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10-Q - 10-Q TEXT FILE - DEWEY ELECTRONICS CORPq10sept302011.txt
EX-31 - EXHIBIT 31.2 CERTIFICATION - DEWEY ELECTRONICS CORPexh312.txt
EX-32 - EXHIBIT 32.1 CERTIFICATION - DEWEY ELECTRONICS CORPexh321.txt
EX-32 - EXHIBIT 32.2 CRTIFICATION - DEWEY ELECTRONICS CORPexh322.txt
EX-31 - EXHIBIT 31.1 CERTIFICATION - DEWEY ELECTRONICS CORPexh311.txt
EX-10 - EXHIBIT 10.1 BANK MODIFICATION AGREEMENT - DEWEY ELECTRONICS CORPexh101modagree.txt

Exhibit 10.2

TD Bank

AMENDED AND RESTATED
REVOLVING TERM NOTE

October 31, 2011

$375,000.00

For value received, the undersigned The Dewey Electronics Corporation, a New
York corporation, with an address of 27 Muller Road, Oakland, New Jersey 07436
(the Borrower), promises to pay to the order of TD Bank N.A., a National
Association with an address of 1100 Lake Street, Ramsey, New Jersey 07446
(together with its successors and assigns, the "Bank"), the principal amount
of Three Hundred Seventy-Five Thousand Dollars and Zero Cents ($375,000.00),
or if less, such amount as may be the aggregate unpaid principal amount of all
loans or advances made by the Bank to the Borrower pursuant hereto, on or
before November 30, 2012 (the "Maturity Date") unless extended in writing by
the Bank in its sole and absolute discretion, together with interest from the
date hereof on the unpaid principal balance from time to time outstanding
until paid in full. The aggregate principal balance outstanding shall bear
interest thereon at a per annum rate equal to One Percent (1 00%) above the
Wall Street Journal Prime Rate (as hereinafter defined). All accrued and
unpaid interest shall be payable monthly in arrears on the 15th day of each
month commencing on November 15, 2011.

Wall Street Journal Prime Rate means the rate published from time to time by
the Wall Street Journal as the U S Prime Rate, or, in the event the Wall
Street Journal ceases publication of Prime Rates, the base, reference or other
rate then designated by the Bank, in its sole discretion, for general
commercial loan reference purposes, it being understood that such rate is a
reference rate, not necessarily the lowest, established from time to time,
which serves as the basis upon which effective interest rates are calculated
for loans making reference thereto.

The effective interest rate applicable to the Borrower's loans evidenced
hereby shall change on the date of each change in the Wall Street Journal
Prime Rate.

This Note is an amendment and restatement of that certain $500,000.00
Revolving Term Note, dated April 20, 2009 (the "Original Note"), by the
Borrower in favor of the Bank and shall be secured to the same extent and with
the same priority as the Original Note.

Principal and interest shall be payable at the Bank's main office or at such
other place as the Bank may designate in writing in immediately available
funds in lawful money of the United States of America without set-off,
deduction or counterclaim. Interest shall be calculated on the basis of actual
number of days elapsed and a 350-day year.

This Note is a revolving note and, subject to the foregoing and in accordance
with the provisions hereof and of any and all other agreements between the
Borrower and the Bank related hereto, the Borrower may, at its option, borrow,
pay, prepay and reborrow hereunder at any time prior to the Maturity Date or
such earlier date as the obligations of the Borrower to the Bank under this
Note, and any other agreements between the Bank and the Borrower related
hereto, shall become due and payable, or the obligation of the Bank to extend
financial accommodations to the Borrower shall terminate; provided, however,
that in any event the principal balance outstanding hereunder shall at no time
exceed the face amount of this Note. This Note shall continue in full force
and effect until all obligations and liabilities evidenced by this Note are
paid in full and the Bank is no longer obligated to extend financial
accommodations to the Borrower, even if, from time to time, there are no
amounts outstanding respecting this Note.

