-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JTEtTZR4Zx/46ul8rE+qhyHfNr5eflYhdMXdT4VYaK6YnhRMk6T8t9M6XwGYOgzc y8BUW152K95UUGV2WGLq/w== 0001144204-09-016387.txt : 20090326 0001144204-09-016387.hdr.sgml : 20090326 20090326171452 ACCESSION NUMBER: 0001144204-09-016387 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090306 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Termination of a Material Definitive Agreement ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090326 DATE AS OF CHANGE: 20090326 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BUTLER INTERNATIONAL INC /MD/ CENTRAL INDEX KEY: 0000786765 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 061154321 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14951 FILM NUMBER: 09707361 BUSINESS ADDRESS: STREET 1: 110 SUMMIT AVE CITY: MONTVALE STATE: NJ ZIP: 07645 BUSINESS PHONE: 2015738000 MAIL ADDRESS: STREET 1: 110 SUMMIT AVENUE STREET 2: 110 SUMMIT AVENUE CITY: MONTVALE STATE: NJ ZIP: 07645 FORMER COMPANY: FORMER CONFORMED NAME: NORTH AMERICAN VENTURES INC DATE OF NAME CHANGE: 19920703 8-K 1 v143925_8k.htm Unassociated Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 


FORM 8-K


 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 6, 2009
 


Butler International, Inc.
(Exact name of registrant as specified in charter)
 


 
  
       
Maryland
 
0-14951
 
06-1154321
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
     
200 E. Las Olas Boulevard, Suite 1730A, Fort Lauderdale, Florida
 
33301
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (954) 761-2200

(Former name or former address, if changed since last report)
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Item 1.01.  Entry Into a Material Definitive Agreement.

On March 20, 2009, Butler Service Group, Inc. (“BSG”) and certain of its affiliates, including Butler International, Inc. (the “Company” and , together with BSG and certain of its affiliates who are parties to the Forbearance Agreement, the “Company Credit Parties”), entered into a Forbearance Agreement (the “Forbearance Agreement”) with General Electric Capital Corporation (“GECC”), as Agent and Lender, in connection with the Third Amended and Restated Credit Agreement, as amended, between the parties (the “Credit Agreement”).  The Forbearance Agreement provides, among other things, that, without waiving certain existing defaults under the Credit Agreement, GECC will, until the earlier of (i) April 20, 2009, or (ii) the occurrence of a default under the Forbearance Agreement (as described therein), or an additional default under the Credit Agreement (other than certain already acknowledged defaults existing as of the date of the Forbearance Agreement), forbear from the exercise of any of its rights and remedies arising out of such existing events of default under the Credit Agreement.  The Company Credit Parties have acknowledged certain existing and continuing defaults under the Credit Agreement, including, among other things, failure to comply with its minimum borrowing availability covenant and other financial covenants, failure to deliver certain financial and other information to GECC, and failure to pay certain charges.  BSG has agreed to expend funds solely in accordance with an agreed upon budget, and has acknowledged and agreed that overadvances have occurred under the Credit Agreement, that fees in the amount of $1,500,000 have accrued and are outstanding in connection with such overadvances, and that such amounts are due and payable on August 1, 2009, the Commitment Termination Date under the Credit Agreement.  Under the Forbearance Agreement, GECC is not obligated to make any additional loans under the Credit Agreement during the forbearance period.  As of March 20, 2009, the aggregate outstanding principal amount of loans under the Credit Agreement is $21,302,641.95.  The Company has previously disclosed its relationship with GECC as a lender in its Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on January 18, 2008, and its Form 10-Q filed with the SEC on June 23, 2008, and such disclosure is incorporated herein by this reference.
 
In connection with the Forbearance Agreement, on March 20, 2009, BSG and certain of its affiliates, including the Company, entered into a side letter agreement (the “GECC Side Letter”) with GECC under which BSG and its affiliates who are parties to the side letter agreed to provide to GECC on or before March 24, 2009 a fully executed Participation Agreement (the “Participation Agreement”), in form and substance satisfactory to GECC, by and between GECC and Koosharem Corporation dba  Select StaffingSM (“Select Staffing”), which Participation Agreement will reflect the terms and conditions of the proposed purchase by Select Staffing of $1,500,000 of GECC’s interest in the Credit Agreement.  Failure to deliver the Participation Agreement will constitute an event of default under the Forbearance Agreement, which will trigger GECC’s right to terminate the Forbearance Agreement.  As of March 24, 2009, the parties to the GECC Side Letter agreed to extend the date by which the fully executed Participation Agreement must be delivered to GECC until March 27, 2009 (or such later date as may be agreed to by GECC in its sole discretion) (the “Side Letter Extension”).  As of the filing of this Form 8-K, the Participation Agreement has not been executed or delivered.

