Document:

Exhibit 10.2  

THIRD AMENDMENT TO
SECOND LIEN CREDIT AGREEMENT  

          THIS
THIRD AMENDMENT TO SECOND LIEN CREDIT AGREEMENT, dated as of May 28, 2008 (this “Amendment”), is by and among
BUTLER SERVICE GROUP, INC., a New Jersey
corporation (“the “Borrower”), certain financial institutions party to the
Credit Agreement referred to below
(the “Lenders”), and MONROE CAPITAL MANAGEMENT ADVISORS LLC, in its capacity as agent for the Lenders
(“Agent”).  

BACKGROUND

          A.
      Borrower, the Lenders, Agent and the other Credit
Parties signatory thereto, are parties
to that certain Second Lien Credit Agreement dated as of August 29, 2007 (as
amended, restated, supplemented or
otherwise modified and in effect from time to time, the “Credit Agreement”). 

          B.        The Borrower, the Agent and the
Lenders wish to
amend the Credit Agreement on the
terms and conditions set forth below.

AGREEMENT 

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

          SECTION
1. DEFINED TERMS. Unless otherwise defined
herein, all capitalized terms used
herein shall have the meanings given to them in the Credit Agreement.

          SECTION
2. AMENDMENTS. Upon the Effective Date,
Section 8.1 (a) of the Credit Agreement shall be amended and restated in its
entirety as follows:

	
 

	
 

	
 

	
 

	
(a)
      Borrower (i) fails to make any payment of
 principal of, or interest on, or
 Fees owing in respect of, the Loans or any of the other Obligations within 5
 Business Days of the date when due and payable, or (ii) fails to pay or reimburse Agent or Lenders for any expense
 reimbursable hereunder or under any
 other Loan Document within 10 days following Agent’s demand for such reimbursement or payment of expenses.

	
 

          SECTION 3. COOPERATION. Borrower agrees to cooperate
in good faith with the Agent during the Forbearance Period (as defined below),
including without limitation, by providing
such information as the Agent may reasonable request in a timely manner and
making officers of the Borrower
available at reasonable times for discussions with the Agent and the Lenders.

          SECTION
4. AGREEMENT TO FORBEAR.

	
 

	
 

	
 

	
 

	
(a)
      For purposes of this Section 4, the following
 terms have the meanings set forth
 below:

                    (i)
     “Forbearance Default” means (i) the occurrence of
any Default or Event of Default
under Section 8.1(g), (h), (i), (k) or (1) of the Credit Agreement, (ii) any
representation made by Borrower under
or in connection with this Agreement shall prove to be false in any material
respect as of the date when made, (iii) the Borrower shall fail to comply with
the terms of Section 3 of this
Agreement, (iv) any fraud by the Borrower or any of its Subsidiaries shall be discovered by or come to the attention of the
Agent, or (v) the exercise by the First Lien Agent of any rights or remedies under the First Lien
Credit Agreement or any other First Lien Loan Document. 

                    (ii)
     “Forbearance Period” means the period beginning
on the date of the occurrence of any
Event of Default that may exist on the date hereof or may occur after the date hereof (in each case, other than a Forbearance
Default) and prior to the Forbearance Termination Date and ending on the Forbearance Termination
Date. 

                    (iii)
   “Forbearance Termination Date” means the
earlier to occur of (i) 5:00 p.m. (Chicago time) on June 15, 2008, and (ii) the
date upon which a Forbearance Default occurs.

                    (b)
     Solely
during the Forbearance Period, the Agent and Lenders hereby agree to forbear from exercising any of their rights and
remedies against the Borrower and the Guarantors
that may exist by virtue of any Event of Default under the Credit Agreement or
any of the other Loan Documents
solely related to the breach of Section (b) of Annex E to the Credit Agreement with respect to the Fiscal Quarter
ending on or about March 31, 2008, Section (d) to Annex E to the Credit Agreement with respect to
the Fiscal Year ending on or about December 31, 2007, and Sections (b) and (c) of Annex G to the Credit Agreement
with respect to the Fiscal Quarter
ending on or about March 31, 2008.

