Document:

exv10w2

 

EXHIBIT 10.2

-COPY-

			
	Baltimore, Maryland 
January 31,2008
	 	$900,000
	 

PROMISSORY NOTE

(Auxiliary Revolver Facility)

IMPORTANT NOTICE

THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH
CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO
OBTAIN A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE.

     FOR VALUE RECEIVED, the undersigned (collectively “Borrower”) promises to pay to the order
of PROVIDENT BANK, a Maryland banking corporation (“Lender”), at the Lender’s offices at 114
East Lexington Street, Baltimore, Maryland 21202 or at such other place as the holder of this
Promissory Note may from time to time designate, the principal sum of Nine Hundred Thousand and
NO/100 Dollars ($900,000), or so much as has been disbursed to the Borrower hereunder, together
with interest thereon at the rate or rates hereafter specified and any and all other sums which
may be owing to the Lender by the Borrower pursuant to this Promissory Note. At no time shall
the principal amount outstanding under this Promissory Note and any other Promissory Note
issued pursuant to the Agreement (as hereinafter defined) exceed Six Million Nine Hundred
Thousand Dollars ($6,900,000). The following terms shall apply to this Promissory Note.

	1.	 	INTEREST. The unpaid principal amount outstanding from time to time pursuant to
this Promissory Note shall bear interest at two percent (2%) per annum above the rate of
interest announced from time to time by the Lender as its prime commercial lending rate of
interest, it being understood that such announced rate bears no inference, implication,
representation, or warranty that such announced rate is charged to any particular customer
or customers of the Lender. Interest on the principal amount outstanding shall be adjusted
daily with the rate for each day being the rate in effect at the close of business on that
day.

	2.	 	CALCULATION OF INTEREST. Interest shall be calculated on the basis of a three
hundred sixty (360) days per year factor applied to the actual days on which there exists
an unpaid balance hereunder.

	3.	 	REPAYMENT.

(a) Principal: The Borrower shall make $25,000 payments on the 15th
day of February, March, and April 2008 which sums shall be applied to the reduction of
the principal amount outstanding hereunder. The unpaid principal balance of this
Promissory Note shall be paid by the Borrower in immediately available funds on April 30,
2008.

(b) Interest: Accrued interest shall be paid by the Borrower, in arrears, in
immediately available funds on the first day of each successive month beginning on
February 1, 2008.

All amounts owed by the Borrower to the Lender shall be payable, when due, by
preauthorized debit of Account #20-65310679 and Borrower agrees to maintain a balance in
such account which is at least equal to the payment amount on each payment due date.

	4.	 	LATE PAYMENT CHARGE. If any payment due hereunder (including any payment in
whole or in part of principal) is not received by the holder within fifteen (15) calendar
days after its due date, the Borrower shall pay a late payment charge equal to five
percent (5%) of the amount then due.

	5.	 	APPLICATION OF PAYMENTS. All payments made pursuant to this Promissory Note
shall be applied first to late payment charges or other sums owed to the holder, next to
accrued interest, and then to principal, or in such other order or proportion as the
holder, in the holder’s sole and absolute discretion, may elect from time to time.

	6.	 	PREPAYMENT. The Borrower may prepay this Promissory Note in whole or in part at
any time or from time to time without premium or additional interest.

	7.	 	DEFAULT. Upon a failure to pay any sum due pursuant to this Promissory Note or a
default in the performance of any of the covenants, conditions or terms of the Fourth
Amended and Restated Loan and Security Agreement, dated June 29, 2007, executed by
Borrower and Lender, as the same may have been subsequently amended, restated,
supplemented or modified from time to time, including the Second Amendment and Waiver
dated the date hereof (the “Agreement”), or of any other agreement or document made by
any Borrower for the benefit of the Lender or any holder (collectively with the
Agreement, the “Loan Documents”), the holder of this Promissory Note, in the holder’s
sole and absolute discretion and without notice or demand, may exercise any of the
following rights, in addition to any rights or remedies under applicable law or any of
the Loan Documents:

 

 

	 	(a)	 	Default Rate of Interest. The holder may raise the rate of interest accruing
on the unpaid balance due under this Promissory Note by two (2) percentage points above
the rate of interest otherwise applicable until such time as such default has been cured
to the Lender’s entire satisfaction, independent of whether the holder of this Promissory
Note elects to accelerate the unpaid principal balance as a result of such default.
	 
