Document:

exv10w1

 

Exhibit 10.1

NINTH AMENDMENT TO CREDIT AGREEMENT

     NINTH
AMENDMENT, dated as of March 25, 2005, to the Credit Agreement referred to below
(this “Amendment”) among BUTLER INTERNATIONAL, INC., a Maryland corporation
(“Holdings”), BUTLER SERVICE GROUP, INC., a New Jersey corporation, as Borrower (the “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
(“Agent”) and the other Lenders signatory hereto from time to time.

W I T N E S S E T H:

     WHEREAS, Borrower, the other Credit Parties signatory thereto, Agent, and Lenders signatory
thereto are parties to that certain Second Amended and Restated Credit Agreement, dated as of
September 28, 2001 (including all annexes, exhibits and schedules thereto, and as amended, restated,
supplemented or otherwise modified from time to time, the
“Credit Agreement”); and

     WHEREAS, Agent and Lenders have agreed to amend the Credit Agreement in the manner, and on the
terms and conditions, provided for herein.

     NOW THEREFORE, in consideration of the premises and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement or Annex A thereto.

     2. Amendment
to Section 1.1(b)(i)(2) of Credit Agreement. Section 1.1(b)(i)(2)
of the Credit Agreement is hereby amended and restated as of the Amendment Effective Date (as
defined below) in its entirety to read as follows:

     “(2) Borrower shall repay the principal amount of the Term Loan A in
twelve (12) consecutive quarterly installments on the first day of
January, April, July and October of each year, commencing
December 1, 2001, each installment (other than the final installment) in the amount of
$1,000,000, provided, however, that commencing with the principal
installment payment due October 1, 2005 and thereafter, each such
installment (other than the final installment) shall be in an amount
equal to $2,000,000 and the final installment due on the Commitment
Termination Date shall be in an amount equal to the remaining principal
balance of the Term A Loan.”

 

 

     3. Amendment to Section 1.3(b)(ii) of Credit Agreement. Section 1.3(b)(ii) of the Credit
Agreement is hereby amended as of the Amendment Effective Date to include the following additional
proviso immediately following the first sentence thereof:

“;
provided, further, that in the event that Butler of New Jersey Realty
Corp. sells the Montvale Property with the consent of the Agent and Requisite Lenders (which consent has not been obtained nor
granted), Borrower shall prepay the Term Loans in an amount equal to fifty
percent (50%) of such proceeds, net of the amounts described in clauses
(A) through (D) above, up to an aggregate amount not in excess of
$3,000,000.”

     4. Amendment to Section 3 of Credit Agreement. Section 3 of the Credit Agreement
is hereby amended as of the Amendment Effective Date by adding the
following new Section 3.25:

     “3.25 Issuance of Holdings Shares. Upon the date (each, an
“Issuance Date”) of any issuance of shares of common stock by Holdings to
CFE as contemplated under Sections 5.14 and 5.15 (the
“Holdings Shares”), Holdings represents and warrants to CFE, to Agent and
to GE Capital as of the applicable Issuance Date:

     (i) all of the Holdings Shares have been duly authorized and validly
issued; are outstanding, fully paid and non-assessable; and are free and
clear of all liens, charges, pledges, security interests, claims and
encumbrances;

     (ii) all of the Holdings Shares shall be delivered to UBS Paine
Webber by Holdings’ transfer agent for the account and sole benefit of
CFE;

     (iii) none of the Holdings Shares have been issued in
violation of any federal or state securities laws to which such
issuance may be subject; and

     (iv) the issuance of the Holdings Shares to CFE will
not require registration under the Securities Act of 1933, as amended,
or pursuant to any applicable state securities laws in effect on the
date hereof.”

     5. Amendment to Credit Agreement. The Credit Agreement is hereby further amended as of the
Amendment Effective Date by adding the following new Section 3A immediately following Section 3
thereof:

     “Section 3A. REPRESENTATIONS AND WARRANTIES OF CFE.