At the option of the Bank, this Note shall become immediately due and payable
without notice or demand upon the occurrence at any time of any of the
following events of default (each, an "Event of Default"): (1) default of any
liability, obligation, covenant or undertaking of the Borrower, any endorser
or any guarantor hereof to the Bank, hereunder or otherwise, including,
without limitation, failure to pay in full and when due any installment of
principal or interest or default of the Borrower, any endorser or any
guarantor hereof under any other loan document delivered by the Borrower, any
endorser or any guarantor, or in connection with the loan evidenced by this
Note or any other agreement by the Borrower, any endorser or any guarantor
with the Bank continuing for 15 days with respect to any default (other than
with respect to the payment of money for which there is no grace period); (2)
failure of the Borrower, any endorser or any guarantor hereof to maintain
aggregate collateral security value satisfactory to the Bank continuing for 15
days; (3) default of any material liability, obligation or undertaking of the
Borrower, any endorser or any guarantor hereof to any other party continuing
for 15 days; (4) if any statement, representation or warranty heretofore, now
or hereafter made by the Borrower, any endorser or any guarantor hereof in
connection with the loan evidenced by this Note or in any supporting financial
statement of the Borrower, any endorser or any guarantor hereof shall be
determined by the Bank to have been false or misleading in any material
respect when made; (5) if the Borrower, any endorser or any guarantor hereof
is a corporation, trust, partnership or limited liability company, the
liquidation, termination or dissolution of any such organization, or the
merger or consolidation of such organization into another entity, or its
ceasing to carry on actively its present business or the appointment of a
receiver for its property; (6) the death of the Borrower, any endorser or any
guarantor hereof and, if the Borrower, any endorser or any guarantor hereof is
a partnership or limited liability company, the death of any partner or
member; (7) the institution by or against the Borrower, any endorser or any
guarantor hereof of any proceedings under the Bankruptcy Code 11 USC ss101 et
seq. or any other law in which the Borrower, any endorser or any guarantor
hereof is alleged to be insolvent or unable to pay its debts as they mature,
or the making by the Borrower, any endorser or any guarantor hereof of an
assignment for the benefit of creditors or the granting by the Borrower, any
endorser or any guarantor hereof of a trust mortgage for the benefit of
creditors; (8) the service upon the Bank of a writ in which the Bank is named
as trustee of the Borrower, any endorser or any guarantor hereof; (9) a
judgment or judgments for the payment of money shall be rendered against the
Borrower, any endorser or any guarantor hereof, and any such judgment shall
remain unsatisfied and in effect for any period of thirty (30) consecutive
days without a stay of execution; (10) any levy, lien (including mechanics
lien) except as permitted under any of the other loan documents between the
Bank and the Borrower, seizure, attachment, execution or similar process shall
be issued or levied on any of the property of the Borrower, any endorser or
any guarantor hereof; (11) the termination or revocation of any guaranty
hereof; or (12) the occurrence of such a change in the condition or affairs
(financial or otherwise) of the Borrower, any endorser or any guarantor
hereof, or the occurrence of any other event or circumstance, such that the
Bank, in its sole discretion, deems that it is insecure or that the prospects
for timely or full payment or performance of any obligation of the Borrower,
any endorser or any guarantor hereof to the Bank has been or may be impaired.

Any payments received by the Bank on account of this Note shall, at the Bank's
option, be applied to any accrued unpaid interest, then to outstanding and due
amounts of principal; then to any required escrow payment if applicable; then
to any debt protection insurance premium if applicable; and then to any fees
including late charges and then to any costs. Notwithstanding the foregoing,
any payments received after the occurrence and during the continuance of an
Event of Default shall be applied in such manner as the Bank may determine.

The Borrower hereby authorizes the Bank to charge any deposit account which
the Borrower may maintain with the Bank for any payment required hereunder
without prior notice to the Borrower.

The Borrower hereby authorizes Bank to charge checking account number
3453917839 at Bank (or such other account maintained by the Borrower at Bank
as the Borrower shall designate by written notice to the Bank) (the "Deposit
Account") to satisfy the monthly payments due and payable to Bank hereunder.
Bank is hereby authorized to charge the Deposit Account on each charge date
or, if any charge date shall fall on a Saturday, Sunday or legal holiday, then
either on the first (1st) business day immediately preceding or the first
(1st) business day immediately following any such charge date until the Note
shall be paid in full.