	 	(b)	 	Acceleration. The holder may declare the entire unpaid principal balance
plus accrued interest and all other sums due hereunder immediately due and payable.
Reference is made to the Loan Documents for further and additional rights of the holder
to declare the entire unpaid principal balance plus accrued interest and all other sums
due hereunder immediately due and payable. The Borrower agrees that a default under this
Promissory Note or a default by the Borrower under any of the Loan Documents is a default
by the Borrower under all other liabilities and obligations of the Borrower to the
holder, and that the holder shall have the right to declare immediately due and payable
all of such other liabilities and obligations.
	 
	 	(c)	 	Confession of Judgment. The Borrower authorizes any attorney admitted to
practice before any court of record in the United States to appear on behalf of the
Borrower in any court in one or more proceedings, or before any clerk thereof or
prothonotary or other court official, and to confess judgment against the Borrower,
without prior notice or opportunity of the Borrower for prior hearing, in favor of the
holder of this Promissory Note in the full amount due on this Promissory Note (including
principal, accrued interest and any and all penalties, fees and costs) plus court costs
and reasonable legal fees. In addition to all other courts in which judgment may be
confessed against the Borrower upon this Promissory Note, the Borrower agrees that venue
and jurisdiction shall be proper in the Circuit Court of any County of the State of
Maryland or of Baltimore City, Maryland, or in the United States District Court For The
District Of Maryland. For the purpose of allowing the holder of this Promissory Note to
file a confession of judgment in the Commonwealth of Virginia to recover any sums of
money due hereunder, the Borrower hereby duly constitutes and appoints David Matuszewski
its attorney in fact to confess judgment against the Borrower in the Circuit Court for
the County of Fairfax, Virginia and in any other circuit court or court located in the
Commonwealth of Virginia, and the Borrower acknowledges and agrees that jurisdiction and
venue shall be proper in such court and in any other city or county in the Commonwealth
of Virginia The Borrower waives the benefit of any and every statute, ordinance, or rule
of court which may be lawfully waived conferring upon the Borrower any right or
privilege of exemption, homestead rights, stay of execution, or supplementary
proceedings, or other relief from the enforcement or immediate enforcement of a judgment
or related proceedings on a judgment. The authority and power to appear for and enter
judgment against the Borrower shall not be exhausted by one or more exercises thereof,
or by any imperfect exercise thereof, and shall not be extinguished by any judgment
entered pursuant thereto; such authority and power may be exercised on one or more
occasions from time to time, in the same or different jurisdictions, as often as the
holder shall deem necessary or advisable.

	8.	 	INTEREST RATE AFTER JUDGMENT. If judgment is entered against the Borrower on this
Promissory Note, the amount of the judgment entered (which may include principal, interest,
penalties, fees, and costs) shall bear interest at the higher of the above described default
interest rate as determined on the date of the entry of the judgment, or the legal rate of
interest then applicable to judgments in the jurisdiction in which judgment was entered.

	9.	 	EXPENSES OF COLLECTION. If this Promissory Note is referred to an attorney for
collection, whether or not judgment has been confessed or suit has been filed, the Borrower
shall pay all of the holder’s costs, fees (including, but not limited to, the holder’s
attorneys’ fees, paralegal charges and expenses) and all other expenses resulting from such
referral.

	10.	 	WAIVERS. The Borrower, and all parties to this Promissory Note, whether maker,
indorser, or guarantor, waive presentment, notice of dishonor and protest.

