Document:

EMPLOYMENT
      AGREEMENT

     

    EMPLOYMENT
      AGREEMENT
      dated as
      of December 28, 2006 between AMERICAN MEDICAL ALERT CORP., a New York
      corporation (the "Company"), with offices located at 3265 Lawson Boulevard,
      Oceanside, New York 11572 and Randi Baldwin, an individual having an address
      at
      ______________________________ ("Employee").

     

    W I T N E S S E T
60;H:

     

    WHEREAS,
      the
      Company desires to retain the services of Employee upon the terms and conditions
      stated herein; and

     

    WHEREAS,
      Employee desires to continue to be employed by the Company upon the terms and
      conditions stated herein. 

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants, conditions and promises contained herein,
      the parties hereby agree as follows: 

     

    1. Employment.
      The
      Company hereby employs Employee for the period beginning as of November 1,
      2006
      and ending October 31, 2009, unless earlier terminated pursuant hereto (the
      "Employment Period").

     

    2. Duties.
      Subject
      to the authority of the Company's President, Employee shall be employed as
      the
      Company's Vice President, Communications and Marketing. Employee will perform
      such duties and services as a member of senior management team, and commensurate
      with her position as the Vice President, Communications and Marketing, as may
      from time to time be assigned to her by the President and or his
      designee.

     

    3. Full
      Time.
      Employee agrees that she will devote her full time and attention during regular
      business hours to the business and affairs of the Company. The foregoing shall
      not prevent the purchase, ownership or sale by Employee of investments or
      securities of publicly held companies and any other business that is not
      competitive with the Company or any subsidiary of the Company so long as such
      investment does not require active participation of Employee in the management
      of the business of such publicly held companies, does not interfere or conflict
      with the performance of Employee's duties hereunder and does not otherwise
      violate any of the provisions of this Agreement, or Employee's participation
      in
      philanthropic organizations to the extent that such participation does not
      interfere or conflict with the performance of Employee's duties hereunder and
      does not otherwise violate any provision of this Agreement.

     

    4. Compensation.
      In
      consideration of the duties and services to be performed by Employee hereunder,
      the Company agrees to pay, and Employee agrees to accept the amounts set forth
      below:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a) A
      base
      salary, to be paid on a bi- weekly basis, according to the following
      schedule:

     

    
      	Effective  	Amount 	 
	11/01/06- 	$140,000 per annum, 	 
	11/01/07-	$147,000 per annum  	 
	11/01/08- 	$155,000 per annum 	 

    

     

    (b) The
      Employee shall be eligible for bonus payments which may be awarded by the Board
      of Directors of the Company in its sole discretion. 

     

    (c) The
      compensation provided for herein shall be in addition to any retirement, profit
      sharing, insurance or similar benefit which may at any time be payable to
      Employee pursuant to any plan or policy of the Company relating to such
      benefits, which additional benefits shall be made available to Employee on
      the
      same basis as they are generally made available to other executive officers
      of
      the Company. Such compensation shall be in addition to any options which may
      be
      granted under any stock option plan of the Company.

     

    (d) The
      Company shall reimburse Employee in accordance with the Company's normal
      policies for all reasonable travel, hotel, meal and other expenses properly
      incurred by her in the performance of her duties hereunder.

     

    (e) The
      Company shall provide Employee with a monthly automobile stipend in the amount
      of $700.00.

     

    (f) The
      Company has also granted Employee a one time sign on award of options to
      purchase 7,500 shares of AMAC common stock. The stock option grant was awarded
      on November 15, 2006 and the strike price of these options is equal to the
      fair
      market value of the stock at the close of business on November 15, 2006. The
      stock option will be subject to the terms of the Company's 2005 Stock Incentive
      Plan.

     

    5. Vacation.
      Employee shall be entitled to three (3) weeks vacation each fiscal year, to
      be
      taken at such time as is mutually convenient to the Company and
      Employee.

     

    6. Death.
      In the
      event of the death of Employee during the Employment Period, this Agreement
      and
      the employment of Employee hereunder shall terminate on the date of the death
      of
      Employee. The estate of Employee (or such person(s) as Employee shall designate
      in writing) shall be entitled to receive, and the Company agrees to continue
      to
      pay, in accordance with the normal pay practice of the Company, the base salary
      of Employee provided by paragraph 4(a) and the additional benefits, if any,
      provided by paragraph 4(c), in each instance for a period of one (1) year
      following the date of death of Employee.

     

    7. Disability.
      In the
      event that Employee shall be unable to perform because of illness or incapacity,
      physical or mental, the duties and services to be performed by her hereunder
      for
      a period of one hundred and eighty (180) consecutive days or an aggregate period
      of more than one hundred and eighty (180) days in any 12-Month period, the
      Company may terminate this Agreement after the expiration of such period. Upon
      such termination, Employee shall be entitled to receive the base salary provided
      by paragraph 4(a) and the additional benefits, if any, provided by paragraph
      4(c), in each instance through the date of such termination.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    8. Non-Compete,
      Non-Solicitation and Non-Disclosure.
      1)
      Employee
      covenants and agrees that throughout the Employment Period and for a period
      of
      twelve (12) months thereafter, she will not, directly or indirectly, own,
      manage, operate or control, or participate in the ownership, management,
      operation or control of, any business competing directly in the United States
      of
      America with the business conducted by the Company or any subsidiary of the
      Company during the Employment Period; provided,
      however,
      that
      Employee may own not more than 5% of the outstanding securities of any class
      of
      any corporation engaged in any such business, if such securities are listed
      on a
      national securities exchange or the NASDAQ Stock Market regularly traded in
      the
      Over the Counter market by a member of a national securities
      association.

