Document:

Unassociated Document

    Exhibit
      10.1

    

    AMENDMENT
      TO COMMERCIAL LOAN AGREEMENT

    AND
      LOAN DOCUMENTS

    

    THIS
      AMENDMENT (this “Amendment”), made effective as of the ____ day of April, 2008
      (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 (GI and BPG being jointly, severally, and
      collectively, the “Guarantor”).

     

    R E C I T A L

     

    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 (as amended, collectively
      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 “GI Guaranty”);

    

    WHEREAS,
      the Loans and all other Obligations of the Borrower to the Bank are guaranteed
      by BPG pursuant to a certain Guaranty Agreement of BPG, dated June 15, 2007,
      as
      amended to date (as amended, the “BPG Guaranty” and together with the GI
      Guaranty, individually and collectively, the “Guaranty”);

    

    WHEREAS,
      the Revolving Line of Credit Maturity Date is May 4, 2008; and

    

    WHEREAS,
      the Bank, at the request of the Borrower and the Guarantor, has agreed to (i)
      extend the Revolving Line of Credit Loan as an on demand facility, and (ii)
      amend the Fixed Charge Coverage Ratio in certain respects, all upon and subject
      to the terms and conditions of this Amendment. 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, and other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties agree as follows:

    

    1. Amendment
      of Revolving Line of Credit.
      As of
      the Effective Date, the Loan Agreement shall be and hereby is amended as
      follows:

    

    (a) Section
      I
      of the Loan Agreement shall be deleted in its entirety and replaced with the
      following new Section I:

    

    “I.
      REVOLVING LINE OF CREDIT LOAN. The Revolving Line of Credit Loan first described
      above (the “Revolving Line of Credit Loan”) made available by the BANK to the
      BORROWER shall be upon and subject to the terms and conditions set forth in
      the
      Revolving Credit Promissory Note of near or even date herewith, evidencing
      such
      Loan (as the same may be hereafter amended, modified, revised, renewed, or
      extended, the “Revolving Line of Credit Note”), the other Loan Documents, and
      this Agreement.

    

    A. Demand
      Obligation; Annual Review Date.
      The Revolving Line of Credit Loan constitutes a demand obligation which shall
      be
      subject to internal review and renewal by the BANK in its sole discretion on
      April 30, 2009, and if renewed, annually thereafter on each April
      30th
      following a renewal (each such date, a “Review Date”). IF THE REVOLVING LINE OF
      CREDIT LOAN IS NOT RENEWED BY THE BANK AS AFORESAID ON ANY REVIEW DATE, THE
      ENTIRE AMOUNT OF OUTSTANDING PRINCIPAL, ACCRUED INTEREST AND OTHER CHARGES
      PAYABLE HEREUNDER AND UNDER THE REVOLVING CREDIT NOTE SHALL BE DUE AND PAYABLE
      BY THE BORROWER ON SUCH DATE ABSENT EARLIER DEMAND. THE BORROWER ACKNOWLEDGES
      AND AGREES THAT THE BANK HAS NO OBLIGATION OR COMMITMENT TO RENEW THE REVOLVING
      LINE OF CREDIT LOAN ON ANY REVIEW DATE.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    B.
      Maximum
      Available Amount.
      The maximum amount available to the BORROWER from time to time under the
      Revolving Line of Credit Loan (the “Maximum Available Amount”) 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). 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);
      (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 C 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.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    C.
      Advances.
      The Revolving Line of Credit Loan shall be disbursed, advanced, readvanced,
      and
      repaid as provided in the Revolving Line of Credit Note and this Agreement.
      Through and until demand of repayment, BORROWER may request advances orally
      or
      in writing from time to time in accordance with such procedures as the BANK
      may
      from time to time specify in an amount such that the aggregate amounts
      outstanding under the Revolving Line of Credit Loan do not exceed the Maximum
      Available Amount. The BANK shall be under no obligation to make any advance
      (automatic or otherwise) at any time or times during which an Event of Default
      has occurred and is existing under this Agreement or the Loan Documents, or
      if
      any condition exists which, if not cured, would with the passage of time or
      the
      giving of notice, or both, constitute such an Event of Default. At the time
      of
      each advance and readvance under the Revolving Line of Credit Loan, the BORROWER
      shall immediately become indebted to the BANK for the amount thereof. Each
      such
      advance or readvance may be credited by the BANK to any deposit account of
      BORROWER with the BANK, be paid to BORROWER, or applied to any Obligation,
      as
      the BANK may in each instance elect. BORROWER authorizes the BANK to charge
      any
      account which BORROWER maintains with the BANK for any payments which BORROWER
      may or must make, or customarily makes, to the BANK from time to
      time.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    D.
      Payment
      of Principal.
      The BORROWER shall make payments of principal under the Revolving Line of Credit
      Loan from time to time in such amounts as is required to maintain the
      outstanding principal thereunder at or below the Maximum Available Amount.
      IN
      ANY EVENT, THE ENTIRE AMOUNT OF OUTSTANDING PRINCIPAL, ACCRUED INTEREST AND
      OTHER CHARGES PAYABLE UNDER THE REVOLVING LINE OF CREDIT LOAN SHALL BE DUE
      AND
      PAYABLE BY THE BORROWER ON DEMAND BY THE BANK.

