Document:

Exhibit
10.47

     

    ENER1,
INC.

    AMENDED
AND RESTATED

    2007
STOCK INCENTIVE PLAN

     

    The Board
of Directors of Ener1, Inc. (the "Company") has determined, pursuant to
resolutions dated August 19, 2008, November 18, 2008 and March 13, 2009, that it
is in the best interests of the Company to amend the Ener1, Inc. 2007 Stock
Incentive Plan (the "Original Plan") as provided herein.  Therefore,
effective as of May 7, 2009, the Original Plan is amended and restated to read
as follows:

     

    
      
        	
                1.

              	
                Purpose

              

      

    

    

    The
purpose of the Ener1, Inc. Amended and Restated 2007 Stock Incentive Plan (the
“Plan”) is to advance the interests of the Company by stimulating the efforts of
employees, officers, non-employee directors and other service providers, in each
case who are selected to be participants, by heightening the desire of such
persons to continue in working toward and contributing to the success and
progress of the Company and its Subsidiaries.  The Plan provides for
the grant of Incentive Stock Options and Non-Qualified Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, and Deferred
Stock Units, any of which may be performance-based, and for Incentive Bonuses,
which may be paid in cash or stock or a combination thereof, as determined by
the Administrator.  It is intended that (i) all Options and Stock
Appreciation Rights be exempt from the requirements of Code Section 409A
pursuant to Treasury Regulations Section 1.409A-(b)(5) and (ii) that all other
grants under the Plan either be exempt from or satisfy the requirements of Code
Section 409A and the regulations thereunder, and the Plan and all Award
Agreements shall be interpreted to reflect such intent.

     

    
      
        	
                2.

              	
                Definitions

              

      

    

    

    As used
in the Plan, the following terms shall have the meanings set forth
below:

     

    (a)           “Administrator”
means the Administrator of the Plan in accordance with
Section 17.

    

    (b)           “Award”
means an Incentive Stock Option, Non-Qualified Stock Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit, Deferred Stock Unit or Incentive
Bonus granted to a Participant pursuant to the provisions of the Plan, any of
which the Administrator may structure to qualify in whole or in part as a
Performance Award.

    

    (c)           “Award
Agreement” means a written agreement or other instrument as may be approved from
time to time by the Administrator implementing the grant of each
Award.  An Agreement may be in the form of an agreement to be executed
by both the Participant and the Company (or an authorized representative of the
Company) or certificates, notices or similar instruments as approved by the
Administrator.

    

    (d)           “Board
of Directors” or “Board” means the Board of Directors of the
Company.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (e)           “Cause”
means (i) failure or refusal of the Participant to perform the duties and
responsibilities that the Company requires to be performed by him, (ii) gross
negligence or willful misconduct by the Participant in the performance of his
duties, (iii) commission by the Participant of an act of dishonesty
affecting the Company, or the commission of an act constituting common law fraud
or a felony, or (iv) the Participant’s commission of an act (other than the
good faith exercise of his business judgment in the exercise of his
responsibilities) resulting in material damages to the
Company.  Notwithstanding the above, if an Participant and the Company
have entered into an employment or consulting agreement which defines the term
“Cause” for purposes of such employment or consulting agreement, “Cause” shall
be defined pursuant to the definition in such employment or consulting agreement
with respect to such Participant’s Options.  The Administrator shall
determine in its sole discretion whether Cause exists for purposes of this
Plan.

    

    (f)           "Change
in Control" shall be deemed to occur with respect to the Company if a person or
group of persons shall acquire direct or indirect beneficial ownership (whether
as a result of stock ownership, revocable or irrevocable proxies, or otherwise)
of securities of the Company pursuant to a transaction or series of related
transactions, such that after the consummation and as a result of such
transaction(s), the persons constituting all of the equity holders of the
Company immediately prior to the commencement of such transactions(s) fail to
directly or indirectly own, immediately after the consummation of such
transactions(s), more than 50% of (i) the total combined voting power with
respect to the election of directors of the Company or (ii) the issued and
outstanding common equity of the Company (or surviving entity, in the case of a
merger, consolidation, asset sale, or similar
transaction).  Notwithstanding the preceding provisions, to the extent
that the term "Change in Control" is applied to any Award that is subject to
Code Section 409A, a Change in Control shall not be deemed to have occurred
unless the event or services of events satisfies the definition specified above
and also constitutes a change in the effective ownership or control of the
corporation or in the ownership of a substantial portion of the assets of the
corporation within the meaning of Code Section 409A(a)(2)(A)(v) and the
regulations thereunder.

    

    (g)           “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
rulings and regulations issued thereunder.

    

    (h)           “Common
Stock” means the Company’s common stock, par value $0.001, subject to adjustment
as provided in Section 12.

    

    (i)           “Company”
means Ener1, Inc., a Florida corporation.

    

    (j)           “Deferred
Stock Unit” or “DSU” means an Award granted pursuant to Section 9
representing the unfunded and unsecured right to receive Common Stock or cash or
a combination thereof, as determined by the Administrator, at the end of a
specified deferral period.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (k)           “Incentive
Bonus” means a bonus opportunity awarded under Section 10 pursuant to which
a Participant may become entitled to receive an amount based on satisfaction of
such performance criteria as are specified in the Award Agreement.

    

    (l)           “Incentive
Stock Option” or “ISO” means a stock option that is intended to qualify as an
incentive stock option within the meaning of Section 422 of the
Code.

    

    (m)           “Nonemployee
Director” means each person who is, or is elected to be, a member of the Board
of Directors and who is not an employee of the Company (but may be an employee
of a Subsidiary or other affiliated entity).

    

    (n)           “Option”
means an ISO and/or a NQSO granted pursuant to Section 6 of the
Plan.

    

    (o)           “Participant”
means any individual described in Section 3 to whom Awards have been
granted from time to time by the Administrator and any authorized transferee of
such individual.

    

    (p)           “Performance
Award” means an Award, the grant, issuance, retention, vesting or settlement of
which is subject to satisfaction of one or more performance criteria established
pursuant to Section 13.

    

    (q)           “Plan”
means this Amended and Restated Ener1, Inc. 2007 Stock Incentive Plan, as set
forth herein and as amended from time to time.

    

    (r)           “Restricted
Stock” means shares of Common Stock granted pursuant to Section 8 of the
Plan.

    

    (s)           “Restricted
Stock Unit” means an Award granted to a Participant pursuant to Section 8
pursuant to which shares of Common Stock may be issued in the
future.

    

    (t)           “Stock
Appreciation Right” means a right granted pursuant to Section 7 of the Plan
that entitles the Participant to receive, in cash or shares of Common Stock or a
combination thereof, as determined by the Administrator, value equal to or
otherwise based on the excess of (i) the market price of a specified number
of shares of Common Stock at the time of exercise over (ii) the exercise
price of the right, as established by the Administrator on the date of
grant.  The exercise price of a Stock Appreciation Right shall not be
less than the fair market value on the date of grant of the number a shares of
Common Stock subject to the Stock Appreciation Right.

    

    (u)           “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company where each of the corporations in the
unbroken chain other than the last corporation owns stock possessing at least 50
percent or more of the total combined voting power of all classes of stock in
one of the other corporations in the chain, and if specifically determined by
the Administrator in the context other than with respect to Incentive Stock
Options, may include an entity in which the Company has a significant ownership
interest or that is directly or indirectly controlled by the
Company.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (v)           “Termination
of employment” means ceasing to serve as a full-time employee of the Company and
its Subsidiaries or, with respect to a Nonemployee Director or service provider,
ceasing to serve as such for the Company, except that (i) subject to
Section 6(c), an approved leave of absence or approved employment on a less
than full-time basis may constitute employment as determined by the
Administrator, (ii) the Administrator may determine that a transition of
employment to service with a partnership, joint venture or corporation not
meeting the requirements of a Subsidiary in which the Company or a Subsidiary is
a party is not considered a “termination of employment,” (iii) service as a
member of the Board of Directors shall constitute continued employment with
respect to Awards granted to a Participant while he or she served as an employee
and (iv) service as an employee of the Company or a Subsidiary shall
constitute continued employment with respect to Awards granted to a Participant
while he or she served as a member of the Board of
Directors.  Notwithstanding the preceding provisions, to the extent
that the term "Termination of Employment" is applied to any Award that is
subject to Code Section 409A, the term shall be deemed to mean a "separation
from service" within the meaning of Code Section 409A(a)(2)(A)(i).

    

    (w)           “Total
and Permanent Disablement” means a “permanent and total disability” within the
meaning of Section 22(e)(3) of the Code. The determination of the
Administrator as to an individual’s Total and Permanent Disablement shall be
conclusive on all parties.

    

    
      
        	
                3.

              	
                Eligibility

              

      

    

    

    Any
person who is a current or prospective officer or employee (including any
director who is also an employee, in his or her capacity as such) of the Company
or of any Subsidiary shall be eligible for selection by the Administrator for
the grant of Awards hereunder. Any Nonemployee Director shall also be eligible
for selection by the Administrator for the grant of Awards hereunder. In
addition, any service provider who has been retained to provide consulting,
advisory or other services to the Company or to any Subsidiary shall be eligible
for selection by the Administrator for the grant of Awards hereunder. Options
intending to qualify as ISOs may only be granted to employees of the Company or
any Subsidiary within the meaning of the Code, as selected by the
Administrator.

     

    
      
        	
                4.