 

 

     CFE hereby makes the following representations and
warranties to Holdings as of each Issuance Date:

     (i) CFE understands that the Holdings Shares may not
be sold, transferred or otherwise disposed of except pursuant to an
effective registration statement under the Securities Act, and applicable state securities laws or pursuant to an exemption
therefrom; and

     (ii) CFE (A) is an “Accredited Investor” as defined in Rule 501(a)
promulgated under the Securities Act; (B) is an investor
experienced in the evaluation of businesses similar to the business of
Holdings; (C) is able to fend for itself in the transaction contemplated
by this Agreement; (D) has such knowledge and experience in financial,
business and investment matters as to be capable of evaluating the merits
and risks of an investment in the Holdings Shares; (E) has the
ability to bear the economic risks of such investment; (F) was
not organized or reorganized for the specific purpose of acquiring the
Holdings Shares; and (G) has been afforded, prior to the date
hereof, the opportunity to ask questions of, and to receive answers from,
Holdings and to obtain any additional information, to the extent that
Holdings has such information or could have acquired it without
unreasonable effort or expense, all as necessary for CFE to make an
informed investment decision with respect to the receipt of the Holdings
Shares.”

     6. Amendment to Section 5 of Credit Agreement. Section 5 of the Credit
Agreement is hereby amended as of the Amendment Effective Date by adding the following new
Sections 5.14 and 5.15:

     “5.14 Subordinated Debt. The Credit Parties shall use
best efforts to raise Subordinated Debt in an amount equal to at least
$7,000,000 on or prior to September 30, 2005, which such
Subordinated Debt shall be on terms and conditions
satisfactory to Agent and Lenders in their sole discretion;
provided,
however, in the event the Credit Parties do not raise such Subordinated
Debt by such date, Holdings agrees to issue to GE Capital, in the name of
GE Capital CFE, Inc., a Delaware corporation (“CFE”), fifty thousand shares (50,000) of common stock of Holdings on such date.”

     “5.15
Issuance of Holdings’ Common Stock. Holdings agrees to issue to
GE Capital, in the name of CFE, (a) twenty-five thousand shares (25,000)
of common stock on September 30, 2005, (c) thirty-five thousand shares
(35,000) of common stock on

 

 

December 30, 2005, and (d) forty thousand shares (40,000) of common
stock on February 28, 2006.”

     7. Amendment to Annex A of the Credit Agreement. Annex A of the Credit
Agreement is hereby amended as of the Amendment Effective Date by:

          (a) amending the definition of “Commitment Termination Date” set forth in such Annex A by
deleting the text “October 31, 2005” in clause (a) of such definition and substituting in lieu
thereof the text “April 1, 2006”;

          (b) amending the definition of “Mortgages” set forth in such Annex A by deleting such
definition in its entirety and substituting in lieu thereof the following text:

     “‘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), all in form and substance
reasonably satisfactory to Agent.”

          (c) amending the definition of “Permitted Encumbrances” set forth
in such Annex A by deleting the word “and” immediately following clause (j)
of such definition and by adding the following text immediately following clause (j) of
such definition:

“and (k) the mortgage on the Montvale Property evidenced by that certain Promissory
Note and Mortgage and Security Agreement dated September 30, 2002, and the related
documents by and between Butler of New Jersey Realty Corp. and Regency Savings
Bank (as successor in interest to GMAC Commercial Mortgage Corp.)”

          (d) adding the following new definitions to Annex A in appropriate alphabetical order:

     “‘CFE’ shall have the meaning ascribed to it in Section 5.14.”

     “‘Holdings
Shares’ shall have the meaning ascribed to it in
Section 3.25.”

     “‘Issuance
Date’ shall have the meaning ascribed to it in
Section 3.25.”

     “‘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; provided,
however, for purposes of calculating the Leverage Ratio hereunder,
Funded Debt shall exclude all Indebtedness other than the
Obligations.”

     8. Amendment to Section 6.14 of the Credit Agreement. Section 6.14 of the Credit Agreement is
hereby amended as of the Amendment Effective Date by deleting
clause (e) of such Section 6.14 in
its entirety and substituting in lieu thereof the following clause
(e):

“(e) dividends or distributions made by Holdings consisting solely of
common stock.”

     9.
Amendment to Annex G of Credit Agreement. Annex G of the Credit Agreement is
hereby amended as of the Amendment Effective Date by amending and
restating clause (a)
(Maximum Capital Expenditures) in its entirety to read as follows:

     “(a) Maximum Capital Expenditures. Borrower and its Subsidiaries on
a consolidated basis shall not make Capital Expenditures that exceed (i)
$6,000,000 in the aggregate in any Fiscal Year ending on or prior to
December 31, 2004, and (ii) $3,000,000 in the aggregate in the Fiscal
Year ending December 31, 2005.”