	11.	 	LOAN AGREEMENT; SECURITY. The Auxiliary Revolver Facility is being provided by the
Lender to the Borrower pursuant to the terms of the Agreement.

	12.	 	EXTENSIONS OF MATURITY. All parties to this Promissory Note, whether maker,
indorser, or guarantor, agree that the maturity of this Promissory Note, or any payment due
hereunder, may be extended at any time or from time to time without releasing, discharging,
or affecting the liability of such party.

	13.	 	NOTICES. Any notice or demand required or permitted by or in connection with this
Promissory Note shall be in writing and shall be made by hand delivery, by Federal Express or
other similar overnight delivery service, or by certified mail, unrestricted delivery, return
receipt requested, postage prepaid, addressed to the respective parties at the appropriate
address set forth on the signature page hereof or to such other address as may be hereafter
specified by written notice by the respective parties. Notice shall be considered given as of
the date of facsimile or hand delivery, one (1) calendar day after delivery to Federal
Express or similar overnight delivery service, or three (3) calendar days after the date of
mailing, independent of the date of actual delivery or whether delivery is ever in fact made,
as the case may be, provided the giver of notice can establish the fact that notice was given
as provided herein. If notice is tendered pursuant to the provisions of this section and is
refused by the intended recipient thereof,

 

 

	 	 	the notice, nevertheless, shall be considered to have been given and shall be effective as of
the date herein provided. Notwithstanding anything to the contrary, all notices and demands
for payment from the holder actually received in writing by the Borrower shall be considered
to be effective upon the receipt thereof by the Borrower regardless of the procedure or
method utilized to accomplish delivery thereof to the Borrower.

	14.	 	LIABILITY; ASSIGNABILITY; BINDING NATURE. If more than one person or entity is
executing this Promissory Note as a Borrower, all liabilities under this Promissory Note shall
be joint and several with respect to each of such persons or entities. This Promissory Note
may be assigned by the Lender or any holder at any time. This Promissory Note shall inure to
the benefit of and be enforceable by the Lender and the Lender’s successors and assigns and
any other person to whom the Lender may grant an interest in the Borrower’s obligations to the
Lender, and shall be binding and enforceable against the Borrower and the Borrower’s personal
representatives, successors and assigns.

	15.	 	INVALIDITY OF ANY PART. If any provision or part of any provision of this Promissory
Note shall for any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this
Promissory Note and this Promissory Note shall be construed as if such invalid, illegal or
unenforceable provision or part thereof had never been contained herein, but only to the
extent of its invalidity, illegality or unenforceability.

	16.	 	MAXIMUM RATE OF INTEREST; COMMERCIAL LOAN. Notwithstanding any provision of this
Promissory Note or the Loan Documents to contrary, the Borrower shall not be obligated to pay
interest pursuant to this Promissory Note in excess of the maximum rate of interest permitted
by the laws of any state determined to govern this Promissory Note or the laws of the United
States applicable to loans in such state. If any provision of this Promissory Note shall ever
be construed to require the payment of any amount of interest in excess of that permitted by
applicable law, then the interest to be paid pursuant to this Promissory Note shall be held
subject to reduction to the amount allowed under applicable law, and any sums paid in excess
of the interest rate allowed by law shall be applied in reduction of the principal balance
outstanding pursuant to this Promissory Note. The Borrower acknowledges that it has been
contemplated at all times by the Borrower that the laws of the State of Maryland will govern
the maximum rate of interest that it is permissible for the holder of this Promissory Note to
charge the Borrower pursuant to this Promissory Note. The Borrower warrants that this
Promissory Note evidences a commercial loan transaction within the meaning of Sections
12-101(c) and 12-103(e), Commercial Law Article, Annotated Code of Maryland,
as amended, and that no proceeds of such loan transaction are being used by the Borrower for
any consumer purpose.

