Document:

Exhibit 10.20

 

Exhibit 10.20

REVOLVING NOTE

(LIBOR and/or Prime)

	 	 	 
	$10,000,000.00

	 	655787/00003

Irvine, California

April 27, 2004

     On May 1, 2005 (“Termination Date”), SM&A, a California corporation
(“Borrower”), promises to pay to the order of City National Bank, a national
banking association (“CNB”), at its office in this city, in United States
Dollars and in immediately available funds, the principal sum of Ten Million
and no/100 Dollars ($10,000,000.00) (“Revolving Credit Commitment”) or so much
thereof as may be advanced and then outstanding, plus interest on the unpaid
balance, until fully repaid, at a rate computed on the basis of a 360-day year,
actual days elapsed, at the rates, times and in accordance with the terms set
forth below.

     As provided herein, the principal of this Note may be borrowed, repaid and
reborrowed from time to time prior to the Termination Date, provided at the
time of any borrowing no Event of Default (as hereinafter defined) exists, and
provided further that the total borrowings outstanding at any one time shall
not exceed the lesser of (i) the Revolving Credit Commitment or (ii) the
Revolving Credit Commitment, less Letters of Credit issued and outstanding
under that certain Agreement for Issuance of Letters of Credit of even date
herewith between Borrower and CNB. Each borrowing and repayment shall be noted
in the books and records of CNB. The excess of borrowings over repayments
shall evidence the principal balance due hereon from time to time and at any
time. Borrowings hereunder shall be conclusively presumed to have been made to
or for the benefit of Borrower when made as noted in such books and records.

     For purposes of this Note, the following definitions shall apply:

     "Business Day” means a day that CNB’s Head Office is open and conducts a
substantial portion of its business.

     "Eurocurrency Reserve Requirement” means the aggregate (without
duplication) of the rates (expressed as a decimal) of reserves (including,
without limitation, any basic, marginal, supplemental, or emergency reserves)
that are required to be maintained by banks during the Interest Period under
any regulations of the Board of Governors of the Federal Reserve System, or any
other governmental authority having jurisdiction with respect thereto,
applicable to funding based on so-called “Eurocurrency Liabilities”, including
Regulation D (12 CFR 204).

     "Interest Period” means the period commencing on the date a LIBOR Loan is
made (including the date a Prime Loan is converted to a LIBOR Loan, or a LIBOR
Loan is renewed as a LIBOR Loan, which, in the latter case, shall be the last
day of the expiring Interest Period) and ending on the first day of the month
occurring prior to or on the date which is one (1), two (2), three (3), six
(6), nine (9), twelve (12) months thereafter, as selected by the Borrower;
provided, however, no Interest Period may extend beyond the Termination Date.

     "LIBOR Base Rate” means the British Banker’s Association definition of the
London InterBank Offered Rates as made available by Bloomberg LP, or such other
information service available to CNB, for the applicable monthly period upon
which the Interest Period is based for the LIBOR Loan selected by Borrower and
as quoted by CNB on the Business Day Borrower requests a LIBOR Loan or on the
last Business Day of an expiring Interest Period.

     "LIBOR Interest Rate” means the rate per year (rounded upward to the next
one-sixteenth (1/16th) of one percent (0.0625%), if necessary) determined by
CNB to be the quotient of (a) the LIBOR Base Rate divided by (b) one minus the
Eurocurrency Reserve Requirement for the Interest Period; which is expressed by
the following formula:

LIBOR Base Rate

1 — Eurocurrency Reserve Requirement

     "LIBOR Loan” means any Loan tied to the LIBOR Interest Rate.

     "Loan(s)” means a borrowing under this Note.

     "Prime Loan” means any Loan tied to the Prime Rate. A Loan hereunder
shall be a Prime Loan any time it is not a LIBOR Loan.