     10. Amendment to Annex G of Credit Agreement. Annex G of the
Credit Agreement is hereby amended as of the Amendment Effective Date by amending and restating
clause (d) (Minimum Interest Coverage Ratio) in its entirety to read as follows:

     “(d) Minimum Interest Coverage Ratio. Borrower and its Subsidiaries
on a consolidated basis shall have at the end of each period set forth
below, an Interest Coverage Ratio of not less than the following:

     l.00
for the Fiscal Quarter ending December 31, 2004;

     1.50 for the Fiscal Quarter ending March 31, 2005;

     2.50 for the Fiscal Quarter ending June 30, 2005;

     3.00 for the Fiscal Quarter ending September 30, 2005;

     3.20 for the Fiscal Quarter ending December 31, 2005 and each

          Fiscal Quarter ending thereafter.”

     11. Amendment to Annex G of Credit Agreement. Annex G of
the Credit Agreement is hereby amended as of the Amendment Effective Date by adding the following
new clause (e) immediately following clause (d) thereof:

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

 

 

     6.00 for the Fiscal Quarter ending March 31, 2005;

     5.70 for the Fiscal Quarter ending June 30, 2005;

     5.30 for the Fiscal Quarter ending September 30, 2005;

     4.35 for the Fiscal Quarter ending December 31, 2005 and each

          Fiscal Quarter ending thereafter.”

     12. Post-Amendment
Effective Date Covenant. Subject to the consent and authorization of
Regency Savings Bank, within thirty (30) days of the Amendment Effective Date, Borrower agrees that
it will cause Butler of New Jersey Realty Corp., a New Jersey corporation and a wholly owned
Subsidiary of Holdings (“Butler NJ Realty”), to deliver to Agent the following documents, each in
form and substance reasonably satisfactory to Agent:

          (a) a joinder agreement pursuant to which Butler NJ Realty agrees to guarantee the Obligations
of Borrower and the other Credit Parties under the Loan Documents and become a party to the Loan
Documents, duly executed and delivered by an authorized officer of Butler NJ Realty;

          (b) a
pledge amendment, substantially in the form of Schedule II to the Holdings
Pledge Agreement, pursuant to which Holdings pledges one hundred percent (100%) of
the issued and outstanding Stock of Butler NJ Realty (the “Butler NJ
Stock”) to Agent, in each case duly executed and delivered by an authorized officer of Butler NJ
Realty;

          (c) an original certificate representing the Butler NJ Stock, together with appropriate
instruments of transfer duly executed by Holdings in blank, pledged by Holdings pursuant to the
terms of the Holdings Pledge Agreement, as amended pursuant to the
pledge amendment referred to in
clause (b) above;

          (d) a
mortgage or deed of trust granting Agent a second priority Lien on the
Montvale Property, subject only to the Lien in favor of Regency Savings Bank, together with
mortgage title insurance, owner’s insurance, real property survey, local counsel opinion, and, if
required by Agent, supplemental casualty insurance and flood insurance, and such other
documents, instruments or agreements reasonably requested by Agent (including, without limitation,
a consent of Regency Savings Bank to the granting of such second priority mortgage to Agent);

          (e) copies of Butler NJ Realty’s (i) charter documents and all amendments thereto and (ii)
good standing certificates or the foreign equivalent 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 and certified by the applicable
authorized Governmental Authority;

          (f) copies of Butler NJ Realty’s (i) bylaws and all amendments thereto and (ii)
resolutions of Butler NJ Realty’s board of directors and, to the extent required under applicable
law, stockholders, approving and authorizing the execution, delivery and performance of the Loan
Documents to which Butler NJ Realty is, or will be, a party and the
transactions to be consummated
in connection therewith, each certified by an authorized officer of
Butler NJ Realty as being in
full force and effect without any modification or amendment;

 

 

          (g) a signature and incumbency certificate of the officers of Butler NJ Realty, certified by
Butler NJ Realty’s corporate secretary or an assistant secretary as being true,
accurate, correct and complete in all respects;

          (h) a legal opinion of counsel acceptable to Agent which shall
provide, inter alia, (i) that the Loan Documents have been duly authorized, executed and delivered by, and
are enforceable against, Butler NJ Realty, (ii) that Agent shall have a perfected
Lien on the Collateral granted under the Loan Documents to which Butler NJ Realty shall
join under the joinder agreement referred to in clause (a) above, and (iii) such other opinions as
Agent may reasonably request; and

          (i) such other certificates, documents and agreements as Agent may, in its reasonable
discretion, request.

