural, and pronouns stated in the masculine,
            feminine or neuter gender shall include the masculine, feminine and neuter genders. The
            words “including”, “includes” and “include” shall
            be deemed to be followed by the words “without limitation”; the word
            “or” is not exclusive; references to Persons include their respective
            successors and assigns (to the extent and only to the extent permitted by the Loan
            Documents) or, in the case of governmental Persons, Persons succeeding to the relevant
            functions of such Persons; and all references to statutes and related regulations shall
            include any amendments of the same and any successor statutes and regulations. Whenever
            any provision in any Loan

            A-23

            

            

            

            Document refers to the knowledge
            (or an analogous phrase) of any Credit Party, such words are intended to signify that
            such Credit Party has actual knowledge or awareness of a particular fact or
            circumstance or that such Credit Party, if it had exercised reasonable diligence, would
            have known or been aware of such fact or circumstance.

            A-24

            

            

            

            ANNEX B

            to

            CREDIT AGREEMENT

            
            RESERVED

            B-l

            

            

            

            ANNEX C

            to

            CREDIT AGREEMENT

            
            RESERVED

            C-l

            

            

            

            ANNEX D
            (Section 2.1(a))

            to

            CREDIT AGREEMENT

            CLOSING
            CHECKLIST

            
                                In
            addition to, and not in limitation of, the conditions described in Section 2.1
            of the Agreement, pursuant to Section 2.1 (a), the following items must be
            received by Agent in form and substance satisfactory to Agent on or prior to the
            Closing Date (each capitalized term used but not otherwise defined herein shall have
            the meaning ascribed thereto in Annex A to the Agreement):

            
                      
                      A.     
            Appendices. All Appendices to the Agreement, in form and substance satisfactory to
            Agent.

            
                                B.     
            Term B Notes. Duly executed originals of the Revolving Notes, Swing Line Note and
            Term B Notes for each applicable Lender, dated the Closing Date.

            
                                C.     
            Security Agreements. Duly executed originals of the Security Agreements, dated the
            Closing Date, and all instruments, documents and agreements executed pursuant
            thereto.

            
                                D.     
            Insurance. Satisfactory evidence that the insurance policies required by Section
            5.4 are in full force and effect, together with appropriate evidence showing loss
            payable and/or additional insured clauses or endorsements, as requested by Agent, in
            favor of Agent, on behalf of Lenders.

            
                      
                      E.     
            Security Interests and Code Filings. (a) Evidence satisfactory to Agent that Agent
            (for the benefit of itself and Lenders) has a valid and perfected security interest in
            the Collateral subject to no Liens other than Liens of the First Lien Agent having the
            priority set forth in the Intercreditor Agreement, or in the case of the Montvale
            Property, the Montvale Property Mortgage, including (i) such documents duly executed by
            each Credit Party (including financing statements under the Code and other applicable
            documents under the laws of any jurisdiction with respect to the perfection of Liens)
            as Agent may request in order to perfect its security interests in the Collateral and
            (ii) copies of Code search reports listing all effective financing statements that name
            any Credit Party as debtor, together with copies of such financing statements, none of
            which shall cover the Collateral.

            
                                (b)
                 Evidence satisfactory to Agent, including copies, of all
            UCC-1 and other financing statements filed in favor of any Credit Party with respect to
            each location, if any, at which Inventory may be consigned.

            
                                F.     
            Intellectual Property Security Agreement. Duly executed originals of the
            Intellectual Property Security Agreement dated the Closing Date and signed by each
            Credit Party which owns Trademarks, Copyrights and/or Patents, as applicable, all in
            form and substance reasonably satisfactory to Agent, together with all instruments,
            documents and agreements executed pursuant thereto.

            1

            

            

            

            
                                G.
                 Mortgage and Real Property Documents. Mortgages
            covering all of the Real Estate (the “Mortgaged Properties”)
            together with: (a) title insurance policies, current as-built surveys, zoning letters
            and certificates of occupancy, in each case reasonably satisfactory in form and
            substance to agent, in its sole discretion; (b) evidence that counterparts of the
            Mortgages have been recorded in all places to the extent necessary or desirable, in the
            judgment of Agent, to create a valid and enforceable first priority lien (subject to
            Permitted Encumbrances) on each Mortgaged Property in favor of Agent for the benefit of
            itself and Lenders (or in favor of such other trustee as may be required or desired
            under local law); and (c) an opinion of counsel in each state in which any Mortgaged
            Property is located in form and substance and from counsel reasonably satisfactory to
            Agent. A subordination of the existing mortgage in favor of First Lien Agent duly
            executed and delivered by First Lien Agent.

            
                                H.
                 Letter of Direction. Duly executed originals of a
            letter of direction from Borrower addressed to Agent, on behalf of itself and Lenders,
            with respect to the disbursement on the Closing Date of the proceeds of the Term Loan
            B.

            
                                I.     
            Cash Management System; Blocked Account Agreements. Evidence satisfactory to Agent
            that, as of the Closing Date, cash management systems have been established and are
            currently being maintained.

            
                                J.     
            Charter and Good Standing. For each Credit Party, such Person’s (a)
            charter and all amendments thereto, (b) good standing certificates (including
            verification of tax status) in its state of incorporation and (c) good standing
            certificates (including verification of tax status) and certificates of qualification
            to conduct business in each jurisdiction where its ownership or lease of property or
            the conduct of its business requires such qualification, each dated a recent date prior
            to the Closing Date and certified by the applicable Secretary of State or other
            authorized Governmental Authority.

            
                                K.
                 Bylaws and Resolutions. For each Credit Party, (a)
            such Person’s bylaws, together with all amendments thereto and (b) resolutions of
            such Person’s Board of Directors and stockholders, approving and authorizing the
            execution, delivery and performance of the Loan Documents to which such Person is a
            party and the transactions to be consummated in connection therewith, each certified as
            of the Closing Date by such Person’s corporate secretary or an assistant
            secretary as being in full force and effect without any modification or
            amendment.

            
                                L.
                 Incumbency Certificates. For each Credit Party,
            signature and incumbency certificates of the officers of each such Person executing any
            of the Loan Documents, certified as of the Closing Date by such Person’s
            corporate secretary or an assistant secretary as being true, accurate, correct and
            complete.

            
                                M.
                 Opinions of Counsel. Duly executed originals of
            opinions of McBreen & Kopko, counsel for the Credit Parties, together with any
            local counsel opinions reasonably requested by Agent (including New Jersey counsel),
            each in form and substance reasonably satisfactory to Agent and its counsel, dated the
            Closing Date, and each accompanied by a letter addressed to such counsel from the
            Credit Parties, authorizing and directing such counsel to address its opinion to Agent,
            on behalf of Lenders, and to include in such opinion an express statement to the effect
            that Agent and Lenders are authorized to rely on such opinion.

            2

            

            

            

            
                                N.
                 Pledge Agreements. Duly executed originals of each
            of the Pledge Agreements accompanied by confirmation that (a) share certificates
            representing all of the outstanding Stock being pledged pursuant to such Pledge
            Agreement and stock powers for such share certificates executed in blank and (b) the
            original Intercompany Notes and other instruments evidencing Indebtedness being pledged
            pursuant to such Pledge Agreement, duly endorsed in blank, have been delivered to the
            First Lien Agent.

            
                                O.
                 Appointment of Agent for Service. An appointment
            of CT Corporation as each Credit Party’s agent for service of process.

            
                                P.
                 Fee Letter. Duly executed originals of the Monroe
            Capital Fee Letter.

            
                                Q.
                 Officer’s Certificate. Agent shall have
            received duly executed originals of a certificate of the Chief Financial Officer, the
            Vice President or the Controller of Borrower, dated the Closing Date; stating that,
            since December 31, 2006 (a) no event or condition has occurred or is existing which
            could reasonably be expected to have a Material Adverse Effect; (b) there has been no
            material adverse change in the industry in which Borrower operates; (c) no Litigation
            has been commenced which, if successful, would have a Material Adverse Effect or could
            challenge any of the transactions contemplated by the Agreement and the other Loan
            Documents; (d) there have been no Restricted Payments made by any Credit Party; and (e)
            there has been no material increase in liabilities, liquidated or contingent, and no
            material decrease in assets of Borrower or any of its Subsidiaries and (ii) certifying
            that each of the conditions set forth in Section 2.1 of he Agreement have been
            satisfied.

            
                                R.
                 Waivers. Agent, on behalf of Lenders, shall have
            received landlord waivers and consents, bailee letters and mortgagee agreements in form
            and substance satisfactory to Agent, in each case as required pursuant to Section
            5.9.

            
                                S.
                 Intercreditor Agreement. Agent and Lenders shall
            have received the Intercreditor Agreement duly executed by all parties
            thereto.

            
                                T.
                 Financials; Financial Condition. Agent shall have
            received the Financial Statements and other materials set forth in Section 3.4,
            certified by Borrower’s Chief Financial Officer, in each case in form and
            substance satisfactory to Agent, and Agent shall be satisfied, in its sole discretion,
            with all of the foregoing. Agent shall have further received a certificate of the Chief
            Executive Officer and/or the Chief Financial Officer of Borrower, based on such Pro
            Forma, to the effect that (a) Borrower will be Solvent upon the consummation of the
            transactions contemplated herein; (b) the Pro Forma fairly presents the financial
            condition of Borrower as of the date thereof after giving effect to the transactions
            contemplated by the Loan Documents; and (c) containing such other statements with
            respect to the solvency of Borrower and matters related thereto as Agent shall
            request.

            
                                U.     
            Other Documents. Such other certificates, documents and agreements respecting any
            Credit Party as Agent may, in its sole discretion, request, including, without
            limitation, such certificates, documents and agreements set forth in the closing
            checklist delivered to Borrower to the extent not otherwise set forth above.

            3

            

            

            

            ANNEX E
            (Section 4.1(a))

            to

            CREDIT AGREEMENT

            FINANCIAL
            STATEMENTS AND PROJECTIONS -- REPORTING

            
                                Borrower
            shall deliver or cause to be delivered to Agent or to Agent and Lenders, as indicated,
            the following:

            
                                (a)          
            Monthly Financials. To Agent and Lenders, within 30 days after the end of each
            Fiscal Month, financial information regarding Borrower and its Subsidiaries, and upon
            request of Agent, certified by the Chief Financial Officer of Borrower, consisting of
            consolidated and consolidating (i) unaudited balance sheets as of the close of such
            Fiscal Month and the related statements of income and cash flows for that portion of
            the Fiscal Year ending as of the close of such Fiscal Month; (ii) unaudited statements
            of income and cash flows for such Fiscal Month, setting forth in comparative form the
            figures for the corresponding period in the prior year and the figures contained in the
            Projections for such Fiscal Year, all prepared in accordance with GAAP (subject to
            normal year-end adjustments); and (iii) a summary of the outstanding balance of all
            Intercompany Notes as of the last day of that Fiscal Month. Such financial information
            shall be accompanied by the certification of the Chief Financial Officer of Borrower
            that (i) such financial information presents fairly in accordance with GAAP (subject to
            normal year-end adjustments) the financial position and results of operations of
            Borrower and its Subsidiaries, on a consolidated and consolidating basis, in each case
            as at the end of such Fiscal Month and for that portion of the Fiscal Year then ended
            and (ii) any other information presented is true, correct and complete in all material
            respects and that there was no Default or Event of Default in existence as of such time
            or, if a Default or Event of Default shall have occurred and be continuing, describing
            the nature thereof and all efforts undertaken to cure such Default or Event of
            Default.

            
                                (b)          
            Quarterly Financials. To Agent and Lenders, within 45 days after the end of each
            Fiscal Quarter, consolidated and consolidating financial information regarding Borrower
            and its Subsidiaries, certified by the Chief Financial Officer of Borrower, including
            (i) unaudited balance sheets as of the close of such Fiscal Quarter and the related
            statements of income and cash flow for that portion of the Fiscal Year ending as of the
            close of such Fiscal Quarter and (ii) unaudited statements of income and cash flows for
            such Fiscal Quarter, in each case setting forth in comparative form the figures for the
            corresponding period in the prior year and the figures contained in the Projections for
            such Fiscal Year, all prepared in accordance with GAAP (subject to normal year-end
            adjustments). Such financial information shall be accompanied by (A) a statement in
            reasonable detail (each, a “Compliance Certificate”) showing the
            calculations used in determining compliance with each of the Financial Covenants that
            is tested on a quarterly basis and (B) the certification of the Chief Financial Officer
            of Borrower that (i) such financial information presents fairly in accordance with GAAP
            (subject to normal year-end adjustments) the financial position, results of operations
            and statements of cash flows of Borrower and its Subsidiaries, on both a consolidated
            and consolidating basis, as at the end of such Fiscal Quarter and for that portion of
            the Fiscal Year then ended, (ii) any other information presented is true, correct and
            complete in all material respects and that there was no Default or Event of Default in
            existence as of such time or, if a Default or Event of Default has occurred and is
            continuing,

            A-l

            

            

            

            describing the nature thereof
            and all efforts undertaken to cure such Default or Event of Default. In addition,
            Borrower shall deliver to Agent and Lenders, within 45 days after the end of each
            Fiscal Quarter, a management discussion and analysis that includes a comparison to
            budget for that Fiscal Quarter and a comparison of performance for that Fiscal Quarter
            to the corresponding period in the prior year.

            
                                (c)          
            Operating Plan. To Agent and Lenders, as soon as available, but not later than 30
            days after the end of each Fiscal Year, an annual operating plan for Borrower, approved
            by the Board of Directors of Borrower, for the following Fiscal Year, which (i)
            includes a statement of all of the material assumptions on which such plan is based,
            (ii) includes monthly balance sheets and a monthly budget for the following year and
            (iii) integrates sales, gross profits, operating expenses, operating profit, cash flow
            projections and Borrowing Availability (as defined in the First Lien Credit Agreement)
            projections, all prepared on the same basis and in similar detail as that on which
            operating results are reported (and in the case of cash flow projections, representing
            management’s good faith estimates of future financial performance based on
            historical performance), and including plans for personnel, Capital Expenditures and
            facilities.

            
                                (d)     
            Annual Audited Financials. To Agent and Lenders, within 90 days after the end of
            each Fiscal Year, audited Financial Statements for Borrower and its Subsidiaries on a
            consolidated and (unaudited) consolidating basis, consisting of balance sheets and
            statements of income and retained earnings and cash flows, setting forth in comparative
            form in each case the figures for the previous Fiscal Year, which Financial Statements
            shall be prepared in accordance with GAAP and certified without qualification, by an
            independent certified public accounting firm of national standing or otherwise
            acceptable to Agent. Such Financial Statements shall be accompanied by (i) a statement
            prepared in reasonable detail showing the calculations used in determining compliance
            with each of the Financial Covenants, (ii) a report from such accounting firm to the
            effect that, in connection with their audit examination, nothing has come to their
            attention to cause them to believe that a Default or Event of Default has occurred with
            respect to the Financial Covenants (or specifying those Defaults and Events of Default
            that they became aware of), it being understood that such audit examination extended
            only to accounting matters and that no special investigation was made with respect to
            the existence of Defaults or Events of Default, (iii) a letter addressed to Agent, on
            behalf of itself and Lenders, in form and substance reasonably satisfactory to Agent
            and subject to standard qualifications required by nationally recognized accounting
            firms, signed by such accounting firm acknowledging that Agent and Lenders are entitled
            to rely upon such accounting firm’s certification of such audited Financial
            Statements, (iv) the annual letters to such accountants in connection with their audit
            examination detailing contingent liabilities and material litigation matters, and (v)
            the certification of the Chief Executive Officer or Chief Financial Officer of Borrower
            that all such Financial Statements present fairly in accordance with GAAP the financial
            position, results of operations and statements of cash flows of Borrower and its
            Subsidiaries on a consolidated and consolidating basis, as at the end of such Fiscal
            Year and for the period then ended, and that there was no Default or Event of Default
            in existence as of such time or, if a Default or Event of Default has occurred and is
            continuing, describing the nature thereof and all efforts undertaken to cure such
            Default or Event of Default.

            A-2

            

            

            

            
                                (e)     
            Management Letters. To Agent and Lenders, within 5 Business Days after receipt
            thereof by any Credit Party, copies of all management letters, exception reports or
            similar letters or reports received by such Credit Party from its independent certified
            public accountants.

            
                                (f)     
            Default Notices. To Agent and Lenders, as soon as practicable, and in any event
            within 5 Business Days after an executive officer of Borrower has actual knowledge of
            the existence of any Default, Event of Default or other event that has had a Material
            Adverse Effect, telephonic or telecopied notice specifying the nature of such Default
            or Event of Default or other event, including the anticipated effect thereof, which
            notice, if given telephonically, shall be promptly confirmed in writing on the next
            Business Day.

            
                                (g)     
            SEC Filings and Press Releases. To Agent and Lenders, promptly upon their becoming
            available, copies of: (i) all Financial Statements, reports, notices and proxy
            statements made publicly available by any Credit Party to its security holders; (ii)
            all regular and periodic reports and all registration statements and prospectuses, if
            any, filed by any Credit Party with any securities exchange or with the Securities and
            Exchange Commission or any governmental or private regulatory authority; and (iii) all
            press releases and other statements made available by any Credit Party to the public
            concerning material changes or developments in the business of any such
            Person.

            
                                (h)     
            First Lien Credit Agreement, Subordinated Debt and Equity Notices. To Agent, as
            soon as practicable, copies of all material written notices given or received by any
            Credit Party with respect to the First Lien Credit Agreement, any Subordinated Debt or
            Stock of such Person, and, within 2 Business Days after any Credit Party obtains
            knowledge of any matured or unmatured event of default with respect to any Subordinated
            Debt, notice of such event of default.

            
                                (i)     
            Supplemental Schedules. To Agent, supplemental disclosures, if any, required by
            Section 5.6.

            
                                (j)     
            Litigation. To Agent in writing, promptly upon learning thereof, notice of any
            Litigation commenced or threatened against any Credit Party that (i) seeks damages in
            excess of $750,000, (ii) seeks injunctive relief, (iii) is asserted or instituted
            against any Plan, its fiduciaries or its assets or against any Credit Party or ERISA
            Affiliate in connection with any Plan, (iv) alleges criminal misconduct by any Credit
            Party, (v) alleges the violation of any law regarding, or seeks remedies in connection
            with, any Environmental Liabilities; or (vi) involves any product recall.

            
                                (k)     
            Insurance Notices. To Agent, disclosure of losses or casualties required by Section
            5.4.

            
                                (1)     
            Lease Default Notices. To Agent, within 2 Business Days after receipt thereof,
            copies of (i) any and all default notices received under or with respect to any leased
            location or public warehouse where Collateral is located, and (ii) such other notices
            or documents as Agent may reasonably request.

            A-3

            

            

            

            
                                (m)     
            Lease Agreement. To Agent, as soon as practicable, and in any event within fifteen
            (15) days after any amendment, restatement or replacement of the Montvale Lease has
            been executed, copies of such amendment, restatement or replacement and such other
            notices or documents related thereto as Agent may reasonably request.

            
                                (n)     
            Other Documents. To Agent and Lenders, such other financial and other information
            respecting any Credit Party’s business or financial condition as Agent or any
            Lender shall, from time to time, reasonably request.

            
                                (o)     
            Four Week Net Cash Flow Forecast. To Agent, on or prior to 1:00 p.m. (New York
            time) on each Monday beginning with the first Monday after the Closing Date, an updated
            four (4) week net cash flow forecast showing Borrower’s cumulative actual and
            forecasted cash receipts and cash disbursements from the first Monday after the Closing
            Date, together with the actual variance for such period and such other information as
            may be reasonably requested by Agent, in form and substance reasonably satisfactory to
            Agent.

            
                                (p)     
            Weekly Status Reports. To Agent, on or prior to 9:00 a.m. (New York time) on each
            Monday, a detailed status report setting forth the Borrower’s efforts to
            refinance in full in cash the First Lien Indebtedness and sell the Montvale Property,
            and such other information as may be reasonably requested by Agent, in each case in
            form and substance reasonably satisfactory to Agent.

            
                                (q)     
            Restated 2004 Audited Financial Statements: 2005 Audited Financial Statements: 2006
            Audited Financial Statements. To Agent, on or prior to November 1, 2007, (i)
            restated audited Financial Statements for Borrower and its Subsidiaries for Fiscal Year
            ended December 31, 2004 (the “Restated Financial Statements”), which
            Restated Financial Statements shall be prepared in accordance with GAAP and certified
            without qualification by an independent certified public accounting firm of national
            standing or otherwise acceptable to Agent, (ii) the annual Financial Statements,
            certifications, statements, reports, letters and all other documentation required to be
            delivered pursuant to Section 4.1 (a) and clause (d) of Annex E of
            the Credit Agreement in respect of the Fiscal Year ended December 31, 2005 (the
            “2005 Year End Financial Information”) for Borrower and its
            Subsidiaries on a consolidated basis, which 2005 Year End Financial Information shall
            be prepared in accordance in all respects with subsection (d) hereof, and (iii) the
            annual Financial Statements, certifications, statements, reports, letters and all other
            documentation required to be delivered pursuant to Section 4.1 (a) and clause
            (d) of Annex E of the Credit Agreement in respect of the Fiscal Year ended
            December 31, 2006 (the “2006 Year End Financial Information”) for
            Borrower and its Subsidiaries on a consolidated basis, which 2006 Year End Financial
            Information shall be prepared in accordance in all respects with subsection (d)
            hereof.

            A-4

            

            

            

            ANNEX F
            (Section 4.1(b))

            to

            CREDIT AGREEMENT

            COLLATERAL
            REPORTS

            
                                Borrower
            shall deliver or cause to be delivered the following:

            
                                (a)     To
            Agent, no less frequently than the tenth (10)th day after the end of each

            Fiscal Month, a Borrowing Base Certificate (as defined in the First Lien Credit
            Agreement) with

            respect to Borrower, accompanied by such supporting detail and documentation as shall
            be

            requested by Agent in its reasonable discretion prepared by the Borrower as of the last
            day of the

            immediately preceding Fiscal Month; and

            
                                (b)     To
            Agent, upon its request:

            	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (i)     with
                        respect to Borrower, a trial balance showing Accounts outstanding aged from
                        invoice date as follows: 1 to 30 days, 31 to 60 days, 61 to 90 days and 91
                        days or more, accompanied by such supporting detail and documentation as
                        shall be requested by Agent in its reasonable discretion.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (ii)     with
                        respect to Borrower, a summary of Inventory by location and type with a
                        supporting perpetual Inventory report, in each case accompanied by such
                        supporting detail and documentation as shall be requested by Agent in its
                        reasonable discretion;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (iii)      
                        collateral reports with respect to Borrower, including all additions and
                        reductions (cash and non-cash) with respect to Accounts of Borrower, in
                        each case accompanied by such supporting detail and documentation as shall
                        be requested by Agent in its reasonable discretion each of which shall be
                        prepared by the applicable Borrower as of the last day of the immediately
                        preceding week or the date 2 days prior to the date of any
                        request;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (iv)     a
                        reconciliation of the most recent Borrowing Base (as defined in the First
                        Lien Credit Agreement), general ledger and month-end Inventory reports of
                        Borrower to Borrower’s general ledger and monthly Financial
                        Statements delivered pursuant to such Annex E, in each case
                        accompanied by such supporting detail and documentation as shall be
                        requested by Agent in its reasonable discretion;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (v)     a
                        reconciliation of the perpetual inventory by location to Borrower’s
                        most recent Borrowing Base Certificate (as defined in the First Lien Credit
                        Agreement), general ledger and monthly Financial Statements delivered
                        pursuant to Annex E, in each case accompanied by such supporting
                        detail and documentation as shall be requested by Agent in its reasonable
                        discretion;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            
                        (vi)     an aging of accounts payable and a
                        reconciliation of that accounts payable aging to Borrower’s general
                        ledger and monthly Financial

                    

            F-l

            

            

            

            	
                         

                    	
                         

                    
	
                         

                    	
                        Statements delivered
                        pursuant to Annex E, in each case accompanied by such supporting
                        detail and documentation as shall be requested by Agent in its reasonable
                        discretion;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                                            (vii)     a
                        reconciliation of the outstanding Loans as set forth in the monthly Loan
                        Account statement provided by Agent to Borrower’s general ledger and
                        monthly Financial Statements delivered pursuant to Annex E, in each
                        case accompanied by such supporting detail and documentation as shall be
                        requested by Agent in its reasonable discretion;

                    

            
                                (c)     
            To Agent, at the time of delivery of each of the quarterly Financial Statements
            delivered pursuant to Annex E, (i) a listing of government contracts of Borrower
            subject to the Federal Assignment of Claims Act of 1940; and (ii) a list of any
            applications for the registration of any Patent, Trademark or Copyright filed by any
            Credit Party with the United States Patent and Trademark Office, the United States
            Copyright Office or any similar office or agency in the prior Fiscal
            Quarter;

            
                                (d)     
            Borrower, at its own expense, shall deliver to Agent the results of each physical
            verification, if any, that Borrower or any of its Subsidiaries may in their discretion
            have made, or caused any other Person to have made on their behalf, of all or any
            portion of their Inventory (and, if a Default or an Event of Default has occurred and
            be continuing, Borrower shall, upon the request of Agent, conduct, and deliver the
            results of, such physical verifications as Agent may require);

            
                                (e)     Borrower,
            at its own expense, shall deliver to Agent such appraisals of its assets as Agent may
            request at any time after the occurrence and during the continuance of a Default or an
            Event of Default, such appraisals to be conducted by an appraiser, and in form and
            substance reasonably satisfactory to Agent; and

            
                                (f)     Such
            other reports, statements and reconciliations with respect to the Borrowing Base or
            Collateral or Obligations of any or all Credit Parties as Agent shall from time to time
            request in its reasonable discretion.

            F-2

            

            

            

            ANNEX G
            (Section 6.10)

            to

            CREDIT AGREEMENT

            FINANCIAL
            COVENANTS

            
                                Borrower
            shall not breach or fail to comply with any of the following financial covenants, each
            of which shall be calculated in accordance with GAAP consistently applied:

            
                                          (a)     
            Maximum Capital Expenditures. Holdings and its Subsidiaries on a consolidated basis
            shall not make Capital Expenditures that exceed $3,000,000 in the aggregate in any
            Fiscal Year.

            
                                          (b)     
            Minimum Fixed Charge Coverage Ratio. Holdings and its Subsidiaries shall have on a
            consolidated basis at the end of each period set forth below, a Fixed Charge Coverage
            Ratio of not less than the following:

            	
                         

                    	
                         

                    
	
                         

                    	
                        l.lx for the Fiscal
                        Quarter ending December 31, 2007;

                    
	
                         

                    	
                        l.lx for the period
                        of two (2) consecutive Fiscal Quarters ending March 31, 2008

                    
	
                         

                    	
                        l.lx for the period
                        of three (3) consecutive Fiscal Quarters ending June 30, 2008

                    
	
                         

                    	
                        l.lx for each period
                        of four (4) consecutive Fiscal Quarters ending thereafter.

                    

            
                                          (c)     
            Maximum Leverage Ratio. Holdings and its Subsidiaries on a consolidated basis shall
            have at the end of each period set forth below, a Leverage Ratio of not more than the
            following:

            	
                         

                    	
                         

                    
	
                         

                    	
                        
                        4.75x for the Fiscal
                        Quarter ending September 30, 2007, December 31, 2007 and March 31,
                        2008;

                    
	
                         

                    	
                        
                        3.75x for the Fiscal
                        Quarter ending June 30, 2008 and September 30, 2008;

                    
	
                         

                    	
                        
                        3.50x for the Fiscal
                        Quarter ending December 31, 2008, March 31, 2009 and June 30, 2009 and
                        September 30, 2009;

                    
	
                         

                    	
                        
                        3.25x for the Fiscal
                        Quarter ending December 31, 2009;

                    
	
                         

                    	
                        
                        3.40x for the Fiscal
                        Quarter ending March 31, 2010; and

                    
	
                         

                    	
                        
                        3.25x for the Fiscal
                        Quarter ending June 30, 2010 and each Fiscal Quarter ending
                        thereafter.

                    

            
                                          (d)     
            Maximum Funded Debt. Holdings and its Subsidiaries on a consolidated basis shall
            have Funded Debt on April 29, 2008 in an amount that is not more than $9,000,000 less
            than the amount of Funded Debt set forth on the Pro Forma.

            Unless otherwise specifically
            provided herein, any accounting term used in the Agreement shall have the meaning
            customarily given such term in accordance with GAAP, and all financial computations
            hereunder shall be computed in accordance with GAAP consistently applied. That certain
            items or computations are explicitly modified by the phrase “in accordance with
            GAAP” shall in no way be construed to limit the foregoing. If any
            “Accounting Changes” (as defined below) occur and such changes result in a
            change in the calculation of the financial covenants, standards or terms used in the
            Agreement or any other Loan Document, then Borrower, Agent

            G-l

            

            

            

            and Lenders agree to enter into
            negotiations in order to amend such provisions of the Agreement so as to equitably
            reflect such Accounting Changes with the desired result that the criteria for
            evaluating Borrower’s and its Subsidiaries’ financial condition shall be
            the same after such Accounting Changes as if such Accounting Changes had not been made;
            provided, however, that the agreement of Requisite Lenders to any required
            amendments of such provisions shall be sufficient to bind all Lenders.
            “Accounting Changes” means (i) changes in accounting principles
            required by the promulgation of any rule, regulation, pronouncement or opinion by the
            Financial Accounting Standards Board of the American Institute of Certified Public
            Accountants (or successor thereto or any agency with similar functions), (ii) changes
            in accounting principles concurred in by Borrower’s certified public accountants;
            (iii) purchase accounting adjustments under A.P.B. 16 or 17 and EITF 88-16, and the
            application of the accounting principles set forth in FASB 109, including the
            establishment of reserves pursuant thereto and any subsequent reversal (in whole or in
            part) of such reserves; and (iv) the reversal of any reserves established as a result
            of purchase accounting adjustments. All such adjustments resulting from expenditures
            made subsequent to the Closing Date (including capitalization of costs and expenses or
            payment of pre-Closing Date liabilities) shall be treated as expenses in the period the
            expenditures are made and deducted as part of the calculation of EBITDA in such period.
            If Agent, Borrower and Requisite Lenders agree upon the required amendments, then after
            appropriate amendments have been executed and the underlying Accounting Change with
            respect thereto has been implemented, any reference to GAAP contained in the Agreement
            or in any other Loan Document shall, only to the extent of such Accounting Change,
            refer to GAAP, consistently applied after giving effect to the implementation of such
            Accounting Change. If Agent, Borrower and Requisite Lenders cannot agree upon the
            required amendments within 30 days following the date of implementation of any
            Accounting Change, then all Financial Statements delivered and all calculations of
            financial covenants and other standards and terms in accordance with the Agreement and
            the other Loan Documents shall be prepared, delivered and made without regard to the
            underlying Accounting Change. For purposes of Section 8.1, a breach of a
            Financial Covenant contained in this Annex G shall be deemed to have occurred as
            of any date of determination by Agent or as of the last day of any specified
            measurement period, regardless of when the Financial Statements reflecting such breach
            are delivered to Agent.

            G-2

            

            

            

            ANNEX H
            (Section 9.9(a))

            to

            CREDIT AGREEMENT

            LENDERS’
            WIRE TRANSFER INFORMATION

            As disclosed by
            each Lender to Administrative Agent

            H-l

            

            

            

            ANNEX I
            (Section 11.10)

            to

            CREDIT AGREEMENT

            NOTICE
            ADDRESSES

            	
                         

                    	
                         

                    
	
                        (A)

                    	
                        If to Agent or
                        Monroe Capital, at

                        Monroe Capital Management Advisors LLC

                        311 S. Wacker Drive

                        Suite 6400

                        Chicago, IL 60606

                        Attention: Account Manager

                        Telecopier No.: (312) 258-8350

                        Telephone No.: (312) 523-2377

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        with a copy
                        to:

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        Winston & Strawn
                        LLP

                        35 West Wacker Drive

                        Chicago, IL 60601

                        Attention: Damon DiCastri

                        Telecopier No.: (312) 558-5700

                        Telephone No.: (312) 558-5600

                    
	
                         

                    	
                         

                    
	
                        (B)

                    	
                        If to Borrower,
                        at

                        Butler Service Group, Inc.

                        110 Summit Avenue

                        Montvale, NJ 07645

                        Attention: Mark Koscinski

                        Telecopier No.: (201) 573- 9723

                        Telephone No.: (201) 476-5441

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        With copies
                        to:

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        McBreen &
                        Kopko

                        20 North Wacker Drive, Suite 2520

                        Chicago, IL 60606

                        Attention: James Stern

                        Telecopier No.: (312) 332-2657

                        Telephone No.: (312) 332-6405

                    

            I-1

            

            

            

            	
                         

                    	
                         

                    
	
                         

                    	
                        Butler
                        International, Inc.

                        The New River Center, Suite 1730

                        200 E. Las Olas Boulevard

                        Fort Lauderdale, FL 33301

                        Attn: Edward M. Kopko, CEO

                        Phone: 954-761-2201

                        Fax: 954-761-9675

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        Butler Services,
                        Inc.

                        110 Summit Avenue

                        Montvale, NJ 07645

                        Attn: Richard S. Paras, VP Legal

                        Phone: 201-476-5407

                        Fax: 201-573-0049

                    

            I-2

            

            

            

            ANNEX J (from
            Annex A - Commitments definition)

            to

            CREDIT AGREEMENT

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        
                        Lender(s):

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        Monroe Capital
                        Management Advisors LLC

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        Term Loan B
                        Commitment:

                    	
                         

                    	
                        $

                    	
                        
                        23,000,000.00

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                        

                    	
                         

                    
	
                         

                    
	
                        Total
                        Commitments:

                    	
                         

                    	
                        $

                    	
                        
                        23,000,000.00

                    	
                         

                    

            

            

            

            

            EXHIBIT 1.1
            (a)

            FORM OF TERM B
            NOTE

            New York, New
            York

            ________,
            ___

            
            $____________________

            
                      FOR
            VALUE RECEIVED, the undersigned, BUTLER SERVICE GROUP, INC., a New Jersey corporation
            (“Borrower”), HEREBY PROMISES TO PAY to the order
            of____________________ (“Lender”) at the offices of MONROE CAPITAL
            MANAGEMENT ADVISORS LLC, a Delaware limited liability company, as Agent for Lenders
            (“Agent”), at its address at _________________, ____________,
            ____________ __________, or at such other place as Agent may designate from time to
            time in writing, in lawful money of the United States of America and in immediately
            available funds, the amount of_______________ MILLION DOLLARS AND ________________
            CENTS ($_,000,000). All capitalized terms used but not otherwise defined herein have
            the meanings given to them in the “Credit Agreement” (as hereinafter
            defined) or in Annex A thereto.

            
                      This
            Term B Note is one of the Term B Notes issued pursuant to that certain Second Lien
            Credit Agreement dated as of August 29, 2007 by and among Borrower, the other Persons
            named therein as Credit Parties, Agent, Lender and the other Persons signatory thereto
            from time to time as Lenders (including all annexes, exhibits and schedules thereto and
            as from time to time amended, restated, supplemented or otherwise modified, the
            “Credit Agreement”), and is entitled to the benefit and security of
            the Credit Agreement, the Security Agreements and all of the other Loan Documents
            referred to therein. Reference is hereby made to the Credit Agreement for a statement
            of all of the terms and conditions under which the Loans evidenced hereby are made and
            are to be repaid. The principal balance of the Term Loan B, the rates of interest
            applicable thereto and the date and amount of each payment made on account of the
            principal thereof, shall be recorded by Agent on its books; provided that the failure
            of Agent to make any such recordation shall not affect the obligations of Borrower to
            make a payment when due of any amount owing under the Credit Agreement or this Term B
            Note.

            
                      The
            principal amount of the indebtedness evidenced hereby shall be payable in the amounts
            and on the dates specified in the Credit Agreement. Interest thereon shall be paid
            until such principal amount is paid in full at such interest rates and at such times,
            and pursuant to such calculations, as are specified in the Credit Agreement. The terms
            of the Credit Agreement are hereby incorporated herein by reference.

            
                      If
            any payment on this Term B Note becomes due and payable on a day other than a Business
            Day, the payment thereof shall be extended to the next succeeding Business Day and,
            with respect to payments of principal, interest thereon shall be payable at the then
            applicable rate during such extension.

            
                      Upon
            and after the occurrence of any Event of Default, this Term B Note may, as provided in
            the Credit Agreement, and without presentment, demand, protest, notice of intent
            to

            

            

            

            accelerate,
            notice of acceleration or other legal requirement of any kind (all of which are hereby
            expressly waived by Borrower), be declared, and immediately shall become, due and
            payable.

            
                      Time
            is of the essence of this Term B Note.

            
                      Except
            as provided in the Credit Agreement, this Term B Note may not be assigned by Lender to
            any Person.

            
                      
            THIS TERM B NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
            INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW
            PRINCIPLES.

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                        BUTLER SERVICE GROUP,
                        INC.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                        By:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        
                        Name:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        
                        Title:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    

            2

            

            

            

            EXHIBIT
            1.5(e)

            to

            CREDIT AGREEMENT

            FORM OF
            NOTICE OF CONVERSION/CONTINUATION

            
                                Reference
            is made to that certain Second Lien Credit Agreement dated as of August 29, 2007 by and
            among the undersigned (“Borrower”), the other Persons named therein
            as Credit Parties, Monroe Capital Management Advisors LLC, a Delaware limited liability
            company (“Agent”) and the Lenders from time to time signatory
            thereto (including all annexes, exhibits or schedules thereto, and as from time to time
            amended, restated, supplemented or otherwise modified, the “Credit
            Agreement”). Capitalized terms used herein without definition are so used as
            defined in the Credit Agreement or in Annex A thereto.

            
                                Borrower
            hereby gives irrevocable notice, pursuant to Section 1.5(e) of the Credit
            Agreement, of its request to:

            
                                (a)
            on [ date ] convert $[_________] of the aggregate outstanding principal amount
            of the [_________] Loan, bearing interest at the [_________] Rate, into a(n)
            [_________] Loan [and, in the case of a LIBOR Loan, having a LIBOR Period of [______]
            month(s)];

            
                                [(b)
            on [ date ] continue $ [_________] of the aggregate outstanding principal amount
            of the [_________] Loan, bearing interest at the LIBOR Rate, as a LIBOR Loan having a
            LIBOR Period of [______] month(s)].

            
                                Borrower
            hereby (i) represents and warrants that no Default or Event of Default exists on the
            date hereof or will exist as of the date hereof, and will continue to be satisfied on
            and as of the date of the conversion/continuation requested hereby, before and after
            giving effect thereto; and (ii) reaffirms the continuance of Agent’s Liens, on
            behalf of itself and Lenders, pursuant to the Collateral Documents.

            
                                IN
            WITNESS WHEREOF, the Borrower has caused this Notice of Conversion/Continuation to be
            executed and delivered by its duly authorized officer as of the date first set forth
            above.

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                        BUTLER SERVICE
                        GROUP,

                        INC.

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        
                        By:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                        
                        Title

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    

            

            

            

            

            EXHIBIT 9.1
            (a)

            ASSIGNMENT
            AGREEMENT

            
                                This
            Assignment Agreement (this “Agreement”) is made as of __________ ___, _____
            by and between _______________________________ (“Assignor Lender”) and
            ______________________ (“Assignee Lender”) and acknowledged and consented
            to by MONROE CAPITAL MANAGEMENT ADVISORS LLC, as agent (“Agent”). All
            capitalized terms used in this Agreement and not otherwise defined herein will have the
            respective meanings set forth in the Credit Agreement as hereinafter
            defined.

            
            RECITALS:

            
                                WHEREAS,
            Butler Service Group, Inc., a New Jersey corporation, (“Borrower”), the
            other Credit Parties, Agent, Assignor Lender and other Persons signatory thereto as
            Lenders have entered into that certain Second Lien Credit Agreement dated as of August
            29, 2007 (as amended, restated, supplemented or otherwise modified from time to time,
            the “Credit Agreement”) pursuant to which Assignor Lender has agreed
            to make certain Loans to Borrower;

            
                                WHEREAS,
            Assignor Lender desires to assign to Assignee Lender [all/a portion] of its interest in
            the Loans (as described below) and the Collateral and to delegate to Assignee Lender
            [all/a portion] of its Commitments and other duties with respect to such Loans and
            Collateral;

            
                                WHEREAS,
            Assignee Lender desires to become a Lender under the Credit Agreement and to accept
            such assignment and delegation from Assignor Lender; and

            
                                WHEREAS,
            Assignee Lender desires to appoint Agent to serve as agent for Assignee Lender under
            the Credit Agreement.

            
                                NOW,
            THEREFORE, in consideration of the premises and the agreements, provisions, and
            covenants herein contained, Assignor Lender and Assignee Lender agree as
            follows:

            
            1.          ASSIGNMENT,
            DELEGATION, AND ACCEPTANCE

            
                                1.1          
            Assignment. Assignor Lender hereby transfers and assigns to Assignee Lender,
            without recourse and without representations or warranties of any kind (except as set
            forth in Section 3.2), [all/such percentage] of Assignor Lender’s right,
            title, and interest in the Term Loan B, Loan Documents and Collateral as will result in
            Assignee Lender having as of the Effective Date (as hereinafter defined) a Pro Rata
            Share thereof, as follows:

            

            

            

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                        Assignee
                        Lender’s Loans

                    	
                         

                    	
                        
                        Principal
                        Amount

                    	
                         

                    	
                        
                        Pro Rata
                        Share

                    	
                         

                    
	 
                    	 
                    	 
                    	 
                    	 
                    	 
                    
	
                        Term
                        Loan B

                    	
                         

                    	
                        
                        $____________

                    	
                         

                    	
                        
                        ______%

                    	
                         

                    

            
                                1.2          
            Delegation. Assignor Lender hereby irrevocably assigns and delegates to Assignee
            Lender [all/a portion] of its Commitments and its other duties and obligations as a
            Lender under the Loan Documents equivalent to [100%/_____%] of Assignor
            Lender’s Term Loan B Commitment (such percentage representing a commitment of
            $____________).

            
                                1.3          
            Acceptance by Assignee Lender. By its execution of this Agreement, Assignee Lender
            irrevocably purchases, assumes and accepts such assignment and delegation and agrees to
            be a Lender with respect to the delegated interest under the Loan Documents and to be
            bound by the terms and conditions thereof. By its execution of this Agreement, Assignor
            Lender agrees, to the extent provided herein, to relinquish its rights and be released
            from its obligations and duties under the Credit Agreement.

            
                                1.4          
            Effective Date. Such assignment and delegation by Assignor Lender and acceptance by
            Assignee Lender will be effective and Assignee Lender will become a Lender under the
            Loan Documents as of [the date of this Agreement] (“Effective Date”) and
            upon payment of the Assigned Amount and the Assignment Fee (as each term is defined
            below). [Interest and Fees accrued prior to the Effective Date are for the account of
            Assignor Lender, and Interest and Fees accrued from and after the Effective Date are
            for the account of Assignee Lender.]

            
                      2.     INITIAL
            PAYMENT AND DELIVERY OF NOTES

            
                                2.1
            Payment of the Assigned Amount. Assignee Lender will pay to Assignor Lender, in
            immediately available funds, not later than 12:00 noon (New York time) on the Effective
            Date, an amount equal to its Pro Rata Share of the then outstanding principal amount of
            the Loans as set forth above in Section 1.1 [together with accrued interest,
            fees and other amounts as set forth on Schedule 2.1] (the “Assigned
            Amount”).

            
                                2.2          
            Payment of Assignment Fee. [Assignor Lender and/or Assignee Lender] will pay to
            Agent, for its own account in immediately available funds, not later than 12:00 noon
            (New York time) on the Effective Date, the assignment fee in the amount of $3,500 (the
            “Assignment Fee”) as required pursuant to Section 9.1 (a) of the Credit
            Agreement.

            
                                2.3          
            Execution and Delivery of Notes. Following payment of the Assigned Amount and the
            Assignment Fee, Assignor Lender will deliver to Agent the Notes previously delivered to
            Assignor Lender for redelivery to Borrower and Agent will obtain from Borrower for
            delivery to [Assignor Lender and] Assignee Lender, new executed Notes evidencing
            Assignee Lender’s [and Assignor Lender’s respective] Pro Rata Share[s] in
            the Loans after giving effect to the assignment described in Section 1. Each new
            Note will be issued in the

            - 2 -

            

            

            

            

            

            aggregate
            maximum principal amount of the Term Loan B Commitment [of the Lender to whom such Note
            is issued] OR [the Assignee Lender].

            
                      3.     REPRESENTATIONS,
            WARRANTIES AND COVENANTS

            
                                3.1     
            Assignee Lender’s Representations, Warranties and Covenants. Assignee Lender
            hereby represents, warrants, and covenants the following to Assignor Lender and
            Agent:

            
                                (a)     This
            Agreement is a legal, valid, and binding agreement of Assignee Lender, enforceable
            according to its terms;

            
                                (b)     The
            execution and performance by Assignee Lender of its duties and obligations under this
            Agreement and the Loan Documents will not require any registration with, notice to, or
            consent or approval by any Governmental Authority;

            
                                (c)     Assignee
            Lender is familiar with transactions of the kind and scope reflected in the Loan
            Documents and in this Agreement;

            
                                (d)     Assignee
            Lender has made its own independent investigation and appraisal of the financial
            condition and affairs of each Credit Party, has conducted its own evaluation of the
            Loans, the Loan Documents and each Credit Party’s creditworthiness, has made its
            decision to become a Lender to Borrower under the Credit Agreement independently and
            without reliance upon Assignor Lender or Agent, and will continue to do so;

            
                                (e)     Assignee
            Lender is entering into this Agreement in the ordinary course of its business, and is
            acquiring its interest in the Loans for its own account and not with a view to or for
            sale in connection with any subsequent distribution; provided, however, that at all
            times the distribution of Assignee Lender’s property shall, subject to the terms
            of the Credit Agreement, be and remain within its control;

            
                                (f)     No
            future assignment or participation granted by Assignee Lender pursuant to Section 9.1
            of the Credit Agreement will require Assignor Lender, Agent, or Borrower to file any
            registration statement with the Securities and Exchange Commission or to apply to
            qualify under the blue sky laws of any state;

            
                                (g)     Assignee
            Lender has no loans to, written or oral agreements with, or equity or other ownership
            interest in any Credit Party;

            
                                (h)     Assignee
            Lender will not enter into any written or oral agreement with, or acquire any equity or
            other ownership interest in, any Credit Party without the prior written consent of
            Agent; and

            
                                
            (i)     As of the Effective Date, Assignee Lender (i) is
            entitled to receive payments of principal and interest in respect of the Obligations
            without deduction for or on account of any taxes imposed by the United States of
            America or any political subdivision thereof, (ii) is not subject to capital adequacy
            or similar requirements under Section 1.16(a) of the Credit Agreement, (iii) does not
            require the payment of any increased costs under Section

            -3-

            

            

            

            1.16(b) of the Credit Agreement,
            and (iv) is not unable to fund LIBOR Loans under Section 1.16(c) of the Credit
            Agreement, and Assignee Lender will indemnify Agent from and against all liabilities,
            obligations, losses, damages, penalties, actions, judgments, suits, costs, or expenses
            that result from Assignee Lender’s failure to fulfill its obligations under the
            terms of Section 1.15(c) of the Credit Agreement or from any other inaccuracy in the
            foregoing.

            
                                3.2     
            Assignor Lender’s Representations, Warranties and Covenants. Assignor Lender
            hereby represents, warrants and covenants the following to Assignee Lender:

            
                                 (a)     Assignor
            Lender is the legal and beneficial owner of the Assigned Amount;

            
                                
            (b)     This Agreement is a legal, valid and binding agreement
            of Assignor Lender, enforceable according to its terms;

            
                                
            (c)     The execution and performance by Assignor Lender of
            its duties and obligations under this Agreement and the Loan Documents will not require
            any registration with, notice to or consent or approval by any Governmental
            Authority;

            
                                
            (d)     Assignor Lender has full power and authority, and has
            taken all action necessary to execute and deliver this Agreement and to fulfill the
            obligations hereunder and to consummate the transactions contemplated
            hereby;

            
                                
            (e)     Assignor Lender is the legal and beneficial owner of
            the interests being assigned hereby, free and clear of any adverse claim, lien,
            encumbrance, security interest, restriction on transfer, purchase option, call or
            similar right of a third party; and

            
                                (f)     This
            Assignment by Assignor Lender to Assignee Lender complies, in all material respects,
            with the terms of the Loan Documents.

            
                      4.     LIMITATIONS
            OF LIABILITY

            
                                Neither
            Assignor Lender (except as provided in Section 3.2) nor Agent makes any
            representations or warranties of any kind, nor assumes any responsibility or liability
            whatsoever, with regard to (a) the Loan Documents or any other document or instrument
            furnished pursuant thereto or the Loans or other Obligations, (b) the creation,
            validity, genuineness, enforceability, sufficiency, value or collectibility of any of
            them, (c) the amount, value or existence of the Collateral, (d) the perfection or
            priority of any Lien upon the Collateral, or (e) the financial condition of any Credit
            Party or other obligor or the performance or observance by any Credit Party of its
            obligations under any of the Loan Documents. Neither Assignor Lender nor Agent has or
            will have any duty, either initially or on a continuing basis, to make any
            investigation, evaluation, appraisal of, or any responsibility or liability with
            respect to the accuracy or completeness of, any information provided to Assignee Lender
            which has been provided to Assignor Lender or Agent by any Credit Party. Nothing in
            this Agreement or in the Loan Documents shall impose upon the Assignor Lender or Agent
            any fiduciary relationship in respect of the Assignee Lender.

            -4-

            

            

            

            
                      5.     
            FAILURE TO ENFORCE

            
                                No
            failure or delay on the part of Agent or Assignor Lender in the exercise of any power,
            right, or privilege hereunder or under any Loan Document will impair such power, right,
            or privilege or be construed to be a waiver of any default or acquiescence therein. No
            single or partial exercise of any such power, right, or privilege will preclude further
            exercise thereof or of any other right, power, or privilege. All rights and remedies
            existing under this Agreement are cumulative with, and not exclusive of, any rights or
            remedies otherwise available.

            
                      6.     NOTICES

            
                                Unless
            otherwise specifically provided herein, any notice or other communication required or
            permitted to be given will be in writing and addressed to the respective party as set
            forth below its signature hereunder, or to such other address as the party may
            designate in writing to the other.

            
                      7.     AMENDMENTS
            AND WAIVERS

            
                                No
            amendment, modification, termination, or waiver of any provision of this Agreement will
            be effective without the written concurrence of Assignor Lender, Agent and Assignee
            Lender.

            
                      8.     SEVERABILITY

            
                                Whenever
            possible, each provision of this Agreement will be interpreted in such manner as to be
            effective and valid under applicable law. In the event any provision of this Agreement
            is or is held to be invalid, illegal, or unenforceable under applicable law, such
            provision will be ineffective only to the extent of such invalidity, illegality, or
            unenforceability, without invalidating the remainder of such provision or the remaining
            provisions of the Agreement. In addition, in the event any provision of or obligation
            under this Agreement is or is held to be invalid, illegal, or unenforceable in any
            jurisdiction, the validity, legality, and enforceability of the remaining provisions or
            obligations in any other jurisdictions will not in any way be affected or impaired
            thereby.

            
                      9.     SECTION
            TITLES

            
                                Section
            and Subsection titles in this Agreement are included for convenience of reference only,
            do not constitute a part of this Agreement for any other purpose, and have no
            substantive effect.

            
                      10.     SUCCESSORS
            AND ASSIGNS

            
                                This
            Agreement shall be binding upon and inure to the benefit of the parties hereto and
            their respective successors and assigns.

            
                      11.     APPLICABLE
            LAW

            -5-

            

            

            

            
                                THIS
            AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
            NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE.

            
                      12.     COUNTERPARTS

            
                                This
            Agreement and any amendments, waivers, consents, or supplements may be executed in any
            number of counterparts and by different parties hereto in separate counterparts, each
            of which, when so executed and delivered, will be deemed an original and all of which
            shall together constitute one and the same instrument.

            [signature page
            follows]

            -6-

            

            

            

            
                                IN
            WITNESS WHEREOF, this Agreement has been duly executed as of the date first written
            above.

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        ASSIGNEE
                        LENDER:

                    	
                         

                    	
                        ASSIGNOR
                        LENDER:

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        By:

                    	
                         

                    	
                         

                    	
                         

                    	
                        By:

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    	
                        

                    
	
                        Title:

                    	
                         

                    	
                         

                    	
                         

                    	
                        Title:

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        Notice
                        Address:

                    	
                         

                    	
                        Notice
                        Address:

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        

                    	
                         

                    	
                        

                    
	
                        

                    	
                         

                    	
                        

                    
	
                        

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        ACKNOWLEDGED AND
                        CONSENTED TO:

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        MONROE CAPITAL
                        MANAGEMENT

                    	
                         

                    	
                         

                    
	
                        ADVISORS, as
                        Agent

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        By:

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        Title:

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        [If Borrower’s
                        consent is required]

                    	
                         

                    	
                         

                    
	
                        BUTLER SERVICE
                        GROUP, INC.