    

    E.
      Interest
      Rate.
      The principal balance outstanding from time to time under the Revolving Line
      of
      Credit Loan shall bear interest in accordance with the provisions of Section
      III
      below and the Revolving Line of Credit Note. Interest shall be calculated and
      accrue daily on the basis of actual days elapsed over a three hundred sixty
      (360) day banking year.

    

    F.
      Purposes.
      Amounts advanced and readvanced to BORROWER under the Revolving Line of Credit
      Loan shall be used solely for BORROWER’s ordinary working capital
      needs.

    

    G.
      Revolving
      Line of Credit Loan Management.
      Set forth on Schedule A are additional terms and conditions relating to the
      management of the Revolving Line of Credit Loan.”

    

    (b) The
      “Schedule C” attached hereto as Exhibit
      A
      shall be
      included as part of the Loan Agreement and identifies the accounts mentioned
      in
      the new Section I.B of the Loan Agreement set forth above in subsection
      (a).

    

    (c) The
      third
      sentence of Section III.C of the Loan Agreement shall be deleted in its entirety
      and replaced with the following new third sentence:

    

    “BORROWER
      may select the LIBOR Rate for a LIBOR Advance under a Loan for a period of
      one
      (1) month with respect to such LIBOR Advance (but in no event beyond the date
      upon which the entire remaining principal balance of a Loan is payable in full
      or is required to be reduced to zero, if such a date is established respecting
      a
      Loan, or the maturity upon acceleration of a Loan, if such Loan has been
      accelerated by the BANK following the occurrence of an Event of
      Default).”

    

    (d) Section
      I
      of Schedule B of the Loan Agreement shall be amended by deleting the provisions
      with respect to the “Prepayment Fee”. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (e) Contemporaneously
      with the execution and delivery of this Amendment, Borrower shall execute and
      deliver to Bank the Amended and Restated Revolving Line of Credit Promissory
      Note attached hereto as Exhibit
      A.

    

    2. Amendment
      of Financial Covenant.
      As of
      the Effective Date, 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 1.25:1
      as of the end of each of BORROWER’s fiscal quarters, beginning with the fiscal
      quarter ending March 31, 2008.
      “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 cash interest expense, required scheduled
      principal payments on the current portion of capitalized lease obligations,
      and
      the remaining scheduled principal payments due the BANK from the BORROWER
      pursuant to the Term Loan, all for the twelve (12) month period ending on the
      date of determination. “EBITDA” means the BORROWER’s, including their wholly
      owned subsidiaries, 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, 2008, EBITDA shall be determined by annualizing the results of
      operations for such fiscal quarter; (ii) for the fiscal quarter ending June
      30,
      2008, EBITDA shall be determined by annualizing the results of operations for
      such fiscal quarter and for the fiscal quarter ending March 31, 2008; (iii)
      for
      the fiscal quarter ending September 30, 2008, EBITDA shall be determined by
      annualizing the results of operations for such fiscal quarter and for the fiscal
      quarters ending March 31, 2008 and June 30, 2008, and (iv) for the fiscal
      quarter ending December 31, 2008 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.”