The summary of each of the Forbearance Agreement, the GECC Side Letter and the Side Letter Extension set forth in this Form 8-K does not purport to be complete and is qualified in its entirety by reference to the file text of the Forbearance Agreement, the GECC Side Letter and the Side Letter Extension filed as Exhibits 10.1, 10.2 and 10.3 hereto and incorporated herein by this reference.
 
Item 1.02.  Termination of a Material Definitive Agreement.

On March 13, 2009, the Company received a notice from Caterpillar Inc. (“Caterpillar”) terminating that certain Master Consulting Agreement (the “Master Agreement”), entered into as of May 21, 2001, between Caterpillar and certain of its subsidiaries and affiliates and the Company and all services thereunder, effective that same day.  Pursuant to the Master Agreement, the Company provided certain engineering and other technical consulting services, generally by providing outsourced staffing to Caterpillar and its subsidiaries and affiliates.  The terms of each consulting project, including the deliverable and payment terms thereof, were agreed to in writing by the parties in respect of each particular project.  The Company is eligible to receive payment for all authorized services performed and authorized expenses incurred through the date of termination.  The Company believes that the termination resulted from concerns regarding the Company’s financial condition.

2

 
Item 5.02  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On March 6, 2009, the Board of Directors (the “Board”) of the Company accepted the resignation of Edward M. Kopko from his position as Chairman of the Board, Chief Executive Officer and President of the Company and all of its related companies.  On March 14, 2009, Mr. Kopko clarified his resignation from his positions as a member of the Board and all other positions with the Company and any of its subsidiaries.  Mr. Kopko did not serve on any committees of the Board at the time of his resignation.

Mr. Kopko’s letter (the “Resignation Letter”), which is attached hereto as an exhibit and incorporated herein by this reference, includes his description of the circumstances related to his resignation.

Pursuant to the provisions of the Second Amended and Restated Executive Employment Agreement (the “Amended and Restated Employment Agreement”), made as of December 4, 2002 (and effective as of January 1, 1991), between the Company, Butler Service Group, Inc., and Mr. Kopko, as amended as of March 25, 2008 by that certain Amendment to Second Amended and Restated Employment Agreement (the “Employment Agreement Amendment” and, together with the Amended and Restated Employment Agreement, the “Employment Agreement”), in connection with any voluntary resignation of employment by Mr. Kopko, or a termination of Mr. Kopko’s employment by the Company with “cause” (as defined in the Employment Agreement), Mr. Kopko is entitled to receive: (i) unpaid salary and other accrued benefits, including business expenses and other perquisites, earned up to the date of termination; and (ii) compensation deferred by Mr. Kopko pursuant to the Employment Agreement.  In connection with a voluntary resignation of employment by Mr. Kopko following a “Change in Control” (as defined in the Employment Agreement), a termination of Mr. Kopko’s employment by the Company without cause, or a resignation by Mr. Kopko under certain circumstances (“Resignation for Good Reason”, including a failure by the Company to perform its obligations under the Employment Agreement, or a determination in good faith by Mr. Kopko that his status with the Company has been reduced, Mr. Kopko is eligible to receive (i) unpaid salary and other accrued benefits, including business expenses and other perquisites, earned up to the last day of the month in which employment was terminated; (ii) unpaid bonus prorated up to the last day of the month in which employment was terminated; (iii) compensation deferred by Mr. Kopko pursuant to the Employment Agreement, (iv) an amount equal to three times the highest annual salary, bonus and other income paid to Mr. Kopko in the three years immediately preceding the termination; and (v) certain additional perquisites, including use of office space and a secretary for three years following termination.

In the Resignation Letter, Mr. Kopko claims a Resignation for Good Reason, and requests that all amounts owed to him be paid immediately.  The Company is reviewing its obligations under the Employment Agreement, including any amounts owed to Mr. Kopko.