     

    (b) Employee
      covenants and agrees that, (i) throughout the Employment Period, she will not
      directly or indirectly solicit, entice or induce any person (collectively,
      “Solicit”) who during the Employment Period is associated with, employed by or
      is a customer of the Company or any subsidiary, and (ii) for a period of twenty
      four (24) months following the Employment Period, she will not Solicit any
      person who is, or within the last three months of Employee's employment by
      the
      Company was, associated with, employed by, or was a customer of the Company
      or
      any subsidiary of the Company, in each case, to leave the employ of, terminate
      his or her association or its relationship with the Company, or any subsid-iary
      of the Company, or solicit the employment or business of any such person on
      her
      own behalf or on behalf of any other business enterprise.

     

    (c) Employee
      covenants and agrees that, throughout the Employment Period and at all times
      thereafter, she will not use, or disclose to any third party, trade secrets
      or
      confidential information of the Company, including, but not limited to,
      confidential information or trade secrets belonging or relating to the Company,
      its subsidiaries, affiliates, customers and clients or proprietary processes
      or
      procedures of the Company, its subsidiaries, affiliates, customers and clients,
      or the Company’s or its subsidiaries’ business, business plans, investments,
      customers, strategies, operations, records, financial information, assets,
      technology, data and information that reveals the processes, methodologies,
      technology or know-how of the Company or its subsidiaries. Trade secrets and
      confidential information shall include, but shall not be limited to, all
      information which is known or intended to be known only by employees of the
      Company, its respective subsidiaries and affiliates or others in a confidential
      relationship with the Company or its respective subsidiaries and affiliates
      which relates to business matters.

     

    (d) If
      any
      term of this paragraph 8 is found by any court having jurisdiction to be too
      broad, then and in that case, such term shall nevertheless remain effective,
      but
      shall be considered amended (as to the time or area or otherwise, as the case
      may be) to a point considered by said court as reason-able, and as so amended
      shall be fully enforceable.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (e) In
      the
      event that Employee shall breach or threaten to breach any provision of this
      Agreement (including but not limited to the provisions of this paragraph 8),
      then Employee hereby consents to the granting of a temporary or permanent
      injunction against her by a court of competent jurisdiction prohibiting her
      from
      violating any provision of this Agreement. In any proceeding for an injunction
      and upon any motion for a temporary or permanent injunction, Employee agrees
      that her ability to answer in damages shall not be a bar or interposed as a
      defense to the granting of such temporary or permanent injunction against
      Employee. Employee further agrees that the Company will not have an adequate
      remedy at law in the event of any breach or threatened breach by Employee
      hereunder and that the Company will suffer irreparable damage and injury if
      Employee breaches any of the provisions of this Agreement.

     

    (f) The
      provisions of this Paragraph 8 shall survive any termination or expiration
      of
      this Agreement, irrespective of the basis therefore. 

     

    9. Termination.
      

     

    (a) The
      Company may terminate this Agreement without liability (other than for the
      base
      salary pro-vided in paragraph 4(a) accrued to the date of termination) in the
      event of (i) a material breach by Employee of the provisions of this Agreement,
      which breach shall not have been cured by Employee within thirty (30) days
      following notice thereof by the Company to Employee, (ii) the commission of
      gross negligence or bad faith by Employee in the course of her employment
      hereunder, which commission has a material adverse effect on the Company, (iii)
      the commission by Employee of a criminal act of fraud, theft or dishonesty
      causing material damages to the Company or any of its subsidiaries, (iv) the
      conviction of Employee of (or plead nolo contendere
      to) any
      felony, or misdemeanor involving moral turpitude if such misdemeanor results
      in
      material financial harm to or materially adversely affects the goodwill of
      the
      Company, or (v) any violation by Employee of the Company’s Code of Business
      Conduct and Ethics or the Company’s sexual harassment and other forms of
      harassment policy or drug and alcohol abuse policy, as set forth in the
      Company’s employee handbook.

     

    (b) After
      a
      Change in Control (as hereinafter defined) has occurred, Employee may terminate
      her employment upon thirty (30) days' written notice to the Company within
      one
      hundred and eighty (180) days following such a Change in Control and after
      he
      has obtained actual knowledge of the occurrence of any of the following
      events:

     

    (i) Failure
      to elect or appoint, or re-elect or re-appoint, Employee to, or removal of
      Employee from, her office and/or position with the Company or its successor
      as
      in effect prior
      to
      the Change in Control, except in connection with the termination of Employee's
      employment pursuant to Section 9(a) hereof; 

     

    (ii) A
      reduction in Employee's overall compensation (including any reduction in pension
      or other benefit programs or perquisites) or a material adverse change
in
      the
      nature or scope of the authorities, powers, functions or duties normally
      attached to Employee's position with the Company as referred to in Section
      2
      hereof; 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (iii) A
      determination by Employee made in good faith that, as a result of a Change
      in
      Control, she is unable effectively to carry out the authorities, powers,
      functions or duties attached to her position with the Company as referred to
      in
      Section 2 hereof, and the situation is not remedied within thirty (30) days
      after receipt by the Company of written notice
      from Employee of such determination; 

     

    (iv) A
      breach
      by the Company of any provision of this Agreement not covered by clauses (i),
      (ii) or (iii) of this Section 9(b), which is not remedied within thirty (30)
      days after receipt by the Company of written notice from Employee of such
      breach; 

     

    (v) A
      change
      in the location at which substantially all of Employee's duties with the Company
      are to be performed to a location which is not within a 50-mile radius of
      Oceanside, NY;
      or

     

    (vi) Failure
      by the Company to obtain the assumption of, and the agreement to perform, this
      Agreement by any successor (pursuant to a transfer described in Section
      15).

