HALIFAX CORP
EX-10.3
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<TYPE>EX-10.3
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<FILENAME>w24165exv10w3.htm
<DESCRIPTION>EX-10.3
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.3
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HALIFAX CORPORATION<BR>
5250 Cherokee Avenue<BR>
Alexandria, Virginia 22312</B>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">May&nbsp;5, 2006
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Larry L. Whiteside<BR>
1618 Forest Bend Lane<BR>
Keller, Texas 76248

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment Termination</I></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Mr.&nbsp;Whiteside:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have reviewed the letter (&#147;Election Letter&#148;) dated April&nbsp;18, 2006 from your legal counsel,
Margaret E. Holland, addressed to my attention, which indicates your election to terminate
employment with Halifax Corporation (&#147;Halifax&#148;). While Halifax does not agree with the factual
allegations set forth in the Election Letter and your conclusion that facts surrounding your
employment with Halifax give you the right to terminate such employment for &#147;Good Reason&#148; (as
defined in the Employee Severance and Restrictive Covenant Agreement between you and Halifax (the
&#147;Severance Agreement&#148;)), Halifax is willing to pay you severance for the 12&nbsp;month period
contemplated by Section 3(a) of the Severance Agreement provided you do the following:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Execute a release of claims against Halifax related to your employment with Halifax; and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Acknowledge and agree in writing to comply fully with your obligations pursuant to that
certain Restrictive Covenant Agreement dated September&nbsp;30, 2004 by and among Halifax, Employee and
certain other parties named therein including, without limitation, the non-competition provision
applicable to the severance period as set forth in Section&nbsp;1(A) of such Restrictive Covenant
Agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are agreeable to the arrangement contemplated above, your effective termination will be
May&nbsp;5, 2006 and Halifax will have its legal counsel prepare customary separation documents
containing the above provisions and send them to you and Margaret Holland.
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<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&#091;The remainder of this page is intentionally left blank&#093;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Letter Agreement<BR>
May&nbsp;5, 2006<BR>
Page 2

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this letter agreement is acceptable to you, please sign this letter where indicated below and
return an executed copy to Halifax.
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    <TD width="2%">&nbsp;</TD>
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    <TD width="64%">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left">Sincerely,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">HALIFAX CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Charles L. McNew
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: Charles L. McNew</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left"><B>ACCEPTED AND AGREED TO</B>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">/s/ L.L. Whiteside</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">L.L. Whiteside</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left">cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margaret Holland, Esquire</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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