              	
                Effective
      Date and Termination of Plan

              

      

    

    

    This Plan
was adopted by the Board of Directors of the Company as of December 21, 2006
(the “Effective Date”), subject to the approval of the Company's
shareholders.  The Plan shall remain available for the grant of Awards
until the tenth (10th) anniversary of the Effective Date. Notwithstanding the
foregoing, the Plan may be terminated at such earlier time as the Board of
Directors may determine. Termination of the Plan will not affect the rights and
obligations of the Participants and the Company arising under Awards theretofore
granted and then in effect.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      
        	
                5.

              	
                Shares
      Subject to the Plan and to
Awards

              

      

    

    

    (a)           Aggregate Limits. The
aggregate number of shares of Common Stock issuable pursuant to all Awards shall
not exceed 4,765,764 (of which 1,898,174 shares remain available for issuance as
of May 7, 2009), any of all of which may be issuable with respect to
ISOs.  Any shares of Common Stock granted as Options or Stock
Appreciation Rights shall be counted against this limit as one (1) share for
every one (1) share granted. Any shares of Common Stock granted as Awards other
than Options or Stock Appreciation Rights shall be counted against this limit as
two and one-half (2.5) shares for every one (1) share granted.  The
aggregate number of shares of Common Stock available for grant under this Plan
and the number of shares of Common Stock subject to outstanding Awards shall be
subject to adjustment as provided in Section 12; provided, however, that no
such adjustment shall affect the status of any option intended to qualify as an
ISO under Code Section 422. The shares of Common Stock issued pursuant to
Awards granted under this Plan may be shares that are authorized and unissued or
shares that were reacquired by the Company, including shares purchased in the
open market.

    

    (b)           Issuance of Shares. For
purposes of Section 5(a), the aggregate number of shares of Common Stock
issued under this Plan at any time shall equal only the number of shares
actually issued upon exercise or settlement of an Award and shall not include
shares subject to Awards that have been canceled, expired or
forfeited.  Notwithstanding the foregoing, Shares subject to an Award
under the Plan may not again be made available for issuance under Awards if such
shares are: (i) shares that were subject to a stock-settled Stock
Appreciation Right or Stock Option and that were not issued upon the net
settlement or net exercise of such Stock Appreciation Right or Stock Option, or
(ii) shares delivered to or retained by the Company to pay the exercise price or
withholding taxes related to an Award.

    

    (c)           Tax Code Limits. The
aggregate number of shares of Common Stock subject to Options and Stock
Appreciation Rights granted under this Plan during any calendar year to any one
Participant shall not exceed 714,286, and the aggregate number of shares of
Common Stock issued or issuable under all Awards granted under this Plan other
than Options or Stock Appreciation Rights during any calendar year to any one
Participant shall not exceed 357,143, which numbers shall be calculated and
adjusted pursuant to Section 12 only to the extent that such calculation or
adjustment will not affect the status of any Award intended to qualify as
“performance based compensation” under Code Section 162(m).  The
maximum amount payable pursuant to that portion of an Incentive Bonus granted
under this Plan for any calendar year to any Participant that is intended to
satisfy the requirements for “performance based compensation” under Code
Section 162(m) shall not exceed $1,000,000.

    

    
      
        	
                6.

              	
                Options

              

      

    

    

    (a)           Option Awards. Options may be
granted at any time and from time to time prior to the termination of the Plan,
to Participants selected by the Administrator. No Participant shall have any
rights as a shareholder with respect to any shares of stock subject to Option
hereunder until said shares have been issued. Each Option shall be evidenced by
an Award Agreement. Options granted pursuant to the Plan need not be identical
but each Option must contain and be subject to the terms and conditions set
forth below.

    

    (b)           Price. The purchase price
under each Option shall be established by the Administrator, provided that in no
event will the purchase price for an Option be less than the fair market value
of the Common Stock subject to the Option on the date of grant. The purchase
price of any Option may be paid in Common Stock, cash or a combination thereof,
as determined by the Administrator, including an irrevocable commitment by a
broker to pay over such amount from a sale of the shares issuable under an
Option, the delivery of previously owned Common Stock and withholding of Common
Stock deliverable upon exercise.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (c)           Duration and Exercise or Termination
of Option. The Administrator shall have the right to make the timing of
the ability to exercise any Option subject to continued employment, the passage
of time and/or such performance requirements as deemed appropriate by the
Administrator. Unless provided otherwise in the applicable Award Agreement, the
vesting period and/or exercisability of an Option shall be adjusted by the
Administrator during or to reflect the effects of any period during which the
Participant is on an approved leave of absence or is employed on a less than
full-time basis; provided, however, the period for vesting and/or exercisability
of an Option shall under no circumstances be extended beyond the earlier of (i)
the latest date on which the Option would have expired by its original terms
under any circumstances or (ii) ten (10) years from the date of
grant.

    

    (d)           Termination of Employment:
Unless an Option earlier expires upon the expiration date established pursuant
to Section 6(c), upon the termination of the Participant’s employment, or
in the case of a Non-Employee Director's termination of service on the Board for
any reason, the Participant's to exercise an Option then held shall be only as
follows, unless the Administrator specifies otherwise:

    

    (1)           Death. Upon the death of a
Participant while in the employ of the Company or any Subsidiary or while
serving as a member of the Board of Directors, all of the Participant’s vested
Options then held shall be exercisable by his or her estate, heir or beneficiary
at any time during the twelve (12) months next succeeding the date of death
(provided, however, no Option shall be exercisable after the earlier of (i) the
latest date on which the Option would have expired by its original terms under
any circumstances or (ii) ten (10) years from the date of grant). Any and all of
the deceased Participant’s vested Options that are not exercised during such
period shall terminate as of the end of such period.

     

    (2)           Total and Permanent
Disablement. Upon termination of employment as a result of the Total and
Permanent Disablement of any Participant, all of the Participant’s vested
Options then held shall be exercisable for a period of six (6) months after
termination (or such other period provided in the applicable Award Agreement,
provided, however, no Option shall be exercisable after the earlier of (i) the
latest date on which the Option would have expired by its original terms under
any circumstances or (ii) ten (10) years from the date of grant). Any and all
vested Options that are not exercised during such period shall terminate as of
the end of such period.

     

    (3)           Cause. Upon termination of
the employment or other service of a Participant for Cause, all Options granted
to the Participant shall expire immediately, and the Participant shall have no
further right to purchase shares of Common Stock pursuant to such Options;
provided, however, the Administrator may, in its sole discretion, permit such
Participant to exercise all or any portion of such Options to the extent vested
as of the date upon which the termination occurs for a period not to exceed
thirty (30) days after such termination (provided, however, no Option shall be
exercisable after the earlier of (i) the latest date on which the Option would
have expired by its original terms under any circumstances or (ii) ten (10)
years from the date of grant).  Upon such termination, the
Participant's unvested Options shall expire, and the Participant shall have no
further right to purchase shares of Common Stock pursuant to such unvested
Options.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (4)           Other Reasons. Upon the date
of a termination of a Participant’s employment for any reason other than those
stated above in Section 6(d)(1), (d)(2), or (d)(3) or as described in
Section 15, (A) any Option that is unexercisable as of such
termination date shall remain unexercisable and shall terminate as of such date,
and (B) any Option that is exercisable as of such termination date shall
expire thirty (30) days following such date (provided, however, no Option shall
be exercisable after the earlier of (i) the latest date on which the Option
would have expired by its original terms under any circumstances or (ii) ten
(10) years from the date of grant).

    

    (e)           Incentive Stock Options.
Notwithstanding anything to the contrary in this Section 6, in the case of
the grant of an Option intending to qualify as an ISO: (i) if the
Participant owns stock possessing more than 10 percent of the combined voting
power of all classes of stock of the Company (a “10% Shareholder”), the purchase
price of such Option must be at least 110 percent (110%) of the fair market
value of the Common Stock on the date of grant, and the Option must expire
within a period of not more than five (5) years from the date of grant,
(ii) termination of employment will occur when the person to whom an Award
was granted ceases to be an employee (as determined in accordance with
Section 3401(c) of the Code and the regulations promulgated thereunder) of
the Company and its Subsidiaries. Notwithstanding anything in this
Section 6 to the contrary, options designated as ISOs shall not be eligible
for treatment under the Code as ISOs to the extent that either (iii) the
aggregate fair market value of shares of Common Stock (determined as of the time
of grant) with respect to which such Options are exercisable for the first time
by the Participant during any calendar year (under all plans of the Company and
any Subsidiary) exceeds $100,000, taking Options into account in the order in
which they were granted, and (iv) such Options otherwise remain exercisable
but are not exercised within three (3) months of Termination of employment (or
such other period of time provided in Section 422 of the
Code).

    

    (f)           Change in
Control.  Irrespective of what is provided in an Award
Agreement, in the event of a Change in Control, all outstanding Options shall
become immediately exercisable and vested, without regard to any limitation
imposed pursuant to this Plan or any Award Agreement.

    

    (g)           Other Terms and Conditions:
Options may also contain such other provisions, which shall not be inconsistent
with any of the terms of this Plan, as the Administrator shall deem
appropriate.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      
        	
                7.