    

    3. Permitted
      Subordinated Debt.
      Borrower represents and warrants to Bank that, as of the Effective Date, (a)
      the
      amount of the Permitted Subordinated Debt is at least $6,375,000.00 consisting
      of principal in the amount of $5,000,000.00 and the balance consisting of
      accrued, but unpaid, interest, and (b) the maturity date of the Permitted
      Subordinated Debt is on or after October 22, 2009. Borrower shall provide
      written evidence of the same to Bank. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    4. Reaffirmation
      of Representations and Warranties.
      Borrower and Guarantor 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.

    

    5. Reaffirmation
      of Affirmative Covenants.
      Borrower and Guarantor 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.

    

    6. Reaffirmation
      of Negative Covenants.
      Borrower and Guarantor 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.

    

    7. Further
      Representation and Warranties.
      The
      Borrower and Guarantor, jointly and severally, further represent and warrant
      to
      the Bank as follows:

    (a) The
      execution, delivery and performance of this Amendment and the documents executed
      and delivered pursuant hereto (collectively, the “Amendment Documents”) are
      within the power of the Borrower and Guarantor and are not in contravention
      of
      law, Borrower’s or Guarantor’s Articles or Certificates of Incorporation or
      By-laws, or the terms of any other documents, agreements or undertaking to
      which
      the Borrower or Guarantor are a party or by which the Borrower or Guarantor
      are
      bound. No approval of any person, corporation, governmental body or other entity
      not provided herewith is required as a prerequisite to the execution, delivery
      and performance by Borrower and Guarantor of the Amendment Documents or any
      of
      the documents submitted to the Bank in connection with the Amendment Documents
      to ensure the validity or enforceability thereof.

    

    (b) All
      necessary corporate and other action has been taken by the Borrower and
      Guarantor to authorize the execution, delivery and performance of the Amendment
      Documents which, when executed on behalf of the Borrower and Guarantor, will
      constitute the legally binding obligations of the Borrower and Guarantor,
      enforceable in accordance with their respective terms.

    

    8. 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.

    

    9. 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 Twenty-Five Thousand Dollars
      ($25,000.00), 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.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    10.
       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.

    

    11. Counterparts.
      This
      Amendment may be executed in several counterpart copies. Each such counterpart
      copy shall be deemed an original, but all of such copies together shall
      constitute one and the same agreement.

    

    [SIGNATURE
      PAGES FOLLOW.]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

    

    
      	
              WITNESSES:

            	 	
              BANK:

            
	 	 	
              TD
                BANKNORTH, N.A.

            
	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                John Mercier

            
	 	 	 	
              John
                Mercier, Senior Vice President

            
	 	 	 	 
	 	 	
              BORROWER:

            
	 	 	
              BRANDPARTNERS
                GROUP, INC.

            
	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
              CEO

            
	 	 	 	 
	 	 	
              BRANDPARTNERS
                RETAIL, INC.

            
	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
              CEO

            
	 	 	 	 
	 	 	
              GUARANTOR:

            
	 	 	
              GRAFICO
                INCORPORATED

            
	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
              CEO

            
	 	 	 	 
	 	 	
              BUILDING
                PARTNERS, INC

            
	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
              CEO

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    TD
      BANKNORTH, N.A.

    COMMERCIAL
      LOAN AGREEMENT

    SCHEDULE
      C

    

    
      	 	
              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

            

    

    
      	 	
              9.

