Document:

FIRST AMENDMENT TO CREDIT AGREEMENT
                       -----------------------------------

     This FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into
as of August 21, 2007, by and among the lenders identified on the signature
pages hereof (such lenders, together with their respective successors and
permitted assigns, are referred to hereinafter each individually as a "Lender"
and collectively as the "Lenders"), WELLS FARGO FOOTHILL, INC., a California
corporation, as the administrative agent for the Lenders (in such capacity,
together with its successors and assigns in such capacity, "Agent"), and ORION
HEALTHCORP, INC., a Delaware Corporation ("Company"), and each of the Company's
Subsidiaries thereto (Company and each Subsidiary individually a "Borrower" and
collectively, jointly and severally, the "Borrowers"), with respect to the
following:

A.   The Borrowers, Agent and the Lenders have previously entered into that
     certain Credit Agreement dated as of December 1, 2006 (as amended,
     modified, renewed, extended, or replaced at any time or from time to time,
     the "Credit Agreement").

B.   The Borrowers, Agent, and the Lenders signatory hereto have agreed to amend
     the Credit Agreement on the terms and subject to the conditions set forth
     below.

     NOW, THEREFORE, the parties hereto do hereby agree as follows:

     1.   Definitions Incorporated. Initially capitalized terms used but not
          defined in this Amendment have the respective meanings set forth in
          the Credit Agreement.

     2.   Amendments to Credit Agreement. The Credit Agreement is hereby amended
          as follows:

     (a)  Schedule C-1 of the Credit Agreement is hereby amended by replacing
          the sum of "$2,000,000" under the heading "Revolver Commitment" with
          the sum of $2,500,000" and by replacing the sum of "$16,500,000" under
          the heading "Total Commitment" with the sum of "$17,000,000".

     (b)  Section 6.16(a) of the Credit Agreement is hereby amended and restated
          in its entirety as follows:

     (a)  Minimum TTM EBITDA. Fail to achieve TTM EBITDA, measured on a
          month-end basis, of at least the required amount set forth in the
          following table for the twelve month period ending as of the
          measurement date set forth opposite thereto:

<PAGE>

   Applicable Amount                    Measurement Date
       $2,000,000                        June 30, 2007
       $2,000,000                        July 31, 2007
       $2,000,000                       August 31, 2007
       $2,000,000                      September 30, 2007
       $2,000,000                       October 31, 2007
       $2,000,000                      November 30, 2007
       $2,000,000                      December 31, 2007
       $2,000,000                       January 31, 2008
       $2,000,000                      February 29, 2008
       $2,250,000                        March 31, 2008
       $2,250,000                        April 30, 2008
       $2,250,000                         May 31, 2008
       $2,500,000                        June 30, 2008
       $2,500,000                        July 31, 2008
       $2,500,000                       August 31, 2008
       $2,750,000                      September 30, 2008
       $2,750,000                       October 31, 2008
       $2,750,000                      November 30, 2008
       $3,400,000                      December 31, 2008
       $3,400,000                       January 31, 2009
       $3,500,000                      February 28, 2009
       $3,500,000                        March 31, 2009
       $3,600,000                        April 30, 2009
       $3,700,000                         May 31, 2009
       $3,700,000                        June 30, 2009
       $3,800,000                        July 31, 2009
       $3,800,000                       August 31, 2009
       $3,900,000                      September 30, 2009
       $4,000,000                       October 31, 2009
       $4,000,000                      November 30, 2009
       $4,100,000                      December 31, 2009
       $4,100,000                       January 31, 2010
       $4,200,000                      February 28, 2010
       $4,200,000                        March 31, 2010
       $4,300,000                        April 30, 2010
       $4,300,000                         May 31, 2010
       $4,400,000                        June 30, 2010
       $4,500,000                        July 31, 2010
       $4,500,000                       August 31, 2010
       $4,500,000                      September 30, 2010
       $4,600,000                       October 31, 2010
       $4,600,000                      November 30, 2010
                            December 31, 2010 and for month ending
       $4,750,000                          thereafter

Concurrently with the closing of each Permitted Acquisition, the EBITDA levels
for each month shall be adjusted to 85% of TTM EBITDA for such month as set
forth in the most recent Projections of Parent (as adjusted to take into account
Projected Pro Forma Target EBITDA).