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        By:

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        Title:

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    	
                        ]

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                    	
                    	
                    	
                    	
                    	
                    	
                    	
                    

            -7-

            

            

            

            SCHEDULE
            2.1

            
            Assignor Lender’s
            Loans

            	
                         

                    	
                         

                    	
                         

                    
	
                        Principal
                        Amount

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        Term Loan
                        B

                    	
                        $

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        Accrued
                        Interest

                    	
                        $

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        Other + or
                        -$

                    	
                        $

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        Total

                    	
                        $

                    	
                         

                    
	
                         

                    	
                         

                    	
                        

                    

            All determined as of the
            Effective Date.

            -8-EXECUTION
                        VERSION
                    

                
	 
	
                    

                
	 
	 
	
                    THIRD
                    AMENDED AND RESTATED CREDIT AGREEMENT

                    

                    Dated as of August 29, 2007

                    among

                    

                    BUTLER SERVICE GROUP, INC.,

                    as
                    Borrower,

                    

                    THE OTHER CREDIT PARTIES SIGNATORY HERETO,

                    as Credit
                    Parties,

                    THE
                    LENDERS SIGNATORY HERETO

                    FROM TIME
                    TO TIME,

                    as
                    Lenders,

                    
                    and

                    GENERAL
                    ELECTRIC CAPITAL CORPORATION,

                    

                    as Agent and Lender

                
	 
	   
                
	
                    

                

        	
                    

                    

                    

                

        

        

        	
                    
                    TABLE OF
                    CONTENTS

                
	 

        	
                	
                	
                	
                	
                	
                	Page	
                
	
                  	 
                
	
                1.	
                  	
                AMOUNT AND TERMS OF
                CREDIT	
                  	
                2	
                  
	 	 
                	1.1	 
                	
                Credit
                Facilities	 
                	2	 
                
	 	 
                	1.2	 
                	
                Letters of
                Credit	 
                	5	 
                
	 	 
                	1.3	 
                	
                Prepayments	 
                	5	 
                
	 	 
                	1.4	 
                	
                Use of Proceeds	 
                	8	 
                
	 	 
                	1.5	 
                	
                Interest and Applicable
                Margins	 
                	8	 
                
	 	 
                	1.6	 
                	
                Eligible
                Accounts	 
                	10	 
                
	 	
                  	
                1.7	
                  	
                Eligible Pending Accounts
                Receivable and Fixed Contract Accounts Receivable	 
                	13	 
                
	 	 
                	1.8	 
                	
                Cash Management
                Systems	 
                	13	 
                
	 	 
                	1.9	 
                	
                Fees	 
                	13	 
                
	 	 
                	1.10	 
                	
                Receipt of
                Payments	 
                	14	 
                
	 	 
                	1.11	 
                	
                Application and Allocation of
                Payments	 
                	14	 
                
	 	 
                	1.12	 
                	
                Loan Account and
                Accounting	 
                	15	 
                
	 	 
                	1.13	 
                	
                Indemnity	 
                	15	 
                
	 	 
                	1.14	 
                	
                Access	 
                	16	 
                
	 	 
                	1.15	 
                	
                Taxes	 
                	17	 
                
	 	 
                	1.16	 
                	
                Capital Adequacy; Increased
                Costs; Illegality	 
                	17	 
                
	 	 
                	1.17	 
                	
                Single Loan	 
                	19	 
                
	2.	 
                	
                CONDITIONS
                PRECEDENT	 
                	19	 
                
	 	 
                	2.1	 
                	
                Conditions to the Initial
                Loans	 
                	19	 
                
	 	 
                	2.2	 
                	
                Further Conditions to Each
                Loan	 
                	20	 
                
	3.	 
                	
                REPRESENTATIONS AND
                WARRANTIES	 
                	21	 
                
	 	 
                	3.1	 
                	
                Corporate Existence;
                Compliance with Law	 
                	21	 
                
	 	 
                	3.2	 
                	
                Executive Offices, Collateral
                Locations, FEIN	 
                	21	 
                
	 	 
                	3.3	 
                	
                Corporate Power,
                Authorization, Enforceable Obligations	 
                	21	 
                
	 	 
                	3.4	 
                	
                Financial Statements and
                Projections	 
                	22	 
                
	 	 
                	3.5	 
                	
                Material Adverse
                Effect	 
                	22	 
                
	 	 
                	3.6	 
                	
                Ownership of Property;
                Liens	 
                	23	 
                
	 	 
                	3.7	 
                	
                Labor Matters	 
                	23	 
                

        	
                    

                    
                    -i-

                    

                

        

        

        	
                    
                    TABLE OF
                    CONTENTS

                
	
                (continued)
	 

        	
                	
                	
                	
                	
                	
                	Page	
                
	
                  	 
                
	 	
                  	
                3.8	
                  	
                Ventures, Subsidiaries and
                Affiliates; Outstanding Stock and

                Indebtedness	
                  	
                24	
                  
	 	 
                	3.9	 
                	
                Government
                Regulation	 
                	24	 
                
	 	 
                	3.10	 
                	
                Margin
                Regulations	 
                	24	 
                
	 	 
                	3.11	 
                	
                Taxes	 
                	24	 
                
	 	 
                	3.12	 
                	
                ERISA	 
                	25	 
                
	 	 
                	3.13	 
                	
                No Litigation	 
                	26	 
                
	 	 
                	3.14	 
                	
                Brokers	 
                	26	 
                
	 	 
                	3.15	 
                	
                Intellectual
                Property	 
                	26	 
                
	 	 
                	3.16	 
                	
                Full
                Disclosure	 
                	26	 
                
	 	 
                	3.17	 
                	
                Environmental
                Matters	 
                	27	 
                
	 	 
                	3.18	 
                	
                Insurance	 
                	27	 
                
	 	 
                	3.19	 
                	
                Deposit and Disbursement
                Accounts	 
                	27	 
                
	 	 
                	3.20	 
                	
                Government
                Contracts	 
                	28	 
                
	 	 
                	3.21	 
                	
                Customer and Trade
                Relations	 
                	28	 
                
	 	 
                	3.22	 
                	
                Agreements and Other
                Documents	 
                	28	 
                
	 	 	3.23	 	
                Solvency 	 	28	 
	 	 
                	3.24	 
                	
                Status of
                Holdings	 
                	28	 
                
	 	 
                	3.25	 
                	
                Foreign Assets Control
                Regulations	 
                	28	 
                
	 	 
                	3.26	 
                	
                Anti-Terrorism
                Law	 
                	29	 
                
	 	 
                	3.27	 
                	
                Second Lien Credit
                Agreement	 
                	29	 
                
	4.	 
                	
                FINANCIAL STATEMENTS AND
                INFORMATION	 
                	30	 
                
	 	 
                	4.1	 
                	
                Reports and
                Notices	 
                	30	 
                
	 	 
                	4.2	 
                	
                Communication with
                Accountants	 
                	30	 
                
	5.	 
                	
                AFFIRMATIVE
                COVENANTS	 
                	30	 
                
	 	 
                	5.1	 
                	
                Maintenance of Existence and
                Conduct of Business	 
                	30	 
                
	 	 
                	5.2	 
                	
                Payment of
                Charges	 
                	30	 
                
	 	 
                	5.3	 
                	
                Books and
                Records	 
                	31	 
                
	 	 
                	5.4	 
                	
                Insurance; Damage to or
                Destruction of Collateral	 
                	31	 
                
	 	 
                	5.5	 
                	
                Compliance with
                Laws	 
                	33	 
                
	 	 
                	5.6	 
                	
                Supplemental
                Disclosure	 
                	33	 
                

        	
                    

                    
                    -ii-

                    

                

        

        

        	
                    
                    TABLE OF
                    CONTENTS

                
	
                (continued)
	 

        	
                	
                	
                	
                	
                	
                	Page	
                
	
                  	 
                
	 	
                  	
                5.7	
                  	
                Intellectual
                Property	
                  	
                33	
                  
	 	 
                	5.8	 
                	
                Environmental
                Matters	 
                	33	 
                
	
                 
                 
                 
                 
                 
                 
                  	 
                
	
                  	 
                	
                5.9	 
                	
                Landlords’
                Agreements, Mortgagee Agreements, Bailee Letters and

                Real Estate Purchases	 
                	
                34	 
                
	 	 
                	5.10	 
                	
                Further
                Assurances	 
                	34	 
                
	6.	 
                	
                NEGATIVE
                COVENANTS	 
                	35	 
                
	 	 
                	6.1	 
                	
                Mergers, Subsidiaries,
                Etc	 
                	35	 
                
	 	 
                	6.2	 
                	
                Investments; Loans and
                Advances	 
                	35	 
                
	 	 
                	6.3	 
                	
                Indebtedness	 
                	36	 
                
	 	 
                	6.4	 
                	
                Employee Loans and Affiliate
                Transactions	 
                	36	 
                
	 	 
                	6.5	 
                	
                Capital Structure and
                Business	 
                	37	 
                
	 	 
                	6.6	 
                	
                Guaranteed
                Indebtedness	 
                	38	 
                
	 	 
                	6.7	 
                	
                Liens	 
                	38	 
                
	 	 
                	6.8	 
                	
                Sale of Stock and
                Assets	 
                	38	 
                
	 	 
                	6.9	 
                	
                ERISA	 
                	39	 
                
	 	 
                	6.10	 
                	
                Financial
                Covenants	 
                	39	 
                
	 	 
                	6.11	 
                	
                Hazardous
                Materials	 
                	39	 
                
	 	 
                	6.12	 
                	
                Sale-Leasebacks	 
                	39	 
                
	 	 
                	6.13	 
                	
                Cancellation of
                Indebtedness	 
                	39	 
                
	 	 
                	6.14	 
                	
                Restricted
                Payments	 
                	39	 
                
	 	 
                	6.15	 
                	
                Change of Corporate Name or
                Location; Change of Fiscal Year	 
                	40	 
                
	 	 
                	6.16	 
                	
                No Impairment of Intercompany
                Transfers	 
                	40	 
                
	 	 
                	6.17	 
                	
                No Speculative
                Transactions	 
                	40	 
                
	 	 
                	6.18	 
                	
                Leases; Real Estate
                Purchases	 
                	40	 
                
	 	 
                	6.19	 
                	
                Sale or Discount of
                Accounts	 
                	40	 
                
	 	 
                	6.20	 
                	
                Reserved	 
                	40	 
                
	 	 
                	6.21	 
                	
                No Further Negative
                Pledge	 
                	40	 
                
	
                 
                 
                 
                 
                 
                 
                  	 
                
	 	  	
                6.22	  	Amendments or
                Waivers of Certain Documents; Second Lien Loan

                Document Notices	 	41	 
	7.	 
                	
                TERM	 
                	41	 
                
	 	 
                	7.1	 
                	
                Termination	 
                	41	 
                

        	
                    

                    
                    -iii-

                    

                

        

        

        	
                    
                    TABLE OF
                    CONTENTS

                
	
                (continued)
	 

        	
                	
                	
                	
                	
                	
                	Page	
                
	
                  	 
                
	 	 	
                7.2	
                  	
                Survival of Obligations Upon
                Termination of Financing Arrangements	
                  	
                41	
                  
	8.	 	
                EVENTS OF DEFAULT; RIGHTS AND
                REMEDIES	 
                	41	 
                
	 	 	8.1	 
                	
                Events of
                Default	 
                	41	 
                
	 	 	8.2	 
                	
                Remedies	 
                	43	 
                
	 	 	8.3	 
                	
                Waivers by Credit
                Parties	 
                	44	 
                
	9.	 	
                ASSIGNMENT AND PARTICIPATIONS;
                APPOINTMENT OF AGENT	 
                	44	 
                
	 	 	9.1	 
                	
                Assignment and
                Participations	 
                	44	 
                
	 	 	9.2	 
                	
                Appointment of
                Agent	 
                	47	 
                
	 	 	9.3	 
                	
                Agent’s Reliance,
                Etc	 
                	48	 
                
	 	 	9.4	 
                	
                GE Capital and
                Affiliates	 
                	48	 
                
	 	 	9.5	 
                	
                Lender Credit
                Decision	 
                	48	 
                
	 	 	9.6	 
                	
                Indemnification	 
                	49	 
                
	 	 	9.7	 
                	
                Successor
                Agent	 
                	49	 
                
	 	 	9.8	 
                	
                Setoff and Sharing of
                Payments	 
                	50	 
                
	
                 
                 
                 
                 
                 
                 
                  	 
                
	 	 	9.9	  	Advances;
                Payments; Non-Funding Lenders; Information; Actions in

                Concert	 	50	 
	10.	 	
                SUCCESSORS AND
                ASSIGNS	 
                	52	 
                
	 	 	10.1	 
                	
                Successors and
                Assigns	 
                	52	 
                
	11.	 	
                MISCELLANEOUS	 
                	53	 
                
	
                 
                 
                 
                 
                 
                 
                  	 
                
	 	 	
                11.1	  	Effect of
                Amendment and Restatement; Affirmation of Existing

                Loan Documents	 	53	 
	 	 	11.2	 
                	
                Amendments and
                Waivers	 
                	54	 
                
	 	 	11.3	 
                	
                Fees and
                Expenses	 
                	56	 
                
	 	 	11.4	 
                	
                No Waiver	 
                	57	 
                
	 	 	11.5	 
                	
                Remedies	 
                	57	 
                
	 	 	11.6	 
                	
                Severability	 
                	57	 
                
	 	 	11.7	 
                	
                Conflict of
                Terms	 
                	57	 
                
	 	 	11.8	 
                	
                Confidentiality	 
                	58	 
                
	 	 	11.9	 
                	
                GOVERNING LAW	 
                	58	 
                
	 	 	
                11.10	 
                	
                Notices	 
                	59	 
                
	 	 	
                11.11	 
                	
                Section
                Titles	 
                	59	 
                

        	
                    

                    
                    -iv-

                    

                

        

        

        	
                    
                    TABLE OF
                    CONTENTS

                
	
                (continued)
	 

        	
                	
                	
                	
                	
                	
                	Page	
                
	
                  	 
                
	 	 	
                11.12	
                  	
                Counterparts	
                  	
                59	
                  
	 	 	
                11.13	 
                	
                WAIVER OF JURY
                TRIAL	 
                	59	 
                
	 	 	
                11.14	 
                	
                Press Releases and Related
                Matters	 
                	60	 
                
	 	 	
                11.15	 
                	
                Reinstatement	 
                	60	 
                
	 	 	
                11.16	 
                	
                Advice of
                Counsel	 
                	60	 
                
	 	 	
                11.17	 
                	
                No Strict
                Construction	 
                	60	 
                

        	
                    

                    
                    -v-

                    

                

        

        

        	
                INDEX OF
                APPENDICES
	 

        	
                	
                	
                	
                	
                	
                
	Annex A
                (Recitals)	
                  	
                -	
                  	
                Definitions	
                  
	Annex B
                (Section 1.2)	 
                	-	 
                	Letters of
                Credit	 
                
	Annex C
                (Section 1.8)	 
                	-	 
                	Cash
                Management System	 
                
	Annex D
                (Section 2.1 (a))	 
                	-	 
                	Closing
                Checklist	 
                
	Annex E
                (Section 4.1 (a))	 
                	-	 
                	Financial
                Statements and Projections - Reporting	 
                
	Annex F
                (Section 4.1 (b))	 
                	-	 
                	Collateral
                Reports	 
                
	Annex G
                (Section 6.10)	 
                	-	 
                	Financial
                Covenants	 
                
	Annex H
                (Section 9.9(a))	 
                	-	 
                	Lenders’
                Wire Transfer Information	 
                
	Annex I
                (Section 11.10)	 
                	-	 
                	Notice
                Addresses	 
                
	Annex
                J (from Annex A-Commitments definition) 	 
                	-	 
                	Commitments as
                of Closing Date	 
                
	 	 	 	 	 	 
	Exhibit 1.1
                (a)(i)	 
                	-	 
                	Form of Notice
                of Revolving Credit Advance	 
                
	Exhibit 1.1
                (a)(ii)	 
                	-	 
                	Form of
                Revolving Note	 
                
	Exhibit 1.1
                (c)(ii)	 
                	-	 
                	Form of Swing
                Line Note	 
                
	Exhibit
                1.5(e)	 
                	-	 
                	Form of Notice
                of Conversion/Continuation	 
                
	Exhibit 4.
                1(b)	 
                	-	 
                	Form of
                Borrowing Base Certificate	 
                
	Exhibit 9.1
                (a)	 
                	-	 
                	Form of
                Assignment Agreement	 
                
	Exhibit B-1 -
                Appl	 
                	-	 
                	Application
                for Standby Letter of Credit	 
                
	Schedule
                1.1	 
                	-	 
                	Agent’s
                Representatives	 
                
	Disclosure
                Schedule 1.4	 
                	-	 
                	Sources and
                Uses; Funds Flow Memorandum	 
                
	Disclosure
                Schedule 3.1	 
                	-	 
                	Type of
                Entity; State of Organization	 
                
	Disclosure
                Schedule 3.2	 
                	-	 
                	Executive
                Offices, Collateral Locations, FEIN	 
                
	Disclosure
                Schedule 3.4(A)	 
                	-	 
                	Financial
                Statements	 
                
	Disclosure
                Schedule 3.4(B)	 
                	-	 
                	Pro
                Forma	 
                
	Disclosure
                Schedule 3.6	 
                	-	 
                	Real Estate
                and Leases	 
                
	Disclosure
                Schedule 3.7	 
                	-	 
                	Labor
                Matters	 
                
	
                Disclosure Schedule
                3.8	 
                	
                -	 
                	Ventures,
                Subsidiaries and Affiliates;

                Outstanding Stock	 
                
	Disclosure
                Schedule 3.11	 
                	-	 
                	Tax
                Matters	 
                
	Disclosure
                Schedule 3.12	 
                	-	 
                	ERISA
                Plans	 
                
	Disclosure
                Schedule 3.13	 
                	-	 
                	
                Litigation	 
                
	Disclosure
                Schedule 3.14	 
                	-	 
                	
                Brokers	 
                
	Disclosure
                Schedule 3.15	 
                	-	 
                	Intellectual
                Property	 
                
	Disclosure
                Schedule 3.17	 
                	-	 
                	Hazardous
                Materials	 
                
	Disclosure
                Schedule 3.18	 
                	-	 
                	
                Insurance	 
                
	Disclosure
                Schedule 3.19	 
                	-	 
                	Deposit and
                Disbursement Accounts	 
                
	Disclosure
                Schedule 3.20	 
                	-	 
                	Government
                Contracts	 
                
	Disclosure
                Schedule 3.22	 
                	-	 
                	Material
                Agreements	 
                
	Disclosure
                Schedule 5.1	 
                	-	 
                	Trade
                Names	 
                
	Disclosure
                Schedule 6.3	 
                	-	 
                	
                Indebtedness	 
                
	Disclosure
                Schedule 6.4	 
                	-	 
                	Stock Option
                Plans	 
                
	Disclosure
                Schedule 6.7	 
                	-	 
                	Existing
                Liens	 
                
	
                	
                	
                

        	
                    

                    
                    -vi-

                    

                

        

        

        	
                    
                                                    
                    This THIRD AMENDED AND
                    RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of
                    August 29, 2007 among Butler Service Group, Inc., a New Jersey corporation
                    (“Borrower”); the other Credit Parties signatory hereto;
                    GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual
                    capacity, “GE Capital”), for itself, as Lender, and as Agent
                    for Lenders, and the other Lenders signatory hereto from time to
                    time.

                    
                    RECITALS

                
	 
                

        	
                                                
                WHEREAS, Borrower and GE
                Capital are parties to that certain Second Amended and Restated Credit Agreement,
                dated as of September 28, 2001 (as amended, supplemented or otherwise modified
                prior to the date hereof, the “Existing Credit
                Agreement”);
	 
	
                                                
                WHEREAS, Borrower is currently
                obligated to GE Capital in respect of and pursuant to the Existing Credit Agreement
                (the “Existing Obligations”);
	 
	
                                                
                WHEREAS, Borrower, Agent and
                Lenders wish to amend and restate the Existing Credit Agreement in its entirety
                upon the terms and conditions set forth herein;

        	 
                
	
                    
                                                    
                    WHEREAS, Butler
                    International, Inc., a Maryland corporation (“Holdings”) is
                    willing to guarantee all of the obligations of Borrower to Agent and Lenders
                    under the Loan Documents and to pledge to Agent, for the benefit of Agent and
                    Lenders and grant a security interest in and lien upon all of its existing and
                    after-acquired personal and real property to secure such guaranty;

                    
                                                    
                    WHEREAS, it is the intent
                    of the parties hereto that this Agreement not constitute a novation of the
                    Existing Obligations or evidence payment of all or any of such Existing
                    Obligations and that from and after the date hereof, the Existing Credit
                    Agreement be of no further force and effect except as to evidence the
                    incurrence of the “Obligations” thereunder and the representations
                    and warranties made thereunder;

                    
                                                    
                    WHEREAS, each of
                    Holdings’ Subsidiaries (other than Butler India, Butler Foundation, AAC
                    Corp. and Sylvan Insurance Co., Ltd.) is willing to guarantee all of the
                    obligations of Borrower to Agent and Lenders under the Loan Documents and to
                    grant to Agent, for the benefit of Agent and Lenders, a security interest in
                    and lien upon all of its existing and after-acquired personal and real property
                    to secure such guaranty; and

                    
                                                    
                    WHEREAS, capitalized terms
                    used in this Agreement shall have the meanings ascribed to them in Annex
                    A and, for purposes of this Agreement and the other Loan Documents, the
                    rules of construction set forth in Annex A shall govern. All Annexes,
                    Disclosure Schedules, Exhibits and other attachments (collectively,
                    “Appendices”) hereto, or expressly identified to this
                    Agreement, are incorporated herein by reference, and taken together with this
                    Agreement, shall constitute but a single agreement. These Recitals shall be
                    construed as part of the Agreement.

                    
                                                    
                    NOW, THEREFORE, in
                    consideration of the premises and the mutual covenants hereinafter contained,
                    and for other good and valuable consideration, the parties hereto agree that,
                    effective as of the Closing Date, the Existing Credit Agreement shall be hereby
                    amended and restated in its entirety to read as follows:

                

        	
                    

                    

                    

                

        

        

        	
                1.
                	AMOUNT AND
                TERMS OF CREDIT
	 

        	 	
                1.1	Credit
                Facilities.
	
                	 

        	 	
                (a)	Revolving
                Credit Facility.

        	 
                
	
                    
                                                                  
                    (i)         Subject
                    to the terms and conditions hereof, each Revolving Lender agrees to make
                    available to Borrower (and continue outstanding a portion of the advances
                    outstanding pursuant to the terms of the Existing Credit Agreement equal to the
                    amount of the Revolving Loan Commitment) from time to time until the Commitment
                    Termination Date its Pro Rata Share of advances (each, including the
                    restructured portion of the advances outstanding pursuant to the terms of the
                    Existing Credit Agreement, together with any payments made in respect of any
                    Letter of Credit Obligations which are automatically deemed to be Revolving
                    Credit Advances pursuant to Annex B, a “Revolving Credit
                    Advance”). The Pro Rata Share of the Revolving Loan of any Revolving
                    Lender shall not at any time exceed its separate Revolving Loan Commitment. The
                    obligations of each Revolving Lender hereunder shall be several and not joint.
                    Until the Commitment Termination Date, Borrower may from time to time borrow,
                    repay and reborrow under this Section 1.1(a);
                    provided, that the amount of any Revolving Credit Advance to be made at
                    any time shall not exceed Borrowing Availability at such time. Borrowing
                    Availability may be further reduced by Reserves imposed by Agent in its
                    reasonable credit judgment. Until the Commitment Termination Date, Borrower may
                    from time to time borrow, repay and reborrow under this Section 1.1 (a).
                    Each Revolving Credit Advance shall be made on notice by Borrower to one of the
                    representatives of Agent identified in Schedule 1.1 at the address
                    specified therein. Any such notice must be given no later than (1) 12:00 p.m.
                    (New York time) on the Business Day of the proposed Revolving Credit Advance,
                    in the case of an Index Rate Loan, or (2) 12:00 p.m. (New York time) on the
                    date which is 3 Business Days prior to the proposed Revolving Credit Advance,
                    in the case of a LIBOR Loan. Each such notice (a “Notice of Revolving
                    Credit Advance”) must be given in writing (by telecopy or overnight
                    courier) substantially in the form of Exhibit 1.1(a)(i),
                    and shall include the information required in such Exhibit and such other
                    information as may be required by Agent. If Borrower desires to have the
                    Revolving Credit Advances bear interest by reference to a LIBOR Rate, it must
                    comply with Section 1.5(e).

                    
                                                                 
                    (ii)         Except
                    as provided in Section 1.12, Borrower shall execute and deliver to each
                    Revolving Lender a note to evidence the Revolving Loan Commitment of that
                    Revolving Lender. Each note shall be in the principal amount of the Revolving
                    Loan Commitment of the applicable Revolving Lender, dated the Original Closing
                    Date and substantially in the form of Exhibit 1.1(a)(ii) (each a
                    “Revolving Note” and, collectively, the “Revolving
                    Notes”). Each Revolving Note shall represent the obligation of
                    Borrower to pay the amount of Revolving Lender’s Revolving Loan
                    Commitment or, if less, such Revolving Lender’s Pro Rata Share of the
                    aggregate unpaid principal amount of all Revolving Credit Advances (including
                    the restructured portion of the advances made pursuant to the terms of the
                    Existing Credit Agreement) to Borrower together with interest thereon as
                    prescribed in Section 1.5. The entire unpaid balance of the Revolving
                    Loan and all other non-contingent Obligations shall be immediately due and
                    payable in full in immediately available funds on the Commitment Termination
                    Date.

                

        	
                    

                    
                    -2-

                    

                

        

        

        	
                                                           
                (iii)         Any
                provision of this Agreement to the contrary notwithstanding, at the request of
                Borrower, in its discretion Agent may (but shall have absolutely no obligation to),
                make Revolving Credit Advances to Borrower on behalf of Revolving Lenders in
                amounts that cause the outstanding balance of the aggregate Revolving Loan to
                exceed the Borrowing Base (less the Swing Line Loan) (any such excess Revolving
                Credit Advances are herein referred to collectively as
                “Overadvances”); provided that (A) no such event or occurrence
                shall cause or constitute a waiver of Agent’s, the Swing Line Lender’s
                or Revolving Lenders’ right to refuse to make any further Overadvances, Swing
                Line Advances or Revolving Credit Advances, or incur any Letter of Credit
                Obligations, as the case may be, at any time that an Overadvance exists, and (B) no
                Overadvance shall result in a Default or Event of Default due to Borrower’s
                failure to comply with Section 1.3(b)(i) for so long as Agent permits such
                Overadvance to remain outstanding, but solely with respect to the amount of such
                Overadvance. In addition, Overadvances may be made even if the conditions to
                lending set forth in Section 2 have not been met. All Overadvances shall
                constitute Index Rate Loans, shall bear interest at the Default Rate and shall be
                payable on demand. Except as otherwise provided in Section 1.1 1(b),
                the authority of Agent to make Overadvances is limited to an aggregate amount not
                to exceed $1,000,000 at any time, shall not cause the Revolving Loan to exceed the
                Maximum Amount, and may be revoked prospectively by a written notice to Agent
                signed by Revolving Lenders holding more than 50% of the Revolving Loan
                Commitments.
	 

        	 	(b)
                           
                Reserved.
	
                	 
	 	(c)
                            
                Swing Line Facility.

        	 
                
	
                    
                                                                  
                    (i)         Agent
                    shall notify the Swing Line Lender upon Agent’s receipt of any Notice of
                    Revolving Credit Advance. Subject to the terms and conditions hereof, the Swing
                    Line Lender may, in its discretion, make available from time to time until the
                    Commitment Termination Date advances (each, a “Swing Line
                    Advance”) in accordance with any such notice. The provisions of this
                    Section 1.1 (c) shall not relieve Revolving Lenders of their obligations
                    to make Revolving Credit Advances under Section 1.1 (a); provided that
                    if the Swing Line Lender makes a Swing Line Advance pursuant to any such
                    notice, such Swing Line Advance shall be in lieu of any Revolving Credit
                    Advance that otherwise may be made by Revolving Credit Lenders pursuant to such
                    notice. The aggregate amount of Swing Line Advances outstanding shall not
                    exceed at any time the lesser of (A) the Swing Line Commitment and (B) the
                    lesser of the Maximum Amount and (except for Overadvances) the Borrowing Base,
                    in each case, less the outstanding balance of the Revolving Loan at such time
                    (“Swing Line Availability”). Until the Commitment
                    Termination Date, Borrower may from time to time borrow, repay and reborrow
                    under this Section 1.1(c). Each Swing Line Advance shall be made
                    pursuant to a Notice of Revolving Credit advance delivered by Borrower to Agent
                    in accordance with Section 1.1 (a). Any such notice must be given no
                    later than 12:00 p.m. (New York time) on the Business Day of the proposed Swing
                    Line Advance. Unless the Swing Line Lender has received at least one Business
                    Day’s prior written notice from Requisite Revolving Lenders instructing
                    it not to make a Swing Line Advance, the Swing Line Lender shall,
                    notwithstanding the failure of any condition precedent set forth in Sections
                    2.2, be entitled to fund that Swing Line Advance, and to have such
                    Revolving Lender make Revolving Credit Advances in accordance with Section
                    1.1(c)(iii) or purchase participating interests in accordance with
                    Section 1.1(c)(iv). Notwithstanding any other provision of this
                    Agreement or the other Loan Documents, the Swing

                

        	
                    

                    
                    -3-

                    

                

        

        

        	Line Loan
                shall constitute an Index Rate Loan. Borrower shall repay the aggregate outstanding
                principal amount of the Swing Line Loan upon demand therefor by Agent.

        	 
                
	
                    
                                                                 
                    (ii)         Borrower
                    shall execute and deliver to the Swing Line Lender a promissory note to
                    evidence the Swing Line Commitment. Such note shall be in the principal amount
                    of the Swing Line Commitment of the Swing Line Lender, dated the Original
                    Closing Date and substantially in the form of Exhibit 1.1(c)(ii) (the
                    “Swing Line Note”). The Swing Line Note shall represent the
                    obligation of Borrower to pay the amount of the Swing Line Commitment or, if
                    less, the aggregate unpaid principal amount of all Swing Line Advances made to
                    Borrower together with interest thereon as prescribed in Section 1.5.
                    The entire unpaid balance of the Swing Line Loan and all other noncontingent
                    Obligations shall be immediately due and payable in full in immediately
                    available funds on the Commitment Termination Date if not sooner paid in
                    full.

                
	 
                
	
                                                           
                (iii)         The
                Swing Line Lender, at any time and from time to time in its sole and absolute
                discretion may on behalf of Borrower (and Borrower hereby irrevocably authorizes
                the Swing Line Lender to so act on its behalf) request each Revolving Lender
                (including the Swing Line Lender) to make a Revolving Credit Advance to Borrower
                (which shall be an Index Rate Loan) in an amount equal to that Revolving
                Lender’s Pro Rata Share of the principal amount of the Swing Line Loan (the
                “Refunded Swing Line Loan”) outstanding on the date such notice
                is given. Unless any of th e events described in Sections 8.1(h) or 8.1(i)
                has occurred (in which event the procedures of Section 1.1 (c)(iv) shall
                apply) and regardless of whether the conditions precedent set forth in this
                Agreement to the making of a Revolving Credit Advance are then satisfied, each
                Revolving Lender shall disburse directly to Agent, its Pro Rata Share of a
                Revolving Credit Advance on behalf of the Swing Line Lender, prior to 3:00 p.m.
                (New York time), in immediately available funds on the Business Day next succeeding
                the date that notice is given. The proceeds of those Revolving Credit Advances
                shall be immediately paid to the Swing Line Lender and applied to repay the
                Refunded Swing Line Loan.
	 
	
                                                            
                (iv)         If,
                prior to refunding a Swing Line Loan with a Revolving Credit Advance pursuant to
                Section 1.1(c)(iii), one of the events described in Sections 8.1(h) or
                8.1(i) has occurred, then, subject to the provisions of Section 1.
                1(c)(v) below, each Revolving Lender shall, on the date such Revolving Credit
                Advance was to have been made for the benefit of Borrower, purchase from the Swing
                Line Lender an undivided participation interest in the Swing Line Loan in an amount
                equal to its Pro Rata Share of such Swing Line Loan. Upon request, each Revolving
                Lender shall promptly transfer to the Swing Line Lender, in immediately available
                funds, the amount of its participation interest.
	 
	
                                                             
                (v)         Each
                Revolving Lender’s obligation to make Revolving Credit Advances in accordance
                with Section 1.1(c)(iii) and to purchase participation interests in
                accordance with Section 1.1(c)(iv) shall be absolute and unconditional and
                shall not be affected by any circumstance, including (A) any setoff, counterclaim,
                recoupment, defense or other right that such Revolving Lender may have against the
                Swing Line Lender, Borrower or any other Person for any reason whatsoever; (B) the
                occurrence or continuance of any Default or Event of Default; (C) any inability of
                Borrower to satisfy the conditions precedent to borrowing set forth in this
                Agreement at any time or (D) any other circumstance, happening or event whatsoever,
                whether or not similar to any of the foregoing. If any Revolving Lender does not
                make available

        	
                    

                    
                    -4-

                    

                

        

        

        	
                    to Agent or the Swing
                    Line Lender, as applicable, the amount required pursuant to Sections
                    1.1(c)(iii) or 1.1(c)(iv), as the case may be, the Swing Line Lender
                    shall be entitled to recover such amount on demand from such Revolving Lender,
                    together with interest thereon for each day from the date of non-payment until
                    such amount is paid in full at the Federal Funds Rate for the first two
                    Business Days and at the Index Rate thereafter.

                    
                                                    
                    (d)       
                    Reliance on Notices. Agent shall be entitled to rely upon, and shall be
                    fully protected in relying upon, any Notice of Revolving Credit Advance, Notice
                    of Conversion/Continuation or similar notice believed by Agent to be genuine.
                    Agent may assume that each Person executing and delivering any notice in
                    accordance herewith was duly authorized, unless the responsible individual
                    acting thereon for Agent has actual knowledge to the contrary.

                    
                                     
                    1.2          
                    Letters of Credit. Subject to and in accordance with the terms and
                    conditions contained herein and in Annex B, Borrower shall have the
                    right to request, and Revolving Lenders agree to incur, or purchase
                    participations in, Letter of Credit Obligations in respect of
                    Borrower.

                
	 
                

        	
                                 
                1.3          
                Prepayments.

        	 
                
	
                    
                                                    
                    (a)            
                    Voluntary Prepayments. Borrower may at any time on at least 5
                    days’ prior written notice to Agent permanently reduce (but not
                    terminate) the Revolving Loan Commitment; provided that (A) any such
                    prepayments of the Revolving Loans and shall be in a minimum amount of $500,000
                    and integral multiples of $250,000 in excess of such amount, (B) the Revolving
                    Loan Commitment shall not be reduced to an amount less than the amount of the
                    Revolving Loan outstanding, and (C) after giving effect to such reductions,
                    Borrower shall comply with Section 1.3(b )(i). In addition, Borrower may
                    at any time on at least 10 days’ prior written notice to Agent terminate
                    the Revolving Loan Commitment; provided that upon such termination, all
                    Loans and other Obligations shall be immediately due and payable in full and
                    all Letter of Credit Obligations shall be cash collateralized or otherwise
                    satisfied in accordance with Annex B. Any voluntary prepayment and any
                    reduction or termination of the Revolving Loan Commitment must be accompanied
                    by the payment of any LIBOR funding breakage costs in accordance with
                    Section 1.13(b). Upon any such reduction or termination of the Revolving
                    Loan Commitment, Borrower’s right to request Revolving Credit Advances,
                    or request that Letter of Credit Obligations be incurred on its behalf, or
                    request Swing Line Advances, shall simultaneously be permanently reduced or
                    terminated, as the case may be; provided that a permanent reduction of
                    the Revolving Loan Commitment shall require a corresponding pro rata reduction
                    in the L/C Sublimit. Each notice of partia l prepayment shall designate the
                    Loan or other Obligations to which such prepayment is to be applied.

                
	 
                

        	 	(b)
                           
                Mandatory Prepayments.

        	 
                
	
                    
                                                                  
                    (i)         If
                    at any time the outstanding balances of the Revolving Loan and the Swing Line
                    Loan exceed the lesser of (A) the Maximum Amount and (B) the Borrowing Base,
                    Borrower shall immediately repay the aggregate outstanding Revolving Credit
                    Advances to the extent required to eliminate such excess. If any such excess
                    remains after repayment in full of the aggregate outstanding Revolving Credit
                    Advances, Borrower shall provide cash

                

        	
                    

                    
                    -5-

                    

                

        

        

        	collateral for
                the Letter of Credit Obligations in the manner set forth in Annex B to the
                extent required to eliminate such excess. Notwithstanding the foregoing, any
                Overadvance made pursuant to Section 1.1(a)(iii) shall be repaid only on
                demand.

        	 
                
	
                    
                                                                 
                    (ii)         Immediately
                    upon receipt by any Credit Party of proceeds of any asset disposition
                    (excluding proceeds of asset dispositions permitted by Sections 6.8(a)
                    and 6.8(c)), but including any sale of Stock of any Subsidiary of any
                    Credit Party, and the amount of such proceeds from any single transaction or
                    series of related transactions equals or exceeds $1,000,000, if the daily
                    average Borrowing Availability for the 30-day period preceding such asset
                    disposition exceeds $5,000,000, Borrower shall prepay the Loans in an amount
                    equal to one hundred percent (100%) of the amount of such proceeds, net of (A)
                    commissions and other reasonable and customary transaction costs, fees and
                    expenses properly attributable to such transaction and payable by Borrower in
                    connection therewith (in each case, paid to non-Affiliates), (B) transfer
                    taxes, (C) amounts payable to holders of senior Liens (to the extent such Liens
                    constitute Permitted Encumbrances hereunder), if any, and (D) an appropriate
                    reserve for income taxes in accordance with GAAP in connection therewith;
                    provided that no amount shall be required to be prepaid pursuant to this
                    clause (ii) to the extent the prepayment of such amount would result in
                    Borrowing Availability for the 30-day period preceding such asset disposition
                    to be less than $5,000,000. Any such prepayment shall be applied in accordance
                    with Section 1.3(c).

                    
                                                               
                    (iii)         If
                    Holdings or Borrower issues Stock, no later than the Business Day following the
                    date of receipt of the proceeds thereof, Borrower shall prepay the Loans in an
                    amount equal to all such proceeds, net of underwriting discounts and
                    commissions and other reasonable costs paid to non-Affiliates in connection
                    therewith. Any such prepayment shall be applied in accordance with Section
                    1.3(c). Notwithstanding the foregoing, no prepayments of the Loans shall be
                    required if the proceeds from Holdings’ or Borrower’s issuance of
                    Stock shall be used for the purposes permitted by Sections 6.3(b)(iii),
                    6.3(b)(iv), 6.14(f) or 6.14(g)..

                    
                                                                
                    (iv)         Until
                    the Termination Date, Borrower shall prepay the Obligations on the date that is
                    10 days after the earlier of (A) the date on which Borrower’s annual
                    audited Financial Statements for the immediately preceding Fiscal Year are
                    delivered pursuant to Annex E  or (B) the date on which such annual
                    audited Financial Statements were required to be delivered pursuant to Annex
                    E in an amount equal to seventy-five percent (75%) of Excess Cash Flow for
                    the immediately preceding Fiscal Year; provided that, Borrower shall
                    make such payment on such date only to the extent that Borrowing Availability
                    for the 30-day period preceding the end of each first Fiscal Quarter in any
                    year exceeds $4,000,000, with any remaining amount being paid ten (10) days
                    after the end of each fiscal month thereafter to the extent Borrowing
                    Availability for the 30-day period preceding the end of such fiscal month
                    exceeds $4,000,000 until paid in full. To the extent that Borrower does not
                    have sufficient Borrowing Availability to both make the prepayments required by
                    this clause and the prepayments required by Section 1.3(b)(i) of the
                    Second Lien Credit Agreement, Borrower shall split its prepayments seventy-five
                    percent (75%) to the Obligations and twenty-five percent (25%) to the Second
                    Lien Indebtedness. Any prepayments from Excess Cash Flow paid pursuant to this
                    clause (iv) shall be applied in accordance with Section 1.3(c). Each such
                    prepayment shall be accompanied by a certificate signed by Borrower’s
                    chief financial officer

                

        	
                    

                    
                    -6-

                    

                

        

        

        	
                    certifying the manner in
                    which Excess Cash Flow and the resulting prepayment were calculated, which
                    certificate shall be in form and substance satisfactory to Agent.

                    
                                                                    
                    (v)         Immediately
                    upon receipt by any Credit Party of proceeds of Indebtedness from Monroe
                    Capital in connection with the Second Lien Credit Agreement, Borrower shall
                    prepay the Loans and outstanding Obligations as follows: first,
                    $14,000,000 of such proceeds shall be used to prepay the entire outstanding
                    principal amount of the Term Loan B (as defined in the Existing Credit
                    Agreement); second, $2,000,000 of such proceeds shall be used to prepay
                    the outstanding principal balance of the Revolving Credit Advances (which
                    payment shall permanently reduce the Revolving Loan Commitment on a
                    dollar-for-dollar basis leaving a Revolving Loan Commitment of $45,000,000 as
                    of the Closing Date); and third, $3,500,000 of such remaining proceeds
                    shall be used to prepay the outstanding principal balance of the Revolving
                    Credit Advances (which payment shall not permanently reduce the Revolving Loan
                    Commitment on a dollar-for-dollar basis) with the remaining $2,000,000 used by
                    Borrower to cash collateralize the Montvale Letter of Credit.

                    
                                                    
                    (c)            
                    Application of Certain Mandatory Prepayments. Any prepayments made by
                    Borrower pursuant to Sections 1.3(b)(ii), (b)(iii), or (b)(iv) above
                    shall be applied as follows: first, to Fees and reimbursable expenses of
                    Agent then due and payable pursuant to any of the Loan Documents;
                    second, to interest then due and payable on the Swing Line Loan;
                    third, to the principal balance of the Swing Line Loan until the same
                    has been repaid in full; fourth, to interest then due and payable on the
                    Revolving Credit Advances; fifth, to t he outstanding principal balance
                    of Revolving Credit Advances until the same has been paid in full; and
                    sixth, to any Letter of Credit Obligations, to provide cash collateral
                    therefor in the manner set forth in Annex B, until all such Letter of
                    Credit Obligations have been fully cash collateralized in the manner set forth
                    in Annex B. The Revolving Loan Commitment and the Swing Line Commitment
                    shall be permanently reduced by the amount of all prepayments made by Borrower
                    pursuant to Section 1.3(b)(ii) and Section 1.3(b)(iv). Neither
                    the Revolving Loan Commitment nor the Swing Line Commitment shall be
                    permanently reduced by the amount of any prepayments made by Borrower pursuant
                    to Sections 1.3(b)(iii).

                    
                                                    
                    (d)           
                    Application of Prepayments from Insurance Proceeds and Condemnation
                    Proceeds. Prepayments from insurance or condemnation proceeds in accordance
                    with Section 5.4(c)  and the Mortgage(s), respectively,
                    shall be applied as follows: insurance proceeds from casualties or losses to
                    cash, Inventory or Equipment, Fixtures and Real Estate (other than the Montvale
                    Property) shall be applied first, to the Swing Line Loans and, second, to the
                    Revolving Credit Advances. Neither the Revolving Loan Commitment nor the Swing
                    Line Loan Commitment shall be permanently reduced by the amount of any such
                    prepayments. If the precise amount of insurance or condemnation proceeds
                    allocable to Inventory as compared to Equipment, Fixtures and Real Estate are
                    not otherwise determined, the allocation and application of those proceeds
                    shall be determined by Agent, subject to the approval of Requisite
                    Lenders.

                    
                                                    
                    (e)            
                    No Implied Consent. Nothing in this Section 1.3 shall be
                    construed to constitute Agent’s or any Lender’s consent to any
                    transaction that is not permitted by other provisions of this Agreement or the
                    other Loan Documents.

                

        	
                    

                    
                    -7-

                    

                

        

        

        	
                                 
                1.4           
                Use of Proceeds. Borrower shall utilize the proceeds of the Revolving Loan and
                the Swing Line Loan for the financing of Borrower’s ordinary working capital
                and general corporate needs. Disclosure Schedule 1.4 contains a description
                of Borrower’s sources and uses of funds as of the Original Closing Date,
                including Loans and Letter of Credit Obligations to be made or incurred on that
                date, and a funds flow memorandum detailing how funds from each source are to be
                transferred to particular uses; provided, however, that in connection
                with the simultaneous closing of this Agreement and the Second Lien Credit
                Agreement, Borrower shall use all proceeds resulting therefrom in accordance with
                Disclosure Schedule 1.4 of the Second Lien Credit Agreement.
	 

        	
                                 
                1.5           
                Interest and Applicable Margins.
	
                	 

        	
                                                
                (a)       Borrower
                shall pay interest to Agent, for the ratable benefit of Lenders in accordance with
                the various Loans being made by each Lender, in arrears on each applicable Interest
                Payment Date, at the following rates: (i) with respect to Revolving Credit
                Advances, as determined by Agent, the Index Rate plus the Applicable Revolver Index
                Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus
                the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving
                Credit Advances outstanding from time to time; and (ii) with respect to the Swing
                Line Loan, as determined by Agent, the Index Rate plus the Applicable Revolver
                Index Margin per annum.

        	 	 	 
	  	The Applicable
                Margins are as follows: 	  
	  	  	  	  
	  	  	Applicable Revolver Index
                Margin	1.5%
	  	  	  	  
	  	  	Applicable Revolver LIBOR
                Margin	3.0%
	  	  	  	  
	  	  	Applicable Commercial Paper
                Margin	3.0%

        	 
	
                                                
                The Applicable Revolver LIBOR
                Margin shall be adjusted (up or down) prospectively on a quarterly basis as
                determined by Borrower’s consolidated financial performance, commencing as of
                the date hereof. Adjustments in the Applicable Revolver LIBOR Margin will be made
                only if Borrower’s Tangible Net Worth equals or exceeds $38,000,000.00 and
                will be determined by reference to the following grids based upon the four Fiscal
                Quarters then ended:
	 

        	If Fixed
                Charge

                Coverage Ratio is:	 	If Minimum
                Excess

                Availability is Greater Than:	 	Level of

                Applicable Margins:	 
	
                    

                	 	
                    

                	 	
                    

                	 
	2.5X or greater	 
                	 	
                8	 
                	Level
                I	 
                
	>2.25x, but <
                2.5x	  	 	
                5.2	  	Level II	  
	>2.0x, but <
                2.25x	  	 	
                4.7	  	Level III	  
	>1.5x, but <
                2.0x	  	 	
                4.7	  	Level IV	  
	>1.3x, but <
                1.5x	  	 	
                4.7	  	Level V	  
	>1.1x, but <
                1.3x	  	 	
                4.7	  	Level VI	  
	>1.0x, but <
                1.1x	  	 	
                4.7	  	Level VII	  
	
                                 
                < 1.0x	  	 	
                4.7	  	Level VIII	  

        	
                    

                    
                    -8-

                    

                

        

        

        	 	
                Applicable Margins	 
	 	
                    

                	 
	
                	Level I	 	Level II	 	Level III	 	Level IV	 	Level V	 	Level VI	 	Level VII	 	Level VIII	 
	 	
                    

                	 	
                    

                	 	
                    

                	 	
                    

                	 	
                    

                	 	
                    

                	 	
                    

                	 	
                    

                	 
	Applicable
                Revolver

                LIBOR Margin	 	
                1.50	
                %	 	
                1.75	
                %	 	
                2.00	
                %	 	
                2.25	
                %	 	
                2.50	
                %	 	
                2.75	
                %	 	
                3.00	
                %	 	
                3.25	%

        	 
	If there is a
                disparity between the financial tests described above, the test resulting in the
                greater level of Applicable Margins will prevail.
	 
	
                                                
                All adjustments in the
                Applicable Margins after the first adjustment shall be implemented quarterly on a
                prospective basis, for each calendar month commencing at least 5 days after the
                date of delivery to Lenders of the quarterly unaudited or annual audited (as
                applicable) Financial Statements evidencing the need for an adjustment.
                Concurrently with the delivery of those Financial Statements, Borrower shall
                deliver to Agent and Lenders a certificate, signed by its chief financial officer,
                setting forth in reasonable detail the basis for the continuance of, or any change
                in, the Applicable Margins. Failure to timely deliver such Financial Statements
                shall, in addition to any other remedy provided for in this Agreement, result in an
                increase in the Applicable Margins to the highest level set forth in the foregoing
                grid, until the first day of the first calendar month following the delivery of
                those Financial Statements demonstrating that such an increase is not required. If
                a Default or an Event of Default has occurred and is continuing at the time any
                reduction in the Applicable Margins is to be implemented, that reduction shall be
                deferred until the first day of the first calendar month following the date on
                which such Default or Event of Default is waived or cured.
	 
	
                                                
                (b)            
                If any payment on any Loan becomes due and payable on a day other than a Business
                Day, the maturity thereof will be extended to the next succeeding Business Day
                (except as set forth in the definition of LIBOR Period) and, with respect to
                payments of principal, interest thereon shall be payable at the then applicable
                rate during such extension.
	 
	
                                                
                (c)            
                All computations of Fees calculated on a per annum basis and interest shall be made
                by Agent on the basis of a 360-day year, in each case for the actual number of days
                occurring in the period for which such interest and Fees are payable. The Index
                Rate is a floating rate determined for each day. Each determination by Agent of an
                interest rate and Fees hereunder shall be final, binding and conclusive on
                Borrower, absent manifest error.
	 
	
                                                
                (d)            
                So long as an Event of Default has occurred and is continuing, the interest rates
                applicable to the Loans and the Letter of Credit Fees shall be increased by two
                percentage points (2%) per annum above the rates of interest or the rate of such
                Fees otherwise applicable hereunder (“Default Rate”), and all
                outstanding Obligations shall bear interest at the Default Rate applicable to such
                Obligations. Interest and Letter of Credit Fees at the Default Rate shall accrue
                from the initial date of such Event of Default until that Event of Default is cured
                or waived and shall be payable upon demand.
	 
	
                                                
                (e)            
                Subject to the last sentence of this Section 1.5(e) and the conditions
                precedent set forth in Section 2.2, Borrower shall have the option to (i)
                request that any Revolving Credit Advance be made as a LIBOR Loan, (ii) convert at
                any time all or any part of outstanding Loans (other than the Swing Line Loan) from
                Index Rate Loans to LIBOR Loans, (iii) convert any LIBOR Loan to an Index Rate
                Loan, subject to payment of LIBOR breakage

        	
                    

                    
                    -9-

                    

                

        

        

        	
                    costs in accordance with
                    Section 1.13(b) if such conversion is made prior to the expiration of
                    the LIBOR Period applicable thereto, or (iv) continue all or any portion of any
                    Loan (other than the Swing Line Loan) as a LIBOR Loan upon the expiration of
                    the applicable LIBOR Period and the succeeding LIBOR Period of that continued
                    Loan shall commence on the first day after the last day of the LIBOR Period of
                    the Loan to be continued. Any Loan or group of Loans having the same proposed
                    LIBOR Period to be made or continued as, or converted into, a LIBOR Loan must
                    be in a minimum amount of $5,000,000 and integral multiples of $500,000 in
                    excess of such amount. Any such election must be made by 12:00 p.m. (New York
                    time) on the 3rd Business Day prior to (1) the date of any proposed Advance
                    which is to bear interest at the LIBOR Rate, (2) the end of each LIBOR Period
                    with respect to any LIBOR Loans to be continued as such, or (3) the date on
                    which Borrower wishes to convert any Index Rate Loan to a LIBOR Loan for a
                    LIBOR Period designated by Borrower in such election. If no election is
                    received with respect to a LIBOR Loan by 12:00 p.m. (New York time) on the 3rd
                    Business Day prior to the end of the LIBOR Period with respect thereto (or if a
                    Default or an Event of Default has occurred and is continuing or the additional
                    conditions precedent set forth in Section 2.2 shall not have been
                    satisfied), that LIBOR Loan shall be converted to an Index Rate Loan at the end
                    of its LIBOR Period. Borrower must make such election by notice to Agent in
                    writing, by telecopy or overnight courier. In the case of any conversion or
                    continuation, such election must be made pursuant to a written notice (a
                    “Notice of Conversion/Continuation”) in the form of
                    Exhibit 1.5(e).