	17.	 	CHOICE OF LAW; CONSENT TO VENUE AND JURISDICTION; ACTIONS AGAINST LENDER. This
Promissory Note shall be governed, construed and interpreted strictly in accordance with the
laws of the State of Maryland. The Borrower consents to the jurisdiction and venue of the
courts of any county in the State of Maryland or the courts of Baltimore City, Maryland or to
the jurisdiction and venue of the United States District Court for the District of Maryland
in any action or judicial proceeding brought to enforce, construe or interpret this
Promissory Note. The Borrower agrees to stipulate in any future proceeding that this
Promissory Note is to be considered for all purposes to have been executed and delivered
within the geographical boundaries of the State of Maryland, even if it was, in fact,
executed and delivered elsewhere. Any action brought by the Borrower against the Lender which
is based, directly or indirectly, or in whole or in part, upon this Promissory Note or any
matter related to this Promissory Note or any other Loan Document shall be brought only in
the courts of the State of Maryland.

	18.	 	WAIVER OF JURY TRIAL. The Borrower (by its execution hereof) and the Lender (by its
acceptance of this Promissory Note) agree that any suit, action, or proceeding, whether claim
or counterclaim, brought or instituted by the Borrower, the Lender or any successor or assign
of the Borrower or the Lender on or with respect to this Promissory Note or any other Loan
Document or which in any way relates, directly or indirectly, to the obligations of the
Borrower to the Lender pursuant to this Promissory Note or any other Loan Document, or the
dealings of the parties with respect thereto, shall be tried only by a court and not by a
jury. The Borrower and the Lender hereby expressly waive any right to a trial by jury in any
such suit, action, or proceeding.

	19.	 	PRIOR NOTE. This Note is an amendment and restatement of a Promissory Note
(Auxiliary Revolver Facility) dated June 29, 2007 in the maximum original principal amount of
One Million and 00/100 Dollars ($1,000,000.00) (the “First Amended and Restated Note”) which
itself was an amendment and restatement of a Promissory Note (Auxiliary Revolver Facility)
dated July 6, 2006 in the maximum original principal amount of One Million and 00/100 Dollars
($1,000,000.00) (the “Original Note”), as secured. Nothing contained in this Note shall in
any way operate as a novation, release or discharge of any of the provisions of the Original
Note as amended and restated by the First Amended and Restated Note or any other related
document.

 

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned execute this
Promissory Note under seal, as Borrower, as of the date first written above.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	HALIFAX CORPORATION OF VIRGINIA, f/k/a Halifax Corporation
	 
	/s/ Arthur Whalen

	 	 	 	By:
	 	/s/ Joseph Sciacca
	 	(SEAL)
	 

	 	 	 	 	 	 	 	 
	Name: Arthur Whalen

	 	 	 	 	 	Joseph Sciacca

Chief Financial Officer

5250 Cherokee Avenue

Alexandria, Virginia 22312	 	 

	 	 	 	 	 
	 	HALIFAX ENGINEERING, INC.

 	 
	 	By:  	/s/ Joseph Sciacca
 	             (SEAL) 
	 	 	Joseph Sciacca 	 
	 	 	Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312 	 
	 
	 	MICROSERV LLC

 	 
	 	By:  	/s/ Joseph Sciacca
 	      (SEAL) 
	 	 	Joseph Sciacca 	  
	 	 	Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312 	 
	 
	 	HALIFAX ALPHANATIONAL ACQUISITION, INC.

 
	 	By:  	/s/ Joseph  Sciacca
 	      (SEAL) 
	 	 	Joseph  Sciacca 	 
	 	 	Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312 	 
	 

Notice Address For Lender:

Provident Bank
 114 East
Lexington Street

Baltimore, Maryland 21202

Attention: Michael
McShane/453

With a copy to:

Provident Bank

Legal and Compliance Department 
114 East

Lexington Street

Baltimore, Maryland 21202

Attention: General Counsel

APS2008exv10w3

 

EXHIBIT 10.3

-COPY-

			
	Baltimore, Maryland 

January 31, 2008
	 	$6,000,000

PROMISSORY NOTE 

(Revolving Line of Credit)

IMPORTANT NOTICE

THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES
A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT
AGAINST YOU WITHOUT ANY FURTHER NOTICE.