The summary of the Employment Agreement set forth in this Form 8-K does not purport to be complete and is qualified in its entirety by reference to the file text of the Amended and Restated Employment Agreement filed as an exhibit to the Company’s Form 10-K for the fiscal year ended December 31, 2002 filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2003, and the Employment Agreement Amendment filed as an exhibit to the Company’s Form 10-K for the fiscal year ended December 31, 2006 filed with the SEC on January 18, 2008, each of which is incorporated herein by this reference.

Effective as of March 7, 2009, Ronald Uyematsu, who has served on the Board since 2004, has been appointed as the Company's President and Chief Executive Officer.  Mr. Uyematsu is a member of the Board’s Compensation, Transaction (formed to evaluate strategic alternatives) and Rule 4350(H) (formed to review related party transactions) Committees, and serves as Chairman of the Compensation Committee.  The terms of Mr. Uyematsu’s employment with the Company, including his compensation and the term of his employment, have not yet been determined.  Since January 1, 2008, the Company has compensated Mr. Uyematsu $35,900 in cash for his service as a director, including as Chairman of the Compensation Committee.  In addition, the Company has compensated Mr. Uyematsu $30,000 as payment for his increased service to the Company.

Mr. Uyematsu, age 48, is a founder of and principal of Agdenes Media, LLC a documentary film production and distribution company founded in March 2006.  Previously, from April 2002 to April 2006, Mr. Uyematsu was a consultant for TMC Entertainment and its predecessor, Total Media Group, Inc., both worldwide production and distribution companies.  From August 2004 to June 2005, Mr. Uyematsu was associated with BMA Securities, a securities broker-dealer.  From July 1998 to April 2002, Mr. Uyematsu was a Vice President at VMR Capital Markets, U.S., a registered broker-dealer.  Mr. Uyematsu attended Boston College and the University of California, Irvine.

3

A copy of a press release announcing Mr. Uyematsu’s appointment is attached hereto as Exhibit 99.1.

Item 8.01 Other Events.

On March 16, 2009, the Company issued a press release announcing its entry on such date into a Letter of Intent (the “LOI”) with Select Staffing.  Pursuant to the terms of the LOI, which is non-binding, Select Staffing has agreed to purchase all or substantially all of the assets of the Company, and will assume certain liabilities.  The financial terms of the transaction have not been disclosed.  There can be no assurance that this transaction will be completed and, if completed, will be completed on terms favorable to the Company.  A copy of this press release is attached hereto as Exhibit 99.2.

Effective as of March 7, 2009, Thomas F. Comeau, a director of the Company since 2001, has been appointed as Chairman of the Board.  A copy of a press release announcing Mr. Comeau’s appointment is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d)  Exhibits.
 
Forbearance Agreement, dated as of March 20, 2009, by and among Butler Service Group, Inc. and certain of its affiliates, including Butler International, Inc., and General Electric Capital Corporation, as Agent and Lender.
10.2   
Side Letter, dated as of March 20, 2009, by and among Butler Service Group, Inc. and certain of its affiliates, including Butler International, Inc., and General Electric Capital Corporation, as Agent.
10.3
Side Letter Extension, dated as of March 24, 2009, by and among Butler Service Group, Inc. and certain of its affiliates, including Butler International, Inc., and General Electric Capital Corporation, as Agent.
17.1   
Resignation letter from Edward M. Kopko dated March 6, 2009.
99.1   
Press Release dated March 9, 2009. 
99.2   
Press Release dated March 16, 2009.
 
4

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Date: March 26, 2009
 
Butler International, Inc.
(Registrant)
 
   
/s/ Gerald P. Simone
   
Gerald P. Simone
SVP Finance and Accounting
 
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EX-10.1 2 v143925_ex10-1.htm Unassociated Document
Exhibit 10.1

FORBEARANCE AGREEMENT
 
THIS FORBEARANCE AGREEMENT (this “Agreement”) is made and entered into as of March 20, 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, on the date hereof, the aggregate outstanding principal balance of the Revolving Loan is $21,302,641.95; 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)(i) of Annex G of the Credit Agreement for each of the August 1, 2008, August 15, 2008 and September 12, 2008 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 the minimum Borrowing Availability covenant set forth in clause (d) of Annex G of the Credit Agreement for the February 6, 2009, March 6, 2009, March 13, 2009 and March 20, 2009 testing dates as required to be maintained pursuant to Section 6.10 of the Credit Agreement, (i) Borrower’s failure to comply with Section 6.20 of the Second Lien Credit Agreement, (j) 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, (k) 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 (l) 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, the Borrower recognizes the occurrence and continuance of the Existing Events of Default; and
 
WHEREAS, the Borrower and Guarantors have each requested that Agent on behalf of Lenders 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.
 
