Document:

Indemnity Agreement

Indemnity Agreement

 

This Indemnity Agreement is made and entered into as of March 23, 2005, by and between MainStreet BankShares, Inc., a Virginia bank holding company ("MainStreet") and Smith River Community Bank, National Association, a national banking association ("Bank"). 

Whereas, Bank was formerly a wholly owned subsidiary of MainStreet and MainStreet has sold all of its hares in the Bank to Argentum Capital Management, LLC and/or its assignees ("Argentum");

Whereas, as a condition to such sale Argentum required MainStreet, and MainStreet was willing, to enter into this Indemnity Agreement;

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants of the parties contained herein and one dollar and other valuable consideration in hand paid, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	The parties have identified the loans more specifically set forth on Exhibit 

A hereto as indemnifiable loans provided that Bank has not made or 

permitted to be made on or after the Closing Date (as defined in Section 4 

hereof) any modification in any term or condition of such loan without the prior express written consent of MainStreet (each a "Loan").

	MainStreet agrees that, in the event the Bank determines in accordance 

with its own general credit and accounting policies and industry standards 

to charge off a Loan (each a "Charge Off Loan"), MainStreet will acquire 

all of Bank's right, title and interest in the Charge Off Loan within a

reasonable period of time not exceeding 45 days after notice thereof from

Bank and subject to the terms and conditions hereof.

	A Charge Off Loan shall be eligible for purchase hereunder by MainStreet 

if (a) Bank has pursued normal collection efforts in line with the collection

efforts made in the course of its business by Bank for loans comparable to

the Charge Off Loan but which are not subject to acquisition by 

MainStreet; (b) Bank provides MainStreet with adequate records for

review in advance reflecting the Charge Off Loan, the history of the

Charge Off Loan and Bank's collection efforts with respect thereto; and

(c) Bank endorses and otherwise assigns to MainStreet, without recourse

or warranty, all promissory notes, agreements, documents and collateral

rights, and guaranties with respect to the Charge Off Loan.

	Subject to the Cap (as hereinafter defined) MainStreet agrees to pay Bank

the amount certified by Bank as the amount of Charge Off Loan which the

Bank would, absent this Agreement, record as a charge off on its books

and records less the amount of any interest and fees collected on the

Charge Off Loan from and after the Closing Date (as defined in the Stock

Purchase Agreement by and among Argentum Capital Management, LLC,

MainStreet and Bank dated as of January 13, 2005) through and including 

the date MainStreet reacquires the Charge Off Loan from Bank.

MainStreet shall not be obligated to make such payment, however, until a 

period not exceeding 15 days has passed from the date Bank complies

with its obligations under Section 3(b) hereof and Bank has presented to

MainStreet documentation in compliance with Bank's obligations under

Section 3(c) hereof.

	Notwithstanding any other term hereof, MainStreet's aggregate and total

liability hereunder with respect to all Loans shall not exceed a total of the 

principal balance on the Closing Date of the Loans plus reasonable out of pocket collection expenses incurred by Bank after the Closing Date under

the terms relevant loan documents.  ("Cap").

	MainStreet's obligations hereunder are expressly conditioned on Bank's

being in compliance with, and not in breach of, its obligations under that

certain Administrative Services Agreement between the parties hereto as

of the date MainStreet would otherwise be required to acquire any Charge

Off Loan hereunder.

	This Agreement shall be governed by the laws of the Commonwealth of

Virginia (excluding only its principles of conflict of laws).

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first written above.

 

MainStreet BankShares, Inc.

By:  /s/ C. R. McCullar

Title:  President and CEO

 

Smith River Community Bank,

     National Association

By:  /s/ Ronald D. Haley

Title:  PresidentExhibit 10.3.5

 EXHIBIT 10.3.5 
  
 FIRST AMENDMENT TO PLEDGE AGREEMENT 
  
 THIS FIRST AMENDMENT TO PLEDGE AGREEMENT (this “Agreement”) is made as of the 28th day of May, 2004, by and between ANALEX CORPORATION, a corporation organized under the laws of the State of Delaware, formerly
known as Hadron, Inc. (the “Pledgor”) and BANK OF AMERICA, N. A., a national banking association (the “Lender”). 
  
 RECITALS 
  
 A.    The Pledgor, together with others, entered into a Pledge Agreement dated as of November 2, 2001 in favor of the Lender (the
same, as amended, modified, substituted, extended, and renewed from time to time, the “Original Pledge Agreement”) pursuant to which the Pledgor assigned to the Lender the Pledged Collateral (as defined in the Original Pledge Agreement) as
security for extensions of credit to be made by the Lender to Pledgor. 
  
 B.    The Pledgor has requested an increase in the credit facilities extended by the Lender, the proceeds of which shall be used, in part, for the acquisition of the stock of Beta Analytics, Incorporated. 
  