     

    An
      election by Employee to terminate her employment under the provisions of this
      paragraph 9(b) shall not be deemed a voluntary termination of employment by
      Employee for the purpose of interpreting the provisions of any of the Company's
      employee benefit plans, programs or policies. Employee's right to terminate
      her
      employment pursuant to this paragraph 9(b) shall not be affected by her illness
      or incapacity, whether physical or mental, unless the Company shall at the
      time
      be entitled to terminate her employment under paragraph 7 of this Agreement.
      Employee's continued employment with the Company for any period of time less
      than one hundred and eighty (180) days after a Change in Control shall not
      be
      considered a waiver of any right she may have to terminate her employment
      pursuant to this paragraph 9(b).

     

    (c) After
      a
      Change in Control has occurred, if Employee terminates her employment with
      the
      Company pursuant to paragraph 9(b) hereof or if Employee's employment is
      terminated by the Company for any reason other than pursuant to paragraph 9(a)
      hereof, Employee (i) shall be entitled to her base salary in effect at the
      time
      of such termination, bonuses, awards, perquisites and benefits, including,
      without limitation, benefits and awards under the Company's stock option plans
      and the Company's pension and retirement plans and pro-grams, through the date
      specified in the notice of termination as the last day of Employee's employment
      by the Company (the "Termination Date") and, in addition thereto, (ii) shall
      be
      entitled to be paid in a lump sum, on the Termination Date, an amount of cash
      (to be computed, at the expense of the Company, by the independent certified
      public accountants utilized by the Company immediately prior to the Change
      of
      Control (the "Accountants"), whose computation shall be conclusive and bind-ing
      upon Employee and the Company) equal to the greater of (i) an amount equal
      to
      the remainder of Employee's salary which would be payable through the expiration
      of this Agreement had the Agreement continued in effect for the remainder of
      the
      Employment Period or (ii) an amount equal to twelve (12) months of the salary
      in
      effect under this Agreement at the time of such termination. Such lump sum
      payment is hereinafter referred to as the "Termination Compensation." All health
      insurance benefits otherwise payable to Employee shall also be paid for the
      greater of the duration of the Employment Period or twelve (12)
      months.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (d) It
      is
      intended that the "present value" of the payments and benefits to Employee,
      whether under this Agree-ment or otherwise, which are includable in the
      computation of "parachute payments" shall not, in the aggregate, exceed 2.99
      times the "base amount" (the terms "present value", "parachute payments" and
      "base amount" being determined in accordance with Section 280G of the Internal
      Revenue Code of 1986, as amended (the "Code")). Accordingly, if Employee
      receives payments or benefits from the Company prior to payment of the
      Termination Compensation which, when added to the Termination Compensation,
      would, in the opinion of the Accountants, subject any of the payments or
      benefits to Employee to the excise tax imposed by Section 4999 of the Code,
      the
      Termination Compensation shall be reduced by the smallest amount necessary,
      in
      the opinion of the Accountants, to avoid such tax. In addition, the Company
      shall have no obligation to make any payment or provide any benefit to Employee
      subsequent to payment of the Termination Compensation which, in the opinion
      of
      the Accountants, would subject any of the payments or benefits to Employee
      to
      the excise tax imposed by Section 4999 of the Code. No reduction in Termination
      Compensation or release of the Company from any payment or benefit obligation
      in
      reliance upon any aforesaid opinion of the Accountants shall be permitted unless
      the Company shall have provided to Employee a copy of any such opinion that
      specifically entitles Employee to rely thereon, no later than the date otherwise
      required for payment of the Termination Compensation or any such later payment
      or benefit.

     

    (e) "Change
      of Control" as used in this Agreement shall mean the occurrence of any of the
      following:

     

    (i) any
      "person" or "group" (as such terms are used in Section 3(a)(9) and 13(d)(3)
      of the Securities Exchange Act of 1934, as amended (the "Act")), except for
      an
      employee stock ownership trust (or any of the trustees thereof), becomes a
      "beneficial owner" (as such term in used in Rule 13d-3 promulgated under
      the Act), after the date hereof, directly or indirectly, of securities of the
      Company representing 35% or more of the combined voting power of the Company's
      then outstanding securities;

     

    (ii) a
      change
      in "control" of the Company (as the term "control" is defined in Rule 12b-2
      or any successor rule promulgated under the Act) shall have
      occurred;

     

    (iii) during
      the Employment Period, individuals who at the beginning of such period
      constitute the entire Board of Directors cease for any reason to constitute
      at
      least a majority thereof, unless the election, or the nomination for election,
      by shareholders of the Company of each new director was approved or ratified
      by
      a vote of at least a majority of the directors then still in office who were
      directors at the beginning of the Employment Period or who were new directors
      approved by such a vote;

     

    (iv) the
      shareholders of the Company approve a plan of complete liquidation of the
      Company or an agreement for the sale or disposition by the Company of all or
      substantially all of the Company's assets; or

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (v) the
      shareholders of the Company approve a merger or consolidation of the Company,
      or
      a wholly owned subsidiary of the Company, with any other company, other than
      a
      merger or consolidation which would result in the combined voting power of
      the
      Company's voting securities outstanding immediately prior thereto continuing
      to
      represent (either by remaining outstanding or by being converted into voting
      securities of the surviving entity) 50% or more of the combined voting power
      of
      the voting securities of the Company or such surviving entity outstanding
      immediately after such merger or consolidation. Notwithstanding the foregoing,
      any transaction involving a leveraged buyout or other acquisition of the Company
      which would otherwise constitute a Change in Control, in which Employee
      participates in the surviving or successor entity (other than solely as an
      employee or consultant), shall not constitute a Change in Control.

     

    (f) Company
      may request that Employee transfer to any Company designated office; provided,
      however that if the Company requests that Employee transfer to an office that
      is
      not within 50 miles of Oceanside, N.Y., Employee may terminate this Agreement,
      which shall be deemed a termination by the Company without justification or
      cause.