              	
                Stock
      Appreciation Rights

              

      

    

    

    Stock
Appreciation Rights may be granted to Participants from time to time either in
tandem with or as a component of other Awards granted under the Plan (“tandem
SARs”) or not in conjunction with other Awards (“freestanding SARs”) and may,
but need not, relate to a specific Option granted under Section 6. The
provisions of Stock Appreciation Rights need not be the same with respect to
each grant or each recipient. Any Stock Appreciation Right granted in tandem
with an Option shall be granted at the same time such Option is granted and
subject to the same terms and conditions applicable to the Option. Subject to
the provisions of Section 6, the Administrator may impose such other
conditions or restrictions on any Stock Appreciation Right as it shall deem
appropriate. Stock Appreciation Rights may be settled in shares of Common Stock,
cash or combination thereof, as determined by the
Administrator.  Other than in connection with a change in the
Company’s capitalization (as described in Section 12) the exercise price of
a Stock Appreciation Right may not be reduced (including an effective reduction
in the exercise price by canceling previously awarded Stock Appreciation Rights
and regranting them with a lower exercise price).

     

    
      
        	
                8.

              	
                Restricted
      Stock and Restricted Stock
Units

              

      

    

    

    (a)           Restricted Stock and Restricted
Stock Unit Awards. Restricted Stock and Restricted Stock Units may be
granted at any time and from time to time prior to the termination of the Plan
to Participants selected by the Administrator. Restricted Stock is an award or
issuance of shares of Common Stock the grant, issuance, retention, vesting
and/or transferability of which is subject during specified periods of time to
such conditions (including continued employment or performance conditions) and
terms as the Administrator deems appropriate. Restricted Stock Units are Awards
denominated in units of Common Stock under which the issuance of shares of
Common Stock is subject to such conditions (including continued employment or
performance conditions) and terms as the Administrator deems appropriate. Each
grant of Restricted Stock and Restricted Stock Units shall be evidenced by an
Award Agreement. Unless determined otherwise by the Administrator, each
Restricted Stock Unit will be equal to one share of Common Stock and will
entitle a Participant to either shares of Common Stock or an amount of cash
determined with reference to the value of shares of Common Stock. To the extent
determined by the Administrator, Restricted Stock and Restricted Stock Units may
be satisfied or settled in Common Stock, cash or a combination thereof.
Restricted Stock and Restricted Stock Units granted pursuant to the Plan need
not be identical but each grant of Restricted Stock and Restricted Stock Units
must contain and be subject to the terms and conditions set forth
below.  Unless exempt from Code Section 409A by virtue of the
regulatory exemption for short-term deferrals or some other exemption,
Restricted Stock Units (but not Restricted Stock) shall be subject to Code
Section 409A, and any Restricted Stock Unit subject to Code Section 409A shall
be granted on terms that comply with the requirements of Code Section 409A and
the applicable regulations thereunder.  Notwithstanding the foregoing
and irrespective of what is provided in an Award Agreement, in the event of a
Change in Control, all outstanding shares of Restricted Stock and Restricted
Stock Units shall become immediately vested, without regard to any limitation
imposed pursuant to this Plan or any Award Agreement.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (b)           Contents of Agreement. Each
Award Agreement shall contain provisions regarding (i) the number of shares
of Common Stock or Restricted Stock Units subject to such Award or a formula for
determining such number, (ii) the purchase price of the shares, if any, and
the means of payment, (iii) the performance criteria, if any, and level of
achievement versus these criteria that shall determine the number of shares or
units granted, issued, retainable and/or vested, (iv) such terms and
conditions on the grant, issuance, vesting and/or forfeiture of the shares or
units as may be determined from time to time by the Administrator,
(v) restrictions on the transferability of the shares or units and
(vi) such further terms and conditions in each case not inconsistent with
this Plan as may be determined from time to time by the Administrator. Shares of
Common Stock issued under a Restricted Stock Award may be issued in the name of
the Participant and held by the Participant or held by the Company, in each case
as the Administrator may provide.

    

    (c)           Sales Price. Subject to the
requirements of applicable law, the Administrator shall determine the price, if
any, at which Awards of Restricted Stock or Restricted Stock Units, or shares of
Common Stock issuable under Restricted Stock Unit Awards, shall be sold or
awarded to a Participant, which may vary from time to time and among
Participants and which may be below the market price of such shares at the date
of grant.

    

    (d)           Vesting. The grant, issuance,
retention, vesting and/or settlement of shares of Restricted Stock and
Restricted Stock Units shall occur at such time and in such installments as
determined by the Administrator or under criteria established by the
Administrator. The Administrator shall have the right to make the timing of the
grant and/or the issuance, ability to retain, vesting and/or settlement of
shares of Restricted Stock and under Restricted Stock Units subject to continued
employment, passage of time and/or such performance criteria as deemed
appropriate by the Administrator; provided that in no event shall the grant,
issuance, retention, vesting and/or settlement of shares under Restricted Stock
or Restricted Stock Unit Awards that is based on performance criteria and level
of achievement versus such criteria be subject to a performance period of less
than one year from the date the Award is made, other than as a result of or upon
the death, disability or retirement of the Participant, in each case as
specified in the agreement evidencing such Award. Notwithstanding anything to
the contrary herein, the performance criteria for any Restricted Stock or
Restricted Stock Unit that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall be
a measure based on one or more Qualifying Performance Criteria selected by the
Administrator and specified at the time the Restricted Stock or Restricted Stock
Unit is granted.

    

    (e)           Discretionary Adjustments and
Limits. Subject to the limits imposed under Code Section 162(m) for
Awards that are intended to qualify as “performance based compensation,”
notwithstanding the satisfaction of any performance goals, the number of shares
of Common Stock granted, issued, retainable and/or vested under an Award of
Restricted Stock or Restricted Stock Units on account of either financial
performance or personal performance evaluations may be reduced by the
Administrator on the basis of such further considerations as the Administrator
shall determine.

    

    (f)           Voting Rights. Unless
otherwise determined by the Administrator, Participants holding shares of
Restricted Stock granted hereunder may exercise full voting rights with respect
to those shares during the period of restriction. Participants shall have no
voting rights with respect to shares of Common Stock underlying Restricted Stock
Units unless and until such shares are reflected as issued and outstanding
shares on the Company’s stock ledger.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (g)           Dividends and Distributions.
Participants in whose name Restricted Stock is granted shall be entitled to
receive all dividends and other distributions paid with respect to those shares,
unless determined otherwise by the Administrator. Any such dividends or
distributions will be subject to the same restrictions on transferability as the
Restricted Stock with respect to which they were distributed. Shares underlying
Restricted Stock Units shall be entitled to dividends or dividend equivalents
only to the extent provided by the Administrator.

    

    
      
        	
                9.

              	
                Deferred
      Stock Units

              

      

    

    

    (a)           The
Administrator may establish rules for the deferred delivery of Common Stock upon
exercise of an Option or Stock Appreciation Right and upon settlement, vesting
or other events with respect to Restricted Stock or Restricted Stock Units, or
in payment or satisfaction of an Incentive Bonus or of any other compensation
arrangement maintained by the Company or a Subsidiary, in each case with the
deferral evidenced by use of “Stock Units” equal in number to the number of
shares of Common Stock whose delivery is so deferred or to the value of the
amount being so deferred. A “Stock Unit” is a bookkeeping entry representing an
amount equivalent to the fair market value of one share of Common Stock. Unless
the Administrator specifies otherwise, Stock Units represent an unfunded and
unsecured obligation of the Company. Settlement of Stock Units upon expiration
of the deferral period shall be made in Common Stock, cash or a combination
thereof, as determined by the Administrator. The amount of Common Stock, or
other settlement medium, to be so distributed may be increased by dividend
equivalents. Unless determined otherwise by the Administrator, during the
deferral period a Participant will not have any rights as a shareholder of the
Company, including, without limitation, voting rights and the right to receive
dividends or distributions. Until a Stock Unit is so settled, the number of
shares of Common Stock represented by a Stock Unit shall be subject to
adjustment pursuant to Section 12. Any Stock Units that are settled after
the holder’s death shall be distributed to the holder’s designated
beneficiary(ies) or, if none was designated, the holder’s estate.  The
Administrator shall deliver a Deferred Stock Unit only to the extent that the
delivery of such Stock Unit would not result in the imposition of taxes under
Code Section 409A.  Notwithstanding the foregoing and irrespective of
what is provided in an Award Agreement (except for the requirements of the
preceding sentence and any provisions of an Award Agreement needed to comply
with the requirements of the preceding sentence), in the event of a Change in
Control, all outstanding Stock Units that have been deferred shall become
immediately deliverable, without regard to any limitation imposed pursuant to
this Plan or an Award Agreement.

    

    
      
        	
                10.

              	
                Incentive
      Bonuses

              

      

    

    

    (a)           General. Each Incentive Bonus
Award will confer upon the Participant the opportunity to earn a future payment
tied to the level of achievement with respect to one or more performance
criteria established for a performance period of not less than one
year.

    

    (b)           Incentive Bonus Document.
Each Award Agreement evidencing an Incentive Bonus shall contain provisions
regarding (i) the target and maximum amount payable to the Participant as
an Incentive Bonus, (ii) the performance criteria and level of achievement
versus these criteria that shall determine the amount of such payment,
(iii) the term of the performance period as to which performance shall be
measured for determining the amount of any payment, (iv) the timing of any
payment earned by virtue of performance, (v) restrictions on the alienation
or transfer of the Incentive Bonus prior to actual payment, (vi) forfeiture
provisions and (vii) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by the
Administrator.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (c)           Performance Criteria. The
Administrator shall establish the performance criteria and level of achievement
versus these criteria that shall determine the target and maximum amount payable
under an Incentive Bonus, which criteria may be based on financial performance
and/or personal performance evaluations. The Administrator may specify the
percentage of the target Incentive Bonus that is intended to satisfy the
requirements for “performance-based compensation” under Code
Section 162(m). Notwithstanding anything to the contrary herein, the
performance criteria for any portion of an Incentive Bonus that is intended by
the Administrator to satisfy the requirements for “performance-based
compensation” under Code Section 162(m) shall be a measure based on one or
more Qualifying Performance Criteria (as defined in Section 13(b)) selected
by the Administrator and specified at the time the Incentive Bonus is granted.
The Administrator shall certify the extent to which any Qualifying Performance
Criteria has been satisfied, and the amount payable as a result thereof, prior
to payment of any Incentive Bonus that is intended to satisfy the requirements
for “performance-based compensation” under Code
Section 162(m).