(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 April 20, 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.
 
(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 $866,300.
 
(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 $1,500,000 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. 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 March 19, 2009, the aggregate amount of liabilities of the Borrower and the other Credit Parties for unpaid payroll taxes equals $866,300, consisting of (i) $809,364 in liabilities for unpaid payroll taxes arising out of payroll paid prior to March 16, 2009, and (ii) $56,935 in liabilities for unpaid payroll taxes arising out of payroll paid on March 19, 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.
 
7. Outstanding Obligations; Release.
 
(a) Each of Borrower and the other Credit Parties hereby acknowledges and agrees that as of March 20, 2009, the aggregate outstanding principal amount of the Revolving Loan is $21,302,641.95 (of which $1,969,516 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.
 

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 March 20, 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.
 

(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
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: Ron 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]
 

 
 
  BUTLER SERVICE GROUP, INC., as Borrower  
       
 
By:
/s/ Gerald P. Simone  
   
Name: Gerald P. Simone
Title: SVP Finance & Accounting
 
       
       
 
  GENERAL ELECTRIC CAPITAL CORPORATION, as Agent and Lender  
       
 
By:
/s/ Dave Kopchick  
    Name: Dave Kopchick                                                        
Title:   Duly Authorized Signatory
 
       
       

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
EX-10.2 3 v143925_ex10-2.htm Unassociated Document
Exhibit 10.2


March 20, 2009

Butler Service Group, Inc.
110 Summit Avenue
Montvale, NJ 07645

Attn: Ron Uyematsu

 
SIDE LETTER
 
Re:           Participation Agreement
 
Ladies and Gentlemen:
 
Reference is made to that certain (i) Third Amended and Restated Credit Agreement, dated as of August 29, 2007 (including, all annexes, exhibits and schedules thereto, and as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Butler Service Group, Inc. (the “Borrower”), the other Credit Parties signatory thereto (the Credit Parties together with the Borrower, individually and collectively “You” or “Your”), General Electric Capital Corporation (“GECC”), as a Lender and Agent for Lenders (in such capacity, the “Agent”), and the other Lenders signatory thereto from time to time, and (ii) Forbearance Agreement, dated as of March 20, 2009, by and among Borrower, the other Credit Parties signatory thereto and Agent (as amended, supplemented or otherwise modified from time to time, the “Forbearance Agreement”).  Unless otherwise defined herein, capitalized terms used herein shall have the respective meanings provided in the Credit Agreement.
 
In connection with, and as consideration for the Lenders agreeing to enter into, the Forbearance Agreement, You agree to deliver to Agent on or before March 24, 2009 (or such later date as may be agreed to by Agent in its sole discretion), a fully executed participation agreement, in form and substance satisfactory to Agent, by and between GECC, as seller, and Koosharem Corporation d/b/a Select Staffing (or an Affiliate thereof), as buyer (the “Participation Agreement”).
 
This letter shall constitute a Loan Document under the Credit Agreement.  Failure to deliver the Participation Agreement in accordance with the preceding paragraph shall constitute an Event of Default under Section 9 of the Forbearance Agreement.
 
This letter shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without regard to choice or conflict of law principles thereof.  No party may assign its rights, duties or obligations under this letter without the prior written consent of the other parties.  This letter may be executed in any number of separate counterparts, each of which shall, collectively and separately, constitute one agreement. Any amendments to this letter shall be made in writing and signed by the parties hereto.  The undersigned parties have signed below to indicate their consent to be bound by the terms and conditions of this letter.
 

Please indicate Your acceptance of and agreement to the foregoing by signing and returning, by facsimile, the enclosed copy of this Agreement to General Electric Capital Corporation, Attention: Jim Kaufman.
     
     
     
  Very truly yours,  
     
  GENERAL ELECTRIC CAPITAL CORPORATION, as Agent  
     
       
 
By:
/s/ Dave Kopchick  
    Title: Vice President  
       
       
                       
 
AGREED TO AND ACCEPTED AS OF
THIS 20th DAY OF MARCH, 2009.

BUTLER SERVICE GROUP, INC.
 