     

    (g) The
      Company may terminate this Agreement without Cause. If the Company so terminates
      the Agreement, Employee shall receive her base salary at the level last in
      effect prior to such termination, for a period of 12 months, with no duty to
      mitigate damages and irrespective of any employment obtained by Employee during
      such period. In addition, if the Company fails to renew this Agreement after
      the
      expiration of the initial 3 year term of this Agreement, on terms and conditions
      substantially equivalent to the terms and conditions herein, then unless
      Employee has committed an act constituting "Cause" prior to the expiration
      of
      the Employment Period, the Company shall pay to Employee the same payments
      specified in the first sentence of this Subparagraph 9(g), based on the
      Employee's base salary as in effect at the expiration of such Employment Period.
      This paragraph shall not apply in the event of a Change in Control, which shall
      be governed by Paragraphs 9(b)-9(e). Under no circumstance shall the payment
      provided for in this Paragraph 9(g) be duplicative, i.e., only one 12 month
      payment would be made if this Paragraph 9(g) is applicable, and this Paragraph
      9(g) shall not be construed so as to consider a termination without Cause and
      a
      non-renewal as being occasioned from the same incident and requiring two
      separate 12 month payments.

     

    10. No
      Impediments.
      Employee warrants and represents that he is free to enter into this Agreement
      and to perform the services contemplated thereby and that such actions will
      not
      constitute a breach of, or default under, any existing agreement.

     

    11. No
      Waiver.
      The
      failure of any of the parties hereto to enforce any provision hereof on any
      occasion shall not be deemed to be a waiver of any preceding or succeeding
      breach of such provision or of any other provision.

     

    12. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      hereto and no amendment, modification or waiver of any provision herein shall
      be
      effective unless in writing, executed by the party charged therewith. This
      Agreement replaces and supersedes the Agreement between Employee and the Company
      dated as of January 1, 2005.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    13. Governing
      Law.
      This
      Agreement shall be con-strued, interpreted and enforced in accordance with
      and
      shall be governed by the laws of the State of New York applicable to agreements
      to be wholly performed therein, other than those which would defer to the
      substantive laws of another jurisdiction.

     

    14. Binding
      Effect.
      This
      Agreement shall bind and inure to the benefit of the parties, their successors
      and assigns.

     

    15. Assignment
      and Delegation of Duties.
      This
      Agreement may not be assigned by the parties hereto except that the Company
      shall have the right to assign this Agreement to any successor in connection
      with a sale or transfer of all or sub-stantially all of its assets, a merger
      or
      consolidation. This Agreement is in the nature of a personal services contract
      and the duties imposed hereby are nondelegable.

     

    16. Paragraph
      Headings.
      The
      paragraph headings herein have been inserted for convenience of reference only
      and shall in no way modify or restrict any of the terms or provi-sions
      hereof.

     

    17. Notices.
      Any
      notice under the provisions of this Agreement shall be in writing, shall be
      sent
      by one of the following means, directed to the address set forth on the first
      page of this Agreement or to such other address as shall be designated hereunder
      by notice to the other party, effective upon actual receipt and shall be deemed
      conclusively to have been given: (i) on the first business day following the
      day
      timely deposited for overnight delivery with Federal Express (or other
      equivalent national overnight courier service) or United States Express Mail,
      with the cost of delivery prepaid or for the account of the sender; (ii) on
      the
      fifth business day following the day duly sent by certified or registered United
      States mail, postage prepaid and return receipt requested; or (iii) when
      otherwise actually received by the addressee on a business day (or on the next
      business day if received after the close of normal business hours or on any
      nonbusiness day).

     

    18. Unenforceability;
      Severability.
      If any
      provision of this Agreement is found to be void or unenforceable by a court
      of
      competent jurisdiction, the remaining provisions of this Agreement shall,
      nevertheless, be binding upon the parties with the same force and effect as
      though the unenforceable part has been severed and deleted.

     

    19. Code
      Section 409A.
      The
      Company and the Employee agree to work together in good faith to consider
      amendments to this Agreement necessary or appropriate to avoid imposition of
      any
      additional tax or income recognition prior to actual payment to Employee under
      Internal Revenue Code Section 409A and any temporary or final Treasury
      Regulations and Internal Revenue Service guidance thereunder. Any provision
      of
      this Agreement not in compliance with Section 409A shall be void and the Company
      reserves the discretion to revise the Agreement as necessary, without the
      consent of the Employee, to comply with Code Section 409A. Further, and
      notwithstanding anything to the contrary in this Agreement, any cash severance
      payments due to Employee pursuant to this Agreement or otherwise will not be
      paid during the six-month period following Employee’s termination of employment
      unless the Company determines, in its good faith judgment, that paying such
      amounts at the time or times indicated above would not cause Employee to incur
      an additional tax under Code Section 409A. If the payment of any amounts are
      delayed as a result of the previous sentence, any cash severance payments due
      to
      Employee pursuant to this Agreement or otherwise during the first six (6) months
      after Employee’s termination will accrue and will become payable in a lump sum
      payment on the date six (6) months and one (1) day following the date of
      Employee’s termination. Thereafter, payments will resume in accordance with the
      applicable schedule set forth in this Agreement.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be executed as of the date first
      above writ-ten. 

     

    
      	 	 	 
	
 	 
 	 EMPLOYEE:
	 	 	 
	 	 	 
	 	 	/s/ Randi
              Baldwin  
	 	
              
Randi
              Baldwin
	 	 

      	
            	 	 
	
 	 
 	COMPANY:
	 	 	 
	 	 	AMERICAN MEDICAL ALERT CORP.
	 	 	 