    

    (d)           Timing and Form of Payment.
The Administrator shall determine the timing of payment of any Incentive Bonus.
Payment of the amount due under an Incentive Bonus may be made in cash or in
shares of Common Stock, as determined by the Administrator. The Administrator
may provide for or, subject to such terms and conditions as the Administrator
may specify, may permit a Participant to elect for the payment of any Incentive
Bonus to be deferred to a specified date or event.

    

    (e)           Discretionary Adjustments.
Notwithstanding satisfaction of any performance goals, the amount paid under an
Incentive Bonus on account of either financial performance or personal
performance evaluations may be reduced by the Administrator on the basis of such
further considerations as the Administrator shall determine.

    

    
      
        	
                11.

              	
                Conditions
      and Restrictions Upon Securities Subject to
  Awards

              

      

    

    

    The
Administrator may provide that the shares of Common Stock issued upon exercise
of an Option or Stock Appreciation Right or otherwise subject to or issued under
an Award shall be subject to such further agreements, restrictions, conditions
or limitations as the Administrator in its discretion may specify prior to the
exercise of such Option or Stock Appreciation Right or the grant, vesting or
settlement of such Award, including without limitation, conditions on vesting or
transferability, forfeiture or repurchase provisions and method of payment for
the shares issued upon exercise, vesting or settlement of such Award (including
the actual or constructive surrender of Common Stock already owned by the
Participant) or payment of taxes arising in connection with an Award. Without
limiting the foregoing, such restrictions may address the timing and manner of
any resales by the Participant or other subsequent transfers by the Participant
of any shares of Common Stock issued under an Award, including without
limitation (i) restrictions under an insider trading policy or pursuant to
applicable law, (ii) restrictions designed to delay and/or coordinate the
timing and manner of sales by Participant and holders of other Company equity
compensation arrangements, and (iii) restrictions as to the use of a
specified brokerage firm for such resales or other
transfers.  Notwithstanding the foregoing and irrespective of what is
provided in an Award Agreement, in the event of a Change in Control, all
outstanding Awards shall become immediately exercisable and vested, without
regard to any limitation imposed pursuant to this Plan or any Award
Agreement.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      
        
          	
                  12.

                	
                  Adjustment
      of and Changes in the
Stock

                

        

      

    

    

    In the
event that the number of shares of Common Stock of the Company shall be
increased or decreased through a reorganization, reclassification, combination
of shares, stock split, reverse stock split, spin-off, dividend (other than
regular, quarterly cash dividends), or otherwise, then each share of Common
Stock of the Company which has been authorized for issuance under the Plan,
whether such share is then currently subject to or may become subject to an
Award under the Plan, as well as the per share limits set forth in
Section 5 of this Plan, may be proportionately adjusted by the
Administrator to reflect such increase or decrease, unless the Company provides
otherwise under the terms of such transaction. The terms of any outstanding
Award may also be adjusted by the Administrator as to price, number of shares of
Common Stock subject to such Award and other terms to reflect the foregoing
events.  For the avoidance of doubt, the number of shares of Common
Stock subject to the Plan and reflected in this Plan document takes into account
the Company's 7 for 1 reversed stock split, effectuated April 24,
2008.

     

    In the
event there shall be any other change in the number or kind of outstanding
shares of Common Stock of the Company, or any stock or other securities into
which such Common Stock shall have been changed, or for which it shall have been
exchanged, whether by reason of a Change of Control, merger, consolidation or
otherwise, then the Administrator shall, in its sole discretion, determine the
appropriate adjustment, if any, to be effected. In addition, in the event of
such change described in this paragraph, the Administrator may, to the extent
not accelerated pursuant to another provision of this Plan, accelerate the time
or times at which any Award may be exercised and may provide for cancellation of
any or all of accelerated Awards that are not exercised within a time prescribed
by the Administrator in its sole discretion. Notwithstanding anything to the
contrary herein, any adjustment to Options granted pursuant to this Plan
intended to qualify as ISOs shall comply with the applicable requirements,
provisions, and restrictions of the Code, and any adjustment to (or acceleration
of) of any Award subject to Code Section 409A or eligible for an exemption under
Code Section 409A shall comply with the applicable requirements of Code Section
409A or the exemption and the regulations applicable thereto.

     

    No right
to purchase fractional shares shall result from any adjustment in Awards
pursuant to this Section 12. In case of any such adjustment, the shares
subject to the Award shall be rounded down to the nearest whole share. Notice of
any adjustment shall be given by the Company to each Participant, which shall
have been so adjusted and such adjustment (whether or not notice is given) shall
be effective and binding for all purposes of the Plan.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      
        	
                13.

              	
                Performance-Based
      Compensation

              

      

    

    

    (a)           General. The Administrator
may establish performance criteria and level of achievement versus such criteria
that shall determine the number of shares of Common Stock to be granted,
retained, vested, issued or issuable under or in settlement of or the amount
payable pursuant to an Award, which criteria may be based on Qualifying
Performance Criteria or other standards of financial performance and/or personal
performance evaluations. In addition, the Administrator may specify a percentage
of an Award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code, provided that the
performance criteria for any portion of an Award that is intended by the
Administrator to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code shall be a measure based on one or more
Qualifying Performance Criteria selected by the Administrator and specified at
the time the Award is granted. The Administrator shall certify the extent to
which any Qualifying Performance Criteria has been satisfied, and the amount
payable as a result thereof, prior to payment, settlement or vesting of any
Award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. Notwithstanding
satisfaction of any performance goals, the number of shares issued under or the
amount paid under an award may, to the extent specified in the Award Agreement,
be reduced by the Administrator on the basis of such further considerations as
the Administrator in its sole discretion shall determine.

    

    (b)           Qualifying Performance
Criteria. For purposes of this Plan, the term “Qualifying Performance
Criteria” shall mean any one or more of the following performance criteria,
either individually, alternatively or in any combination, applied to either the
Company as a whole or to a business unit or Subsidiary, either individually,
alternatively or in any combination, and measured either annually or
cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years’ results or to a designated comparison
group, in each case as specified by the Administrator: (i) cash flow
(before or after dividends), (ii) earnings per share (including earnings
before interest, taxes, depreciation and amortization), (iii) stock price,
(iv) return on equity, (v) total shareholder return, (vi) return
on capital (including return on total capital or return on invested capital),
(vii) return on assets or net assets, (viii) market capitalization,
(ix) economic value added, (x) debt leverage (debt to capital),
(xi) revenue, (xii) income or net income, (xiii) operating
income, (xiv) operating profit or net operating profit, (xv) operating
margin or profit margin, (xvi) return on operating revenue,
(xvii) cash from operations, (xviii) operating ratio,
(xix) operating revenue, (xx) customer service, (xxi) issuance of
equity or debt instruments of the Company, (xxii) product sales, or (xxiii)
other objective company or working group milestones. To the extent consistent
with Section 162(m) of the Code, the Administrator may appropriately adjust
any evaluation of performance under a Qualifying Performance Criteria to exclude
any of the following events that occurs during a performance period:
(i) asset write-downs, (ii) litigation, claims, judgments or
settlements, (iii) the effect of changes in tax law, accounting principles
or other such laws or provisions affecting reported results, (iv) accruals
for reorganization and restructuring programs and (v) any extraordinary,
unusual or non-recurring items as described in Accounting Principles Board
Opinion No. 30 and/or in management’s discussion and analysis of financial
condition and results of operations appearing in the Company’s Forms 10-K or
10-Q for the applicable year.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      
        	
                14.

              	
                Transferability

              

      

    

    

    Unless
the Administrator specifies otherwise, each Award may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated by a Participant other
than by will or the laws of descent and distribution, and each Option or Stock
Appreciation Right shall be exercisable only by the Participant during his or
her lifetime.  Notwithstanding the foregoing, if permitted by the
Administrator in its sole discretion, Awards may be transferred to a former
spouse if required by a qualified domestic relations order.

     

    
      
        	
                15.

              	
                Compliance
      with Laws and Regulations

              

      

    

    

    This
Plan, the grant, issuance, vesting, exercise and settlement of Awards hereunder,
and the obligation of the Company to sell, issue or deliver shares under such
Awards, shall be subject to all applicable foreign, federal, state and local
laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be required. The Company shall not be required to
register in a Participant’s name or deliver any shares prior to the completion
of any registration or qualification of such shares under any foreign, federal,
state or local law or any ruling or regulation of any government body which the
Administrator shall determine to be necessary or advisable. To the extent the
Company is unable to or the Administrator deems it infeasible to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any shares hereunder, the Company and its Subsidiaries shall be relieved of
any liability with respect to the failure to issue or sell such shares as to
which such requisite authority shall not have been obtained. No Stock Option
shall be exercisable and no shares shall be issued and/or transferable under any
other Award unless a registration statement with respect to the shares
underlying such Stock Option is effective and current or the Company has
determined that such registration is unnecessary.

