Document:

Exhibit
      10.1

     

    JOINDER
      AND AMENDMENT TO COMMERCIAL LOAN AGREEMENT

    AND
      LOAN DOCUMENTS

    

    

    THIS
      JOINDER AND AMENDMENT (this “Joinder and Amendment”), made effective as of the
      ___ day of __________________ 2007 (the “Effective Date”), is by and among TD
      BANKNORTH, N. A. (f/k/a Banknorth, N.A.), a national banking association with
      a
      business address of 5 Commerce Park North, Bedford, New Hampshire 03110 (the
      “Bank”); BRANDPARTNERS GROUP, INC., a Delaware corporation (“BPG”) and
      BRANDPARTNERS RETAIL, INC. (“BPR”), a New Hampshire corporation, each with
      executive offices at 10 Main Street, Rochester, New Hampshire 03839 (BPG and
      BPR
      being jointly, severally, and collectively, the “Borrower”); and GRAFICO
      INCORPORATED (“GI”) and BUILDING PARTNERS, INC. (“BPI”), each a Delaware
      corporation, with executive offices at 10 Main Street, Rochester, New Hampshire
      03839.

    

    RECITALS:

     

    WHEREAS,
      the Bank has extended to Borrower certain credit facilities, including a
      revolving line of credit loan in the maximum principal amount of up to Five
      Million Dollars ($5,000,000.00) (the “Revolving Line of Credit”) and a term loan
      in the original principal amount of Two Million Dollars ($2,000,000.00) (the
      “Term Loan” and collectively with the Revolving Line of Credit, the “Loans”),
      pursuant to a certain Commercial Loan Agreement dated May 5, 2005, as amended
      to
      date (as amended, the “Loan Agreement”), and certain other related documents,
      instruments, agreements, assignments, and certificates executed and/or delivered
      in connection with the Loans, as amended to date (collectively as amended
      referred to as the “Loan Documents”);

    

    WHEREAS,
      the Loans and all other Obligations of the Borrower to the Bank are guaranteed
      by GI pursuant to a certain Guaranty Agreement of GI, dated May 5, 2005, as
      amended to date (as amended, the “Guaranty”);

    

    WHEREAS,
      BPG formed its wholly-owned subsidiary BPI in 2006;

    

    WHEREAS,
      the Borrower has requested, and the Bank has agreed, that BPI become a party
      to
      the Loan Agreement as a guarantor; and

    

    WHEREAS,
      the Borrower would be in default in the performance of certain of its
      obligations under the Loan Agreement in that it has violated its financial
      covenants under Section III of Schedule B of the Loan Agreement for the fiscal
      year ending December 31, 2006 (collectively, the “Covenant Defaults”);
      and

    

    WHEREAS,
      the Borrower, GI, and the Bank have agreed to waive the Covenant Defaults,
      to
      amend the provisions regarding availability under the Revolving Line of Credit
      in certain respects, and to amend the financial covenants under the Loan
      Agreement in certain respects, and, in consideration thereof, to increase the
      interest rates applicable to the Revolving Line of Credit and the Term Loan,
      all
      upon and subject to the terms and conditions of this Amendment, as amended
      hereby. Capitalized terms not otherwise defined herein shall have the meanings
      ascribed to them in the Loan Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and the mutual covenants,
      agreements and promises contained herein, the parties agree as
      follows:

    

    1. Waiver
      of Covenant Defaults.
      The
      Bank hereby acknowledges the Borrower’s Covenant Defaults under the Loan
      Agreement as of the fiscal year ending December 31, 2006. The Bank hereby waives
      the Covenant Defaults by the Borrower solely as of the fiscal year ending
      December 31, 2006. The foregoing waiver applies only to Borrower’s compliance
      with the financial covenants under Section III of Schedule B of the Loan
      Agreement as of the fiscal year ending December 31, 2006. The Bank does not
      waive compliance by the Borrower with any of its other covenants under the
      Loan
      Agreement or Loan Documents or for any other dates or for any other
      periods.