     (c)  Section 6.16(b) of the Credit Agreement is hereby amended and restated
          in its entirety as follows:

<PAGE>

     (b)  Fixed Charge Coverage Ratio. Have a Fixed Charge Coverage Ratio,
          measured as of quarter-end, less than the required amount set forth in
          the following table for the applicable period set forth opposite
          thereto:

   Applicable Ratio                     Applicable Period
                                       For the fiscal quarter
       1.40:1.00                       ending March 31, 2007
                          For the two fiscal quarter period ending as of
       1.40:1.00                            June 30, 2007
                         For the three fiscal quarter period ending as of
       1.40:1.00                         September 30, 2007
                          For the four fiscal quarter period ending as of
       1.40:1.00                          December 31, 2007
                          For the four fiscal quarter period ending as of
       1.40:1.00                           March 31, 2008
                          For the four fiscal quarter period ending as of
       1.20:1.00                           June 30, 2008
                          For the four fiscal quarter period ending as of
       1.20:1.00                         September 30, 2008
                          For the four fiscal quarter period ending as of
       1.20:1.00                          December 31, 2008
                          For the four fiscal quarter period ending as of
                          March 31, 2009 and for each four fiscal quarter
       1.20:1.00                      period ending thereafter

     (d)  Section 6.16(c) of the Credit Agreement is hereby amended and restated
          in its entirety as follows:

          (c)  Senior Leverage Ratio. Have a Senior Leverage Ratio, measured on
               a month-end basis, more than the applicable ratio set forth in
               the following table for the applicable date set forth opposite
               thereto:

          Applicable Ratio                     Applicable Date
             2.50:1.00                        December 31, 2006
             2.50:1.00                         January 31, 2007
             2.50:1.00                        February 28, 2007
             2.50:1.00                          March 31, 2007
             2.50:1.00                          April 30, 2007
             2.25:1.00                           May 31, 2007
             2.85:1.00                          June 30, 2007
             2.85:1.00                          July 31, 2007
             2.85:1.00                         August 31, 2007
             2.85:1.00                        September 30, 2007
             2.85:1.00                         October 31, 2007
             2.85:1.00                        November 30, 2007
             2.85:1.00                        December 31, 2007
             2.75:1.00                         January 31, 2008
             2.75:1.00                        February 29, 2008
             2.75:1.00                          March 31, 2008
             2.50:1.00                          April 30, 2008
             2.50:1.00                           May 31, 2008
             2.50:1.00                          June 30, 2008
                                      July 31, 2008 and for each month
             2.25:1.00                         ending thereafter

<PAGE>

     3.   Borrowing Base Multiple. The definition of "Borrowing Base Multiple"
          in Schedule 1.1 of the Credit Agreement is hereby amended and restated
          in its entirety as follows:

          "Borrowing Base Multiple" means, as of any date of determination, (a)
          2.85:1.00 from the date of the First Amendment to Credit Agreement
          dated as of August 21, 2007 through December 31, 2007, (b) 2.75:1.00
          from January 1, 2008 through March 31, 2008 and (c) 2.50:1.00
          thereafter."

     4.   Amendment Fee. In addition to all other fees and charges, on the date
          hereof, Borrowers will pay to Agent for the benefit of Lenders an
          amendment fee of $100,000.

     5.   Conditions Precedent. The obligations of Agent and the Lenders
          hereunder will be effective only upon satisfaction of each of the
          following conditions precedent, each in a manner in form and substance
          acceptable to Agent:

(a)  Receipt by Agent of a fully-executed original of this Amendment;

(b)  Receipt by Agent of the fee set forth in Section 3 hereof.

(c)  After giving effect to Section 2(d) above, no Defaults or Events of Default
     have occurred and are continuing; and

(d)  Agent shall have received such other documents, certificates, opinions, and
     information that Agent may require, each in form and substance satisfactory
     to Agent in its sole discretion.

     6.   Borrowers' Representations and Warranties. To induce Agent and the
          Lenders to enter into this Amendment, the Borrowers represent and
          warrant to Agent and the Lenders as of the date hereof as follows: (a)
          this Amendment has been duly executed and delivered by the Borrowers,
          constitutes a legal and valid binding obligation of the Borrowers,
          enforceable against Borrowers in accordance with its terms, and has
          been duly authorized by all necessary corporate action; (b) the
          representations and warranties contained in the Credit Agreement and
          the other Loan Documents are, both before and after giving effect to
          this Amendment, true and correct in all material respects, except (i)
          where any such representation or warranty is already subject to a
          materiality standard, in which case such representation or warranty is
          true and correct in all respects, and (ii) to the extent any such
          representation or warranty is expressly stated to have been made as of
          a specific date, in which case each such representation and warranty
          is true and correct as of such specific date; and (c) after giving
          effect to Section 2(d) above, no Default or Event of Default has
          occurred and is continuing.