     FOR VALUE RECEIVED, the undersigned (collectively “Borrower”) promises to pay to the order
of PROVIDENT BANK, a Maryland banking corporation (“Lender”), at the Lender’s offices at 114
East Lexington Street, Baltimore, Maryland 21202 or at such other place as the holder of this
Promissory Note may from time to time designate, the principal sum of Six Million and NO/100
Dollars ($6,000,000), or so much as has been disbursed to the Borrower hereunder, together with
interest thereon at the rate or rates hereafter specified and any and all other sums which may
be owing to the Lender by the Borrower pursuant to this Promissory Note. At no time shall the
principal amount outstanding under this Promissory Note and any other Promissory Note issued
pursuant to the Agreement (as hereinafter defined) exceed Six Million Nine Hundred Thousand
Dollars ($6,900,000). The following terms shall apply to this Promissory Note.

	1.	 	INTEREST. The unpaid principal amount outstanding from time to time pursuant to
this Promissory Note shall bear interest at one percent (1%) per annum above the rate of
interest announced from time to time by the Lender as its prime commercial lending rate of
interest, it being understood that such announced rate bears no inference, implication,
representation, or warranty that such announced rate is charged to any particular customer
or customers of the Lender. Interest on the principal amount outstanding shall be adjusted
daily with the rate for each day being the rate in effect at the close of business on that
day.

	2.	 	CALCULATION OF INTEREST. Interest shall be calculated on the basis of a three
hundred sixty (360) days per year factor applied to the actual days on which there exists
an unpaid balance hereunder.
	 
	3.	 	REPAYMENT.
	 
	 	 	(a)Principal: The principal balance of this Promissory Note and any accrued but
unpaid interest shall be paid in full by the Borrower in immediately available funds on
April 30, 2008.
	 
	 	 	(b)Interest: Accrued interest shall be paid by the Borrower, in arrears, in
immediately available funds on the first day of each successive month beginning on
February 1, 2008.
	 
	 	 	All amounts owed by the Borrower to the Lender shall be payable, when due, by
preauthorized debit of Account #20-65310679 and Borrower agrees to maintain a balance in
such account which is at least equal to the payment amount on each payment due date.

	4.	 	LATE PAYMENT CHARGE. If any payment due hereunder (including any payment in
whole or in part of principal) is not received by the holder within fifteen (15) calendar
days after its due date, the Borrower shall pay a late payment charge equal to five
percent (5%) of the amount then due.

	5.	 	APPLICATION OF PAYMENTS. All payments made pursuant to this Promissory Note
shall be applied first to late payment charges or other sums owed to the holder, next to
accrued interest, and then to principal, or in such other order or proportion as the
holder, in the holder’s sole and absolute discretion, may elect from time to time.

	6.	 	PREPAYMENT. The Borrower may prepay this Promissory Note in whole or in part at
any time or from time to time without premium or additional interest.

	7.	 	DEFAULT. Upon a failure to pay any sum due pursuant to this Promissory Note or a
default in the performance of any of the covenants, conditions or terms of the Fourth
Amended and Restated Loan and Security Agreement, dated June 29, 2007, executed by
Borrower and Lender, as the same may have been subsequently amended, restated,
supplemented or modified from time to time, including the Second Amendment and Waiver
dated the date hereof (the “Agreement”), or of any other agreement or document made by
any Borrower for the benefit of the Lender or any holder (collectively with the
Agreement, the “Loan Documents”), the holder of this Promissory Note, in the holder’s
sole and absolute discretion and without notice or demand, may exercise any of the
following rights, in addition to any rights or remedies under applicable law or any of
the Loan Documents:

 

 

	 	(a)	 	Default Rate of Interest. The holder may raise the rate of interest accruing
on the unpaid balance due under this Promissory Note by two (2) percentage points above
the rate of interest otherwise applicable until such time as such default has been cured
to the Lender’s entire satisfaction, independent of whether the holder of this
Promissory Note elects to accelerate the unpaid principal balance as a result of such
default.
	 