                    
                                                    
                    (f)        Notwithstanding
                    anything to the contrary set forth in this Section 1.5, if a court of
                    competent jurisdiction determines in a final order that the rate of interest
                    payable hereunder exceeds the highest rate of interest permissible under law
                    (the “Maximum Lawful Rate”), then so long as the Maximum
                    Lawful Rate would be so exceeded, the rate of interest payable hereunder shall
                    be equal to the Maximum Lawful Rate; provided, however, that if
                    at any time thereafter the rate of interest payable hereunder is less than the
                    Maximum Lawful Rate, Borrower shall continue to pay interest hereunder at the
                    Maximum Lawful Rate until such time as the total interest received by Agent, on
                    behalf of Lenders, is equal to the total interest that would have been received
                    had the interest rate payable hereunder been (but for the operation of this
                    paragraph) the interest rate payable since the Original Closing Date as
                    otherwise provided in this Agreement. Thereafter, interest hereunder shall be
                    paid at the rate(s) of interest and in the manner provided in Sections
                    1.5(a) through (e), unless and until the rate of interest again exceeds the
                    Maximum Lawful Rate, and at that time this paragraph shall again apply. In no
                    event shall the total interest received by any Lender pursuant to the terms
                    hereof exceed the amount that such Lender could lawfully have received had the
                    interest due hereunder been calculated for the full term hereof at the Maximum
                    Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this
                    paragraph, such interest shall be calculated at a daily rate equal to the
                    Maximum Lawful Rate divided by the number of days in the year in which such
                    calculation is made. If, notwithstanding the provisions of this Section
                    1.5(f), a court of competent jurisdiction shall finally determine that a
                    Lender has received interest hereunder in excess of the Maximum Lawful Rate,
                    Agent shall, to the extent permitted by applicable law, promptly apply such
                    excess in the order specified in Section 1.11 and thereafter shall
                    refund any excess to Borrower or as a court of competent jurisdiction may
                    otherwise order.

                
	 
                

        	
                                 
                1.6           
                Eligible Accounts. All of the Accounts owned by Borrower and reflected in
                the most recent Borrowing Base Certificate delivered by Borrower to Agent shall be
                “Eligible

        	
                    

                    
                    -10-

                    

                

        

        

        	
                    Accounts”
                    for purposes of this Agreement, except any Account to which any of the
                    exclusionary criteria set forth below applies. Agent shall have the right to
                    establish, modify or eliminate Reserves against Eligible Accounts from time to
                    time in its reasonable credit judgment. In addition, Agent reserves the right,
                    at any time and from time to time after the Original Closing Date, to adjust
                    any of the criteria set forth below, to establish new criteria and to adjust
                    advance rates with respect to Eligible Accounts and/or Eligible Pending
                    Accounts Receivable and Fixed Contract Accounts Receivable, in its reasonable
                    credit judgment, subject to the approval of Supermajority Revolving Lenders in
                    the case of adjustments, new criteria, changes in advance rates or the
                    elimination of Reserves which have the effect of making more credit available.
                    Eligible Accounts shall not include any Account of Borrower:

                    
                                                    
                    (a)            
                    that does not arise from the sale of goods or the performance of services by
                    Borrower in the ordinary course of its business;

                    
                                                    
                    (b)           
                    (i) upon which Borrower’s right to receive payment is not absolute or is
                    contingent upon the fulfillment of any condition whatsoever or (ii) as to which
                    Borrower is not able to bring suit or otherwise enforce its remedies against
                    the Account Debtor through judicial process, or (iii) if the Account represents
                    a progress billing consisting of an invoice for goods sold or used or services
                    rendered pursuant to a contract under which the Account Debtor’s
                    obligation to pay that invoice is subject to Borrower’s completion of
                    further performance under such contract or is subject to the equitable lien of
                    a surety bond issuer;

                    
                                                    
                    (c)            
                    to the extent that any defense, counterclaim, setoff or dispute is asserted as
                    to such Account;

                    
                                                    
                    (d)           
                    that is not a true and correct statement of bona fide indebtedness incurred in
                    the amount of the Account for merchandise sold to or services rendered and
                    accepted by the applicable Account Debtor;

                    
                                                    
                    (e)            
                    with respect to which an invoice, reasonably acceptable to Agent in form and
                    substance, has not been sent to the applicable Account Debtor;

                    
                                                    
                    (f)             
                    that (i) is not owned by Borrower or (ii) is subject to any right, claim,
                    security interest or other interest of any other Person, other than Liens in
                    favor of Agent, on behalf of itself and Lenders;

                    
                                                    
                    (g)           
                    that arises from a sale to any director, officer, other employee or Affiliate
                    of any Credit Party, or to any entity that has any common officer or director
                    with any Credit Party;

                    
                                                    
                    (h)           
                    that is the obligation of an Account Debtor that is the United States
                    government or a political subdivision thereof, or any state, county or
                    municipality or department, agency or instrumentality thereof unless Agent, in
                    its sole discretion, has agreed to the contrary in writing and Borrower, if
                    necessary or desirable, has complied with respect to such obligation with the
                    Federal Assignment of Claims Act of 1940, or any applicable state, county or
                    municipal law restricting the assignment thereof with respect to such
                    obligation; it being understood that the University of California shall be an
                    eligible Account Debtor notwithstanding this clause (h);

                

        	
                    

                    
                    -11-

                    

                

        

        

        	
                                           
                    
                (i)        that
                is the obligation of an Account Debtor located in a foreign country;
	 
	
                                           
                    
                (j)        to
                the extent Borrower or any Subsidiary thereof is liable for goods sold or services
                rendered by the applicable Account Debtor to Borrower or any Subsidiary thereof but
                only to the extent of the potential offset;

        	 
                
	
                    
                                                    
                    (k)       that
                    arises with respect to goods that are delivered on a bill-and-hold,
                    cash-on-delivery basis or placed on consignment, guaranteed sale or other terms
                    by reason of which the payment by the Account Debtor is or may be
                    conditional;

                
	 
                

        	
                                                
                (l)        that
                is in default; provided, that, without limiting the generality of the
                foregoing, an Account shall be deemed in default upon the occurrence of any of the
                following:
	 
	
                                                            
                (i)         the
                Account is not paid within the earlier of: 60 days following its due date except
                for Extended Accounts for which such time period shall be one hundred twenty (120)
                days from the date set forth on the original invoice (the amount of any such
                Accounts excluded shall be the gross amount before the application of any
                credits);

        	 
                
	
                    
                                                               
                    (ii)         the
                    Account Debtor obligated upon such Account suspends business, makes a general
                    assignment for the benefit of creditors or fails to pay its debts generally as
                    they come due; or

                
	 
                

        	
                                                           
                (iii)         a
                petition is filed by or against any Account Debtor obligated upon such Account
                under any bankruptcy law or any other federal, state or foreign (including any
                provincial) receivership, insolvency relief or other law or laws for the relief of
                debtors;
	 
	
                                                
                (m)       that
                is the obligation of an Account Debtor if 50% or more of the Dollar amount of all
                Accounts owing by that Account Debtor are ineligible under the other criteria set
                forth in this Section 1.6;
	 
	
                                                
                (n)       as
                to which Agent’s Lien thereon, on behalf of itself and Lenders, is not a
                first priority perfected Lien;

        	 
                
	
                    
                                                    
                    (o)       as
                    to which any of the representations or warranties in the Loan Documents are
                    untrue;

                
	 
                

        	
                                                
                (p)       to
                the extent such Account is evidenced by a judgment, Instrument or Chattel
                Paper;
	 
	
                                                
                (q)       to
                the extent such Account exceeds any credit limit established by Agent, in its
                reasonable credit judgment;
	 
	
                                                
                (r)       to
                the extent that such Account, together with all other Accounts owing to such
                Account Debtor and its Affiliates as of any date of determination exceed 10% of all
                Eligible Accounts;
	 
	
                                                
                (s)       that
                is payable in any currency other than Dollars;

        	
                    

                    
                    -12-

                    

                

        

        

        	
                                                
                (t)        that
                is an undue credit risk or is otherwise unacceptable to Agent in its reasonable
                credit judgment;
	 
	
                                                
                (u)       that
                does not reflect all credits for the particular Account Debtor as shown on the
                schedule setting forth the aging submitted by the Borrower as required in the
                Agreement.
	 
	
                                                
                (v)       that
                arises from a sale to an Account Debtor which is an inventory or trade supplier of
                the Borrower;
	 
	
                                                
                (w)      to
                which an Account Debtor has objected to the quality or quantity of goods or
                services of the Borrower sold, or shall have rejected, returned, or refused to
                accept such goods or services; or
	 
	
                                                
                (x)       that
                is an Account which contravenes, or arises from a sale which contravenes, any
                requirement of law applicable thereto.
	 
	
                                                
                (y)       that
                does not reflect all credits for the particular Account Debtor as shown on the
                schedule setting forth the aging submitted by the Borrower as required in this
                Agreement.

        	 
                
	
                    
                                     
                    1.7        
                     Eligible Pending Accounts Receivable and Fixed Contract Accounts
                    Receivable. All of the pending accounts receivable and fixed contract
                    accounts receivable owned by Borrower and reflected in the most recent
                    Borrowing Base Certificate delivered by Borrower to Agent shall be
                    “Eligible Pending Accounts Receivable and Fixed Contract Accounts
                    Receivable” to the extent that it is earned revenue for which the unit
                    work has been completed by the Borrower and not yet invoiced to the Account
                    Debtor not more than thirty days past the date such work became billable (less
                    all finance charges, late fee and other fees which are unearned), arising from
                    the sale of goods or rendering of services by the Borrower in the ordinary
                    course of its business, which conforms to the representations and warranties
                    set forth in this Agreement and the Security Agreement, and which Agent, in its
                    sole and absolute discretion, shall deem appropriate. Without in any way
                    limiting the discretion of Agent to deem an Account eligible or ineligible,
                    Agent does not currently intend to treat any of the foregoing Accounts as an
                    Eligible Pending Account Receivable and Fixed Contract Accounts Receivable if
                    it meets any of the criteria set forth in clauses (a) through (x) under the
                    definition of “Eligible Accounts”. The Borrower has represented to
                    Agent that invoicing to the customer is normally pending the receipt and
                    processing of supporting documentation or as required per client billing
                    terms.

                    
                                     
                    1.8        
                     Cash Management Systems. Borrower will maintain until the
                    Termination Date, the cash management systems described in Annex C (the
                    “Cash Management Systems”).

                
	 
                

        	
                                 
                
                1.9
                        
                  Fees.
	 
	
                                                
                (a)            
                Borrower shall pay to GE Capital, individually, the Fees specified in that certain
                fee letter, dated the Original Closing Date, between Borrower and GE Capital (the
                “GE Capital Fee Letter”), at the times specified for
                payment therein.
	 
	
                                                
                (b)           
                As additional compensation for the Revolving Lenders, Borrower shall pay to Agent,
                for the ratable benefit of such Lenders, in arrears, on the first Business Day of
                each month prior to the Commitment Termination Date and on the Commitment
                Termination Date, a

        	
                    

                    
                    -13-

                    

                

        

        

        	
                    Fee for Borrower’s
                    non-use of available funds in an amount equal to one half of one percent (1/2%)
                    per annum (calculated on the basis of a 360 day year for actual days elapsed)
                    multiplied by the difference between (x) the Maximum Amount (as it may be
                    reduced from time to time) and (y) the average for the period of the daily
                    closing balances of the Revolving Loan and the Swing Line Loan outstanding
                    during the period for which the such Fee is due.

                    
                                                      
                    (c)       Borrower
                    shall pay to Agent, for the ratable benefit of Revolving Lenders, the Letter of
                    Credit Fee as provided in Annex B.

                    
                                     
                    1.10        
                     Receipt of Payments. Borrower shall make each payment under this
                    Agreement not later than 2:00 p.m. (New York time) on the day when due in
                    immediately available funds in Dollars to the Collection Account. For purposes
                    of computing interest and Fees and determining Borrowing Availability as of any
                    date, all payments shall be deemed received on the First Business Day following
                    the Business Day on which immediately available funds therefor are received in
                    the Collection Account prior to 2:00 p.m. New York time. Payments received
                    after 2:00 p.m. New York time on any Business Day or on a day that is not a
                    Business Day shall be deemed to have been received on the following Business
                    Day.

                
	 
                

        	
                                 
                1.11        
                 Application and Allocation of Payments.

        	 
                
	
                    
                                                      
                    (a)            
                    So long as no Default or Event of Default has occurred and is continuing, (i)
                    payments consisting of proceeds of Accounts received in the ordinary course of
                    business shall be applied, first, to the Swing Line Loan and, second, to the
                    Revolving Loan; (ii) payments matching specific scheduled payments then due
                    shall be applied to those scheduled payments; (iii) voluntary prepayments shall
                    be applied as determined by Borrower, subject to the provisions of Section
                    1.3(a); and (iv) mandatory prepayments shall be applied as set forth in
                    Sections 1.3(c) and 1.3(d). All payments and prepayments applied
                    to a particular Loan shall be applied ratably to the portion thereof held by
                    each Lender as determined by its Pro Rata Share. As to any other payment, and
                    as to all payments made when a Default or Event or Default has occurred and is
                    continuing or following the Commitment Termination Date, Borrower hereby
                    irrevocably waives the right to direct the application of any and all payments
                    received from or on behalf of Borrower, and Borrower hereby irrevocably agrees
                    that Agent shall have the continuing exclusive right to apply any and all such
                    payments against the Obligations as Agent may deem advisable notwithstanding
                    any previous entry by Agent in the Loan Account or any other books and records.
                    In the absence of a specific determination by Agent with respect thereto,
                    payments shall be applied to amounts then due and payable in the following
                    order: (1) to Fees and Agent’s expenses reimbursable hereunder; (2) to
                    interest on the Swing Line Loan; (3) to principal payments on the Swing Line
                    Loan; (4) to interest on the other Loans, ratably in proportion to the interest
                    accrued as to each Loan; (5) to principal payments on the other Loans and to
                    provide cash collateral for Letter of Credit Obligations in the manner
                    described in Annex B, ratably to the aggregate, combined principal
                    balance of the other Loans and outstanding Letter of Credit Obligations; and
                    (6) to all other Obligations including expenses of Lenders to the extent
                    reimbursable under Section 11.3; provided, however, that
                    mandatory prepayments as described in Section 1.3(b)(v) shall be applied
                    in the manner set forth therein.

                    
                                                      
                    (b)            
                    Agent is authorized to, and at its sole election may, charge to the Revolving
                    Loan balance on behalf of Borrower and cause to be paid all Fees, expenses,
                    Charges,

                

        	
                    

                    
                    -14-

                    

                

        

        

        	costs
                (including insurance premiums in accordance with Section 5.4(a)) and
                interest and principal, other than principal of the Revolving Loan, owing by
                Borrower under this Agreement or any of the other Loan Documents if and to the
                extent Borrower fails to pay promptly any such amounts as and when due, even if the
                amount of such charges would exceed Borrowing Availability at such time. At
                Agent’s option and to the extent permitted by law, any charges so made shall
                constitute part of the Revolving Loan hereunder.

        	 
                
	
                    
                                     
                    1.12        
                     Loan Account and Accounting. Agent shall maintain a loan account
                    (the “Loan Account”) on its books to record: all Advances,
                    all payments made by Borrower, and all other debits and credits as provided in
                    this Agreement with respect to the Loans or any other Obligations. All entries
                    in the Loan Account shall be made in accordance with Agent’s customary
                    accounting practices as in effect from time to time. The balance in the Loan
                    Account, as recorded on Agent’s most recent printout or other written
                    statement, shall, absent manifest error, be presumptive evidence of the amounts
                    due and owing to Agent and Lenders by Borrower; provided that any
                    failure to so record or any error in so recording shall not limit or otherwise
                    affect Borrower’s duty to pay the Obligations. Agent shall render to
                    Borrower a monthly accounting of transactions with respect to the Loans setting
                    forth the balance of the Loan Account for the immediately preceding month.
                    Unless Borrower notifies Agent in writing of any objection to any such
                    accounting (specifically describing the basis for such objection), within 30
                    days after the date thereof, each and every such accounting shall, absent
                    manifest error, be deemed final, binding and conclusive on Borrower in all
                    respects as to all matters reflected therein. Only those items expressly
                    objected to in such notice shall be deemed to be disputed by Borrower.
                    Notwithstanding any provision herein contained to the contrary, any Lender may
                    elect (which election may be revoked) to dispense with the issuance of Notes to
                    that Lender and may rely on the Loan Account as evidence of the amount of
                    Obligations from time to time owing to it.

                
	 
                

        	
                                 
                 
                1.13        
                 Indemnity.

        	 
                
	
                    
                                                      
                    (a)       Each
                    Credit Party that is a signatory hereto shall jointly and severally indemnify
                    and hold harmless each of Agent, Lenders and their respective Affiliates, and
                    each such Person’s respective officers, directors, employees, attorneys,
                    agents and representatives (each, an “Indemnified Person”),
                    from and against any and all suits, actions, proceedings, claims, damages,
                    losses, liabilities and expenses (including reasonable attorneys’ fees
                    and disbursements and other costs of investigation or defense, including those
                    incurred upon any appeal) that may be instituted or asserted against or
                    incurred by any such Indemnified Person as the result of credit having been
                    extended, suspended or terminated under this Agreement and the other Loan
                    Documents and the administration of such credit, and in connection with or
                    arising out of the transactions contemplated hereunder and thereunder and any
                    actions or failures to act in connection therewith, including any and all
                    Environmental Liabilities and legal costs and expenses arising out of or
                    incurred in connection with disputes between or among any parties
                    to any of the Loan Documents (collectively, “Indemnified
                    Liabilities”); provided, that no such Credit Party shall be
                    liable for any indemnification to an Indemnified Person to the extent that any
                    such suit, action, proceeding, claim, damage, loss, liability or expense
                    results from that Indemnified Person’s gross negligence or willful
                    misconduct. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER
                    PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY
                    OF

                

        	
                    

                    
                    -15-

                    

                

        

        

        	
                    SUCH PERSON OR ANY OTHER
                    PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT,
                    PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT
                    OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT
                    OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR
                    THEREUNDER.

                

        	 
                
	
                    
                                                    
                     
                    (b)       To
                    induce Lenders to provide the LIBOR Rate option on the terms
                    provided herein, if (i) any
                    LIBOR Loans are repaid in whole or in part prior to the last day of any
                    applicable LIBOR Period (whether that repayment is made pursuant to any
                    provision of this Agreement or any other Loan Document or occurs as a result of
                    acceleration, by operation of law or otherwise); (ii) Borrower shall default in
                    payment when due of the principal amount of or interest on any LIBOR Loan;
                    (iii) Borrower shall refuse to accept any borrowing of, or shall request a
                    termination of any borrowing, conversion into or continuation of LIBOR Loans
                    after Borrower has given notice requesting the same in accordance herewith; or
                    (iv) Borrower shall fail to make any prepayment of a LIBOR Loan after Borrower
                    has given a notice thereof in accordance herewith, then Borrower shall
                    indemnify and hold harmless each Lender from and against all losses, costs and
                    expenses resulting from or arising from any of the foregoing. Such
                    indemnification shall include any loss (including loss of margin) or expense
                    arising from the reemployment of funds obtained by it or from fees payable to
                    terminate deposits from which such funds were obtained. For the purpose of
                    calculating amounts payable to a Lender under this subsection, each Lender
                    shall be deemed to have actually funded its relevant LIBOR Loan through the
                    purchase of a deposit bearing interest at the LIBOR Rate in an amount equal to
                    the amount of that LIBOR Loan and having a maturity comparable to the relevant
                    LIBOR Period; provided, that each Lender may fund each of its LIBOR
                    Loans in any manner it sees fit, and the foregoing assumption shall be utilized
                    only for the calculation of amounts payable under this subsection. This
                    covenant shall survive the termination of this Agreement and the payment of the
                    Notes and all other amounts payable hereunder. As promptly as practicable under
                    the circumstances, each Lender shall provide Borrower with its written
                    calculation of all amounts payable pursuant to this Section 1.13(b), and
                    such calculation shall be binding on the parties hereto unless Borrower shall
                    object in writing within 10 Business Days of receipt thereof, specifying the
                    basis for such objection in detail.

                    
                                     
                    1.14        
                     Access. Each Credit Party that is a party hereto shall, during
                    normal business hours, from time to time upon 1 Business Day’s prior
                    notice as frequently as Agent determines to be appropriate: (a) provide Agent
                    and any of its officers, employees and agents access to its properties,
                    facilities, advisors and employees (including officers) of each Credit Party
                    and to the Collateral, (b) permit Agent, and any of its officers, employees and
                    agents, to inspect, audit and make extracts from any Credit Party’s books
                    and records, and (c) permit Agent, and its officers, employees and agents, to
                    inspect, review, evaluate and make test verifications and counts of the
                    Accounts, Inventory and other Collateral of any Credit Party. If a Default or
                    Event of Default has occurred and is continuing or if access is necessary to
                    preserve or protect the Collateral as determined by the Agent, each such Credit
                    Party shall provide such access to Agent and to each Lender at all times and
                    without advance notice. Furthermore, so long as any Event of Default has
                    occurred and is continuing, Borrower shall provide Agent and each Lender with
                    access to its suppliers and customers. Each Credit Party shall make available
                    to Agent and its counsel, as quickly as is possible under the circumstances,
                    originals or copies of all books and records that

                

        	
                    

                    
                    -16-

                    

                

        

        

        	Agent may
                reasonably request. Each Credit Party shall deliver any document or instrument
                necessary for Agent, as it may from time to time request, to obtain records from
                any service bureau or other Person that maintains records for such Credit Party,
                and shall maintain duplicate records or supporting documentation on media,
                including computer tapes and discs owned by such Credit Party. Agent will give
                Lenders at least 5 days’ prior written notice of regularly scheduled audits.
                Representatives of other Lenders may accompany Agent’s representatives on
                regularly scheduled audits at no charge to Borrower.
	 

        	
                                 
                1.15        
                 Taxes.
	 
                
	
                    
                                                    
                    (a)            
                    Any and all payments by Borrower hereunder or under the Notes shall be made, in
                    accordance with this Section 1.15, free and clear of and without
                    deduction for any and all present or future Taxes. If Borrower shall be
                    required by law to deduct any Taxes from or in respect of any sum payable
                    hereunder or under the Notes, (i) the sum payable shall be increased as much as
                    shall be necessary so that after making all required deductions (including
                    deductions applicable to additional sums payable under this Section
                    1.15) Agent or Lenders, as applicable, receive an amount equal to the sum
                    they would have received had no such deductions been made, (ii) Borrower shall
                    make such deductions, and (iii) Borrower shall pay the full amount deducted to
                    the relevant taxing or other authority in accordance with applicable law.
                    Within 30 days after the date of any payment of Taxes, Borrower shall furnish
                    to Agent the original or a certified copy of a receipt evidencing payment
                    thereof. Agent and Lenders shall not be obligated to return or refund any
                    amounts received pursuant to this Section.

                    
                                                    
                    (b)           
                    Each Credit Party that is a signatory hereto shall indemnify and, within 10
                    days of demand therefor, pay Agent and each Lender for the full amount of Taxes
                    (including any Taxes imposed by any jurisdiction on amounts payable under this
                    Section 1.15) paid by Agent or such Lender, as appropriate, and any
                    liability (including penalties, interest and expenses) arising therefrom or
                    with respect thereto, whether or not such Taxes were correctly or legally
                    asserted.

                    
                                                    
                    (c)            
                    Each Lender organized under the laws of a jurisdiction outside the United
                    States (a “Foreign Lender”) as to which payments to be made
                    under this Agreement or under the Notes are exempt from United States
                    withholding tax under an applicable statute or tax treaty shall provide to
                    Borrower and Agent a properly completed and executed IRS Form W-8ECI or Form
                    W-8BEN or other applicable form, certificate or document prescribed by the IRS
                    or the United States certifying as to such Foreign Lender’s entitlement
                    to such exemption (a “Certificate of Exemption”). Any
                    foreign Person that seeks to become a Lender under this Agreement shall provide
                    a Certificate of Exemption to Borrower and Agent prior to becoming a Lender
                    hereunder. No foreign Person may become a Lender hereunder if such Person fails
                    to deliver a Certificate of Exemption in advance of becoming a
                    Lender.

                
	 
                

        	
                                 
                1.16          
                Capital Adequacy; Increased Costs; Illegality.
	 
	
                                                
                (a)       If
                any Lender shall have determined that any law, treaty, governmental (or
                quasi-governmental) rule, regulation, guideline or order regarding capital
                adequacy, reserve requirements or similar requirements or compliance by any Lender
                with any request or directive regarding capital adequacy, reserve requirements or
                similar requirements (whether or not having the force of law), in each case,
                adopted after the Original Closing Date, from any central bank or

        	
                    

                    
                    -17-

                    

                

        

        

        	
                    other Governmental
                    Authority increases or would have the effect of increasing the amount of
                    capital, reserves or other funds required to be maintained by such Lender and
                    thereby reducing the rate of return on such Lender’s capital as a
                    consequence of its obligations hereunder, then Borrower shall from time to time
                    upon demand by such Lender (with a copy of such demand to Agent) pay to Agent,
                    for the account of such Lender, additional amounts sufficient to compensate
                    such Lender for such reduction. A certificate as to the amount of that
                    reduction and showing the basis of the computation thereof submitted by such
                    Lender to Borrower and to Agent shall, absent manifest error, be final,
                    conclusive and binding for all purposes. Each Lender agrees that, as promptly
                    as practicable after it becomes aware of any circumstances referred to above
                    which would result in any such compensation to such Lender for such reduction,
                    the affected Lender shall, to the extent not inconsistent with such
                    Lender’s internal policies of general application, use reasonable
                    commercial efforts to minimize compensation payable to it by Borrower pursuant
                    to this Section 1.16(a).

                    
                                                    
                    (b)           
                    If, due to either (i) the introduction of or any change in any law or
                    regulation (or any change in the interpretation thereof) or (ii) the compliance
                    with any guideline or request from any central bank or other Governmental
                    Authority (whether or not having the force of law), in each case adopted after
                    the Original Closing Date, there shall be any increase in the cost to any
                    Lender of agreeing to make or making, funding or maintaining any Loan, then
                    Borrower shall from time to time, upon demand by such Lender (with a copy of
                    such demand to Agent), pay to Agent for the account of such Lender additional
                    amounts sufficient to compensatesuch Lender for such increased cost. A
                    certificate as to the amount of such increased cost, submitted to Borrower and
                    to Agent by such Lender, shall be conclusive and binding on Borrower for all
                    purposes, absent manifest error. Each Lender agrees that, as promptly as
                    practicable after it becomes aware of any circumstances referred to above which
                    would result in any such increased cost, the affected Lender shall, to the
                    extent not inconsistent with such Lender’s internal policies of general
                    application, use reasonable commercial efforts to minimize costs and expenses
                    incurred by it and payable to it by Borrower pursuant to this Section
                    1.16(b).

                    
                                                    
                    (c)            
                    Notwithstanding anything to the contrary contained herein, if the introduction
                    of or any change in any law or regulation (or any change in the interpretation
                    thereof) shall make it unlawful, or any central bank or other Governmental
                    Authority shall assert that it is unlawful, for any Lender to agree to make or
                    to make or to continue to fund or maintain any LIBOR Loan, then, unless that
                    Lender is able to make or to continue to fund or to maintain such LIBOR Loan at
                    another branch or office of that Lender without, in that Lender’s
                    opinion, adversely affecting it or its Loans or the income obtained therefrom,
                    on notice thereof and demand therefor by such Lender to Borrower through Agent,
                    (i) the obligation of such Lender to agree to make or to make or to continue to
                    fund or maintain LIBOR Loans shall terminate and (ii) Borrower shall forthwith
                    prepay in full all outstanding LIBOR Loans owing to such Lender, together with
                    interest accrued thereon, unless Borrower, within 5 Business Days after
                    the delivery of such notice and demand, converts all LIBOR Loans into Index
                    Rate Loans.

                    
                                                    
                    (d)           
                    Within 15 days after receipt by Borrower of written notice and demand from any
                    Lender (an “Affected Lender”) for payment of additional
                    amounts or increased costs as provided in Sections 1.15(a), 1.16(a) or
                    1.16(b), Borrower may, at its option, notify Agent and such Affected Lender
                    of its intention to replace the Affected Lender. So long as no Default or Event
                    of Default has occurred and is continuing, Borrower, with the consent of Agent,
                    may

                

        	
                    

                    
                    -18-

                    

                

        

        

        	
                    obtain, at
                    Borrower’s expense, a replacement Lender (“Replacement
                    Lender”) for the Affected Lender, which Replacement Lender must be
                    reasonably satisfactory to Agent. If Borrower obtains a Replacement Lender
                    within 90 days following notice of its intention to do so, the Affected Lender
                    must sell and assign its Loans and Commitments to such Replacement Lender for
                    an amount equal to the principal balance of all Loans held by the Affected
                    Lender and all accrued interest and Fees with respect thereto through the date
                    of such sale; provided, that Borrower shall have reimbursed such
                    Affected Lender for the additional amounts or increased costs that it is
                    entitled to receive under this Agreement through the date of such sale and
                    assignment. Notwithstanding the foregoing, Borrower shall not have the right to
                    obtain a Replacement Lender if the Affected Lender rescinds its demand for
                    increased costs or additional amounts within 15 days following its receipt of
                    Borrower’s notice of intention to replace such Affected Lender.
                    Furthermore, if Borrower gives a notice of intention to replace and does not so
                    replace such Affected Lender within 90 days thereafter, Borrower’s rights
                    under this Section 1.16(d)  shall terminate and Borrower shall
                    promptly pay all increased costs or additional amounts demanded by such
                    Affected Lender pursuant to Sections 1.15(a), 1.16(a) and
                    1.16(b).

                
	 
                

        	
                                
                1.17         
                Single Loan. All Loans to Borrower and all of the other Obligations of
                Borrower arising under this Agreement and the other Loan Documents shall constitute
                one general obligation of Borrower secured, until the Termination Date, by all of
                the Collateral.
	
                
	 
	
                2.
                           CONDITIONS
                PRECEDENT
	
                
	 
	
                                
                2.1           
                Conditions to the Initial Loans. No Lender shall be obligated to make any
                Loan or incur any Letter of Credit Obligations on the Original Closing Date, or to
                take, fulfill, or perform any other action hereunder, until the following
                conditions have been satisfied or provided for in a manner satisfactory to Agent,
                or waived in writing by Agent and Lenders:

        	 
                
	
                    
                                                    
                    (a)            
                    Credit Agreement; Loan Documents. The Existing Credit Agreement or
                    counterparts thereof shall have been duly executed by, and delivered to,
                    Borrower, each other Credit Party, Agent and Lenders; and Agent shall have
                    received such documents, instruments, agreements and legal opinions as Agent
                    shall have reasonably requested in connection with the transactions
                    contemplated by the Existing Credit Agreement and the other Loan Documents,
                    including all those listed in the Closing Checklist attached hereto as Annex
                    D, each in form and substance reasonably satisfactory to Agent.

                    
                                                    
                    (b)            
                    Approvals. Agent shall have received (i) satisfactory evidence that the
                    Credit Parties have obtained all required consents and approvals of all Persons
                    including all requisite Governmental Authorities, to the execution, delivery
                    and performance of this Agreement and the other Loan Documents or (ii) an
                    officer’s certificate in form and substance reasonably satisfactory to
                    Agent affirming that no such consents or approvals are required.

                    
                                                    
                    (c)            
                    Opening Availability. The Eligible Accounts and Eligible Pending
                    Accounts Receivable and Fixed Contract Accounts Receivable supporting the
                    initial Revolving Credit Advance and the initial Letter of Credit Obligations
                    incurred and the amount of the Reserves to be established on the Original
                    Closing Date shall be sufficient in value, as determined by Agent, to provide
                    Borrower with Borrowing Availability, after giving effect to the initial
                    Revolving Credit Advance, the incurrence of any initial Letter of Credit
                    Obligations (on a

                

        	
                    

                    
                    -19-

                    

                

        

        

        	pro forma
                basis, with trade payables being paid currently, and expenses and liabilities being
                paid in the ordinary course of business and without acceleration of sales) of at
                least $5,000,000.

        	 
                
	
                    
                                                    
                    (d)           
                    Payment of Fees. Borrower shall have paid the Fees required to be paid
                    on the Original Closing Date in the respective amounts specified in Section
                    1.9 (including the Fees specified in the GE Capital Fee Letter), and shall
                    have reimbursed Agent for all fees, costs and expenses of closing presented as
                    of the Original Closing Date.

                    
                                                    
                    (e)            
                    Capital Structure: Other Indebtedness. The capital structure of each
                    Credit Party and the terms and conditions of all Indebtedness of each Credit
                    Party shall be acceptable to Agent in its sole discretion.

                    
                                                    
                    (f)             
                    Due Diligence. Agent shall have completed its business and legal due
                    diligence, including a roll forward of its previous Collateral audit with
                    results reasonably satisfactory to Agent.

                
	 
                

        	
                                
                2.2           
                Further Conditions to Each Loan. Except as otherwise expressly provided
                herein, no Lender shall be obligated to fund any Advance or incur any Letter of
                Credit Obligation, if, as of the date thereof:

        	 
                
	
                    
                                                    
                    (a)            
                    any representation or warranty by any Credit Party contained herein or in any
                    other Loan Document is untrue or incorrect as of such date, except to the
                    extent that such representation or warranty expressly relates to an earlier
                    date and except for changes therein expressly permitted or expressly
                    contemplated by this Agreement, and Agent or Requisite Revolving Lenders have
                    determined not to make such Advance, convert or continue any Loan as LIBOR Loan
                    or incur such Letter of Credit Obligation as a result of the fact that such
                    warranty or representation is untrue or incorrect;

                    
                                                    
                    (b)            
                    any event or circumstance having a Material Adverse Effect has occurred since
                    the date hereof as determined by the Requisite Revolving Lenders, and Agent or
                    Requisite Revolving Lenders have determined not to make such Advance or incur
                    such Letter of Credit Obligation as a result of the fact that such event or
                    circumstance has occurred;

                    
                                                    
                    (c)            
                    (i) any Default or Event of Default has occurred and is continuing or would
                    result after giving effect to any Advance (or the incurrence of any Letter of
                    Credit Obligation), and Agent or Requisite Revolving Lenders shall have
                    determined not to make any Advance or incur any Letter of Credit Obligation as
                    a result of that Default or Event of Default; or

                    
                                                    
                    (d)            
                    after giving effect to any Advance (or the incurrence of any Letter of Credit
                    Obligations), the outstanding principal amount of the Revolving Loan would
                    exceed the lesser of the Borrowing Base and the Maximum Amount, in each case,
                    less the then outstanding principal amount of the Swing Line Loan.

                    The request and
                    acceptance by Borrower of the proceeds of any Advance, the incurrence of any
                    Letter of Credit Obligations shall be deemed to constitute, as of the date
                    thereof, (i) a representation and warranty by Borrower that the conditions in
                    this Section 2.2 have been

                

        	
                    

                    
                    -20-

                    

                

        

        

        	satisfied and
                (ii) a reaffirmation by Borrower of the granting and continuance of Agent’s
                Liens, on behalf of itself and Lenders, pursuant to the Collateral
                Documents.
	 
	
                3.
                        REPRESENTATIONS AND
                WARRANTIES
	 
                
	
                    
                                                    
                    To induce Lenders to enter
                    into this Agreement and to make and restructure the Loans and to continue and
                    incur Letter of Credit Obligations, the Credit Parties executing this
                    Agreement, jointly and severally, make the following representations and
                    warranties to Agent and each Lender with respect to all Credit Parties, each
                    and all of which shall survive the execution and delivery of this
                    Agreement.

                    
                                    
                    3.1           
                    Corporate Existence; Compliance with Law. Each Credit Party (a) is a
                    corporation, limited liability company or limited partnership duly organized,
                    validly existing and in good standing under the laws of its respective
                    jurisdiction of incorporation or organization set forth in Disclosure
                    Schedule 3.1; (b) is duly qualified to conduct business and is in good
                    standing in each other jurisdiction where its ownership or lease of property or
                    the conduct of its business requires such qualification, except where the
                    failure to be so qualified would not result in exposure to losses, damages or
                    liabilities in excess of $75,000; (c) has the requisite power and authority and
                    the legal right to own, pledge, mortgage or otherwise encumber and operate its
                    properties, to lease the property it operates under lease and to conduct its
                    business as now, heretofore and proposed to be conducted; (d) subject to
                    specific representations regarding Environmental Laws, has all material
                    licenses, permits, consents or approvals from or by, and has made all material
                    filings with, and has given all material notices to, all Governmental
                    Authorities having jurisdiction, to the extent required for such ownership,
                    operation and conduct; (e) is in compliance with its charter and bylaws or
                    partnership or operating agreement, as applicable; and (f) subject to specific
                    representations set forth herein regarding ERISA, Environmental Laws, tax and
                    other laws, is in compliance with all applicable provisions of law, except
                    where the failure to comply, individually or in the aggregate, could not
                    reasonably be expected to have a Material Adverse Effect.

                    
                                    
                    3.2           
                    Executive Offices, Collateral Locations, FEIN. As of the Closing Date,
                    each Credit Party’s name as it appears in official filings in its state
                    of incorporation, state of incorporation or organization, organization type,
                    organization number, if any, issued by its state of incorporation or
                    organization, and the current location of each Credit Party’s chief
                    executive office and the premises at which any Collateral is located are set
                    forth in Disclosure Schedule 3.2, and, except as set forth on
                    Disclosure Schedule 3.2, none of such locations has changed within 12
                    months preceding the Closing Date. In addition, Disclosure Schedule 3.2
                    lists the federal employer identification number and the organizational
                    identification number of each Credit Party.

                    
                                    
                    3.3           
                    Corporate Power, Authorization, Enforceable Obligations. The execution,
                    delivery and performance by each Credit Party of the Loan Documents to which it
                    is a party and the creation of all Liens provided for therein: (a) are within
                    such Person’s power; (b) have been duly authorized by all necessary
                    corporate, limited liability company or limited partnership action; (c) do not
                    contravene any provision of such Person’s charter, bylaws or partnership
                    or operating agreement as applicable; (d) do not violate any law or regulation,
                    or any order or decree of any court or Governmental Authority; (e) do not
                    conflict with or result in the breach or

                

        	
                    

                    
                    -21-

                    

                

        

        

        	
                    termination of,
                    constitute a default under or accelerate or permit the acceleration of any
                    performance required by, any indenture, mortgage, deed of trust, lease,
                    agreement or other instrument to which such Person is a party or by which such
                    Person or any of its property is bound; (f) do not result in the creation or
                    imposition of any Lien upon any of the property of such Person other than those
                    in favor of Agent, on behalf of itself and Lenders and Second Lien Agent,
                    pursuant to the Loan Documents; and (g) do not require the consent or approval
                    of any Governmental Authority or any other Person, except those referred to in
                    Section 2.1(b), all of which will have been duly obtained, made or
                    complied with prior to the Closing Date. Each of the Loan Documents shall be
                    duly executed and delivered by each Credit Party that is a party thereto and
                    each such Loan Document shall constitute a legal, valid and binding obligation
                    of such Credit Party enforceable against it in accordance with its
                    terms.

                    
                                    
                    3.4           
                    Financial Statements and Projections. All Financial Statements
                    concerning Borrower and its Subsidiaries that are referred to below have been
                    prepared in accordance with GAAP consistently applied throughout the periods
                    covered (except as disclosed therein and except, with respect to unaudited
                    Financial Statements, for the absence of footnotes and normal year-end audit
                    adjustments) and present fairly in all material respects the financial position
                    of the Persons covered thereby as at the dates thereof and the results of their
                    operations and cash flows for the periods then ended.

                    
                                                    
                    (a)           
                    Financial Statements. The following Financial Statements attached hereto
                    as Disclosure Schedule 3.4(a) have been delivered on the date
                    hereof:

                    
                                                                  
                    (i)         The
                    unaudited consolidated and consolidating balance sheets at December 31, 2006
                    and the related statement of income and cash flows of Borrower and its
                    Subsidiaries for the Fiscal Year then ended.

                
	 

        	
                                                              (ii)         The
                unaudited balance sheet at June 30, 2007 and the related statement of income and
                cash flows of Borrower and its Subsidiaries for the Fiscal Quarter then
                ended.

        	 
                
	
                    
                                                    
                    (b)           
                    Pro Forma. The Pro Forma delivered on the date hereof and attached
                    hereto as Disclosure Schedule 3.4(b) was prepared by Borrower giving
                    pro forma effect to the Related Transactions, was based on the unaudited
                    consolidated and consolidating balance sheets of Borrower and its Subsidiaries
                    dated June 30, 2007, and was prepared in accordance with GAAP, with only such
                    adjustments thereto as would be required in accordance with GAAP.

                
	 
                

        	
                                
                 
                3.5            
                Material Adverse Effect. Between December 31, 2006 and the Closing Date, (a)
                no Credit Party has incurred any obligations, contingent or noncontingent
                liabilities, liabilities for Charges, long-term leases or unusual forward or
                long-term commitments that are not reflected in the Pro Forma and that , alone or
                in the aggregate, could reasonably be expected to have a Material Adverse Effect,
                (b) no contract, lease or other agreement or instrument has been entered into by
                any Credit Party or has become binding upon any Credit Party’s assets and no
                law or regulation applicable to any Credit Party has been adopted that has had or
                could reasonably be expected to have a Material Adverse Effect, and (c) no Credit
                Party is in default and to the best of Borrower’s knowledge no third party is
                in default under any material contract, lease or other agreement or instrument,
                that alone or in the aggregate could reasonably be

        	
                    

                    
                    -22-

                    

                

        

        

        	expected to
                have a Material Adverse Effect. Between December 31, 2006 and the Closing Date no
                event has occurred, that alone or together with other events, could reasonably be
                expected to have a Material Adverse Effect.

        	 
                
	
                    
                                    
                    3.6           
                    Ownership of Property; Liens. As of the Closing Date, the real estate
                    (“Real Estate”) listed in Disclosure Schedule
                    3.6 constitutes all of the real property owned, leased, subleased, or used
                    by any Credit Party. Each Credit Party owns good and marketable fee simple
                    title to all of its owned Real Estate, and valid and marketable leasehold
                    interests in all of its leased Real Estate, all as described on Disclosure
                    Schedule 3.6, and copies of all such leases or a summary of terms thereof
                    reasonably satisfactory to Agent have been made available to Agent.
                    Disclosure Schedule 3.6  further describes any Real Estate with
                    respect to which any Credit Party is a lessor, sublessor or assignor as of the
                    Closing Date. Each Credit Party also has good and marketable title to, or valid
                    leasehold interests in, all of its personal property and assets. As of the
                    Closing Date, none of the properties and assets of any Credit Party are subject
                    to any Liens other than the Montvale Property Mortgage and as set forth on
                    Disclosure Schedule 3.6 and other than Permitted Encumbrances, and there
                    are no facts, circumstances or conditions known to any Credit Party that may
                    result in any Liens (including Liens arising under Environmental Laws) other
                    than as set forth on Disclosure Schedule 3.6 and other than Permitted
                    Encumbrances. Each Credit Party has received all deeds, assignments, waivers,
                    consents, nondisturbance and attornment or similar agreements, bills of sale
                    and other documents, and has duly effected all recordings, filings and other
                    actions necessary to establish, protect and perfect such Credit Party’s
                    right, title and interest in and to all such Real Estate and other properties
                    and assets. Disclosure Schedule 3.6 also describes any purchase options,
                    rights of first refusal or other similar contractual rights pertaining to any
                    Real Estate. As of the Closing Date, no portion of any Credit Party’s
                    Real Estate has suffered any material damage by fire or other casualty loss
                    that has not heretofore been repaired and restored in all material respects to
                    its original condition or otherwise remedied. As of the Closing Date, all
                    material permits required to have been issued or appropriate to enable the Real
                    Estate to be lawfully occupied and used for all of the purposes for which it is
                    currently occupied and used have been lawfully issued and are in full force and
                    effect.

                    
                                    
                    3.7           
                    Labor Matters. As of the Closing Date (a) no strikes or other material
                    labor disputes against any Credit Party are pending or, to any Credit
                    Party’s knowledge, threatened; (b) hours worked by and payment made to
                    employees of each Credit Party comply with the Fair Labor Standards Act and
                    each other federal, state, local or foreign law applicable to such matters; (c)
                    all payments due from any Credit Party for employee health and welfare
                    insurance have been paid or accrued as a liability on the books of such Credit
                    Party; (d) except as set forth in Disclosure Schedule 3.7, no Credit
                    Party is a party to or bound by any collective bargaining agreement, management
                    agreement, consulting agreement, employment agreement, bonus, restricted stock,
                    stock option, or stock appreciation plan or agreement or any similar plan,
                    agreement or arrangement (and true and complete copies of any agreements
                    described on Disclosure Schedule 3.7 have been made available to Agent);
                    (e) except as set forth on Disclosure Schedule 3.7, there is no
                    organizing activity involving any Credit Party pending or, to any Credit
                    Party’s knowledge, threatened by any labor union or group of employees;
                    (f) except as set forth on Disclosure Schedule 3.7, there are no
                    representation proceedings pending or, to any Credit Party’s knowledge,
                    threatened with the National Labor Relations Board, and no labor organization
                    or group of employees of any Credit Party has made a pending demand
                    for

                

        	
                    

                    
                    -23-

                    

                

        

        

        	
                    recognition; and (g)
                    except as set forth in Disclosure Schedule 3.7, there are no material
                    complaints or charges against any Credit Party pending or, to the knowledge of
                    any Credit Party, threatened to be filed with any Governmental Authority or
                    arbitrator based on, arising out of, in connection with, or otherwise relating
                    to the employment or termination of employment by any Credit Party of any
                    individual.

                    
                                    
                    3.8           
                    Ventures, Subsidiaries and Affiliates; Outstanding Stock and
                    Indebtedness. Except as set forth in Disclosure Schedule 3.8, as of
                    the Closing Date, no Credit Party has any Subsidiaries, is engaged in any joint
                    venture or partnership with any other Person, or is an Affiliate of any other
                    Person. All of the issued and outstanding Stock of each Credit Party is owned
                    by each of the Stockholders and in the amounts set forth in Disclosure
                    Schedule 3.8. Except as set forth in Disclosure Schedule 3.8, there
                    are no outstanding rights to purchase, options, warrants or similar rights or
                    agreements pursuant to which any Credit Party may b e required to issue, sell,
                    repurchase or redeem any of its Stock or other equity securities or any Stock
                    or other equity securities of its Subsidiaries. All outstanding Indebtedness
                    and Guaranteed Indebtedness of each Credit Party as of the Closing Date (except
                    for the Obligations) is described in Section 6.3 (including
                    Disclosure Schedule 6.3). Each of AAC Corp. and Sylvan Insurance Co.,
                    Ltd. are wholly owned Subsidiaries of Holdings which are inactive and have no
                    assets or any Indebtedness or Guaranteed Indebtedness.

                    
                                    
                    3.9           
                    Government Regulation. No Credit Party is an “investment
                    company” or an “affiliated person” of, or
                    “promoter” or “principal underwriter” for, an
                    “investment company,” as such terms are defined in the Investment
                    Company Act of 1940. The making of the Loans by Lenders to Borrower, the
                    incurrence of the Letter of Credit Obligations on behalf of Borrower, the
                    application of the proceeds thereof and repayment thereof and the consummation
                    of the Related Transactions will not violate any provision of any such statute
                    or any rule, regulation or order issued by the Securities and Exchange
                    Commission.

                    
                                    
                    3.10         
                    Margin Regulations. No Credit Party is engaged, nor will it engage,
                    principally or as one of its important activities, in the business of extending
                    credit for the purpose of “purchasing” or “carrying”
                    any “margin stock” as such terms are defined in Regulation U of the
                    Federal Reserve Board as now and from time to time hereafter in effect (such
                    securities being referred to herein as “Margin Stock”). No
                    Credit Party owns any Margin Stock, and none of the proceeds of the Loans or
                    other extensions of credit under this Agreement will be used, directly or
                    indirectly, for the purpose of purchasing or carrying any Margin Stock, for the
                    purpose of reducing or retiring any Indebtedness that was originally incurred
                    to purchase or carry any Margin Stock or for any other purpose that might cause
                    any of the Loans or other extensions of credit under this Agreement to be
                    considered a “purpose credit” within the meaning of Regulations T,
                    U or X of the Federal Reserve Board. No Credit Party will take or permit to be
                    taken any action that might cause any Loan Document to violate any regulation
                    of the Federal Reserve Board.

                    
                                    
                    3.11         
                    Taxes. All tax returns, reports and statements, including information
                    returns, required by any Governmental Authority to be filed by any Credit Party
                    have been filed with the appropriate Governmental Authority and all Charges
                    have been paid prior to the date on which any fine, penalty, interest or late
                    charge may be added thereto for nonpayment thereof (or any such fine, penalty,
                    interest, late charge or loss has been paid), excluding Charges or
                    other

                

        	
                    

                    
                    -24-

                    

                

        

        

        	
                    amounts being contested
                    in accordance with Section 5.2(b). Proper and accurate amounts have been
                    withheld by each Credit Party from its respective employees for all periods in
                    full and complete compliance with all applicable federal, state, local and
                    foreign laws and such withholdings have been timely paid to the respective
                    Governmental Authorities. Disclosure Schedule 3.11 sets forth as
                    of the Closing Date those taxable years for which any Credit Party’s tax
                    returns are currently being audited by the IRS or any other applicable
                    Governmental Authority and any assessments or threatened assessments in
                    connection with such audit, or otherwise currently outstanding. Except as
                    described in Disclosure Schedule 3.11, no Credit Party has executed or
                    filed with the IRS or any other Governmental Authority any agreement or other
                    document extending, or having the effect of extending, the period for
                    assessment or collection of any Charges. None of the Credit Parties and their
                    respective predecessors are liable for any Charges: (a) under any agreement
                    (including any tax sharing agreements) or (b) to each Credit Party’s
                    knowledge, as a transferee. As of the Closing Date, no Credit Party has agreed
                    or been requested to make any adjustment under IRC Section 481 (a), by reason
                    of a change in accounting method or otherwise, which would have a Material
                    Adverse Effect.

                
	 
                

        	
                                
                 
                3.12         
                ERISA.
	 
	
                    
                                                    
                    (a)           
                    Disclosure Schedule 3.12 lists all Plans and separately identifies all
                    Pension Plans, including Title IV Plans, Multiemployer Plans, ESOPs and Welfare
                    Plans, including all Retiree Welfare Plans. Copies of all such listed Plans,
                    together with a copy of the latest form IRS/DOL 5500-series for each such Plan
                    have been made available to Agent. Except with respect to Multiemployer Plans,
                    each Qualified Plan has been determined by the IRS to qualify under Section 401
                    of the IRC, the trusts created thereunder have been determined to be exempt
                    from tax under the provisions of Section 501 of the IRC, and nothing has
                    occurred that would cause the loss of such qualification or tax-exempt status.
                    Each Plan is in compliance with the applicable provisions of ERISA and the IRC,
                    including the timely filing of all reports required under the IRC or ERISA,
                    including the statement required by 29 CFR Section
                    2520.104-23. Neither any
                    Credit Party nor ERISA Affiliate has failed to make any contribution or pay any
                    amount due as required by either Section 412 of the IRC or Section 302 of ERISA
                    or the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has
                    engaged in a “prohibited transaction,” as defined in Section 406 of
                    ERISA and Section 4975 of the IRC, in connection with any Plan, that would
                    subject any Credit Party to a material tax on prohibited transactions imposed
                    by Section 502(i) of ERISA or Section 4975 of the IRC.

                    
                                                    
                    (b)           Except
                    as set forth in Disclosure Schedule 3.12: (i) no Title IV Plan has any
                    Unfunded Pension Liability; (ii) no ERISA Event or event described in Section
                    4062(e) of ERISA with respect to any Title IV Plan has occurred or is
                    reasonably expected to occur;
                    (iii) there are no pending,
                    or to the knowledge of any Credit Party, threatened claims (other than claims
                    for benefits in the normal course), sanctions, actions or lawsuits, asserted or
                    instituted against any Plan or any Person as fiduciary or sponsor of any Plan;
                    (iv) no Credit Party or ERISA Affiliate has incurred or reasonably expects to
                    incur any liability as a result of a complete or partial withdrawal from a
                    Multiemployer Plan; (v) within the last five years no Title IV Plan of any
                    Credit Party or ERISA Affiliate has been terminated, whether or not in a
                    “standard termination” as that term is used in Section 404(b)(1) of
                    ERISA, nor has any Title IV Plan of any Credit Party or ERISA Affiliate
                    (determined at any time within the past five years) with Unfunded Pension
                    Liabilities been transferred outside of the “controlled group”
                    (within the

                

        	
                    

                    
                    -25-

                    

                

        

        

        	
                    meaning of Section
                    4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate; (vi) except in
                    the case of any ESOP, Stock of all Credit Parties and their ERISA Affiliates
                    makes up, in the aggregate, no more than 10% of fair market value of the assets
                    of any Plan measured on the basis of fair market value as of the latest
                    valuation date of any Plan; and (vii) no liability under any Title IV Plan has
                    been satisfied with the purchase of a contract from an insurance company that
                    is not rated AAA by the Standard & Poor’s Corporation or an
                    equivalent rating by another nationally recognized rating agency.

