Document:

Exhibit 10.1

May 09, 2008

Mr. S. Jambunathan

Chairman of the Board of Directors of HMNA

c/o HMNA

200 Park Avenue South

New York, New York 10003

Re: Amendment to Employment Agreement

Dear Mr. Quadrino:

Helios & Matheson North America – HMNA, (“Company”) hereby agrees to amend your Employment Agreement dated as of May 01, 2006 (“Agreement”) entered into by and between The A Consulting Team Inc. (former name of HMNA) and yourself, Salvatore M. Quadrino, (“Employee”) as follows

	
                        (1)
 	
                        The content in Section 1 of Agreement will be replaced by the content provided in this bullet point (1) of this Amendment.
 

The Company hereby employs Employee as Chief Financial Officer. The Company, HMNA, will provide Employee with an office and appropriate computer and communications at metropolitan area office. Employee hereby accepts employment in such capacity and conditions as hereinafter set forth.

In addition, for the interim period, beginning with the date of ratification of this Amendment and until Company appoints a new Chief Executive Officer, Company offers and Employee accepts the responsibility of Interim Chief Executive Officer, in addition to Employee’s role & responsibility as Chief Financial Officer.

When Company hires a new Chief Executive Officer, Employee will revert back to the original role of Chief Financial Officer.

As a condition of continued Employment, Employee agrees to perform as expected by the Company in the capacity of Chief Financial Officer and Interim Chief Executive Officer, and bear all appropriate responsibilities, including SEC related responsibilities that roles of Chief Financial Officer and Chief Executive Officer have to bear.

	
                        (2)
 	
                        The content in Section 2 of Agreement will be replaced by the content provided in this bullet point (2) of this Amendment.
 

This Agreement is for the time period May 1st 2008 to June 30th 2009 (Term). Thereafter, the Agreement will automatically renew for additional 1-year terms (Renewal Terms), unless either Party (Company or Employee) conveys in writing to the other, of its intention not to renew the Agreement at least 30 days prior to the end of the

 

 

corresponding Term. Termination of Agreement by the Company will be governed by the provisions of Section 8. The entire period in effect is hereinafter referred to as the “Employment Period”.

	
                        (3)
 	
                        The content in Section 3 of Agreement will be replaced by the content provided in this bullet point (3) of this Amendment.
 

The Company shall pay to Employee the following compensation for all the services to be rendered by Employee in any capacity:

	
                         
 	
                        •
 	
                        A base salary at the rate of $200,000 per year (annual base salary of Two Hundred Thousand US Dollars) payable twice a month, less all applicable and required federal, state, local and authorized deductions.
 

	
                         
 	
                        •
 	
                        Upon approval by the Board of Directors, the Company shall grant to Employee options to shares of Company Common Stock, from time to time, in accordance with the terms of Company’s Stock Option and Award Plan.
 

	
                         
 	
                        •
 	
                        A Performance Based Bonus that is modifiable quarterly, semi-annually, or annually, for expected performance, as reasonably determined appropriate by Company, to motivate Employee to help achieve the operational and financial goals of Company. The Performance Based Bonus plan along with Performance Goals for Employee will be separately specified as Performance Target and Bonus Plan (hereinafter called Performance Plan). Performance Plan may be reasonably and periodically specified or modified by Company, at its sole discretion, in the interests of Company and all of its stakeholders.
 

	
                         
 	
                        •
 	
                        The use of a Company car and reimbursement of all related usage expenses. The expenses will be capped at $500 per month, or $6,000 per annum, for all car usage related expenses, except for car repairs, which the Company will pay in addition to this budgeted cap.
 

	
                         
 	
                        •
 	
                        Employee shall be entitled to participate in the Company’s employee and fringe benefit plans and programs and shall be entitled to sick days and personal days in accordance with the Company’s PTO policy for the Chief Financial Officer’s position.
 

As long as Company offers and Employee continues to take on the responsibility of Interim Chief Executive Officer, an additional gross salary at the rate of $60,000 per year (additional annual salary of Sixty Thousand US Dollars) payable twice a month, less all applicable and required federal, state, local and authorized deductions, will be paid to Employee. This additional compensation will be withdrawn when Company withdraws the position of Interim Chief Executive Officer from Employee.

 

 

	
                        (4)
 	
                        The content in Section 8 of Agreement will be replaced by the content provided in this bullet point (3) of this Amendment.
 

The Employment Period shall be terminated at the time of the death of Employee or may be terminated by Company if Employee shall fail to render the services provided for hereunder for a continuous period of ninety (90) days because of Employee’s physical or mental disability. Notwithstanding anything to the contrary herein, either party may terminate the Employment Period, with or without cause and for any reason whatsoever, by giving thirty (30) days prior notice to the other party.