	 	(b)	 	Acceleration. The holder may declare the entire unpaid principal balance
plus accrued interest and all other sums due hereunder immediately due and payable.
Reference is made to the Loan Documents for further and additional rights of the holder
to declare the entire unpaid principal balance plus accrued interest and all other sums
due hereunder immediately due and payable. The Borrower agrees that a default under this
Promissory Note or a default by the Borrower under any of the Loan Documents is a default
by the Borrower under all other liabilities and obligations of the Borrower to the
holder, and that the holder shall have the right to declare immediately due and payable
all of such other liabilities and obligations.
	 
	 	(c)	 	Confession of Judgment. The Borrower authorizes any attorney admitted to
practice before any court of record in the United States to appear on behalf of the
Borrower in any court in one or more proceedings, or before any clerk thereof or
prothonotary or other court official, and to confess judgment against the Borrower,
without prior notice or opportunity of the Borrower for prior hearing, in favor of the
holder of this Promissory Note in the full amount due on this Promissory Note (including
principal, accrued interest and any and all penalties, fees and costs) plus court costs
and reasonable legal fees. In addition to all other courts in which judgment may be
confessed against the Borrower upon this Promissory Note, the Borrower agrees that venue
and jurisdiction shall be proper in the Circuit Court of any County of the State of
Maryland or of Baltimore City, Maryland, or in the United States District Court For The
District Of Maryland. For the purpose of allowing the holder of this Promissory Note to
file a confession of judgment in the Commonwealth of Virginia to recover any sums of
money due hereunder, the Borrower hereby duly constitutes and appoints David Matuszewski
its attorney in fact to confess judgment against the Borrower in the Circuit Court for
the County of Fairfax, Virginia and in any other circuit court or court located in the
Commonwealth of Virginia, and the Borrower acknowledges and agrees that jurisdiction and
venue shall be proper in such court and in any other city or county in the Commonwealth
of Virginia The Borrower waives the benefit of any and every statute, ordinance, or rule
of court which may be lawfully waived conferring upon the Borrower any right or privilege
of exemption, homestead rights, stay of execution, or supplementary proceedings, or other
relief from the enforcement or immediate enforcement of a judgment or related proceedings
on a judgment. The authority and power to appear for and enter judgment against the
Borrower shall not be exhausted by one or more exercises thereof, or by any imperfect
exercise thereof, and shall not be extinguished by any judgment entered pursuant thereto;
such authority and power may be exercised on one or more occasions from time to time, in
the same or different jurisdictions, as often as the holder shall deem necessary or
advisable.

	8.	 	INTEREST RATE AFTER JUDGMENT. If judgment is entered against the Borrower on this
Promissory Note, the amount of the judgment entered (which may include principal, interest,
penalties, fees, and costs) shall bear interest at the higher of the above described default
interest rate as determined on the date of the entry of the judgment, or the legal rate of
interest then applicable to judgments in the jurisdiction in which judgment was entered.

	9.	 	EXPENSES OF COLLECTION. If this Promissory Note is referred to an attorney for
collection, whether or not judgment has been confessed or suit has been filed, the Borrower
shall pay all of the holder’s costs, fees (including, but not limited to, the holder’s
attorneys’ fees, paralegal charges and expenses) and all other expenses resulting from such
referral.