By: /s/ Gerald P. Simone
 
Name: Gerald P. Simone
Title: SVP Finance & Accounting
 
 
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
EX-10.3 4 v143925_ex10-3.htm Unassociated Document
Exhibit 10.3


as of March 24, 2009

Butler Service Group, Inc.
110 Summit Avenue
Montvale, NJ 07645

Attn: Ron Uyematsu

 
Re:           Extension of Obligations under Side Letter
 
Ladies and Gentlemen:
 
Reference is made to that certain (i) Third Amended and Restated Credit Agreement, dated as of August 29, 2007 (including, all annexes, exhibits and schedules thereto, and as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Butler Service Group, Inc. (the “Borrower”), the other Credit Parties signatory thereto (the Credit Parties together with the Borrower, individually and collectively “You” or “Your”), General Electric Capital Corporation (“GECC”), as a Lender and Agent for Lenders (in such capacity, the “Agent”), and the other Lenders signatory thereto from time to time, (ii) Forbearance Agreement, dated as of March 20, 2009, by and among the Borrower, the other Credit Parties signatory thereto and Agent (as amended, supplemented or otherwise modified from time to time, the “Forbearance Agreement”) and (iii) Side Letter, dated March 20, 2009, by and among the Borrower, the other Credit Parties signatory thereto and the Agent (the “Side Letter”).  Unless otherwise defined herein, capitalized terms used herein shall have the respective meanings provided in the Credit Agreement.
 
In accordance with the Side Letter, the Agent hereby agrees, in its sole discretion, to extend the date by which You are required to deliver to Agent a fully executed participation agreement, in form and substance satisfactory to Agent, by and between GECC, as seller, and Koosharem Corporation d/b/a Select Staffing (or an Affiliate thereof), as buyer (the “Participation Agreement”) until March 27, 2009 (or such later date as may be agreed to by Agent in its sole discretion).
 
This letter shall constitute a Loan Document under the Credit Agreement.  Failure to deliver the Participation Agreement in accordance with the preceding paragraph shall constitute an Event of Default under Section 9 of the Forbearance Agreement.
 
This letter shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without regard to choice or conflict of law principles thereof.  No party may assign its rights, duties or obligations under this letter without the prior written consent of the other parties.  This letter may be executed in any number of separate counterparts, each of which shall, collectively and separately, constitute one agreement. Any amendments to this letter shall be made in writing and signed by the parties hereto.  The undersigned parties have signed below to indicate their consent to be bound by the terms and conditions of this letter.
 

Please indicate Your acceptance of and agreement to the foregoing by signing and returning, by facsimile, the enclosed copy of this Agreement to General Electric Capital Corporation, Attention: Jim Kaufman.
     
     
     
  Very truly yours,  
     
  GENERAL ELECTRIC CAPITAL CORPORATION, as Agent  
     
       
 
By:
/s/ Jim Kaufman  
    Title: Jim Kaufman  
       
       
                            
AGREED TO AND ACCEPTED AS OF
THIS 26th DAY OF MARCH, 2009.

BUTLER SERVICE GROUP, INC.
           
By:
/s/ Gerald P. Simone
   
 
 
           
Name: 
Gerald P. Simone
   
 
 
           
Title:
SVP Finance and Accounting
   
 
 
 
 
 
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
   
 
 
 
EX-17.1 5 v143925_ex17-1.htm Unassociated Document
Exhibit 17.1

March 6, 2009
Via Email

Dear Ron,

I am writing to provide you notice that Butler is and has been in default under my Employment Agreement, pursuant to Paragraph 7.c. thereof for failure by Butler to perform its obligations under my Employment Agreement.  The defaults include failure to make payments owed me in excess of $1.4 million dollars, failure to pay weekly salary and other obligations due me.  Such breach of my employment pursuant to Paragraph 7.c. gives rise to the obligations of Butler pursuant to Paragraph 7.f. of the Employment Agreement. I request payment of all funds do to me be paid immediately.

As a result of the these defaults, I am left with no option other than to resign  immediately as Chairman, CEO and President of Butler and all its related companies.

I further advise that the company has continuing obligations to me pursuant to such agreement.

 
Ed
EX-99.1 6 v143925_ex99-1.htm Unassociated Document
Exhibit 99.1
 
For Immediate Release CONTACT: Jim Floody
    954-761-2200
                
March 9, 2009

BUTLER Appoints New CEO and Chairman of the Board

Ft Lauderdale, FL . . .  Butler International, (BUTL.PK) a leading provider of Engineering Support and TechOutsourcing Services, announced the appointment of Ronald Uyematsu as Chief Executive Officer and President and Thomas F. Comeau,  as Chairman of the Board.   Mr. Uyematsu has held numerous leadership positions at various companies including Agdenes Media, LLC.   Mr. Comeau has been the President of Swissport Fueling, a wholly-owned subsidiary of the Swiss Air Group.