            	
              Any
                other account that is deemed credit worthy by the BANK in its sole
                discretion

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    Amended
      and Restated Promissory Note (see attached)

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    AMENDED
      AND RESTATED

    REVOLVING
      LINE OF CREDIT PROMISSORY NOTE

    

    
      	
              $5,000,000.00

            	
              Manchester,
                NH 

            	
              April
                ___, 2008

            

    

    

    FOR
      VALUE
      RECEIVED, BRANDPARTNERS GROUP, INC., a Delaware corporation, and BRANDPARTNERS
      RETAIL, INC., a New Hampshire corporation, each with executive offices at 10
      Main Street, Rochester, New Hampshire 03839 (collectively, the “Borrower”),
      jointly and severally promise to pay to the order of 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”), at such address,
      or such other place or places as the holder hereof may designate in writing
      from
      time to time hereafter, the maximum principal sum of FIVE MILLION DOLLARS
      ($5,000,000.00), or so much thereof as may be advanced or readvanced by the
      Bank
      to the Borrower from time to time hereafter (such amounts defined as the “Debit
      Balance” below), together with interest as provided for hereinbelow, in lawful
      money of the United States of America.

    

    The
      Borrower's “Debit Balance” shall mean the debit balance in an account on the
      books of the Bank, maintained in the form of a ledger card, computer records
      or
      otherwise in accordance with the Bank's customary practice and appropriate
      accounting procedures wherein there shall be recorded the principal amount
      of
      all advances made by the Bank to the Borrower, all principal payments made
      by
      the Borrower to the Bank hereunder, and all other appropriate debits and
      credits.

    

    Under
      the
      Revolving Line of Credit Loan evidenced by this Note (the “Line of Credit”), the
      Bank agrees to lend to the Borrower, and the Borrower may borrow, up to the
      maximum principal sum provided for in this Note, all in accordance with and
      subject to the terms, conditions, and limitations of this Note and the
      Commercial Loan Agreement dated May 5, 2005 entered into by and between the
      Borrower and the Bank, and as said agreement had been, and may be further,
      amended from time to time (collectively, as amended, the “Loan Agreement”). The
      holder of this Note is entitled to all of the benefits and rights of the Bank
      under the Loan Agreement. However, neither this reference to the Loan Agreement
      nor any provision thereof shall impair the absolute and unconditional obligation
      of the Borrower to pay the principal and interest of this Note as herein
      provided. Terms not otherwise defined herein shall have the meanings ascribed
      to
      them in the Loan Agreement.

    

    The
      Borrower shall make requests for advances under this Note as provided in the
      Loan Agreement. The Borrower agrees that the Bank may make all advances under
      this Note by direct deposit to any demand account of the Borrower with the
      Bank
      or in such other manner as may be provided in the Loan Agreement, and that
      all
      such advances shall represent binding obligations of the Borrower.

    

    The
      Borrower acknowledges that this Note is to evidence the Borrower's obligation
      to
      pay its Debit Balance, plus interest and any other applicable charges as
      determined from time to time, and that it shall continue to do so despite the
      occurrence of intervals when no Debit Balance exists because the Borrower has
      paid the previous existing Debit Balance in full.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Interest
      shall be calculated and accrue daily, based on the actual days elapsed over
      a
      three hundred sixty (360) day banking year, on the unpaid principal balance
      outstanding from time to time under this Note. The unpaid principal balance
      outstanding hereunder from time to time shall bear interest at a variable annual
      rate equal to the Prime Rate as defined and determined under the Loan Agreement
      from time to time. Each time the Prime Rate changes, the interest rate hereunder
      shall change contemporaneously with such change in the Prime Rate effective
      as
      of the opening of business on the date of change. The Borrower acknowledges
      that
      the Prime Rate is used for reference purposes only as an index and is not
      necessarily the lowest interest rate charged by the Bank on commercial loans.
      Under and subject to the terms of the Loan Agreement, the Borrower may also
      elect to have a LIBOR based rate apply to all or a portion of the outstanding
      principal under this Note.