	 	 	By
              :/s/  Jack Rhian 
	 	
              
Name:
              Jack Rhian
	 	Title:
              President

    

     

    
      
         

      

      
        9Exhibit
      10(t)(v)

    AMENDMENT
      NO. 8 AND CONSENT

    TO
      CREDIT AGREEMENT

    

    AMENDMENT
      NO. 8 AND CONSENT, dated
      as
      of December 22, 2006 (this “Amendment”), with respect to the Credit Agreement,
      dated as of May 20, 2002 (as same has been and may be further amended, restated,
      supplemented or modified, from time to time, the “Credit Agreement”), by and
      between AMERICAN
      MEDICAL ALERT CORP., a
      New
      York corporation (the “Company”) and JPMORGAN
      CHASE BANK, N.A.,
      as
      successor-in-interest to The Bank of New York, a national banking association
      (the “Lender”).

    

    RECITALS

    

    The
      Company has requested, and the Lender has agreed subject to the terms and
      conditions of this Amendment, to provide a new acquisition loan facility, to
      amend certain provisions of the Credit Agreement and to consent to the
      consummation of the Acquisition (as hereinafter defined), all as herein set
      forth.

    

    Accordingly,
      in consideration of the premises and of the mutual covenants and agreements
      hereinafter set forth, the parties hereto agree as follows:

    

    
      	 	
              1.

            	
              Amendments.
                

            

    

     

    (a)
       The
      following definitions in Section 1.01 of the Credit Agreement are hereby amended
      and restated in their entirety to provide as follows:

    

    "Applicable
      Margin"
      shall
      mean (a) 0.00% with respect to an Alternate Base Rate Loan, and (b) with respect
      to an Adjusted Libor Loan, the percentage set forth below under the applicable
      heading "LIBOR Margin" opposite the applicable ratio. 

    

     

    
      	
              Ratio
                of Consolidated Funded 

              Debt
                to Consolidated EBITDA

            	
              LIBOR
                Margin

              For
                Revolving Credit Loans

              (360
                day basis)

            	
              LIBOR
                Margin for the

              Term
                Loan, the New Term Loan and the AMI Acquisition Loan

              (360
                day basis)

            
	
              Less
                than 1.00:1.00

            	
              1.50%

            	
              1.75%

            
	
              Greater
                than or equal to 1.00:1.00 but less than 1.50:1.00

            	
              1.75%

            	
              2.00%

            
	
              Greater
                than or equal to 1.50:1.00 but less than 2.00:1.00

            	
              2.00%

            	
              2.25%

            
	
              Greater
                than or equal to 2.00:1.00

            	
              2.25%

            	
              2.50%

            

    

     

    Notwithstanding
      the foregoing, during the period commencing on the Third Effective Date and
      ending on the date of reset of the Applicable Margin in accordance with this
      paragraph, the LIBOR Margin for (a) Revolving Credit Loans shall be 1.75% and
      (b) the Term Loan, the New Term Loan and the AMI Acquisition Loan shall be
      2.00%. The Applicable Margin will be set or reset with respect to each Loan
      on
      the date which is five (5) Business Days following the date of receipt by the
      Lender of the financial statements referred to in Section 6.03(a) and Section
      6.03(b) together with a certificate of the Chief Financial Officer of the
      Company certifying the ratio of Consolidated Funded Debt to Consolidated EBITDA
      (herein, the "Leverage Ratio") and setting forth the calculation thereof in
      detail; provided, however, (a) the Applicable Margin will first be reset based
      on the financial statements for the fiscal year ending December 31, 2006, and
      (b) if any such financial statement and certificate are not received by the
      Lender within the time period required pursuant to Section 6.03(a) or Section
      6.03(b), as the case may be, the Applicable Margin will be set or reset, based
      on a Leverage Ratio of greater than 2.00:1.00 from the date such financial
      statements and certificate were due until the date which is five (5) Business
      Days following the receipt by the Lender of such financial statements and
      certificate, and provided, further, that the Lender shall not in any way be
      deemed to have waived any Default or Event of Default, including without
      limitation, an Event of Default resulting from the failure of the Company to
      comply with Section 7.13 of this Agreement, or any rights or remedies hereunder
      or under any other Loan Document in connection with the foregoing proviso.
      During the occurrence and continuance of a Default or an Event of Default,
      no
      downward adjustment, and only upward adjustments, shall be made to the
      Applicable Margin. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Commitments”
      shall mean, collectively, the Revolving Credit Commitment, the Term Loan
      Commitment, the New Term Loan Commitment and the AMI Acquisition Loan
      Commitment. 

    

    “Loans”
      shall mean, collectively, the Revolving Credit Loans, the Term Loan, the New
      Term Loan and the AMI Acquisition Loan.

    

    “Total
      Commitment” shall mean, at any time, the aggregate of the Commitments in effect
      at such time which shall be $7,624,998.97.

    

    (b) The
      following definitions are hereby added to Section 1.01 of the Loan
      Agreement, in their appropriate alphabetical order:

    

    “AMI
      Acquisition Loan” shall have the meaning set forth in Section 2.07.

    

    “AMI
      Acquisition Loan Commitment” shall mean the Lender’s obligation to make the AMI
      Acquisition Loan to the Company on the Third Effective Date, in the amount
      of
      $1,600,000.

    

    “AMI
      Acquisition Loan Note” shall have the meaning set forth in Section
      2.08.

    

    “AMI
      Acquisition Loan Maturity Date” shall mean January 1, 2011. 

    

    “Third
      Effective Date” shall mean December __, 2006.

    

    (c)
       Article
      II of the Credit Agreement is hereby amended to add the following new sections
      2.07 and 2.08 immediately following Section 2.06 thereof: 

    

    SECTION
      2.07 AMI
      Acquisition Loan. Subject
      to the terms and conditions hereof, and relying on the representations and
      warranties set forth herein, the Lender agrees to make a term loan (the “AMI
      Acquisition Loan”) to the Company available in a single drawdown on the Third
      Effective Date in an amount not to exceed the AMI Acquisition Loan Commitment.
      The AMI Acquisition Loan may be (i) an Adjusted Libor Loan, (ii) an Alternate
      Base Rate Loan or (iii) a combination thereof. The AMI Acquisition Loan
      Commitment shall terminate upon funding of the AMI Acquisition Loan on the
      Third
      Effective Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    SECTION
      2.08 AMI
      Acquisition Note. 