<PAGE>

     7.   Reaffirmation. Except as specifically modified by this Amendment, the
          Credit Agreement and the other Loan Documents remain in full force and
          effect in accordance with their respective terms and are hereby
          ratified, reaffirmed and confirmed by the Borrowers.

     8.   Events of Default. Any failure to comply with the terms and conditions
          of this Amendment will constitute an Event of Default under the Credit
          Agreement.

     9.   Binding Effect; Benefits of Amendment. This Amendment shall be binding
          upon, inure to the benefit of and be enforceable by the Borrowers, the
          Agent, each Lender and their respective successors and permitted
          assigns. This Amendment is entered into for the sole protection and
          benefit of the Borrowers, the Agent, and the Lenders and their
          successors and permitted assigns, and no other Person shall be a
          direct or indirect beneficiary of, or shall have any direct or
          indirect cause of action or claim in connection with, this Amendment.

     10.  Counterparts; Telefacsimile Execution. This Amendment may be executed
          in any number of counterparts and by different parties hereto in
          separate counterparts, each of which when so executed shall be deemed
          to be an original and all of which taken together shall constitute but
          one and the same agreement. Delivery of an executed counterpart of
          this Amendment by telefacsimile or other electronic method of
          transmission shall be equally effective as delivery of an original
          executed counterpart of this Amendment. Any party delivering an
          executed counterpart of this Amendment by telefacsimile or other
          electronic method of transmission also shall deliver an original
          executed counterpart of this Amendment but the failure to deliver an
          original executed counterpart shall not affect the validity,
          enforceability, and bind effect of this Amendment.

     11.  Governing Law. The validity of this Amendment and the construction,
          interpretation, and enforcement hereof, and the rights of the parties
          hereto with respect to all matters arising hereunder or related hereto
          shall be determined under, governed by, and construed in accordance
          with the laws of the State of New York. Section 12 of the Credit
          Agreement is incorporated herein by reference.

     12.  Entire Agreement. This Amendment, together with the other Loan
          Documents, reflects the entire understanding of the parties with
          respect to the transactions contemplated hereby and shall not be
          contradicted or qualified by any other agreement, oral or written,
          before the date hereof.

     THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
     AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
     SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
     AGREEMENTS BETWEEN THE PARTIES.

  As used in the preceding sentence, "written agreement" means all of the Loan
  Documents, collectively, including this Amendment.

<PAGE>

     13.  Costs and Expenses. The Borrowers agree to pay to each of Agent and
          the Lenders on demand the reasonable out-of-pocket costs and expenses
          of such Person, and the reasonable fees and disbursements of counsel
          to such Person, in connection with the negotiation, preparation,
          execution, delivery, and administration of this Amendment, and any
          amendments, modifications, or waivers of the terms thereof. The
          Borrowers agree to pay to Agent and the Lenders, on demand, all costs
          and expenses of such Person, and the fees and disbursements of counsel
          to such Person, in connection with the enforcement or attempted
          enforcement of, and preservation of rights or interests under, this
          Amendment, including any losses, costs and expenses sustained by such
          Person as a result of any failure by any Borrower to perform or
          observe its obligations contained in this Amendment.

                 [Remainder of Page Intentionally Left Blank]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as
of the date first written above.

                                         ORION HEALTHCORP, INC.

                                         By:     /s/ Terrence L. Bauer
                                                 ---------------------
                                         Title:  President and CEO

                                         INTEGRATED PHYSICIAN SOLUTIONS, INC.

                                         By:     /s/ Terrence L. Bauer
                                                 ---------------------
                                         Title:  President and CEO

                                       MEDICAL BILLING SERVICES, INC.

                                       By:       /s/ Terrence L. Bauer
                                                 ---------------------
                                       Title:    CEO

                                       ON-LINE ALTERNATIVES, INC.

                                       By:       /s/ Terrence L. Bauer
                                                 ---------------------
                                       Title:    CEO

                                       ON LINE PAYROLL SERVICES, INC.

                                       By:       /s/ Terrence L. Bauer
                                                 ---------------------
                                       Title:    CEO

                                       RAND MEDICAL BILLING, INC.