                    
                                    
                    3.13         
                    No Litigation. No action, claim, lawsuit, demand, investigation or
                    proceeding is now pending or, to the knowledge of any Credit Party, threatened
                    against any Credit Party, before any Governmental Authority or before any
                    arbitrator or panel of arbitrators (collectively, "Litigation”),
                    (a) that challenges any Credit Party’s right or power to enter into or
                    perform any of its obligations under the Loan Documents to which it is a party,
                    or the validity or enforceability of any Loan Document or any action taken
                    thereunder, or (b) that has a reasonable risk of being determined adversely to
                    any Credit Party and that, if so determined, could reasonably be expected to
                    have a Material Adverse Effect. Except as set forth on Disclosure Schedule
                    3.13, as of the Closing Date there is no Litigation pending or threatened
                    that seeks damages in excess of $500,000 or injunctive relief against, or
                    alleges criminal misconduct of, any Credit Party.

                    
                                    
                    3.14         
                    Brokers. Except as set forth on Disclosure Schedule 3.14, no
                    broker or finder acting on behalf of any Credit Party or Affiliate thereof
                    brought about the obtaining, making or closing of the credit extended pursuant
                    to the Second Lien Credit Agreement or this Agreement or the transactions
                    contemplated by the Loan Documents, and no Credit Party or Affiliate thereof
                    has any obligation to any Person in respect of any finder’s or brokerage
                    fees in connection therewith.

                    
                                    
                    3.15         
                    Intellectual Property. As of the Closing Date, each Credit Party owns or
                    has rights to use all Intellectual Property necessary to continue to conduct
                    its business as now or heretofore conducted by it or proposed to be conducted
                    by it, and each Patent, Trademark, Copyright and License is listed, together
                    with application or registration numbers, as applicable, in Disclosure
                    Schedule 3.15. Each Credit Party conducts its business and affairs without
                    infringement of or interference with any Intellectual Property of any other
                    Person in any material respect. Except as set forth in Disclosure Schedule
                    3.15, no Credit Party is aware of any infringement claim by any other
                    Person with respect to any Intellectual Property.

                    
                                    
                    3.16         
                    Full Disclosure. No information contained in this Agreement, any of the
                    other Loan Documents, Financial Statements or Collateral Reports or other
                    written reports from time to time delivered hereunder or any written statement
                    furnished by or on behalf of any Credit Party to Agent or any Lender pursuant
                    to the terms of this Agreement contains or will contain any untrue statement of
                    a material fact or omits or will omit to state a material fact necessary to
                    make the statements contained herein or therein not misleading in light of the
                    circumstances under which they were made. Projections from time to time
                    delivered hereunder are or will be based upon the estimates and assumptions
                    stated therein, all of which Borrower believed at the time of delivery to be
                    reasonable and fair in light of current conditions and current facts known to
                    Borrower as of such delivery date, and reflect Borrower’s good faith and
                    reasonable estimates of the future financial performance of Borrower and of the
                    other information projected therein for the period set forth therein. The Liens
                    granted to Agent, on behalf of itself and Lenders,

                

        	
                    

                    
                    -26-

                    

                

        

        

        	
                    pursuant to the
                    Collateral Documents will at all times be fully perfected first priority Liens
                    in and to the Collateral described therein, subject, as to priority, only to
                    Permitted Encumbrances.

                
	 
                

        	
                                
                 
                3.17         
                Environmental Matters.
	 
	
                    
                                                    
                    (a)            
                    Except as set forth in Disclosure Schedule 3.17, as of the Closing Date:
                    (i) the Real Estate is free of contamination from any Hazardous Material except
                    for such contamination that would not adversely impact the value or
                    marketability of such Real Estate and that would not result in Environmental
                    Liabilities that could reasonably be expected to exceed $100,000; (ii) no
                    Credit Party has caused or suffered to occur any Release of Hazardous Materials
                    on, at, in, under, above, to, from or about any of its Real Estate; (iii) the
                    Credit Parties are and have been in compliance with all Environmental Laws,
                    except for such noncompliance that would not result in Environmental
                    Liabilities which could reasonably be expected to exceed $100,000; (iv) the
                    Credit Parties have obtained, and are in compliance with, all Environmental
                    Permits required by Environmental Laws for the operations of their respective
                    businesses as presently conducted or as proposed to be conducted, except where
                    the failure to so obtain or comply with such Environmental Permits would not
                    result in Environmental Liabilities that could reasonably be expected to exceed
                    $100,000, and all such Environmental Permits are valid, uncontested and in good
                    standing; (v) no Credit Party is involved in operations or knows of any facts,
                    circumstances or conditions, including any Releases of Hazardous Materials,
                    that are likely to result in any Environmental Liabilities of such Credit Party
                    which could reasonably be expected to exceed $100,000, and no Credit Party has
                    permitted any current or former tenant or occupant of the Real Estate to engage
                    in any such operations; (vi) there is no Litigation arising under or related to
                    any Environmental Laws, Environmental Permits or Hazardous Material that seeks
                    damages, penalties, fines, costs or expenses in excess of $25,000 or injunctive
                    relief against, or that alleges criminal misconduct by, any Credit Party; (vii)
                    no notice has been received by any Credit Party identifying it as a
                    “potentially responsible party” or requesting information under
                    CERCLA or analogous state statutes, and to the knowledge of the Credit Parties,
                    there are no facts, circumstances or conditions that may result in any Credit
                    Party being identified as a “potentially responsible party” under
                    CERCLA or analogous state statutes; and (viii) the Credit Parties have provided
                    to Agent copies of all existing environmental reports, reviews and audits and
                    all written information pertaining to actual or potential Environmental
                    Liabilities, in each case relating to any Credit Party.

                    
                                                    
                    (b)           
                    Each Credit Party hereby acknowledges and agrees that Agent (i) is not now, and
                    has not ever been, in control of any of the Real Estate or any Credit
                    Party’s affairs, and (ii) does not have the capacity through the
                    provisions of the Loan Documents or otherwise to influence any Credit
                    Party’s conduct with respect to the ownership, operation or management of
                    any of its Real Estate or compliance with Environmental Laws or Environmental
                    Permits.

                    
                                    
                    3.18         
                    Insurance. Disclosure Schedule 3.18 lists all insurance policies
                    of any nature maintained, as of the Closing Date, for current occurrences by
                    each Credit Party, as well as a summary of the terms of each such
                    policy.

                    
                                    
                    3.19         
                    Deposit and Disbursement Accounts. Disclosure Schedule 3.19 lists
                    all banks and other financial institutions at which any Credit Party maintains
                    deposit or other accounts as of the Closing Date, including any Disbursement
                    Accounts, and such Schedule correctly identifies

                

        	
                    

                    
                    -27-

                    

                

        

        

        	the name,
                address and telephone number of each depository, the name in which the account is
                held, a description of the purpose of the account, and the complete account number
                therefor.

        	 
                
	
                    
                                    
                    3.20         
                    Government Contracts. Except as set forth in Disclosure Schedule
                    3.20, as of the Closing Date, no Credit Party is a party to any contract or
                    agreement with any Governmental Authority and no Credit Party’s Accounts
                    are subject to the Federal Assignment of Claims Act (31 U.S.C. Section 3727) or
                    any similar state or local law.

                    
                                    
                    3.21         
                    Customer and Trade Relations. As of the Closing Date, there exists no
                    actual or, to the knowledge of any Credit Party, threatened termination or
                    cancellation of, or any material adverse modification or change in: the
                    business relationship of any Credit Party with any customer or group of
                    customers whose purchases during the preceding 12 months caused them to be
                    ranked among the ten largest customers of such Credit Party; or the business
                    relationship of any Credit Party with any supplier material to its
                    operations.

                    
                                    
                    3.22         
                    Agreements and Other Documents. As of the Closing Date, each Credit
                    Party has provided access to Agent or its counsel, on behalf of Lenders, to
                    accurate and complete copies (or summaries) of all of the following agreements
                    or documents to which it is subject and each of which is listed in
                    Disclosure Schedule 3.22: supply agreements and purchase agreements not
                    terminable by such Credit Party within 60 days following written notice issued
                    by such Credit Party and involving transactions in excess of $150,000 per
                    annum; leases of Equipment having a remaining term of one year or longer and
                    requiring aggregate rental and other payments in excess of $250,000 per annum;
                    licenses and permits held by the Credit Parties, the absence of which could be
                    reasonably likely to have a Material Adverse Effect; instruments and documents
                    evidencing any Indebtedness or Guaranteed Indebtedness of such Credit Party and
                    any Lien granted by such Credit Party with respect thereto; and instruments and
                    agreements evidencing the issuance of any equity securities, warrants, rights
                    or options to purchase equity securities of such Credit Party.

                    
                                    
                    3.23         
                    Solvency. Both before and after giving effect to (a) the Loans and
                    Letter of Credit Obligations to be continued, made or incurred on the Closing
                    Date or such other date as Loans and Letter of Credit Obligations requested
                    hereunder are made or incurred, (b) the disbursement of the proceeds of such
                    Loans pursuant to the instructions of Borrower, (c) the payment and accrual of
                    all transaction costs in connection with the foregoing, and (d) the loans made
                    pursuant to the Second Lien Credit Agreement, each Credit Party is and will be
                    Solvent.

                    
                                    
                    3.24         
                    Status of Holdings. Prior to the Closing Date, Holdings will not have
                    engaged in any business or incurred any Indebtedness or any other liabilities
                    (except in connection with this Agreement) other than certain client service
                    contracts, guaranties and equipment leases, which existing contracts and any
                    additional contracts entered into by Holdings shall be subject to a security
                    agreement in form and substance satisfactory to Agent, which security agreement
                    shall be executed by Holdings on or before a date to be determined by the Agent
                    in its reasonable discretion (the “Holdings Security
                    Agreement”).

                    
                                    
                    3.25         
                    Foreign Assets Control Regulations. None of the Credit Parties nor, to
                    the best knowledge of each Credit Party, any Affiliate of any Credit Party, is,
                    or will after consummation of the Related Transactions, the Preferred Stock
                    Offering and the application of the proceeds of

                

        	
                    

                    
                    -28-

                    

                

        

        

        	
                    the Loans, by reason of
                    being a “national” of a “designated foreign country” or
                    a “specially designated national” within the meaning of the
                    Regulations of the Office of Foreign Assets Control, United States Treasury
                    Department (31 C.F.R., Subtitle B, Chapter V), or for any other reason, in
                    violation of, any United States Federal statute or Presidential Executive Order
                    concerning trade or other relations with any foreign country or any citizen or
                    national thereof or the ownership or operation of any property.

                
	 
                

        	
                                
                 
                3.26         
                Anti-Terrorism Law.
	 
	
                    
                                                    
                    (a)            
                    No Credit Party and, to the knowledge of the Credit Parties, none of its
                    Affiliates is in violation of any laws relating to terrorism or money
                    laundering (“Anti-Terrorism Laws”), including Executive
                    Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the
                    “Executive Order”), and the Uniting and Strengthening
                    America by Providing Appropriate Tools Required to Intercept and Obstruct
                    Terrorism Act of 2001, Public Law 107-56 (the “Patriot
                    Act”).

                    
                                                    
                    (b)           
                    No Credit Party, and to the knowledge of the Credit Parties, no Affiliate or
                    broker or other agent of any Credit Party acting or benefiting in any capacity
                    in connection with the Loans is any of the following:

                
	 
                

        	
                                                                 
                (i)         a
                Person that is listed in the annex to, or is otherwise subject to the provisions
                of, the Executive Order;

        	 
                
	
                    
                                                                    
                    (ii)         a
                    Person owned or controlled by, or acting for or on behalf of, any Person that
                    is listed in the annex to, or is otherwise subject to the provisions of, the
                    Executive Order;

                
	 
                

        	
                                                               
                (iii)         a
                Person with which any Lender is prohibited from dealing or otherwise engaging in
                any transaction by any Anti-Terrorism Law; or
	 
	
                                                               
                (iv)         a
                Person that commits, threatens or conspires to commit or supports
                “terrorism” as defined in the Executive Order.

        	 
                
	
                    
                                                    
                    (c)           No
                    Credit Party and, to the knowledge of the Credit Parties, no broker or other
                    agent of any Credit Party acting in any capacity in connection with the Loans
                    (i) conducts any business or engages in making or receiving any contribution of
                    funds, goods or services to or for the benefit of any Person described in
                    paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
                    relating to, any property or interests in property blocked pursuant to the
                    Executive Order, or (iii) engages in or conspires to engage in any transaction
                    that evades or avoids, or has the purpose of evading or avoiding, or attempts
                    to violate, any of the prohibitions set forth in any Anti-Terrorism
                    Law.

                    
                                    
                    3.27         
                    Second Lien Credit Agreement. Prior to the Closing Date, Borrower has
                    provided to Agent or its counsel, executed copies of the Second Lien Credit
                    Agreement and the other Loan Documents (as defined therein) delivered in
                    connection therewith, effective as of the Closing Date.

                

        	
                    

                    
                    -29-

                    

                

        

        

        	
                4.
                             FINANCIAL
                STATEMENTS AND INFORMATION
	 

        	
                                
                 
                4.1           
                Reports and Notices.
	 
                
	
                    
                                                    
                    (a)            
                    Each Credit Party executing this Agreement hereby agrees that from and after
                    the Closing Date and until the Termination Date, it shall deliver to Agent or
                    to Agent and Lenders, as required, the Financial Statements, notices,
                    Projections and other information at the times, to the Persons and in the
                    manner set forth in Annex E.

                    
                                                    
                    (b)           
                    Each Credit Party executing this Agreement hereby agrees that from and after
                    the Closing Date and until the Termination Date, it shall deliver to Agent or
                    to Agent and Lenders, as required, the various Collateral Reports (including
                    Borrowing Base Certificates in the form of Exhibit 4.1 (b)) at the
                    times, to the Persons and in the manner set forth in Annex F.

                    
                                    
                    4.2           
                    Communication with Accountants. Each Credit Party executing this
                    Agreement authorizes (a) Agent and (b) so long as an Event of Default has
                    occurred and is continuing, each Lender, to communicate directly with its
                    independent certified public accountants, including Grant Thornton LLP, and
                    authorizes and shall instruct those accountants and advisors to communicate to
                    Agent and each Lender information relating to any Credit Party with respect to
                    the business, results of operations and financial condition of any Credit
                    Party.

                
	 
                

        	
                5.
                            
                AFFIRMATIVE COVENANTS
	 
	
                                                
                Each Credit Party executing
                this Agreement jointly and severally agrees as to all Credit Parties that from and
                after the date hereof and until the Termination Date:

        	 
                
	
                    
                                    
                    5.1           
                    Maintenance of Existence and Conduct of Business. Each Credit Party
                    shall: do or cause to be done all things necessary to preserve and keep in full
                    force and effect its corporate existence and its rights and franchises;
                    continue to conduct its business substantially as now conducted or as otherwise
                    permitted hereunder; at all times maintain, preserve and protect all of its
                    assets and properties used or useful in the conduct of its business, and keep
                    the same in good repair, working order and condition in all material respects
                    (taking into consideration ordinary wear and tear) and from time to time make,
                    or cause to be made, all necessary or appropriate repairs, replacements and
                    improvements thereto consistent with industry practices; and transact business
                    only in such corporate and trade names as are set forth in Disclosure
                    Schedule 5.1.

                
	 
                

        	 
                
	
                    
                                    
                    5.2           
                Payment of Charges.

        	 
                
	
                    
                                                    
                    (a)            
                    Subject to Section 5.2(b), each Credit Party shall pay and discharge or
                    cause to be paid and discharged promptly all Charges payable by it, including
                    (i) Charges imposed upon it, its income and profits, or any of its property
                    (real, personal or mixed) and all Charges with respect to tax, social security
                    and unemployment withholding with respect to its employees, (ii) lawful claims
                    for labor, materials, supplies and services or otherwise, and (iii) all storage
                    or rental charges payable to warehousemen and bailees, in each case, before any
                    thereof shall become past due.

                    
                                                    
                    (b)           
                    Each Credit Party may in good faith contest, by appropriate proceedings, the
                    validity or amount of any Charges, Taxes or claims described in Section
                    5.2(a); provided,

                

        	
                    

                    
                    -30-

                    

                

        

        

        	
                    that (i) adequate
                    reserves with respect to such contest are maintained on the books of such
                    Credit Party, in accordance with GAAP; (ii) no Lien shall be imposed to secure
                    payment of such Charges (other than payments to warehousemen and/or bailees)
                    that is superior to any of the Liens securing payment of the Obligations and
                    such contest is maintained and prosecuted continuously and with diligence and
                    operates to suspend collection or enforcement of such Charges, (iii) none of
                    the Collateral becomes subject to forfeiture or loss as a result of such
                    contest, (iv) such Credit Party shall promptly pay or discharge such contested
                    Charges, Taxes or claims and all additional charges, interest, penalties and
                    expenses, if any, and shall deliver to Agent evidence reasonably acceptable to
                    Agent of such compliance, payment or discharge, if such contest is terminated
                    or discontinued adversely to such Credit Party or the conditions set forth in
                    this Section 5.2(b) are no longer met, and (v) Agent has not advised
                    Borrower in writing that Agent reasonably believes that nonpayment or
                    nondischarge thereof could have or result in a Material Adverse
                    Effect.

                    
                                    
                    5.3            
                    Books and Records. Each Credit Party shall keep adequate books and
                    records with respect to its business activities in which proper entries,
                    reflecting all financial transactions, are made in accordance with GAAP and on
                    a basis consistent with the Financial Statements attached as Disclosure
                    Schedule 3.4(a).

                
	 
                

        	
                                
                
                5.4            
                Insurance; Damage to or Destruction of Collateral.
	 
	
                    
                                                    
                    (a)            
                    The Credit Parties shall, at their sole cost and expense, maintain the policies
                    of insurance described on Disclosure Schedule 3.18 as in effect on the
                    date hereof or otherwise in form and amounts and with insurers reasonably
                    acceptable to Agent. Such policies of insurance (or the loss payable and
                    additional insured endorsements delivered to Agent) shall contain provisions
                    pursuant to which the insurer agrees to provide 30 days prior written notice to
                    Agent in the event of any non-renewal, cancellation or amendment of any such
                    insurance policy. If any Credit Party at any time or times hereafter shall fail
                    to obtain or maintain any of the policies of insurance required above or to pay
                    all premiums relating thereto, Agent may at any time or times thereafter obtain
                    and maintain such policies of insurance and pay such premiums and take any
                    other action with respect thereto that Agent deems advisable. Agent shall have
                    no obligation to obtain insurance for any Credit Party or pay any premiums
                    therefor. By doing so, Agent shall not be deemed to have waived any Default or
                    Event of Default arising from any Credit Party’s failure to maintain such
                    insurance or pay any premiums therefor. All sums so disbursed, including
                    reasonable attorneys’ fees, court costs and other charges related
                    thereto, shall be payable on demand by Borrower to Agent and shall be
                    additional Obligations hereunder secured by the Collateral.

                    
                                                    
                    (b)            
                    Agent reserves the right at any time upon any change in any Credit
                    Party’s risk profile (including any change in the product mix maintained
                    by any Credit Party or any laws affecting the potential liability of such
                    Credit Party) to require additional forms and limits of insurance to, in
                    Agent’s opinion, adequately protect both Agent’s and Lender’s
                    interests in all or any portion of the Collateral and to ensure that each
                    Credit Party is protected by insurance in amounts and with coverage customary
                    for its industry. If reasonably requested by Agent, each Credit Party shall
                    deliver to Agent from time to time a report of a reputable insurance broker,
                    reasonably satisfactory to Agent, with respect to its insurance
                    policies.

                

        	
                    

                    
                    -31-

                    

                

        

        

        	
                    
                                                    
                    (c)            
                    Each Credit Party shall deliver to Agent, in form and substance reasonably
                    satisfactory to Agent, endorsements to (i) all “All Risk” and
                    business interruption insurance naming Agent, on behalf of itself and Lenders,
                    as loss payee, and (ii) all general liability and other liability policies
                    naming Agent, on behalf of itself and Lenders, as additional insured. Each
                    Credit Party irrevocably makes, constitutes and appoints Agent (and all
                    officers, employees or agents designated by Agent), so long as any Default or
                    Event of Default has occurred and is continuing or the anticipated insurance
                    proceeds exceed $500,000, as each Credit Party’s true and lawful agent
                    and attorney-in-fact for the purpose of making, settling and adjusting claims
                    under such “All Risk” policies of insurance, endorsing the name of
                    each Credit Party on any check or other item of payment for the proceeds of
                    such “All Risk” policies of insurance other than such claims
                    related to the Montvale Property and for making all determinations and
                    decisions with respect to such “All Risk” policies of insurance
                    other than with respect to the Montvale Property. Agent shall have no duty to
                    exercise any rights or powers granted to it pursuant to the foregoing
                    power-of-attorney. Borrower shall promptly notify Agent of any loss, damage, or
                    destruction to the Collateral in the amount of $250,000 or more, whether or not
                    covered by insurance. After deducting from such proceeds the expenses, if any,
                    incurred by Agent in the collection or handling thereof, Agent may, at its
                    option, apply such proceeds, other than with respect to the Montvale Property,
                    to the reduction of the Obligations in accordance with Section 1.3(d),
                    provided that in the case of insurance proceeds pertaining to any Credit
                    Party other than Borrower and other than with respect to the Montvale Property,
                    such insurance proceeds shall be applied to the Loans owing by Borrower, or
                    permit or require each Credit Party to use such money, or any part thereof, to
                    replace, repair, restore or rebuild the Collateral in a diligent and
                    expeditious manner with materials and workmanship of substantially the same
                    quality as existed before the loss, damage or destruction. Notwithstanding the
                    foregoing, if the casualty giving rise to such insurance proceeds could not
                    reasonably be expected to have a Material Adverse Effect and such insurance
                    proceeds do not exceed $500,000 in the aggregate, Agent shall permit the
                    applicable Credit Party to replace, restore, repair or rebuild the property;
                    provided that if such Credit Party has not completed or entered into
                    binding agreements to complete such replacement, restoration, repair or
                    rebuilding within 180 days of such casualty, Agent may apply such insurance
                    proceeds to the Obligations in accordance with Section 1.3(d);
                    provided further that in the case of insurance proceeds pertaining to
                    any Credit Party other than Borrower, such insurance proceeds shall be applied
                    to the Loans owing by Borrower. All insurance proceeds that are to be made
                    available to Borrower to replace, repair, restore or rebuild the Collateral
                    shall be applied by Agent to reduce the outstanding principal balance of the
                    Revolving Loan (which application shall not result in a permanent reduction of
                    the Revolving Loan Commitment) and upon such application, Agent shall establish
                    a Reserve against the Borrowing Base in an amount equal to the amount of such
                    proceeds so applied. All insurance proceeds made available to any Credit Party
                    that is not a Borrower to replace, repair, restore or rebuild Collateral shall
                    be deposited in a cash collateral account. Thereafter, such funds shall be made
                    available to such Credit Party to provide funds to replace, repair, restore or
                    rebuild the Collateral as follows: (i) Borrower shall request a Revolving
                    Credit Advance be made to such Credit Party in the amount requested to be
                    released; (ii) so long as the conditions set forth in Section 2.2 have
                    been met, Revolving Lenders shall make such Revolving Credit Advance or Agent
                    shall release funds from the cash collateral account; and (iii) in the case of
                    insurance proceeds applied against the Revolving Loan, the Reserve established
                    with respect to such insurance proceeds shall be reduced by the amount of such
                    Revolving Credit Advance. To the

                

        	
                    

                    
                    -32-

                    

                

        

        

        	
                    extent not used to
                    replace, repair, restore or rebuild the Collateral, such insurance proceeds
                    shall be applied in accordance with Section 1.3(d); provided that
                    in the case of insurance proceeds pertaining to any Credit Party other than
                    Borrower, such insurance proceeds shall be applied to the Loans owing by
                    Borrower.

                    
                                    
                    5.5           
                    Compliance with Laws. Each Credit Party shall comply with all federal,
                    state, local and foreign laws and regulations applicable to it, including those
                    relating to ERISA and labor matters and Environmental Laws and Environmental
                    Permits, except to the extent that the failure to comply, individually or in
                    the aggregate, could not reasonably be expected to have a Material Adverse
                    Effect.

                    
                                    
                    5.6           
                    Supplemental Disclosure. From time to time as may be reasonably
                    requested by Agent (which request will not be made more frequently than once
                    each year absent the occurrence and continuance of a Default or an Event of
                    Default), the Credit Parties shall supplement each Disclosure Schedule hereto,
                    or any representation herein or in any other Loan Document, with respect to any
                    matter hereafter arising that, if existing or occurring at the date of this
                    Agreement, would have been required to be set forth or described in such
                    Disclosure Schedule or as an exception to such representation or that is
                    necessary to correct any information in such Disclosure Schedule or
                    representation which has been rendered inaccurate thereby (and, in the case of
                    any supplements to any Disclosure Schedule, such Disclosure Schedule shall be
                    appropriately marked to show the changes made therein); provided that
                    (a) no such supplement to any such Disclosure Schedule or representation shall
                    amend, supplement or otherwise modify any Disclosure Schedule or
                    representation, or be or be deemed a waiver of any Default or Event of Default
                    resulting from the matters disclosed therein, except as consented to by Agent
                    and Requisite Lenders in writing, and (b) no supplement shall be required or
                    permitted as to representations and warranties that relate solely to the
                    Closing Date.

                    
                                    
                    5.7           
                    Intellectual Property. Each Credit Party will conduct its business and
                    affairs without infringement of or interference with any Intellectual Property
                    of any other Person in any material respect.

                    
                                    
                    5.8           
                    Environmental Matters. Each Credit Party shall and shall cause each
                    Person within its control to: (a) conduct its operations and keep and maintain
                    its Real Estate in compliance with all Environmental Laws and Environmental
                    Permits other than noncompliance that could not reasonably be expected to have
                    a Material Adverse Effect; (b) implement any and all investigation,
                    remediation, removal and response actions that are appropriate or necessary to
                    maintain the value and marketability of the Real Estate or to otherwise comply
                    with Environmental Laws and Environmental Permits pertaining to the presence,
                    generation, treatment, storage, use, disposal, transportation or Release of any
                    Hazardous Material on, at, in, under, above, to, from or about any of its Real
                    Estate; (c) notify Agent promptly after such Credit Party becomes aware of any
                    violation of Environmental Laws or Environmental Permits or any Release on, at,
                    in, under, above, to, from or about any Real Estate that is reasonably likely
                    to result in Environmental Liabilities in excess of $100,000; and (d) promptly
                    forward to Agent a copy of any order, notice, request for information or any
                    communication or report received by such Credit Party in connection with any
                    such violation or Release or any other matter relating to any Environmental
                    Laws or Environmental Permits that could reasonably be expected to result in
                    Environmental Liabilities in excess of $250,000, in each case whether or not
                    the Environmental

                

        	
                    

                    
                    -33-

                    

                

        

        

        	
                    Protection Agency or any
                    Governmental Authority has taken or threatened any action in connection with
                    any such violation, Release or other matter. If Agent at any time has a
                    reasonable basis to believe that there may be a violation of any Environmental
                    Laws or Environmental Permits by any Credit Party or any Environmental
                    Liability arising thereunder, or a Release of Hazardous Materials on, at, in,
                    under, above, to, from or about any of its Real Estate, that, in each case,
                    could reasonably be expected to have a Material Adverse Effect, then each
                    Credit Party shall, upon Agent’s written request (i) cause the
                    performance of such environmental audits including subsurface sampling of soil
                    and groundwater, and preparation of such environmental reports, at
                    Borrower’s expense, as Agent may from time to time reasonably request,
                    which shall be conducted by reputable environmental consulting firms reasonably
                    acceptable to Agent and shall be in form and substance reasonably acceptable to
                    Agent, and (ii) permit Agent or its representatives to have access to all Real
                    Estate for the purpose of conducting such environmental audits and testing as
                    Agent deems appropriate, including subsurface sampling of soil and groundwater.
                    Borrower shall reimburse Agent for the costs of such audits and tests and the
                    same will constitute a part of the Obligations secured hereunder.

                    
                                    
                    5.9           
                    Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real
                    Estate Purchases. Upon the request of Agent, each Credit Party shall obtain
                    a landlord’s agreement, mortgagee agreement or bailee letter, as
                    applicable, from the lessor of each leased property, mortgagee of owned
                    property or bailee with respect to any warehouse, processor or converter
                    facility or other location where Collateral is stored or located, which
                    agreement or letter shall contain a waiver or subordination of all Liens or
                    claims that the landlord, mortgagee or bailee may assert against the Collateral
                    at that location, and shall otherwise be reasonably satisfactory in form and
                    substance to Agent. After the Original Closing Date, no real property or
                    warehouse space shall be leased by any Credit Party and no Inventory shall be
                    shipped to a processor or converter under arrangements established after the
                    Original Closing Date without the prior written consent of Agent (which
                    consent, in Agent’s discretion, may be conditioned upon the establishment
                    of Reserves acceptable to Agent) or, unless and until a satisfactory landlord
                    agreement or bailee letter, as appropriate, shall first have been obtained with
                    respect to such location. Each Credit Party shall timely and fully pay and
                    perform its obligations under all leases and other agreements with respect to
                    each leased location or public warehouse where any Collateral is or may be
                    located. To the extent permitted hereunder, if any Credit Party proposes to
                    acquire a fee ownership interest in Real Estate after the Original Closing
                    Date, it shall first provide to Agent a mortgage or deed of trust granting
                    Agent a first priority Lien on such Real Estate, together with environmental
                    audits, mortgage title insurance commitment, real property survey, local
                    counsel opinion(s), and, if required by Agent, supplemental casualty insurance
                    and flood insurance, and such other documents, instruments or agreements
                    reasonably requested by Agent, in each case, in form and substance reasonably
                    satisfactory to Agent.

                    
                                    
                    5.10           
                    Further Assurances. Each Credit Party executing this Agreement agrees
                    that it shall and shall cause each other Credit Party to, at such Credit
                    Party’s expense and upon request of Agent, duly execute and deliver, or
                    cause to be duly executed and delivered, to Agent such further instruments and
                    do and cause to be done such further acts as may be necessary or proper in the
                    reasonable opinion of Agent to carry out more effectively the provisions and
                    purposes of this Agreement or any other Loan Document.

                

        	
                    

                    
                    -34-

                    

                

        

        

        	
                6.
                           NEGATIVE
                COVENANTS
	 
	
                                                  
                Each Credit Party executing
                this Agreement jointly and severally agrees as to all Credit Parties that from and
                after the date hereof until the Termination Date:

        	 
                
	
                    
                                    
                    6.1
                               
                    Mergers, Subsidiaries, Etc.  No Credit Party shall directly or
                    indirectly, by operation of law or otherwise, (a) form or acquire any
                    Subsidiary, or (b) merge with, consolidate with, acquire all or substantially
                    all of the assets or Stock of, or otherwise combine with or acquire, any
                    Person.

                    
                                   
                     
                    6.2
                               
                    Investments; Loans and Advances. Except as otherwise expressly permitted
                    by this Section 6, no Credit Party shall make or permit to exist any
                    investment in, or make, accrue or permit to exist loans or advances of money
                    to, any Person, through the direct or indirect lending of money, holding of
                    securities or otherwise, except that: (a) each Credit Party may maintain its
                    existing investments (other than investments in the form of intercompany loans
                    or advances by Borrower to Butler India) in its Subsidiaries as of the Closing
                    Date; (b) each Credit Party may make investments in Butler Foundation to the
                    extent necessary to match funds consistent with prior practices in an aggregate
                    amount not to exceed $100,000 during any Fiscal Year; (c) each Credit Party may
                    make rental payments to Butler NJ in an aggregate amount not to exceed the
                    amounts required under the Montvale Lease from time to time; (d) so long as no
                    Default or Event of Default has occurred and is continuing, Borrower may invest
                    no more than $1,000,000 of funds in overnight investments if and to the extent
                    such funds have not been transferred at the close of business; (e) so long as
                    no Default or Event of Default has occurred and is continuing and there is no
                    outstanding Revolving Loan balance, Borrower may make investments, subject to
                    Control Letters in favor of Agent for the benefit of Lenders or otherwise
                    subject to a perfected security interest in favor of Agent for the benefit of
                    Lenders, in (i)
                    marketable direct obligations issued or unconditionally guaranteed by the
                    United States of America or any agency thereof maturing within one year from
                    the date of acquisition thereof, (ii) commercial paper maturing no more than
                    one year from the date of creation thereof and currently having the highest
                    rating obtainable from either Standard & Poor’s Ratings Group or
                    Moody’s Investors Service, Inc., (iii) certificates of deposit maturing
                    no more than one year from the date of creation thereof issued by commercial
                    banks incorporated under the laws of the United States of America, each having
                    combined capital, surplus and undivided profits of not less than $300,000,000
                    and having a senior unsecured rating of “A” or better by a
                    nationally recognized rating agency (an “A Rated Bank”),
                    (iv) time deposits maturing no more than 30 days from the date of creation
                    thereof with A Rated Banks and (v) mutual funds that invest solely in one or
                    more of the investments described in clauses (i) through (iv) above; (f)
                    Borrower may make investments in other Credit Parties in the form of
                    intercompany loans and advances permitted to be incurred by such Credit Parties
                    pursuant to Section 6.3(a)(vi); and (g) Borrower may make investments in
                    Butler India in the form of intercompany loans and advances in an aggregate
                    amount not to exceed $2,000,000 at any time so long as Butler India is
                    creditworthy as determined by Agent; provided, that with respect to the
                    intercompany loans permitted under clauses (f)  and (g) of
                    this section: (A) Borrower shall record all intercompany transactions on its
                    books and records in a manner reasonably satisfactory to Agent; (B) at the time
                    any such intercompany loan or advance is made by Borrower and after giving
                    effect thereto, Borrower shall be Solvent; (C) no Default or Event of Default
                    would occur and be continuing after giving

                

        	
                    

                    
                    -35-

                    

                

        

        

        	effect to any
                such proposed intercompany loan; and (D) Borrower shall have Borrowing Availability
                of not less than $3,000,000 after giving effect to such intercompany
                loan.
	 

        	 	
                6.3           
                Indebtedness.

        	 
                
	
                    
                                                    
                    (a)
                                
                    No Credit Party shall create, incur, assume or permit to exist any
                    Indebtedness, except (without duplication) (i) Indebtedness secured by purchase
                    money security interests and Capital Leases permitted in Section 6.7(c),
                    (ii) the Loans and the other Obligations, (iii) unfunded pension fund and other
                    employee benefit plan obligations and liabilities to the extent they are
                    permitted to remain unfunded under applicable law, (iv) existing Indebtedness
                    described in Disclosure Schedule 6.3, (v) Indebtedness consisting of
                    intercompany loans and advances made by Borrower to any other Credit Party that
                    is a Guarantor; provided, that: (A) each such Guarantor shall have
                    executed and delivered to Borrower, on the Original Closing Date, a demand note
                    (collectively, the “Intercompany Notes”) to evidence any
                    such intercompany Indebtedness owing at any time by such Guarantor to Borrower,
                    which Intercompany Notes shall be in form and substance reasonably satisfactory
                    to Agent and shall be pledged and delivered to Agent pursuant to the applicable
                    Pledge Agreement or Security Agreement as additional collateral security for
                    the Obligations; (B) Borrower shall record all intercompany transactions on its
                    books and records in a manner reasonably satisfactory to Agent; (C) at the time
                    any such intercompany loan or advance is made by Borrower and after giving
                    effect thereto, Borrower shall be Solvent; (D) no Default or Event of Default
                    would occur and be continuing after giving effect to any such proposed
                    intercompany loan; (E) in the case of any such intercompany loans made by
                    Borrower, Borrower shall have Borrowing Availability of not less than
                    $3,000,000 after giving effect to such intercompany loan; the aggregate balance
                    of all such intercompany loans owing to Borrower after the Original Closing
                    Date shall not exceed $2,000,000 at any time; and (F) the recipient of any such
                    intercompany loans shall be creditworthy as determined by Agent, (vi) subject
                    to the Intercreditor Agreement, the Second Lien Indebtedness in an aggregate
                    principal amount not in excess of the Second Lien Cap (as defined in the
                    Intercreditor Agreement) at any time outstanding, and (vii) Indebtedness of any
                    Credit Party incurred to finance insurance premiums in a principal amount not
                    in excess of the casualty or other insurance premiums to be paid by any Credit
                    Party for a one-year period beginning on the date of any incurrence of such
                    Indebtedness and secured by the insurance policies being so
                    financed.

                    
                                                    
                    (b)
                               
                    No Credit Party shall, directly or indirectly, voluntarily purchase, redeem,
                    defease or prepay any principal of, premium, if any, interest or other amount
                    payable in respect of any Indebtedness, other than (i) the Obligations;
                    (ii) Indebtedness secured by a Permitted Encumbrance if the asset securing such
                    Indebtedness has been sold or otherwise disposed of in accordance with
                    Section 6.8(b); (iii) prepayments of Second Lien Indebtedness to the
                    extent permitted by the Intercreditor Agreement; (iv) prepayments of the
                    Montvale Property Mortgage Loan with net proceeds from the issuance of the
                    Holdings common Stock or Permitted Preferred Stock; and (v) as otherwise
                    permitted in Section 6.14.

                
	 
                

        	 	
                6.4           
                Employee Loans and Affiliate Transactions.
	
                	 

        	
                                            
                (a)       No
                Credit Party shall, and no Credit Party shall suffer or permit any of its
                Subsidiaries to, enter into any transaction with any Affiliate of Holdings or of
                any such

        	
                    

                    
                    -36-

                    

                

        

        

        	
                    Subsidiary except (i) as
                    expressly permitted by this Agreement, (ii) in the ordinary course of business
                    and pursuant to the reasonable requirements of the business of such Credit
                    Party or such Subsidiary; provided that, in case of this clause (ii), such
                    transaction shall be upon fair and reasonable terms no less favorable to such
                    Credit Party or such Subsidiary than would be obtained in a comparable
                    arm’s length transaction with a Person not an Affiliate of the Borrower
                    or such Subsidiary and which are disclosed in writing to the Agent and (iii)
                    the stock option plans described in Disclosure Schedule 6.4.

                    
                                                    
                    (b)       No
                    Credit Party shall enter into any lending or borrowing transaction with any
                    employees of any Credit Party, except (i) loans to its respective employees on
                    an arm’s-length basis in the ordinary course of business consistent with
                    past practices for travel and entertainment expenses, relocation costs and
                    similar purposes up to a maximum of $50,000 to any employee and up to a maximum
                    of $1,000,000 in the aggregate at any one time outstanding, (ii) advances to
                    the Specified Employees for the purpose of exercising stock options pursuant to
                    the stock option plans described in Disclosure Schedule 6.4 up to a
                    maximum of $1,000,000 to any employee and up to a maximum of $6,000,000 in the
                    aggregate at any one time outstanding, provided that, in each case, if the
                    exercise of stock options under stock option plans described in Disclosure
                    Schedule 6.4 require the Credit Parties to exceed such amounts, the Credit
                    Parties and the Agent shall negotiate in good faith to establish new caps which
                    are mutually agreeable, and (iii) advances to Edward M. Kopko pursuant to that
                    certain Employment Agreement dated December 17, 1991.

                    
                                    
                    6.5          
                    Capital Structure and Business. No Credit Party shall: (a) make any
                    changes in any of its business objectives, purposes or operations that could in
                    any way adversely affect the repayment of the Loans or any of the other
                    Obligations or could reasonably be expected to have or result in a Material
                    Adverse Effect (the parties agreeing that this clause (a) will not be
                    considered operative unless less than 75% of such Credit Party’s
                    consolidated revenue is derived from the combination of staffing and business
                    services outsourcing); (b) make any change in its capital structure as
                    described in Disclosure Schedule 3.8, including the issuance or sale of
                    any shares of Stock, warrants (other than warrants issued as of the Original
                    Closing Date) or other securities convertible into Stock or any revision of the
                    terms of its outstanding Stock; provided, that Holdings may issue or
                    sell (x) its common Stock and/or Permitted Preferred Stock for cash,
                    provided, that no Change of Control occurs after giving effect thereto,
                    and (y) its common Stock and options to purchase its common stock pursuant to
                    the employee stock option plans described in Disclosure Schedule 6.4,
                    provided, that the aggregate value of all stock issuance pursuant to
                    such plans shall not exceed 5% of the authorized Stock of Holdings or any
                    Credit Party in any year; (c) amend its charter or bylaws in a manner that
                    would adversely affect Agent or Lenders or such Credit Party’s duty or
                    ability to repay the Obligations, or result in a Material Adverse Effect; or
                    (d) engage in any business other than the businesses currently engaged in by it
                    or businesses reasonably related thereto which in the aggregate exceed 10% of s
                    uch Credit Party’s consolidated revenue. The Credit Parties shall not
                    permit AAC Corp. or Syvlan Insurance Co., Ltd. to hold any assets or to incur
                    or be liable for any Indebtedness or Guaranteed Indebtedness. Holdings will
                    engage in no business other than its ownership of the Stock of Butler NJ,
                    Butler Foundation,AAC Corp., Sylvan Insurance Co. and Borrower. Butler
                    Foundation shall remain a not-for-profit corporation qualified under Section
                    501(c)(3) of the United States Internal Revenue Code and no Credit Party shall
                    engage in any transaction (whether by way of

                

        	
                    

                    
                    -37-

                    

                

        

        

        	contribution,
                loan, investment, disposition or otherwise) with Butler Foundation, other than
                investments permitted pursuant to Section 6.4(b).

        	 
                
	
                    
                                    
                    6.6
                               
                    Guaranteed Indebtedness. No Credit Party shall create, incur, assume or
                    permit to exist any Guaranteed Indebtedness except (a) by endorsement of
                    instruments or items of payment for deposit to the general account of any
                    Credit Party, (b) for Guaranteed Indebtedness incurred for the benefit of any
                    other Credit Party if the primary obligation is expressly permitted by this
                    Agreement, and (c) the guaranty of the mortgage on the Montvale Property, which
                    guaranty shall be unsecured.

                    
                                   
                     
                    6.7
                               
                    Liens. No Credit Party shall create, incur, assume or permit to exist
                    any Lien on or with respect to its Accounts or any of its other properties or
                    assets (whether now owned or hereafter acquired) except for (a) Permitted
                    Encumbrances; (b) Liens in existence on the date hereof and summarized on
                    Disclosure Schedule 6.7 securing Indebtedness described on Disclosure
                    Schedule 6.3 and permitted refinancings, extensions and renewals thereof,
                    including extensions or renewals of any such Liens; provided that the principal
                    amount so secured is not increased and the Lien does not attach to any other
                    property; (c) Liens securing obligations in re spect of Second Lien
                    Indebtedness permitted by Section 6.3(a)(vi), but only if (i) the
                    property subject to such Lien is also subject to an enforceable and perfected
                    Lien securing all of the Obligations and (ii) the Lien securing obligations in
                    respect of such Second Lien Indebtedness is in all respects subject to the
                    Intercreditor Agreement; and (d) Liens created after the date hereof by
                    conditional sale or other title retention agreements (including Capital Leases)
                    or in connection with purchase money Indebtedness with respect to Equipment and
                    Fixtures acquired by any Credit Party in the ordinary course of business,
                    involving the incurrence of an aggregate amount of purchase money Indebtedness
                    and Capital Lease Obligations of not more than $2,000,000 outstanding at any
                    one time for all such Liens (provided that such Liens attach only to the
                    assets subject to such purchase money debt and such Indebtedness is incurred
                    within 20 days following such purchase and does not exceed 100% of the purchas
                    e price of the subject assets). In addition, no Credit Party shall become a
                    party to any agreement, note, indenture or instrument, or take any other
                    action, that would prohibit the creation of a Lien on any of its properties or
                    other assets in favor of Agent, on behalf of itself and Lenders, as additional
                    collateral for the Obligations, except operating leases, Capital Leases or
                    Licenses which prohibit Liens upon the assets that are subject
                    thereto.

                    
                                    
                    6.8
                               
                    Sale of Stock and Assets. No Credit Party shall sell, transfer, convey,
                    assign or otherwise dispose of any of its properties or other assets, including
                    the Stock of any of its Subsidiaries (whether in a public or a private offering
                    or otherwise) or any of its Accounts, other than (a) the sale of Inventory in
                    the ordinary course of business, (b) the sale, transfer, conveyance or other
                    disposition by a Credit Party of Equipment, Fixtures or Real Estate that are
                    obsolete or no longer used or useful in such Credit Party’s business and
                    having a sales price not exceeding $250,000 in any single transaction or
                    $500,000 in the aggregate in any Fi scal Year, and (c) the sale of the Montvale
                    Property that (i) results in Net Montvale Sale Proceeds (as defined in the
                    Second Lien Credit Agreement) of at least$2,000,000, excluding any return of
                    cash collateral securing the Montvale Property Letter of Credit (as defined in
                    the Second Lien Credit Agreement) to the extent otherwise included in cash net
                    proceeds or (ii) is on terms and conditions acceptable to the Agent. With
                    respect to any disposition of assets or other properties permitted pursuant to
                    clauses (b) and (c) above, subject to Section 1.3(b), Agent
                    agrees on

                

        	
                    

                    
                    -38-

                    

                

        

        

        	
                    reasonable prior written
                    notice to release its Lien on such assets or other properties in order to
                    permit the applicable Credit Party to effect such disposition and shall execute
                    and deliver to Borrower, at Borrower’s expense, appropriate UCC-3
                    termination statements and other releases as reasonably requested by
                    Borrower.

                    
                                    
                    6.9
                               
                    ERISA. No Credit Party shall, or shall cause or permit any ERISA
                    Affiliate to, cause or permit to occur an event that could result in the
                    imposition of a Lien under Section 412 of the IRC or Section 302 or 4068 of
                    ERISA or cause or permit to occur an ERISA Event to the extent such ERISA Event
                    could reasonably be expected to have a Material Adverse Effect.

                    
                                    
                    6.10         
                    Financial Covenants. Borrower shall not breach or fail to comply with
                    any of the Financial Covenants.

                    
                                   
                     
                    6.11
                              
                    Hazardous Materials. No Credit Party shall cause or permit a Release of
                    any Hazardous Material on, at, in, under, above, to, from or about any of the
                    Real Estate where such Release would (a) violate in any respect, or form the
                    basis for any Environmental Liabilities under, any Environmental Laws or
                    Environmental Permits or (b) otherwise adversely impact the value or
                    marketability of any of the Real Estate or any of the Collateral, other than
                    such violations or Environmental Liabilities that could not reasonably be
                    expected to have a Material Adverse Effect.

                    
                                    
                    6.12
                             
                    Sale-Leasebacks. No Credit Party shall engage in any sale-leaseback,
                    synthetic lease or similar transaction involving any of its assets other than a
                    sale-leaseback of the Montvale Property on terms and conditions acceptable to
                    the Agent.

                    
                                    
                    6.13
                               
                    Cancellation of Indebtedness. No Credit Party shall cancel any claim or
                    debt owing to it, except for reasonable consideration negotiated on an
                    arm’s-length basis and in the ordinary course of its business consistent
                    with past practices.

                    
                                    
                    6.14
                             
                    Restricted Payments. No Credit Party shall make any Restricted Payment,
                    except (a) intercompany loans and advances between Borrower and Guarantors to
                    the extent permitted by Section 6.3, (b) dividends and distributions by
                    Subsidiaries of Borrower paid to Borrower, (c) employee loans permitted under
                    Section 6.4(b), (d) payments of principal and interest of Intercompany
                    Notes issued in accordance with Section 6.3, (e) dividends or
                    distributions made by Holdings consisting solely of Holdings common stock, or,
                    in the case of dividends or distributions, to holders of Holdings’
                    preferred stock, consisting of additional shares of Stock of th e same series
                    or class, (f) Restricted Payments consisting of the purchase, redemption or
                    other retirement of outstanding shares of Holdings preferred stock to the
                    extent made with net proceeds from the issuance of Holdings common stock or
                    Permitted Preferred Stock within three (3) Business Days of receipt of such net
                    proceeds and (g) dividends or distributions by Borrowerto Holdings which are
                    used immediately by Holdings to pay dividends required to be paid in cash
                    pursuant to the terms of Holdings’ series A preferred stock issued by
                    Holdings or Permitted Preferred Stock, but in each case, only to the extent
                    that (i) Borrowing Availability for the 30- day period preceding such dividend
                    would have exceeded $2,500,000 if such dividend had been paid, and any
                    Indebtedness incurred to make pay such dividend had been incurred, on the first
                    day of such 30-day period, (ii) each of the financial covenants set forth in
                    Annex G are met on a pro forma basis giving effect to such dividend and (iii)
                    no Default or Ev ent of Default exists.

                

        	
                    

                    
                    -39-

                    

                

        

        

        	
                    
                                    
                    6.15
                               
                    Change of Corporate Name or Location; Change of Fiscal Year. No Credit
                    Party shall (a) change its corporate name or trade name, or (b) change its
                    chief executive office, principal place of business, corporate offices or
                    warehouses or locations at which Collateral is held or stored, or the location
                    of its records concerning the Collateral, in each case without at least 30 days
                    prior written notice to Agent and after Agent’s written acknowledgment
                    that any reasonable action requested by Agent in connection therewith,
                    including to continue the perfection of any Liens in favor of Agent, on behalf
                    of Lenders, in any Collateral, has been compl eted or taken, and
                    provided that any such new location shall be in the continental United
                    States. Without limiting the foregoing, no Credit Party shall change its name,
                    identity or corporate structure in any manner that might make any financing or
                    continuation statement filed in connection herewith seriously misleading within
                    the meaning of Section 9-402(7) of the Code or any other then applicable
                    provision of the Code except upon prior written notice to Agent and Lenders and
                    after Agent’s written acknowledgment that any reasonable action requested
                    by Agent in connection therewith, including to continue the perfection of any
                    Liens in favor of Agent, on behalf of Lenders, in any Collateral, has been
                    completed or taken.

                    
                                    
                    6.16
                             
                    No Impairment of Intercompany Transfers. No Credit Party shall directly
                    or indirectly enter into or become bound by any agreement, instrument,
                    indenture or other obligation (other than this Agreement and the other Loan
                    Documents) that could directly or indirectly restrict, prohibit or require the
                    consent of any Person with respect to the payment of dividends or distributions
                    or the making or repayment of intercompany loans by a Subsidiary of Borrower to
                    Borrower.

                    
                                    
                    6.17
                             
                    No Speculative Transactions. No Credit Party shall engage in any
                    transaction involving commodity options, futures contracts or similar
                    transactions, except solely to hedge against fluctuations in the prices of
                    commodities owned or purchased by it and the values of foreign currencies
                    receivable or payable by it and interest swaps, caps or collars.

                    
                                    
                    6.18         
                    Leases; Real Estate Purchases. Other than in connection with a
                    sale-leaseback transaction permitted under Section 6.12, no Credit Party shall
                    enter into any operating lease for Equipment or Real Estate, if the aggregate
                    of all such operating lease payments payable in any year for all Credit Parties
                    on a consolidated basis would exceed $5,000,000. No Credit Party shall purchase
                    a fee simple ownership interest in Real Estate.

                    
                                   
                     
                    6.19
                             
                    Sale or Discount of Accounts. No Credit Party shall sell, or allow any
                    other Credit Party to sell, or discount or otherwise dispose of any of its
                    Accounts other than in connection with (i) the pledge and assignment to Agent
                    for the benefit of the Lenders under the Loan Documents and (ii) with respect
                    to Accounts owing by companies in bankruptcy.

                
	 
                

        	
                                
                 
                6.20
                         
                Reserved.

        	 
                
	
                    
                                    
                    6.21           
                    No Further Negative Pledge. Except as (a) set forth in the Second Lien
                    Loan Documents, (b) with respect to specific property encumbered to secure
                    payment of particular Indebtedness or to be sold pursuant to an executed
                    agreement with respect to a permitted asset sale under Section 6.8 of
                    this Agreement and (c) with respect to restrictions by reason of customary
                    provisions restricting assignments, subletting or other transfers contained in
                    leases, licenses and similar agreements entered into in the ordinary course of
                    business (provided that

                

        	
                    

                    
                    -40-

                    

                

        

        

        	such
                restrictions are limited to the property or assets secured by such Liens or the
                property or assets subject to such leases, licenses or similar agreements, as the
                case may be), no Credit Party shall enter into any agreement prohibiting the
                creation or assumption of any Lien upon any of its properties or assets, whether
                now owned or hereafter acquired, to secure the Obligations.

        	 
                
	
                    
                                    
                    6.22
                               
                    Amendments or Waivers of Certain Documents; Second Lien Loan Document
                    Notices. (a)The Borrower shall not, and shall not permit any Credit Party
                    to, directly or indirectly, amend or otherwise change, cancel, terminate or
                    waive the terms of (i) any document governing Indebtedness outstanding as of
                    the date hereof (except for the termination of the Montvale Property Mortgage)
                    and (ii) any Second Lien Loan Document other than as permitted by the
                    Intercreditor Agreement.