    The
      AMI
      Acquisition Loan made by the Lender shall be evidenced by a promissory note
      of
      the Company, substantially in the form of Exhibit H, with appropriate insertions
      (the “AMI Acquisition Note”) payable to the order of the Lender and representing
      the obligation of the Company to pay the unpaid principal amount of the AMI
      Acquisition Loan of the Lender with interest thereon as prescribed in Section
      3.01. The Lender is authorized to record the Type and the date and amount of
      each payment or prepayment of principal thereof in the Lender’s records or on
      the grid schedule annexed to the AMI Acquisition Loan Note; provided,
      however,
      that
      the failure of the Lender to set forth each payment and other information shall
      not in any manner affect the obligation of the Company to repay the AMI
      Acquisition Loan
      in
      accordance with the terms of the AMI Acquisition Note and this Agreement. The
      AMI Acquisition Note, the grid schedule and the books and records of the Lender
      shall constitute conclusive evidence of the information so recorded absent
      manifest error. The AMI Acquisition Note shall (a) be dated the Third Effective
      Date, (b) be stated to mature on the AMI Acquisition Loan Maturity Date and
      (c)
      be payable as to principal in sixty (60) consecutive monthly principal
      installments of $26,666.66 each, commencing February 1, 2007, and on the first
      day of each month thereafter, provided
      that the
      final installment on the AMI Acquisition Loan Maturity Date shall be in an
      amount equal to the remaining principal amount then outstanding. Repayments
      and
      prepayments of the AMI Acquisition Loan may not be reborrowed. The AMI
      Acquisition Loan Note shall bear interest from the date thereof until paid
      in
      full on the unpaid principal amount thereof from time to time outstanding at
      the
      applicable interest rate per annum determined as provided in, and payable as
      specified in, Section 3.01. 

    

    (d)
       The
      first
      sentence of Section 3.01(g) of the Credit Agreement is hereby amended and
      restated in its entirety to provide as follows:

    

    “No
      Loan
      which may be funded as an Adjusted Libor Loan may be converted to or continued
      as an Adjusted Libor Loan with an Interest Period that extends beyond the
      Revolving Credit Commitment Termination Date, with respect to Revolving Credit
      Loans, the Maturity Date, with respect to the Term Loan, the New Term Loan
      Maturity Date, with respect to the New Term Loan or the AMI Acquisition Loan
      Maturity Date, with respect to the AMI Acquisition Loan. 

    

    (e)
       The
      following sentence is hereby added to Section 3.02 of the Credit Agreement
      at
      the end thereof. 

    

    “The
      proceeds of the AMI Acquisition Loan shall be used by the Company solely in
      connection with the Company’s acquisition of certain assets of American
      Mediconnect, Inc. and Phone Screen, Inc. and for other general corporate
      purposes.” 

     

    (f)
       The
      second and third sentences of Section 3.03(c) of the Credit Agreement is hereby
      amended and restated in its entirety to provide as follows:

    

    “All
      partial prepayments of the Term Loan, the New Term Loan and the AMI Acquisition
      Loan shall be applied to the remaining installments of principal thereof in
      inverse order of maturity. Prepayments of the Term Loan, the New Term Loan
      and
      the AMI Acquisition Loan may not be reborrowed.”

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (g)
       
      The
      table in Section 7.13(a) is
      hereby
      amended and restated in its entirety to provide as follows:

    

        

    

      
        	"Fiscal
                Quarter Ending	Ratio
	 	 
	
                March
                  31, 2007 

              	
                1.01:1.00

              
	
                June
                  30, 2007 

              	
                1.04:1.00

              
	
                September
                  30, 2007

              	
                1.07:1.00

              
	
                December
                  31, 2007 and thereafter

              	
                1.10:1.00"

              

      

    

    

    Notwithstanding
      anything to the contrary, Consolidated Fixed Charge Coverage Ratio for the
      fiscal quarter ending: (a) March 31, 2007 shall be determined with respect
      to
      the one fiscal quarter then ending, (b) June 30, 2007 shall be determined with
      respect to the two fiscal quarters then ending and (c) September 30, 2007 shall
      be determined with respect to the three fiscal quarters then
      ending.

    

    (h)
       Exhibit
      H
      attached to this Amendment is hereby added as Exhibit H to the Credit
      Agreement.

    

    (i)
       Schedules
      I, II, III, V and VI attached to the Credit Agreement are hereby amended and
      replaced with Schedules I, II, III, V and VI attached to this Amendment.

    

    2. Conditions
      of Effectiveness.
      This
      Amendment shall become effective upon receipt by (1) the Lender of (a) this
      Amendment, duly executed by the Company and each Guarantor, (b) the AMI
      Acquisition Loan Note, in the form of Exhibit
      H
      hereto,
      (c) a certificate of the Secretary or Assistant Secretary of the Company, dated
      as of the date hereof, in the form of Exhibit
      1
      hereto,
      (d) an amendment fee of $7,500, (e) a Joinder Agreement from American
      Mediconnect Acquisition Corp., along with an Opinion of Counsel and Secretary’s
      Certificate of American Mediconnect Acquisition Corp. (with Certificate of
      Incorporation, By-laws, Resolutions and Good Standing Certificate), (f) those
      documents and information required to be delivered to the Lender in order for
      the acquisition of the assets from American Mediconnect, Inc. and Phone Screen,
      Inc. (the “Acquisition”) to be deemed a Permitted Acquisition, and (g)
such
      other documents, instruments and agreements that the Lender shall reasonably
      require with respect thereto and (2) Farrell Fritz, P.C., of its reasonable
      attorneys’ fees and expenses incurred in connection with the preparation,
      execution and delivery of this Amendment, plus all outstanding amounts owed
      to
      Farrell Fritz, P.C. for unpaid attorney’s fees and expenses. 