The Borrower agrees to maintain sufficient funds in the Deposit Account to
satisfy the payment due Bank under the Note on each charge date during the
term of the loan. If sufficient funds are not available in the Deposit Account
on any charge date to pay the amounts then due and payable under this Note,
Bank, in its sole discretion, is authorized to: (a) charge the Deposit Account
for such lesser amount as shall then be available; and/or (b) charge the
Deposit Account on such later date or dates that funds shall be available in
the Deposit Account to satisfy the payment then due (or balance of such
payment then due). Notwithstanding the foregoing, the Borrower shall only be
entitled to receive credit in respect of any payments of principal and
interest due under this Note for funds actually received by Bank as a result
of any such charges to the Deposit Account. The Borrower shall be liable to
Bank for any late fees or interest at the default rate on any payments not
made on a timely basis by the Borrower because of insufficient funds in the
Deposit Account on any charge date. In the event the Deposit Account continues
to contain insufficient funds to fully satisfy the payments due Bank under
this Note, the Borrower shall be responsible for making all such payments from
another source and in no event shall the obligations of the Borrower under
this Note be affected or diminished as a result of any shortages in the
Deposit Account, it being understood and agreed that the Borrower shall at all
times remain liable for payment in full of all indebtedness under the Note.
Bank may, at Bank's sole discretion, discontinue charging the Deposit Account
at any time on not less than ten (10) days' written notice to the Borrower, in
which event, the Borrower shall thereafter be responsible for making all
payments hereunder to Bank at the address set forth in Bank's notice or if no
such address is given, then to Bank at P.O. Box 5600, Lewiston, Maine 04243-
5600.

If pursuant to the terms of this Note, the Borrower is at any time obligated
to pay interest on the principal balance at a rate in excess of the maximum
interest rate permitted by applicable law for the loan evidenced by this Note,
the applicable interest rate shall be immediately reduced to such maximum rate
and all previous payments in excess of the maximum rate shall be deemed to
have been payments in reduction of principal and not on account of the
interest due hereunder.

The Borrower represents to the Bank that the proceeds of this Note will not be
used for personal, family or household purposes or for the purpose of
purchasing or carrying margin stock or margin securities within the meaning of
Regulations U and X of the Board of Governors of the Federal Reserve System,
12 C.F.R. Parts 221 and 224.

The Borrower and each endorser and guarantor hereof grant to the Bank a
continuing lien on and security interest in any and all deposits or other sums
at any time credited by or due from the Bank or any Bank Affiliate (as
hereinafter defined) to the Borrower and/or each endorser or guarantor hereof
and any cash, securities, instruments or other property of the Borrower and
each endorser and guarantor hereof in the possession of the Bank or any Bank
Affiliate, whether for safekeeping or otherwise, or in transit to or from the
Bank or any Bank Affiliate (regardless of the reason the Bank or Bank
Affiliate had received the same or whether the Bank or Bank Affiliate has
conditionally released the same) as security for the full and punctual payment
and performance of all of the liabilities and obligations of the Borrower
and/or any endorser or guarantor hereof to the Bank or any Bank Affiliate and
such deposits and other sums may be applied or set off against such
liabilities and obligations of the Borrower or any endorser or guarantor
hereof to the Bank or any Bank Affiliate at any time, whether or not such are
then due, whether or not demand has been made and whether or not other
collateral is then available to the Bank or any Bank Affiliate.

No delay or omission on the part of the Bank in exercising any right hereunder
shall operate as a waiver of such right or of any other right of the Bank, nor
shall any delay, omission or waiver on any one occasion be deemed a bar to or
waiver of the same or any other right on any future occasion. The Borrower and
every endorser or guarantor of this Note, regardless of the time, order or
place of signing, waives presentment, demand, protest, notice of intent to
accelerate, notice of acceleration and all other notices of every kind in
connection with the delivery, acceptance, performance or enforcement of this
Note and assents to any extension or postponement of the time of payment or
any other indulgence, to any substitution, exchange or release of collateral,
and to the addition or release of any other party or person primarily or
secondarily liable and waives all recourse to suretyship and guarantor
defenses generally, including any defense based on impairment of collateral.
To the maximum extent permitted by law, the Borrower and each endorser and
guarantor of this Note waive and terminate any homestead rights and/or
exemptions respecting any premises under the provisions of any applicable
homestead laws, including, without limitation, N.J.S.A.54:4-8.57.