                                       By:       /s/ Terrence L. Bauer
                                                 ---------------------
                                       Title:    CEO

                                       7
<PAGE>

                                       WELLS FARGO FOOTHILL, INC.,
                                       a California corporation, as Agent and
                                       as a Lender

                                       By:       /s/ Peter Freyer
                                                 ----------------
                                                 Vice President

                                       8Exhibit 10.1

 

                

SECOND AMENDMENT

 

Dated as of August 14, 2007

 

Butler International, Inc.

c/o Butler Service Group, Inc.

110 Summit Avenue

Montvale, NJ 07645

 

Attn: Mark Koscinski

 

	
            Re:
 	
            Second Amended and Restated Credit Agreement, dated as of September 28, 2001 (including all annexes, exhibits and schedules thereto, and as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”), by and among Butler Service Group, Inc. (the “Borrower”), the other Credit Parties signatory thereto, General Electric Capital Corporation, a Delaware corporation, as a Lender and Agent for Lenders (the “Agent”), and the other Lenders signatory thereto from time to time.
 

 

Ladies and Gentlemen:

 

Capitalized terms used in this letter (hereafter referred to as this “Amendment”) and not otherwise defined or limited herein shall have the meanings attributed to such terms in the Amendment, dated June 30, 2007, among Butler Service Group, Inc., the other Credit Parties signatory thereto and General Electric Capital Corporation, as a Lender and Agent for Lenders (the “Agreement”). 

 

The Agent and the Lenders agree that the Forbearance Period specified under Section A.1. of the Agreement, as amended by that certain Amendment, dated as of July 31, 2007 (the “First Amendment”), during which time the Agent and the Lenders, without waiving, curing or ceasing the continuance of the Specified Events of Default, agree to forbear from the exercise of any of their rights and remedies available under the Credit Agreement and the Loan Documents on account of the Specified Events of Default, is hereby extended to August 20, 2007 (the “Amended Forbearance Period”). Except as expressly amended herein, the Agreement shall be unmodified and shall continue to be in full force and effect in accordance with its terms.       

 

	
            A.
 	
            EFFECTIVENESS OF AGREEMENT
 

This Amendment shall become effective as of the date first set forth above only upon the Agent’s receipt of six (6) fully-executed copies of this Amendment duly executed and delivered by the Agent, Lenders, Borrower and Guarantors. 

 

 

	
            B.
 	
            REPRESENTATIONS, WARRANTIES AND COVENANTS
 

In consideration of the limited agreement of the Agent and the Lenders to continue to forbear from the exercise of their rights and remedies as set forth above, each Credit Party hereby represents and warrants to the Agent and the Lenders as of the date hereof as follows:

1.        The execution, delivery and performance of this Amendment by such Credit Party: (a) is within its organizational power; (b) has been duly authorized by all necessary or proper corporate and shareholder action; (c) does not contravene any provision of such Credit Party’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 Credit Party is a party or by which such Credit Party 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 Credit Party 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 Credit Party.

2.        All Loan Documents, including without limitation, this Amendment, the Agreement, the First Amendment, the Credit Agreement and the Guaranties, constitute legal, valid and binding obligations of each Credit Party party thereto enforceable against each such Credit Party in accordance with the terms thereof. Each Credit Party hereby ratifies and confirms each of the Loan Documents to which such Credit Party is party to and the rights granted thereunder in favor of the Agent and the Lenders, including its liability for the Obligations as defined therein.

3.        The Credit Parties and the Lenders hereby agree that the decision by the Agent and the Lenders to continue to grant the forbearance as outlined herein is not and shall not be deemed to constitute an undertaking by the Agent and the Lenders to forbear or refrain from exercising any and all rights and remedies available to them under the Credit Agreement and the other Loan Documents and under applicable law upon the occurrence of any Forbearance Default. Additionally, notwithstanding the agreement of the Agent and the Lenders to enter into this Amendment, the Agent and the Lenders hereby advise the Credit Parties that, except to the extent of the Agent and the Lenders’ forbearance expressly referenced herein through the Amended Forbearance Period specified in this Agreement, the Agent and Lenders
require strict compliance with all of the terms and conditions of the Credit Agreement and the other Loan Documents; provided, however, that the Agent or the Lenders shall not be required to issue any notices otherwise required by the Credit Agreement with respect to the Specified Events of Default during the term of this Agreement.