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Exhibit 10.20

     "Prime Rate” means the rate most recently announced by CNB at its
principal office in Beverly Hills, California, as its “Prime Rate.” Any change
in the interest rate resulting from a change in the Prime Rate shall be
effective on the day on which each change in the Prime Rate is announced by
CNB.

1. Interest on Loans. Each Loan shall bear interest from disbursement until
due (whether at stated maturity, by acceleration or otherwise) at a rate equal
to, at Borrower’s option, either (a) for a LIBOR Loan, the LIBOR Interest Rate
plus two and one quarter of one percent (2.250%) per annum, or (b) for a Prime
Loan, the fluctuating Prime Rate minus one half of one percent (-.500%) per
annum. Interest on the Loans shall accrue daily and be payable (a) monthly, in
arrears, on the first day of the next month, commencing on the first such date
following disbursement; and (b) if a LIBOR Loan, upon any prepayment of any
LIBOR Loan (to the extent accrued on the amount prepaid.) Anything herein to
the contrary notwithstanding, all principal and interest remaining unpaid on
the Termination Date shall be immediately due and payable.

2. Procedure for LIBOR Loans. Borrower may request that a Loan be a LIBOR
Loan, if herein allowed (including conversion of a Prime Loan to a LIBOR Loan,
or continuation of a LIBOR Loan as a LIBOR Loan upon the expiration of the
Interest Period). Borrower’s request shall be irrevocable, shall be made to
CNB, orally or in writing or using the form “Notice of Borrowing/Interest
Selection” form attached hereto as Exhibit “A”, no earlier than two (2)
Business Days before and no later than 1:00 p.m. Pacific Time on the date the
LIBOR Loan is to be made, and shall specify the Interest Period, the amount of
the LIBOR Loan, and such other information as CNB requests. If Borrower fails
to select a LIBOR Loan in accordance herewith, the Loan shall be a Prime Loan,
and any LIBOR Loan shall be deemed a Prime Loan upon expiration of the Interest
Period.

3. Availability of LIBOR Loans. Notwithstanding anything herein to the
contrary, each LIBOR Loan must be in the minimum amount of $500,000.00 and
increments of $100,000.00. Borrower may not have more than five (5) LIBOR
Loans outstanding at any one time under the Revolving Credit Commitment.
Borrower may have Prime Loans and LIBOR Loans outstanding simultaneously.

4. Prepayment of Principal. Borrower may prepay the principal amount
outstanding on a Prime Loan at any time and in any amount without a prepayment
fee. Borrower may not make a partial principal prepayment on a LIBOR Loan.
Borrower may prepay the full outstanding principal balance on a LIBOR Loan
prior to the end of the Interest Period, provided, however, that such
prepayment is accompanied by a fee (“LIBOR Prepayment Fee”) equal to the
amount, if any, by which (a) the additional interest which would have been
earned by CNB had the LIBOR Loan not been prepaid exceeds (b) the interest
which would have been recoverable by CNB by placing the amount of the LIBOR
Loan on deposit in the LIBOR market for a period starting on the date on which
it was prepaid and ending on the last day of the applicable Interest Period.
CNB’s calculation of the LIBOR Prepayment Fee shall be conclusive absent
manifest error.

5. Suspension of LIBOR Loans. In the event CNB, on any Business Day, is unable
to determine the LIBOR Base Rate applicable for a new, continued, or converted
LIBOR Loan for any reason, or any law, regulation, or governmental order, rule
or determination, makes it unlawful for CNB to make a LIBOR Loan, Borrower’s
right to select LIBOR Loans shall be suspended until CNB is again able to
determine the LIBOR Base Rate or make LIBOR Loans, as the case may be. During
such suspension, new Loans, outstanding Prime Loans and LIBOR Loans whose
Interest Periods terminate may only be Prime Loans.

6. Late Charge. Borrower shall pay to CNB a late charge of 5% or $10.00,
whichever is greater, of any payment not received by CNB on or before the 10th
day after the payment is due.