     

    In the
event an Award is granted to or held by a Participant who is employed or
providing services outside the United States, the Administrator may, in its sole
discretion, modify the provisions of the Plan or of such Award as they pertain
to such individual to comply with applicable foreign law or to recognize
differences in local law, currency or tax policy. The Administrator may also
impose conditions on the grant, issuance, exercise, vesting, settlement or
retention of Awards in order to comply with such foreign law and/or to minimize
the Company’s obligations with respect to tax equalization for Participants
employed outside their home country.

     

    
      
        	
                16.

              	
                Withholding

              

      

    

    

    To the
extent required by applicable federal, state, local or foreign law, a
Participant shall be required to satisfy, in a manner satisfactory to the
Company, any withholding tax obligations that arise by reason of an Option
exercise, disposition of shares issued under an ISO, the vesting of or
settlement of deferred units under an Award, an election pursuant to
Section 83(b) of the Code or otherwise with respect to an Award. The
Company and its Subsidiaries shall not be required to issue shares of Common
Stock, make any payment or to recognize the transfer or disposition of shares
until such obligations are satisfied. The Administrator may permit these
obligations to be satisfied by having the Company withhold a portion of the
shares of Common Stock that otherwise would be issued to him or her upon
exercise of the Option or the vesting or settlement of an Award, or by tendering
shares previously acquired.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      
        	
                17.

              	
                Administration
      of the Plan

              

      

    

    

    (a)           Administrator of the Plan.
The Plan shall be administered by the Administrator, which shall be the
Compensation Committee of the Board of Directors or, in the absence of a
Compensation Committee, the Board of Directors itself. Any power of the
Administrator may also be exercised by the Board of Directors, except to the
extent that the grant or exercise of such authority would cause any Award or
transaction to become subject to (or lose an exemption under) the short-swing
profit recovery provisions of Section 16 of the Securities Exchange Act of
1934 or cause an Award designated as a Performance Award not to qualify for
treatment as performance-based compensation under Code Section 162(m). To
the extent that any permitted action taken by the Board conflicts with action
taken by the Administrator, the Board action shall control. The Compensation
Committee may by resolution authorize one or more officers of the Company to
perform any or all things that the Administrator is authorized and empowered to
do or perform under the Plan, and for all purposes under this Plan, such officer
or officers shall be treated as the Administrator; provided, however, that the
resolution so authorizing such officer or officers shall specify the total
number of Awards (if any) such officer or officers may award pursuant to such
delegated authority, and any such Award shall be subject to the form of Option
agreement theretofore approved by the Compensation Committee. No such officer
shall designate himself or herself or any Nonemployee Director as a recipient of
any Awards granted under authority delegated to such officer. In addition, the
Compensation Committee may delegate any or all aspects of the day-to-day
administration of the Plan to one or more officers or employees of the Company
or any Subsidiary, and/or to one or more agents.

    

    (b)           Powers of Administrator.
Subject to the express provisions of this Plan, the Administrator shall be
authorized and empowered to do all things that it determines to be necessary or
appropriate in connection with the administration of this Plan, including,
without limitation: (i) to prescribe, amend and rescind rules and
regulations relating to this Plan and to define terms not otherwise defined
herein; (ii) to determine which persons are Participants, to which of such
Participants, if any, Awards shall be granted hereunder and the timing of any
such Awards, and to grant Awards; (iii) to grant Awards to Participants
and, to the extent not expressly provided in this Plan, determine the terms and
conditions thereof, including the number of shares subject to Awards and the
exercise or purchase price of such shares and the circumstances under which
Awards become exercisable or vested or are forfeited or expire, which terms may
but need not be conditioned upon the passage of time, continued employment, the
satisfaction of performance criteria, the occurrence of certain events, or other
factors; (iv) to establish and verify the extent of satisfaction of any
performance goals or other conditions applicable to the grant, issuance,
exercisability, vesting and/or ability to retain any Award; (v) to
prescribe and amend the terms of the agreements or other documents evidencing
Awards made under this Plan (which need not be identical) and the terms of or
form of any document or notice required to be delivered to the Company by
Participants under this Plan; (vi) to determine whether, and the extent to
which, adjustments are required pursuant to Section 12; (vii) to
interpret and construe this Plan, any rules and regulations under this Plan and
the terms and conditions of any Award granted hereunder, and to make exceptions
to any such provisions in good faith and for the benefit of the Company; and
(viii) to make all other determinations deemed necessary or advisable for
the administration of this Plan.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    (c)           Determinations by the
Administrator. All decisions, determinations and interpretations by the
Administrator regarding the Plan, any rules and regulations under the Plan and
the terms and conditions of or operation of any Award granted hereunder, shall
be final and binding on all Participants, beneficiaries, heirs, assigns or other
persons holding or claiming rights under the Plan or any Award. The
Administrator shall consider such factors as it deems relevant, in its sole and
absolute discretion, to making such decisions, determinations and
interpretations including, without limitation, the recommendations or advice of
any officer or other employee of the Company and such attorneys, consultants and
accountants as it may select.

    

    (d)           Subsidiary Awards. In the
case of a grant of an Award to any Participant employed by a Subsidiary, such
grant may, if the Administrator so directs, be implemented by the Company
issuing any subject shares to the Subsidiary, for such lawful consideration as
the Administrator may determine, upon the condition or understanding that the
Subsidiary will transfer the shares to the Participant in accordance with the
terms of the Award specified by the Administrator pursuant to the provisions of
the Plan. Notwithstanding any other provision hereof, such Award may be issued
by and in the name of the Subsidiary and shall be deemed granted on such date as
the Administrator shall determine.

    

    (e)           Section 409A.  All
Awards granted under the Plan that are subject to (or potentially subject to)
Section 409A of the Code shall be administered in a manner consistent with the
requirements of Section 409A of the Code (and, to the extent possible, to avoid
treatment of the Award as subject to Section 409A).

    

    
      
        	
                18.

              	
                Amendment of
      the Plan or Awards

              

      

    

    

    The Board
may amend, alter or discontinue this Plan and the Administrator may amend, or
alter any agreement or other document evidencing an Award made under this Plan
but, except as provided pursuant to the provisions of Section 12, no such
amendment shall, without the approval of the shareholders of the
Company:

     

    (a)           increase
the maximum number of shares for which Awards may be granted under this
Plan;

    

    (b)           extend
the term of this Plan;

    

    (c)           change
the class of persons eligible to be Participants;

    

    (d)           otherwise
amend the Plan in any manner requiring shareholder approval by law or under the
applicable stock exchange listing requirements; or

    

    (e)           increase
the individual maximum limits in Section 5(c).

    

    No
amendment or alteration to the Plan or an Award or Award Agreement shall be made
which would materially impair the rights of the holder of an Award, without such
holder’s consent, provided that no such consent shall be required if the
Administrator determines in its sole discretion and prior to the date of any
change of control (as defined in the applicable Award Agreement) that such
amendment or alteration either is required or advisable in order for the
Company, the Plan or the Award to satisfy any law or regulation or to meet the
requirements of or avoid adverse financial accounting consequences under any
accounting standard.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      
        	
                19.

              	
                No Liability
      of Company

              

      

    

    

    The
Company and any Subsidiary or affiliate which is in existence or hereafter comes
into existence shall not be liable to a Participant or any other person as to:
(i) the non-issuance or sale of shares of Common Stock as to which the
Company has been unable to obtain from any regulatory body having jurisdiction
the authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any shares hereunder; and (ii) any tax consequence
expected, but not realized, by any Participant or other person due to the
receipt, exercise or settlement of any Award granted hereunder.

     

    
      
        
          	
                  20.

                	
                  Non-Exclusivity
      of Plan

                

        

      

    

    

    Neither
the adoption of this Plan by the Board of Directors nor the submission of this
Plan to the shareholders of the Company for approval shall be construed as
creating any limitations on the power of the Board of Directors or the
Administrator to adopt such other incentive arrangements as either may deem
desirable, including without limitation, the granting of restricted stock or
stock options otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

     

    
      
        
          	
                  21.

                	
                  Governing
      Law

                

        

      

    

    

    This Plan
and all Award Agreements shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.  Each party
subject to this Plan or any Award Agreement hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the City and
County of New York for the adjudication of any dispute hereunder or under such
Award Agreement, and hereby irrevocably waives, and agrees not to assert in any
suit, action, or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action, or proceeding is brought
in an inconvenient forum, or that the venue of such suit, action, or proceeding
is improper.

     

    
      
        
          	
                  22.

                	
                  No Right to
      Employment, Reelection or Continued
Service

                

        

      

    

    

    Nothing
in this Plan or an Award Agreement shall interfere with or limit in any way the
right of the Company, its Subsidiaries and/or its affiliates to terminate any
Participant’s employment, service on the Board or service for the Company at any
time or for any reason not prohibited by law, nor confer upon any Participant
any right to continue his or her employment or service for any specified period
of time. Neither an Award nor any benefits arising under this Plan shall
constitute an employment contract with the Company, any Subsidiary and/or its
affiliates, accordingly, subject to Sections 4 and 19, this Plan and the
benefits hereunder may be terminated at any time in the sole and exclusive
discretion of the Board of Directors without giving rise to any liability on the
part of the Company, its Subsidiaries and/or its affiliates.

     

    
      
         

      

      
        17Exhibit
10.1

     

    FOURTH FORBEARANCE
AGREEMENT

     

    THIS
FOURTH FORBEARANCE AGREEMENT (this “Agreement”) is made
and entered into as of May 4, 2009, by and among, BUTLER SERVICE GROUP, INC., a
New Jersey corporation (“Borrower”), the other
Credit Parties signatory hereto, the Lenders signatory hereto and GENERAL
ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“GECC”), as Lender and
as administrative agent for the Lenders (in such capacity, the “Agent”) under the
Credit Agreement (as hereinafter defined).