    

    2. Amendment
      of Revolving Line of Credit Maximum Available Amount.
      The
      Loan Agreement shall be and hereby is amended by deleting Section I. A. of
      Loan
      Agreement in its entirety and replacing it with the following new Section I.
      A.:

    

    “A.
      Maximum
      Available Amount.
      The maximum amount available to the BORROWER from time to time under the
      Revolving Line of Credit Loan shall be the lesser
      of (1) Five Million Dollars ($5,000,000.00) or (2) an amount equal to (a)
      Seventy Percent (70%) of Acceptable Accounts (as hereinafter defined)
plus
      (b) the lesser
      of (i) One Million Dollars ($1,000,000.00), or (ii) Fifty Percent (50%) of
      Costs
      in Excess of Billings (as hereafter defined) less
      (c) Two Hundred Fifty Thousand Dollars ($250,000.00). For purposes of this
      Agreement, “Acceptable Accounts” shall mean those of BPG’s and its wholly owned
      subsidiaries’ accounts and accounts receivable as the BANK determines to be
      satisfactory, in the BANK's reasonable discretion and “Costs in Excess of
      Billings” shall mean the expected revenue to be generated pursuant to contracts
      for services performed or goods sold which have not yet been billed but would
      otherwise be deemed Acceptable Accounts once billed (“Revenue in Progress” or
“RIP”) as the BANK determines to be satisfactory, in the BANK’s reasonable
      discretion. Subject to the foregoing, “Acceptable Accounts” and “Costs in Excess
      of Billings” shall not include any amounts subject to retainage or service
      charges or sales or other taxes and shall be limited to accounts and/or RIP:
      (i) which arise in the ordinary course of BPG’s and its wholly owned
      subsidiaries’ business from BPG’s and its wholly owned subsidiaries’ performance
      of services or sale of goods which have been performed or sold; (ii) which
      are less than one hundred twenty (120) days old from date of invoice (or date
      of
      performance of services or goods delivered with respect to RIP and Costs in
      Excess of Billings) (in the event that fifty percent (50%) of the accounts
      receivable from a particular account debtor are sixty (60) days or more old
      from
      invoice date, all of the accounts receivable from that particular account debtor
      shall be excluded from Acceptable Accounts and all of RIP with respect to that
      particular account debtor shall be excluded from Costs in Excess of Billings);
      

     

     

    
      
        
        

      

      
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    (iii) which
      are not evidenced by a promissory note or other instrument; (iv) which are
      payable in U.S. Dollars; (v) which are owed by any customer whose principal
      place of business is within the United States; (vi) which are owed by any
      corporation or other entity other than one which is related to BORROWER, or
      is
      of common ownership with BORROWER, or could be treated as a member of the same
      controlled group of corporations of which BORROWER is a member; (vii) which
      constitute valid, binding, and enforceable obligations of customers which are
      not subject to any claim, counterclaim, set off, credit, allowance, or
      chargeback; (viii) as to which BPG and its wholly owned subsidiaries has
      received no notice and has no knowledge as to whether the customer (or any
      guarantor or endorser thereof) is bankrupt or insolvent, or any other facts
      which make the collection of the account or RIP doubtful; (ix) which are
      not owed by any person employed by, or salesman of, BPG and its wholly owned
      subsidiaries; (x) which do not arise out of the sale by BPG and its wholly
      owned subsidiaries of goods consigned or delivered to BPG and its wholly owned
      subsidiaries on “sell or return” terms (whether or not compliance has been made
      with Section 2-326 of the UCC); and (xi) which do not arise out of any sale
      made on a “bill and hold”, dating, or delayed shipping basis. Notwithstanding
      the foregoing, Acceptable Accounts shall also include the accounts listed on
      Schedule
      A
      annexed hereto notwithstanding that said accounts may have billing that exceeds
      one hundred twenty (120) days from the date of invoice or have in excess of
      fifty (50%) percent of the accounts receivable from a particular account sixty
      (60) days or more old from invoice date provided that any such account shall
      still be excluded if it has billings that exceed one hundred eighty (180) days
      from the date of invoice. Accounts payable by BPG and its wholly owned
      subsidiaries to any customer shall be netted against accounts and RIP due from
      such customer. The BORROWER agrees that the BANK may, at any time or times,
      lower the stated percentage of Acceptable Accounts or Costs in Excess of
      Billings for purposes of determining the maximum available amount under the
      Revolving Line of Credit Loan as the BANK may determine in a commercially
      reasonable manner to be appropriate based upon any material deterioration of
      the
      BORROWER's condition, financial or otherwise, and/or of the condition or quality
      of the Collateral. The acceptance of or characterization by the BANK of any
      account as an Acceptable Account of any RIP includable in Costs in Excess of
      Billings shall not be deemed a determination by the Bank as to their respective
      actual values nor in any way obligate BANK to accept any account or RIP arising
      subsequently from such customer to be, or to continue to deem such account
      to
      be, an Acceptable Account, or such RIP includable in Costs in Excess of
      Billings. All accounts and RIP of BPG and its wholly owned subsidiaries, whether
      or not Acceptable Accounts or Costs in Excess of Billings, as the case may
      be,
      shall constitute Collateral under the Security Agreement. On a monthly basis,
      within fifteen (15) days of each month end, BORROWER shall deliver a certificate
      to BANK which sets forth a calculation of the maximum amount available under
      clause (2) of this Section I. A and which shall be accompanied by a
      reconciliation of accounts receivable and RIP and aging reports therefor, all
      in
      a form and detail reasonably acceptable to the BANK and prepared on a consistent
      basis by the BORROWER.”