     13. Representations and Warranties. To induce Agent and Lenders to enter into this Amendment,
each of Holdings and Borrower makes the following representations and warranties to Agent and
Lenders:

          (a) The execution, delivery and performance of this Amendment and the performance of the
Credit Agreement, as amended by this Amendment (the “Amended Credit Agreement”) by
Borrower and the other Credit Parties: (a) is within such Person’s organizational power; (b)
has been duly authorized by all necessary or proper corporate and
shareholder action; (c) does not contravene any provision of such Person’s charter or bylaws or
equivalent organizational documents; (d) does not violate any law or regulation, or any order or
decree of any court or Governmental Authority; (e) does 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) does 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 pursuant to the Loan Documents; and (g)
does not require the consent or approval of any Governmental Authority or any other Person.

          (b) This Amendment has been duly executed and delivered by or on behalf of each of Holdings,
Borrower and the other Credit Parties.

          (c) Each of this Amendment and the Amended Credit Agreement constitutes a legal, valid and
binding obligation of Borrower and each of the other Credit Parties party thereto, enforceable
against each in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

          (d) No Default or Event of Default has occurred and is continuing after giving effect to this
Amendment.

          (e) No action, claim, lawsuit, demand, investigation or proceeding is now pending or, to the
knowledge of any Credit Party, threatened against any Credit Party, at

 

 

law, in equity or
otherwise, before any court, board, commission, agency or instrumentality of any Governmental
Authority, or before any arbitrator or panel of arbitrators, (i) which challenges Borrower’s or, to
the extent applicable, any other Credit Party’s right, power, or competence to enter into this
Amendment or perform any of their respective obligations under this Amendment,
the Amended Credit Agreement or any other Loan Document, or the
validity or enforceability of this Amendment, the Amended Credit
Agreement or any other Loan Document or any action taken under this Amendment, the Amended Credit Agreement or any other Loan Document or (ii)
which if determined adversely, is reasonably likely to have or result in a Material Adverse Effect.
To the knowledge of Holdings or Borrower, there does not exist a state of facts which is reasonably
likely to give rise to such proceedings.

          (f) The representations and warranties of Borrower and the other Credit Parties contained in
the Credit Agreement and each other Loan Document shall be true and correct on and as of the
Amendment Effective Date and the date hereof with the same effect as if such representations and
warranties had been made on and as of such date, except that any such representation or warranty
which is expressly made only as of a specified date need be true only as of such date.

     14. No Other Amendments/Waivers. Except as expressly amended herein, the Credit Agreement and
the other Loan Documents shall be unmodified and shall continue to be in full force and effect in
accordance with their terms. In addition, this Amendment shall not be deemed a waiver of any
term or condition of any Loan Document and shall not
be deemed to prejudice any right or rights which Agent, for itself and Lenders, may now
have or may have in the future under or in connection with any Loan Document or any of the
instruments or agreements referred to therein, as the same may be amended from time to time.

     15. Outstanding
Indebtedness; Waiver of Claims. Each of Borrower and the other Credit Parties
hereby acknowledges and agrees that, as of March 24, 2005, the aggregate outstanding principal
amount of (i) the Revolving Loan is $24,752,285.57, (ii) the Term Loan A is $13,000,000
and (iii) the Term Loan B is $18,000,000, and that such principal amounts are payable pursuant to
the Credit Agreement without defense, offset, withholding, counterclaim or deduction of any kind.
Borrower and each other Credit Party hereby waives, releases, remises and forever discharges Agent,
Lenders and each other Indemnified Person from any and all claims, suits, actions, investigations,
proceedings or demands arising out of or in connection with the Credit Agreement (collectively,
“Claims”), whether based in contract, tort, implied or express warranty, strict liability, criminal
or civil statute or common law of any kind or character, known or unknown, which Borrower or any
other Credit Party ever had, now has or might hereafter have against Agent or Lenders which
relates, directly or indirectly, to any acts or omissions of Agent, Lenders or any other
Indemnified Person on or prior to the date
hereof, provided, that neither Borrower nor any other Credit Party waives any Claim solely to
the extent such Claim relates to the Agent’s or any Lender’s gross negligence or willful
misconduct.