    

    The
      Debit
      Balance shall be payable in accordance with the Loan Agreement, provided that
      in
      any event the entire principal balance plus accrued interest thereon and other
      charges related thereto shall be due and payable ON DEMAND. Through and until
      demand, the Borrower shall make payments of interest monthly in arrears
      commencing thirty (30) days from the date hereof (or on any day within 30 days
      of the date hereof agreed to by the Borrower and the Bank to provide for a
      convenient payment date) and continuing on the same date of each month
      thereafter through and until the earlier of the acceleration of this Note upon
      an Event of Default as provided herein below or demand, whereupon all principal,
      accrued and unpaid interest, and any other charges provided for hereunder,
      shall
      be due and payable in full. In the event that the Line of Credit is renewed,
      this Note shall thereafter continue to evidence amounts advanced and due under
      the Line of Credit as renewed.

    

    This
      Note
      is being executed and delivered in accordance with the terms of the Loan
      Agreement and the documents defined therein as the “Loan Documents”. The payment
      and performance of the obligations contained in the Loan Documents are secured
      by the collateral granted to the Bank therein (the “Collateral”) and the
      security granted to the Bank in the Loan Documents.

    

    At
      the
      option of the Bank, this Note shall become immediately due and payable in full,
      without further demand or notice, if any payment of interest or principal is
      not
      made when due or upon the occurrence of any other Event of Default under the
      terms hereof, under the Loan Agreement, or under any of the other Loan
      Documents.

    

    The
      holder may impose upon the Borrower a delinquency charge of five percent (5%)
      of
      the amount of interest not paid on or before the tenth (10th) day after such
      installment is due. The entire principal balance hereof, together with accrued
      interest, shall after the occurrence and during the continuance of an Event
      of
      Default under the Loan Agreement or maturity, whether by demand, acceleration
      or
      otherwise, bear interest at the Prime Rate plus an additional five and
      twenty-five hundredths percent (5.25%) per annum.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Borrower agrees that any other property upon or in which the Borrower has
      granted or hereafter grants the holder a mortgage or security interest, securing
      the payment and performance of any other liability of the Borrower to the
      holder, shall also constitute collateral securing this Note.  Borrower
      hereby grants to Bank, a continuing lien, security interest and right of setoff
      as security for all liabilities and obligations to Bank, whether now existing
      or
      hereafter arising, upon and against all deposits, credits, collateral and
      property, now or hereafter in the possession, custody, safekeeping or control
      of
      Bank or any entity under the control of Bank and its successors and assigns
      or
      in transit to any of them. At any time, without demand or notice (any such
      notice being expressly waived by Borrower), Bank may setoff the same or any
      part
      thereof and apply the same to any liability or obligation of Borrower even
      though unmatured and regardless of the adequacy of any other collateral securing
      the Loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES
      WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOAN, PRIOR TO EXERCISING
      ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY
      OF
      BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

    

    The
      Borrower, and every maker, endorser, or guarantor of this Note, jointly and
      severally, agree to pay on demand all reasonable out-of-pocket costs of
      collection hereof, including reasonable attorneys' fees, whether or not any
      foreclosure or other action is instituted by the holder in its
      discretion.

    

    No
      delay
      or omission on the part of the holder in exercising any right, privilege or
      remedy shall impair such right, privilege or remedy or be construed as a waiver
      thereof or of any other right, privilege or remedy. No waiver of any right,
      privilege or remedy or any amendment to this Note shall be effective unless
      made
      in writing and signed by the holder. Under no circumstances shall an effective
      waiver of any right, privilege or remedy on any one occasion constitute or
      be
      construed as a bar to the exercise of or a waiver of such right, privilege
      or
      remedy on any future occasion.

    

    The
      acceptance by the holder hereof of any payment after any default hereunder
      shall
      not operate to extend the time of payment of any amount then remaining unpaid
      hereunder or constitute a waiver of any rights of the holder hereof under this
      Note.

    

    All
      rights and remedies of the holder, whether granted herein or otherwise, shall
      be
      cumulative and may be exercised singularly or concurrently, and the holder
      shall
      have, in addition to all other rights and remedies, the rights and remedies
      of a
      secured party under the Uniform Commercial Code of New Hampshire. The holder
      shall have no duty as to the collection or protection of the Collateral or
      of
      any income thereon, or as to the preservation of any rights pertaining thereto
      beyond the safe custody thereof. Surrender of this Note, upon payment or
      otherwise, shall not affect the right of the holder to retain the Collateral
      as
      security for the payment and performance of any other liability of the Borrower
      to the holder in accordance with the provisions of the Loan
      Documents.