In the event Company terminates Employee without Cause, death or disability, or if the Employee should resign for a Sufficient Reason, as defined in this Employment Agreement, Employee shall be entitled to receive as severance an amount equal to Six (6) months of Employee’s then current base salary. In the event, Company terminates Employee without Cause within 6 months after the appointment of a new Chief Executive Officer, Employee shall be entitled to receive as severance an additional amount equal to Three (3) months of Employee’s then current base salary.

For purposes of this Section 8, “Cause” shall mean: (a) Employee’s embezzlement, negligence, willful breach of fiduciary duty or fraud with regard to Company or any of Company’s assets or businesses, (b) Employee’s conviction of, or pleading of nolo contendere with regard to a felony (other than a traffic violation) or any other crime involving moral turpitude and involving activity related to the affairs of Company, (c) Employee’s refusal or negligence in carrying out lawful requests or directives of the Company after such requests or directives were issued after discussion with Employee, and (d) any other breach by Employee of a material provision of this Agreement that remains uncured for thirty (30) days after written notice thereof is given to Employee.

In the event Company terminates the Employment Period for Cause, Company’s sole obligation is to pay Employee for that period actually worked by Employee (plus any commissions and/or vacation pay due for that period, if applicable).

Employee may terminate the Employment Period for “Sufficient Reason” in accordance with the provisions hereof. For purposes of this Agreement, Sufficient Reason shall mean any material reduction in Employee’s base compensation by more than 25%, requirement by the Company for the Employee to work from any location more than 50 miles away from the current office location, or a written request by the Company to perform illegal acts including but not limited to violating SEC or NASDAQ rules or regulations.

 

 

Please acknowledge your agreement to such extension of Employment by executing a copy of this letter agreement and returning such executed copy to the Company.

 

	
                        Helios & Matheson North America
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        /s/ Srinivasaiyer Jambunathan
 	
                         
 	
                         
 	
                         
 
	
                        Mr. S. Jambunathan
 	
                         
 	
                         
 	
                         
 
	
                        Chairman of the Board of Directors of HMNA
 	
                         
 	
                         
 	
                         
 

 

	
                        Acknowledged and Agreed
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        /s/ Salvatore M. Quadrino
 	
                         
 	
                         
 	
                         
 
	
                        Mr. Salvatore M. Quadrino
 	
                         
 	
                         
 	
                        Date 5/9/2008Exhibit 10.1

AMENDMENT NO. 1 TO

THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

Amendment No. 1 to Third Amended and Restated Loan and Security Agreement, dated as of January 1, 2008 (this ‘‘Amendment’’), by and among Wachovia Bank, National Association, successor by merger to Congress Financial Corporation, in its capacity as agent (in such capacity, ‘‘Agent’’), acting for and on behalf of Lenders (as hereinafter defined), the financial institutions from time to time parties to the Loan Agreement (as hereinafter defined) as lenders (‘‘Lenders’’), Atlantic Express Transportation Corp., a New York corporation (‘‘Parent’’), Amboy Bus Co., Inc., a New York corporation (‘‘Amboy’’), Atlantic Escorts Inc., a New York corporation (‘‘Atlantic Escorts’’), Atlantic Express Coachways, Inc., a New Jersey corporation (‘‘Coachways’’), Atlantic Express New England, Inc., a Massachusetts corporation (‘‘AE-NE’’), Atlantic Express of California, Inc., a California corporation (‘‘AE-CA’’), Atlantic Express of Illinois, Inc., an Illinois corporation (‘‘AE-I’’), Atlantic Express of L.A., Inc., a California corporation (‘‘AELA’’), Atlantic Express of Missouri Inc., a Missouri corporation (‘‘AE Missouri’’), Atlantic Express of New Jersey, Inc., a New Jersey corporation (‘‘AENJ’’), Atlantic Express of Pennsylvania, Inc., a Delaware corporation (‘‘AEP’’), Atlantic Express of Upstate New York, Inc., formerly known as TNT Bus Service, Inc., a New York corporation (‘‘AE Upstate’’), Atlantic Transit Corp., a New York corporation (‘‘ATC’’), Atlantic-Hudson, Inc., a New York corporation (‘‘AH’’), Atlantic Paratrans, Inc., a New York corporation (‘‘AP’’), Atlantic Paratrans of NYC, Inc., a New York corporation (‘‘APNY’’), Atlantic Queens Bus Corp., a New York corporation (‘‘AQ’’), Block 7932, Inc., a New York corporation (‘‘Block’’), Brookfield Transit Inc., a New York corporation (‘‘Brookfield’’), Courtesy Bus Co., Inc., a New York corporation (‘‘Courtesy’’), Fiore Bus Service, Inc., a Massachusetts corporation (‘‘Fiore’’), Groom Transportation, Inc., a Massachusetts corporation (‘‘Groom’’), G.V.D. Leasing Co., Inc., a New York corporation (‘‘GVD’’), James McCarthy Limo Service, Inc., a Massachusetts corporation (‘‘Limo’’), Jersey Business Land Co., Inc., a New Jersey corporation (‘‘JBL’’), K. Corr, Inc., a New York corporation (‘‘Corr’’), Merit Transportation Corp., a New York corporation (‘‘Merit’’), Metro Affiliates, Inc., a New York corporation (‘‘Metro’’), Metropolitan Escort Service, Inc., a New York corporation (‘‘Metropolitan Escort’’), Midway Leasing Inc., a New York corporation (‘‘Midway’’), 180 Jamaica Corp., a New York corporation (‘‘Jamaica’’), R. Fiore Bus Service, Inc., a Massachusetts corporation (‘‘FBS’’), Raybern Bus Service, Inc., a New York corporation (‘‘RBS’’), Raybern Capital Corp., a New York corporation (‘‘RBC’’), Raybern Equity Corp., a New York corporation (‘‘REC’’), Robert L. McCarthy & Son, Inc., a Massachusetts corporation (‘‘McCarthy’’), Staten Island Bus, Inc., a New York corporation (‘‘SI-Bus’’), Temporary Transit Service, Inc., a New York corporation (‘‘TTS’’), Transcomm, Inc., a Massachusetts corporation (‘‘Transcomm’’), Winsale, Inc., a New Jersey corporation (‘‘Winsale’’ and together with Parent, Amboy, Atlantic Escorts, Coachways, AE-NE, AE-CA, AE-I, AELA, AE Missouri, AENJ, AEP, AE Upstate, ATC, AH, AP, APNY, AQ, Block, Brookfield, Courtesy, Fiore, Groom, GVD, Limo, JBL, Corr, Merit, Metro, Metropolitan Escort, Midway, Jamaica, FBS, RBS, RBC, REC, McCarthy, SI-Bus, TTS and Transcomm, each individually a ‘‘Borrower’’ and collectively, ‘‘Borrowers’’) and the parties hereto from time to time as guarantors (each individually a ‘‘Guarantor’’ and collectively, ‘‘Guarantors’’, as defined in the Loan Agreement).