    

    3. Miscellaneous.

    

    (a) This
      Amendment shall be governed by and construed in accordance with the laws of
      the
      State of New York.

    

    (b) All
      terms
      used herein shall have the same meaning as in the Credit Agreement, as amended
      hereby, unless specifically defined herein.

    

    (c) This
      Amendment shall constitute a Loan Document.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d) Except
      as
      expressly amended hereby, the Credit Agreement remains in full force and effect
      in accordance with the terms thereof. The Credit Agreement and the Loan
      Documents are each ratified and confirmed in all respects by the Company. The
      amendments herein are limited specifically to the matters set forth above and
      for the specific instance and purpose for which given and do not constitute
      directly or by implication an amendment or waiver of any other provisions of
      the
      Credit Agreement or a waiver of any Default or Event of Default which may occur
      or may have occurred under the Credit Agreement or any other Loan
      Document.

    

    (e) Upon
      the
      effectiveness of this Amendment, each reference in the Credit Agreement and
      the
      other Loan Documents to “this Agreement”, “hereunder”, “hereof”, “herein” or
      words of like import shall mean and be a reference to the Credit Agreement,
      as
      amended hereby.

    

    (f)
       The
      Company hereby represents and warrants that, (i) except with respect to the
      matters described in the Press Release (as defined in Amendment No. 2 to Credit
      Agreement, dated as of of March 28, 2005 between the Company and the Lender),
      the representations and warranties by the Company pursuant to the Credit
      Agreement and each other Loan Document, as updated by the Schedules attached
      hereto, are true and correct, in all material respects, on the date hereof,
      and
      (ii) no Default or Event of Default exists under the Credit Agreement or any
      other Loan Document; provided that, the Lender hereby acknowledges and agrees
      that the representations and warranties of the Company contained in the Credit
      Agreement and those covenants set forth in Sections 6.05, 6.06, 6.07, and 6.12
      of the Credit Agreement shall not be deemed (prior to, at or after this date
      of
      this Amendment) to be breached as a result of the matters described in the
      Press
      Release, provided that such matter or matters do not now or shall not hereafter
      cause a Material Adverse Effect or cause the occurrence of any other Event
      of
      Default, it being agreed and understood that the $1,500,000 charge described
      in
      the Press Release, in itself, will not be deemed to constitute a Material
      Adverse Effect.

    

    (g)
       The
      Company hereby: (a) acknowledges and confirms that, notwithstanding the
      consummation of the transactions contemplated by this Amendment, (i) all terms
      and provisions contained in the Security Documents are, and shall remain, in
      full force and effect in accordance with their respective terms and (ii) the
      liens heretofore granted, pledged and/or assigned to the Lender as security
      for
      the Company’s obligations under the Notes (including, without limitation, the
      AMI Acquisition Loan Note), the Credit Agreement and the other Loan Documents
      shall not be impaired, limited or affected in any manner whatsoever by reason
      of
      this Amendment and that all such liens shall be deemed granted, pledged and/or
      assigned to the Lender as security for the Company’s obligations to the Lender,
      including, without limitation, the AMI Acquisition Loan; and (b) represents,
      warrants and confirms the non-existence of any offsets, defenses, or
      counterclaims to its obligations under the Credit Agreement or any Loan
      Document. 

    

    (h) The
      Lender hereby consents to the Acquisition and acknowledges that the Acquisition
      is a Permitted Acquisition.

     

    (i)
       The
      Company hereby covenants and agrees to deliver to the Lender, within ten (10)
      Business Days of the date hereof, those items marked as “OPEN” on the checklist
      attached hereto as Exhibit 2.

     

    (j)
       This
      Amendment may be executed in one or more counterparts, each of which shall
      constitute an original, but all of which, when taken together, shall constitute
      but one Amendment.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Company and the Lender have caused this Amendment to be duly executed by their
      duly authorized officers as of the day and year first above
      written.

     

    
      	 	 	 
	 	AMERICAN
              MEDICAL ALERT CORP.
	 
 	 
 	 
 
	 	By:  	/s/ Jack
              Rhian 
	 	
              
Name:
              Jack Rhian
	 	Title:
              President

    

    
      	
            	 	 
	 	JPMORGAN
              CHASE BANK, N.A. 
	 
 	 
 	 
 
	 	By:  	/s/ William
              Ewing 
	 	
              
Name:
              William Ewing
	 	Title:
               Vice
              President 

    

    

    The
      undersigned, not parties to the Credit Agreement but as Guarantors under their
      respective Guaranties executed in favor of the Lender, dated as of May 20,
      2002,
      and as Grantors under the Security Agreement, dated as of May 20, 2002, each
      hereby (a) accept and agree to the terms of the foregoing Amendment, (b)
      acknowledge and confirm that all terms and provisions contained in their
      respective Guaranty are, and shall remain, in full force and effect in
      accordance with their respective terms and that its obligations thereunder
      include obligations of the Company owing to the Lender pursuant to the AMI
      Acquisition Loan, and (c) (i)
      all
      terms and provisions contained in the Security Agreement are and shall remain,
      in full force and effect in accordance with their respective terms and (ii)
      the
      liens heretofore granted, pledged and/or assigned to the Lender as security
      for
      the Guaranteed Obligations (as defined in the Guaranty) shall not be impaired,
      limited or affected in any manner whatsoever by reason of this Amendment and
      that all such liens shall be deemed granted, pledged and/or assigned to the
      Lender as security for the Guarantee Obligations, including, without limitation,
      those Guaranteed Obligations related to the AMI Acquisition Loan.
      