                    (c)
     Nothing in
this Agreement shall be construed as a waiver of or acquiescence to any Event of Default, which Event
of Default shall continue in existence notwithstanding the agreement of
the Agent and Lenders, as set forth herein, to forbear in the exercise of
rights and remedies against Borrower and the Guarantors on the terms and for
the period set forth herein. Except as
expressly provided herein, the execution and delivery of this Agreement shall not: (i) constitute an extension,
modification, or waiver of any term or aspect of the Credit Agreement or the other Loan Documents; (ii) extend the terms
of the Credit Agreement or the due
date of any of the Obligations; (iii) give rise to any obligation on the part of the Agent or Lenders to extend, modify or waive
any term or condition of the Credit Agreement
or any of the other Loan Documents; or (iv) give rise to any defenses or counterclaims to the right of the Agent or Lenders
to compel payment of the Obligations or to otherwise enforce their rights and remedies under the Credit Agreement
and the other Loan Documents. Except
as expressly limited herein, the Agent and Lenders hereby expressly reserve all of their rights and remedies under the Loan
Documents and under applicable law with respect to the Pending Event of Default. From and after the Forbearance Termination
Date, the Agent and Lenders shall be
entitled to enforce the Loan Documents according to the terms of the Loan Documents.

          SECTION 5.
CONDITIONS PRECEDENT TO EFFECTIVENESS OF AMENDMENT. This Agreement shall become effective upon the date that Borrower,
Agent and the Requisite Lenders shall have executed and delivered this
Agreement (the “Effective Date”).

2

          SECTION
6. COSTS AND EXPENSES. Borrower agrees to pay all reasonable costs and
expenses of Agent in connection with the negotiation, preparation, printing,
typing, reproduction, execution and delivery of this Agreement and all other
documents furnished pursuant hereto or in connection herewith, including
without limitation, the reasonable fees and out-of-pocket expenses of Winston
& Strawn LLP, special counsel to Agent, as well as other attorney costs,
independent public accountants and other outside experts retained by Agent in
connection with the administration of this Amendment.

          SECTION
7. REFERENCES TO AND EFFECT ON THE CREDIT AGREEMENT.

                    (a)     On
and after the Effective Date each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each
reference to the Credit Agreement in the Loan Documents and all other documents
delivered in connection with the Credit Agreement shall mean and be a reference
to the Credit Agreement giving effect to this Agreement.

                    (b)     The
Credit Agreement and the Loan Documents shall remain in full force and effect
and are hereby ratified and confirmed.

                    (c)     Except
as expressly set forth herein, the execution, delivery and effectiveness of
this Agreement shall not operate as a waiver of any right, power or remedy of
the Lenders or Agent under the Credit Agreement or the Loan Documents.

          SECTION
8. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any
number of separate counterparts, each of which shall collectively and separately
constitute one agreement.

          SECTION 9.
GOVERNING LAW.      THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED, IN ALL RESPECTCS, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA. THE BORROWER HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL HAVE
EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE
BORROWER, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR TO ANY MATTER
ARISING OUT OF OR RELATING TO THIS AGREEMENT; PROVIDED, THAT AGENT,
LENDERS AND THE BORROWER ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY
HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY AND; PROVIDED,
FURTHER THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.
THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN
ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY
WAIVES ANY OBJECTION THAT THE BORROWER MAY HAVE BASED UPON

3

LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. THE BORROWER
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED
IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS
AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH
CREDIT PARTY AT THE ADDRESS SET FORTH IN ANNEX I OF THE CREDIT AGREEMENT
AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE
BORROWER’S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER DEPOSIT IN THE UNITED STATES
MAILS, PROPER POSTAGE PREPAID.

          SECTION
10. HEADINGS. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purposes.

[signature pages follow]

4

          IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized as of the date
above first written.

	
 

	
 

	
 

	
 

	
BUTLER
 SERVICE GROUP, INC.

	
 

	
 

	
 

	
 

	
By:

	
/s/ Antonio Mateo

	
 

	

	
 

	
Name:

	
  Antonio
 Mateo

	
 

	

	
 

	
Title:

	
Vice President
 & Treasurer

	
 

	
 

	

	
 

	
 

	
 

	
 

	
MONROE
 CAPITAL MANAGEMENT

	
 

	
ADVISORS
 LLC, in its individual capacity and as 

 Agent

	
 

	
 

	
 

	
 

	
By:

	
/s/ Mark
 Bohntinsky

	
 

	

	
 

	
Name:

	
  Mark
 Bohntinsky

	
 

	

	
 

	
Title:

	
        SVP

	
 

	
 

	

	
 

	
 

	
 

	
 

	
MC FUNDING USTRS II, LLC

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Joseph Tansey

	
 

	

	
 

	
Name:  Joseph
 Tansey

	
 

	
 

	

	
 

	
Title:  Authorized
 Signatory

	
 

	
 

	

	
 

	
 

	
 

	
 

	
MC FUNDING,
 LTD.