     

    
      
        
        

      

      
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    3. Amendment
      of Interest Rates.
      The
      Loan Agreement shall be and hereby is further amended as follows:

    

    (a) The
      definition of LIBOR Rate in Section III. A. of the Loan Agreement shall be
      and
      hereby is deleted in its entirety and replaced with the following:

    

    “LIBOR
      Rate” means for the Revolving Line of Credit Loan a fixed per annum rate of
      interest equal to LIBOR plus
      300 basis points (3.0%) and for the Term Loan a fixed per annum rate of interest
      equal to LIBOR plus
      275 basis points (2.75%).”

    

    (b) Section
      III. B. of the Loan Agreement shall be and hereby is deleted in its entirety
      and
      replaced with the following:

    

    “B.
      Prime
      Rate.
      The principal balance outstanding from time to time, or portion thereof, under
      the Revolving Line of Credit Loan which is not subject to the LIBOR Rate shall
      bear interest at a variable annual rate equal to the Prime Rate
plus
      50 basis points (0.50%). The principal balance outstanding from time to time
      under the Term Loan which is not subject to the LIBOR Rate shall bear interest
      at a variable annual rate equal to the Prime Rate plus
      25 basis points (0.25%).”

    

    (c) Section
      III. E. of the Loan Agreement shall be and hereby is deleted in its entirety
      and
      replaced with the following:

    

    “E.
      Default
      Interest Rate.
      During the continuance of an Event of Default, after maturity, or after judgment
      has been rendered on any of the Obligations, BORROWER’s right to select the
      LIBOR Rate shall cease and the unpaid principal of each Loan shall, at the
      option of the BANK, bear interest at the Prime Rate plus five and one-quarter
      percent (5.25%) per annum.”

    

    4. Amendment
      of Financial Covenants.
      The
      Loan Agreement shall be and hereby is further amended as follows:

     

    
      
        
        

      

      
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    (a)
       Paragraph
      A. of Section III of Schedule B of the Loan Agreement shall be and hereby is
      deleted in its entirety and replaced with the following:

    

    “A.
      BPG and its wholly owned subsidiaries, including GUARANTOR, on a consolidated
      basis, shall have a minimum Tangible Capital Base (as hereinafter defined)
      of
      not less than One Million Ninety-Three Thousand Two Hundred Ninety-One Dollars
      ($1,093,291) as of December31, 2006, and as of the end of each of BORROWER’s
      fiscal quarters thereafter, which minimum Tangible Capital Base shall increase
      on a cumulative basis as of the end of each fiscal quarter by an amount equal
      to
      fifty percent (50%) of the Net Profits (as hereinafter defined) for such fiscal
      quarter. “Tangible Capital Base”
      means the value of BPG’s
      and its wholly owned subsidiaries’,
      including GUARANTOR’s, total assets on a consolidated basis (but excluding
      goodwill, patents, trademarks, trade names, organization expense, unamortized
      debt discount and expense, capitalized or deferred research and development
      costs, deferred marketing expenses, and other like intangibles) less total
      liabilities, including but not limited to accrued and deferred income taxes,
      but
      excluding Permitted Subordinated Debt,
      all as determined from the BORROWER's and GUARANTOR’s financial statements
      delivered to the BANK in accordance with the covenants of the BORROWER herein
      above (the “Financial Statements”). “Net Profits” means net profits of BPG and
      its wholly owned subsidiaries, including GUARANTOR, on a consolidated basis
      as
      determined on a consolidated basis in accordance with generally accepted
      accounting principles from the Financial Statements.”