     

    RECITALS

     

    WHEREAS, Borrower, the other Credit
Parties, Lenders and Agent are party to that certain Third Amended and Restated
Credit Agreement, dated as of August 29, 2007 (as amended to date, the “Credit Agreement”;
capitalized terms used herein and not defined herein shall have the meanings
assigned to them in the Credit Agreement), pursuant to which the Lenders have
made available to Borrower a revolving loan and other extensions of credit
(including letters of credit) in the original maximum principal amount of
$45,000,000; and

     

    WHEREAS, Borrower, the other Credit
Parties, Lenders and Agent entered into a Forbearance Agreement, dated as of
April 27, 2009 (the “Prior Forbearance
Agreement”), pursuant to which Lenders and Agent, inter alia, agreed to
forbear from exercising their rights and remedies with respect to certain
ongoing Defaults and Events of Default; and

     

    WHEREAS, on the date hereof, the
aggregate outstanding principal balance of the Revolving Loan is $17,040,614.12;
and

     

    WHEREAS, Events of Default have
occurred and are continuing under Sections 8.1(b),
8.1(c), 8.1(d), 8.1(e), 8.1(f) and 8.1(l) of the Credit
Agreement arising out of (a) Borrower’s failure to comply with the minimum
Borrowing Availability covenant set forth in clause (d) of Annex G of the Credit
Agreement for each of the August 1, 2008, August 15, 2008 and September 12,
2008, February 6, 2009, March 6, 2009, March 13, 2009, March 20, 2009, March 27,
2009, April 3, 2009, April 17, 2009, April 24, 2009 and May 1, 2009 testing
dates as required to be maintained pursuant to Section 6.10 of the
Credit Agreement, (b) Borrower’s delivery of a Borrowing Base Certificate to
Agent on July 22, 2008 which contained certain information which was untrue or
incorrect, (c) Borrower’s failure to promptly pay and discharge all Charges
payable by it as required by Section 5.2(a) of the
Credit Agreement, (d) Borrower’s failure to deliver to Agent the financial and
other information (other than Borrower’s 10-Q for the Fiscal Quarter ended
September 30, 2007) required by Section 4.1(a) and
clause (r) of
Annex E of the
Credit Agreement to be delivered on or prior to September 15, 2008, (e)
Borrower’s failure to deliver to Agent the financial and other information
required by Section
4.1(a) and clause (a) of Annex E of the Credit
Agreement for the Fiscal Month ended on September 28, 2008 to be delivered on or
prior to October 28, 2008, (f) Borrower’s failure to deliver to Agent the
financial and other information required by Section 4.1(a) and
clause (b) of
Annex E of the
Credit Agreement for the Fiscal Month ended on September 28, 2008 to be
delivered on or prior to November 12, 2008, (g) Borrower’s failure to comply
with Section
6.1 of the Credit Agreement, (h) Borrower’s failure to comply with Section 6.20 of the
Second Lien Credit Agreement, (i) Borrower’s failure to comply with Section 4(f) of that
certain Seventh Amendment to Second Lien Credit Agreement dated as of December
31, 2008, (j) Borrower’s failure to comply with those certain Side Letters,
dated as of December 23, 2008 and January 15, 2009, respectively, by and among
Agent and the Credit Parties, by failing to enter into definitive purchase or
financing agreement for an asset sale or refinancing by not later than March 1,
2009, and (k) a Change of Control having occurred under Section 8.1(l) of the
Credit Agreement (collectively, the “Existing Events of
Default”); and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    WHEREAS, as a result of the occurrence
and continuance of the Existing Events of Default, Agent has the right to demand
immediate payment of all of the Obligations, to make demand upon Guarantors for
the payment of all of the Obligations and to exercise any and all rights and
remedies available to Agent and the Lenders at law, in equity or by agreement
(including, without limitation, pursuant to the Security Agreements and the
other Loan Documents) (collectively, “Rights and
Remedies”); and

     

    WHEREAS, Borrower recognizes the
occurrence and continuance of the Existing Events of Default; and

     

    WHEREAS, the Prior Forbearance
Agreement has expired under its own terms as of the date hereof;
and

     

    WHEREAS, Borrower and Guarantors have
each requested that Agent on behalf of Lenders continue to forbear from the
exercise of Agent’s and Lenders’ Rights and Remedies available under the Credit
Agreement as a result of the occurrence of the Existing Events of Default;
and

     

    WHEREAS,
Agent and Requisite Lenders are willing to grant such forbearance upon the terms
and subject to the conditions and limitations set forth herein.

     

    NOW,
THEREFORE, in consideration of the foregoing premises and the agreements and
undertakings contained herein, for $10.00, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as
follows:

    

    1.           
Acknowledgments by the
Credit Parties.  Borrower and each of the Credit Parties
acknowledges and agrees as follows:

     

    (a)           Acknowledgment of
Default.  That on and as of the Effective Date (as defined
below): (i) Events of Default exist and continue to exist, including,
without limitation, the Existing Events of Default; (ii) timely, adequate and
proper notice (notwithstanding that such notice is not required under Section 8.2 of the
Credit Agreement) of the occurrence of the Existing Events of Default has been
received by Borrower and Guarantors from Agent (and Borrower waives any
requirement that any such notice be in writing); (iii) all grace periods, if
any, applicable to the cure of such Existing Events of Default after receipt of
such notice have expired; (iv) each of said Events of Default was and is
continuing without timely cure by the Borrower or Guarantors; and (v) Agent and
Lenders have not waived in any respect any or all of such Events of Default or
their respective Rights and Remedies with respect thereto.

     

    (b)           Acknowledgment of Right of
Acceleration.  That (i) on and as of the Effective Date, the
Revolving Loan and all accrued and unpaid interest thereon, together with other
outstanding charges permissible under the Credit Agreement, are due and payable
in full, and Agent has the right to accelerate and declare all Obligations to be
immediately due and payable and to make demand upon Borrower and Guarantors for
the payment in full of all Obligations; (ii) such acceleration and demand for
payment is in all respects adequate and proper; (iii) that Agent on its own
behalf, or on behalf of the Lenders, has the right to exercise all other rights
and remedies permitted under the Loan Documents; and (iv) Borrower waives any
and all further notice, presentment, notice of dishonor or demand with respect
to the Obligations.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)           Acknowledgment of
Obligations.  That on and as of the Effective Date,
(i) Borrower is indebted to Lenders in the amount set forth in the recitals
to this Agreement, plus costs and fees payable pursuant to and in accordance
with the Credit Agreement; (ii) all such amounts are due and payable in full,
without offset, deduction or counterclaim of any kind or character whatsoever,
but are subject to increase, decrease or other adjustment as a result of any and
all interest, fees and other charges including, without limitation, attorneys’
fees and costs of collection, which are payable to Agent and Lenders under the
Credit Agreement and the other Loan Documents; and (iii) Agent’s liens and
security interests in the Collateral are fully enforceable, non-avoidable and of
first priority status (provided, that with
respect to the Montvale Property Agent’s liens and security interests are of
second priority status subject only to the lien of the Second Lien
Agent).

     

    (d)           Acknowledgment that
Liabilities Continue in Full Force and Effect.  That the Credit
Agreement, the other Loan Documents, and all other respective liabilities and
obligations of Borrower to Agent and Lenders shall, except as expressly modified
herein, remain in full force and effect, and shall not be released, impaired,
diminished or in any other way modified or amended as a result of the execution
and delivery of this Agreement or by the agreements and undertakings of the
parties contained herein.

     

    2.        
   Agreement to
Forbear.

     

    (a)           For
the period (the “Forbearance Period”)
beginning as of the date first above written and ending on the earlier to occur
of (a) 5:00 p.m., New York time, on May 11, 2009, and (b) termination of this
forbearance as provided herein, Agent and Lenders, without waiving, curing or
ceasing the continuance of the Existing Events of Default, hereby agree to
forbear from the exercise of any of their Rights and Remedies available under
the Credit Agreement and the Loan Documents on account of the Existing Events of
Default.  Neither Agent nor Lenders shall have any obligation to make
any Loans, issue, extend or renew, and Borrower shall not request the issuance,
extension or renewal of, any Letters of Credit or otherwise extend credit to
Borrower under the Credit Agreement during the Forbearance
Period.  Lenders have considered and will continue to consider during
the Forbearance Period, in their sole discretion, whether to honor borrowing
requests or requests for issuances of Letters of Credit which shall, in any
case, be made pursuant to and in compliance with the Budget (as hereinafter
defined).  Any past or future Loans to, or issuances of Letters of
Credit for the account of, Borrower should not be considered an agreement,
express or implied, on the part of Lenders to make any additional Loans or to
issue any additional Letters of Credit or an agreement to waive any terms of the
Credit Agreement in the future, including, without limitation, the satisfaction
of conditions precedent to funding.  Agent’s and Lenders’ forbearance
provided for herein shall be effective only with respect to the Existing Events
of Default and shall terminate and cease to be of force and effect, and Agent
and Lenders may exercise all of their respective rights and remedies as may be
available under the Credit Agreement and under applicable law, in Agent’s
discretion by a written notice to Borrower upon or after the occurrence of any
other Default or Event of Default under the Credit Agreement or any Loan
Document (other than the Existing Events of Default) or a Default or Event of
Default under the terms of this Agreement (individually a “Forbearance Default”
and, collectively, the “Forbearance
Defaults”).