     16. Expenses. Borrower and the other Credit Parties hereby reconfirm their respective
obligations pursuant to Sections 1.9 and 11.3 of the Credit Agreement to pay and reimburse Agent,
for itself and Lenders, for all reasonable costs and expenses (including, without limitation,
reasonable fees of counsel) incurred in connection with the negotiation, preparation,

 

 

execution and delivery of
this Amendment and all other documents and instruments delivered in
connection herewith.

     17.
Effectiveness. This Amendment shall be deemed effective as of
the date hereof (the “Amendment Effective Date”)
only upon satisfaction in full in the judgment of Agent of each of
the following conditions:

          (a) Amendment.
Agent shall have received five (5) original copies of this Amendment duly
executed and delivered by Agent, each Lender, Borrower and the other Credit Parties.

          (b) Payment
of Amendment Fee and Expenses. Borrower shall have paid to Agent (i) a
non-refundable cash amendment fee equal to $50,000 for the pro rata account of the
Lenders, and (ii) all costs, fees and expenses owing in connection with this Amendment and the
other Loan Documents and due to Agent (including, without limitation, reasonable legal fees and
expenses).

          (c) Representations
and Warranties. The representations and warranties of or on behalf of the
Credit Parties in this Amendment shall be true and correct on and as of the Amendment
Effective Date and the date hereof, except that any such representation or warranty which is
expressly made only as of a specified date need be true only as of such date.

     18. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     19. Counterparts. This Amendment may be executed by the parties hereto on any number
of separate counterparts and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

[SIGNATURE PAGES
FOLLOW]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	BUTLER SERVICE GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controller	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL	 	 
	 	 	CORPORATION, as Agent and Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ illegible	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Duly Authorized Signatory	 	 

 

 

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

	 	 	 	 	 	 	 
	 	 	BUTLER INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controller	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BUTLER SERVICES INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controller	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BUTLER TELECOM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controller	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BUTLER SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controller	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BUTLER UTILITY SERVICE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig S. Tireman	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	VP & Controllerexv10w2

 

Exhibit 10.2

TENTH AMENDMENT AND LIMITED WAIVER

TO CREDIT AGREEMENT

     TENTH
AMENDMENT AND LIMITED WAIVER, dated as of July 19, 2005, to the Credit Agreement referred
to below (this “Amendment”) among BUTLER INTERNATIONAL, INC., a Maryland corporation (“Holdings”),
BUTLER SERVICE GROUP, INC., a New Jersey corporation, as Borrower (the “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 (“Agent”)
and the other Lenders signatory hereto from time to time.

W I T N E S S E T H:

     WHEREAS, Borrower, the other Credit Parties signatory thereto, Agent, and Lenders signatory
thereto are parties to that certain Second Amended and Restated Credit Agreement, dated as of
September 28, 2001 (including all annexes, exhibits and schedules thereto, and as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

     WHEREAS, Agent and Lenders have agreed to amend the Credit Agreement and to waive certain
violations of the Credit Agreement in the manner, and on the terms and conditions, provided for
herein.

     NOW THEREFORE, in consideration of the premises and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Credit Agreement or Annex A thereto.

     2. Limited Waiver. Agent and Lenders hereby waive, as of the Amendment Effective Date (as
defined below):

          (a) all Events of Default arising solely from Borrower’s failure to comply with its covenants
to deliver to Agent and Lenders (i) within 45 days after the end of the Fiscal Quarter ended March
30, 2005 the quarterly financial information, certifications, management discussion and analysis
and all other documentation required to be delivered pursuant to Section 4.l(a) and clause (b) of
Annex E of the Credit Agreement in respect of the Fiscal Quarter ended March 30, 2005
(collectively, the “First Quarter Financial Information”), and (ii) within 90 days after the end of
the Fiscal Year ended December 31, 2004 the annual Financial Statements, certifications, statements,
reports, letters and all other documentation required to be delivered pursuant to Section 4.l(a)
and clause (d) of Annex E of the Credit Agreement in respect of the Fiscal Year ended December
31, 2004 (collectively, the “Year End Financial Information”); provided that Borrower shall be
obligated to provide to Agent and Lenders the First Quarter Financial Information by no later than
August 17, 2005 and the Year End Financial Information by no later than July 26, 2005; and