    

    The
      Borrower, and every maker, endorser, or guarantor of this Note, hereby jointly
      waive, to the fullest extent permitted by law, presentment, notice, protest
      and
      all other demands and notices and assents (1) to any extension of the time
      of
      payment or any other indulgence, (2) to any substitution, exchange or release
      of
      Collateral, and (3) to the release of any other person primarily or secondarily
      liable for the obligations evidenced hereby.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Note
      and the provisions hereof shall be binding upon the Borrower and the Borrower's
      heirs, administrators, executors, successors, legal representatives and assigns
      and shall inure to the benefit of the holder, the holder's heirs,
      administrators, executors, successors, legal representatives and
      assigns.

    

    The
      word
“holder” as used herein shall mean the payee or endorsee of this Note who is in
      possession of it, or the bearer, if this Note is at the time payable to the
      bearer.

    

    Upon
      receipt of an affidavit of an officer of Bank as to the loss, theft, destruction
      or mutilation of this Note, and, in the case of any such loss, theft,
      destruction or mutilation, upon cancellation of this Note, Borrower will issue,
      in lieu hereof, a replacement note in the same principal amount thereof and
      otherwise of like tenor.

    

    This
      Note
      may not be amended, changed or modified in any respect except by a written
      document which has been executed by each party. This Note constitutes a New
      Hampshire contract to be governed by the laws of such state and to be paid
      and
      performed therein.

    

    The
      provisions of this Note are expressly subject to the condition that in no event
      shall the amount paid or agreed to be paid to the holder hereunder and deemed
      interest under applicable law exceed the maximum rate of interest on the unpaid
      principal balance hereunder allowed by applicable law, if any, (the “Maximum
      Allowable Rate”), which shall mean the law in effect on the date hereof, except
      that if there is a change in such law which results in a higher Maximum
      Allowable Rate being applicable to this Note, then this Note shall be governed
      by such amended law from and after its effective date. In the event that
      fulfillment of any provisions of this Note results in the interest rate
      hereunder being in excess of the Maximum Allowable Rate, the obligation to
      be
      fulfilled shall automatically be reduced to eliminate such excess. If
      notwithstanding the foregoing, the holder receives an amount which under
      applicable law would cause the interest rate hereunder to exceed the Maximum
      Allowable Rate, the portion thereof which would be excessive shall automatically
      be applied to and deemed a prepayment of the unpaid principal balance hereunder
      and not a payment of interest.

    

    BORROWER
      AND BANK (BY ACCEPTANCE OF THIS NOTE) MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY
      AND
      INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
      HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER
      LOAN
      DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE
      OF
      CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
      OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE
      OF
      DEALINGS, STATEMENTS OR ACTIONS OF BANK RELATING TO THE ADMINISTRATION OF THE
      LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL
      SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
      CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, EACH OF BANK
      AND
      BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
      LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
      DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. BORROWER CERTIFIES THAT
      NO REPRESENTATIVE, AGENT OR ATTORNEY OF BANK HAS REPRESENTED, EXPRESSLY OR
      OTHERWISE, THAT BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
      THE
      FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR BANK TO
      ACCEPT THIS NOTE AND MAKE THE LOAN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    This
      Note
      is executed and delivered in replacement of, but not in novation or discharge
      of, the Borrower’s revolving credit promissory note dated May 5, 2008 payable to
      the order of the Bank in the original principal amount of Five Million and
      00/100 Dollars ($5,000,000.00) (the “Prior Note”). The indebtedness originally
      evidenced by the Prior Note is a continuing indebtedness now evidenced by this
      Note, and secured by all of the collateral securing the Prior Note. Nothing
      herein contained shall be construed to deem such Prior Note paid, or to release
      or terminate any lien, mortgage or security interest given to secure such Prior
      Note.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Executed
      and delivered as of the date set forth above.