                
	 
                

        	
                                                
                (b)
                           
                The Borrower will not, and will not permit any of its Subsidiaries to, make (or
                give any notice or offer in respect of) any voluntary or optional payment of the
                Second Lien Indebtedness except as permitted by the Intercreditor
                Agreement.
	 
	
                                                
                (c)
                            
                Whenever Borrower gives or serves upon any other party any notice, demand, request,
                consent, approval, declaration or other communication pursuant to any Second Lien
                Loan Document, a copy of each such notice, demand, request, consent, approval,
                declaration or other communication also shall be served on Agent in the manner set
                forth in Section 11.10  of this Agreement.
	 
	
                7.
                           
                TERM
	 
	
                                
                7.1
                           
                Termination. The financing arrangements contemplated hereby shall be in
                effect until the Commitment Termination Date, and the Loans and all other
                Obligations shall be automatically due and payable in full on such
                date.
	 
	
                                
                7.2
                           
                Survival of Obligations Upon Termination of Financing Arrangements. Except
                as otherwise expressly provided for in the Loan Documents, no termination or
                cancellation (regardless of cause or procedure) of any financing arrangement under
                this Agreement shall in any way affect or impair the obligations, duties and
                liabilities of the Credit Parties or the rights of Agent and Lenders relating to
                any unpaid portion of the Loans or any other Obligations, due or not due,
                liquidated, contingent or unliquidated or any transaction or event occurring prior
                to such termination, or any transaction or event, the performance of which is
                required after the

                Commitment Termination Date. Except as otherwise expressly provided herein or in
                any other Loan Document, all undertakings, agreements, covenants, warranties and
                representations of or binding upon the Credit Parties, and all rights of Agent and
                each Lender, all as contained in the Loan Documents, shall not terminate or expire,
                but rather shall survive any such termination or cancellation and shall continue in
                full force and effect until the Termination Date; provided, that the
                provisions of Section 11, the payment obligations under Sections 1.15 and
                1.16, and the indemnities contained in the Loan Documents shall survive the
                Termination Date.
	 
	
                8.
                            EVENTS
                OF DEFAULT; RIGHTS AND REMEDIES
	 
	
                                
                8.1         
                Events of Default. The occurrence of any one or more of the following events
                (regardless of the reason therefor) shall constitute an “Event of
                Default” hereunder:

        	
                    

                    
                    -41-

                    

                

        

        

        	
                    
                                                    
                    (a)            
                    Borrower (i) fails to make any payment of principal of, or interest on, or Fees
                    owing in respect of, the Loans or any of the other Obligations when due and
                    payable, or (ii) fails to pay or reimburse Agent or Lenders for any expense
                    reimbursable hereunder or under any other Loan Document within 10 days
                    following Agent’s demand for such reimbursement or payment of
                    expenses.

                    
                                                    
                    (b)           
                    Any Credit Party fails or neglects to perform, keep or observe any of the
                    provisions of Sections 1.4, 1.8, 5.4(a), or 6, or any of the provisions
                    set forth in Annexes C or G, respectively.

                
	 
                

        	
                                                (c)
                            
                Borrower fails or neglects to perform, keep or observe any of the provisions of
                Section 4 or any provisions set forth in Annexes E or F,
                respectively, and the same shall remain unremedied for 3 days or more.

        	 
                
	
                    
                                                    
                    (d)           
                    Any Credit Party fails or neglects to perform, keep or observe any other
                    provision of this Agreement or of any of the other Loan Documents (other than
                    any provision embodied in or covered by any other clause of this Section
                    8.1) and the same shall remain unremedied for 20 days or more.

                    
                                                    
                    (e)            
                    (i) A “Default” or “Event of Default” (or words having
                    similar meaning) under and as defined in the Second Lien Credit Agreement shall
                    have occurred and be continuing; or (ii) a default or breach occurs under any
                    other agreement, document or instrument to which any Credit Party is a party
                    that is not cured within any applicable grace period therefor (other than as
                    provided in the preceding subsection (i)), and such default or breach (a)
                    involves the failure to make any payment when due in respect of any
                    Indebtedness or Guaranteed Indebtedness (other than due hereunder or under the
                    Second Lien Loan Documents) o f any Credit Party in excess of $500,000 in the
                    aggregate (including (x) undrawn committed or available amounts and (y) amounts
                    owing to all creditors under any combined or syndicated credit arrangements),
                    or (b) causes, or permits any holder of such Indebtedness or Guaranteed
                    Indebtedness or a trustee to cause, Indebtedness or Guaranteed Indebtedness or
                    a portion thereof in excess of $500,000 in the aggregate to become due prior to
                    its stated maturity or prior to its regularly scheduled dates of payment, or
                    cash collateral to be demanded in respect thereof, in each case, regardless of
                    whether such default is waived, or such right is exercised, by such holder or
                    trustee.

                    
                                                    
                    (f)             
                    Any information contained in any Borrowing Base Certificate is untrue or
                    incorrect in any respect, or any representation or warranty herein or in any
                    Loan Document or in any written statement, report, financial statement or
                    certificate (other than a Borrowing Base Certificate) made or delivered to
                    Agent or any Lender by any Credit Party is untrue or incorrect in any material
                    respect as of the date when made or deemed made.

                    
                                                    
                    (g)           
                    Assets of any Credit Party with a fair market value of $250,000 or more are
                    attached, seized, levied upon or subjected to a writ or distress warrant, or
                    come within the possession of any receiver, trustee, custodian or assignee for
                    the benefit of creditors of any Credit Party and such condition continues for
                    30 days or more.

                

        	
                    

                    
                    -42-

                    

                

        

        

        	
                    
                                                    
                    (h)           
                    A case or proceeding is commenced against any Credit Party seeking a decree or
                    order in respect of such Credit Party (i) under the Bankruptcy Code or any
                    other applicable federal, state or foreign bankruptcy or other similar law,
                    (ii) appointing a custodian, receiver, liquidator, assignee, trustee or
                    sequestrator (or similar official) for such Credit Party or for any substantial
                    part of any such Credit Party’s assets, or (iii) ordering the winding-up
                    or liquidation of the affairs of such Credit Party, and such case or proceeding
                    shall remain undismissed or unstayed for 60 days or more or a decree or order
                    granting the relief sough t in such case or proceeding by a court of competent
                    jurisdiction.

                
	 
                

        	
                                                
                (i)           
                Any Credit Party (i) files a petition seeking relief under the Bankruptcy Code or
                any other applicable federal, state or foreign bankruptcy or other similar law,
                (ii) consents to or fails to contest in a timely and appropriate manner to the
                institution of proceedings thereunder or to the filing of any such petition or to
                the appointment of or taking possession by a custodian, receiver, liquidator,
                assignee, trustee or sequestrator (or similar official) for such Credit Party or
                for any substantial part of any such Credit Party’s assets, (iii) makes an
                assignment for the benefit of creditors, or (iv) takes any action in furt herance
                of any of the foregoing, or (v) admits in writing its inability to, or is generally
                unable to, pay its debts as such debts become due.
	 
	
                                                
                (j)           
                A final judgment or judgments for the payment of money in excess of $250,000 in the
                aggregate at any time are outstanding against one or more of the Credit Parties and
                the same are not, within 30 days after the entry thereof, discharged or execution
                thereof stayed or bonded pending appeal, or such judgments are not discharged prior
                to the expiration of any such stay.

        	 
                
	
                    
                                                    
                    (k)           
                    Any material provision of any Loan Document for any reason ceases to be valid,
                    binding and enforceable in accordance with its terms (or any Credit Party shall
                    challenge the enforceability of any Loan Document or shall assert in writing,
                    or engage in any action or inaction based on any such assertion, that any
                    provision of any of the Loan Documents has ceased to be or otherwise is not
                    valid, binding and enforceable in accordance with its terms), or any Lien
                    created under any Loan Document ceases to be a valid and perfected first
                    priority Lien (except as otherwise permitted herein or therein) in any of the
                    Collateral purported to be covered thereby.

                
	 
                

        	
                                                
                 
                (l)           
                Any Change of Control occurs.
	
                
	
                

        	 
	
                                                
                (m)          
                Any event occurs, whether or not insured or insurable, as a result of which
                revenue-producing activities cease or are substantially curtailed at any facility
                of Borrower generating more than 10% of Borrower’s revenues for the Fiscal
                Year preceding such event and such cessation or curtailment continues for more than
                30 days, unless such revenue-producing activity can be continued elsewhere within
                such period of time without disruption in the business cycle.
	 

        	 	
                8.2           
                Remedies.
	
                	 

        	
                                               
                (a)           
                If any Default or Event of Default has occurred and is continuing, Agent may (and
                at the written request of the Requisite Revolving Lenders shall), without
                notice,

        	
                    

                    
                    -43-

                    

                

        

        

        	
                    suspend the Revolving
                    Loan facility with respect to additional Advances and/or the incurrence of
                    additional Letter of Credit Obligations, whereupon any additional Advances and
                    additional Letter of Credit Obligations shall be made or incurred in
                    Agent’s sole discretion (or in the sole discretion of the Requisite
                    Revolving Lenders, if such suspension occurred at their direction) so long as
                    such Default or Event of Default is continuing. If any Event of Default has
                    occurred and is continuing, Agent may (and at the written request of Requisite
                    Lenders shall), without notice except as otherwise expressly provided herein,
                    increase the rate of interest applicable to the Loans and the Letter of Credit
                    Fees to the Default Rate.

                    
                                                    
                    (b)           
                    If any Event of Default has occurred and is continuing, Agent may (and at the
                    written request of the Requisite Lenders shall), without notice: (i) terminate
                    the Revolving Loan facility with respect to further Advances or the incurrence
                    of further Letter of Credit Obligations; (ii) declare all or any portion of the
                    Obligations, including all or any portion of any Loan to be forthwith due and
                    payable, and require that the Letter of Credit Obligations be cash
                    collateralized as provided in Annex B, all without presentment, demand,
                    protest or further notice of any kind, all of which are expressly waived by
                    Borrower and each other Cre dit Party; or (iii) exercise any rights and
                    remedies provided to Agent under the Loan Documents or at law or equity,
                    including all remedies provided under the Code; provided, that upon the
                    occurrence of an Event of Default specified in Sections 8.1(h) or (i),
                    the Commitments shall be immediately terminated and all of the Obligations,
                    including the Revolving Loan, shall become immediately due and payable without
                    declaration, notice or demand by any Person.

                    
                                    
                    8.3           
                    Waivers by Credit Parties. Except as otherwise provided for in this
                    Agreement or by applicable law, each Credit Party waives: (a) presentment,
                    demand and protest and notice of presentment, dishonor, notice of intent to
                    accelerate, notice of acceleration, protest, default, nonpayment, maturity,
                    release, compromise, settlement, extension or renewal of any or all commercial
                    paper, accounts, contract rights, documents, instruments, chattel paper and
                    guaranties at any time held by Agent on which any Credit Party may in any way
                    be liable, and hereby ratifies and confirms whatever Agent may do in this
                    regard, (b) all rights to notice and a hearing prior to Agent’s taking
                    possession or control of, or to Agent’s replevy, attachment or levy
                    upon, the Collateral or any bond or security that might be required by any
                    court prior to allowing Agent to exercise any of its remedies, and (c) the
                    benefit of all valuation, appraisal, marshaling and exemption laws.

                
	 
                

        	
                9.
                           ASSIGNMENT AND
                PARTICIPATIONS; APPOINTMENT OF AGENT
	 

        	 	
                9.1           
                Assignment and Participations.

        	 
                
	
                    
                                                    
                    (a)           
                    Subject to the terms of this Section 9.1, any Lender may make an
                    assignment to a Qualified Assignee of, or sale of participations in, at any
                    time or times, the Loan Documents, Loans, Letter of Credit Obligations and any
                    Commitment or any portion thereof or interest therein, including any
                    Lender’s rights, title, interests, remedies, powers or duties thereunder.
                    Any assignment by a Lender shall: (i) require the consent of Agent (which
                    consent shall not be unreasonably withheld or delayed with respect to a
                    Qualified Assignee) and the execution of an assignment agreement (an
                    “Assignment Agreement” substantially in the form attached
                    hereto as Exhibit 9.1 (a) and otherwise in form and substance reasonably
                    satisfactory to, and acknowledged by, Agent; (ii) be conditioned on such
                    assignee Lender representing to the

                

        	
                    

                    
                    -44-

                    

                

        

        

        	
                    assigning Lender and
                    Agent that it is purchasing the applicable Loans to be assigned to it for its
                    own account, for investment purposes and not with a view to the distribution
                    thereof; (iii) after giving effect to any such partial assignment, the assignee
                    Lender shall have Commitments in an amount at least equal to $5,000,000 and the
                    assigning Lender shall have retained Commitments in an amount at least equal to
                    $5,000,000; (iv) include a payment to Agent of an assignment fee of $3,500 and
                    (v) so long as no Event of Default has occurred and is continuing, require the
                    consent of the Borrower, which shall not be unreasonably withheld or delayed;
                    provided, that no consent of Borrower shall be required for an
                    assignment to a Person described in clause (a) of the definition of Qualified
                    Assignee. If Borrower declines to consent to an assignee Lender and such
                    nonconsent is reasonable, Borrower shall have the right to procure a
                    replacement Lender f or such proposed assignee Lender within sixty (60) days
                    after Agent’s notice of the proposed assignment, which replacement Lender
                    may be approved or rejected by Agent or any Lender. If such replacement Lender
                    is rejected by Agent or any Lender, Borrower shall accept the original assignee
                    Lender or propose an alternative replacement Lender within 60 days thereafter,
                    which alternative replacement Lender may be approved or rejected by Agent or
                    any Lender. If such alternative replacement Lender is rejected by Agent or any
                    Lender, Agent, in its sole discretion, shall procure a replacement Lender. In
                    the case of an assignment by a Lender under this Section 9.1, the
                    assignee shall have, to the extent of such assignment, the same rights,
                    benefits and obligations as all other Lenders hereunder. The assigning Lender
                    shall be relieved of its obligations hereunder with respect to its Commitments
                    or assigned portion thereof from and after the date of such assignment.
                    Borrower hereby acknowledges and agrees th at any assignment shall give rise to
                    a direct obligation of Borrower to the assignee and that the assignee shall be
                    considered to be a “Lender”. In all instances, each Lender’s
                    liability to make Loans hereunder shall be several and not joint and shall be
                    limited to such Lender’s Pro Rata Share of the applicable Commitment. In
                    the event Agent or any Lender assigns or otherwise transfers all or any part of
                    the Obligations, Agent or any such Lender shall so notify Borrower and Borrower
                    shall, upon the request of Agent or such Lender, execute new Notes in exchange
                    for the Notes, if any, being assigned. Notwithstanding the foregoing provisions
                    of this Section 9.1 (a), any Lender may at any time pledge the
                    Obligations held by it and such Lender’s rights under this Agreement and
                    the other Loan Documents to a Federal Reserve Bank, and any lender that is an
                    investment fund may assign the Obligations held by it and such Lender’s
                    rights under this Agreement and the other Loan Docume nts to another investment
                    fund managed by the same investment advisor or assign or pledge all or any
                    portion of the Loans held by it (and Notes evidencing such Loans) to the
                    trustee under any indenture to which such Lender is a party in support of its
                    obligations to the trustee for the benefit of the applicable trust
                    beneficiaries; provided, that no such pledge to a Federal Reserve Bank
                    shall release such Lender from such Lender’s obligations hereunder or
                    under any other Loan Document.

                    
                                                    
                    (b)           
                    Any participation by a Lender of all or any part of its Commitments shall be
                    made with the understanding that all amounts payable by Borrower hereunder
                    shall be determined as if that Lender had not sold such participation, and that
                    the holder of any such participation shall not be entitled to require such
                    Lender to take or omit to take any action hereunder except actions directly
                    affecting (i) any reduction in the principal amount of, or interest rate or
                    Fees payable with respect to, any Loan in which such holder participates, (ii)
                    any extension of the scheduled amortization of the principal amount of any Loan
                    in which such holder part icipates or the final maturity date thereof, and
                    (iii) any release of all or substantially all of the Collateral (other than in
                    accordance with the terms of this Agreement, the Collateral

                

        	
                    

                    
                    -45-

                    

                

        

        

        	
                    Documents or the other
                    Loan Documents). Solely for purposes of Sections 1.13, 1.15, 1.16 and
                    9.8, Borrower acknowledges and agrees that a participation shall give
                    rise to a direct obligation of Borrower to the participant and the participant
                    shall be considered to be a “Lender”. Except as set forth in the
                    preceding sentence neither Borrower nor any other Credit Party shall have any
                    obligation or duty to any participant. Neither Agent nor any Lender (other than
                    the Lender selling a participation) shall have any duty to any participant and
                    may continue to deal solely with the Lender selling a participation as if no
                    such sale had occurred.

                    
                                                    
                    (c)            
                    Except as expressly provided in this Section 9.1, no Lender shall, as
                    between Borrower and that Lender, or Agent and that Lender, be relieved of any
                    of its obligations hereunder as a result of any sale, assignment, transfer or
                    negotiation of, or granting of participation in, all or any part of the Loans,
                    the Notes or other Obligations owed to such Lender.

                    
                                                    
                    (d)           
                    Each Credit Party executing this Agreement shall assist any Lender permitted to
                    sell assignments or participations under this Section 9.1 as reasonably
                    required to enable the assigning or selling Lender to effect any such
                    assignment or participation, including the execution and delivery of any and
                    all agreements, notes and other documents and instruments as shall be requested
                    and the preparation of informational materials for, and the participation of
                    management in meetings with, potential assignees or participants. Each Credit
                    Party executing this Agreement shall certify the correctness, completeness and
                    accuracy of all descrip tions of the Credit Parties and their respective
                    affairs contained in any selling materials provided by it and all other
                    information provided by it and included in such materials, except that any
                    Projections delivered by Borrower shall only be certified by Borrower as having
                    been prepared by Borrower in compliance with the representations contained in
                    Section 3.4(c).

                    
                                                    
                    (e)            A
                    Lender may furnish any information concerning Credit Parties in the possession
                    of such Lender from time to time to assignees and participants (including
                    prospective assignees and participants); provided that such Lender shall
                    obtain from assignees or participants confidentiality covenants substantially
                    equivalent to those contained in Section 11.8.

                    
                                                    
                    (f)             
                    So long as no Event of Default has occurred and is continuing, no Lender shall
                    assign or sell participations in any portion of its Loans or Commitments to a
                    potential Lender or participant, if, as of the date of the proposed assignment
                    or sale, the assignee Lender or participant would be subject to capital
                    adequacy or similar requirements under Section 1.16(a), increased costs
                    under Section 1.16(b), an inability to fund LIBOR Loans under Section
                    1.16(c), or withholding taxes in accordance with Section
                    1.15(a).

                    
                                                    
                    (g)           
                    Notwithstanding anything to the contrary contained herein, any Lender (a
                    “Granting Lender”), may grant to a special purpose funding
                    vehicle (an “SPC”), identified as such in writing by the Granting
                    Lender to Agent and Borrower, the option to provide to Borrower all or any part
                    of any Loans that such Granting Lender would otherwise be obligated to make to
                    Borrower pursuant to this Agreement; provided that (i) nothing herein
                    shall constitute a commitment by any SPC to make any Loan; and (ii) if an SPC
                    elects not to exercise such option or otherwise fails to provide all or any
                    part of such Loan, the Grant ing Lender shall be obligated to make such Loan
                    pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall
                    utilize the Commitment of the Granting Lender to the same extent, and as if
                    such Loan were made by such Granting Lender. No SPC shall be liable for any
                    indemnity or similar

                

        	
                    

                    
                    -46-

                    

                

        

        

        	
                    payment obligation under
                    this Agreement (all liability for which shall remain with the Granting Lender).
                    Any SPC may (i) with notice to, but without the prior written consent of,
                    Borrower and Agent and without paying any processing fee therefor assign all or
                    a portion of its interests in any Loans to the Granting Lender or to any
                    financial institutions (consented to by Borrower and Agent) providing liquidity
                    and/or credit support to or for the account of such SPC to support the funding
                    or maintenance of Loans and (ii) disclose on a confidential basis any
                    non-public information relating to its Loans to any rating agency, commercial
                    paper dealer or provider of any surety, guarantee or credit or liquidity
                    enhancement to such SPC. This Section 9. 1(g) may not be amended without
                    the prior written consent of each Granting Lender, all or any of whose Loans
                    are being funded by an SPC at the time of such amendment. For the avoidance of
                    doubt, the Gra nting Lender shall for all purposes, including without
                    limitation, the approval of any amendment or waiver of any provision of any
                    Loan Document or the obligation to pay any amount otherwise payable by the
                    Granting Lender under the Loan Documents, continue to be the Lender of record
                    hereunder.

                    
                                    
                    9.2           
                    Appointment of Agent. GE Capital is hereby appointed to act on behalf of
                    all Lenders as Agent under this Agreement and the other Loan Documents. The
                    provisions of this Section 9.2  are solely for the benefit of Agent
                    and Lenders and no Credit Party nor any other Person shall have any rights as a
                    third party beneficiary of any of the provisions hereof. In performing its
                    functions and duties under this Agreement and the other Loan Documents, Agent
                    shall act solely as an agent of Lenders and does not assume and shall not be
                    deemed to have assumed any obligation toward or relationship of agency or trust
                    with or for any Credit Party or any other Person. Agent shall have no duties or
                    responsi bilities except for those expressly set forth in this Agreement and
                    the other Loan Documents. The duties of Agent shall be mechanical and
                    administrative in nature and Agent shall not have, or be deemed to have, by
                    reason of this Agreement, any other Loan Document or otherwise a fiduciary
                    relationship in respect of any Lender. Except as expressly set forth in this
                    Agreement and the other Loan Documents, Agent shall not have any duty to
                    disclose, and shall not be liable for failure to disclose, any information
                    relating to any Credit Party or any of their respective Subsidiaries or any
                    Account Debtor that is communicated to or obtained by GE Capital or any of its
                    Affiliates in any capacity. Neither Agent nor any of its Affiliates nor any of
                    their respective officers, directors, employees, agents or representatives
                    shall be liable to any Lender for any action taken or omitted to be taken by it
                    hereunder or under any other Loan Document, or in connection herewith or
                    therewith, except for damages caused by its or their own gross negligence or
                    willful misconduct.

                    
                                                     
                    If Agent shall request
                    instructions from Requisite Lenders, Requisite Revolving Lenders, Supermajority
                    Revolving Lenders or all affected Lenders with respect to any act or action
                    (including failure to act) in connection with this Agreement or any other Loan
                    Document, then Agent shall be entitled to refrain from such act or taking such
                    action unless and until Agent shall have received instructions from Requisite
                    Lenders, Requisite Revolving Lenders, Supermajority Revolving Lenders, or all
                    affected Lenders, as the case may be, and Agent shall not incur liability to
                    any Person by reason of so refraining. Agent shall be fully justified in
                    failing or refusing to take any action hereunder or under any ot her Loan
                    Document (a) if such action would, in the opinion of Agent, be contrary to law
                    or the terms of this Agreement or any other Loan Document, (b) if such action
                    would, in the opinion of Agent, expose Agent to Environmental Liabilities or
                    (c) if Agent shall not first be indemnified to its satisfaction against any and
                    all liability and expense which may be incurred by it by reason of taking or
                    continuing to

                

        	
                    

                    
                    -47-

                    

                

        

        

        	
                    take any such action.
                    Without limiting the foregoing, no Lender shall have any right of action
                    whatsoever against Agent as a result of Agent acting or refraining from acting
                    hereunder or under any other Loan Document in accordance with the instructions
                    of Requisite Lenders, Requisite Revolving Lenders, Supermajority Revolving
                    Lenders or all affected Lenders, as applicable.

                    
                                    
                    9.3            
                    Agent’s Reliance, Etc.  Neither Agent nor any of its
                    Affiliates nor any of their respective directors, officers, agents or employees
                    shall be liable for any action taken or omitted to be taken by it or them under
                    or in connection with this Agreement or the other Loan Documents, except for
                    damages caused by its or their own gross negligence or willful misconduct.
                    Without limiting the generality of the foregoing, Agent: (a) may treat the
                    payee of any Note as the holder thereof until Agent receives written notice of
                    the assignment or transfer thereof signed by such payee and in form reasonably
                    satisfactory to Agent; (b) may consult with legal counsel, independent public
                    accountants and other e xperts selected by it and shall not be liable for any
                    action taken or omitted to be taken by it in good faith in accordance with the
                    advice of such counsel, accountants or experts; (c) makes no warranty or
                    representation to any Lender and shall not be responsible to any Lender for any
                    statements, warranties or representations made in or in connection with this
                    Agreement or the other Loan Documents;
                    (d) shall not have any duty
                    to ascertain or to inquire as to the performance or observance of any of the
                    terms, covenants or conditions of this Agreement or the other Loan Documents on
                    the part of any Credit Party or to inspect the Collateral (including the books
                    and records) of any Credit Party; (e) shall not be responsible to any Lender
                    for the due execution, legality, validity, enforceability, genuineness,
                    sufficiency or value of this Agreement or the other Loan Documents or any other
                    instrument or document furnished pursuant hereto or thereto; and (f) sh all
                    incur no liability under or in respect of this Agreement or the other Loan
                    Documents by acting upon any notice, consent, certificate or other instrument
                    or writing (which may be by telecopy, telegram, cable or telex) believed by it
                    to be genuine and signed or sent by the proper party or parties.

                

        	 
                
	
                    
                                    
                    9.4           
                    GE Capital and Affiliates. With respect to its Commitments hereunder,GE
                    Capital shall have the same rights and powers under this Agreement and the
                    other Loan Documents as any other Lender and may exercise the same as though it
                    were not Agent; and the term “Lender” or “Lenders”
                    shall, unless otherwise expressly indicated, include GE Capital in its
                    individual capacity. GE Capital and its Affiliates may lend money to, invest
                    in, and generally engage in any kind of business with, any Credit Party, any of
                    their Affiliates and any Person who may do business with or own securities of
                    any Credit Party or any such Affiliate, all as if GE Capital were not Agent and
                    without any duty to account therefor t o Lenders. GE Capital and its Affiliates
                    may accept fees and other consideration from any Credit Party for services in
                    connection with this Agreement or otherwise without having to account for the
                    same to Lenders.

                    
                                    
                    9.5            
                    Lender Credit Decision. Each Lender acknowledges that it has,
                    independently and without reliance upon Agent or any other Lender and based on
                    the Financial Statements referred to in Section 3.4(a) and such other
                    documents and information as it has deemed appropriate, made its own credit and
                    financial analysis of the Credit Parties and its own decision to enter into
                    this Agreement. Each Lender also acknowledges that it will, independently and
                    without reliance upon Agent or any other Lender and based on such documents and
                    information as it shall deem appropriate at the time, continue to make its own
                    credit decisions in taking or not taking action under this Agreement. Each
                    Lender acknowledges the potential conflict of interest

                

        	
                    

                    
                    -48-

                    

                

        

        

        	of each other
                Lender as a result of Lenders holding disproportionate interests in the Loans, and
                expressly consents to, and waives any claim based upon, such conflict of
                interest.

        	 
                
	
                    
                                   
                     
                    9.6            
                    Indemnification. Lenders agree to indemnify Agent (to the extent not
                    reimbursed by Credit Parties and without limiting the obligations of Borrower
                    hereunder), ratably according to their respective Pro Rata Shares, from and
                    against any and all liabilities, obligations, losses, damages, penalties,
                    actions, judgments, suits, costs, expenses or disbursements of any kind or
                    nature whatsoever that may be imposed on, incurred by, or asserted against
                    Agent in any way relating to or arising out of this Agreement or any other Loan
                    Document or any action taken or omitted to be taken by Agent in connection
                    therewith; provided, that no Lender shall be liable for any portion of
                    such liabilities , obligations, losses, damages, penalties, actions, judgments,
                    suits, costs, expenses or disbursements resulting from Agent’s gross
                    negligence or willful misconduct. Without limiting the foregoing, each Lender
                    agrees to reimburse Agent promptly upon demand for its ratable share of any
                    out-of-pocket expenses (including reasonable counsel fees) incurred by Agent in
                    connection with the preparation, execution, delivery, administration,
                    modification, amendment or enforcement (whether through negotiations, legal
                    proceedings or otherwise) of, or legal advice in respect of rights or
                    responsibilities under, this Agreement and each other Loan Document, to the
                    extent that Agent is not reimbursed for such expenses by Credit
                    Parties.

                    
                                    
                    9.7            
                    Successor Agent. Agent may resign at any time by giving not less than 30
                    days’ prior written notice thereof to Lenders and Borrower. Upon any such
                    resignation, the Requisite Lenders shall have the right to appoint a successor
                    Agent. If no successor Agent shall have been so appointed by the Requisite
                    Lenders and shall have accepted such appointment within 30 days after the
                    resigning Agent’s giving notice of resignation, then the resigning Agent
                    may, on behalf of Lenders, appoint a successor Agent, which shall be a Lender,
                    if a Lender is willing to accept such appointment, or otherwise shall be a
                    commercial bank or financial institution or a subsidiary of a commercial bank
                    or financial inst itution if such com mercial bank or financial institution is
                    organized under the laws of the United States of America or of any State
                    thereof and has a combined capital and surplus of at least $300,000,000. If no
                    successor Agent has been appointed pursuant to the foregoing, within 30 days
                    after the date such notice of resignation was given by the resigning Agent,
                    such resignation shall become effective and the Requisite Lenders shall
                    thereafter perform all the duties of Agent hereunder until such time, if any,
                    as the Requisite Lenders appoint a successor Agent as provided above. Any
                    successor Agent appointed by Requisite Lenders hereunder shall be subject to
                    the approval of Borrower, such approval not to be unreasonably withheld or
                    delayed; provided that such approval shall not be required if a Default
                    or an Event of Default has occurred and is continuing. Upon the acceptance of
                    any appointment as Agent hereunder by a successor Agent, such successor Agent
                    shall succeed to and become vested with all th e rights, powers, privileges and
                    duties of the resigning Agent. Upon the earlier of the acceptance of any
                    appointment as Agent hereunder by a successor Agent or the effective date of
                    the resigning Agent’s resignation, the resigning Agent shall be
                    discharged from its duties and obligations under this Agreement and the other
                    Loan Documents, except that any indemnity rights or other rights in favor of
                    such resigning Agent shall continue. After any resigning Agent’s
                    resignation hereunder, the provisions of this Section 9 shall inure to
                    its benefit as to any actions taken or omitted to be taken by it while it was
                    acting as Agent under this Agreement and the other Loan Documents.

                

        	
                    

                    
                    -49-

                    

                

        

        

        	
                    
                                    
                    9.8            
                    Setoff and Sharing of Payments. In addition to any rights now or
                    hereafter granted under applicable law and not by way of limitation of any such
                    rights, upon the occurrence and during the continuance of any Event of Default
                    and subject to Section 9.9(f), each Lender is hereby authorized at any
                    time or from time to time, without notice to any Credit Party or to any other
                    Person, any such notice being hereby expressly waived, to offset and to
                    appropriate and to apply any and all balances held by it at any of its offices
                    for the account of Borrower or any Guarantor (regardless of whether such
                    balances are then due to Borrower or any Guarantor) and any other properties or
                    assets at any time held or owing by that Lender or that holder to or for the
                    credit or for the account of Borrower or any Guarantor against and on account
                    of any of the Obligations that are not paid when due. Any Lender exercising a
                    right of setoff or otherwise receiving any payment on account of the
                    Obligations in excess of its Pro Rata Share thereof shall purchase for cash
                    (and the other Lenders or holders shall sell) such participations in each such
                    other Lender’s or holder’s Pro Rata Share of the Obligations as
                    would be necessary to cause such Lender to share the amount so offset or
                    otherwise received with each other Lender or holder in accordance with their
                    respective Pro Rata Shares, (other than offset rights exercised by any Lender
                    with respect to Sections 1.13, 1.15 or 1.16). Each Lender’s
                    obligation under this Section 9.8 shall be in addition to and not in
                    limitation of its obligations to purchase a participation in an amount equal to
                    its Pro Rata Share of the Swing Line Loans under Section 1.1. Borrower
                    and each Guarantor agrees, to the fullest extent permitted by law, that (a) any
                    Lender may exercise its right to offset with respect to amounts in excess of
                    its Pro Rata Share of the Obligations and may sell participations in such
                    amounts so offset to other Lenders and holders and (b) any Lender so purchasing
                    a participation in the Loans made or other Obligations held by other Lenders or
                    holders may exercise all rights of offset, bankers’ lien, counterclaim or
                    similar rights with respect to such participation as fully as if such Lender or
                    holder were a direct holder of the Loans and the other Obligations in the
                    amount of such participation. Notwithstanding the foregoing, if all or any
                    portion of the offset amount or payment otherwise received is thereafter
                    recovered from the Lender that has exercised the right of offset, the purchase
                    of participations by that Lender shall be rescinded and the purchase price
                    restored without interest.

                
	 
                

        	
                                
                 
                9.9           
                Advances; Payments;
                Non-Funding Lenders; Information; Actions in Concert, 
	 
	
                                                (a)          
                Advances; Payments.

        	 
                
	
                    
                                                                  
                    (i)         Revolving
                    Lenders shall refund or participate in the Swing Line Loan in accordance with
                    clauses (iii) and (iv) of Section 1.1(c). If the
                    Swing Line Lender declines to make a Swing Line Loan or if Swing Line
                    Availability is zero, Agent shall notify Revolving Lenders, promptly after
                    receipt of a Notice of Revolving Advance and in any event prior to 1:00 p.m.
                    (New York time) on the date such Notice of Revolving Advance is received, by
                    telecopy, telephone or other similar form of transmission. Each Revolving
                    Lender shall make the a mount of such Lender’s Pro Rata Share of such
                    Revolving Credit Advance available to Agent in same day funds by wire transfer
                    to Agent’s account as set forth in Annex H not later than 3:00
                    p.m. (New York time) on the requested funding date, in the case of an Index
                    Rate Loan and not later than 11:00 a.m. (New York time) on the requested
                    funding date in the case of a LIBOR Loan. After receipt of such wire transfers
                    (or, in the Agent’s sole discretion, before receipt of such wire
                    transfers), subject to the terms hereof, Agent shall make the
                    requested

                

        	
                    

                    
                    -50-

                    

                

        

        

        	Revolving
                Credit Advance to Borrower. All payments by each Revolving Lender shall be made
                without setoff, counterclaim or deduction of any kind.

        	 
                
	
                    
                                                                  (ii)         On
                    the 2nd Business Day of each calendar week or more frequently at Agent’s
                    election (each, a “Settlement Date”), Agent shall advise
                    each Lender by telephone, or telecopy of the amount of such Lender’s Pro
                    Rata Share of principal, interest and Fees paid for the benefit of Lenders with
                    respect to each applicable Loan. Provided that each Lender has funded all
                    payments and Advances required to be made by it and purchased all
                    participations required to be purchased by it under this Agreement and the
                    other Loan Documents as of such Settlement Date, Agent shall pay to each Lender
                    such Lend er’s Pro Rata Share of principal, interest and Fees paid by
                    Borrower since the previous Settlement Date for the benefit of such Lender on
                    the Loans held by it. To the extent that any Lender (a
                    “Non-Funding Lender”) has failed to fund all such
                    payments and Advances or failed to fund the purchase of all such
                    participations, Agent shall be entitled to set off the funding short-fall
                    against that Non-Funding Lender’s Pro Rata Share of all payments received
                    from Borrower. Such payments shall be made by wire transfer to such
                    Lender’s account (as specified by such Lender in Annex H or the
                    applicable Assignment Agreement) not later than 2:00 p.m. (New York time) on
                    the next Business Day following each Settlement Date.

                    
                                                    
                    (b)
                               
                    Availability of Lender’s Pro Rata Share. Agent may assume
                    that each Revolving Lender will make its Pro Rata Share of each Revolving
                    Credit Advance available to Agent on each funding date. If such Pro Rata Share
                    is not, in fact, paid to Agent by such Revolving Lender when due, Agent will be
                    entitled to recover such amount on demand from such Revolving Lender without
                    setoff, counterclaim or deduction of any kind. If any Revolving Lender fails to
                    pay the amount of its Pro Rata Share forthwith upon Agent’s demand, Agent
                    shall promptly notify Borrower and Borro wer shall immediately repay such
                    amount to Agent. Nothing in this Section 9.9(b) or elsewhere in this
                    Agreement or the other Loan Documents shall be deemed to require Agent to
                    advance funds on behalf of any Revolving Lender or to relieve any Revolving
                    Lender from its obligation to fulfill its Commitments hereunder or to prejudice
                    any rights that Borrower may have against any Revolving Lender as a result of
                    any default by such Revolving Lender hereunder. To the extent that Agent
                    advances funds to Borrower on behalf of any Revolving Lender and is not
                    reimbursed therefor on the same Business Day as such Advance is made, Agent
                    shall be entitled to retain for its account all interest accrued on such
                    Advance until reimbursed by the applicable Revolving Lender.

                
	 
                

        	
                                                
                 
                (c)
                            
                Return of Payments.
	 

        	
                                                                 
                (i)         If
                Agent pays an amount to a Lender under this Agreement in the belief or expectation
                that a related payment has been or will be received by Agent from Borrower and such
                related payment is not received by Agent, then Agent will be entitled to recover
                such amount from such Lender on demand without setoff, counterclaim or deduction of
                any kind.
	
                
	 
	
                                                                
                (ii)         If
                Agent determines at any time that any amount received by Agent under this Agreement
                must be returned to Borrower or paid to any other Person pursuant to any insolvency
                law or otherwise, then, notwithstanding any other term or condition of this
                Agreement or any other Loan Document, Agent will not be required to distribute any
                portion thereof to any Lender. In addition, each Lender will repay to Agent on
                demand any portion of

        	
                    

                    
                    -51-

                    

                

        

        

        	such amount
                that Agent has distributed to such Lender, together with interest at such rate, if
                any, as Agent is required to pay to Borrower or such other Person, without setoff,
                counterclaim or deduction of any kind.

        	 
                
	
                    
                                                    
                    (d)           
                    Non-Funding Lenders. The failure of any Non-Funding Lender to make any
                    Revolving Credit Advance or any payment required by it hereunder, or to
                    purchase any participation in any Swing Line Loan to be made or purchased by it
                    on the date specified therefor shall not relieve any other Lender (each such
                    other Revolving Lender, an “Other Lender”) of its
                    obligations to make such Advance or purchase such participation on such date,
                    but neither any Other Lender nor Agent shall be responsible for the failure of
                    any Non-Funding Lender to make an Advance, purchase a participation or make any
                    other payment require d hereunder. Notwithstanding anything set forth herein to
                    the contrary, a Non-Funding Lender shall not have any voting or consent rights
                    under or with respect to any Loan Document or constitute a “Lender”
                    or a “Revolving Lender” (or be included in the calculation of
                    “Requisite Lenders”, “Requisite Revolving Lenders” or
                    “Supermajority Revolving Lenders” hereunder) for any voting or
                    consent rights under or with respect to any Loan Document. At Borrower’s
                    request, Agent or a Person acceptable to Agent shall have the right with
                    Agent’s consent and in Agent’s sole discretion (but shall have no
                    obligation) to purchase from any Non-Funding Lender, and each Non-Funding
                    Lender agrees that it shall, at Agent’s request, sell and assign to Agent
                    or such Person, all of the Commitments of that Non-Funding Lender for an amount
                    equal to the principal balance of all Loans held by such Non-Funding Lender and
                    all accrued interest and fees with respect theret o through the date of sale,
                    such purchase and sale to be consummated pursuant to an executed Assignment
                    Agreement.

                    
                                                    
                    (e)            
                    Dissemination of Information. Agent shall use reasonable efforts to
                    provide Lenders with any notice of Default or Event of Default received by
                    Agent from, or delivered by Agent to, any Credit Party, with notice of any
                    Event of Default of which Agent has actually become aware and with notice of
                    any action taken by Agent following any Event of Default; provided, that
                    Agent shall not be liable to any Lender for any failure to do so, except to the
                    extent that such failure is attributable to Agent’s gross negligence or
                    willful misconduct. Lenders acknowledge that Borrower is required to provide
                    Financial Statements and Collateral Reports to Lenders in accordance with
                    Annexes E and F hereto and agree that Agent shall have no duty to
                    provide the same to Lenders.

                
	 
                

        	
                                                (f)
                             
                Actions in Concert. Anything in this Agreement to the
                contrarynotwithstanding, each Lender hereby agrees with each other Lender that no
                Lender shall take any action to protect or enforce its rights arising out of this
                Agreement or the Notes (including exercising any rights of setoff) without first
                obtaining the prior written consent of Agent and Requisite Lenders, it being the
                intent of Lenders that any such action to protect or enforce rights under this
                Agreement and the Notes shall be taken in concert and at the direction or with the
                consent of Agent or Requisite Lenders.
	 

        	
                10.
                          SUCCESSORS AND
                ASSIGNS
	 

        	
                                
                10.1   
                   Successors and Assigns. This Agreement and the other Loan
                Documents shall be binding on and shall inure to the benefit of each Credit Party,
                Agent, Lenders and their respective successors and assigns (including, in the case
                of any Credit Party, a debtor-in-possession on

        	
                    

                    
                    -52-

                    

                

        

        

        	
                    behalf of such Credit
                    Party), except as otherwise provided herein or therein. No Credit Party may
                    assign, transfer, hypothecate or otherwise convey its rights, benefits,
                    obligations or duties hereunder or under any of the other Loan Documents
                    without the prior express written consent of Agent and Lenders. Any such
                    purported assignment, transfer, hypothecation or other conveyance by any Credit
                    Party without the prior express written consent of Agent and Lenders shall be
                    void. The terms and provisions of this Agreement are for the purpose of
                    defining the relative rights and obligations of each Credit Party, Agent and
                    Lenders with respect to the transactions contemplated hereby and no Person
                    shall be a third party beneficiary of any of the terms and provisions of this
                    Agreement or any of the other Loan Documents.

                
	 
                

        	
                11.
                         
                MISCELLANEOUS

        	 
                
	
                    
                                    
                    11.1     
                    Effect of Amendment and Restatement; Affirmation of Existing Loan
                    Documents. Upon the effectiveness of this Agreement pursuant to Section
                    2.1 hereof, from and after the Closing Date: (a) the terms and conditions
                    of the Existing Credit Agreement shall be amended as set forth herein and, as
                    so amended, shall be restated in their entirety, but only with respect to the
                    rights, duties and obligations among Borrower, the Lenders and the Agent
                    accruing from and after the Closing Date; (b) this Agreement shall not in any
                    way release or impair the rights, duties, Obligations or Liens created pursuant
                    to the Existing Credit Agreement or any other Loan Document (as defined
                    therein) or affect the relative priorities thereof, in each case to the extent
                    in force and effect thereunder as of the Closing Date and except as modified
                    hereby or by documents, instruments and agreements executed and delivered in
                    connection herewith, and all of such rights, duties, Obligations and Liens are
                    assumed, ratified and affirmed by Borrower; (c) all indemnification obligations
                    of the Borrower under the Existing Credit Agreement and any other Loan
                    Documents (as defined therein) shall survive the execution and delivery of this
                    Agreement and shall continue in full force and effect for the benefit of the
                    Lenders, the Agent, and any other Person indemnified under the Existing Credit
                    Agreement or any other Loan Document (as defined therein) at any time prior to
                    the Closing Date, (d) the Obligations incurred under the Existing Credit
                    Agreement shall, to the extent outstanding on the Closing Date, continue
                    outstanding under this Agreement and shall not be deemed to be paid, released,
                    discharged or otherwise satisfied by the execution of this Agreement, and this
                    A greement shall not constitute a refinancing, substitution or novation of such
                    Obligations or any of the other rights, duties and obligations of the parties
                    hereunder, and the terms “Obligations”, “Guaranteed
                    Obligations” and “Secured Obligations” as such terms are used
                    in the Loan Documents shall include the Obligations as amended and restated
                    under this Agreement; (e) the execution, delivery and effectiveness of this
                    Agreement shall not operate as a waiver of any right, power or remedy of the
                    Lenders or the Agent (as defined therein) under the Existing Credit Agreement,
                    nor constitute a waiver of any covenant, agreement or obligation under the
                    Existing Credit Agreement, except to the extent that any such covenant,
                    agreement or obligation is no longer set forth herein or is modified hereby;
                    (f) any and all references to the Existing Credit Agreement in any Collateral
                    Document or other Loan Document shall, without further action of the parties,
                    be deemed a reference to the Existi ng Credit Agreement, as amended and
                    restated by this Agreement, and as this Agreement shall be further amended,
                    restated, supplemented or otherwise modified from time to time, and any and all
                    references to the Collateral Documents or Loan Documents in any such Collateral
                    Documents or any other Loan Documents shall be deemed a reference to the
                    Collateral Documents or Loan Documents under the Existing Credit Agreement, as
                    amended and restated by this Agreement, and as this Agreement shall be further
                    amended,

                

        	
                    

                    
                    -53-

                    

                

        

        

        	
                    restated, supplemented
                    or otherwise modified from time to time; and (g) the Liens granted pursuant to
                    the Collateral Documents to which it is a party shall continue without any
                    diminution thereof and shall remain in full force and effect on and after the
                    Closing Date.

                
	 
                

        	 	
                11.2        
                Amendments and Waivers.
	 	 

        	
                    
                                                   (a)           Except
                    for actions expressly permitted to be taken by Agent, no amendment,
                    modification, termination or waiver of any provision of this Agreement or any
                    other Loan Document, or any consent to any departure by any Credit Party
                    therefrom, shall in any event be effective unless the same shall be in writing
                    and signed by Agent and Borrower, and by Requisite Lenders, Requisite Revolving
                    Lenders, Supermajority Revolving Lenders or all affected Lenders, as
                    applicable. Except as set forth in clauses (b) and (c) below, all such
                    amendments, modifications, terminations or waivers requiring the consent of any
                    Lenders shall require the written consent of Requisite Lenders.

                    
                                                    
                    (b)           
                    No amendment, modification, termination or waiver of or consent with respect to
                    any provision of this Agreement that increases the percentage advance rates set
                    forth in the definition of the Borrowing Base, or that makes less restrictive
                    the nondiscretionary criteria for exclusion from Eligible Accounts and Eligible
                    Inventory set forth in Sections 1.6 and 1.7, shall be effective
                    unless the same shall be in writing and signed by Agent, Supermajority
                    Revolving Lenders and Borrower. No amendment, modification, termination or
                    waiver of or consent with respect to any provision of this Agreement that
                    waives compliance with the conditions precedent set forth in Section 2.2
                    to the making of any Loan or the incurrence of any Letter of Credit Obligations
                    shall be effective unless the same shall be in writing and signed by Agent,
                    Requisite Revolving Lenders and Borrower. Notwithstanding anything contained in
                    this Agreement to the contrary, no waiver or consent with respect to any
                    Default or any Event of Default shall be effective for purposes of the
                    conditions precedent to the making of Loans or the incurrence of Letter of
                    Credit Obligations set forth in Section 2.2 unless the same shall be in
                    writing and signed by Agent, Requisite Revolving Lenders and
                    Borrower.

                    
                                                    
                    (c)            
                    No amendment, modification, termination or waiver shall, unless in writing and
                    signed by Agent and each Lender directly affected thereby: (i) increase the
                    principal amount of any Lender’s Commitment or Pro Rata Share (which
                    action shall be deemed only to affect those Lenders whose Commitments and Pro
                    Rata Shares are increased and may be approved by Requisite Lenders, including
                    those lenders whose Commitments and Pro Rata Shares are increased); (ii) reduce
                    the principal of, rate of interest on or Fees payable with respect to any Loan
                    or Letter of Credit Obligations of any affected Lender; (iii) extend any
                    scheduled payment date (other than payment dates of mandatory prepayments under
                    Section 1.3(b)(ii)-(iv)) or final maturity date of the principal amount
                    of any Loan of any affected Lender; (iv) waive, forgive, defer, extend or
                    postpone any payment of interest or Fees as to any affected Lender;(v) release
                    any Guaranty or, except as otherwise permitted herein or in the other Loan
                    Documents, release, or permit any Credit Party to sell or otherwise dispose of,
                    any Collateral with a value exceeding $5,000,000 in the aggregate (which action
                    shall be deemed to directly affect all Lenders); (vi) change the percentage of
                    the Commitments or of the aggregate unpaid principal amount of the Loans that
                    shall be required for Lenders or any of them to take any action hereunder; and
                    (vii) amend or waive this Section 11.2 or the definitions of the terms
                    “Requisite Lenders”, “Requisite Revolving Lenders” or
                    “Supermajority Revolving Lenders”

                

        	
                    

                    
                    -54-

                    

                

        

        

        	
                    insofar as such
                    definitions affect the substance of this Section 11.2. Furthermore, no
                    amendment, modification, termination or waiver affecting the rights or duties
                    of Agent or L/C Issuer under this Agreement or any other Loan Document shall be
                    effective unless in writing and signed by Agent or L/C Issuer, as the case may
                    be, in addition to Lenders required hereinabove to take such action. Each
                    amendment, modification, termination or waiver shall be effective only in the
                    specific instance and for the specific purpose for which it was given. No
                    amendment, modification, termination or waiver shall be required for Agent to
                    take additional Collateral pursuant to any Loan Document. No amendment,
                    modification, termination or waiver of any provision of any Note shall be
                    effective without the written concurrence of the holder of that Note. No notice
                    to or demand on any Credit Party in any case shall entitle such Credit Party or
                    any other Credit Party to any other or further notice or demand in similar or
                    other circumstances. Any amendment, modification, termination, waiver or
                    consent effected in accordance with this Section 11.2 shall be binding
                    upon each holder of the Notes at the time outstanding and each future holder of
                    the Notes.

                
	 
                

        	
                                                
                (d)            
                If, in connection with any proposed amendment, modification, waiver or termination
                (a “Proposed Change”):
	
                	 

        	
                    
                                                                    
                    (i)         requiring
                    the consent of all affected Lenders, the consent of Requisite Lenders is
                    obtained, but the consent of other Lenders whose consent is required is not
                    obtained (any such Lender whose consent is not obtained as described in this
                    clause (i) and in clauses (ii), (iii) and (iv) below being
                    referred to as a “Non-Consenting Lender”),

                    
                                                                    
                    (ii)        requiring
                    the consent of Supermajority Revolving Lenders, the consent of Requisite
                    Revolving Lenders is obtained, but the consent of Supermajority Revolving
                    Lenders is not obtained,

                

        	
                                                               
                
	
                                                                
                 
                (iii)      requiring
                the consent of Requisite Revolving Lenders, the consent of Revolving Lenders
                holding 51% or more of the aggregate Revolving Loan Commitments is obtained, but
                the consent of Requisite Revolving Lenders is not obtained, or
	 
	
                                                                
                 
                (iv)      requiring
                the consent of Requisite Lenders, the consent of Lenders holding 51% or more of the
                aggregate Commitments is obtained, but the consent of Requisite Lenders is not
                obtained,
	 
	then, so long
                as Agent is not a Non-Consenting Lender, at Borrower’s request Agent, or a
                Person reasonably acceptable to Agent, shall have the right with Agent’s
                consent and in Agent’s sole discretion (but shall have no obligation) to
                purchase from such Non-Consenting Lenders, and such Non-Consenting Lenders agree
                that they shall, upon Agent’s request, sell and assign to Agent or such
                Person, all of the Commitments of such Non-Consenting Lenders for an amount equal
                to the principal balance of all Loans held by the Non-Consenting Lenders and all
                accrued interest and Fees with respect thereto through the date of sale, such
                purchase and sale to be consummated pursuant to an executed Assignment
                Agreement.
	 
	
                                                
                 
                 
                (e)            
                Upon payment in full in cash and performance of all of the Obligations (other than
                indemnification Obligations), termination of the Commitments and a release of all
                claims against Agent and Lenders, and so long as no suits, actions proceedings, or
                claims are

        	 
                
	
                

        	
                    

                    
                    -55-

                    

                

        

        

        	
                    pending or threatened
                    against any Indemnified Person asserting any damages, losses or liabilities
                    that are Indemnified Liabilities, Agent shall deliver to Borrower termination
                    statements, mortgage releases and other documents necessary or appropriate to
                    evidence the termination of the Liens securing payment of the
                    Obligations.