Ronald Uyematsu, CEO of Butler International, stated “Butler has a 62-year history of providing quality services to our blue chip customer-base.  I look forward leading this organization into new territory.”


About Butler International
 
Butler International, Inc. is a leading provider of Engineering Support and TechOutsourcing services, helping customers worldwide increase performance and savings.  Butler’s global services model provides clients with onsite, offsite, or offshore service delivery options customized appropriately to their unique objectives.  During its 62-year history of providing services, Butler has served many prestigious companies through its industry groups which include aircraft/aerospace, federal/defense, communications, consumer and manufacturing and more.  If you would like to find out more about Butler’s value-added global services, please visit us on the web at http://www.butler.com.

 

Mindpower for a Changing WorldSM
World Headquarters
New River Center, 200 E. Las Olas Blvd.
Ft. Lauderdale, FL  33301
www.butler.com
EX-99.2 7 v143925_ex99-2.htm Unassociated Document
Exhibit 99.2

For Immediate Release CONTACT: Jim Floody
    954-761-2200
March 16, 2009

BUTLER NEGIOTIATES LETTER OF INTENT WITH SELECT STAFFINGSM

Ft Lauderdale, FL . . ..  Butler International, Inc. (BUTL.PK), a leading provider of Engineering Support and TechOutsourcing services, announced today it has agreed to the terms of a Letter of Intent with Eastern Staffing LLC dba  Select StaffingSM.

Butler International is a leading provider of engineering and outsourcing services.  Select StaffingSM is a top-10 national staffing industry leader and the commercial division of Santa Barbara, California-based Select Family of Staffing Companies.

Ronald Uyematsu, CEO and President of Butler International stated, “We are excited about this opportunity.  Select Staffing’s commitment to providing quality services and their employee dedication mirrors Butler International’s.  The financial strength and access to capital this brings to Butler International will enable us to expand our services and grow our business with our customers.”

“Acquisitions have been a significant part of our growth strategy and Butler International brings IT and engineering services that present new opportunities for our expansion into the ESO market.  The acquisition of Butler International opens these markets to Select StaffingSM,” said D. Stephen Sorenson, CEO of The Select Family of Staffing Companies.

Financial terms of the deal were not disclosed.  Butler International reported 2007 revenues of $312 million.  Select StaffingSM  had 2008 revenues estimated at over $1.5 billion.

About Butler International, Inc.

Butler International, Inc. is a leading provider of Engineering and Technical Outsourcing services, helping customers worldwide increase performance and savings.  Butler International’s global services model provides clients with onsite, offsite, or offshore service delivery options customized appropriately to their unique objectives.  During its 62-year history of providing services, Butler International has served many prestigious companies through its industry groups, which include clients in the aircraft/aerospace, federal/defense, communications, consumer and manufacturing and commercial sectors.

About Select Staffing

Founded in Santa Barbara, California in 1985, The Select Family of Staffing Companies is one of the nation’s fastest-growing, full-service staffing companies.  The company operates as Select StaffingSM, Select Staffing™, Remedy® Intelligent Staffing, RemX® Financial Staffing, RemX® IT Staffing, RemX® OfficeStaff, and other national brands.  Select StaffingSM offers premier workforce management services, including recruiting and screening professional job candidates, payroll and time attendance management, on-site supervision, proactive safety programs, and specialty staffing solutions, to a wide variety of client companies, including manufacturing, industrial, clerical, administrative, accounting, finance, information technology, and professional services.  For more information about The Select Family of Staffing Companies, please visit the company’s website at www.selectstaffing.com.


Information contained in this press release, other than historical information, may be considered forward-looking in nature as such it is based upon certain assumptions and is subject to various risks and uncertainties, which may not be controllable by Butler International.  To the extent that these assumptions prove to be incorrect, or should any of these risks or uncertainties materialize, the actual results may vary materially from those that were anticipated.

Mindpower for a Changing WorldSM
World Headquarters
New River Center, 200 E. Las Olas Blvd.
Ft. Lauderdale, FL  33301
www.butler.com

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