    

    
      	
              WITNESSES:

            	 	
              BORROWER:

            
	 	 	 
	 	 	 	
              BRANDPARTNERS
                GROUP, INC.

            
	 	 	 	 
	  
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	 	
              James
                Brooks

            
	 	 	 	 	 
	 	 	 	
              Title:

            	
              CEO

            
	 	 	 	 	 
	 	 	 	
              BRANDPARTNERS
                RETAIL, INC.

            
	 	 	 	 	 
	 
	 	
              By:
                

            	
              /s/
                James F. Brooks

            
	 	 	 	 	
              James
                Brooks

            
	 	 	 	 	 
	 	 	 	
              Title:

            	
              CEO

            
	 	 	 	 	 
	
              ACCEPTED
                BY:

            
	 	 	 	 	 
	
              TD
                BANKNORTH, N.A.

            	 	 	 
	 	 	 	 	 
	
              By:
                

            	
              /s/
                John Mercier

            	 	 	 
	 	
              John
                Mercier, Senior Vice PresidentExhibit
      10.2

    

    RSA
      399-B STATEMENT OF FINANCE CHARGES

     

    In
      connection with the amendment consummated on this ___ day of April, 2008, by
      and
      among
      TD
BANKNORTH,
      N. A., a national banking association with a business address of 5 Commerce
      Park
      North, Bedford, New Hampshire 03110 (“Bank”) and BRANDPARTNERS GROUP, INC., a
      Delaware corporation, and BRANDPARTNERS RETAIL, INC., a New Hampshire
      corporation, each with executive offices at 10 Main Street, Rochester, New
      Hampshire 03839 (collectively, the “Borrower”), GRAFICO INCORPORATED and
      BUILDING PARTNERS, INC., each a Delaware corporation with executive offices
      at
      10 Main Street, Rochester, New Hampshire 03839 (collectively, the “Guarantor”),
      to that certain Commercial Loan Agreement dated May 5, 2005, entered into by
      and
      between the Borrower, Guarantor, and the Bank, (as amended, the “Loan
      Agreement”), the Borrower and Guarantor are hereby informed and advised pursuant
      to New Hampshire RSA 399-B that Borrower and Guarantor shall be liable for
      and
      shall pay the following charges on the loans described below (all capitalized
      terms not defined herein shall have the meanings ascribed to them in the Loan
      Agreement):

    

    1.
      Interest.
      The
      Borrower shall pay interest on the outstanding principal balance of the
      Revolving Line of Credit Loan in the amount of up to Five Million Dollars
      ($5,000,000.00) at a variable annual rate equal to the Prime Rate plus
      three-quarters percent (0.75%). The Borrower shall pay interest on the
      outstanding principal balance of the Term Loan in the original principal amount
      of Two Million Dollars ($2,000,000.00) at a variable annual rate equal to the
      Prime Rate plus
      one-half
      percent (0.50%). “Prime Rate” means
      the
      rate published by The
      Wall Street Journal
      from
      time to time under the category “Prime Rate: The Base Rate on Corporate Loans
      posted by at least 75% of the Nation's 30 Largest Banks” (the lowest of the
      rates so published if more than one rate is published under this category at
      any
      given time) or such other comparable index rate selected by the Bank in its
      sole
      discretion if The
      Wall Street Journal
      ceases
      to publish such rate. The Borrower acknowledges that the Prime Rate is used
      for
      reference purposes only as an index and is not necessarily the lowest interest
      rate charged by the Bank on commercial loans. Each time the Prime Rate changes,
      the interest rate under the Loans shall change contemporaneously with such
      change in the Prime Rate. Interest is calculated and accrued daily on the basis
      of a 360 day banking year and payable monthly in arrears. The Borrower may
      also
      elect a rate of interest to apply to all or a portion of the outstanding
      principal balance of the Revolving Line of Credit Loan based upon 30-day LIBOR
      plus 325 basis points (3.25%), all subject to and in accordance with the Loan
      Agreement. The Borrower may also elect a rate of interest to apply to all of
      the
      outstanding principal balance of the Term Loan based upon 30-day LIBOR plus
      300
      basis points (3.00%), all subject to and in accordance with the Loan
      Agreement.