 C.    The other parties to the Original Pledge Agreement
are no longer Pledgors (as defined in the Original Pledge Agreement) and therefore Pledgor and Lender believe they are not required to execute this Agreement. 
  

D.    It is a condition precedent to Lender’s agreement to increase the credit facilities that the Pledgor execute this
agreement, amending the Original Pledge Agreement. 
  
 AGREEMENTS 
  
 NOW, THEREFORE, in consideration of
the premises and for other good and valuable consideration, receipt of which is hereby acknowledged, the Pledgor and the Lender agree as follows: 
  
 1.    The Pledgor and the Lender agree that the Recitals above are a part of this Agreement. Unless otherwise expressly defined in
this Agreement, terms defined in the Original Pledge Agreement shall have the same meaning under this Agreement. 
  
 2.    The Pledgor represents and warrants to the Lender as follows: 
  
 (a)    Pledgor has the power and authority to execute and deliver this Agreement and
perform its obligations hereunder and has taken all necessary and appropriate action to authorize the execution, delivery and performance of this Agreement; 
  
 (b)    The Original Pledge Agreement, as amended by this Agreement, and each of the other Loan Documents remains in
full force and effect, and each constitutes the valid and legally binding obligation of Pledgor, enforceable in accordance with its terms; 
  
 (c)    All of Pledgor’s representations and warranties contained in the Original Pledge Agreement true and
correct on and as of the date of Pledgor’s execution of this Agreement; and 
  
 (d)    No Event of Default and no event which, with notice, lapse of time or both would constitute an Event of
Default, has occurred and is continuing under the Original Pledge Agreement or the other Loan Documents which has not been waived in writing by the Lender. 
  
 3.    The Original Pledge Agreement is hereby amended as follows: 
  
 (a)    Schedule 1 to the Original Pledge Agreement is hereby deleted in its entirety and
Schedule 1 attached to and made a part of this Agreement is hereby inserted in place thereof. 
  

 1 

 (b)    Section 13 of the Original Pledge Agreement is hereby deleted
in its entirety and the following section is inserted in place thereof: 
  
 “Section 13. Amendments; Waivers; Modifications. 
  
 This Agreement may not be amended, modified or supplemented except in writing signed by the Lender and Analex Corporation as sole Pledgor
and shall be effective only to the extent set forth in such writing, Any Event of Default waived or consented to in any waiver, amendment, modification or supplement shall be deemed to be cured and not continuing to the extent and for the period set
forth in such waiver or consent, but no such waiver or consent shall extend to any other or subsequent Event of Default or impair any right consequent thereto.” 
  
 4.    The Pledgor hereby issues, ratifies and confirms the representations, warranties and covenants
contained in the Original Pledge Agreement, as amended hereby. The Pledgor agrees that this Agreement is not intended to and shall not cause a novation with respect to any or all of the Secured Obligations. 
  
 5.    The Pledgor acknowledges and warrants that the
Lender has acted in good faith and has conducted in a commercially reasonable manner its relationships with the Pledgor in connection with this Agreement and generally in connection with the Pledge Agreement and the Secured Obligations, the Pledgor
hereby waiving and releasing any claims to the contrary. 
  
 6.    The Pledgor shall pay at the time this Agreement is executed and delivered all fees, commissions, costs, charges, taxes and other expenses incurred by the Lender and its counsel in connection with this Agreement,
including, but not limited to, reasonable fees and expenses of the Lender’s counsel and all recording fees, taxes and charges. 
  
 7.    This Agreement may be executed in any number of duplicate originals or counterparts, each of such duplicate originals or
counterparts shall be deemed to be an original and all taken together shall constitute but one and the same instrument. The Pledgor agrees that the Lender may rely on a telecopy of any signature of the Pledgor. The Lender agrees that the Pledgor may
rely on a telecopy of this Agreement executed by the Lender. 
  
 IN WITNESS WHEREOF, the Pledgor and the Lender have executed this Agreement under seal as of the date and year first written above. 
  

									
	 WITNESS OR ATTEST:
	 	 	 	 ANALEX CORPORATION

				
	
	 	 	 	By:	 	 /s/    STERLING E. PHILLIPS, JR. (Seal)

	 	 	 	 	 	 	 	 	 Name: Sterling E. Phillips, Jr.
 Title: President and CEO

			
	 WITNESS:
	 	 	 	 BANK OF AMERICA, N. A.

				
	
	 	 	 	By:	 	 /s/    DIANE BAUMAN (Seal)

	 	 	 	 	 	 	 	 	 Name: Diane Bauman
 Title: Senior Vice President

  

 2 

 SCHEDULE 1 
  

					
	 Name of Subsidiary

	 	 Number of Shares

	 	 Certificate Number

	 Advanced Biosystems, Inc.
	 	1,000	 	2
			
	 Sycom Services, Inc.
	 	3,000	 	1
			
	 Beta Analytics, Incorporated
	 	 424
 424
	 	 7A
 8B

  

 3

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