     The occurrence of any of the following with respect to any Borrower or
guarantor of this Note or any general partner of such Borrower or guarantor
shall constitute an “Event of Default” hereunder:

	1.	 	Failure to make any payment of principal or interest when due under this
Note;

	2.	 	Filing of a petition by or against any of such parties under any
provision of the Bankruptcy Code;

	3.	 	Appointment of a receiver or an assignee for the benefit of creditors;

	4.	 	Commencement of dissolution or liquidation proceedings or the
disqualification (under any applicable law or regulation) of any of such
parties which is a corporation, partnership, joint venture or any other
type of entity;

	5.	 	Death or incapacity of any of such parties which is an individual;

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Exhibit 10.20

	6.	 	Revocation of any guaranty of this Note, or any guaranty of this Note
becomes unenforceable as to any future advances under this Note;

	7.	 	Any financial statement provided by any of such parties to CNB is false
or materially misleading;

	8.	 	Any material default in the payment or performance of any obligation, or
any default under any provision of any contract or instrument pursuant to
which any of such parties has incurred any obligation for borrowed money,
any purchase obligation or any other liability of any kind to any person
or entity, including CNB;

	9.	 	Any sale or transfer of all or a substantial part of the assets of any of
such parties other than in the ordinary course of business; or

	10.	 	Any violation, breach or default under this Note, any letter agreement,
guaranty, security agreement, deed of trust, subordination agreement or
any other contract or instrument executed in connection with this Note or
securing this Note.

     Upon the occurrence of any Event of Default, CNB, at its option, may
declare all sums of principal and interest outstanding hereunder to be
immediately due and payable without presentment, demand, protest or notice of
dishonor, all of which are expressly waived by Borrower, and CNB shall have no
obligation to make any further advances hereunder. Borrower agrees to pay all
costs and expenses, including reasonable attorneys’ fees, expended or incurred
by CNB (or allocable to CNB’s in-house counsel) in connection with the
enforcement of this Note or the collection of any sums due hereunder and
irrespective of whether suit is filed.

     Upon the occurrence of any Event of Default (and without constituting a
waiver of the Event of Default), and until the Event of Default has been cured,
the outstanding principal (and interest, to the extent permitted by law) shall
bear additional interest at a fluctuating rate equal to five percent (5%) per
annum higher than the interest rate as determined above; provided, however, for
purposes hereof, a LIBOR Loan shall be treated as a Prime Loan upon the
termination of the Interest Period.

     This Note and all matters related hereto shall be governed by the laws of
the State of California. If this Note is executed by more than one Borrower,
all obligations are joint and several.

	 	 	 	 	 
	 	SM&A, a California corporation

 	 
	 	By:  	/s/ Steven S. Myers
 	 
	 	 	Steven S. Myers, COB/CEO 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Cathy L. Wood
 	 
	 	 	Cathy L. Wood, CFO/Secretary 	 
	 	 	 	 
	 

BANK USE ONLY

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EXHIBIT A

NOTICE OF BORROWING/INTEREST SELECTION

     This Notice of Borrowing/Interest Selection (“Notice”) is executed and
delivered by SM&A, a California corporation (“Borrower”), to City National
Bank, a national banking association (“CNB”), pursuant to that Revolving Note
(“Note”) in the principal sum of $10,000,000.00, dated April 27, 2004, executed
by Borrower in favor of CNB. Any terms not defined herein shall have the
meanings defined in the Note or the Interest Rate Provision.