 

 

          (b) any default or Event of Default arising solely from the failure of Butler of New Jersey
Realty Corp., a New Jersey corporation (“Butler NJ Realty”) to comply with its covenants to deliver
to Agent within 30 days of the Amendment Effective Date (as defined in the Ninth Amendment to
Credit Agreement dated as of March 28, 2005 (the “Ninth Amendment”) among the parties hereto) the
agreements, amendments, mortgages and other instruments and documents required to be delivered by
Butler NJ Realty within 30 days of the Amendment Effective Date (as defined in the Ninth Amendment)
pursuant to Section 12 of the Ninth Amendment, but only to the extent such default or Event of
Default arises from the failure to deliver such agreements, amendments, mortgages and other
instruments and documents within such 30-day time period (it also being acknowledged that Butler NJ
Realty has delivered such agreements, amendments, mortgages and other instruments and documents
prior to the date of this Amendment);

Nothing herein shall be deemed a waiver of any term or condition of any Loan Document or agreement,
amendment, mortgage or other instrument or document delivered pursuant to Section 12 of the Ninth
Amendment nor shall be deemed to prejudice any right or rights which Agent or Lenders may now have
or may have in the future under or in connection with any Loan Document or any of the documents,
amendments, instruments or agreements referred to herein and therein, as the same may be amended
from time to time.

     3. Amendment to Section 6 of Credit Agreement. Section 6 of the Credit Agreement is hereby
amended as of the Amendment Effective Date by inserting a new Section 6.20 as follows:

     “6.20. Chief Executive Magazine Indebtedness. No Credit Party shall permit the
aggregate principal amount of all Indebtedness payable by Chief Executive Magazine, Inc.
(or any of its Affiliates, other than any Credit Party) to the Credit Parties (or any of
them) to exceed (a) $10,600,000 at any time during the period from
and including July 19, 2005 to but excluding December 31,
2005, or (b) $10,400,000 at any time during the period
from and including December 31, 2005 to the Termination Date.”

     4. Representations and Warranties. To induce Agent and Lenders to enter into this Amendment,
each of Holdings and Borrower makes the following representations and warranties to Agent and
Lenders:

          (a) The execution, delivery and performance of this Amendment and the performance of the
Credit Agreement, as amended by this Amendment (the “Amended Credit Agreement”) by Borrower and the
other Credit Parties: (a) is within such Person’s organizational power; (b) has been duly
authorized by all necessary or proper corporate and shareholder action; (c) does not contravene any
provision of such Person’s charter or bylaws or equivalent organizational documents; (d) does not
violate any law or regulation, or any order or decree of any court or Governmental Authority; (e)
does 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)
does not result in the creation or imposition of any Lien upon any of the property of

-2-

 

such Person
other than those in favor of Agent pursuant to the Loan Documents; and (g) does not require the
consent or approval of any Governmental Authority or any other Person.

          (b) This Amendment has been duly executed and delivered by or on behalf of each of Holdings,
Borrower and the other Credit Parties.

          (c) Each of this Amendment and the Amended Credit Agreement constitutes a legal, valid and
binding obligation of Borrower and each of the other Credit Parties party thereto, enforceable
against each in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

          (d) No Default or Event of Default has occurred and is continuing after giving effect to this
Amendment.

          (e) No action, claim, lawsuit, demand, investigation or proceeding is now pending or, to the
knowledge of any Credit Party, threatened against any Credit Party, at law, in equity or otherwise,
before any court, board, commission, agency or instrumentality of any Governmental Authority, or
before any arbitrator or panel of arbitrators, (i) which challenges Borrower’s or, to the extent
applicable, any other Credit Party’s right, power, or competence to enter into this Amendment or
perform any of their respective obligations under this Amendment, the Amended Credit Agreement or
any other Loan Document, or the validity or enforceability of this Amendment, the Amended Credit
Agreement or any other Loan Document or any action taken under this Amendment, the Amended Credit
Agreement or any other Loan Document or (ii) which if determined adversely, is reasonably likely to
have or result in a Material Adverse Effect. To the knowledge of Holdings or Borrower, there does
not exist a state of facts which is reasonably likely to give rise to such proceedings.