    

    (b) Paragraph
      B. of Section III of Schedule B of the Loan Agreement shall be and hereby is
      deleted in its entirety and replaced with the following:

    

    “B.
      BPG
      and its wholly owned subsidiaries, including
      GUARANTOR, on a consolidated basis, shall maintain a Fixed Charge Coverage
      Ratio
      (as hereinafter defined) of not less than 1.1:1
      as of the end of each of the fiscal quarters ending March 31, 2007 and June
      30,
      2007 and not less than 1.2:1 as of the end of each of BORROWER’s fiscal quarter
      thereafter.
      “Fixed Charge Coverage Ratio” means the ratio of (a) EBITDA (as hereinafter
      defined), minus the sum of taxes, dividends, and non-financed capital
      expenditures paid in cash, for the applicable period (as determined in
      accordance with the provisions set forth below) ending on the date of
      determination, to (b) the sum of interest expense, lease expense, rent expense,
      required scheduled principal payments on long term debt and the current portion
      of capitalized lease obligations all for the twelve (12) month period ending
      on
      the date of determination. “EBITDA” means BPG’s
      and its wholly owned subsidiaries’,
      including GUARANTOR’s, net income (not inclusive of non-recurring expenses) on a
      consolidated basis, less income or plus loss from discontinued operations and
      extraordinary items, plus income taxes, plus interest expense, plus
      depreciation, depletion, amortization and other non-cash charges, for the period
      determined in accordance with the following: (i) for the
      fiscal quarter ending March 31, 2007, EBITDA shall be determined by annualizing
      the results of operations for such fiscal quarter; (ii) for the fiscal quarter
      ending June 30, 2007, EBITDA shall be determined by annualizing the results
      of
      operations for such fiscal quarter and for the fiscal quarter ending March
      31,
      2007; (iii) for the fiscal quarter ending September 30, 2007, EBITDA shall
      be
      determined by annualizing the results of operations for such fiscal quarter
      and
      for the fiscal quarters ending March 31, 2007 and June 30, 2007, and (iv) for
      the fiscal quarter ending December 31, 2007 and for each fiscal quarter
      thereafter, EBITDA shall be determined based upon actual results of operations
      for the four (4) fiscal quarter period then ending.”

     

    
      
        
        

      

      
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    (c) Paragraph
      C. of Section III of Schedule B of the Loan Agreement shall be and hereby is
      deleted in its entirety and replaced with the following:

    

    “C.
      BPG
      and its wholly owned subsidiaries,
      including GUARANTOR, on a consolidated basis, shall maintain a ratio of Funded
      Debt (as hereinafter defined) to EBITDA (as defined and determined under
      Paragraph B of this Section III above) not exceeding 3.0:1 as
      of March 31, 2007, and as of the end of each of BORROWER’s fiscal quarters
      thereafter.
      “Funded Debt” means all of BPG’s
      and its wholly owned subsidiaries’, including
      GUARANTOR’s, outstanding liabilities for borrowed money and other
      interest-bearing liabilities on a consolidated basis, including current and
      long-term debt (including the Loans and Permitted Subordinated
      Debt).”

    

    5. Permitted
      Subordinated Debt Defaults.
      Borrower represents and warrants to the Bank that, as of the Effective Date,
      the
      holder[s] of the Permitted Subordinated Debt has waived any and all defaults
      existing under the Permitted Subordinated Debt arising as a result of the
      Covenant Defaults under the Loan Agreement. Borrower shall provide written
      evidence of the same to Bank.

    

    6. Reaffirmation
      of Representations and Warranties.
      Borrower and GI hereby confirm, reassert, and restate all of their respective
      representations and warranties under the Loan Agreement and the Loan Documents
      as of the date hereof.

    

    7. Reaffirmation
      of Affirmative Covenants.
      Borrower and GI hereby confirm, reassert, and restate all of their respective
      affirmative covenants as set forth in the Loan Agreement and the Loan Documents
      as of the date hereof.

    

    8. Reaffirmation
      of Negative Covenants.
      Borrower and GI hereby confirm, reassert, and restate all of their respective
      negative covenants as set forth in the Loan Agreement and the Loan Documents
      as
      of the date hereof.

    

    
      
        
        

      

      
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    9. Joinder
      to Loan Agreement.

    

    (a) The
      Loan
      Agreement is hereby amended to join and include BPI, jointly and severally,
      as a
      guarantor thereunder, such that each reference to “GUARANTOR” in the Loan
      Agreement shall hereafter mean and include each of the current guarantors and
      BPI, jointly and severally. Borrowers shall take such actions as reasonably
      necessary to enable BPI to become a guarantor under the Loan Agreement. BPI
      hereby joins and states all the representations and warranties and affirmative
      and negative covenants of the GUARANTOR under the Loan Agreement as of the
      date
      hereof.

    

    (b) Upon
      the
      execution of this Joinder and Amendment, BPI shall execute and deliver to bank
      (i) a certain Guaranty Agreement, (ii) a certain Security Agreement, (iii)
      a
      certain Stock Pledge and Security Agreement, and (iv) such other related loan
      documents reasonably requested by the Bank, all in a form acceptable to the
      Bank.