     

    (b)           During
the Forbearance Period, and provided Agent has not elected to terminate the
Forbearance Period following the occurrence of a Forbearance Default in its
discretion in accordance with the last sentence of Section 2(a) of this
Agreement and that the terms and conditions of this Agreement are otherwise
satisfied, Agent and Lenders agree that Agent shall not accelerate, nor shall
Lenders direct Agent to accelerate, the Obligations owed to Lenders under the
Credit Agreement or otherwise exercise any of their rights and remedies, in each
case, as a result of the Existing Events of Default outlined
herein.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c)           Each
of the parties hereto agree that any making of Loans or issuances of additional
Letters of Credit in the Lenders’ discretion as described in Section 2(a) of this
Agreement, whether now or at any time in the future, shall constitute
Obligations under the Credit Agreement and Overadvances made under Section 1.1(a)(iii)
of the Credit Agreement to protect and preserve the Collateral and the interests
of the Lenders.

     

    3.          
 Covenants.

     

    (a)           From
and after the date of this Agreement, the Borrower agrees to expend funds solely
in accordance with a budget attached to this Agreement as Exhibit A (the
“Budget”).  Under
no circumstances will the Borrower exceed the total budgeted amount or the
amounts of any expenditures contained in the Budget, except as authorized in
writing by Agent.  The Borrower may amend the Budget, provided that
the Budget, as so amended, has been previously approved by Agent in
writing.

     

    (b)           Borrower
and each other Credit Party agrees to provide to Agent such resolutions and such
other documents, instruments and agreements as Agent may reasonably
request.

     

    (c)           Each
Credit Party covenants and agrees that it will continue to pay all Charges in
accordance with Section 5.2 of the
Credit Agreement from and after the Effective Date, and that such Credit Party
will not permit the aggregate amount of liabilities of the Borrower and the
other Credit Parties for unpaid payroll taxes arising out of payroll paid prior
to the date set forth as the “last payroll payment date” in any Borrower
certification to Agent or any Lender as to the amount of outstanding payroll
taxes to exceed $519,247.14.

     

    (d)           The
Borrower shall deliver to Agent, on a weekly basis no later than 9:00 a.m. (New
York time) on each Tuesday, a variance report setting forth the actual receipts
and disbursements to the Budget for such week and a comparison to the actual
receipts and disbursements to the Budget for the prior week.

     

    (e)           The
Borrower acknowledges and agrees that on or prior to the Effective Date
Overadvances have occurred and that non-refundable fees have accrued and are
outstanding in the aggregate amount of $2,175,000.00 in accordance with Section 1.9(e) of the
Credit Agreement (such fees, collectively, the “Overadvance
Fee”).  Notwithstanding the requirements of Section 1.9(e) of the
Credit Agreement, Agent agrees that such Overadvance Fee shall be payable, and
Borrower covenants and agrees that it will pay the Overadvance Fee, on the
Commitment Termination Date.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.           Representations and
Warranties.  The Borrower and each other Credit Party
represents and warrants to Agent and Lenders that: (i) it has had the
opportunity to consult with counsel, and has been fully advised by legal counsel
of its rights and responsibilities under this Agreement and of the legal effect
hereof; (ii) it has read and fully understands the contents of this Agreement,
and each has freely and voluntarily executed this Agreement; (iii) it is
sophisticated and knowledgeable in financial matters, both generally and with
respect to transactions of the type described in the Loan Documents and the
modification to these transactions to be effected by this Agreement and the
documents, instruments and transactions contemplated thereby; (iv) it has
received and has independently reviewed and evaluated a copy of this Agreement
and all other documents and instruments executed or delivered in connection
therewith, and fully understand the transactions contemplated thereby; (v) it
has made such independent review and evaluation, as well as all other decisions
pertaining to the execution and delivery of this Agreement, without any reliance
upon any oral or written representation, warranty, advice or analysis of any
kind whatsoever from the Released Parties (as defined below), however obtained;
(vi) it has determined, following such independent review and evaluation, that
the benefits of the transactions contemplated by this Agreement are direct and
substantial; (vii) the individual signing this Agreement on behalf of the
Borrower and each other Credit Party is duly authorized and fully empowered to
do so; (viii) the consideration flowing to Borrower and each other Credit Party
under this Agreement is in all respects substantial and sufficient; (ix) this
Agreement has been duly and validly executed and delivered by the Borrower and
each other Credit Party and is the valid and legally binding obligation of the
Borrower, enforceable in accordance with its terms, (x) Agent and Lenders are
authorized to discuss financial and other matters related to the Borrower and
each other Credit Party, (xi) the Borrower and each other Credit Party hereby
restates and renews each and every representation and warranty heretofore made
by it in the Credit Agreement and the other Loan Documents as fully as if made
on the Closing Date and with specific reference to this Agreement and all other
Loan Documents executed and/or delivered in connection herewith, but excluding
therefrom the effect of the Existing Events of Default, and (xii) as of May 4,
2009, the aggregate amount of liabilities of the Borrower and the other Credit
Parties for unpaid payroll taxes equals $519,995.98, consisting of (i)
$519,247.14 in liabilities for unpaid payroll taxes arising out of payroll paid
prior to May 4, 2009, (ii) $748.84 in liabilities for unpaid payroll taxes
arising out of payroll paid on May 1, 2009.

     

    5.           No
Novation.  Nothing in this Agreement shall be construed to
constitute a novation of the Notes or any other Obligations arising under the
Loan Documents, related to any of the Notes, or to release, satisfy, discharge
or otherwise affect or impair in any manner whatsoever: (i) the validity or
enforceability of the Notes or any other Obligations arising under the Credit
Agreement or any other Loan Document; (ii) the charges, liens, pledges, security
interests, assignments and conveyances effected by any agreement securing the
Obligations arising under the Credit Agreement or any other Loan Document, or
the priority thereof; (iii) the liability of Guarantors and Borrower under the
Credit Agreement and all other Loan Documents or any other person that may now
or hereafter be liable under the Credit Agreement and the other Loan Documents
or any agreement securing the same; and (iv) any other security or instrument
now or hereafter held by Agent as security for or as evidence of any of the
above described indebtedness.  Without limiting the foregoing, the
parties agree that Agent and Lenders hereby reserve any and all legal rights and
remedies available to them at law, in equity, under the Credit Agreement and the
Loan Documents.

     

    6.           Strict
Compliance.  As a result of Agent and Lenders’ current and
prior accommodations to Borrower, to ensure that there is no misunderstanding
and to provide Borrower with reasonable notice that Agent and Lenders intend to
rely on the exact terms of the Credit Agreement, as amended, Borrower is hereby
notified that Agent and Lenders will insist on strict compliance with the Credit
Agreement, except as otherwise provided herein.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    7.           Outstanding Obligations;
Release.

     

    (a)           Each
of Borrower and the other Credit Parties hereby acknowledges and agrees that as
of May 4, 2009, the aggregate outstanding principal amount of the Revolving Loan
is $17,040,614.12 (of which $1,969,515.95 constitutes the aggregate outstanding
Letters of Credit Obligations), and that such principal amounts are payable
pursuant to the Credit Agreement without defense, offset, withholding,
counterclaim or deduction of any kind.  Borrower, on behalf of itself
and the other Credit Parties hereby releases, acquits, forever discharges and
covenants not to sue GECC, Agent or any of the Lenders, and each and every past
and present subsidiary, affiliate, stockholder, officer, director, agent,
servant, employee, representative, and attorney of GECC, Agent and each Lender
(collectively, the “Released Parties”),
from or for any and all claims, causes of action, suits, debts, liens,
obligations, liabilities, demands, losses, costs and expenses (including
attorneys’ fees) of any kind, character or nature whatsoever, known or unknown,
fixed or contingent, which any Borrower or any other Credit Party may have or
claim to have now arising out of or connected with any act of commission or
omission of GECC, Agent or any of the Lenders existing or occurring prior to the
Effective Date or any instrument executed prior to the Effective Date including,
without limitation, any claims, liabilities or obligations arising with respect
to the Obligations evidenced by the Credit Agreement, the Loans or any of the
Loan Documents.  The provisions of this Agreement shall be binding
upon the Borrower and each other Credit Party shall inure to the benefit of
GECC, Agent and each of the Lenders, and shall likewise be binding upon the
Borrower’s and each other Credit Party’s respective heirs, executors,
administrators, successors and assigns.

     

    (b)           Each
Credit Party that is a signatory hereto shall jointly and severally indemnify
and hold harmless each of GECC, Agent, Lenders and their respective Affiliates,
and each such Person’s respective officers, directors, employees, attorneys,
agents and representatives (each, an “Indemnified Party”),
from and against any and all suits, actions, proceedings, claims, damages,
losses, liabilities and expenses (including reasonable attorneys’ fees and
disbursements and other costs of investigation or defense, including those
incurred upon any appeal) that may be instituted or asserted against or incurred
by any such Indemnified Person as the result of credit having been extended,
suspended or terminated under the Credit Agreement, this Agreement or any other
Loan Document and the administration of such credit, and in connection with or
arising out of the transactions contemplated hereunder and thereunder and any
actions or failures to act in connection therewith, including but not limited
to, the enforcement of Agent and Lenders’ rights and remedies under this
Agreement, and any other instruments or documents delivered in connection with
this Agreement and all Environmental Liabilities and legal costs and expenses
arising out of or incurred in connection with disputes between or among any
parties to this Agreement or any of the Loan Documents; provided, that no
such Credit Party shall be liable for any indemnification to an Indemnified
Party to the extent that any such suit, action, proceeding, claim, damage, loss,
liability or expense results from that  Indemnified Party’s gross
negligence or willful misconduct.  To the extent that the undertaking
to indemnify set forth in this paragraph may be unenforceable because it
violates any law or public policy, Borrower, on behalf of itself and the other
Credit Parties shall satisfy such undertaking to the maximum extent permitted by
law.  Any liability, obligation, loss, damage, penalty, cost or
expense covered by this indemnity shall be paid to each Indemnified Party upon
demand, and, failing prompt payment, shall, together with interest thereon at
the Default Rate from the date incurred by each Indemnified Party until paid, be
added to the Obligations of the Borrower and be secured by the Collateral,
within the meaning of the Agreement.  The provisions of this section
shall survive the satisfaction and payment of the other Obligations, the
termination of any additional funding by Lenders and the termination of this
Agreement.