	
 

	
By: Monroe
 Capital Management, LLC,

 as Collateral Manager

	
 

	
 

	
 

	
 

	
By:

	
/s/ Mark Bohntinsky

	
 

	

	
 

	
Name:

	
  Mark Bohntinsky

	
 

	

	
 

	
Title:

	
        SVPAPPENDIX A

Exhibit 10.1

AMENDED AND RESTATED STOCK COMPENSATION PLAN AND POLICY

FOR NON-EMPLOYEE DIRECTORS OF D&E COMMUNICATIONS, INC.

WHEREAS, D&E Communications, Inc. (the "Company") desires to advance the interests of the Company and its stockholders by attracting and retaining highly qualified, non-employee directors; 

WHEREAS, the Company desires to promote in its non-employee directors the strongest interest in the successful operation of the Company's business and the fulfillment of their fiduciary duties; 

WHEREAS, the Company desires to provide a vehicle to adequately compensate non-employee directors and to enhance accomplishment of the Company's objectives; 

WHEREAS, the Board of Directors believes that a Non-Employee Director Compensation Plan and Policy that encourages non-employee directors to choose the option of equity-based compensation is in the best interests of the Company and its respective constituencies; 

WHEREAS, the Board of Directors of the Company approved and adopted the components of this 2001 Stock Compensation Plan and Policy for Non-Employee Directors of D&E Communications, Inc. (as amended and restated hereby, the "Plan") at a duly called and convened meeting held on December 1, 2000; 

 

WHEREAS, subsequent to the initial adoption of the Plan, the Board of Directors of the Company approved and adopted amendments to the Plan to (i) provide that a fixed dollar amount is to be applied to the purchase of shares of the Company's common stock, rather than a fixed number of shares being purchased, and (ii) increase the number of shares available for issuance pursuant to the plan by 85,000 shares, for a total of 100,000 shares; and

WHEREAS, the Plan provides non-employee directors with the opportunity to elect to receive one-half of their annual retainer in the form of shares of the Company's common stock and the Board of Directors wishes to amend and restate the Plan to (i) allow non-employee directors to elect to receive all or any fraction of any fees received as directors in the form of shares of the Company's common stock, (ii) provide for elections to be made in a manner that complies with Rule 10b5-1 under the Securities Exchange Act of 1934 ("Rule 10b5-1") and (iii) make certain other amendments.

NOW, THEREFORE, in consideration for the premises and of the covenants herein contained, it is hereby agreed by the Company as follows: 

	Term.  This Plan shall take effect as of May 29, 2008, and shall continue in effect until all shares of common stock issuable under the Plan have been issued, or until the Board of Directors, in its sole discretion, amends or terminates this Plan. 

	Stock.  The Company may issue under this Plan up to an aggregate total of one hundred thousand (100,000) shares of the Company's common stock, par value $.16 per share ("Stock"). Such amount shall be adjusted pursuant to Paragraph 7 of this Plan. The shares of Stock issued under this Plan may be authorized and unissued shares of Stock, authorized shares of Stock issued by the Company and subsequently reacquired by it as treasury stock or shares of Stock purchased in the open market. The Company may, but shall not be required to, issue any fractional shares of Stock under this Plan. 

	Eligibility and Participation.  All directors of the Company who are not employees of the Company, or of a subsidiary of the Company, are eligible to participate in this Plan. 

	Awards.  