     

    
      	HCI ACQUISITION
              CORP.  	SAFE COM
              INC. 	 
	 	 	 
	By:   /s/
              Jack Rhian 	By:   /s/
              Jack Rhian  	 
	Name: Jack Rhian	Name: Jack Rhian 	 
	Title:  President	Title: President	 
	 	 	 
	 	 	 
	LIVE MESSAGE
              AMERICA  	NORTH SHORE
              ANSWERING  	 
	ACQUSITION CORP. 	SERVICE, INC.	 
	 	 	 
	By:   /s/
              Jack Rhian 	
              By:
  /s/
                Jack Rhian   

            	 
	Name: Jack Rhian 	Name: Jack
              Rhian 	 
	Title:  President	Title: President	 
	 	 	 
	 	 	 
	ANSWER CONNECTICUT
	MD ONCALL ACQUISITION
              CORP.	 
	ACQUSITION CORP.	 	 
	 	 	 
	By:   /s/
              Jack Rhian	By:   /s/
              Jack Rhian	 
	Name: Jack Rhian	Name: Jack
              Rhian 	 
	Title:  President	Title:  President	 

    

        

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

    

    

    AMI
      ACQUISITION LOAN NOTE

    

    
      	$1,600,000	 	
              December
                __,
                2006

            

    

        

    

    FOR
      VALUE RECEIVED, AMERICAN MEDICAL ALERT CORP., a
      Delaware corporation (the “Company”), promises to pay to the order of
JPMORGAN
      CHASE BANK, N.A. (the
      “Lender”), on or before the AMI Acquisition Loan Maturity Date, the principal
      amount of ONE
      MILLION SIX HUNDRED THOUSAND ($1,600,000) DOLLARS, in
      sixty
      (60) consecutive equal monthly installments of $26,666.66 each, commencing
      February 1, 2007 and continuing on the first day of each month thereafter;
      provided, however,
      that
      the last such payment on the AMI Acquisition Loan Maturity Date shall be in
      the
      amount necessary to repay in full the unpaid principal amount of the AMI
      Acquisition Loan. The Company also promises to pay interest on the unpaid
      principal amount hereof from the date hereof until paid in full at the rates
      and
      at the times which shall be determined in accordance with the provisions of
      the
      Credit Agreement referred to below.

    

    This
      Note
      is the “AMI Acquisition Loan Note” issued pursuant to and entitled to the
      benefits of the Credit Agreement dated as of May 20, 2002 by and between the
      Company and the Lender (as the same has been and may be further amended,
      restated, modified or supplemented from time to time, the “Credit Agreement”),
      to which reference is hereby made for a more complete statement of the terms
      and
      conditions under which the AMI Acquisition Loan evidenced hereby was made and
      is
      to be repaid. Capitalized terms used herein without definition shall have the
      meanings set forth in the Credit Agreement. 

    

    Each
      of
      the Lender and any subsequent holder of this Note agrees, by its acceptance
      hereof, that before transferring this Note, it shall record the date and amount
      of each payment or prepayment of principal of the AMI Acquisition Loan
      previously made hereunder on the grid schedule annexed to this Note;
provided,
      however,
      that
      the failure of the Lender or holder to set forth the AMI Acquisition Loan,
      payments and other information on the attached grid schedule shall not in any
      manner affect the obligation of the Company to repay the AMI Acquisition Loan
      made by the Lender in accordance with the terms of this Note.

    

    This
      Note
      is subject to prepayment pursuant to Section 3.03 of the Credit Agreement.
      

    

    Upon
      the
      occurrence of an Event of Default, the unpaid balance of the principal amount
      of
      this Note, together with all accrued but unpaid interest thereon, may become,
      or
      may be declared to be, due and payable in the manner, upon the conditions and
      with the effect provided in the Credit Agreement.

    

    All
      payments of principal and interest in respect of this Note shall be made in
      lawful money of the United States of America in immediately available funds
      at
      the office of The Bank of New York, located at 1401 Franklin Avenue, Garden
      City, New York 11530 or at such other place as shall be designated in writing
      for such purpose in accordance with the terms of the Credit Agreement.

    

    No
      reference herein to the Credit Agreement and no provision of this Note or the
      Credit Agreement shall alter or impair the obligation of the Company, which
      is
      absolute and unconditional, to pay the principal of and interest on this Note
      at
      the place, at the respective times, and in the currency herein
      prescribed.

    

    Except
      as
      may be expressly provided to the contrary in the Credit Agreement, the Company
      and endorsers of this Note waive diligence, presentment, protest, demand, and
      notice of any kind in connection with this Note.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    THIS
      NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
      CONFLICTS OF LAW WHICH WOULD APPLY THE SUBSTANTIVE LAWS OF ANOTHER
      JURISDICTION.

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Note to be executed and delivered by its duly authorized
      officer as of the day and year and at the place first above
      written.

     

    
      	 	 	 
	 	AMERICAN
              MEDICAL ALERT CORP. 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              

              Name:
                Jack
                Rhian

            
	 	Title:  President

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SCHEDULE

    

    

      

      
        	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	
                 

              	
                 

              
	
                 

              	 	
                Amount
                  of

              	 	
                Outstanding

              	 	
                Type

              	 	
                Applicable

              	 	
                 

              	 	
                Amount
                  of

              	
                 

              	
                Notation

              
	
                 

              	 	
                Principal

              	 	
                Principal

              	 	
                of

              	 	
                Interest

              	 	
                Interest

              	 	
                Principal

              	
                 

              	
                Made

              
	
                Date

              	 	
                Payment

              	 	
                Balance

              	 	
                 Loan 

              	 	
                Rate
                  

              	 	
                Period
                  

              	 	
                 
                  Paid

              	
                 

              	
                By

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]