1

WITNESSETH :

WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered into financing arrangements pursuant to which Agent and Lenders may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Third Amended and Restated Loan and Security Agreement, dated as of May 15, 2007, by and among Agent, Borrowers, Guarantors and Lenders (as amended, modified, supplemented, extended, renewed, restated or replaced the ‘‘Loan Agreement’’, and together with all agreements, documents and instruments at any time executed and/or delivered in connection therewith or related thereto, as from time to time amended, modified, supplemented, extended, renewed, restated or replaced, collectively, the ‘‘Financing Agreements’’). All capitalized terms used herein shall have the meanings assigned thereto in the Loan Agreement and the other Financing Agreements, unless otherwise defined herein;

WHEREAS, Borrowers and Guarantors have requested that Agent and Lenders make certain amendments to the Loan Agreement, and Agent and Lenders are willing to agree to such request, and make certain other amendments to the Loan Agreement, subject to the terms and conditions set forth herein; and

WHEREAS, by this Amendment, Agent, Lenders, Borrowers and Guarantors wish and intend to evidence such amendments.

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

1.    Definitions. For purposes of this Amendment, unless otherwise defined herein, all terms used herein shall have the respective meanings assigned to such terms in the Loan Agreement and the other Financing Agreements.

2.    Minimum EBITDA. Section 9.17 of the Loan Agreement is hereby amended by deleting clause (b) to the proviso of such Section in its entirety and replacing it with the following:

‘‘(b) solely for purposes of this Section 9.17: (i) the calculation of EBITDA shall not include the effects of any non cash accounting adjustments for FASB 133, and (ii) for the period from January 1, 2008 through and including February 15, 2009, the calculation of the Borrowing Base for purposes of the calculation of Excess Availability shall not include Reserves established to reflect obligations, liabilities or indebtedness (contingent or otherwise) of Borrowers or Guarantors to Agent or any Bank Product Provider arising under or in connection with any Hedge Agreement in an amount of up to $5,000,000; and’’.

3.    Additional Representations, Warranties and Covenants. Each Borrower and Guarantor, jointly and severally, represents, warrants and covenants with and to Agent and Lenders as follows, which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof, and the truth and accuracy of, or compliance with each, together with the representations, warranties and covenants in the other Financing Agreements, being a continuing condition of the making of Loans by Agent or any Lender to Borrowers:

(a)    This Amendment has been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Guarantor which is a party hereto and, if necessary, their respective members or stockholders, as the case may be, and are in full force and effect as of the date hereof, as the case may be, and the agreements and obligations of Borrowers and Guarantors contained herein constitute legal, valid and binding obligations of Borrowers and Guarantors enforceable against them in accordance with their terms.