    

    10.
       No
      Other Modifications.
      Except
      as specifically modified or amended herein or hereby, all of the terms and
      conditions of each of the Loans, the Loan Agreement, and the Loan Documents,
      remain otherwise unchanged, and in full force and effect, all of which are
      hereby confirmed and ratified by the parties hereto.

    

    11. Bank
      Fee.
      For and
      in consideration of the Bank entering into this Amendment, the Borrower shall
      pay to the Bank a fee in the amount of Fifteen Thousand Dollars ($15,000.00),
      due and payable in full on the Effective Date. Borrower consents to Bank
      charging Borrower's Revolving Line of Credit loan account for any such
      fee.

    

    12.
       Costs
      and Expenses of Bank.
      The
      Borrower agrees to reimburse the Bank for all reasonable costs, expenses, and
      fees, including attorneys' fees, associated with the documentation of this
      Amendment. Borrower consents to Bank charging Borrower's Revolving Line of
      Credit loan account for any such costs, expenses and fees.

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties have executed and delivered this Amendment
      effective as of the date first set forth above.

     

    
      
        	WITNESSES: 	 	BANK:
	 	 	 
	 	 	BANKNORTH, N.A.
	 	 	 
	 	 	 
	
                ______________________________________

              	
                 

              	By:
                ____________________________________
	 	 	      John Mercier,
                Senior Vice President
	 	 	 
	 	 	 

                BORROWER:

              
	 	 	 
	 	 	BRANDPARTNERS GROUP, INC
	 	 	 
	 	 	 
	______________________________________ 	 	By:
                ____________________________________
	 	 	     Signature and
                Title/Duly Authorized
	 	 	 
	 	 	BRANDPARTNERS RETAIL, INC.
	 	 	 
	 	 	 
	______________________________________ 	 	By:
                ____________________________________
	 	 	     Signature
                and Title/Duly Authorized
	 	 	 
	 	 	GUARANTOR:
	 	 	 
	 	 	GRAFICO
                INCORPORATED
	 	 	 
	 	 	 
	______________________________________ 	 	By:
                ____________________________________
	 	 	       Signature and Title/Duly
                Authorized
	 	 	 
	 	 	BUILDING
                PARTNERS, INC.
	 	 	 
	 	 	 
	______________________________________ 	 	By:
                ____________________________________
	 	 	      
                Signature and Title/Duly Authorized
	 	 	 

      

    

     

    
 

    
      
        
        

      

      
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    SCHEDULE
      A

    

    

    
      	1.  	
              Bank
                of America

            

    

    
      	2.  	
              Sun
                Trust Bank

            

    

    
      	3.  	
              National
                City

            

    

    
      	4.  	
              Comerica

            

    

    
      	5.  	
              Sovereign

            

    

    
      	6.  	
              Am
                South

            

    

    
      	7.  	
              Regions
                Bank

            

    

    
      	8.  	
              M&T
                Bank

            

    

    

    As
      well
      as any other account that is deemed credit worthy by BankExhibit
      10.2

    IRREVOCABLE
      PROXY

    

    The
      undersigned, the holder of ___ shares of Common Stock, ____ par value per share
      of BUILDING PARTNERS, INC. (the “Company”), does hereby irrevocably constitute
      and appoint
      TD BANKNORTH, N.A.
      (“Bank”)
      its lawful proxy with full power to vote and execute consents, waivers and
      releases and to execute any of its other rights with respect to said shares
      of
      Common Stock of the Company which are owned by the undersigned and which are
      subject to a Stock Pledge and Security Agreement, dated as of _______________,
      2007 (the “Pledge Agreement”), between the Bank and the undersigned, subject to
      the terms and conditions set forth in the Pledge Agreement; including, without
      limitation, that such power shall only be exercised by the Bank upon and during
      the continuance of an Event of Default (as defined in the Pledge
      Agreement).

    The
      appointment of the Bank as proxy pursuant to this writing shall be deemed
      coupled with an interest and irrevocable. This Irrevocable Proxy shall be valid
      and continue in full force and effect with respect to any and all shares of
      Common Stock covered by the terms of the Pledge Agreement until and unless
      the
      Pledge Agreement shall be terminated by its terms. This Irrevocable Proxy
      revokes any other proxy granted by the undersigned at any time with respect
      to
      said shares of Common Stock. 

     

     

    
      	WITNESS:	BRANDPARTNERS
              GROUP, INC.
	 	 
	___________________________ 	By:
              _______________________________
	 	
                    
                Signature & Title/Duly Authorized

            
	 	 

    

     

    Dated:
      ___________________, 2007

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