	On or about the first day of the month subsequent to the annual meeting of the shareholders of the Company during each fiscal year of the Company (a "Commencement Date"), each non-employee director who participates in the Plan shall be entitled to receive shares of the Stock with a value equal to one-half of the annual retainer paid to such director in respect of his or her service as a director of the Company, based on the value of the Stock as set forth in Paragraph 8 below, and subject to opt-out only as provided in Paragraph 5 below. The amount of the annual award may be amended by resolution of the Board of Directors on an annual basis. If a non-employee director is first elected to the Board after the award has been made for a particular year, he or she may receive an award of Stock for such year, provided the number of shares issuable to him or her shall be prorated. 
	In addition to the provisions of Paragraph 4(a), a non-employee director may elect to receive shares of the Stock with a value equal to  all or any fraction of the other fees received as a director (all fees other than the annual retainer, including fees paid for chairmanship of the Board of Directors or any committee thereof and any attendance fees relating to meetings of the Board of Directors or any committee thereof) based on the value of the Stock as set forth in Paragraph 8 below.  The manner of making such election and revocation of such election shall be determined by the Company and its counsel so as to comply with the provisions of Rule 10b5-1 and participants' elections to participate in the Plan may be required to be in a writing which adopts the provisions of Paragraphs 4 and 13 herein as the participants'  "plans" under Rule 10b5-1(c)(1)(i).  During each fiscal year, issuance of Stock under this Paragraph 4(b) shall be made quarterly in four issuances, with the first issuance occurring on the applicable Commencement Date and with the remaining three issuances for such fiscal year occurring on the first day of each three-month anniversary of such Commencement Date.

	Opt-Out Provision.  Any non-employee director who is a director of the Company on January 1, 2001 may elect, in the manner provided in this Paragraph 5, to receive cash payments in lieu of the shares of stock which otherwise would be awarded to such director under Paragraph 4(a) of this Plan. This election to receive cash in lieu of Stock may be made only one time, by executing and delivering to the Secretary of the Company a written declaration stating that the director does not wish to receive one-half of his or her annual compensation in the form of Stock. Such election may be revoked at any time in the future, but thereafter may not be reinstated.

	Significant Transactions.  The grant of shares of Stock under this Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge, consolidate or dissolve, to liquidate, or to sell or transfer all or any part of its business or assets. 

	Adjustments.  In the event of any reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, issuance of rights or any other change in the capital structure of the Company, the number of shares issuable under this Plan shall be equitably adjusted to reflect the occurrence of such event. 

	Value of Shares Granted.  The shares of Stock granted under this Plan shall be valued at the fair market value of the Company's common stock, as of the date of award, with fair market value determined in a manner consistent with such determination under the Company's 2008 Long-Term Incentive Plan or any successor plan thereto. 

	Status of Shares.  The Company may, in its sole discretion, determine whether or not to register the shares of Stock issuable under this Plan under the Securities Act of 1933, as amended (the "1933 Act"), and corresponding provisions of state law. The participants in this Plan acknowledge that, absent such registration, any shares of Stock received under this Plan shall be "restricted stock" held by an affiliate under the 1933 Act. 

	Termination and Amendment. Subject to Paragraph 13 below and except as may be deemed necessary or desirable by the Company and its counsel in order to be consistent with Rule 10b5-1, this Plan may be terminated or amended, at any time, by a majority vote of all of the members of the Board of Directors at any regular or special meeting duly called and convened. In addition, the Company may suspend the award of shares under this Plan at any time and from time to time if, in the opinion of counsel to the Company, the award of shares or other operation of this Plan (a) may create liability for the Company or the recipient under the 1933 Act, the Securities Exchange Act of 1934, as amended, or the Internal Revenue Code of 1986, as amended, or (b) may be inconsistent with Rule 10b5-1. 

	Governing Law.  All questions pertaining to the construction, validity and effect of the provisions of the Plan and the rights of all persons hereunder shall be governed by the laws of the Commonwealth of Pennsylvania. 

	Rules of Construction.  Headings are given to the sections of the Plan solely as a convenience to facilitate reference.

	Rule 10b5-1.  The elections to be made and the issuance of Stock under this Plan shall be made pursuant to the requirements, and in conformity with the provisions, of Rule 10b5-1, and this Plan shall be deemed to be a plan established by the Company and the participating directors as permitted by Rule 10b5-1(c).  It is in the intent of the Company, the Board of Directors and the participating directors that this Plan comply with the requirements of Rule 10b5-1(c)(i)(B) and that this Agreement shall be interpreted to comply with the requirements of Rule 10b5-1(c).  As of the date of the adoption of this Plan, (i) neither the Company, the Board of Directors nor any participating director is in possession of any material, non-public information with respect to the Company or any of its securities, and the Board is adopting this Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 and (ii) the Company, the Board of Directors and participating directors agree not to alter or deviate from the terms of the Plan in a manner inconsistent with Rule 10b5-1 or enter into or alter a corresponding or hedging transaction or position with respect to the Stock (including, without limitation, with respect to any securities convertible or exchangeable into the common stock) during the term of this Plan.

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