     1. Request for a Loan. Borrower requests a Loan under the Note as follows:

	 	1.1	 	Interest Selection- State “LIBOR” or “Prime”: __________________________

	 	1.2	 	Principal Amount of Loan: $__________________________ (If LIBOR Loan, minimum of $500,000.00)

	 	1.3	 	LIBOR Loan- Effective Date of Interest Period: __________________________, 20_______

	 	1.4	 	LIBOR Loan — Interest Period: _____________ month(s) (1, 2, 3, 6, 9 or 12 months only)

     2. Conversion to LIBOR Loan. Borrower requests conversion of the outstanding Prime Loan to a LIBOR Loan.

	 	2.1	 	Effective Date of Conversion: __________________________, 20_______

	 	2.2	 	Principal Amount of Conversion: $__________________________ [minimum of $500,000.00]

	 	2.3	 	Interest Period: ________________ month(s) [1, 2, 3, 6, 9 or 12 months only]

     3. Renewal of LIBOR Loan. Borrower requests renewing an outstanding LIBOR
Loan as follows:

	 	3.1	 	Principal Amount of Renewal of LIBOR Loan: $__________________
[minimum of $500,000.00] (Amount of LIBOR Loan not renewed as a LIBOR
Loan will be a Prime Loan)

	 	3.2	 	Date of Renewal: ______________________________, 20_______[last date of current Interest Period]

	 	3.3	 	Interest Period: _________ month(s) [1, 2, 3, 6, 9 or 12 months only]

     4. Conversion to Prime Loan. LIBOR Loans shall automatically convert to a
Prime Loan at the end of an Interest Period if CNB fails to timely receive a
Notice for an outstanding LIBOR Loan.

     5. Warranty. In connection with the action requested herein, Borrower hereby
represents and warrants to CNB that, as of the date of such request, no Event
of Default has occurred and is continuing.

     This Notice is executed on ___________________________, 20________.

	 	 	 	 	 
	SM&A, a California corporation

 	 	 
	By:  	 	 	 
	 	Steven S. Myers, COB/CEO 	 	 
	 	 	 	 

	 	 	 	 	 
	By:  	 	 	 
	 	Cathy L. Wood, CFO/Secretary<PAGE>

                              SECOND AMENDMENT TO
                      AMENDED AND RESTATED RIGHTS AGREEMENT

         This Second Amendment to Amended and Restated Rights Agreement, dated
as of July 19, 2004 (the "AMENDMENT"), is between Venturi Partners, Inc., a
Delaware corporation (the "COMPANY"), and Wachovia Bank, National Association, a
national banking association, as successor rights agent (the "RIGHTS AGENT").
Capitalized terms used but not defined herein have the meanings given such terms
in the Rights Agreement (as defined below).

                             PRELIMINARY STATEMENTS

         A. The Company and the Rights Agent entered into a Rights Agreement,
dated as of February 6, 2001, which Rights Agreement was amended by the First
Amendment to Rights Agreement, dated as of December 13, 2001, the Second
Amendment to Rights Agreement, dated as of March 14, 2003, the Amended and
Restated Rights Agreement, dated April 14, 2003 and the Amendment to Amended and
Restated Rights Agreement dated as of August 18, 2003 (as amended, the "RIGHTS
AGREEMENT").

         B. The Company, VTP, Inc., Venturi Technology Partners, LLC, COMSYS
Information Technology Services, Inc., COMSYS Holding, Inc. and each holder of
capital stock of COMSYS Holding, Inc. party thereto (the "HOLDING STOCKHOLDERS")
plan to enter into an Agreement and Plan of Merger (the "MERGER AGREEMENT"),
pursuant to which, upon the terms and subject to the conditions thereof, VTP,
Inc. will merge with and into COMSYS Holding, Inc. and COMSYS Holding, Inc. will
be the surviving entity (the "MERGER").

         C. At or prior to the Effective Time of the Merger (as defined in the
Merger Agreement), the Company plans to enter into a Voting Agreement (the
"VOTING AGREEMENT") with each "Significant Holder" (as such term is defined in
the Company's restated certificate of incorporation) as of the Effective Time to
provide for certain rights and restrictions of such Significant Holders.

         D. The Company deems this Amendment to the Rights Agreement to be
necessary and desirable and in the best interests of the holders of the Rights
and has duly approved this Amendment.