     

    8.           Receipt and Application of
Payments.  Borrower acknowledges and agrees that Agent shall be
entitled during the term of this Agreement to accept such payments and proceeds
as are remitted pursuant to any provision of the Loan Documents or this
Agreement, that Agent shall be entitled to apply any and all such proceeds and
payments against the liabilities and obligations owed by Borrower and Guarantors
to Agent and Lenders in such order of application as Agent in its sole and
absolute discretion shall determine proper, and that the acceptance by Agent of
any such proceeds and payments as are remitted pursuant to the Loan Documents or
this Agreement or otherwise shall in no way affect or impair the status of the
Obligations owed to Agent and Lenders by the Borrower or Guarantors or be deemed
to be a waiver of any Event of Default or any acquiescence
therein.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    9.           Events of
Default.

     

    The
following shall constitute Events of Default under this Agreement:

     

    (a)           The
Borrower expends any funds in any manner inconsistent with the
Budget.

     

    (b)           The
Borrower or any other Credit Party violates any covenant, representation or
warranty under this Agreement.

     

    (c)           The
Borrower or any other Credit Party violates any covenant, representation or
warranty under the Credit Agreement or any other Loan Document.

     

    (d)           The
commencement by Second Lien Collateral Agent of a Standstill Period (as such
terms are defined in the Intercreditor Agreement).

     

    (e)           The
commencement by the Second Lien Agent or any Second Lien Claimholder (as such
term is defined in the Intercreditor Agreement) of any case, action, claim,
lawsuit, demand, investigation or other  proceeding against any of the
Credit Parties (including without limitation the commencement of an Insolvency
or Liquidation Proceeding (as such terms are defined in the Intercreditor
Agreement) against any of the Credit Parties), or the taking of any action by
the Second Lien Agent or any Second Lien Claimholder in a manner inconsistent
with, or in violation of, the Intercreditor Agreement.

     

    (f)           Any
Event of Default under the Credit Agreement other than an Existing Event of
Default shall occur.

     

    In the
event any such Event of Default under this Agreement exists, in Agent’s sole
discretion and upon written notice to the Borrower by Agent, Borrower’s right to
any funding under the Credit Agreement shall terminate
immediately.  The provisions of Section 7 of
this Agreement shall survive an Event of Default under this
Agreement.

     

    10.           Effectiveness.  This
Agreement shall become effective as of May 4, 2009 (the “Effective Date”) only
upon Agent’s receipt of four (4) fully-executed copies of this Agreement, duly
executed and delivered by Agent, Requisite Lenders, Borrower and each other
Credit Party.

     

    11.           Miscellaneous.

     

    (a)           Retention of
Consultant.  The Borrower has previously retained and, unless
otherwise agreed to by Agent in its sole discretion, covenants and agrees to
continue to retain the services of RAS Management, Inc. (the “Consultant”) to (i)
market the Borrower’s assets, including all real and personal property, for sale
in a manner acceptable to Agent in its reasonable discretion, (ii) effectuate
the sale of the Borrower’s property in a manner reasonably acceptable to Agent
in its sole discretion, and (iii) provide Agent with information including,
without limitation, information concerning offers, proceeds of sales, and other
items concerning the Borrower’s assets as Agent shall request from time to
time.  Each of the Credit Parties irrevocably authorize, and shall
cause, the Consultant to (x) disclose to Agent and Lenders the nature or content
of any oral or written communication prepared by the Consultant or any
information gained from the inspection of any record or document of such Credit
Party by the Consultant and (y) communicate with Agent and Lenders concerning,
and disclose fully and promptly to Agent and the Lenders and their respective
representatives, all developments in connection with the efforts of the Credit
Parties and the Consultant described herein.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (b)           Entire Agreement;
Amendments.  This Agreement reflects the entire understanding
of the parties with respect to the subject matter herein contained and
supersedes any prior agreements, whether written or oral, in regard
thereto.  This Agreement may not be amended or modified and the
Forbearance Period extended unless agreed to in writing executed by all parties
signatory to this Agreement or as may otherwise be provided for under the terms
of the Credit Agreement and the other Loan Documents.  This Agreement
shall constitute a Loan Document for all purposes under the Credit
Agreement.

     

    (c)           Full Force and
Effect.  Except as expressly modified herein, all terms of the
Loan Documents, including the Credit Agreement and Guaranties, shall be and
shall remain in full force and effect and shall constitute the legal, valid,
binding and enforceable obligations of Borrower and Guarantors, as applicable,
to Agent and Lenders.

     

    (d)           No
Waiver.  This Agreement is not intended to operate as, and
shall not be construed as, a waiver of any Event of Default, including the
Existing Events of Default, whether known or unknown to Agent or Lenders, as to
which all rights of Agent and Lenders, including all rights of foreclosure,
shall remain reserved.

     

    (e)           GOVERNING
LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED 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.

     

    (f)           WAIVER OF RIGHT TO JURY
TRIAL.  THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT, LENDERS AND ANY CREDIT PARTY
ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT.

     

    (g)           Counterparts.  This
Agreement may be executed in multiple counterparts, each of which shall be an
original and all of which, taken together, shall constitute but one and the same
agreement among the parties.

     

    (h)           Binding
Nature.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.

     

    (i)           Captions.  The
captions to the Sections and paragraphs of the Agreement are for the convenience
of the parties only, and are not a part of this Agreement.

     

    (j)           Time of the
Essence.  Time is of the essence under this
Agreement.

     

    (k)           No Third-Party
Beneficiaries.  The parties agree that no such third-party
beneficiaries are intended under this Agreement, and, except as expressly set
forth herein, nothing in this Agreement shall create any rights for or in any
person or entity who is not a party to this Agreement.

     

    (l)           Notice.  Any
notices required to be provided to Agent shall be served upon:

     

    If to Agent or GECC, at

    General Electric Capital
Corporation

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    201 Merritt 7

    P.O. Box 5201

    Norwalk,
CT  06856-5201

    Attention: James Kaufman

    Telephone No.:  (203)
229-1832

    Telecopier
No.:  (203) 567-8200

     

    with
copies to:

     

    Paul, Hastings, Janofsky & Walker
LLP

    75 E. 55th St.

    New York, NY 10022

    Attention:  Richard
Denhup

    Telephone
No.:  (212) 230-5161

    Telecopier
No.:  (212) 318-6366

    

    General Electric Capital
Corporation

    201 Merritt

    P.O. Box 5201

    Norwalk,
CT  06856-5201

    Attention:  Corporate
Counsel-Commercial Finance

    Telephone No.:  (203)
956-4381

    Telecopier
No.:  (203) 956-4259

    

    Any
notices required to be provided to the Borrower shall be served
upon:

     

    Butler Service Group, Inc.

    110 Summit Avenue

    Montvale,
NJ  07645

    Attention: Ronald Uyematsu

    Telephone
No.:  310-591-8731

    Telecopier
No.:  201-573-9723

     

    with a
copy to:

     

    Moses
& Singer LLP

    The
Chrysler Building

    405
Lexington Avenue

    NY, NY
10174-1299

    Attention:  Jeffrey
M. Davis

    Telephone
No.: (212) 554-7837

    Telecopier
No.: (917) 206-4337

     

    IN
WITNESS WHEREOF, the parties have hereunto set their hands effective as of the
date first above written.

     

    [Signature Pages
Follow]

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      
        	
                BUTLER SERVICE GROUP, INC.,
      as Borrower

              
	 
      
	
                By:
      /s/ Gerald P. Simone

              
	
                Name:
      Gerald P. Simone

              
	
                Title:
      SVP Finance &
Accounting

              

      

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    GENERAL ELECTRIC CAPITAL
      CORPORATION, as Agent and Lender

                  
	 
	
                    By:
      /s/ James H. Kaufman

                  
	 
	
                    Name:
      James H. Kaufman

                  
	
                    Title:   Duly
      Authorized
Signatory

                  

          

        

      

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    The
following Persons are signatories to this Amendment in their capacity as Credit
Parties and not as Borrower.

     

    
      
        	
                BUTLER
      INTERNATIONAL, INC.

                BUTLER
      SERVICES INTERNATIONAL, INC.

                BUTLER
      TELECOM, INC.

                BUTLER
      PUBLISHING, INC.

                BUTLER
      OF NEW JERSEY REALTY CORP.

                BUTLER
      SERVICES, INC.

                BUTLER
      UTILITY SERVICE, INC.

                BUTLER
      RESOURCES, LLC

              
	 
	
                By:
      /s/ Gerald P. Simone

                Name:
      Gerald P. Simone

                Title:
      SVP Finance &
Accounting

              

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Budget

    
      
         

      

      
        13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]