	10.	 	WAIVERS. The Borrower, and all parties to this Promissory Note, whether maker,
indorser, or guarantor, waive presentment, notice of dishonor and protest.

	11.	 	LOAN AGREEMENT; SECURITY. The Line of Credit is being provided by the Lender to the
Borrower pursuant to the terms of the Agreement.

	12.	 	EXTENSIONS OF MATURITY. All parties to this Promissory Note, whether maker,
indorser, or guarantor, agree that the maturity of this Promissory Note, or any payment due
hereunder, may be extended at any time or from time to time without releasing, discharging,
or affecting the liability of such party.

	13.	 	NOTICES. Any notice or demand required or permitted by or in connection with this
Promissory Note shall be in writing and shall be made by hand delivery, by Federal Express or
other similar overnight delivery service, or by certified mail, unrestricted delivery, return
receipt requested, postage prepaid, addressed to the respective parties at the appropriate
address set forth on the signature page hereof or to such other address as may be hereafter
specified by written notice by the respective parties. Notice shall be considered given as of
the date of facsimile or hand delivery, one (1) calendar day after delivery to Federal
Express or similar overnight delivery service, or three (3) calendar days after the date of
mailing, independent of the date of actual delivery or whether delivery is ever in fact made,
as the case may be, provided the giver of notice can establish the fact that notice was given
as provided herein. If notice is tendered pursuant to the provisions of this section and is
refused by the intended recipient thereof,

 

 

	 	 	the notice, nevertheless, shall be considered to have been given and shall be effective as
of the date herein provided. Notwithstanding anything to the contrary, all notices and
demands for payment from the holder actually received in writing by the Borrower shall be
considered to be effective upon the receipt thereof by the Borrower regardless of the
procedure or method utilized to accomplish delivery thereof to the Borrower.
	 
	14.	 	LIABILITY; ASSIGNABILITY; BINDING NATURE. If more than one person or entity is
executing this Promissory Note as a Borrower, all liabilities under this Promissory Note shall
be joint and several with respect to each of such persons or entities. This Promissory Note
may be assigned by the Lender or any holder at any time. This Promissory Note shall inure to
the benefit of and be enforceable by the Lender and the Lender’s successors and assigns and
any other person to whom the Lender may grant an interest in the Borrower’s obligations to the
Lender, and shall be binding and enforceable against the Borrower and the Borrower’s personal
representatives, successors and assigns.
	 
	15.	 	INVALIDITY OF ANY PART. If any provision or part of any provision of this Promissory
Note shall for any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this
Promissory Note and this Promissory Note shall be construed as if such invalid, illegal or
unenforceable provision or part thereof had never been contained herein, but only to the
extent of its invalidity, illegality or unenforceability.
	 
	16.	 	MAXIMUM RATE OF INTEREST; COMMERCIAL LOAN. Notwithstanding any provision of this
Promissory Note or the Loan Documents to contrary, the Borrower shall not be obligated to pay
interest pursuant to this Promissory Note in excess of the maximum rate of interest permitted
by the laws of any state determined to govern this Promissory Note or the laws of the United
States applicable to loans in such state. If any provision of this Promissory Note shall ever
be construed to require the payment of any amount of interest in excess of that permitted by
applicable law, then the interest to be paid pursuant to this Promissory Note shall be held
subject to reduction to the amount allowed under applicable law, and any sums paid in excess
of the interest rate allowed by law shall be applied in reduction of the principal balance
outstanding pursuant to this Promissory Note. The Borrower acknowledges that it has been
contemplated at all times by the Borrower that the laws of the State of Maryland will govern
the maximum rate of interest that it is permissible for the holder of this Promissory Note to
charge the Borrower pursuant to this Promissory Note. The Borrower warrants that this
Promissory Note evidences a commercial loan transaction within the meaning of Sections
12-101(c) and 12-103(e), Commercial Law Article. Annotated Code of Maryland,
as amended, and that no proceeds of such loan transaction are being used by the Borrower for
any consumer purpose.
	 