                    
                                     
                    11.3       
                    Fees and Expenses. Borrower shall reimburse (i) Agent for all fees,
                    costs and expenses (including the reasonable fees and expenses of all of its
                    counsel, advisors, consultants and auditors) and (ii) Agent (and, with respect
                    to clauses (c) and (d) below, all Lenders) for all fees, costs and
                    expenses, including the reasonable fees, costs and expenses of counsel or other
                    advisors (including environmental and management consultants and appraisers)
                    incurred in connection with the negotiation, preparation and filing and/or
                    recordation of the Loan Documents and incurred in connection with:

                    
                                                    
                    (a)
                                
                    the forwarding to Borrower or any other Person on behalf of Borrower by Agent
                    of the proceeds of any Loan (including a wire transfer fee of $25 per wire
                    transfer);

                    
                                                    
                    (b)
                               
                    any amendment, modification or waiver of, or consent with respect to, or
                    termination of, any of the Loan Documents or Related Transactions Documents or
                    advice in connection with the syndication and administration of the Loans made
                    pursuant hereto or its rights hereunder or thereunder;

                    
                                                    
                    (c)
                                
                    any litigation, contest, dispute, suit, proceeding or action (whether
                    instituted by Agent, any Lender, any Credit Party or any other Person and
                    whether as a party, witness or otherwise) in any way relating to the
                    Collateral, any of the Loan Documents or any other agreement to be executed or
                    delivered in connection herewith or therewith, including any litigation,
                    contest, dispute, suit, case, proceeding or action, and any appeal or review
                    thereof, in connection with a case commenced by or against any or all of the
                    Credit Parties or any other Person that may be obligated to Agent by virtue of
                    the Loan Documents, including any such

                    litigation, contest, dispute, suit, proceeding or action arising in connection
                    with any work-out or restructuring of the Loans during the pendency of one or
                    more Events of Default; provided that in the case of reimbursement of
                    counsel for Lenders other than Agent, such reimbursement shall be limited to
                    one counsel for all such Lenders; provided, further, that no
                    Person shall be entitled to reimbursement under this clause (c) in respect of
                    any litigation, contest, dispute, suit, proceeding or action to the extent any
                    of the foregoing results from such Person’s gross negligence or willful
                    misconduct;

                    
                                                    
                    (d)
                               
                    any attempt to enforce any remedies of Agent or any Lender against any or all
                    of the Credit Parties or any other Person that may be obligated to Agent or any
                    Lender by virtue of any of the Loan Documents, including any such attempt to
                    enforce any such remedies in the course of any work-out or restructuring of the
                    Loans during the pendency of one or more Events of Default; provided,
                    that in the case of reimbursement of counsel for Lenders other than Agent, such
                    reimbursement shall be limited to one counsel for all such Lenders;

                    
                                                    
                    (e)
                                
                    any workout or restructuring of the Loans during the pendency of one or

                    more Events of Default; and

                

        	
                    

                    
                    -56-

                    

                

        

        

        	
                                               
                (f)
                            
                efforts to (i) monitor the Loans or any of the other Obligations, (ii) evaluate,
                observe or assess any of the Credit Parties or their respective affairs, and (iii)
                verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise
                dispose of any of the Collateral;

        	 
                
	
                    including, as to each of
                    clauses (a) through (f) above, all reasonable attorneys’ and other
                    professional and service providers’ fees arising from such services and
                    other advice, assistance or other representation, including those in connection
                    with any appellate proceedings, and all expenses, costs, charges and other
                    reasonable fees incurred by such counsel and others in connection with or
                    relating to any of the events or actions described in this Section 11.3,
                    all of which shall be payable, on demand, by Borrower to Agent. Without
                    limiting the generality of the foregoing, such expenses, costs, charges and
                    fees may include: reasonable fees, costs and expenses of accountants,
                    environmental advisors, appraisers, investment bankers, management and other
                    consultants and paralegals; court costs and expenses; photocopying and
                    duplication expenses; court reporter fees, costs and expenses; long distance
                    telephone charges; air express charges; telegram or telecopy charges;
                    secretarial overtime charges; and expenses for travel, lodging and food paid or
                    incurred in connection with the performance of such legal or other advisory
                    services.

                    
                                     
                    11.4       
                    No Waiver. Agent’s or any Lender’s failure, at any time or
                    times, to require strict performance by the Credit Parties of any provision of
                    this Agreement or any other Loan Document shall not waive, affect or diminish
                    any right of Agent or such Lender thereafter to demand strict compliance and
                    performance herewith or therewith. Any suspension or waiver of an Event of
                    Default shall not suspend, waive or affect any other Event of Default whether
                    the same is prior or subsequent thereto and whether the same or of a different
                    type. Subject to the provisions of Section 11.2, none of the
                    undertakings, agreements, warranties, covenants and representations of any
                    Credit Party contained in this Agreement or any of the other Loan Documents and
                    no Default or Event of Default by any Credit Party shall be deemed to have been
                    suspended or waived by Agent or any Lender, unless such waiver or suspension is
                    by an instrument in writing signed by an officer of or other authorized
                    employee of Agent and the applicable required Lenders and directed to Borrower
                    specifying such suspension or waiver.

                    
                                     
                    11.5       Remedies.
                    Agent’s and Lenders’ rights and remedies under this Agreement shall
                    be cumulative and nonexclusive of any other rights and remedies that Agent or
                    any Lender may have under any other agreement, including the other Loan
                    Documents, by operation of law or otherwise. Recourse to the Collateral shall
                    not be required.

                    
                                     
                    11.6       
                    Severability. Wherever possible, each provision of this Agreement and
                    the other Loan Documents shall be interpreted in such a manner as to be
                    effective and valid under applicable law, but if any provision of this
                    Agreement or any other Loan Document shall be prohibited by or invalid under
                    applicable law, such provision shall be ineffective only to the extent of such
                    prohibition or invalidity, without invalidating the remainder of such provision
                    or the remaining provisions of this Agreement or such other Loan
                    Document.

                    
                                     
                    11.7       Conflict of
                    Terms. Except as otherwise provided in this Agreement or any of the other
                    Loan Documents by specific reference to the applicable provisions of this
                    Agreement, if

                

        	
                    

                    
                    -57-

                    

                

        

        

        	
                    any provision contained
                    in this Agreement conflicts with any provision in any of the other Loan
                    Documents, the provision contained in this Agreement shall govern and
                    control.

                    
                                     
                    11.8       Confidentiality.
                    Agent and each Lender agree to use commercially reasonable efforts (equivalent
                    to the efforts Agent or such Lender applies to maintain the confidentiality of
                    its own confidential information) to maintain as confidential all confidential
                    information provided to them by the Credit Parties and designated as
                    confidential for a period of 2 years following receipt thereof, except that
                    Agent and each Lender may disclose such information (a) to Persons employed or
                    engaged by Agent or such Lender in evaluating, approving, structuring or
                    administering the Loans and the Commitments; (b) to any bona fide assignee
                    or

                    participant or potential assignee or participant that has agreed to comply with
                    the covenant contained in this Section 11.8 (and any such bona fide
                    assignee or participant or potential assignee or participant may disclose such
                    information to Persons employed or engaged by them as described in clause
                    (a) above); (c) as required or requested by any Governmental Authority or
                    reasonably believed by Agent or such Lender to be compelled by any court
                    decree, subpoena or legal or administrative order or process; (d) as, on the
                    advise of Agent’s or such Lender’s counsel, is required by law; (e)
                    in connection with the exercise of any right or remedy under the Loan Documents
                    or in connection with any Litigation to which Agent or such Lender is a party;
                    or (f) that ceases to be confidential through no fault of Agent or any
                    Lender.

                    
                                     
                    11.9       
                    GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
                    LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
                    VALIDITY AND PERFORMANCE, THE LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE
                    GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS
                    OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT
                    STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH CREDIT
                    PARTY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN
                    NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
                    TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CREDIT PARTIES, AGENT
                    AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR
                    TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER
                    LOAN DOCUMENTS; PROVIDED, THAT AGENT, LENDERS AND THE CREDIT PARTIES
                    ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
                    LOCATED OUTSIDE OF NEW YORK COUNTY AND; PROVIDED, FURTHER THAT
                    NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM
                    BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE
                    ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A
                    JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH CREDIT PARTY EXPRESSLY
                    SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
                    COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION
                    THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
                    IMPROPER VENUE OR FORUM NON CONVENIENS AND

                

        	
                    

                    
                    -58-

                    

                

        

        

        	
                    HEREBY CONSENTS TO
                    THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
                    COURT. EACH CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS,
                    COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT
                    SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED
                    OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS SET FORTH IN
                    ANNEX I OF THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED
                    COMPLETED UPON THE EARLIER OF SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF
                    OR 3 DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE
                    PREPAID.

                    
                                     
                    11.10       Notices.
                    Except as otherwise provided herein, whenever it is provided herein that any
                    notice, demand, request, consent, approval, declaration or other communication
                    shall or may be given to or served upon any of the parties by any other
                    parties, or whenever any of the parties desires to give or serve upon any other
                    parties any communication with respect to this Agreement, each such notice,
                    demand, request, consent, approval, declaration or other communication shall be
                    in writing and shall be deemed to have been validly served, given or delivered
                    (a) upon the earlier of actual receipt and 3 Business Days after deposit in the
                    United States Mail, registered or certified mail, return receipt requested,
                    with proper postage prepaid, (b) upon transmission, when sent by telecopy or
                    other similar facsimile transmission (with such telecopy or facsimile promptly
                    confirmed by delivery of a copy by personal delivery or United States Mail as
                    otherwise provided in this Section 11.10); (c) 1 Business Day after
                    deposit with a reputable overnight courier with all charges prepaid or (d) when
                    delivered, if hand-delivered by messenger, all of which shall be addressed to
                    the party to be notified and sent to the address or facsimile number indicated
                    in Annex I or to such other address (or facsimile number) as may be
                    substituted by notice given as herein provided. The giving of any notice
                    required hereunder may be waived in writing by the party entitled to receive
                    such notice. Failure or delay in delivering copies of any notice, demand,
                    request, consent, approval, declaration or other communication to any Person
                    (other than Borrower or Agent) designated in Annex I to receive copies
                    shall in no way adversely affect the effectiveness of such notice, demand,
                    request, consent, approval, declaration or other communication.

                    
                                     
                    11.11       
                    Section Titles. The Section titles and Table of Contents contained in
                    this Agreement are and shall be without substantive meaning or content of any
                    kind whatsoever and are not a part of the agreement between the parties
                    hereto.

                    
                                     
                    11.12       Counterparts.
                    This Agreement may be executed in any number of separate counterparts, each of
                    which shall collectively and separately constitute one agreement.

                    
                                     
                    11.13       
                    WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION
                    WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED
                    BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND
                    FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT
                    THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE,
                    TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
                    ARBITRATION, THE

                

        	
                    

                    
                    59

                    

                

        

        

        	
                    PARTIES HERETO WAIVE
                    ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO
                    RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG
                    AGENT, LENDERS AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO,
                    OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH,
                    THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED
                    THERETO.

                    
                                     
                    11.14       
                    Press Releases and Related Matters. Each Credit Party executing this
                    Agreement agrees that neither it nor its Affiliates will in the future issue
                    any press releases or other public disclosure using the name of GE Capital or
                    its affiliates or referring to this Agreement, the other Loan Documents or the
                    Related Transactions Documents without at least 2 Business Days’ prior
                    notice to GE Capital and without the prior written consent of GE Capital unless
                    (and only to the extent that) such Credit Party or Affiliate is required to do
                    so under law and then, in any event, such Credit Party or Affiliate will
                    consult with GE Capital before issuing such press release or other public
                    disclosure. Each Credit Party consents to the publication by Agent or any
                    Lender of a tombstone or similar advertising material relating to the financing
                    transactions contemplated by this Agreement. Agent or such Lender shall provide
                    a draft of any such tombstone or similar advertising material to each Credit
                    Party for review and comment prior to the publication thereof. Agent reserves
                    the right to provide to industry trade organizations information necessary and
                    customary for inclusion in league table measurements.

                    
                                     
                    11.15       
                    Reinstatement. This Agreement shall remain in full force and effect and
                    continue to be effective should any petition be filed by or against any Credit
                    Party for liquidation or reorganization, should any Credit Party become
                    insolvent or make an assignment for the benefit of any creditor or creditors or
                    should a receiver or trustee be appointed for all or any significant part of
                    any Credit Party’s assets, and shall continue to be effective or to be
                    reinstated, as the case may be, if at any time payment and performance of the
                    Obligations, or any part thereof, is, pursuant to applicable law, rescinded or
                    reduced in amount, or must otherwise be restored or returned by any obligee of
                    the Obligations, whether as a “voidable preference,”
                    “fraudulent conveyance,” or otherwise, all as though such payment
                    or performance had not been made. In the event that any payment, or any part
                    thereof, is rescinded, reduced, restored or returned, the Obligations shall be
                    reinstated and deemed reduced only by such amount paid and not so rescinded,
                    reduced, restored or returned.

                    
                                     
                    11.16       
                    Advice of Counsel. Each of the parties represents to each other party
                    hereto that it has discussed this Agreement and, specifically, the provisions
                    of Sections 11.9 and 11.13, with its counsel.

                    
                                     
                    11.17       
                    No Strict Construction. The parties hereto have participated jointly in
                    the negotiation and drafting of this Agreement. In the event an ambiguity or
                    question of intent or interpretation arises, this Agreement shall be construed
                    as if drafted jointly by the parties hereto and no presumption or burden of
                    proof shall arise favoring or disfavoring any party by virtue of the authorship
                    of any provisions of this Agreement.

                

        	
                    

                    
                    -60-

                    

                

        

        

        	 
	
                                             IN
                WITNESS WHEREOF, this Agreement has been duly executed as of the date first written
                above.
	 

        	  	BUTLER
                SERVICE GROUP, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	
                    MARK
                    KOSCINSKI

                
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	 	 	 
	Signature Page
                to Third Amended and Restated Credit Agreement

        	
                    

                     

                    

                

        

        

        	  	GENERAL
                ELECTRIC CAPITAL
	 	 	 
	 	
                CORPORATION, as Agent
                and Lender
	  	  	  
	 
                	By:	James H. Kaufman
	 	 	
                    

                
	  	 	    Duly
                Authorized
                Signatory 
                
	 
	Signature Page
                to Third Amended and Restated Credit Agreement

        	
                    

                     

                    

                

        

        

        	
                                             
                The following Persons are
                signatories to this Agreement in their capacity as Credit Parties and not as
                Borrowers.
	 

        	  	
                BUTLER
                INTERNATIONAL,
                INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	  	 	  

        	  	BUTLER
                SERVICES INTERNATIONAL, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	  	 	  

        	  	BUTLER
                TELECOM, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	  	 	  

        	  	BUTLER
                PUBLISHING, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	  	 	  

        	  	BUTLER OF
                NEW JERSEY REALTY CORP.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	 	 	 
	Signature Page
                to Third Amended and Restated Credit Agreement

        	
                    

                     

                    

                

        

        

        	  	BUTLER
                SERVICES, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	  	 	  

        	  	BUTLER
                UTILITY SERVICE, INC.
	  	  	  
	 
                	
                By:	Mark
                Koscinski
	 	 	
                    

                
	 	
                Name:	MARK
                KOSCINSKI
	 	 	
                    

                
	 	
                Title:	VP.
                Controller
	 	 	
                    

                
	 	 	 
	Signature Page
                to Third Amended and Restated Credit Agreement

        	
                    

                     

                    

                

        

        

        	
                    ANNEX
                    A (Recitals)

                    to

                    CREDIT AGREEMENT

                    
                    DEFINITIONS

                
	 
                

        	
                                                
                Capitalized terms used in the
                Loan Documents shall have (unless otherwise provided elsewhere in the Loan
                Documents) the following respective meanings and all references to Sections,
                Exhibits, Schedules or Annexes in the following definitions shall refer to
                Sections, Exhibits, Schedules or Annexes of or to the Agreement:
	
                	 
	
                                                
                “2005 Year End
                Financial Information” has the meaning ascribed to it in subsection
                (q) of Annex E.
	
                	 
	
                                                
                “2006 Year End
                Financial Information” has the meaning ascribed to it in subsection
                (q) of Annex E.

        	 
                
	
                    
                                                    “
                    Account Debtor” means any Person who may become obligated to any
                    Credit Party under, with respect to, or on account of, an Account.

                    
                                                    
                    “Accounting
                    Changes” has the meaning ascribed thereto in Annex
                    G.

                    
                                                    
                    “Accounts”
                    means all “accounts,” as such term is defined in the Code, now
                    owned or hereafter acquired by any Credit Party, including (a) all accounts
                    receivable, other receivables, book debts and other forms of obligations (other
                    than forms of obligations evidenced by Chattel Paper, Documents or
                    Instruments), whether arising out of goods sold or services rendered by it or
                    from any other transaction (including any such obligations that may be
                    characterized as an account or contract right under the Code), (b) all of each
                    Credit Party’s rights in, to and under all purchase orders or receipts
                    for goods or services, (c) all of each Credit Party’s rights to any goods
                    represented by any of the foregoing (including unpaid sellers’ rights of
                    rescission, replevin, reclamation and stoppage in transit and rights to
                    returned, reclaimed or repossessed goods), (d) all monies due or to become due
                    to any Credit Party, under all purchase orders and contracts for the sale of
                    goods or the performance of services or both by such Credit Party or in
                    connection with any other transaction (whether or not yet earned by performance
                    on the part of such Credit Party), including the right to receive the proceeds
                    of said purchase orders and contracts, (e) all healthcare insurance
                    receivables, and (f) all collateral security and guaranties of any kind, now or
                    hereafter in existence, given by any Account Debtor or other Person with
                    respect to any of the foregoing.

                
	 
                

        	
                                                
                “Advance”
                means any Revolving Credit Advance or Swing Line Advance, as the context may
                require.

        	 
                
	
                    
                                                    
                    “Affiliate”
                    means, with respect to any Person, (a) each Person that, directly or
                    indirectly, owns or controls, whether beneficially, or as a trustee, guardian
                    or other fiduciary, 5% or more of the Stock having ordinary voting power in the
                    election of directors of such Person, (b) each Person that controls, is
                    controlled by or is under common control with such Person, (c) each of such
                    Person’s officers, directors, joint venturers and partners and (d) in the
                    case of Borrower, the immediate family members, spouses and lineal descendants
                    of individuals who are Affiliates

                

        	
                    

                    
                    A-1

                    

                

        

        

        	
                

        	of
                Borrower. For the purposes of this definition, “control” of a
                Person shall mean the possession, directly or indirectly, of the power to direct or
                cause the direction of its management or policies, whether through the ownership of
                voting securities, by contract or otherwise; provided, however, that
                the term “Affiliate” shall specifically exclude Agent and each
                Lender.
	
                	 
	
                                                
                “Agent”
                means GE Capital in its capacity as Agent for Lenders or its successor appointed
                pursuant to Section 9.7.

        	 
                
	
                    
                                                    
                    “Agreement”
                    means the Credit Agreement by and among Borrower, the other Credit Parties
                    party thereto, GE Capital, as Agent and Lender and the other Lenders from time
                    to time party thereto, as the same may be amended, supplemented, restated or
                    otherwise modified from time to time.

                
	 
                

        	
                                                “
                Anti-Terrorism Law” has the meaning ascribed to it in Section
                3.26(a). “Appendices” has the meaning ascribed to it in the
                recitals to the Agreement.

        	 
                
	
                    
                                                    
                    “Applicable
                    Commercial Paper Margin” means the per annum fee, from time to time,
                    in effect and payable in addition to the Commercial Paper Rate applicable to
                    the Revolving Loan, as determined by reference to Section
                    1.5(a).

                    
                                                    
                    “Applicable
                    Margins” means collectively the Applicable Revolver Index Margin, the
                    Applicable Revolver LIBOR Margin, the Applicable Commercial Paper Margin and
                    the Applicable Commercial Paper Margin.

                    
                                                    
                    “Applicable
                    Revolver Index Margin” means the per annum interest rate margin from
                    time to time in effect and payable in addition to the Index Rate applicable to
                    the Revolving Loan, as determined by reference to Section
                    1.5(a).

                    
                                                    
                    “Applicable
                    Revolver LIBOR Margin” means the per annum interest rate from time to
                    time in effect and payable in addition to the LIBOR Rate applicable to the
                    Revolving Loan, as determined by reference to Section 1.5(a).

                
	 
                

        	
                                                
                 
                “Assignment
                Agreement” has the meaning ascribed to it in Section 9.1
                (a).
	
                	 

        	
                                                
                 
                “Bankruptcy
                Code” means the provisions of Title 11 of the United States Code, 11
                U.S.C. §§ 101 et seq.
	 

        	
                                                
                 
                “Blocked
                Accounts” has the meaning ascribed to it in Annex C.
	
                	 
	
                                                
                 
                “Borrower”
                has the meaning ascribed thereto in the preamble to the Agreement.
	
                	 

        	
                                                 
                “Borrower Pledge
                Agreement” means the Pledge Agreement, dated the Original Closing Date,
                herewith executed by Borrower in favor of Agent, on behalf of itself and Lenders,
                pledging all Stock of its Subsidiaries, if any, and all Intercompany Notes owing to
                or held by it.

        	
                    

                    
                    A-2

                    

                

        

        

        	
                    
                                                    
                    “Borrower Security
                    Agreement” means the Second Amended and Restated Borrower Security
                    Agreement, dated the Original Closing Date, entered into by and among Agent, on
                    behalf of itself and Lenders, and Borrower.

                    
                                                    
                    “Borrowing
                    Availability” means as of any date of determination the lesser of (i)
                    the Maximum Account and (ii) the Borrowing Base, in each case, less the
                    sum of the Revolving Loan and Swing Line Loan then outstanding; provided that
                    an Overadvance in accordance with Section 1.1(a)(iii)  may cause
                    the Revolving Loan and Swing Line Loan to exceed the Borrowing Base by the
                    amount of such permitted Overadvance.

                    
                                                    
                    “Borrowing
                    Base” means, as of any date of determination by Agent, from time to
                    time, an amount equal to the sum at such time of:

                
	 
                

        	 	
                                
                (a)
                            
                up to 85% of the book value of Borrower’s Eligible Accounts at such
                time;
	
                	 
	 	
                                
                (b)
                           
                up to 75% of the book value of Borrower’s Eligible Pending Accounts
                Receivable and Fixed Contract Accounts Receivable (up to the maximum amount of
                $17,000,000 in the aggregate); and

        	 
                
	
                    in each case, less any
                    Reserves established by Agent at such time including, without limitation.
                    Reserves for the face amount of all issued Letters of Credit.

                
	 
                

        	
                                                
                “Borrowing Base
                Certificate” means a certificate to be executed and delivered from time
                to time by Borrower in the form attached to the Agreement as Exhibit 4.1
                (b).

        	 
                
	
                    
                                                    
                    “Business
                    Day” means any day that is not a Saturday, a Sunday or a day on which
                    banks are required or permitted to be closed in the State of New York and in
                    reference to LIBOR Loans shall mean any such day that is also a LIBOR Business
                    Day.

                
	 
                

        	
                                                
                “Butler
                Foundation” means Butler International Charitable Foundation Corp., a
                not-for-profit corporation organized under the laws of New Jersey.
	
                	 
	
                    
                                                    
                    “Butler
                    India” means Butler Technical Services India Private Limited, a
                    company organized under the law of India.

                    
                                                    “
                    Butler NJ” means Butler of New Jersey Realty Corp., a New Jersey
                    corporation.

                
	 

        	
                    
                                                    
                    “Capital
                    Expenditures” means, with respect to any Person, all expenditures (by
                    the expenditure of cash or the incurrence of Indebtedness) by such Person
                    during any measuring period for any fixed assets or improvements or for
                    replacements, substitutions or additions thereto, that have a useful life of
                    more than one year and that are required to be capitalized under
                    GAAP.

                    
                                                    
                    “Capital
                    Lease” means, with respect to any Person, any lease of any property
                    (whether real, personal or mixed) by such Person as lessee that, in accordance
                    with GAAP, would be required to be classified and accounted for as a capital
                    lease on a balance sheet of such Person.

                

        	
                    

                    
                    A-3

                    

                

        

        

        	
                    
                                                    
                    “Capital Lease
                    Obligation” means, with respect to any Capital Lease of any Person,
                    the amount of the obligation of the lessee thereunder that, in accordance with
                    GAAP, would appear on a balance sheet of such lessee in respect of such Capital
                    Lease.

                
	 
                

        	
                    
                                                    
                    “Cash Collateral
                    Account” has the meaning ascribed to it in Annex B.

                    
                                                    
                    “Cash
                    Equivalents” has the meaning ascribed to it in Annex
                    B.

                    
                                                    
                    “Cash Management
                    Letters” has the meaning ascribed to it in Annex D.

                    
                                                    
                    “Cash Management
                    Systems” has the meaning ascribed to it in Section
                    1.8.

                

        	 
                
	
                    
                                                    
                    “Change of
                    Control” means any of the following: (a) any person or group of
                    persons (within the meaning of the Securities Exchange Act of 1934) shall have
                    acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated by
                    the Securities and Exchange Commission under the Securities Exchange Act of
                    1934) of 20% or more of the issued and outstanding shares of capital Stock of
                    Holdings having the right to vote for the election of directors of Holdings
                    under ordinary circumstances; (b) during any period of twelve consecutive
                    calendar months, individuals who at the beginning of such period constituted
                    the board of directors of Holdings (together with any new directors whose
                    election by the board of directors of Holdings or whose nomination for election
                    by the Stockholders of Holdings was approved by a vote of at least two-thirds
                    of the directors then still in office who either were directors at the
                    beginning of such period or whose election or nomination for election was
                    previously so approved) cease for any reason other than death or disability to
                    constitute a majority of the directors then in office; (c) Holdings ceases to
                    own and control all of the economic and voting rights associated with all of
                    the outstanding capital Stock of Borrower; (d) Borrower ceases to own and
                    control all of the economic and voting rights associated with all of the
                    outstanding capital Stock of any of its Subsidiaries; (e) Edward M. Kopko shall
                    cease to be responsible for the day to day management of the Borrower; or (f)
                    any “change of control” or similar event occurs under the Second
                    Lien Credit Agreement.

                
	 
                

        	
                                                
                “Charges”
                means all federal, state, county, city, municipal, local, foreign or other
                governmental taxes (including taxes owed to the PBGC at the time due and payable),
                levies, assessments, charges, liens, claims or encumbrances upon or relating to (a)
                the Collateral, (b) the Obligations, (c) the employees, payroll, income or gross
                receipts of any Credit Party, (d) any Credit Party’s ownership or use of any
                properties or other assets, or (e) any other aspect of any Credit Party’s
                business.

        	 
                
	
                    
                                                    
                    “Chattel
                    Paper” means any “chattel paper,” as such term is defined
                    in the Code, including electronic chattel paper, now owned or hereafter
                    acquired by any Credit Party, wherever located.

                
	 
                

        	
                                                
                “Closing Date” means August 29, 2007.

        	 
                
	
                    
                                                    
                    “Closing
                    Checklist” means the schedule, including all appendices, exhibits or
                    schedules thereto, listing certain documents and information to be delivered in
                    connection with the Agreement, the other Loan Documents and the transactions
                    contemplated thereunder, substantially in the form attached hereto as Annex
                    D.

                

        	
                    

                    
                    A-4

                    

                

        

        

        	
                    
                                                    
                    “Code”
                    means the Uniform Commercial Code as the same may, from time to time, be
                    enacted and in effect in the State of New York; provided, that in the
                    event that, by reason of mandatory provisions of law, any or all of the
                    attachment, perfection or priority of, or remedies with respect to,
                    Agent’s or any Lender’s Lien on any Collateral is governed by the
                    Uniform Commercial Code as enacted and in effect in a jurisdiction other than
                    the State of New York, the term “Code” shall mean the
                    Uniform Commercial Code as enacted and in effect in such other jurisdiction
                    solely for purposes of the provisions thereof relating to such attachment,
                    perfection, priority or remedies and for purposes of definitions related to
                    such provisions.

                
	 
                

        	
                    
                                                    “
                    Collateral” means the property covered by the Security Agreement,
                    the Intellectual Property Security Agreement, the Mortgages and the other
                    Collateral Documents and any other property, real or personal, tangible or
                    intangible, now existing or hereafter acquired, that may at any time be or
                    become subject to a security interest or Lien in favor of Agent, on behalf of
                    itself and Lenders, to secure the Obligations.

                    
                                                    
                    “Collateral
                    Documents” means the Security Agreements, the Pledge Agreements, the
                    Guaranties, the Intellectual Property Security Agreement, the Omnibus Amendment
                    and Confirmation of Collateral Documents Agreement, the Mortgages and all
                    similar agreements entered into guaranteeing payment of, or granting a Lien
                    upon property as security for payment of, the Obligations.

                
	 
                

        	
                                                
                “Collateral
                Reports” means the reports with respect to the Collateral referred to in
                Annex F.
	 
	
                                                
                “Collection
                Account” means that certain account of Agent, account number 502-328-54
                in the name of Agent at Bankers Trust Company in New York, New York ABA No. 021 001
                033, or such other account as may be specified in writing by Agent as the
                “Collection Account”.

        	 
                
	
                    
                                                    
                    “Commercial Paper
                    Rate” shall mean the latest rate for 30-day dealer placed commercial
                    paper (which for purposes hereof shall mean high grade unsecured notes sold
                    through dealers by major corporations in multiples of $1,000) which normally is
                    published in the “Money Rates” section of The Wall Street Journal
                    (or if such rate ceases to be so published, as quoted from such other generally
                    available and recognizable source as Agent may select). The Commercial Paper
                    Rate shall be determined (i) on the first Business Day immediately prior to the
                    Closing Date and (ii) thereafter, on the last Business Day of each calendar
                    month for calculation of interest for the following month.

                    
                                                    
                    “Commitment
                    Termination Date” means the earliest of (a) February 1, 2008, (b) the
                    date of termination of Lenders’ obligations to make Advances and to incur
                    Letter of Credit Obligations or permit existing Loans to remain outstanding
                    pursuant to Section 8.2(b), and (c) the date of indefeasible prepayment
                    in full by Borrower of the Loans and the cancellation and return (or stand-by
                    guarantee) of all Letters of Credit or the cash collateralization of all Letter
                    of Credit Obligations pursuant to Annex B, and the permanent reduction
                    of the Commitments to zero dollars ($0).

                

        	
                    

                    
                    A-5

                    

                

        

        

        	
                    
                                                    
                    “Commitments”
                    means (a) as to any Lender, the aggregate of such Lender’s Revolving Loan
                    Commitment (including without duplication the Swing Line Lender’s Swing
                    Line Commitment as a subset of its Revolving Loan Commitment) and (b) as to all
                    Lenders, the aggregate of all Lenders’ Revolving Loan Commitments
                    (including without duplication the Swing Line Lender’s Swing Line
                    Commitment as a subset of its Revolving Loan Commitment), which aggregate
                    commitment shall be Forty-Five Million ($45,000,000) on the Closing Date, as to
                    each of clauses (a) and (b), as such Commitments may be reduced,
                    amortized or adjusted from time to time in accordance with the
                    Agreement.

                    
                                                    
                    “Compliance
                    Certificate” has the meaning ascribed to it in Annex
                    E.

                    
                                                    
                    “Concentration
                    Account” has the meaning ascribed to it in Annex C.

                    
                                                    
                    “Consolidated
                    Interest Expense” means, for any period, the sum of the amount which
                    would, in conformity with GAAP, be set forth opposite the captions
                    “interest expense” or any like caption (expressed as a negative
                    number) in each case on a consolidated income statement of Holdings and its
                    Subsidiaries; provided, however, that all interest expense
                    associated with the Borrower’s real estate holdings shall be included
                    with such amount.

                    
                                                    
                    “Consolidated Net
                    Income” means, for any fiscal period, the consolidated net income (or
                    loss) of Holdings and its Subsidiaries for such period, determined on a
                    consolidated basis in accordance with GAAP.

                    
                                                    
                    “Contracts”
                    means all “contracts,” as such term is defined in the Code, now
                    owned or hereafter acquired by any Credit Party, in any event, including all
                    contracts, undertakings, or agreements (other than rights evidenced by Chattel
                    Paper, Documents or Instruments) in or under which any Credit Party may now or
                    hereafter have any right, title or interest, including any agreement relating
                    to the terms of payment or the terms of performance of any Account.

                    
                                                    
                    “Control
                    Letter” means a letter agreement between Agent and (i) the issuer of
                    uncertificated securities with respect to uncertificated securities in the name
                    of any Credit Party, (ii) a securities intermediary with respect to securities,
                    whether certificated or uncertificated, securities entitlements and other
                    financial assets held in a securities account in the name of any Credit Party,
                    (iii) a futures commission merchant or clearing house, as applicable, with
                    respect to commodity accounts and commodity contracts held by any Credit Party,
                    whereby, among other things, the issuer, securities intermediary or futures
                    commission merchant disclaims any security interest in the applicable financial
                    assets, acknowledges the Lien of Agent, on behalf of itself and Lenders, on
                    such financial assets, and agrees to follow the instructions or entitlement
                    orders of Agent without further consent by the affected Credit
                    Party.

                
	 
                

        	
                                                
                “Copyright
                License” means any and all rights now owned or hereafter acquired by any
                Credit Party under any written agreement granting any right to use any Copyright or
                Copyright registration.
	 
	
                                                
                “Copyrights”
                means all of the following now owned or hereafter adopted or acquired by any Credit
                Party: (a) all copyrights and General Intangibles of like nature (whether
                registered or unregistered), all registrations and recordings thereof, and all
                applications in

        	
                    

                    
                    A-6

                    

                

        

        

        	
                    connection therewith,
                    including all registrations, recordings and applications in the United States
                    Copyright Office or in any similar office or agency of the United States, any
                    state or territory thereof, or any other country or any political subdivision
                    thereof, and (b) all reissues, extensions or renewals thereof.

                
	 
                

        	
                                                
                 
                “Credit
                Parties” means Holdings, Borrower, and each of Holdings’
                Subsidiaries other than Butler India, Butler Foundation, AAC Corp or Sylvan
                Insurance Co., Ltd.

        	 
                
	
                    
                                                    
                    “Default”
                    means any event that, with the passage of time or notice or both, would, unless
                    cured or waived, become an Event of Default.

                
	 
                

        	
                                                
                “Default
                Rate” has the meaning ascribed to it in Section
                1.5(d).
	
                	 

        	
                    
                                                    
                    “Deposit
                    Accounts” means all “deposit accounts” as such term is
                    defined in the Code, now or hereafter held in the name of any Credit
                    Party.

                    
                                                    
                    “Disbursement
                    Accounts” has the meaning ascribed to it in Annex
                    C.

                

        	 	 
	
                                                
                “Disclosure
                Schedules” means the Schedules prepared by Borrower and denominated as
                Disclosure Schedules 1.4 through 6.7 in the Index to the
                Agreement.
	
                	 
	
                                                
                “Documents”
                means any “documents,” as such term is defined in the Code, now owned
                or hereafter acquired by any Credit Party, wherever located.
	
                	 

        	
                                                
                “Dollars” or
                “$” means lawful currency of the United States of America.
	
                	 

        	
                                                
                “EBIT”
                means, for any period, Consolidated Net Income for such period, plus (i)
                Consolidated Interest Expense in such period, plus (ii) deferred financing cost
                amortization, plus (iii) all charges in such period for federal, state and
                local income taxes excluding (iv) all extraordinary nonrecurring items of
                income or loss.

        	 
                
	
                    
                                                    
                    “EBITDA”
                    means, for any period, EBIT for such period, plus (i) all charges in
                    such period for amortization of intangibles, depletion and depreciation, (ii)
                    the amount of non-cash charges as the result of any grant to any Person of
                    Stock or other non-cash consideration, (iii) actual fees and expenses incurred
                    in connection with the Related Transactions (including, without limitation,
                    forbearance fees paid prior to the effectiveness of this Agreement) as set
                    forth in writing to Agent and acceptable to Agent in its sole discretion, (iv)
                    charges related to the Levine Leichtman transaction, expenses associated with
                    the audit process for the 2004, 2005 and 2006 Fiscal Years and severance costs
                    paid to the former chief financial officer and (v) non­recurring,
                    extraordinary items set forth in writing to the Agent and acceptable to Agent
                    in its sole discretion, in each case, to the extent deducted in determining
                    Consolidated Net Income for such period.

                
	 
                

        	
                                                
                “Eligible
                Accounts” has the meaning ascribed to it in Section 1.6 of the
                Agreement.
	
                	 
	
                                                
                “Eligible Pending
                Accounts Receivable and Fixed Contract Accounts Receivable” has the
                meaning ascribed to in Section 1.7 of the Agreement.

        	
                    

                    
                    A-7

                    

                

        

        

        	
                    
                                                    
                    “Environmental
                    Laws” means all applicable federal, state, local and foreign laws,
                    statutes, ordinances, codes, rules, standards and regulations, now or hereafter
                    in effect, and any applicable judicial or administrative interpretation
                    thereof, including any applicable judicial or administrative order, consent
                    decree, order or judgment, imposing liability or standards of conduct for or
                    relating to the regulation and protection of human health, safety, the
                    environment and natural resources (including ambient air, surface water,
                    groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic
                    species and vegetation). Environmental Laws include the Comprehensive
                    Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C.
                    §§9601 et seq.) (“CERCLA”); the Hazardous
                    Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101
                    et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act (7
                    U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act (42
                    U.S.C. §§ 6901 et seq.); the Toxic Substance Control Act (15
                    U.S.C. §§ 2601 et seq.); the Clean Air Act (42 U.S.C.
                    §§ 7401 et seq.); the Federal Water Pollution Control Act (33
                    U.S.C. §§ 1251 et seq.); the Occupational Safety and Health
                    Act (29 U.S.C. §§ 651 et seq.); and the Safe Drinking Water
                    Act (42 U.S.C. §§ 300(f) et seq.), and any and all regulations
                    promulgated thereunder, and all analogous state, local and foreign counterparts
                    or equivalents and any transfer of ownership notification or approval
                    statutes.

                
	 
                

        	
                                                
                “Environmental
                Liabilities” means, with respect to any Person, all liabilities,
                obligations, responsibilities, response, remedial and removal costs, investigation
                and feasibility study costs, capital costs, operation and maintenance costs,
                losses, damages, punitive damages, property damages, natural resource damages,
                consequential damages, treble damages, costs and expenses (including all reasonable
                fees, disbursements and expenses of counsel, experts and consultants), fines,
                penalties, sanctions and interest incurred as a result of or related to any claim,
                suit, action, investigation, proceeding or demand by any Person, whether based in
                contract, tort, implied or express warranty, strict liability, criminal or civil
                statute or common law, including any arising under or related to any Environmental
                Laws, Environmental Permits, or in connection with any Release or threatened
                Release or presence of a Hazardous Material whether on, at, in, under, from or
                about or in the vicinity of any real or personal property.

        	 
                
	
                    
                                                    
                    “Environmental
                    Permits” means all permits, licenses, authorizations, certificates,
                    approvals or registrations required by any Governmental Authority under any
                    Environmental Laws.

                    
                                                    
                    “Equipment”
                    means all “equipment,” as such term is defined in the Code, now
                    owned or hereafter acquired by any Credit Party, wherever located and, in any
                    event, including all such Credit Party’s machinery and equipment,
                    including processing equipment, conveyors, machine tools, data processing and
                    computer equipment, including embedded software and peripheral equipment and
                    all engineering, processing and manufacturing equipment, office machinery,
                    furniture, materials handling equipment, tools, attachments, accessories,
                    automotive equipment, trailers, trucks, forklifts, molds, dies, stamps, motor
                    vehicles, rolling stock and other equipment of every kind and nature, trade
                    fixtures and fixtures not forming a part of real property, together with all
                    additions and accessions thereto, replacements therefor, all parts therefor,
                    all substitutes for any of the foregoing, fuel therefor, and all manuals,
                    drawings, instructions, warranties and rights with respect thereto, and all
                    products and proceeds thereof and condemnation awards and insurance proceeds
                    with respect thereto.

                

        	
                    

                    
                    A-8

                    

                

        

        

        	
                                                
                “ERISA”
                means the Employee Retirement Income Security Act of 1974, as amended from time to
                time, and any regulations promulgated thereunder.
	
                	 
	
                                                
                “ERISA
                Affiliate” means, with respect to any Credit Party, any trade or business
                (whether or not incorporated) that, together with such Credit Party, are treated as
                a single employer within the meaning of Sections 414(b), (c), (m) or (o) of the
                IRC.

        	 
                
	
                    
                                                    
                    “ERISA
                    Event” means, with respect to any Credit Party or any ERISA
                    Affiliate, (a) any event described in Section 4043(c) of ERISA with respect to
                    a Title IV Plan; (b) the withdrawal of any Credit Party or ERISA Affiliate from
                    a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it
                    was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (c) the
                    complete or partial withdrawal of any Credit Party or any ERISA Affiliate from
                    any Multiemployer Plan; (d) the filing of a notice of intent to terminate a
                    Title IV Plan or the treatment of a plan amendment as a termination under
                    Section 4041 of ERISA; (e) the institution of proceedings to terminate a Title
                    IV Plan or Multiemployer Plan by the PBGC; (f) the failure by any Credit Party
                    or ERISA Affiliate to make when due required contributions to a Multiemployer
                    Plan or Title IV Plan unless such failure is cured within 30 days; (g) any
                    other event or condition that might reasonably be expected to constitute
                    grounds under Section 4042 of ERISA for the termination of, or the appointment
                    of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the
                    imposition of liability under Section 4069 or 4212(c) of ERISA; (h) the
                    termination of a Multiemployer Plan under Section 4041A of ERISA or the
                    reorganization or insolvency of a Multiemployer Plan under Section 4241 or 4245
                    of ERISA; or (i) the loss of a Qualified Plan’s qualification or tax
                    exempt status; or (j) the termination of a Plan described in Section 4064 of
                    ERISA.

                
	 
                

        	
                                                
                “ESOP” means
                a Plan that is intended to satisfy the requirements of Section 4975(e)(7) of the
                IRC.
	
                	 

        	
                                                
                “Event of
                Default” has the meaning ascribed to it in Section
                8.1.
	
                	 

        	
                    
                                                    
                    “Excess Cash
                    Flow” means, without duplication, with respect to any Fiscal Year of
                    Holdings and its Subsidiaries, EBITDA minus (a) Capital Expenditures during
                    such Fiscal Year (excluding the financed portion thereof), minus (b) Interest
                    Expense paid or accrued (excluding any original issue discount, interest paid
                    in kind or amortized debt discount, to the extent included in determining
                    Interest Expense) and scheduled principal payments paid or payable in respect
                    of Funded Debt, minus (c) Restricted Payments made to any Person other than a
                    Credit Party during such Fiscal Year, minus (d) prepayments paid in cash
                    pursuant to Sections 1.3(a), (b)(i) and (b)(iii) of the Second Lien Credit
                    Agreement and pursuant to Section 1.3 of this Agreement (other than mandatory
                    prepayments made pursuant to Sections 1.3(b)(i), (b)(ii), (b)(iv) or 1.3(d) of
                    the this Agreement), minus (e) amounts actually paid by Holdings and its
                    Subsidiaries for federal, state and local income tax obligations.

                    
                                                    
                    “Executive
                    Order” has the meaning ascribed to it in Section
                    3.26(a).

                

        	 	 
	
                                                
                “Existing Credit
                Agreement” has the meaning ascribed to it in the recitals to the
                Agreement.

        	
                    

                    
                    A-9

                    

                

        

        

        	
                                                
                “Existing
                Obligations” has the meaning ascribed to it in the recitals to the
                Agreement.

        	 
                
	
                    
                                                    
                    “Extended
                    Accounts” means those Accounts owned by the following Account
                    Debtors: Adelphia Communications Corporation, Citibank, N.A., Worldcom, Inc.;
                    Prudential Insurance Company of America; Pacific Bell Telephone Company;
                    Verizon Communications; and Sikorsky Aircraft Corporation. Borrower shall be
                    entitled to change the composition of Extended Accounts up to two (2) times in
                    any Fiscal Year provided it gives Agent and the Lenders not less than thirty
                    (30) days prior written notice of such change except that any Account of
                    General Electric Company or its Subsidiaries or Affiliates shall not be deemed
                    an Extended Account.

                
	 
                

        	
                                                
                “Fair Labor Standards
                Act” means the Fair Labor Standards Act, 29 U.S.C. §201 et
                seq.

        	 
                
	
                    
                                                    
                    “Federal Funds
                    Rate” means, for any day, a floating rate equal to the weighted
                    average of the rates on overnight federal funds transactions among members of
                    the Federal Reserve System, as determined by Agent in its sole discretion,
                    which determination shall be final, binding and conclusive (absent manifest
                    error).

                
	 
                

        	
                                                
                “Federal Reserve
                Board” means the Board of Governors of the Federal Reserve
                System.
	
                	 
	
                                                
                “Fees” means
                any and all fees payable to Agent or any Lender pursuant to the Agreement or any of
                the other Loan Documents.
	
                	 

        	
                                                
                “Financial
                Covenants” means the financial covenants set forth in Annex
                G.

        	 
                
	
                    
                                                    
                    “Financial
                    Statements” means the consolidated and consolidating income
                    statements, statements of cash flows and balance sheets of Borrower delivered
                    in accordance with Section 3.4 and Annex E.

                
	 
                

        	
                                                
                “Fiscal
                Month” means any of the monthly accounting periods of
                Borrower.
	
                	 

        	
                                                
                “Fiscal
                Quarter” means any of the quarterly accounting periods of Borrower,
                ending on or about the last day of March, June, September and December of each
                year.

        	 
                
	
                    
                                                    
                    “Fiscal
                    Year” means any of the annual accounting periods of Borrower ending
                    on December 31 of each year.

                    
                                                    
                    “Fixed
                    Charges” means, with respect to any Person for any fiscal period, (a)
                    the aggregate of all Interest Expense paid in cash during such period, plus (b)
                    scheduled payments of principal with respect to Indebtedness during such
                    period, plus (c) Capital Expenditures during such period (excluding the
                    financed portion thereof) plus (d) amounts actually paid by Holdings and its
                    Subsidiaries for federal, state and local income tax obligations, plus (e)
                    Restricted Payments paid to any Person other than a Credit Party during such
                    period, minus (f) any payments received as a result of tax refunds.

                

        	
                    

                    
                    A-10

                    

                

        

        

        	
                                                
                “Fixed Charge Coverage
                Ratio” means, with respect to any Person for any fiscal period, the ratio
                of EBITDA to Fixed Charges.
	
                	 
	
                                                
                “Fixtures”
                means all “fixtures” as such term is defined in the Code, now owned or
                hereafter acquired by any Credit Party.

        	 
                
	
                    
                                                    
                    “Funded
                    Debt” means, with respect to any Person, without duplication, all
                    Indebtedness for borrowed money evidenced by notes, bonds, debentures, or
                    similar evidences of Indebtedness and that by its terms matures more than one
                    year from, or is directly or indirectly renewable or extendible at such
                    Person’s option under a revolving credit or similar agreement obligating
                    the lender or lenders to extend credit over a period of more than one year from
                    the date of creation thereof, and specifically including Capital Lease
                    Obligations, current maturities of long-term debt, revolving credit and
                    short-term debt extendible beyond one year at the option of the debtor, and
                    also including, in the case of Borrower, the Obligations, the Second Lien
                    Indebtedness and, without duplication, Guaranteed Indebtedness consisting of
                    guaranties of Funded Debt of other Persons, but excluding, without duplication,
                    unmatured obligations with respect to letters of credit; provided, that
                    solely for the purposes of calculating the Leverage Ratio for periods ending on
                    or before February 1, 2008, there shall be added to Funded Debt (i) the net
                    proceeds from any sale, transfer, conveyance, assignment or other disposition
                    of all or any portion of the Montvale Property and (ii) the net proceeds from
                    any sale or offering of Holdings Stock after the Closing Date except to the
                    extent such proceeds are used to make a Restricted Payment permitted under
                    Section 6.14(f).

                
	 
                

        	
                                                
                “GAAP” means
                generally accepted accounting principles in the United States of America,
                consistently applied, as such term is further defined in Annex G to the
                Agreement.
	
                	 
	
                                                
                “GE Capital”
                means General Electric Capital Corporation, a Delaware corporation.

        	 
                
	
                    
                                                    
                    “GE Capital Fee
                    Letter” means that certain letter, dated as of the Original Closing
                    Date, between GE Capital and Borrower with respect to certain Fees to be paid
                    from time to time by Borrower to GE Capital.

                    
                                                    
                    “General
                    Intangibles” means “general intangibles,” as such term is
                    defined in the Code, now owned or hereafter acquired by any Credit Party,
                    including all right, title and interest that such Credit Party may now or
                    hereafter have in or under any Contract, all payment intangibles, customer
                    lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefor
                    and reissues, extensions or renewals thereof, rights in Intellectual Property,
                    interests in partnerships, joint ventures and other business associations,
                    licenses, permits, copyrights, trade secrets, proprietary or confidential
                    information, inventions (whether or not patented or patentable), technical
                    information, procedures, designs, knowledge, know-how, software, data bases,
                    data, skill, expertise, experience, processes, models, drawings, materials and
                    records, goodwill (including the goodwill associated with any Trademark or
                    Trademark License), all rights and claims in or under insurance policies
                    (including insurance for fire, damage, loss and casualty, whether covering
                    personal property, real property, tangible rights or intangible rights, all
                    liability, life, key man and business interruption insurance, and all unearned
                    premiums), uncertificated securities, choses in action, deposit, checking and
                    other bank accounts, rights to

                

        	
                    

                    
                    A-11

                    

                

        

        

        	
                    receive tax refunds and
                    other payments, rights to receive dividends, distributions, cash, Instruments
                    and other property in respect of or in exchange for pledged Stock and
                    Investment Property, rights of indemnification, all books and records,
                    correspondence, credit files, invoices and other papers, including without
                    limitation all tapes, cards, computer runs and other papers and documents in
                    the possession or under the control of such Credit Party or any computer bureau
                    or service company from time to time acting for such Credit Party.

                
	 
                

        	
                                                
                “Goods”
                means any “goods” as defined in the Code, now owned or hereafter
                acquired by any Credit Party, including embedded software.
	
                	 
	
                                                
                “Governmental
                Authority” means any nation or government, any state or other political
                subdivision thereof, and any agency, department or other entity exercising
                executive, legislative, judicial, regulatory or administrative functions of or
                pertaining to government.

        	 
                
	
                    
                                                    
                    “Guaranteed
                    Indebtedness” means, as to any Person, any obligation of such Person
                    guaranteeing, providing comfort or otherwise supporting any Indebtedness,
                    lease, dividend, or other obligation (“primary obligation”)
                    of any other Person (the “primary obligor”) in any manner,
                    including any obligation or arrangement of such Person to (a) purchase or
                    repurchase any such primary obligation, (b) advance or supply funds (i) for the
                    purchase or payment of any such primary obligation or (ii) to maintain working
                    capital or equity capital of the primary obligor or otherwise to maintain the
                    net worth or solvency or any balance sheet condition of the primary obligor,
                    (c) purchase property, securities or services primarily for the purpose of
                    assuring the owner of any such primary obligation of the ability of the primary
                    obligor to make payment of such primary obligation, (d) protect the beneficiary
                    of such arrangement from loss (other than product warranties given in the
                    ordinary course of business) or (e) indemnify the owner of such primary
                    obligation against loss in respect thereof. The amount of any Guaranteed
                    Indebtedness at any time shall be deemed to be an amount equal to the lesser at
                    such time of (x) the stated or determinable amount of the primary obligation in
                    respect of which such Guaranteed Indebtedness is incurred and (y) the maximum
                    amount for which such Person may be liable pursuant to the terms of the
                    instrument embodying such Guaranteed Indebtedness, or, if not stated or
                    determinable, the maximum reasonably anticipated liability (assuming full
                    performance) in respect thereof.

                
	 
                

        	
                                                
                “Guaranties”
                means, collectively, the Holdings Guaranty, each Subsidiary Guaranty and any other
                guaranty executed by any Guarantor in favor of Agent and Lenders in respect of the
                Obligations.

        	 
                
	
                    
                                                    
                    “Guarantors”
                    means Holdings, each Subsidiary of Holdings (other than Butler India, Butler
                    Foundation, AAC Corp. and Sylvan Insurance Co., Ltd.), each other Person, if
                    any, that executes a guaranty or other similar agreement in favor of Agent, for
                    itself and the ratable benefit of Lenders, in connection with the transactions
                    contemplated by the Agreement and the other Loan Documents.

                
	 
                

        	
                                                
                “Hazardous
                Material” means any substance, material or waste that is regulated by, or
                forms the basis of liability now or hereafter under, any Environmental Laws,
                including any material or substance that is (a) defined as a “solid
                waste,” “hazardous waste,” “hazardous material,”
                “hazardous substance,” “extremely hazardous waste,”
                “restricted hazardous waste,”

        	
                    

                    
                    A-12

                    

                

        

        

        	
                    “pollutant,”
                    “contaminant,” “hazardous constituent,” “special
                    waste,” “toxic substance” or other similar term or phrase
                    under any Environmental Laws, or (b) petroleum or any fraction or by-product
                    thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive
                    substance.

                
	 
                

        	
                                                
                “Holdings”
                has the meaning ascribed thereto in the recitals to the Agreement.
	
                	 

        	
                                                
                “Holdings
                Guaranty” means the Amended and Restated Parent Guaranty dated as of
                November 7, 1997 executed by Holdings in favor of Agent, on behalf of itself and
                Lenders, as amended and confirmed by the Omnibus Amendment and Confirmation of
                Collateral Documents Agreement.
	
                	 
	
                                                
                “Holdings Pledge
                Agreement” means the Pledge Agreement, dated the Original Closing Date,
                executed by Holdings in favor of Agent, on behalf of itself and Lenders, pledging
                all Stock of Borrower.
	