         E. No event has occurred that would cause any person to be deemed an
Acquiring Person.

         F. The Company desires to amend the Rights Agreement in accordance with
Section 28(a) thereof.

         NOW, THEREFORE, for good, valuable and binding consideration the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
intending to be legally bound hereby, now agree as follows:

<PAGE>

                             STATEMENT OF AGREEMENT

         1. Amendment to Section 1. Each of the additions and deletions
described below are hereby made to the Rights Agreement.

                  (a) Section 1 of the Rights Agreement is amended by adding
thereto a new definition immediately after the definition of "Distribution Date"
and immediately before the definition of "Equivalent Preferred Stock," which new
definition shall read as follows:

                  "Effective Time" shall have the meaning given such term in the
Merger Agreement.

                  (b) Section 1 of the Rights Agreement is amended by adding
thereto two new definitions immediately after the definition of "Final
Expiration Date" and immediately before the definition of "Permitted Holder,"
which new definitions shall read as follows:

                  "Merger Agreement" shall mean the Agreement and Plan of
         Merger, dated as of July 19, 2004, among the Company, VTP, Inc.,
         Venturi Technology Partners, LLC, COMSYS Information Technology
         Services, Inc., COMSYS Holding, Inc., and each holder of capital stock
         of COMSYS Holding, Inc. party thereto, namely, Old Trafford Investment
         Pte Ltd., GTCR Fund VI, L.P., GTCR VI Executive Fund, L.P., GTCR
         Associates VI, J.P. Morgan Direct Corporate Finance Institutional
         Investors LLC, J.P. Morgan Direct Corporate Finance Private Investors
         LLC, 522 Fifth Avenue Fund, L.P., Wachovia Investors, Inc., Michael T.
         Willis, David L. Kerr, Margaret G. Reed, Joseph C. Tusa, Jr., Albert S.
         Wright IV, Mark R. Bierman, Jeffrey J. Weiner and Bernice L. Arceneaux,
         as the same may be amended from time to time.

                  "Merger Parties" shall have the meaning set forth in Section
         36 hereof.

                  (c) Section 1 of the Rights Agreement is amended by adding
thereto a new definition immediately after the definition of "Triggering Event,"
which new definition shall read as follows:

                  "Voting Agreement" shall mean the Voting Agreement to be
         entered into among the Company and each "Significant Holder" (as such
         term is defined in the Company's restated certificate of incorporation)
         as of the Effective Time (as such term is defined in the Merger
         Agreement), substantially in the form attached as Exhibit O to the
         Merger Agreement, together with any such changes as mutually agreed
         upon by the parties thereto.

         2. Amendment to Section 7(a). The Rights Agreement is hereby amended by
amending and restating Section 7(a) in its entirety as follows:

                  (a) Subject to Section 7(e) hereof, at any time after the
         Distribution Date the registered holder of any Rights Certificate may
         exercise the Rights evidenced thereby (except as otherwise provided
         herein including, without limitation, the restrictions on
         exercisability set forth in Section 9(c), Section 11(a)(iii) and
         Section 23(a) hereof) in whole or in part upon surrender of the Rights
         Certificate, with the form of election to

                                       2

<PAGE>

         purchase and the certificate on the reverse side thereof duly executed,
         to the Rights Agent at the principal office or offices of the Rights
         Agent designated for such purpose, together with payment of the
         aggregate Purchase Price with respect to the total number of one
         one-hundredths of a share (or other securities, cash or other assets,
         as the case may be) as to which such surrendered Rights are then
         exercisable, at or prior to the earlier of (i) 5:00 P.M., Charlotte,
         North Carolina time, on February 6, 2006, or such later date as may be
         established by the Board of Directors prior to the expiration of the
         Rights (such date, as it may be extended by the Board, the ("Final
         Expiration Date"), (ii) the time at which the Rights are redeemed or
         exchanged as provided in Section 23 and Section 24 hereof or (iii)
         immediately prior to the Effective Time of the Merger (the earlier of
         (i), (ii) and (iii) being herein referred to as the "Expiration Date").