	17.	 	CHOICE OF LAW; CONSENT TO VENUE AND JURISDICTION; ACTIONS AGAINST LENDER. This
Promissory Note shall be governed, construed and interpreted strictly in accordance with the
laws of the State of Maryland. The Borrower consents to the jurisdiction and venue of the
courts of any county in the State of Maryland or the courts of Baltimore City, Maryland or to
the jurisdiction and venue of the United States District Court for the District of Maryland
in any action or judicial proceeding brought to enforce, construe or interpret this
Promissory Note. The Borrower agrees to stipulate in any future proceeding that this
Promissory Note is to be considered for all purposes to have been executed and delivered
within the geographical boundaries of the State of Maryland, even if it was, in fact,
executed and delivered elsewhere. Any action brought by the Borrower against the Lender which
is based, directly or indirectly, or in whole or in part, upon this Promissory Note or any
matter related to this Promissory Note or any other Loan Document shall be brought only in
the courts of the State of Maryland.
	 
	18.	 	WAIVER OF JURY TRIAL. The Borrower (by its execution hereof) and the Lender (by its
acceptance of this Promissory Note) agree that any suit, action, or proceeding, whether claim
or counterclaim, brought or instituted by the Borrower, the Lender or any successor or assign
of the Borrower or the Lender on or with respect to this Promissory Note or any other Loan
Document or which in any way relates, directly or indirectly, to the obligations of the
Borrower to the Lender pursuant to this Promissory Note or any other Loan Document, or the
dealings of the parties with respect thereto, shall be tried only by a court and not by a
jury. The Borrower and the Lender hereby expressly waive any right to a trial by jury in any
such suit, action, or proceeding.
	 
	19.	 	PRIOR NOTE. This Note is an amendment and restatement of a Promissory Note
(Revolving Line of Credit) dated June 29, 2007 in the maximum original principal amount of
Ten Million and 00/100 Dollars ($10,000,000.00) (the “First Amended and Restated Note”),
which itself was an amendment and restatement of a Promissory Note (Revolving Line of Credit)
dated July 6, 2006 in the maximum original principal amount of Twelve Million and 00/100
Dollars ($12,000,000.00) (the “Original Note”), as secured. Nothing contained in this Note
shall in any way operate as a novation, release or discharge of any of the provisions of the
Original Note as amended and restated by the First Amended and Restated Note or any other
related document.

 

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned execute this
Promissory Note under seal, as Borrower, as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	HALIFAX CORPORATION OF VIRGINIA, f/k/a Halifax Corporation
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Arthur J Whalen
	 	 	 	By:
	 	/s/ Joseph Sciacca
 

	 	(SEAL) 
	Name:

	 Arthur J Whalen
 

	 	 
	 	 	 	Joseph Sciacca

Chief Financial Officer

5250 Cherokee Avenue

Alexandria, Virginia 22312	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	HALIFAX ENGINEERING, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Joseph Sciacca
 

	 	(SEAL) 
	 

	 	 	 	 	 	 	 	Joseph Sciacca

Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	MICROSERV LLC
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By;
	 	/s/ Joseph Sciacca
 

	 	(SEAL) 
	 

	 	 	 	 	 	 	 	Joseph Sciacca

Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	HALIFAX ALPHANATIONAL ACQUISITION, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Joseph Sciacca
 

	 	(SEAL) 
	 

	 	 	 	 	 	 	 	Joseph Sciacca

Vice President, Secretary and Treasurer

5250 Cherokee Avenue

Alexandria, Virginia 22312	 	 

Notice Address For Lender:

Provident Bank 
114 East
Lexington Street

Baltimore, Maryland 21202

Attention: Michael McShane/453

With a copy to:

Provident Bank

Legal and Compliance Department

114 East Lexington Street

Baltimore, Maryland 21202

Attention: General Counsel

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