                	 

        	
                                                
                “Holdings Security
                Agreement” has the meaning ascribed to it in Section
                3.24.

        	 
                
	
                    
                                                    
                    “Indebtedness”
                    means , with respect to any Person, without duplication (a) all indebtedness of
                    such Person for borrowed money or for the deferred purchase price of property
                    payment for which is deferred 6 months or more, but excluding obligations to
                    trade creditors incurred in the ordinary course of business that are unsecured
                    and not overdue by more than 6 months unless being contested in good faith, (b)
                    all reimbursement and other obligations with respect to letters of credit,
                    bankers’ acceptances and surety bonds, whether or not matured, (c) all
                    obligations evidenced by notes, bonds, debentures or similar instruments, (d)
                    all indebtedness created or arising under any conditional sale or other title
                    retention agreement with respect to property acquired by such Person (even
                    though the rights and remedies of the seller or lender under such agreement in
                    the event of default are limited to repossession or sale of such property), (e)
                    all Capital Lease Obligations and the present value (discounted at the Index
                    Rate as in effect on the Closing Date) of future rental payments under all
                    synthetic leases, (f) all obligations of such Person under commodity purchase
                    or option agreements or other commodity price hedging arrangements, in each
                    case whether contingent or matured, (g) all obligations of such Person under
                    any foreign exchange contract, currency swap agreement, interest rate swap, cap
                    or collar agreement or other similar agreement or arrangement designed to alter
                    the risks of that Person arising from fluctuations in currency values or
                    interest rates, in each case whether contingent or matured, (h) all
                    Indebtedness referred to above secured by (or for which the holder of such
                    Indebtedness has an existing right, contingent or otherwise, to be secured by)
                    any Lien upon or in property or other assets (including accounts and contract
                    rights) owned by such Person, even though such Person has not assumed or become
                    liable for the payment of such Indebtedness, and (i) the
                    Obligations.

                
	 
                

        	
                                                “
                Indemnified Liabilities” has the meaning ascribed to it in Section
                1.13. “Indemnified Person” has the meaning ascribed to it in
                Section 1.13.
	
                	 

        	
                                                
                “Index Rate”
                means, for any day, a floating rate equal to the higher of (i) the rate publicly
                quoted from time to time by The Wall Street Journal as the “base rate
                on corporate loans posted by at least 75% of the nation’s 30 largest
                banks” (or, if The Wall Street Journal ceases quoting a base rate of
                the type described, the highest per annum rate of interest published by
                the

        	
                    

                    
                    A-13

                    

                

        

        

        	
                    Federal Reserve Board in
                    Federal Reserve statistical release H.15 (519) entitled “Selected
                    Interest Rates” as the Bank prime loan rate or its equivalent), and (ii)
                    the Federal Funds Rate plus 50 basis points per annum. Each change in any
                    interest rate provided for in the Agreement based upon the Index Rate shall
                    take effect at the time of such change in the Index Rate.

                    
                                                    
                    “Index Rate
                    Loan” means a Loan or portion thereof bearing interest by reference
                    to the Index Rate.

                    
                                                    
                    “Instruments”
                    means all “instruments,” as such term is defined in the Code, now
                    owned or hereafter acquired by any Credit Party, wherever located, and, in any
                    event, including all certificated securities, all certificates of deposit, and
                    all notes and other, without limitation, evidences of indebtedness, other than
                    instruments that constitute, or are a part of a group of writings that
                    constitute, Chattel Paper.

                    
                                                    
                    “Intellectual Property” means any and all Licenses, Patents, Copyrights, Trademarks,
                and the goodwill associated with such Trademarks.

                
	 
                

        	
                    
                                                    
                    “Intellectual
                    Property Security Agreement” means the Intellectual Property Security
                    Agreement dated the Original Closing Date made in favor of Agent on behalf of
                    itself and Lenders, by each applicable Credit Party.

                    
                                                    
                    “
                    Intercompany Notes” has the meaning ascribed to it in Section
                    6.3.

                    
                                                    
                    “Intercreditor
                    Agreement” means that certain Intercreditor Agreement, dated as of
                    August 29, 2007, as amended, restated or replaced from time to time, entered
                    into by Agent and the agent for holders of Second Lien Indebtedness.

                    
                                                    
                    “Interest
                    Expense” means, with respect to any Person for any fiscal period,
                    interest expense (whether cash or non-cash) of such Person determined in
                    accordance with GAAP for the relevant period ended on such date, including
                    interest expense with respect to any Funded Debt of such Person and interest
                    expense for the relevant period that has been capitalized on the balance sheet
                    of such Person, but excluding deferred financing cost amortization.

                    
                                                    
                    “Interest Payment
                    Date” means (a) as to any Index Rate Loan, the first Business Day of
                    each month to occur while such Loan is outstanding, and (b) as to any LIBOR
                    Loan, the last day of the applicable LIBOR Period; provided that, in
                    addition to the foregoing, each of (x) the date upon which all of the
                    Commitments have been terminated and the Loans have been paid in full and (y)
                    the Commitment Termination Date shall be deemed to be an “Interest
                    Payment Date” with respect to any interest that has then accrued
                    under the Agreement.

                    
                                                    
                    “Inventory”
                    means any “inventory,” as such term is defined in the Code, now
                    owned or hereafter acquired by any Credit Party, wherever located, and in any
                    event including inventory, merchandise, goods and other personal property that
                    are held by or on behalf of any Credit Party for sale or lease or are furnished
                    or are to be furnished under a contract of service, or that constitute raw
                    materials, work in process, finished goods, returned goods, supplies or
                    materials of any kind, nature or description used or consumed or to be used or
                    consumed in such Credit Party’s business or in the processing,
                    production, packaging, promotion, delivery or shipping of the same, including
                    other supplies and embedded software.

                

        	
                    

                    
                    A-14

                    

                

        

        

        	
                    
                                                    
                    “Investment
                    Property” means all “investment property” as such term is
                    defined in the Code now owned or hereafter acquired by any Credit Party,
                    wherever located, including (i) all securities, whether certificated or
                    uncertificated, including stocks, bonds, interests in limited liability
                    companies, partnership interests, treasuries, certificates of deposit, and
                    mutual fund shares; (ii) all securities entitlements of any Credit Party,
                    including the rights of such Credit Party to any securities account and the
                    financial assets held by a securities intermediary in such securities account
                    and any free credit balance or other money owing by any securities intermediary
                    with respect to that account; (iii) all securities accounts of any Credit
                    Party; (iv) all commodity contracts of any Credit Party; and (v) all commodity
                    accounts held by any Credit Party.

                
	 
                

        	
                                                
                “IRC” means
                the Internal Revenue Code of 1986, as amended, and all regulations promulgated
                thereunder.
	
                	 

        	
                                                
                “IRS” means
                the Internal Revenue Service.
	
                	 
	
                                                
                “L/C Issuer”
                has the meaning ascribed to it in Annex B.
	
                	 
	
                                                
                “L/C
                Sublimit” has the meaning ascribed to in it Annex B.

        	 
                
	
                    
                                                    
                    “Lenders”
                    means GE Capital, the other Lenders named on the signature pages of the
                    Agreement, and, if any such Lender shall decide to assign all or any portion of
                    the Obligations, such term shall include any assignee of such
                    Lender.

                    
                                                    
                    “Letter of Credit Fee” has the meaning ascribed to it in Annex
                    B.

                    
                                                    
                    “Letter of Credit
                    Obligations” means all outstanding obligations incurred by Agent and
                    Lenders at the request of Borrower, whether direct or indirect, contingent or
                    otherwise, due or not due, in connection with the issuance of Letters of Credit
                    by Agent or another L/C Issuer or the purchase of a participation as set forth
                    in Annex B with respect to any Letter of Credit. The amount of such
                    Letter of Credit Obligations shall equal the maximum amount that may be payable
                    by Agent or Lenders thereupon or pursuant thereto.

                    
                                                    
                    “Letter-of-Credit
                    Rights” means letter-of-credit rights as such term is defined in the
                    Code, now owned or hereafter acquired by any Credit Party, including rights to
                    payment or performance under a letter of credit, whether or not such Credit
                    Party, as beneficiary, has demanded or is entitled to demand payment or
                    performance.

                    
                                                    
                    “Letters of
                    Credit” means standby letters of credit issued (including issued
                    pursuant to the Existing Credit Agreement) for the account of Borrower by any
                    L/C Issuer, and bankers’ acceptances issued by Borrower, for which Agent
                    and Lenders have incurred Letter of Credit Obligations.

                
	 
                

        	
                                                
                “Leverage
                Ratio” means, with respect to any Person for any twelve (12) month fiscal
                period ending on any date of determination, the ratio of (a) Funded Debt as of any
                date of determination, to (b) EBITDA for the twelve (12) months ending on that date
                of determination.

        	
                    

                    
                    A-15

                    

                

        

        

        	
                    
                                                    
                    “LIBOR Business
                    Day” means a Business Day on which banks in the City of London are
                    generally open for interbank or foreign exchange transactions.

                    
                                                    
                    “LIBOR
                    Loan” means a Loan or any portion thereof bearing interest by
                    reference to the LIBOR Rate.

                    
                                                    
                    “LIBOR
                    Period” means, with respect to any LIBOR Loan, each period commencing
                    on a LIBOR Business Day selected by Borrower pursuant to the Agreement and
                    ending one, two or three months thereafter, as selected by Borrower’s
                    irrevocable notice to Agent as set forth in Section 1.5(e);
                    provided, that the foregoing provision relating to LIBOR Periods is
                    subject to the following:

                
	 
                

        	 	
                                
                (a)            
                if any LIBOR Period would otherwise end on a day that is not a LIBOR Business Day,
                such LIBOR Period shall be extended to the next succeeding LIBOR Business Day
                unless the result of such extension would be to carry such LIBOR Period into
                another calendar month in which event such LIBOR Period shall end on the
                immediately preceding LIBOR Business Day;
	
                	 
	 	
                                
                (b)           
                any LIBOR Period that would otherwise extend beyond the Commitment Termination Date
                shall end 2 LIBOR Business Days prior to such date;
	
                	 
	 	
                                
                (c)            
                any LIBOR Period that begins on the last LIBOR Business Day of a calendar month (or
                on a day for which there is no numerically corresponding day in the calendar month
                at the end of such LIBOR Period) shall end on the last LIBOR Business Day of a
                calendar month;
	
                	 
	 	
                                
                (d)           
                Borrower shall select LIBOR Periods so as not to require a payment or prepayment of
                any LIBOR Loan during a LIBOR Period for such Loan; and
	
                	 
	 	
                                
                (e)            
                Borrower shall select LIBOR Periods so that there shall be no more than 5 separate
                LIBOR Loans in existence at any one time.
	
                	 

        	
                                                
                “LIBOR Rate”
                means for each LIBOR Period, a rate of interest determined by Agent equal
                to:
	
                	 

        	 	
                                
                (a)            
                the offered rate for deposits in United States Dollars for the applicable LIBOR
                Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time), on the
                second full LIBOR Business Day next preceding the first day of such LIBOR Period
                (unless such date is not a Business Day, in which event the next succeeding
                Business Day will be used); divided by
	
                	 
	 	
                                
                (b)           a
                number equal to 1.0 minus the aggregate (but without duplication) of the
                rates (expressed as a decimal fraction) of reserve requirements in effect on the
                day that is 2 LIBOR Business Days prior to the beginning of such LIBOR Period
                (including basic, supplemental, marginal and emergency reserves under any
                regulations of the Federal Reserve Board or other Governmental Authority having
                jurisdiction with respect thereto, as now and from time to time in effect) for
                Eurocurrency funding (currently referred to as

        	
                    

                    
                    A-16

                    

                

        

        

        	
                
	 
                

        	 	
                “Eurocurrency
                Liabilities” in Regulation D of the Federal Reserve Board that are required
                to be maintained by a member bank of the Federal Reserve System.
	
                	 
	 	
                                
                If such interest rates shall
                cease to be available from Telerate News Service, the LIBOR Rate shall be
                determined from such financial reporting service or other information as shall be
                mutually acceptable to Agent and Borrower.
	
                	 

        	
                                                
                “License”
                means any Copyright License, Patent License, Trademark License or other license of
                rights or interests now held or hereafter acquired by any Credit Party.

        	 
                
	
                    
                                                    
                    “Lien”
                    means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
                    arrangement, lien, charge, claim, security interest, easement or encumbrance,
                    or preference, priority or other security agreement or preferential arrangement
                    of any kind or nature whatsoever (including any lease or title retention
                    agreement, any financing lease having substantially the same economic effect as
                    any of the foregoing, and the filing of, or agreement to give, any financing
                    statement perfecting a security interest under the Code or comparable law of
                    any jurisdiction).

                
	 
                

        	
                                                
                    “Litigation” has the meaning ascribed to it in Section 3.13.
                “Loan Account” has the meaning ascribed to it in Section
                1.12.

        	 
                
	
                    
                                                    
                    “Loan
                    Documents” means the Agreement, the Intercreditor Agreement, the
                    Notes, the Collateral Documents, the Master Standby Agreement and all other
                    agreements, instruments, documents and certificates identified in the Closing
                    Checklist executed and delivered to, or in favor of, Agent or any Lenders and
                    including all other pledges, powers of attorney, consents, assignments,
                    contracts, notices, and all other written matter whether heretofore, now or
                    hereafter executed by or on behalf of any Credit Party, or any employee of any
                    Credit Party, and delivered to Agent or any Lender in connection with the
                    Agreement or the transactions contemplated thereby. Any reference in the
                    Agreement or any other Loan Document to a Loan Document shall include all
                    appendices, exhibits or schedules thereto, and all amendments, restatements,
                    supplements or other modifications thereto, and shall refer to the Agreement or
                    such Loan Document as the same may be in effect at any and all times such
                    reference becomes operative.

                
	 
                

        	
                    
                                                    “
                    Loans” means the Revolving Loan and the Swing Line
                    Loan.

                    
                                                    “
                    Lock Boxes” has the meaning ascribed to it in Annex
                    C.

                    
                                                    “
                    Margin Stock” has the meaning ascribed to it in Section
                    3.10.

                
	
                	 

        	
                                               
                “Master Standby
                Agreement” means the Master Agreement for Standby Letters of Credit dated
                as of the Original Closing Date between Borrower, as Applicant, and GE Capital, as
                Issuer.

        	 
                
	
                    
                                                   
                    “Material Adverse
                    Effect” means a material adverse effect on (a) the business, assets,
                    operations, prospects or financial or other condition of the Credit Parties
                    considered as a whole, (b) Borrower’s ability to pay any of the Loans or
                    any of the other Obligations in accordance with the terms of the Agreement, (c)
                    the Collateral or Agent’s Liens, on behalf of

                

        	
                    

                    
                    A-17

                    

                

        

        

        	
                itself and Lenders, on the
                Collateral or the priority of such Liens, or (d) Agent’s or any
                Lender’s rights and remedies under the Agreement and the other Loan
                Documents. Without limiting the generality of the foregoing, any event or
                occurrence adverse to one or more Credit Parties which results or could reasonably
                be expected to result in costs and/or liabilities or loss of revenues,
                individually, or in the aggregate, to any Credit Party in any 30-day period in
                excess of $3,000,000 as of any date of determination or 10% of the lesser of the
                Maximum Amount or the Borrowing Base at any date of determination shall constitute
                a Material Adverse Effect.
	
                	 
	
                                                
                “Maximum
                Amount” means, as of any date of determination, an amount equal to the
                Revolving Loan Commitment of all Lenders as of that date.
	
                	 

        	
                                                
                 
                “Monroe
                Capital” means Monroe Capital Management Advisors LLC.
	
                	 

        	
                                                
                “Montvale
                Lease” means the lease agreement by Butler NJ of the Montvale Property to
                Borrower and the other Credit Parties from time to time in effect.
	
                	 
	
                                                
                “Montvale
                Property” means the Real Estate owned by Butler NJ at 110 Summit Avenue,
                Montvale, New Jersey.

        	 
                
	
                    
                                                    
                    “Montvale Property
                    Mortgage” means the mortgage on the Montvale Property, evidenced by
                    certain Promissory Note and Mortgage and Security Agreement dated September 30,
                    2002, and the related documents by and between Butler NJ and Park National Bank
                    (as successor in interest to GMAC Commercial Mortgage Corp.), and any successor
                    to Park National Bank.

                
	 
                

        	
                                                
                “Mortgages”
                means each of the mortgages, deeds of trust, leasehold mortgages, leasehold deeds
                of trust, collateral assignments of leases or other real estate security documents
                delivered by any Credit Party to Agent on behalf of itself and Lenders with respect
                to any Real Estate acquired after the Closing Date (and expressly including the
                Montvale Property Mortgage), all in form and substance reasonably satisfactory to
                Agent.
	
                	 
	
                                                
                “Multiemployer
                Plan” means a “multiemployer plan” as defined in Section
                4001(a)(3) of ERISA, and to which any Credit Party or ERISA Affiliate is making, is
                obligated to make or has made or been obligated to make, contributions on behalf of
                participants who are or were employed by any of them.
	
                	 
	
                                                
                “Net Worth”
                means, with respect to any Person as of any date of determination, the book value
                of the assets of such Person, minus the sum of (a) reserves applicable
                thereto, and (b) all of such Person’s liabilities on a consolidated basis
                (including accrued and deferred income taxes), all as determined in accordance with
                GAAP.
	
                	 

        	
                    
                                                    
                    “Non-Funding
                    Lender” has the meaning ascribed to it in Section
                    9.9(a)(ii).

                    
                                                    
                    “Notes”
                    means, collectively, the Revolving Notes and the Swing Line Note.

                    
                                                    
                    ”Notice of
                    Conversion/Continuation” has the meaning ascribed to it in Section
                    1.5.(e).

                

        	
                    

                    
                    A-18

                    

                

        

        

        	
                                                
                “Notice of Revolving
                Credit Advance” has the meaning ascribed to it in Section 1.1
                (a). 
	
                	 

        	
                                                
                “Obligations”
                means all loans, advances, debts, liabilities and obligations, for the performance
                of covenants, tasks or duties or for payment of monetary amounts (whether or not
                such performance is then required or contingent, or such amounts are liquidated or
                determinable) owing by any Credit Party to Agent or any Lender, and all covenants
                and duties regarding such amounts, of any kind or nature, present or future,
                whether or not evidenced by any note, agreement or other instrument, arising under
                the Agreement or any of the other Loan Documents. This term includes all principal,
                interest (including all interest that accrues after the commencement of any case or
                proceeding by or against any Credit Party in bankruptcy, whether or not allowed in
                such case or proceeding), Fees, Charges, expenses, attorneys’ fees and any
                other sum chargeable to any Credit Party under the Agreement or any of the other
                Loan Documents.
	
                	 
	
                                                
                “Omnibus Amendment and
                Confirmation of Collateral Document Agreement” means that certain Omnibus
                Amendment and Confirmation of Collateral Document Agreement, dated the Original
                Closing Date, entered into by and among Agent, on behalf of itself and Lenders, and
                each applicable Credit Party that is a signatory thereto.
	
                	 

        	
                    
                                                    
                    “Original Closing
                    Date” means September 28, 2001.

                    
                                                    
                    “Overadvance” has the meaning ascribed to it in Section
                    1.1(a)(iii).

                
	
                	 

        	
                                                
                “Patent
                License” means rights under any written agreement now owned or hereafter
                acquired by any Credit Party granting any right with respect to any invention on
                which a Patent is in existence.
	
                	 

        	
                                                
                “Patents”
                means all of the following in which any Credit Party now holds or hereafter
                acquires any interest: (a) all letters patent of the United States or any other
                country, all registrations and recordings thereof, and all applications for letters
                patent of the United States or of any other country, including registrations,
                recordings and applications in the United States Patent and Trademark Office or in
                any similar office or agency of the United States, any State or any other country,
                and (b) all reissues, continuations, continuations-in-part or extensions
                thereof.
	
                	 

        	
                    
                                                    
                    “Patriot
                    Act” has the meaning ascribed to it in Section
                    3.26(a).

                    
                                                    
                    “PBGC” means the Pension Benefit Guaranty Corporation.

                    
                                                    
                     “Pension Plan” means a Plan described in Section 3(2) of
                    ERISA.

                

        	 
                
	
                    
                                                    
                    “Permitted
                    Covenant” means (i) any periodic reporting covenant, (ii) any
                    covenant restricting payments by Holdings with respect to any securities of
                    Holdings which are junior to the Permitted Preferred Stock, (iii) any covenant
                    the default of which can only result in an increase in the amount of any
                    redemption price, repayment amount, dividend rate or interest rate and (iv) any
                    covenant providing board observance rights with respect to Holdings’
                    board of directors.

                

        	
                    

                    
                    A-19

                    

                

        

        

        	
                    
                                                    
                    “Permitted
                    Encumbrances” means the following encumbrances: (a) Liens for taxes
                    or assessments or other governmental Charges not yet due and payable or which
                    are being contested in accordance with Section 5.2(b); (b) pledges or
                    deposits of money securing statutory obligations under workmen’s
                    compensation (including deposits made with workers’ compensation
                    insurance providers), unemployment insurance, social security or public
                    liability laws or similar legislation (excluding Liens under ERISA); (c)
                    pledges or deposits of money securing bids, tenders, contracts (other than
                    contracts for the payment of money) or leases to which any Credit Party is a
                    party as lessee made in the ordinary course of business; (d) inchoate and
                    unperfected workers’, mechanics’ or similar liens arising in the
                    ordinary course of business, so long as such Liens attach only to Equipment,
                    Fixtures and/or Real Estate; (e) carriers’, warehousemen’s,
                    suppliers’ or other similar possessory liens arising in the ordinary
                    course of business and securing liabilities in an outstanding aggregate amount
                    not in excess of $250,000 at any time, so long as such Liens attach only to
                    Inventory; (f) deposits securing, or in lieu of, surety, appeal or customs
                    bonds in proceedings to which any Credit Party is a party; (g) any attachment
                    or judgment lien not constituting an Event of Default under Section
                    8.1(j); (h) zoning restrictions, easements, licenses, or other restrictions
                    on the use of any Real Estate or other minor irregularities in title (including
                    leasehold title) thereto, so long as the same do not materially impair the use,
                    value, or marketability of such Real Estate; (i) presently existing or
                    hereafter created Liens in favor of Agent, on behalf of Lenders; (j) Liens
                    expressly permitted under clauses (b), (c) and (d) of Section 6.7
                    of the Agreement; and (k) the Montvale Property Mortgage.

                    
                                                    
                    “Permitted
                    Preferred Stock” means any preferred stock of Holdings (or any equity
                    security of Holdings that is convertible or exchangeable into any preferred
                    stock of Holdings), so long as the terms of any such preferred stock or equity
                    security of Holdings (i) do not provide any collateral security, (ii) do not
                    provide any guaranty or other support by any Subsidiaries of Holdings, (iii) do
                    not contain any put, redemption, repayment, sinking fund or other similar
                    provision, (iv) do not require the cash payment of dividends or interest, (v)
                    do not contain any covenants other than any Permitted Covenant, (vi) do not
                    grant the holders thereof any voting rights except for (x) voting rights
                    required to be granted to such holders under applicable law, (y) limited
                    customary voting rights on fundamental matters such as mergers, consolidations,
                    sales of substantial assets, or liquidations involving Holdings and (z) other
                    voting rights to the extent not greater than or superior to those allocated to
                    Holdings common Stock on a per share basis, and (vii) to the extent any such
                    preferred stock or equity security does not otherwise comply with clauses
                    (i) through (vi) hereof, such preferred stock or equity security is
                    otherwise reasonably satisfactory to Agent.

                    
                                                    
                    “Person”
                    means any individual, sole proprietorship, partnership, joint venture, trust,
                    unincorporated organization, association, corporation, limited liability
                    company, institution, public benefit corporation, other entity or government
                    (whether federal, state, county, city, municipal, local, foreign, or otherwise,
                    including any instrumentality, division, agency, body or department
                    thereof).

                    
                                                    
                    “Plan”
                    means, at any time, an “employee benefit plan,” as defined in
                    Section 3(3) of ERISA, that any Credit Party or ERISA Affiliate maintains,
                    contributes to or has an obligation to contribute to on behalf of participants
                    who are or were employed by any Credit Party.

                

        	
                    

                    
                    A-20

                    

                

        

        

        	
                    
                                                    
                    “Pledge
                    Agreements” means the Borrower Pledge Agreement, the Holdings Pledge
                    Agreement, the Subsidiary Pledge Agreement and any other pledge agreement
                    entered into after the Original Closing Date by any Credit Party (as required
                    by the Agreement or any other Loan Document).

                    
                                                    
                    “Preferred Stock
                    Offering” means Borrower’s issuance on or about December 15,
                    2006 of up to 8,500 shares of its series A preferred stock and warrants
                    exercisable to purchase an aggregate of up to 2,125,000 shares of common Stock
                    for an aggregate cash consideration of up to $8,500,000.

                

        	 
                
	
                    
                                                    
        `           “Proceeds” means “proceeds,” as such term is defined in
                    the Code, including (a)   any and all proceeds of any insurance,
                    indemnity, warranty or guaranty payable to any Credit Party from time to time
                    with respect to any of the Collateral, (b) any and all payments (in any form
                    whatsoever) made or due and payable to any Credit Party from time to time in
                    connection with any requisition, confiscation, condemnation, seizure or
                    forfeiture of all or any part of the Collateral by any Governmental Authority
                    (or any Person acting under color of governmental authority), (c) any claim of
                    any Credit Party against third parties (i) for past, present or future
                    infringement of any Patent or Patent License, or (ii) for past, present or
                    future infringement or dilution of any Copyright, Copyright License, Trademark
                    or Trademark License, or for injury to the goodwill associated with any
                    Trademark or Trademark License, (d) any recoveries by any Credit Party against
                    third parties with respect to any litigation or dispute concerning any of the
                    Collateral, (e) dividends, interest, distributions and Instruments with respect
                    to Investment Property and pledged Stock, and (f) any and all other amounts
                    from time to time paid or payable under or in connection with any of the
                    Collateral, upon disposition or otherwise.

                    
                                                    
                    “Pro
                    Forma” means the unaudited consolidated and consolidating balance
                    sheet of Borrower and its Subsidiaries as of June 30, 2007.

                    
                                                    
                    “Projections”
                    means Borrower’s forecasted consolidated and consolidating: (a) balance
                    sheets; (b) profit and loss statements; (c) cash flow statements; and (d)
                    capitalization statements, all prepared on a Subsidiary by Subsidiary or
                    division-by-division basis, if applicable, and otherwise consistent with the
                    historical Financial Statements of Borrower, together with appropriate
                    supporting details and a statement of underlying assumptions.

                
	 
                

        	
                                                
                “Pro Rata
                Share” means with respect to all matters relating to any Lender (a) with
                respect to the Revolving Loan, the percentage obtained by dividing (i) the
                Revolving Loan Commitment of that Lender by (ii) the aggregate Revolving Loan
                Commitments of all Lenders, (b)  with respect to all Loans, the
                percentage obtained by dividing (i) the aggregate Commitments of that Lender by
                (ii) the aggregate Commitments of all Lenders, and (c) with respect to all Loans on
                and after the Commitment Termination Date, the percentage obtained by dividing (i)
                the aggregate outstanding principal balance of the Loans held by that Lender, by
                (ii) the outstanding principal balance of the Loans held by all
                Lenders.

        	 	 
	
                                                
                “Qualified
                Plan” means a Pension Plan that is intended to be tax-qualified under
                Section 401 (a) of the IRC.

        	
                    

                    
                    A-21

                    

                

        

        

        	
                    
                                                    
                    “Qualified
                    Assignee” means (a) any Lender, any Affiliate of any Lender and, with
                    respect to any Lender that is an investment fund that invests in commercial
                    loans, any other investment fund that invests in commercial loans and that is
                    managed or advised by the same investment advisor as such Lender or by an
                    Affiliate of such investment advisor, and (b) any commercial bank, savings and
                    loan association or savings bank or any other entity which is an
                    “accredited investor” (as defined in Regulation D under the
                    Securities Act) which extends credit or buys loans as one of its businesses,
                    including insurance companies, mutual funds, lease financing companies and
                    commercial finance companies, in each case, which has a rating of BBB or higher
                    from S&P and a rating of Baa2 or higher from Moody’s at the date that
                    it becomes a Lender and which, through its applicable lending office, is
                    capable of lending to Borrower without the imposition of any withholding or
                    similar taxes; provided that no Person determined by Agent to be acting in the
                    capacity of a vulture fund or distressed debt purchaser shall be a Qualified
                    Assignee and no Person or Affiliate of such Person (other than a Person that is
                    already a Lender) holding Subordinated Debt or Stock issued by any Credit Party
                    shall be a Qualified Assignee.

                
	 
                

        	
                    
                                                    
                    “Real
                    Estate” has the meaning ascribed to it in Section
                    3.6.

                    
                                                    
                    “Refunded Swing
                    Line Loan” has the meaning ascribed to it in Section
                    1.1(c)(iii)

                
	 	 

        	
                    
                                                    
                    “Related
                    Transactions” means the initial borrowing under the Revolving Loan on
                    the Original Closing Date, the payment of all fees, costs and expenses
                    associated with the foregoing and the execution and delivery of all of the
                    Related Transactions Documents.

                    
                                                    
                    “Related
                    Transactions Documents” means the Loan Documents, and all other
                    agreements or instruments executed in connection with the Related
                    Transactions.

                

        	 
                
	
                    
                                                    
                    “Release”
                    means any release, threatened release, spill, emission, leaking, pumping,
                    pouring, emitting, emptying, escape, injection, deposit, disposal, discharge,
                    dispersal, dumping, leaching or migration of Hazardous Material in the indoor
                    or outdoor environment, including the movement of Hazardous Material through or
                    in the air, soil, surface water, ground water or property.

                
	 
                

        	
                                                
                “Requisite
                Lenders” means Lenders having (a) more than 66 2/3% of the Commitments of
                all Lenders, or (b) if the Commitments have been terminated, more than 66 2/3% of
                the aggregate outstanding amount of the Loans.

        	 
                
	
                    
                                                    
                    “Requisite
                    Revolving Lenders” means Lenders having (a) more than 66 2/3% of the
                    Revolving Loan Commitments of all Lenders, or (b) if the Revolving Loan
                    Commitments have been terminated, more than 66 2/3% of the aggregate
                    outstanding amount of the Revolving Loan.

                    
                                                    
                    “Reserves”
                    means, with respect to the Borrowing Base of Borrower (a) a reserve for the
                    face amount of all Letters of Credit issued hereunder, (b) reserves established
                    pursuant to Section 5.4(c), and (c) such other reserves against Eligible
                    Accounts, Eligible Pending Accounts Receivable and Fixed Contract Accounts
                    Receivable or Borrowing Availability of Borrower that Agent may, in its
                    reasonable credit judgment, establish from time to time. Without limiting the
                    generality of the foregoing, Reserves established to ensure the payment of
                    accrued Interest

                

        	
                    

                    
                    A-22

                    

                

        

        

        	
                    Expenses or Indebtedness
                    shall be deemed to be a reasonable exercise of Agent’s credit
                    judgment.

                
	 
                

        	
                                                
                “Restated Financial
                Statements” has the meaning ascribed to it in subsection (q) of
                Annex E.
	
                	 

        	
                                                
                “Restricted
                Payment” means, with respect to any Credit Party (a) the declaration or
                payment of any dividend or the incurrence of any liability to make any other
                payment or distribution of cash or other property or assets in respect of Stock;
                (b) any payment on account of the purchase, redemption, defeasance, sinking fund or
                other retirement of such Credit Party’s Stock or any other payment or
                distribution made in respect thereof, either directly or indirectly; (c) any
                payment or prepayment of principal of, premium, if any, or interest, fees or other
                charges on or with respect to, and any redemption, purchase, retirement,
                defeasance, sinking fund or similar payment and any claim for rescission with
                respect to, any Subordinated Debt; (d) any payment made to redeem, purchase,
                repurchase or retire, or to obtain the surrender of, any outstanding warrants,
                options or other rights to acquire Stock of such Credit Party now or hereafter
                outstanding; (e) any payment of a claim for the rescission of the purchase or sale
                of, or for material damages arising from the purchase or sale of, any shares of
                such Credit Party’s Stock or of a claim for reimbursement, indemnification or
                contribution arising out of or related to any such claim for damages or rescission;
                (f) any payment, loan, contribution, or other transfer of funds or other property
                to any Stockholder of such Credit Party other than payment of compensation in the
                ordinary course of business to Stockholders who are employees of such Credit Party;
                and (g) any payment of management fees (or other fees of a similar nature) by such
                Credit Party to any Stockholder of such Credit Party or its Affiliates.
	
                	 

        	
                                                
                “Retiree Welfare
                Plan” means, at any time, a Welfare Plan that provides for continuing
                coverage or benefits for any participant or any beneficiary of a participant after
                such participant’s termination of employment, other than continuation
                coverage provided pursuant to Section 4980B of the IRC and at the sole expense of
                the participant or the beneficiary of the participant.
	
                	 

        	
                                                
                “Revolving Credit
                Advance” has the meaning ascribed to it in Section
                1.1(a)(i).
	
                	 

        	
                                                
                “Revolving
                Lenders” means, as of any date of determination, Lenders having a
                Revolving Loan Commitment.
	
                	 
	
                                                
                “Revolving
                Loan” means, at any time, the sum of (i) the aggregate amount of
                Revolving Credit Advances outstanding to Borrower plus (ii) the aggregate
                Letter of Credit Obligations incurred on behalf of Borrower. Unless the context
                otherwise requires, references to the outstanding principal balance of the
                Revolving Loan shall include the outstanding balance of Letter of Credit
                Obligations.
	
                	 
	
                                                
                “Revolving Loan
                Commitment” means (a) as to any Revolving Lender, the aggregate
                commitment of such Revolving Lender to make Revolving Credit Advances or incur
                Letter of Credit Obligations as set forth on Annex J to the Agreement or in
                the most recent Assignment Agreement executed by such Revolving Lender and (b) as
                to all Revolving Lenders, the aggregate commitment of all Revolving Lenders to make
                Revolving Credit Advances or

        	
                    

                    
                    A-23

                    

                

        

        

        	
                    incur Letter of Credit
                    Obligations, which aggregate commitment shall be Forty Five Million Dollars
                    ($45,000,000.00) on the Closing Date, as such amount may be adjusted, if at
                    all, from time to time in accordance with the Agreement.

                    
                                                    “
                    Revolving Note” has the meaning ascribed to it in Section
                    1.1(a)(ii).

                
	 
                

        	
                                                
                “Second Lien
                Agent” means Monroe Capital Management Advisors LLC, as agent under the
                Second Lien Credit Agreement, or any successor thereto.

        	 
	
                                                
                “Second Lien Credit Agreement” means that certain Second Lien Credit
                Agreement, dated as of August 29, 2007, by and among Borrower, Monroe Capital, and
                the other lenders party thereto from time to time, as amended, restated,
                supplemented, refinanced or replaced from time to time.

        	 
                
	
                    
                                                    
                    “Second Lien
                    Indebtedness” means Indebtedness incurred by Borrower pursuant to the
                    Second Lien Credit Agreement and secured by any or all assets that constitute
                    Collateral, which security has the priority set forth in the Intercreditor
                    Agreement.

                    
                                                    
                    “Second Lien Loan
                    Documents” means the Second Lien Credit Agreement and all other
                    “Loan Documents” under and as defined in the Second Lien Credit
                    Agreement, as in effect on the Closing Date, and as the same may be amended,
                    restated, supplemented, or replaced from time to time in accordance with the
                    terms of the Intercreditor Agreement.

                
	 
                

        	
                                                
                “Security
                Agreements” means (i) the Borrower Security Agreement; (ii) the
                Subsidiary Security Agreement; (iii) the Second Amended and Restated Security
                Agreement dated the Original Closing Date entered into by and among the Borrower,
                as purchaser and each Credit Party that is a signatory thereto; and (iv) the
                Holdings Security Agreement.

        	 
                
	
                    
                                                    
                    “Specified
                    Employees” means Edward M. Kopko, Thomas F. Comeau, Hugh G. McBreen,
                    Frank H. Murray, Louis F. Petrossi, Wesley B. Tyler, Ronald Uyermatsu, Walter
                    O. LeCroy, James Beckley, Sr., George Geogiou, Sr., Robert O’Flynn, Chris
                    Tyrell and Mark Koscinski.

                    
                                                    
                    “Solvent”
                    means, with respect to any Person on a particular date, that on such date (a)
                    the fair value of the property of such Person is greater than the total amount
                    of liabilities, including contingent liabilities, of such Person; (b) the
                    present fair salable value of the assets of such Person is not less than the
                    amount that will be required to pay the probable liability of such Person on
                    its debts as they become absolute and matured; (c) such Person does not intend
                    to, and does not believe that it will, incur debts or liabilities beyond such
                    Person’s ability to pay as such debts and liabilities mature; and (d)
                    such Person is not engaged in a business or transaction, and is not about to
                    engage in a business or transaction, for which such Person’s property
                    would constitute an unreasonably small capital. The amount of contingent
                    liabilities (such as litigation, guaranties and pension plan liabilities) at
                    any time shall be computed as the amount that, in light of all the facts and
                    circumstances existing at the time, represents the amount that can be
                    reasonably be expected to become an actual or matured liability.

                
	 
                

        	
                                                
                “Stock”
                means all shares, options, warrants, general or limited partnership interests,
                membership interests or other equivalents (regardless of how designated) of or in
                a

        	
                    

                    
                    A-24

                    

                

        

        

        	corporation,
                partnership, limited liability company or equivalent entity whether voting or
                nonvoting, including common stock, preferred stock or any other “equity
                security” (as such term is defined in Rule 3a11-1 of the General Rules and
                Regulations promulgated by the Securities and Exchange Commission under the
                Securities Exchange Act of 1934).

        	 
                
	
                    
                                                    
                    “Stockholder”
                    means, with respect to any Person, each holder of Stock of such
                    Person.

                    
                                                    
                    “Subordinated
                    Debt” means any Indebtedness of any Credit Party subordinated to the
                    Obligations in a manner and form satisfactory to Agent and Lenders in their
                    sole discretion, as to right and time of payment and as to any other rights and
                    remedies thereunder.

                    
                                                    
                    “Subsidiary”
                    means, with respect to any Person, (a) any corporation of which an aggregate of
                    more than 50% of the outstanding Stock having ordinary voting power to elect a
                    maj ority of the board of directors of such corporation (irrespective of
                    whether, at the time, Stock of any other class or classes of such corporation
                    shall have or might have voting power by reason of the happening of any
                    contingency) is at the time, directly or indirectly, owned legally or
                    beneficially by such Person or one or more Subsidiaries of such Person, or with
                    respect to which any such Person has the right to vote or designate the vote of
                    50% or more of such Stock whether by proxy, agreement, operation of law or
                    otherwise, and (b) any partnership or limited liability company in which such
                    Person and/or one or more Subsidiaries of such Person shall have an interest
                    (whether in the form of voting or participation in profits or capital
                    contribution) of more than 50% or of which any such Person is a general partner
                    or may exercise the powers of a general partner. Unless the context otherwise
                    requires, each reference to a Subsidiary shall be a reference to a Subsidiary
                    of the Borrower.

                
	 
                

        	
                                                
                “Subsidiary
                Guaranty” means the Amended and Restated Subsidiaries Guaranty, dated the
                Original Closing Date, executed by all Subsidiaries of Borrower (other than Butler
                India) in favor of Agent, on behalf of itself and Lenders.

        	 
                
	
                    
                                                    
                    “Subsidiary Pledge
                    Agreement” means the Pledge Agreement, dated the Original Closing
                    Date, executed by the applicable Credit Parties in favor of Agent, on behalf of
                    itself and Lenders, pledging all stock of their Subsidiaries, if any, and all
                    Intercompany Notes and other instruments owing to or held by it.

                    
                                                    
                    “Subsidiary
                    Security Agreement” means the Amended and Restated Subsidiaries
                    Security Agreement, dated the Original Closing Date, entered into by and among
                    Agent, on behalf of itself and Lenders, and each Credit Party that is a
                    signatory thereto.

                    
                                                    
                    “Supermajority
                    Revolving Lenders” means Lenders having (a) 80% or more of the
                    Revolving Loan Commitments of all Lenders, or (b) if the Revolving Loan
                    Commitments have been terminated, 80% or more of the aggregate outstanding
                    amount of the Revolving Loan (with the Swing Line Loan being attributed to the
                    Lender making such Loan) and Letter of Credit Obligations.

                
	 
                

        	
                                                
                 
                “Supporting
                Obligations” has the meaning ascribed thereto in the Code.
	
                	 
	
                                                
                 
                “Swing Line
                Advance” has the meaning ascribed to it in Section
                1.1(c)(i).

        	
                    

                    
                    A-25

                    

                

        

        

        	
                                                
                “Swing Line
                Availability” has the meaning ascribed to it in Section
                1.1(c)(i).

        	 
                
	
                    
                                                    
                    “Swing Line
                    Commitment” means, as to the Swing Line Lender, the commitment of the
                    Swing Line Lender to make Swing Line Advances as set forth on Annex J to
                    the Agreement, which commitment constitutes a subfacility of the Revolving Loan
                    Commitment of the Swing Line Lender.

                
	 
                

        	
                                                
                “Swing Line
                Lender” means GE Capital.
	
                	 

        	
                                                
                “Swing Line
                Loan” means at any time, the aggregate amount of Swing Line Advances
                outstanding to Borrower.
	
                	 

        	
                                                
                “Swing Line
                Note” has the meaning ascribed to it in Section
                1.1(c)(ii).

        	 
                
	
                    
                                                    
                    “Tangible Net
                    Worth” means, with respect to any Person at any date, the Net Worth
                    of such Person at such date (excluding the impact of FASB 141, 142 and 144),
                    excluding, however: (i) from the determination of the total
                    assets at such date, (a) all capitalized organizational expenses, capitalized
                    research and development expenses, trademarks, trade names, copyrights,
                    patents, patent applications, licenses and rights in any thereof, and other
                    intangible items (excluding goodwill), (b) all unamortized debt discount and
                    expense, (c) treasury Stock, and (d) any write-up in the book value of any
                    asset resulting from a revaluation thereof, and (ii) from the determination of
                    the total liabilities at such date, all liabilities in connection with the
                    issuance of a subordinated promissory note in favor of Edward M. Kopko in the
                    amount of $6,300,000.

                
	 
                

        	
                                                
                “Taxes”
                means taxes, levies, imposts, deductions, Charges or withholdings, and all
                liabilities with respect thereto, excluding taxes imposed on or measured by the net
                income of Agent or a Lender by the jurisdictions under the laws of which Agent and
                Lenders are organized or conduct business or any political subdivision
                thereof.

        	 
                
	
                    
                                                    
                    “Termination
                    Date” means the date on which (a) the Loans have been indefeasibly
                    repaid in full, (b) all other Obligations under the Agreement and the other
                    Loan Documents have been completely discharged, (c) all Letter of Credit
                    Obligations have been cash collateralized, cancelled or backed by standby
                    letters of credit in accordance with Annex B, and (d) Borrower shall not
                    have any further right to borrow any monies under the Agreement.

                
	 
                

        	
                                                
                “Title IV
                Plan” means a Pension Plan (other than a Multiemployer Plan), that is
                covered by Title IV of ERISA, and that any Credit Party or ERISA Affiliate
                maintains, contributes to or has an obligation to contribute to on behalf of
                participants who are or were employed by any of them.
	
                	 
	
                                                
                “Trademark
                License” means rights under any written agreement now owned or hereafter
                acquired by any Credit Party granting any right to use any Trademark.

        	 
                
	
                    
                                                    
                    “Trademarks”
                    means all of the following now owned or hereafter adopted or acquired by any
                    Credit Party: (a) all trademarks, trade names, corporate names, business names,
                    trade styles, service marks, logos, other source or business identifiers,
                    prints and labels on which any of the foregoing have appeared or appear,
                    designs and general intangibles of like nature

                

        	
                    

                    
                    A-26

                    

                

        

        

        	
                    (whether
                    registered or unregistered), all registrations and recordings thereof, and all
                    applications in connection therewith, including registrations, recordings and
                    applications in the United States Patent and Trademark Office or in any similar
                    office or agency of the United States, any state or territory thereof, or any
                    other country or any political subdivision thereof; (b) all reissues,
                    extensions or renewals thereof; and (c) all goodwill associated with or
                    symbolized by any of the foregoing.

                    
                                                    
                    “Unfunded Pension
                    Liability” means, at any time, the aggregate amount, if any, of the
                    sum of (a) the amount by which the present value of all accrued benefits under
                    each Title IV Plan exceeds the fair market value of all assets of such Title IV
                    Plan allocable to such benefits in accordance with Title IV of ERISA, all
                    determined as of the most recent valuation date for each such Title IV Plan
                    using the actuarial assumptions for funding purposes in effect under such Title
                    IV Plan, and (b) for a period of 5 years following a transaction which might
                    reasonably be expected to be covered by Section 4069 of ERISA, the liabilities
                    (whether or not accrued) that could be avoided by any Credit Part y or any
                    ERISA Affiliate as a result of such transaction.

                
	 
                

        	
                                                
                “Welfare
                Plan” means a Plan described in Section 3(l) of ERISA.

        	 
                
	
                    
                                                    
                    Rules of construction with
                    respect to accounting terms used in the Agreement or the other Loan Documents
                    shall be as set forth in Annex G. All other undefined terms contained in
                    any of the Loan Documents shall, unless the context indicates otherwise, have
                    the meanings provided for by the Code as in effect in the State of New York to
                    the extent the same are used or defined therein. Unless otherwise specified,
                    references in the Agreement or any of the Appendices to a Section, subsection
                    or clause refer to such Section, subsection or clause as contained in the
                    Agreement. The words “herein,” “hereof” and
                    “hereunder” and other words of similar import refer to th e
                    Agreement as a whole, including all Annexes, Exhibits and Schedules, as the
                    same may from time to time be amended, restated, modified or supplemented, and
                    not to any particular section, subsection or clause contained in the Agreement
                    or any such Annex, Exhibit or Schedule.

                    
                                                    
                    Wherever from the context
                    it appears appropriate, each term stated in either the singular or plural shall
                    include the singular and the plural, and pronouns stated in the masculine,
                    feminine or neuter gender shall include the masculine, feminine and neuter
                    genders. The words “including”, “includes” and
                    “include” shall be deemed to be followed by the words
                    “without limitation”; the word “or” is not exclusive;
                    references to Persons include their respective successors and assigns (to the
                    extent and only to the extent permitted by the Loan Documents) or, in the case
                    of governmental Persons, Persons succeeding to the relevant functions of such
                    Persons; and all references to statutes and related regulations shall include
                    any amendments of the same and any successor statutes and regulations. Whenever
                    any provision in any Loan Document refers to the knowledge (or an analogous
                    phrase) of any Credit Party, such words are intended to signify that such
                    Credit Party has actual knowledge or awareness of a particular fact or
                    circumstance or that such Credit Party, if it had exercised reasonable
                    diligence, would have known or been aware of such fact or
                    circumstance.

                

        	
                    

                    
                    A-27

                    

                

        

        

        	
                    ANNEX
                    B (Section 1.2)

                    to 

                    CREDIT AGREEMENT

                    
                    LETTERS OF
                    CREDIT

                    
                                                    
                    (a)            
                    Issuance. Subject to the terms and conditions of the Agreement, Agent
                    and Revolving Lenders agree to incur, from time to time prior to the Commitment
                    Termination Date, upon the request of Borrower and for Borrower’s
                    account, Letter of Credit Obligations by causing Letters of Credit to be issued
                    by GE Capital or a Subsidiary thereof or a bank or other legally authorized
                    Person selected by or acceptable to Agent in its sole discretion (each, an
                    “L/C Issuer”) for Borrower’s account and guaranteed by
                    Agent; provided, that if the L /C Issuer is a Revolving Lender, then
                    such Letters of Credit sh all not be guaranteed by Agent but rather each
                    Revolving Lender shall, subject to the terms and conditions hereinafter set
                    forth, purchase (or be deemed to have purchased) risk participations in all
                    such Letters of Credit issued with the written consent of Agent, as more fully
                    described in paragraph (b)(ii) below. The aggregate amount of all such Letter
                    of Credit Obligations shall not at any time exceed the least of (i) Nine
                    Million Dollars ($9,000,000.00) (the “L/C Sublimit”), and
                    (ii) the Maximum Amount less the aggregate outstanding principal balance of the
                    Revolving Credit Advances and the Swing Line Loan, and (iii) the Borrowing Base
                    less the aggregate outstanding principal balance of the Revolving Credit
                    Advances and the Swing Line Loan. No such Letter of Credit shall have an expiry
                    date that is more than one year following the date of issuance thereof, unless
                    otherwise determined by Agent in its sole discretion, and neither Agent nor
                    Revolving Lenders shall be under any obligation to incur Letter of Credit
                    Obligations in respect of, or purchase risk participations in, any Letter of
                    Credit having an expiry date that is later than the Commitment Termination
                    Date.

                    
                                                    
                    (b)            
                    (i)         Advances Automatic;
                    Participations. In the event that Agent or any Revolving Lender shall make
                    any payment on or pursuant to any Letter of Credit Obligation (including
                    without limitation any Letter of Credit Obligation relating to a Letter of
                    Credit issued pursuant to the Existing Credit Agreement), such payment shall
                    then be deemed automatically to constitute a Revolving Credit Advance under
                    Section 1.1 (a) of the Agreement regardless of whether a Default or
                    Event of Default has occurred and is continuing and notwithstanding
                    Borrower’s failure to satisfy the conditions precedent set forth in
                    Section 2, and each Revolving Lender shall be obligated to pay its Pro
                    Rata Share thereof in accordance with the Agreement. The failure of any
                    Revolving Lender to make available to Agent for Agent’s own account its
                    Pro Rata Share of any such Revolving Credit Advance or payment by Agent under
                    or in respect of a Letter of Credit shall not relieve any other Revolving
                    Lender of its obligation hereunder to make available to Agent its Pro Rata
                    Share thereof, but no Revolving Lender shall be responsible for the failure of
                    any other Revolving Lender to make available such other Revolving
                    Lender’s Pro Rata Share of any such payment.

                    
                                                                
                      
                    (ii)         If
                    it shall be illegal or unlawful for Borrower to incur Revolving Credit Advances
                    as contemplated by paragraph (b)(i) above because of an Event of Default
                    described in Sections 8.1(h) or (i) or otherwise or if it shall be
                    illegal or unlawful for any Revolving Lender to be deemed to have assumed a
                    ratable share of the reimbursement obligations owed to an L/C Issuer, or if the
                    L/C Issuer is a Revolving Lender, then (i) immediately and without further
                    action whatsoever, each Revolving Lender shall be deemed to

                

        	
                    

                    
                    B-1

                    

                

        

        

        	
                    have irrevocably and
                    unconditionally purchased from Agent (or such L/C Issuer, as the case may be)
                    an undivided interest and participation equal to such Revolving Lender’s
                    Pro Rata Share (based on the Revolving Loan Commitments) of the Letter of
                    Credit Obligations in respect of all Letters of Credit then outstanding and
                    (ii) thereafter, immediately upon issuance of any Letter of Credit, each
                    Revolving Lender shall be deemed to have irrevocably and unconditionally
                    purchased from Agent (or such L/C Issuer, as the case may be) an undivided
                    interest and participation in such Revolving Lender’s Pro Rata Share
                    (based on the Revolving Loan Commitments) of the Letter of Credit Obligations
                    with respect to such Letter of Credit on the date of such issuance. Each
                    Revolving Lender shall fund its participation in all payments or disbursements
                    made under the Letters of Credit in the same manner as provided in the
                    Agreement with respect to Revolving Cre dit Advances.

                    
                                                    
                    (c)       
                    Cash Collateral. (i) If Borrower is required to provide cash
                    collateral for any Letter of Credit Obligations pursuant to the Agreement prior
                    to the Commitment Termination Date, Borrower will pay to Agent for the ratable
                    benefit of itself and Revolving Lenders cash or cash equivalents acceptable to
                    Agent (“Cash Equivalents”) in an amount equal to 105% of the
                    maximum amount then available to be drawn under each applicable Letter of
                    Credit outstanding. Such funds or Cash Equivalents shall be held by Agent in a
                    cash collateral account (the “Cash Collateral Account”)
                    maintained at a bank or financial institution accepta ble to Agent. The Cash
                    Collateral Account shall be in the name of Borrower and shall be pledged to,
                    and subject to the control of, Agent, for the benefit of Agent and Lenders, in
                    a manner satisfactory to Agent. Borrower hereby pledges and grants to Agent, on
                    behalf of itself and Lenders, a security interest in all such funds and Cash
                    Equivalents held in the Cash Collateral Account from time to time and all
                    proceeds thereof, as security for the payment of all amounts due in respect of
                    the Letter of Credit Obligations and other Obligations, whether or not then
                    due. The Agreement, including this Annex B, shall constitute a security
                    agreement under applicable law.

