Document:

Exhibit 10.29

 

Exhibit
10.29

	 	 	 
	

	 	REVOLVING NOTE
(LIBOR and/or Prime)
	 
	 	 
	 

	 	655787/00003
	$10,000,000.00
	 	Irvine, California
	 

	 	April 24, 2006

     On May 1, 2007 (“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 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 hereunder 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 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), or 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.

 

 

     “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 (2.25%) per annum, or
(b) for a Prime Loan, the fluctuating Prime Rate minus one half of one percent (-0.50%) 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;

2

 

	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/ Cathy L. McCarthy	 	 
	 	 	 	 	 
	 

	 	 	 	Cathy L. McCarthy, President/COO	 	 
	 
	 	 	 	 	 	 
	By:

	 	 	 	/s/ Steve D. Handy	 	 
	 	 	 	 	 
	 

	 	 	 	Steve D. Handy, SVP/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 24,
2006, 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___.

	 	 	 	 	 	 	 
	“Borrower”	 	SM&A, a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Cathy L. McCarthy, President/COO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Steve D. Handy, SVP/CFO/Secretary	 	 

4exv10w2

 

Exhibit 10.2

AMENDMENT TO CHIEF EXECUTIVE EMPLOYMENT AGREEMENT

     Pursuant to Section 16(a) of the Chief Executive Employment Agreement (“Agreement”) effective
September 13, 2005 by and between CTI Group (Holdings), Inc. (the “Corporation”) and John Birbeck
(“Employee”), the parties hereby agree that Section 4(b) of the Agreement is changed and amended to
read as follows:

     (b) Additional Benefits. Employee shall be entitled to five (5) weeks (25 working
days) of paid vacation per year, with no right to carry over vacation to the next year, but
unused vacation may be sold back to the Corporation.

     Employee shall be paid a non-accountable automobile allowance of $500 per month for
each full month during the Employment Term, payable in accordance with the Corporation’s
customary and usual payroll practices for its employees.

     During the period that Employee is employed by the Corporation pursuant to this
Agreement, the Corporation will provide Ms. Amanda Powell with economy class air fare for
up to 12 round trips from the United States to the United Kingdom each full calendar year
(and a pro rata number of such trips for any partial calendar year of such employment), and
will reimburse her for the amount she pays to obtain health insurance coverage for herself
(up to the amount the Corporation pays for individual coverage for the Corporation’s
employees).

     The Corporation will reimburse Employee for the amount he pays for temporary apartment
rental (not to exceed $1,800.00 per month without the prior approval of the Corporation)
until such time as Employee has made arrangements for permanent housing. Employee shall
also be paid a furnishing and household goods allowance in the amount of $12,000.

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed
this Amendment this 12th day of May, 2006.

	 	 	 	 	 	 	 
	 	 	CTI GROUP (HOLDINGS), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/Rupert Armitage
 

	 	 
	 	 	Rupert Armitage, Director	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	     /s/John Birbeck	 	 
	 

	 	 	 	 
	 	 	John Birbeck, Employee	 	 

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