    

    2.
      Late
      Charges.
      In the
      event any installment of principal or interest on the Loans is not paid when
      due, the Bank may assess a late payment charge of five percent (5%) of the
      amount of principal and/or interest which is more than ten (10) days
      overdue.

    

    3.
      Default
      Rate.
      If an
      Event of Default occurs under the Loan Agreement and after maturity, the
      Borrower shall pay interest on all amounts outstanding under the Loans at the
      Prime Rate, plus an additional five and twenty-five one hundredths percent
      (5.25%) per annum.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.
      Bank
      Fees.
      The
      Borrower shall pay the Bank the following fees in connection with the
      Loans:

    

    
      	
              Amendment
                Fee: 

            	 	
              $25,000.00

            
	 	 	 
	
              Unused
                Revolving Line of Credit 

              Commitment
                Fee:

            	 	
              0.375%
                per annum of daily average of unadvanced amounts under Revolving
                Line of
                Credit Loan (based upon full availability of $5,000,000.00), determined
                quarterly and payable in arrears.

            

    

    

    5.
      LIBOR
      and Interest Rate Agreement Obligations.
      In the
      event of any prepayment of any Loans which are subject to a LIBOR based rate
      of
      interest, or which are subject to any agreement pertaining to interest rate
      swaps, caps, floors, or hedging transactions, Borrower shall pay Bank all fees,
      costs, reimbursements, obligations, and expenses provided under the Loan
      Agreement and the other Loan Documents with respect to the same.

    

    6.
      Closing
      Costs and Expenses.
      The
      Borrower shall pay all closing costs incurred by the Bank in connection with
      the
      closing, amendment, or enforcement of the Loans, including, without limitation,
      attorneys' fees and costs (including document preparation costs), recording
      and
      filing fees, title insurance premium, appraisal fees, court costs, sheriffs'
      fees, audit fees and any other expenses incurred by the Bank with respect
      thereto, including, but not limited to attorneys fees and expenses.

    

    7.
      Guarantor
      Obligations.
      Guarantor has unconditionally guaranteed payment to Bank of all of the
      obligations of Borrower described above.

    

    The
      Borrower and Guarantor hereby acknowledge receipt of a copy of this Statement
      at
      or before the loan closing of even date, and confirm that this transaction
      is a
      commercial loan not subject to federal truth-in-lending laws and regulations,
      including without limitation, the Real Estate Settlement Procedures Act and
      Regulation Z. 

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
         

      

      
        -
          2
          -

        
          

        

      

      
         

      

    

    

    Disclosed
      by Bank and acknowledged by Borrower and Guarantor as of the date first set
      forth above.

    

    
      	
              WITNESSES:

            	 	 	
              BORROWER:

            
	 	 	 	
              BRANDPARTNERS
                GROUP, INC.

            
	 	 	 	 
	 	 	
              By:

            	
              /s/
                James F. Brooks 

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
               
                CEO

            
	 	 	 	 
	 	 	 	
              BRANDPARTNERS
                RETAIL, INC.

            
	 	 	 	 
	 	 	
              By:

            	
               /s/
                James F. Brooks 

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
               
                CEO

            
	 	 	 	 
	 	 	 	
              GUARANTOR:

            
	 	 	 	
              GRAFICO
                INCORPORATED

            
	 	 	 	 
	 	 	
              By:

            	
               /s/
                James F. Brooks 

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
               
                CEO

            
	 	 	 	 
	 	 	 	
              BUILDING
                PARTNERS, INC

            
	 	 	 	 
	 	 	
              By:

            	
               /s/
                James F. Brooks 

            
	 	 	 	
              James
                Brooks

            
	 	 	 	 
	 	 	
              Title:

            	
               
                CEO

            

    

     

    
      
         

      

      
        -
          3
          -

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