                
	 
                

        	
                                                             
                (ii)         If
                any Letter of Credit Obligations, whether or not then due and payable, shall for
                any reason be outstanding on the Commitment Termination Date, Borrower shall either
                (A) provide cash collateral therefor in the manner described above, or (B) cause
                all such Letters of Credit and guaranties thereof, if any, to be canceled and
                returned, or (C) deliver a stand-by letter (or letters) of credit in guarantee of
                such Letter of Credit Obligations, which stand-by letter (or letters) of credit
                shall be of like tenor and duration (plus 30 additional days) as, and in an amou nt
                equal to 105% of the aggregate maximum amount then available to be drawn under, the
                Letters of Credit to which such outstanding Letter of Credit Obligations relate and
                shall be issued by a Person, and shall be subject to such terms and conditions, as
                are be satisfactory to Agent in its sole discretion.

        	 
                
	
                    
                                                               
                    (iii)         From
                    time to time after funds are deposited in the Cash Collateral Account by
                    Borrower, whether before or after the Commitment Termination Date, Agent may
                    apply such funds or Cash Equivalents then held in the Cash Collateral Account
                    to the payment of any amounts, and in such order as Agent may elect, as shall
                    be or shall become due and payable by Borrower to Agent and Lenders with
                    respect to such Letter of Credit Obligations of Borrower and, upon the
                    satisfaction in full of all Letter of Credit Obligations of Borrower, to any
                    other Obligations then due and payable.

                

        	
                    

                    
                    B-2

                    

                

        

        

        	
                    
                                                                
                    (iv)         Neither
                    Borrower nor any Person claiming on behalf of or through Borrower shall have
                    any right to withdraw any of the funds or Cash Equivalents held in the Cash
                    Collateral Account, except that upon the termination of all Letter of Credit
                    Obligations and the payment of all amounts payable by Borrower to Agent and
                    Lenders in respect thereof, any funds remaining in the Cash Collateral Account
                    shall be applied to other Obligations then due and owing and upon payment in
                    full of such Obligations, any remaining amount shall be paid to Borrower or as
                    otherwise required by law. Interes t earned on deposits in the Cash Collateral
                    Account shall be for the account of Agent.

                    
                                                    
                    (d)        
                    Fees and Expenses. Borrower agrees to pay to Agent for the benefit of
                    Revolving Lenders, as compensation to such Lenders for Letter of Credit
                    Obligations incurred hereunder, (i) all costs and expenses incurred by Agent or
                    any Lender on account of such Letter of Credit Obligations, and (ii) for each
                    month during which any Letter of Credit Obligation shall remain outstanding, a
                    fee (the “Letter of Credit Fee”) in an amount equal to one
                    and one quarter percent (1.25%) per annum (calculated on the basis of a 360-day
                    year and actual days elapsed) multiplied by the maximum amount available from
                    time to time to be drawn under the applica ble Letter of Credit. Such fee shall
                    be paid to Agent for the benefit of the Revolving Lenders in arrears, on the
                    first day of each month and on the Commitment Termination Date. In addition,
                    Borrower shall pay to any L/C Issuer, on demand, such fees (including all per
                    annum fees), charges and expenses of such L/C Issuer in respect of the
                    issuance, negotiation, acceptance, amendment, transfer and payment of such
                    Letter of Credit or otherwise payable pursuant to the application and related
                    documentation under which such Letter of Credit is issued.

                    
                                                    
                    (e)        
                    Request for Incurrence of Letter of Credit Obligations. Borrower shall
                    give Agent at least 2 Business Days’ prior written notice requesting the
                    incurrence of any Letter of Credit Obligation. The notice shall be accompanied
                    by the form of the Letter of Credit (which shall be acceptable to the L/C
                    Issuer) and a completed Application for Standby Letter of Credit in the form
                    Exhibit B-1 attached hereto. Notwithstanding anything contained herein to the
                    contrary, Letter of Credit applications by Borrower and approvals by Agent and
                    the L/C Issuer may be made and transmitted pursuant to electronic codes and
                    security measures mutually agreed up on and established by and among Borrower,
                    Agent and the L/C Issuer.

                    
                                                    
                    (f)        
                    Obligation Absolute. The obligation of Borrower to reimburse Agent and
                    Revolving Lenders for payments made with respect to any Letter of Credit
                    Obligation shall be absolute, unconditional and irrevocable, without necessity
                    of presentment, demand, protest or other formalities, and the obligations of
                    each Revolving Lender to make payments to Agent with respect to Letters of
                    Credit shall be unconditional and irrevocable. Such obligations of Borrower and
                    Revolving Lenders shall be paid strictly in accordance with the terms hereof
                    under all circumstances including the following:

                
	 
                

        	 	
                                          (i)           any
                lack of validity or enforceability of any Letter of Credit or the Agreement or the
                other Loan Documents or any other agreement;
	
                	 

        	 	
                                          (ii)          the
                existence of any claim, setoff, defense or other right that Borrower or any of its
                Affiliates or any Lender may at any time have against a beneficiary or any
                transferee of any Letter of Credit (or any Persons or entities for whom any such
                transferee may be acting), Agent, any Lender, or any other

        	
                    

                    
                    B-3

                    

                

        

        

        	 	Person,
                whether in connection with the Agreement, the Letter of Credit, the transactions
                contemplated herein or therein or any unrelated transaction (including any
                underlying transaction between Borrower or any of its Affiliates and the
                beneficiary for which the Letter of Credit was procured);
	
                	 

        	 	
                                          (iii)          any
                draft, demand, certificate or any other document presented under any Letter of
                Credit proving to be forged, fraudulent, invalid or insufficient in any respect or
                any statement therein being untrue or inaccurate in any respect;
	
                	 

        	 	
                                          (iv)      
                   payment by Agent (except as otherwise expressly provided in
                paragraph (g)(ii)(C) below) or any L/C Issuer under any Letter of Credit or
                guaranty thereof against presentation of a demand, draft or certificate or other
                document that does not comply with the terms of such Letter of Credit or such
                guaranty;
	
                	 

        	 	
                                          (v)           any
                other circumstance or event whatsoever, that is similar to any of the foregoing;
                or
	
                	 

        	 	
                                          (vi)          the
                fact that a Default or an Event of Default has occurred and is
                continuing.

        	 
                
	
                    
                                                    
                    (g)       
                    Indemnification; Nature of Lenders’ Duties. (i) In addition
                    to amounts payable as elsewhere provided in the Agreement, Borrower hereby
                    agrees to pay and to protect, indemnify, and save harmless Agent and each
                    Lender from and against any and all claims, demands, liabilities, damages,
                    losses, costs, charges and expenses (including reasonable attorneys’ fees
                    and allocated costs of internal counsel) that Agent or any Lender may incur or
                    be subject to as a consequence, direct or indirect, of (A) the issuance of any
                    Letter of Credit or guaranty thereof, or (B) the failure of Agent or any Lender
                    seeking indemnification or of any L/C I ssuer to honor a demand for payment
                    under any Letter of Credit or guaranty thereof as a result of any act or
                    omission, whether rightful or wrongful, of any present or future de jure or de
                    facto government or Governmental Authority, in each case other than to the
                    extent solely as a result of the gross negligence or willful misconduct of
                    Agent or such Lender (as finally determined by a court of competent
                    jurisdiction).

                
	 
                

        	 	
                                          (ii)           As
                between Agent and any Lender and Borrower, Borrower assumes all risks of the acts
                and omissions of, or misuse of any Letter of Credit by beneficiaries of any Letter
                of Credit. In furtherance and not in limitation of the foregoing, to the fullest
                extent permitted by law neither Agent nor any Lender shall be responsible for: (A)
                the form, validity, sufficiency, accuracy, genuineness or legal effect of any
                document issued by any party in connection with the application for and issuance of
                any Letter of Credit, even if it should in fact prove to be in any or all respects
                invalid, insufficient, inaccurate, fraudulent or forged; (B) the validity or
                sufficiency of any instrument transferring or assigning or purporting to t ransfer
                or assign any Letter of Credit or the rights or benefits thereunder or proceeds
                thereof, in whole or in part, that may prove to be invalid or ineffective for any
                reason; (C) failure of the beneficiary of any Letter of

        	
                    

                    
                    B-4

                    

                

        

        

        	
                
	 
                

        	 	Credit to
                comply fully with conditions required in order to demand payment under such Letter
                of Credit; provided, that in the case of any payment by Agent under any
                Letter of Credit or guaranty thereof, Agent shall be liable to the extent such
                payment was made solely as a result of its gross negligence or willful misconduct
                (as finally determined by a court of competent jurisdiction) in determining that
                the demand for payment under such Letter of Credit or guaranty thereof complies on
                its face with any applicable requirements for a demand for payment under such
                Letter of Credit or guaranty thereof; (D) errors, omissions, interruptions or
                delays in transmission or delivery of any messages, by mail, cable, telegraph,
                telex or otherwise, whether or not they may be in cipher; (E) errors in
                interpretation of technical terms; (F) any loss or delay in the transmission or
                otherwise of any document required in order to make a payment under an y Letter of
                Credit or guaranty thereof or of the proceeds thereof; (G) the credit of the
                proceeds of any drawing under any Letter of Credit or guaranty thereof; and (H) any
                consequences arising from causes beyond the control of Agent or any Lender. None of
                the above shall affect, impair, or prevent the vesting of any of Agent’s or
                any Lender’s rights or powers hereunder or under the Agreement.
	
                	 

        	 	
                                          (iii)          Nothing
                contained herein shall be deemed to limit or to expand any waivers, covenants or
                indemnities made by Borrower in favor of any L/C Issuer in any letter of credit
                application, reimbursement agreement or similar document, instrument or agreement
                between Borrower and such L/C Issuer, including an Application and Agreement for
                Standby Letter of Credit and a Master Standby Agreement entered into with
                Agent.

        	
                    

                    
                    B-5

                    

                

        

        

        	
                    ANNEX
                    C (Section 1.8)

                    to 

                    CREDIT AGREEMENT

                    
                    CASH MANAGEMENT
                    SYSTEM

                
	 
                

        	
                                              
                   Borrower
                shall, and shall cause its Subsidiaries to, establish and maintain the Cash
                Management Systems described below:

        	 
                
	
                    
                                                    
                    (a)            
                    On or before the Original Closing Date and until the Termination Date, Borrower
                    shall deposit and cause its Subsidiaries to deposit or cause to be deposited
                    promptly, and in any event no later than the first Business Day after the date
                    of receipt thereof, all cash, checks, drafts or other similar items of payment
                    relating to or constituting payments made in respect of any and all Collateral
                    (whether or not otherwise delivered to a Lock Box) into lock boxes
                    (“Lock Boxes”) or in blocked accounts (“Blocked
                    Accounts”) in Borrower’s name or any such Subsidiary’s
                    name and at the ba nks identified in Disclosure Schedule 3.19 (each, a
                    “Relationship Bank”). On or before the Original Closing
                    Date, Borrower shall have established a concentration account in its name (the
                    “Concentration Account”) at the bank that shall be
                    designated as the Concentration Account bank for Borrower in Disclosure
                    Schedule 3.19 (the “Concentration Account Bank”) which
                    bank shall be reasonably satisfactory to Agent.

                    
                                                    
                    (b)           
                    Borrower may maintain, in its name, an account (each a “Disbursement
                    Account” and collectively, the “Disbursement
                    Accounts”) at a bank acceptable to Agent into which Agent shall, from
                    time to time, deposit proceeds of Revolving Credit Advances and Swing Line
                    Advances made to Borrower pursuant to Section 1.1 for use by Borrower in
                    accordance with the provisions of Section 1.4.

                    
                                                    
                    (c)            
                    On or before the Original Closing Date (or such later date as Agent shall
                    consent to in writing), the Concentration Account Bank, each bank where a
                    Disbursement Account is maintained and all other Relationship Banks, shall have
                    entered into, or confirmed the effectiveness of existing, tri-party blocked
                    account agreements with Agent, for the benefit of itself and Lenders, and
                    Borrower and Subsidiaries thereof, as applicable, in form and substance
                    reasonably acceptable to Agent, which shall become operative on or prior to the
                    Original Closing Date. Each such blocked account agreement shall provide, among
                    other things, that (i) all items of payment deposited in such account and
                    proceeds thereof deposited in the Concentration Account are held by such bank
                    as agent or bailee-in-possession for Agent, on behalf of itself and Lenders,
                    (ii) the bank executing such agreement has no rights of setoff or recoupment or
                    any other claim against such account, as the case may be, other than for
                    payment of its service fees and other charges directly related to the
                    administration of such account and for returned checks or other items of
                    payment, and (iii) from and after the Original Closing Date (A) with respect to
                    banks at which a Blocked Account is maintained, such bank agrees to forward
                    immediately all amounts in each Blocked Account to the Concentration Account
                    Bank and to commence the process of daily sweeps from such Blocked Account into
                    the Concentration Account and (B) with respect to the Concentration Account
                    Bank, such bank agrees to immediately forward all amounts received in the
                    Concentration Account to the Collection Account through daily sweeps

                

        	
                    

                    
                    C-1

                    

                

        

        

        	from such
                Concentration Account into the Collection Account. Borrower shall not, and shall
                not cause or permit any Subsidiary thereof to, accumulate or maintain cash in
                Disbursement Accounts or payroll accounts as of any date of determination in excess
                of checks outstanding against such accounts as of that date and amounts necessary
                to meet minimum balance requirements.

        	 
                
	
                    
                                                    
                    (d)           
                    So long as no Default or Event of Default has occurred and is continuing,
                    Borrower may amend Disclosure Schedule 3.19 to add or replace a
                    Relationship Bank, Lock Box or Blocked Account or to replace any Concentration
                    Account or any Disbursement Account; provided, that (i) Agent shall have
                    consented in writing in advance to the opening of such account or Lock Box with
                    the relevant bank and (ii) prior to the time of the opening of such account or
                    Lock Box, Borrower or its Subsidiaries, as applicable, and such bank shall have
                    executed and delivered to Agent a tri-party blocked account agreement, in form
                    and substa nce reasonably satisfactory to Agent. Borrower shall close any of
                    its accounts (and establish replacement accounts in accordance with the
                    foregoing sentence) promptly and in any event within 30 days following notice
                    from Agent that the creditworthiness of any bank holding an account is no
                    longer acceptable in Agent’s reasonable judgment, or as promptly as
                    practicable and in any event within 60 days following notice from Agent that
                    the operating performance, funds transfer or availability procedures or
                    performance with respect to accounts or Lock Boxes of the bank holding such
                    accounts or Agent’s liability under any tri-party blocked account
                    agreement with such bank is no longer acceptable in Agent’s reasonable
                    judgment.

                    
                                                    
                    (e)            
                    The Lock Boxes, Blocked Accounts, Disbursement Accounts and the Concentration
                    Account shall be cash collateral accounts, with all cash, checks and other
                    similar items of payment in such accounts securing payment of the Loans and all
                    other Obligations, and in which Borrower and each Subsidiary thereof shall have
                    granted a Lien to Agent, on behalf of itself and Lenders, pursuant to the
                    Security Agreement.

                    
                                                    
                    (f)             
                    All amounts deposited in the Collection Account shall be deemed received by
                    Agent in accordance with Section 1.10 and shall be applied (and
                    allocated) by Agent in accordance with Section 1.11. In no event shall
                    any amount be so applied unless and until such amount shall have been credited
                    in immediately available funds to the Collection Account.

                    
                                                    
                    (g)           
                    Borrower shall and shall cause its Affiliates, officers, employees, agents,
                    directors or other Persons acting for or in concert with Borrower (each a
                    “Related Person”) to (i) hold in trust for Agent, for the
                    benefit of itself and Lenders, all checks, cash and other items of payment
                    received by Borrower or any such Related Person, and (ii) within 1 Business Day
                    after receipt by Borrower or any such Related Person of any checks, cash or
                    other items of payment, deposit the same into a Blocked Account. Borrower and
                    each Related Person thereof acknowledges and agrees that all cash, checks or
                    other items of payment constitut ing proceeds of Collateral are part of the
                    Collateral. All proceeds of the sale or other disposition of any Collateral,
                    shall be deposited directly into Blocked Accounts.

                

        	
                    

                    
                    C-2

                    

                

        

        

        	
                    ANNEX
                    D (Section 2.1(a))

                    to 

                    CREDIT AGREEMENT

                    
                    CLOSING
                    CHECKLIST

                    
                                                    
                    In addition to, and not in
                    limitation of, the conditions described in Section 2.1 of the Agreement,
                    pursuant to Section 2.1 (a), the following items must be received by
                    Agent in form and substance satisfactory to Agent on or prior to the Original
                    Closing Date (each capitalized term used but not otherwise defined herein shall
                    have the meaning ascribed thereto in Annex A to the
                    Agreement):

                    
                                                    
                    A.
                               Appendices.
                    All Appendices to the Existing Credit Agreement, in form and substance
                    satisfactory to Agent.

                    
                                                    
                    B.
                               Revolving
                    Notes and Swing Line Note. Duly executed originals of the Revolving Notes
                    and Swing Line Note for each applicable Lender, dated the Original Closing
                    Date.

                
	 
                

        	
                                                
                C.
                           Security
                Agreements. Duly executed originals of the Security Agreements, dated the
                Original Closing Date, and all instruments, documents and agreements executed
                pursuant thereto.

        	 
                
	
                    
                                                    
                    D.
                               Insurance.
                    Satisfactory evidence that the insurance policies required by Section
                    5.4  are in full force and effect, together with appropriate evidence
                    showing loss payable and/or additional insured clauses or endorsements, as
                    requested by Agent, in favor of Agent, on behalf of Lenders.

                
	 
                

        	
                                                
                E.
                           Security
                Interests and Code Filings. (a) Evidence satisfactory to Agent that Agent (for
                the benefit of itself and Lenders) has a valid and perfected first priority
                security interest in the Collateral, including (i) such documents duly executed by
                each Credit Party (including financing statements under the Code and other
                applicable documents under the laws of any jurisdiction with respect to the
                perfection of Liens) as Agent may request in order to perfect its security
                interests in the Collateral and (ii) copies of Code search reports listing all
                effective financing statements that name any Credit Party as debtor, together with
                copies of such financing statements, none of which shall cover the
                Collateral.

        	 
                
	
                    
                                                    
                    (b)
                               Evidence
                    satisfactory to Agent, including copies, of all UCC-1 and other financing
                    statements filed in favor of any Credit Party with respect to each location, if
                    any, at which Inventory may be consigned.

                    
                                                    
                    (c)
                               Control
                    Letters from (i) all issuers of uncertificated securities and financial assets
                    held by Borrower, (ii) all securities intermediaries with respect to all
                    securities accounts and securities entitlements of Borrower, and (iii) all
                    futures commission agents and clearing houses with respect to all commodities
                    contracts and commodities accounts held by Borrower.

                

        	
                    

                    
                    D-1

                    

                

        

        

        	
                                                
                F.
                           Omnibus
                Amendment and Confirmation of Collateral Document Agreement. Duly executed
                originals of the Omnibus Amendment and Confirmation of Collateral Document
                Agreement dated the Original Closing Date, and all instruments, documents and
                agreements executed pursuant thereto.
	 
	
                                                
                G.
                           Intellectual
                Property Security Agreement. Duly executed originals of the Intellectual
                Property Security Agreement, dated the Original Closing Date, and signed by each
                Credit Party which owns Trademarks, Copyrights and/or Patents, as applicable, all
                in form and substance reasonably satisfactory to Agent, together with all
                instruments, documents and agreements executed pursuant thereto.
	 
	
                                                
                H.
                           Cash
                Management Letters. Duly executed originals of a letter, dated the Original
                Closing Date (the “Cash Management Letter”) addressed to and
                acknowledged and agreed by Fleet Bank from Borrower and the other Credit Parties
                with respect to the continued effectiveness of (i) the Pledged Account Agreement,
                dated as of May 1999, among Borrower, Agent and Fleet Bank, (ii) the Concentration
                Account Agreement, dated as of May 1999 among Borrower, Agent and Fleet Bank, (iii)
                duly executed originals of a three-party agreement relating to lockbox services by
                and among Borrower, Agent and Bank of America, N.A., and (iv) duly executed
                originals of a three-party agreement relating to lockbox services by and among
                Butler Telecom, Inc., Agent and Bank of America, N.A.
	 
	
                                                
                I.
                           Initial
                Borrowing Base Certificate. Duly executed originals of an initial Borrowing
                Base Certificate from Borrower, dated the Original Closing Date, reflecting
                information concerning Eligible Accounts and Eligible Pending Accounts Receivable
                and Fixed Contract Accounts Receivable of Borrower as of a date not more than 7
                days prior to the Original Closing Date.

        	 
                
	
                    
                                                    
                    J.
                               Initial
                    Notice of Revolving Credit Advance. Duly executed originals of a Notice of
                    Revolving Credit Advance, dated the Original Closing Date, with respect to the
                    initial Revolving Credit Advance to be requested by Borrower on the Original
                    Closing Date.

                
	 
                

        	
                                                
                K.
                           Letter of
                Direction. Duly executed originals of a letter of direction from Borrower
                addressed to Agent, on behalf of itself and Lenders, with respect to the
                disbursement on the Original Closing Date of the proceeds of the initial Revolving
                Credit Advance.
	 
	
                                                
                L.
                           Cash
                Management System; Blocked Account Agreements. Evidence satisfactory to Agent
                that, as of the Original Closing Date, Cash Management Systems complying with
                Annex C to the Agreement have been established and are currently being
                maintained in the manner set forth in such Annex C, together with copies of
                duly executed tri-party concentration account, blocked account and lock box
                agreements, reasonably satisfactory to Agent, with the banks as required by
                Annex C.
	 
	
                                                
                M.
                            Charter
                and Good Standing. For each Credit Party, such Person’s (a) charter and
                all amendments thereto, (b) good standing certificates (including verification of
                tax status) in its state of incorporation and (c) good standing certificates
                (including verification of tax status) and certificates of qualification to conduct
                business in each jurisdiction where its ownership or lease of property or the
                conduct of its business requires such qualification, each

        	
                    

                    
                    D-2

                    

                

        

        

        	dated a recent
                date prior to the Original Closing Date and certified by the applicable Secretary
                of State or other authorized Governmental Authority.

        	 
                
	
                    
                                                    
                    N.
                               Bylaws and
                    Resolutions. For each Credit Party, (a) such Person’s bylaws,
                    together with all amendments thereto and (b) resolutions of such Person’s
                    Board of Directors and stockholders, approving and authorizing the execution,
                    delivery and performance of the Loan Documents to which such Person is a party
                    and the transactions to be consummated in connection therewith, each certified
                    as of the Original Closing Date by such Person’s corporate secretary or
                    an assistant secretary as being in full force and effect without any
                    modification or amendment.

                    
                                                    
                    O.
                               Incumbency
                    Certificates. For each Credit Party, signature and incumbency certificates
                    of the officers of each such Person executing any of the Loan Documents,
                    certified as of the Original Closing Date by such Person’s corporate
                    secretary or an assistant secretary as being true, accurate, correct and
                    complete.

                    
                                                    
                    P.
                               Opinions
                    of Counsel. Duly executed originals of opinions of McBreen, McBreen &
                    Kopko, counsel for the Credit Parties, together with any local counsel opinions
                    reasonably requested by Agent, each in form and substance reasonably
                    satisfactory to Agent and its counsel, dated the Original Closing Date, and
                    each accompanied by a letter addressed to such counsel from the Credit Parties,
                    authorizing and directing such counsel to address its opinion to Agent, on
                    behalf of Lenders, and to include in such opinion an express statement to the
                    effect that Agent and Lenders are authorized to rely on such
                    opinion.

                
	 
                

        	
                                                
                Q.
                           Pledge
                Agreements. Duly executed originals of each of the Pledge Agreements
                accompanied by (as applicable) (a) share certificates representing all of the
                outstanding Stock being pledged pursuant to such Pledge Agreement and stock powers
                for such share certificates executed in blank and (b) the original Intercompany
                Notes and other instruments evidencing Indebtedness being pledged pursuant to such
                Pledge Agreement, duly endorsed in blank.
	 
	
                                                
                R.
                           Accountants’
                Letters. A letter from the Credit Parties to their independent auditors
                authorizing the independent certified public accountants of the Credit Parties to
                communicate with Agent and Lenders in accordance with Section
                4.2.
	 
	
                                                
                S.
                           Appointment of
                Agent for Service. An appointment of CT Corporation as each Credit
                Party’s agent for service of process.
	 

        	
                                                
                T.
                           Fee
                Letter. Duly executed originals of the GE Capital Fee Letter.

        	 
                
	
                    
                                                    
                    U.
                               Officer’s
                    Certificate. Agent shall have received duly executed originals of a
                    certificate of the Chief Financial Officer and the Vice President and
                    Controller of Borrower, dated the Original Closing Date, stating that, since
                    December 31, 2000 (a) no event or condition has occurred or is existing which
                    could reasonably be expected to have a Material Adverse Effect other than as
                    reflected in the 2001 10-Q’s and related forecasts filed by Borrower; (b)
                    there has been no material adverse change in the industry in which Borrower
                    operates other than as reflected in the 2001 10-Q’s and related forecasts
                    filed b y Borrower; (c) no Litigation has been commenced which, if successful,
                    would have a Material Adverse Effect or could challenge

                

        	
                    

                    
                    D-3

                    

                

        

        

        	
                
	 
                

        	any of the
                transactions contemplated by the Agreement and the other Loan Documents; (d) there
                have been no Restricted Payments made by any Credit Party; and (e) there has been
                no material increase in liabilities, liquidated or contingent, and no material
                decrease in assets of Borrower or any of its Subsidiaries.

        	 
                
	
                    
                                                    
                    V.
                               Waivers.
                    Agent, on behalf of Lenders, shall have received landlord waivers and consents,
                    bailee letters and mortgagee agreements in form and substance satisfactory to
                    Agent, in each case as required pursuant to Section 5.9.

                
	 
                

        	
                                                
                W.
                           Subordination
                and Intercreditor Agreements. Agent and Lenders shall have received any and all
                subordination and/or intercreditor agreements, all in form and substance reasonably
                satisfactory to Agent, in its sole discretion, as Agent shall have deemed necessary
                or appropriate with respect to any Indebtedness of any Credit Party.
	 
	
                                                
                X.
                           Appraisals.
                Agent shall have received appraisals as to all Equipment in form and substance
                reasonably satisfactory to Agent.

        	 
                
	
                    
                                                    
                    Y.
                               Audited
                    Financials; Financial Condition. Agent shall have received the Financial
                    Statements and other materials set forth in Section 3.4, certified by
                    Borrower’s Chief Financial Officer, in each case in form and substance
                    satisfactory to Agent, and Agent shall be satisfied, in its sole discretion,
                    with all of the foregoing. Agent shall have further received a certificate of
                    the Chief Executive Officer and/or the Chief Financial Officer of Borrower,
                    based on such Pro Forma, to the effect that (a) Borrower will be Solvent upon
                    the consummation of the transactions contemplated herein; (b) the Pro Forma
                    fairly presents the financial condition of Borrower as of the date thereof
                    after giving effect to the transactions contemplated by the Loan Documents; and
                    (c) containing such other statements with respect to the solvency of Borrower
                    and matters related thereto as Agent shall request.

                
	 
                

        	
                                                
                Z.
                           Master Standby
                Agreement. A Master Agreement for Standby Letters of Credit between Borrower
                and GE Capital.
	 
	
                                                
                AA.
                       Other Documents. Such other
                certificates, documents and agreements respecting any Credit Party as Agent may, in
                its sole discretion, request.

        	
                    

                    
                    D-4

                    

                

        

        

        	
                    ANNEX
                    E (Section 4.1(a))

                    to 

                    CREDIT AGREEMENT

                
	 
                

        	
                FINANCIAL STATEMENTS AND
                PROJECTIONS – REPORTING
	
                	 

        	
                                                
                Borrower shall deliver or cause
                to be delivered to Agent or to Agent and Lenders, as indicated, the
                following:

        	 
                
	
                    
                                                    
                    (a)            
                    Monthly Financials. To Agent and Lenders, within 30 days after the end
                    of each Fiscal Month, financial information regarding Borrower and its
                    Subsidiaries, and upon request of Agent, certified by the Chief Financial
                    Officer of Borrower, consisting of consolidated and consolidating (i) unaudited
                    balance sheets as of the close of such Fiscal Month and the related statements
                    of income and cash flows for that portion of the Fiscal Year ending as of the
                    close of such Fiscal Month; (ii) unaudited statements of income and cash flows
                    for such Fiscal Month, setting forth in comparative form the figures for the
                    correspond ing period in the prior year and the figures contained in the
                    Projections for such Fiscal Year, all prepared in accordance with GAAP (subject
                    to normal year-end adjustments); and (iii) a summary of the outstanding balance
                    of all Intercompany Notes as of the last day of that Fiscal Month. Such
                    financial information shall be accompanied by the certification of the Chief
                    Financial Officer of Borrower that (i) such financial information presents
                    fairly in accordance with GAAP (subject to normal year-end adjustments) the
                    financial position and results of operations of Borrower and its Subsidiaries,
                    on a consolidated and consolidating basis, in each case as at the end of such
                    Fiscal Month and for that portion of the Fiscal Year then ended and (ii) any
                    other information presented is true, correct and complete in all material
                    respects and that there was no Default or Event of Default in existence as of
                    such time or, if a Default or Event of Default shall have occurred and be
                    continuing, describing the nature thereof and all efforts undertaken to cure
                    such Default or Event of Default.

                    
                                                    
                    (b)           
                    Quarterly Financials. To Agent and Lenders, within 45 days after the end
                    of each Fiscal Quarter, consolidated and consolidating financial information
                    regarding Borrower and its Subsidiaries, certified by the Chief Financial
                    Officer of Borrower, including (i) unaudited balance sheets as of the close of
                    such Fiscal Quarter and the related statements of income and cash flow for that
                    portion of the Fiscal Year ending as of the close of such Fiscal Quarter and
                    (ii) unaudited statements of income and cash flows for such Fiscal Quarter, in
                    each case setting forth in com parative form the figures for the corresponding
                    period in the prio r year and the figures contained in the Projections for such
                    Fiscal Year, all prepared in accordance with GAAP (subject to normal year-end
                    adjustments). Such financial information shall be accompanied by (A) a
                    statement in reasonable detail (each, a “Compliance
                    Certificate”) showing the calculations used in determining compliance
                    with each of the Financial Covenants that is tested on a quarterly basis and
                    (B) the certification of the Chief Financial Officer of Borrower that (i) such
                    financial information presents fairly in accordance with GAAP (subject to
                    normal year-end adjustments) the financial position, results of operations and
                    statements of cash flows of Borrower and its Subsidiaries, on both a
                    consolidated and consolidating basis, as at the end of such Fiscal Quarter and
                    for that portion of the Fiscal Year then ended, (ii) any other information
                    presented is true, correct and complete in all material respects and that there
                    was no Default or Event of Default in existence as of such tim e or, if a
                    Default or Event of Default has occurred and is continuing,

                

        	
                    

                    
                    E-1

                    

                

        

        

        	
                    describing the nature
                    thereof and all efforts undertaken to cure such Default or Event of Default. In
                    addition, Borrower shall deliver to Agent and Lenders, within 45 days after the
                    end of each Fiscal Quarter, a management discussion and analysis that includes
                    a comparison to budget for that Fiscal Quarter and a comparison of performance
                    for that Fiscal Quarter to the corresponding period in the prior
                    year.

                    
                                                    
                    (c)            
                    Operating Plan. To Agent and Lenders, as soon as available, but not
                    later than 30 days after the end of each Fiscal Year, an annual operating plan
                    for Borrower, approved by the Board of Directors of Borrower, for the following
                    Fiscal Year, which (i) includes a statement of all of the material assumptions
                    on which such plan is based, (ii) includes monthly balance sheets and a monthly
                    budget for the following year and (iii) integrates sales, gross profits,
                    operating expenses, operating profit, cash flow projections and Borrowing
                    Availability projections, all prepared on the same basis and in similar detail
                    as that on which o perating results are reported (and in the case of cash flow
                    projections, representing management’s good faith estimates of future
                    financial performance based on historical performance), and including plans for
                    personnel, Capital Expenditures and facilities.

                    
                                                    
                    (d)            
                    Annual Audited Financials. To Agent and Lenders, within 90 days after
                    the end of each Fiscal Year, audited Financial Statements for Borrower and its
                    Subsidiaries on a consolidated and (unaudited) consolidating basis, consisting
                    of balance sheets and statements of income and retained earnings and cash
                    flows, setting forth in comparative form in each case the figures for the
                    previous Fiscal Year, which Financial Statements shall be prepared in
                    accordance with GAAP and certified without qualification, by an independent
                    certified public accounting firm of national standing or otherwise acceptable
                    to Agent. Such Financial State ments shall be accompanied by (i) a statement
                    prepared in reasonable detail showing the calculations used in determining
                    compliance with each of the Financial Covenants, (ii) a report from such
                    accounting firm to the effect that, in connection with their audit examination,
                    nothing has come to their attention to cause them to believe that a Default or
                    Event of Default has occurred with respect to the Financial Covenants (or
                    specifying those Defaults and Events of Default that they became aware of), it
                    being understood that such audit examination extended only to accounting
                    matters and that no special investigation was made with respect to the
                    existence of Defaults or Events of Default, (iii) a letter addressed to Agent,
                    on behalf of itself and Lenders, in form and substance reasonably satisfactory
                    to Agent and subject to standard qualifications required by nationally
                    recognized accounting firms, signed by such accounting firm acknowledging that
                    Agent and Lenders are entitled to rely upon such accounting firm’s
                    certification of such audited Financial Statements, (iv) the annual letters to
                    such accountants in connection with their audit examination detailing
                    contingent liabilities and material litigation matters, and (v) the
                    certification of the Chief Executive Officer or Chief Financial Officer of
                    Borrower that all such Financial Statements present fairly in accordance with
                    GAAP the financial position, results of operations and statements of cash flows
                    of Borrower and its Subsidiaries on a consolidated and consolidating basis, as
                    at the end of such Fiscal Year and for the period then ended, and that there
                    was no Default or Event of Default in existence as of such time or, if a
                    Default or Event of Default has occurred and is continuing, describing the
                    nature thereof and all efforts undertaken to cure such Default or Event of
                    Default.

                

        	
                    

                    
                    E-2

                    

                

        

        

        	
                    
                                                    
                    (e)            
                    Management Letters. To Agent and Lenders, within 5 Business Days after
                    receipt thereof by any Credit Party, copies of all management letters,
                    exception reports or similar letters or reports received by such Credit Party
                    from its independent certified public accountants.

                    
                                                    
                    (f)             
                    Default Notices. To Agent and Lenders, as soon as practicable, and in
                    any event within 5 Business Days after an executive officer of Borrower has
                    actual knowledge of the existence of any Default, Event of Default or other
                    event that has had a Material Adverse Effect, telephonic or telecopied notice
                    specifying the nature of such Default or Event of Default or other event,
                    including the anticipated effect thereof, which notice, if given
                    telephonically, shall be promptly confirmed in writing on the next Business
                    Day.

                    
                                                    
                    (g)           
                    SEC Filings and Press Releases. To Agent and Lenders, promptly upon
                    their becoming available, copies of: (i) all Financial Statements, reports,
                    notices and proxy statements made publicly available by any Credit Party to its
                    security holders; (ii) all regular and periodic reports and all registration
                    statements and prospectuses, if any, filed by any Credit Party with any
                    securities exchange or with the Securities and Exchange Commission or any
                    governmental or private regulatory authority; and (iii) all press releases and
                    other statements made available by any Cred it Party to the public concerning
                    material changes or developments in the business of any such Person.

                
	 
                

        	
                                                
                (h)           
                Subordinated Debt and Equity Notices. To Agent, as soon as practicable,
                copies of all material written notices given or received by any Credit Party with
                respect to any Subordinated Debt or Stock of such Person, and, within 2 Business
                Days after any Credit Party obtains knowledge of any matured or unmatured event of
                default with respect to any Subordinated Debt, notice of such event of
                default.
	 
	
                                                
                (i)           
                Supplemental Schedules. To Agent, supplemental disclosures, if any, required
                by Section 5.6.

        	 
                
	
                    
                                                    
                    (j)           
                    Litigation. To Agent in writing, promptly upon learning thereof, notice
                    of any Litigation commenced or threatened against any Credit Party that (i)
                    seeks damages in excess of $750,000, (ii) seeks injunctive relief, (iii) is
                    asserted or instituted against any Plan, its fiduciaries or its assets or
                    against any Credit Party or ERISA Affiliate in connection with any Plan, (iv)
                    alleges criminal misconduct by any Credit Party, (v) alleges the violation of
                    any law regarding, or seeks remedies in connection with, any Environmental
                    Liabilities; or (vi) involves any product recall.

                    
                                                    
                    (k)          
                    Insurance Notices. To Agent, disclosure of losses or casualties required
                    by Section 5.4.

                    
                                                    
                    (l)           
                    Lease Default Notices. To Agent, within 2 Business Days after receipt
                    thereof, copies of (i) any and all default notices received under or with
                    respect to any leased location or public warehouse where Collateral is located,
                    and (ii) such other notices or documents as Agent may reasonably
                    request.

                

        	
                    

                    
                    E-3

                    

                

        

        

        	
                    
                                                    
                    (m)           
                    Lease Agreement. To Agent, as soon as practicable, and in any event
                    within fifteen (15) days after any amendment, restatement or replacement of the
                    Montvale Lease has been executed, copies of such amendment, restatement or
                    replacement and such other notices or documents related thereto as Agent may
                    reasonably request.

                
	 
                

        	
                                                
                (n)           
                Other Documents. To Agent and Lenders, such other financial and other
                information respecting any Credit Party’s business or financial condition as
                Agent or any Lender shall, from time to time, reasonably request.

        	 
                
	
                    
                                                    
                    (o)           
                    Four Week Net Cash Flow Forecast. To Agent, on or prior to 9:00 a.m.
                    (New York time) on each Monday beginning on the first Monday after the Closing
                    Date, an updated four (4) week net cash flow forecast showing Borrower’s
                    cumulative actual and forecasted cash receipts and cash disbursements from the
                    first Monday after the Closing Date, together with the actual variance for such
                    period and such other information as may be reasonably requested by Agent, in
                    form and substance reasonably satisfactory to Agent.

                    
                                                    
                    (p)           
                    Weekly Status Reports. To Agent, on or prior to 9:00 a.m. (New York
                    time) on each Monday following the first Monday after the Closing Date, a
                    detailed status report setting forth the Borrower’s efforts to refinance
                    in full in cash the Obligations and sell the Montvale Property, and such other
                    information as may be reasonably requested by Agent, in each case in form and
                    substance reasonably satisfactory to Agent.

                    
                                                    
                    (q)           
                    Restated 2004 Audited Financial Statements; 2005 Audited Financial
                    Statements; 2006 Audited Financial Statements. To Agent, on or prior to
                    November 1, 2007, (i) restated audited Financial Statements for Borrower and
                    its Subsidiaries for Fiscal Year ended December 31, 2004 (the
                    “Restated Financial Statements”), which Restated Financial
                    Statements shall be prepared in accordance with GAAP and certified without
                    qualification by an independent certified public accounting firm of national
                    standing or otherwise acceptable to Agent, (ii) the annual Financial
                    Statements, certifications, statements, reports, lette rs and all other
                    documentation required to be delivered pursuant to Section 4.1 (a) and
                    clause (d) of Annex E of the Credit Agreement in respect of the
                    Fiscal Year ended December 31, 2005 (the “2005 Year End Financial
                    Information”) for Borrower and its Subsidiaries on a consolidated
                    basis, which 2005 Year End Financial Information shall be prepared in
                    accordance in all respects with subsection (d) hereof, and (iii) the annual
                    Financial Statements, certifications, statements, reports, letters and all
                    other documentation required to be delivered pursuant to Section 4.1 (a)
                    and clause (b) of Annex E of the Credit Agreement in respect of
                    the Fiscal Year December 31, 2006 (the “2006 Year End Financial
                    Information”) for Borrower and its Subsidiaries on a consolidated
                    basis, which 2006 Year End Financial Information shall be prepared in
                    accordance in all respects with subsection (d) hereof.

                

        	
                    

                    
                    E-4

                    

                

        

        

        	
                    ANNEX
                    F (Section 4.1(b))

                    to 

                    CREDIT AGREEMENT

                    
                    COLLATERAL
                    REPORTS

                
	 
                

        	
                                                Borrower
                shall deliver or cause to be delivered the following:

        	 
                
	
                    
                                                    
                    (a)           To
                    Agent, upon its request, and in any event no less frequently than the tenth
                    (10)th day after the end of each Fiscal Month (together with a copy of all or
                    any part of the following reports requested by any Lender in writing after the
                    Closing Date), each of the following reports, each of which shall be prepared
                    by the Borrower as of the last day of the immediately preceding Fiscal Month or
                    the date 2 days prior to the date of any such request:

                
	 
                

        	 	
                                           (i)                 a
                Borrowing Base Certificate with respect to Borrower, accompanied by such supporting
                detail and documentation as shall be requested by Agent in its reasonable
                discretion; and
	
                	 

        	 	
                                           (ii)                  with
                respect to Borrower, a summary of Inventory by location and type with a supporting
                perpetual Inventory report, in each case accompanied by such supporting detail and
                documentation as shall be requested by Agent in its reasonable
                discretion;

        	 
                
	
                    
                                                    
                    (b)            
                    To Agent, upon its request, and in any event no less frequently than the second
                    (2nd) day after the end of each week, with respect to Borrower, a trial balance
                    showing Accounts outstanding aged from invoice date as follows: 1 to 30
                    days, 31 to 60 days, 61 to 90 days and 91 days or more, accompanied by such
                    supporting detail and documentation as shall be requested by Agent in its
                    reasonable discretion.

                    
                                                    
                    (c)            
                    To Agent, on a weekly basis or at such more frequent intervals as Agent may
                    request from time to time (together with a copy of all or any part of such
                    delivery requested by any Lender in writing after the Closing Date), collateral
                    reports with respect to Borrower, including all additions and reductions (cash
                    and non-cash) with respect to Accounts of Borrower, in each case accompanied by
                    such supporting detail and documentation as shall be requested by Agent in its
                    reasonable discretion each of which shall be prepared by the applicable
                    Borrower as of the last day o f the immediately preceding week or the date 2
                    days prior to the d ate of any request;

                
	 
                

        	
                                                (d)
                            
                To Agent, at the time of delivery of each of the monthly Financial Statements
                delivered pursuant to Annex E if an Event of Default has occurred, and upon
                Agent’s request, if no Event of Default has occurred:
	 

        	 	
                                           (i)                 a
                reconciliation of the most recent Borrowing Base, general ledger and month-end
                Inventory reports of Borrower to Borrower’s general ledger and monthly
                Financial Statements delivered pursuant to such Annex E, in each case
                accompanied by such supporting detail and documentation as shall be requested by
                Agent in its reasonable discretion;

        	
                    

                    
                    F-1

                    

                

        

        

        	 	
                                           (ii)                  a
                reconciliation of the perpetual inventory by location to Borrower’s most
                recent Borrowing Base Certificate, general ledger and monthly Financial Statements
                delivered pursuant to Annex E, in each case accompanied by such supporting
                detail and documentation as shall be requested by Agent in its reasonable
                discretion;
	
                	 

        	 	
                                           (iii)                  an
                aging of accounts payable and a reconciliation of that accounts payable aging to
                Borrower’s general ledger and monthly Financial Statements delivered pursuant
                to Annex E, in each case accompanied by such supporting detail and
                documentation as shall be requested by Agent in its reasonable
                discretion;
	
                	 

        	 	
                                           (iv)                  a
                reconciliation of the outstanding Loans as set forth in the monthly Loan Account
                statement provided by Agent to Borrower’s general ledger and monthly
                Financial Statements delivered pursuant to Annex E, in each case accompanied
                by such supporting detail and documentation as shall be requested by Agent in its
                reasonable discretion;

        	 
                
	
                    
                                                    
                    (e)            
                    To Agent, at the time of delivery of each of the quarterly Financial Statements
                    delivered pursuant to Annex E, (i) a listing of government contracts of
                    Borrower subject to the Federal Assignment of Claims Act of 1940; and (ii) a
                    list of any applications for the registration of any Patent, Trademark or
                    Copyright filed by any Credit Party with the United States Patent and Trademark
                    Office, the United States Copyright Office or any similar office or agency in
                    the prior Fiscal Quarter;

                    
                                                    
                    (f)             
                    Borrower, at its own expense, shall deliver to Agent the results of each
                    physical verification, if any, that Borrower or any of its Subsidiaries may in
                    their discretion have made, or caused any other Person to have made on their
                    behalf, of all or any portion of their Inventory (and, if a Default or an Event
                    of Default has occurred and be continuing, Borrower shall, upon the request of
                    Agent, conduct, and deliver the results of, such physical verifications as
                    Agent may require);

                    
                                                    
                    (g)           
                    Borrower, at its own expense, shall deliver to Agent such appraisals of its
                    assets as Agent may request at any time after the occurrence and during the
                    continuance of a Default or an Event of Default, such appraisals to be
                    conducted by an appraiser, and in form and substance reasonably satisfactory to
                    Agent; and

                    
                                                    
                    (h)       Such
                    other reports, statements and reconciliations with respect to the Borrowing
                    Base or Collateral or Obligations of any or all Credit Parties as Agent shall
                    from time to time request in its reasonable discretion.

                

        	
                    

                    
                    F-2

                    

                

        

        

        	
                    ANNEX
                    G (Section 6.10)

                    to

                    CREDIT AGREEMENT

                    
                    FINANCIAL
                    COVENANTS

                
	 
                

        	
                                                
                Borrower shall not breach or
                fail to comply with any of the following financial covenants, each of which shall
                be calculated in accordance with GAAP consistently applied:
	 
	
                                                                
                (a)
                            
                Maximum Capital Expenditures. Holdings and its Subsidiaries on a
                consolidated basis shall not make Capital Expenditures that exceed $3,000,000 in
                the aggregate in any Fiscal Year.
	 

        	
                                                                
                (b)
                            
                Minimum Fixed Charge Coverage Ratio. Holdings and its Subsidiaries shall
                have on a consolidated basis a Fixed Charge Coverage Ratio of not less than 1. 10x
                for the Fiscal Quarter ending December 31, 2007.
	 

        	
                                                                
                (c)
                            
                Maximum Leverage Ratio. Holdings and its Subsidiaries on a consolidated
                basis shall have a Leverage Ratio of not more than 4.75x for the Fiscal Quarter
                ending September 30, 2007 and December 31, 2007.

        	 
                
	
                    Unless otherwise
                    specifically provided herein, any accounting term used in the Agreement shall
                    have the meaning customarily given such term in accordance with GAAP, and all
                    financial computations hereunder shall be computed in accordance with GAAP
                    consistently applied. That certain items or computations are explicitly
                    modified by the phrase “in accordance with GAAP” shall in no way be
                    construed to limit the foregoing. If any “Accounting Changes” (as
                    defined below) occur and such changes result in a change in the calculation of
                    the financial covenants, standards or terms used in the Agreement or any other
                    Loan Document, then Borrower, Agent and Lenders agree to enter into
                    negotiations in order to amend such provisions of the Agreement so as to
                    equitably reflect such Accounting Changes with the desired result that the
                    criteria for evaluating Borrower’s and its Subsidiaries’ financial
                    condition shall be the sam e after such Accounting Changes as if such
                    Accounting Changes had not been made; provided, however, that the
                    agreement of Requisite Lenders to any required amendments of such provisions
                    shall be sufficient to bind all Lenders. “Accounting
                    Changes” means (i) changes in accounting principles required by the
                    promulgation of any rule, regulation, pronouncement or opinion by the Financial
                    Accounting Standards Board of the American Institute of Certified Public
                    Accountants (or successor thereto or any agency with similar functions), (ii)
                    changes in accounting principles concurred in by Borrower’s certified
                    public accountants; (iii) purchase accounting adjustments under A.P.B. 16 or 17
                    and EITF 88-16, and the application of the accounting principles set forth in
                    FASB 109, including the establishment of reserves pursuant thereto and any
                    subsequent reversal (in whole or in part) of such reserves; and (iv) the
                    reversal of any reserves established as a result of purchase accounting a
                    djustments. All such adjustments resulting from expenditures made subsequent to
                    the Closing Date (including capitalization of costs and expenses or payment of
                    pre-Closing Date liabilities) shall be treated as expenses in the period the
                    expenditures are made and deducted as part of the calculation of EBITDA in such
                    period. If Agent, Borrower and Requisite Lenders agree upon the required
                    amendments, then after appropriate amendments have been executed and the
                    underlying Accounting Change with respect thereto has been

                

        	
                    

                    
                    G-1

                    

                

        

        

        	
                    implemented, any
                    reference to GAAP contained in the Agreement or in any other Loan Document
                    shall, only to the extent of such Accounting Change, refer to GAAP,
                    consistently applied after giving effect to the implementation of such
                    Accounting Change. If Agent, Borrower and Requisite Lenders cannot agree upon
                    the required amendments within 30 days following the date of implementation of
                    any Accounting Change, then all Financial Statements delivered and all
                    calculations of financial covenants and other standards and terms in accordance
                    with the Agreement and the other Loan Documents shall be prepared, delivered
                    and made without regard to the underlying Accounting Change. For purposes of
                    Section 8.1, a breach of a Financial Covenant contained in this Annex
                    G shall be deemed to have occurred as of any date of determination by Agent
                    or as of the last day of any specified measurement period, regardless of when
                    the Financial Statements reflec ting such breach are delivered to
                    Agent.

                

        	
                    

                    
                    G-2

                    

                

        

        

        	
                    ANNEX H (Section
                    1.1(d))  

                     to 

                    CREDIT AGREEMENT

                    LENDERS’ WIRE
                    TRANSFER INFORMATION

                

        	 	 	 	 
	 	Name:	  	General Electric Capital
                Corporation
	 	Bank:	  	Bankers Trust
                Company
	 	  	  	New York, New
                York
	 	ABA #:	  	021001033
	 	Account #:	  	50232854
	 	Account Name:	  	GECC/CAF
                Depository
	 	Reference:	  	CFC Butler

        	
                    

                    
                    H-1

                    

                

        

        

        	
                    ANNEX I (Section
                    11.10) 

                    to 

                    CREDIT AGREEMENT

                    NOTICE
                    ADDRESSES

                
	 
                

        	
                (A)	If to Agent or
                GE Capital, at

                General Electric Capital Corporation

                800 Connecticut Avenue, Two North

                Norwalk, CT 06854

                Attention: Butler Account Manager

                Telecopier No.: (203) 852-3660

                Telephone No.: (203) 852-3600
	
                	 

        	
                	with copies
                to:
	 	 
	 	Paul,
                Hastings, Janofsky & Walker LLP

                1055 Washington Boulevard

                Stamford, CT 06901

                Attention: Leslie A. Plaskon

                Telecopier No.: (203) 359-3031

                Telephone No.: (203) 961-7424
	
                	 
	 	
                and
	
                	 
	 	General
                Electric Capital Corporation

                201 High Ridge Road

                Stamford, Connecticut 06927-5100

                Attention: Corporate Counsel-Commercial Finance

                Telecopier No.: (203) 316-7889

                Telephone No.: (203) 316-7552
	
                	 

        	
                (B)	If to
                Borrower, at

                Butler Service Group, Inc.

                110 Summit Avenue

                Montvale, NJ 07645

                Attention: Mark Koscinski

                Telecopier No.: (201) 573-9723

                Telephone No.: (201) 476-5441

        	
                    

                    
                    I-1

                    

                

        

        

        	
                
	 
                

        	 	With copies
                to:
	
                	 
	 	McBreen &
                Kopko

                20 North Wacker Drive, Suite 2520

                Chicago, IL 60606

                Attention: James Stern

                Telecopier No.: (312) 332-2657

                Telephone No.: (312) 332-6405
	
                	 
	 	Butler
                International, Inc.

                The New River Center, Suite 1730

                200 E. Las Olas Boulevard

                Fort Lauderdale, FL 33301

                Attn: Edward M. Kopko, CEO

                Phone: 954-761-2201

                Fax: 954-761-9675
	
                	 
	
                	Butler
                Services, Inc.

                110 Summit Avenue

                Montvale, NJ 07645

                Attn: Richard S. Paras, VP Legal

                Phone: 201-476-5407

                Fax: 201-573-0049

        	
                    

                    
                    I-2

                    

                

        

        

        	
                ANNEX J (from Annex A -
                Commitments definition)

                to

                CREDIT AGREEMENT
	 

        	 	
                                          
                

        	 	 	 	 	 
	Lender(s):	 	 	 	 
	 	 	 	 	 
	General Electric Capital
                Corporation	 	 	 	 
	Revolving Loan
                Commitment	 	 	 	 
	(including a Swing Line
                Commitment	 	 	 	 
	of $4,000,000):	 	$	45,000,000.00	 
	 	 	
                    

                	 
	 	 	 	 	 
	Total
                Commitments:	 	$	45,000,000.00	 

        	
                    

                    
                    J-1

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