(b)    As of the date hereof, all of the representations and warranties set forth in the Loan Agreement and the other Financing Agreements are true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct as of such date.

2

(c)    Neither the execution, delivery and performance of this Amendment, nor the consummation of any of the transactions contemplated herein (i) are in contravention of law or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound (including without limitation the Note Indenture) or (ii) violates any provision of the certificate of incorporation, certificate of formation, operating agreement, by-laws or other governing documents of any Borrower or Guarantor.

(d)    No Default or Event of Default exists or has occurred and is continuing as of the date of this Amendment.

4.    Conditions Precedent. The effectiveness of the amendments contained herein shall be subject to the satisfaction of each of the following, in a manner satisfactory to Agent and its counsel:

(a)    Agent shall have received this Amendment, duly authorized, executed and delivered by Borrowers and Guarantors; and

(b)    No Default or Event of Default shall have occurred and be continuing as of the date of this Amendment.

5.    Effect of this Amendment. Except as expressly set forth herein, no other amendments, consents, changes or modifications to the Financing Agreements are intended or implied, and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof and Borrowers shall not be entitled to any other or further amendment or consent by virtue of the provisions of this Amendment or with respect to the subject matter of this Amendment. To the extent of conflict between the terms of this Amendment and the other Financing Agreements, the terms of this Amendment shall control. The Loan Agreement and this Amendment shall be read and construed as one agreement.

6.    Further Assurances. The parties hereto shall execute and deliver such additional documents and take such additional action as may be necessary or desirable to effectuate the provisions and purposes of this Amendment.

7.    Governing Law. The validity, interpretation and enforcement of this Amendment and any dispute arising out of the relationship between the parties hereto shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

8.    Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

9.    Headings. The headings listed herein are for convenience only and do not constitute matters to be construed in interpreting this Amendment.

10.    Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original and all of which shall together constitute but one and the same agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto. Delivery of an executed counterpart of this Amendment by telefacsimile or other means of electronic transmission shall have the same force and effect as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or other means of electronic 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 binding effect of this Amendment as to such party or any other party.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, Agent, Lenders, Borrowers and Guarantors have caused these presents to be duly executed as of the day and year first above written.

		BORROWERS

		ATLANTIC EXPRESS TRANSPORTATION CORP.

		AMBOY BUS CO., INC.

		ATLANTIC ESCORTS INC.

		ATLANTIC EXPRESS COACHWAYS, INC.

		ATLANTIC EXPRESS NEW ENGLAND, INC.

		ATLANTIC EXPRESS OF CALIFORNIA, INC.

		ATLANTIC EXPRESS OF ILLINOIS, INC.

		ATLANTIC EXPRESS OF L.A., INC.

		ATLANTIC EXPRESS OF MISSOURI INC.

		ATLANTIC EXPRESS OF NEW JERSEY, INC.

		ATLANTIC EXPRESS OF PENNSYLVANIA, INC.

		ATLANTIC EXPRESS OF UPSTATE NEW YORK, INC.

		ATLANTIC TRANSIT CORP.

		ATLANTIC-HUDSON, INC.

		ATLANTIC PARATRANS, INC.

		ATLANTIC PARATRANS OF NYC, INC.

		ATLANTIC QUEENS BUS CORP.

		BLOCK 7932, INC.

		BROOKFIELD TRANSIT INC.

		COURTESY BUS CO., INC.

		FIORE BUS SERVICE, INC.

		GROOM TRANSPORTATION, INC.

		G.V.D. LEASING CO., INC.

		JAMES MCCARTHY LIMO SERVICE, INC.

		JERSEY BUSINESS LAND CO., INC.

		K. CORR, INC.

		MERIT TRANSPORTATION CORP.

		METRO AFFILIATES, INC.

		METROPOLITAN ESCORT SERVICE, INC.

		MIDWAY LEASING INC.

		180 JAMAICA CORP.

		R. FIORE BUS SERVICE, INC.

		RAYBERN BUS SERVICE, INC.

		RAYBERN CAPITAL CORP.

4

		RAYBERN EQUITY CORP.

		ROBERT L. MCCARTHY & SON, INC.

		STATEN ISLAND BUS, INC.

		TEMPORARY TRANSIT SERVICE, INC.

		TRANSCOMM, INC.

		WINSALE, INC.

		By: /s/ Nathan Schlenker                            

		Title: Chief Financial Officer

AGENT AND LENDERS

WACHOVIA BANK, NATIONAL ASSOCIATION,

successor by merger to Congress Financial Corporation,

as Agent and as Lender

By: /s/ Herbert Korn                                                

Title: Director

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]