 

 

4.        Each Credit Party further acknowledges and agrees that: (i) the Specified Events of Default have occurred or will occur and continue, and shall not be deemed to have been waived, cured or eliminated, in whole or in part, by this Amendment, and the Agent and the Lenders expressly reserve rights with respect to the Specified Events of Default, subject only to the terms in the Credit Agreement, the other Loan Documents and this Agreement; (ii) the parties have not entered into a mutual disregard of the terms and provisions of the Credit Agreement and the other Loan Documents, or engaged in any course of dealing in variance with the terms and provisions of the Credit Agreement and the Loan Documents, within the meaning of any applicable law of the State of New York, or otherwise; and (iii) as of the
Commitment Termination Date, principal in the amount set forth on Schedule A attached hereto, plus accrued interest was due and owing, by the Borrower under the Credit Agreement and guaranteed by the Guarantors under the Guaranties. 

5.        Each Credit Party expressly acknowledges and agrees that the Credit Agreement and other Loan Documents are valid and enforceable by the Agent and the Lenders and expressly reaffirms its obligations under the Credit Agreement and other Loan Documents (including the Guaranties). Each Credit Party agrees that it shall not dispute the validity or enforceability of the Credit Agreement and other Loan Documents (including the Guaranties) or any of its obligations thereunder, or the validity, priority, enforceability or extent of the Agent on behalf of the Lenders’ security interest in or lien against any item of Collateral under the Credit Agreement and other Loan Documents.

6.        As further consideration to induce the Agent and the Lenders to execute, deliver and perform this Amendment, each Credit Party represents and warrants that there are no claims, causes of action, suits, debts, obligations, liabilities, defenses, counterclaims, demands of any kind, character or nature whatsoever, fixed or contingent, which such Credit Party may have, or claim to have, against the Lenders or the Agent in connection with the Credit Agreement and Loan Documents, and such Credit Party hereby releases, acquits and forever discharges the Agent and each Lender and its respective agents, employees, officers, directors, servants, representatives, attorneys, affiliates, successors and assigns (collectively, the “Released Parties”) from any
and all liabilities, claims, suits, debts, causes of action and the like of any kind, character or nature whatsoever, known or unknown, fixed or contingent, in connection with the Credit Agreement and Loan Documents, that the Credit Party may have, or claim to have, against each of the such Released Parties from the beginning of time until and through the dates of execution and delivery of this Agreement. 

	
            C.
 	
            MISCELLANEOUS
 

1.        This Amendment, taken together with the Agreement, the First Amendment, the Credit Agreement and all of the other Loan Documents, embodies the entire agreement and understanding among the parties hereto, and such Amendment may not be further amended or modified and the Amended Forbearance Period further extended unless agreed to in writing executed by all parties signatory to this Amendment or as may otherwise be provided for under the terms of the Credit Agreement and the other Loan Documents. This Amendment shall constitute a Loan Document for all purposes under the Credit Agreement.

 

 

2.        This Amendment, and any further amendments, waivers, consents or supplements hereto may be executed in multiple counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by telefacsimile shall be equally as effective as delivery of an original executed counterpart of the Amendment. 

3.        THIS AGREEMENT AND THE TRANSACTIONS EVIDENCED HEREBY SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4.        Time is of the essence for performing all matters set forth in this Amendment.

[remainder of page intentionally blank]

 

 

	
            AGENTS AND LENDERS:
 	
            GENERAL ELECTRIC CAPITAL

CORPORATION, as Agent

and a Lender

 

 

By:  /s/ James Kaufman                     

Duly Authorized Signatory 

 
 

 

 

 

	
            AS BORROWER:

 

BUTLER SERVICE GROUP, INC.

By: /s/ Mark Koscinski           

Name:  Mark Koscinski

Title:   VP and
Controller

 
 	
             
 

 

 

 

	
            AS GUARANTORS:

 

 
 	
             
 
	
            BUTLER INTERNATIONAL, INC.

BUTLER SERVICES INTERNATIONAL, INC.

BUTLER TELECOM, INC.

BLUESTORM, INC.

BUTLER SERVICES, INC.

BUTLER UTILITY SERVICE, INC.

 

By: /s/ Mark Koscinski                                                                                                                   

Name: Mark Koscinski

Title:   VP and Controller
 	
             
 

 

 

 

SCHEDULE A

 

As of July 31, 2007, the principal balance due and owing of the Revolving Loan was $35,448,730, the aggregate outstanding Letter of Credit Obligations was $3,645,844, the principal balance due and owing of the Term Loan A was $0 and the principal balance due and owing of the Term Loan B was $14,000,000.

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