The Borrower and each endorser and guarantor of this Note shall indemnify,
defend and hold the Bank and the Bank Affiliates and their directors,
officers, employees, agents and attorneys (each an "Indemnitee") harmless
against any claim brought or threatened against any Indemnitee by the
Borrower, by any endorser or guarantor, or by any other person (as well as
from attorneys' reasonable fees and expenses in connection therewith) on
account of the Bank's relationship with the Borrower or any endorser or
guarantor hereof (each of which may be defended, compromised, settled or
pursued by the Bank with counsel of the Bank's selection, but at the expense
of the Borrower and any endorser and/or guarantor), except for any claim
arising out of the gross negligence or willful misconduct of the Bank.

The Borrower and each endorser and guarantor of this Note agree to pay, upon
demand, costs of collection of all amounts under this Note including, without
limitation, principal and interest, or in connection with the enforcement of,
or realization on, any security for this Note, including, without limitation,
to the extent permitted by applicable law, reasonable attorneys' fees and
expenses. Upon the occurrence and during the continuance of an Event of
Default, interest shall accrue at a rate per annum equal to the aggregate of
4.0% plus the rate provided for herein. If any payment due under this Note is
unpaid for 15 days or more, the Borrower shall pay, in addition to any other
sums due under this Note (and without limiting the Bank's other remedies on
account thereof), a late charge equal to 6.0% of such unpaid amount. Borrower
acknowledges that: (a) such additional rate is a material inducement to the
Bank to make the loan evidenced by this Note to the Borrower, (b) the Bank
would not have made such loan in the absence of the agreement of the Borrower
to pay such additional rate, (c) such additional rate represents compensation
for increased risk to the Bank that such loan will not be repaid, and (d) such
rate is not a penalty and represents a reasonable estimate of (i) the cost to
the Bank in allocating its resources (both personal and financial) to the on-
going review, monitoring, administration and collection of such loan and (ii)
compensation to the Bank for losses that are difficult to ascertain.

This Note shall be binding upon the Borrower and each endorser and guarantor
hereof and upon their respective heirs, successors, assigns and legal
representatives, and shall inure to the benefit of the Bank and its
successors, endorsees and assigns.

The liabilities of the Borrower and any endorser or guarantor of this Note are
joint and several; provided, however, the release by the Bank of the Borrower
or any one or more endorsers or guarantors shall not release any other person
obligated on account of this Note. Any and all present and future debts of the
Borrower to any endorser or guarantor of this Note are subordinated to the
full payment and performance of all present and future debts and obligations
of the Borrower to the Bank. Each reference in this Note to the Borrower, any
endorser, and any guarantor, is to such person individually and also to all
such persons jointly. No person obligated on account of this Note may seek
contribution from any other person also obligated, unless and until all
liabilities, obligations and indebtedness to the Bank of the person from whom
contribution is sought have been irrevocably satisfied in full. The release or
compromise by the Bank of any collateral shall not release any person
obligated on account of this Note.

The Borrower and each endorser and guarantor hereof each authorizes the Bank
to complete this Note if delivered incomplete in any respect. A photographic
or other reproduction of this Note may be made by the Bank, and any such
reproduction shall be admissible in evidence with the same effect as the
original itself in any judicial or administrative proceeding, whether or not
the original is in existence.

The Borrower will from time to time execute and deliver to the Bank such
documents, and take or cause to be taken, all such other further action, as
the Bank may request in order to effect and confirm or vest more securely in
the Bank all rights contemplated by this Note or any other loan documents
related thereto (including, without limitation, to correct clerical errors) or
to vest more fully in or assure to the Bank the security interest in any
collateral securing this Note or to comply with applicable statute or law.