          (f) The representations and warranties of Borrower and the other Credit Parties contained in
the Credit Agreement and each other Loan Document shall be true and correct on and as of the
Amendment Effective Date and the date hereof with the same effect as if such representations and
warranties had been made on and as of such date, except that any such representation or warranty
which is expressly made only as of a specified date need be true only as of such date.

     5. No Other Amendments/Waivers. Except as expressly amended herein, the Credit Agreement and
the other Loan Documents shall be unmodified and shall continue to be in full force and effect in
accordance with their terms. In addition, this Amendment shall not be deemed a waiver of any term
or condition of any Loan Document and shall not be deemed to prejudice any right or rights which
Agent, for itself and Lenders, may now have or may have in the future under or in connection with
any Loan Document or any of the instruments or agreements referred to therein, as the same may be
amended from time to time.

     6. Outstanding Indebtedness; Waiver of Claims. Each of Borrower and the other Credit Parties
hereby acknowledges and agrees that as of July 19, 2005 the aggregate

-3-

 

outstanding principal amount
of (i) the Revolving Loan is $28,540,757.06, (ii) the Term
Loan A is $11,000,000.00 and (iii) the
Term Loan B is $18,000,000.00 and that such principal amounts are payable pursuant to the Credit
Agreement without defense, offset, withholding, counterclaim or deduction of any kind. Borrower and
each other Credit Party hereby waives, releases, remises and forever discharges Agent, Lenders and
each other Indemnified Person from any and all claims, suits, actions, investigations, proceedings
or demands arising out of or in connection with the Credit Agreement (collectively, “Claims”),
whether based in contract, tort, implied or express warranty, strict liability, criminal or civil
statute or common law of any kind or character, known or unknown, which Borrower or any other
Credit Party ever had, now has or might hereafter have against Agent or Lenders which relates,
directly or indirectly, to any acts or omissions of Agent, Lenders or any other Indemnified Person
on or prior to the date hereof, provided, that neither Borrower nor any other Credit Party waives
any Claim solely to the extent such Claim relates to the Agent’s or any Lender’s gross negligence
or willful misconduct.

     7. Expenses. Borrower and the other Credit Parties hereby reconfirm their respective
obligations pursuant to Sections 1.9 and 11.3 of the Credit Agreement to pay and reimburse Agent,
for itself and Lenders, for all reasonable costs and expenses (including, without limitation,
reasonable fees of counsel) incurred in connection with the negotiation, preparation, execution and
delivery of this Amendment and all other documents and instruments delivered in connection
herewith.

     8. Effectiveness. This Amendment shall be deemed effective as of the date hereof (the
“Amendment Effective Date”) only upon satisfaction in full in the judgment of Agent of each of the
following conditions:

          (a) Amendment. Agent shall have received five (5) original copies of this Amendment duly
executed and delivered by Agent, each Lender, Borrower and the other Credit Parties.

          (b) Representations and Warranties. The representations and warranties of or on behalf of the
Credit Parties in this Amendment shall be true and correct on and as of the Amendment
Effective Date and the date hereof, except that any such representation or warranty which is
expressly made only as of a specified date need be true only as of such date.

     9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

     10. Counterparts. This Amendment may be executed by the parties hereto on any number of
separate counterparts and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

[SIGNATURE PAGES FOLLOW]

-4-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 
	 	 	BUTLER SERVICE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	SR VP and CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent and Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ illegible
	 

	 	 	 	 
	 

	 	 	 	Duly Authorized Signatory

-5-

 

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

	 	 	 	 	 
	 	 	BUTLER INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUTLER SERVICES INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas J. Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUTLER TELECOM, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUTLER SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUTLER UTILITY SERVICE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUTLER OF NEW JERSEY REALTY CORP.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Considine Jr.
	 

	 	 	 	 
	 

	 	Title:
	 	Sr VP & CFO

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