         3. New Section 36. The Rights Agreement is amended by adding thereto a
new Section 36, which provides as follows:

                  Section 36. Exception for Merger Agreement and Voting
         Agreement. Notwithstanding anything in this Agreement to the contrary,
         none of COMSYS Information Technology Services, Inc., COMSYS Holding,
         Inc., the holders of capital stock of COMSYS Holding, Inc. party to the
         Merger Agreement or any other party to the Voting Agreement nor any of
         their respective Affiliates or Associates (collectively, the "MERGER
         PARTIES"), either alone or as a group, shall be or become an Acquiring
         Person, and no Stock Acquisition Date, Distribution Date, Acquisition
         Transaction or Triggering Event shall occur, no Rights shall separate
         from the Common Stock or otherwise become exercisable and no adjustment
         shall be made pursuant to Section 11 of this Agreement in each case by
         virtue of (i) the execution, delivery or performance of the Merger
         Agreement (or any amendments thereto) or the consummation of the
         transactions contemplated thereby, including, without limitation, the
         Merger (as defined in the Merger Agreement), (ii) the execution,
         delivery or performance of the Voting Agreement and any amendments
         thereto, or the consummation of the transactions contemplated thereby,
         (iii) the announcement of the Merger Agreement or the Voting Agreement,
         or (iv) any of the Merger Parties becoming the Beneficial Owner of
         shares of Common Stock pursuant to the Merger Agreement, the Voting
         Agreement or otherwise as a result of any of the transactions
         contemplated by the Merger Agreement or the Voting Agreement,
         including, without limitation, the Merger.

         4. New Section 37. The Rights Agreement is amended by adding thereto a
new Section 37, which provides as follows:

                  Section 37. Termination of Rights Agreement. Notwithstanding
         anything in this Agreement to the contrary, this Agreement shall
         terminate immediately prior to the Effective Time of the Merger and
         shall be of no further force and effect as of such time.

         5. Rights Agreement as Amended. The term "AGREEMENT" as used in the
Rights Agreement shall be deemed to refer to the Rights Agreement as amended
hereby. The foregoing amendments shall be effective as of the date hereof and,
except as set forth herein, the Rights Agreement shall remain in full force and
effect and shall be otherwise unaffected hereby.

                                       3

<PAGE>

         6. Authority. Each party represents that such party has full power and
authority to enter into this Amendment, and that this Amendment constitutes a
legal, valid and binding obligation of such party, enforceable against such
party in accordance with its terms.

         7. Counterparts. This Amendment may be executed in any number of
counterparts, and each of such counterparts shall for all purposes be deemed an
original, but all such counterparts shall together constitute but one and the
same instrument.

         8. Governing Law. This Amendment shall be deemed to be a contract made
under the laws of the State of Delaware and for all purposes shall be governed
by and construed in accordance with the laws of such State applicable to
contracts made and to be performed entirely within such State.

         9. Descriptive Headings. Descriptive headings of the several Sections
of this Amendment are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.

                            [Signature Page Follows]

                                       4

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the day and year first above written.

Attest:                                     Venturi Partners, Inc.

By:    /s/ Ken R. Bramlett, Jr.             By:    /s/ Larry L. Enterline
       -----------------------------------         -----------------------------
Name:  Ken R. Bramlett, Jr.                 Name:  Larry L. Enterline
Title: Senior Vice President and Secretary  Title: Chief Executive Officer

Attest:                                     Wachovia Bank, National Association,
                                            as Rights Agent

By:    /s/ D. Ann Harris                    By:    /s/ DeVonna Mosley
       -----------------------------------         -----------------------------
Name:  D. Ann Harris                        Name:  DeVonna Mosley
Title: Officer                              Title: Officer

                                       5

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