The Borrower agrees to execute, re-execute, cause any Guarantor(s) or other
third party(ies) involved in the loan transaction to execute and/or re-execute
and to deliver to Bank or its legal counsel, as may be deemed appropriate, any
document or instrument signed in connection with the Loan which was
incorrectly drafted and/or signed, as well as any document or instrument which
should have been signed at or prior to the closing of the Loan, but which was
not so signed and delivered. Borrower agrees to comply with any written
request by Bank within ten (10) days after receipt by Borrower of such
request. Failure by Borrower to so comply shall, at the option of Bank, upon
notice to Borrower, constitute an event of default under the Loan. The
Borrower authorizes the Bank to make any credit inquiries Bank deems necessary
and authorizes any person or credit reporting agency to give Bank a copy of
the Borrower's credit report and any other financial information it may have.

This Note is delivered to the Bank at one of its offices, shall take effect as
a sealed instrument and shall be governed by the laws of the State of New
Jersey without giving effect to the conflicts of laws principles thereof.
Any notices under or pursuant to this Note shall be deemed duly received and
effective if delivered in hand to any officer of agent of the Borrower or
Bank, or if mailed by registered or certified mail, return receipt requested,
addressed to the Borrower or Bank at the address set forth in this Note or as
any party may from time to time designate by written notice to the other
party; notwithstanding the foregoing notices to the Bank with respect to
accounting and collateral release and notices to the Trustee pursuant to a
Deed of Trust shall be sent to the Bank as follows: Attention: VP Loan
Servicing, Loan Services, 6000 Atrium Way, Mt. Laurel NJ 08054.

The term "Bank Affiliate" as used in this Note shall mean any "Affiliate" of
the Bank. The term "Affiliate" shall mean with respect to any person, (a) any
person which, directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such person,
or (b) any person who is a director or officer (i) of such person, (ii) of any
subsidiary of such person, or (iii) any person described in clause (a) above.
For purposes of this definition, control of a person shall mean the power,
direct or indirect, (x) to vote 5% or more of the Capital Stock having
ordinary voting power for the election of directors (or comparable equivalent)
of such person, or (y) to direct or cause the direction of the management and
policies of such person whether by contract or otherwise. Control may be by
ownership, contract, or otherwise.

The Borrower and each endorser and guarantor of this Note each irrevocably
submits to the nonexclusive jurisdiction of any Federal or state court sitting
in New Jersey, over any suit, action or proceeding arising out of or relating
to this Note. Each of the Borrower and each endorser and guarantor irrevocably
waives, to the fullest extent it may effectively do so under applicable law,
any objection it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in any such court and any claim that
the same has been brought in an inconvenient forum. Each of the Borrower and
each endorser and guarantor hereby consents to any and all process which may
be served in any such suit, action or proceeding, (i) by mailing a copy
thereof by registered and certified mail, postage prepaid, return receipt
requested, to the Borrower's, endorser's or guarantor's address shown below or
as notified to the Bank and (ii) by serving the same upon the Borrower(s),
endorser(s) or guarantor(s) in any other manner otherwise permitted by law,
and agrees that such service shall in every respect be deemed effective
service upon the Borrower or such endorser or guarantor.

THE BORROWER, EACH ENDORSER AND GUARANTOR AND THE BANK EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL
COUNSEL, (A) WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING IN CONNECTION WITH THIS NOTE, ANY OF THE OBLIGATIONS OF THE
BORROWER, EACH ENDORSER AND GUARANTOR TO THE BANK, AND ALL MATTERS
CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B)
AGREES NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN
WHICH A JURY TRIAL CAN NOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER, EACH
ENDORSER AND GUARANTOR AND THE BANK EACH CERTIFIES THAT NEITHER THE BANK NOR
ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE BANK WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

Executed as an instrument under seal as of October 31, 2011.
Borrower:

The Dewey Electronics Corporation
By:  /s/ John Dewey
         John Dewey, President and CEO
By:  /s/ Stephen P. Krill
         Stephen P. Krill, Treasurer
27 Muller Road
Oakland, New Jersey 0743