Exhibit 10.2

 

FIRST MODIFICATION AGREEMENT

 

THIS FIRST MODIFICATION AGREEMENT (this “Agreement”), effective as of the 4th
day of November 2003, is by and between (i) BANK OF AMERICA, N.A., a national
banking association (the “Bank”); and (ii) MICROSTRATEGY INCORPORATED, a
Delaware corporation, MICROSTRATEGY SERVICES CORPORATION, a Delaware
corporation, MICROSTRATEGY MANAGEMENT CORPORATION, a Delaware corporation,
MICROSTRATEGY ADMINISTRATION CORPORATION, a Delaware corporation and
STRATEGY.COM INCORPORATED, a Delaware corporation (individually and
collectively, the “Borrower”).

 

WITNESSETH THAT:

 

WHEREAS, the Bank is the owner and holder of that certain Revolving Commercial
Note dated May 19, 2003, made by the Borrower and payable to the order of the
Bank, in the original principal amount of Ten Million and no/100 Dollars
($10,000,000.00) and bearing interest and being payable in accordance with the
terms and conditions therein set forth (the “Note”); and

 

WHEREAS, the Note is issued pursuant to, and subject to the terms and conditions
set forth in, that certain Secured Credit Agreement dated May 19, 2003, between
the parties hereto (the “Credit Agreement”); and

 

WHEREAS, the parties hereto desire to modify the terms of the Credit Agreement.

 

NOW, THEREFORE, for Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1. The Credit Agreement is hereby modified as follows:

 

(a) In Section 6.9(f), by replacing “$250,000” with “$500,000”.

 

(b) In Section 6.12, by deleting the word “and” before clause (v), and by
inserting new clauses (vi), (vii) and (viii) after clause (v) and before the
proviso, as follows:

 

(vi) investments, classified in accordance with GAAP as current assets, in money
market mutual funds (as defined by Rule 2(a)-7 of the Investment Company Act of
1940) registered under the Investment Company Act of 1940, as amended, which are
administered by reputable financial institutions having capital of at least
$500,000,000 and which have the highest credit rating by any two of S&P, Moody’s
and Fitch Ratings Services; (vii) investments in private placements which (a)
seek to preserve principal, (b) maintain a high degree of liquidity, (c) invest
in a diversified group of money market instruments and other short-term
obligations, in each case which have the highest credit rating by any two of
S&P, Moody’s and Fitch Ratings Services, and (d) generally maintain a
dollar-weighted average portfolio maturity of 90 days or less, although the
average portfolio maturity may extend to 120 days in the event of material
redemption activity; and (viii) foreign exchange hedging transactions, to the
extent such transactions have an underlying foreign exchange exposure.

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2. To the extent that the Borrowers or any of their Subsidiaries failed to
comply prior to the date hereof with Section 6.12 of the Credit Agreement, such
non-compliance is hereby waived.

 

3. The Borrower hereby acknowledges and agrees that, as of the effective date
hereof, the unpaid principal balance of the Note is $0.00 and that there are no
set-offs or defenses against the Note or the Credit Agreement.

 

4. The parties to this Agreement do not intend that this Agreement be construed
as a novation of the Note or the Credit Agreement.

 

5. Except as hereby expressly modified, the Credit Agreement shall otherwise be
unchanged, shall remain in full force and effect, and is hereby expressly
approved, ratified and confirmed.

 

6. This Agreement shall be governed in all respects by the laws of the
Commonwealth of Virginia and shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and assigns.

 

WITNESS the following signatures and seals.

 

MICROSTRATEGY INCORPORATED    [SEAL] By:  

/s/    ERIC F. BROWN        

 

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    Name: Eric F. Brown     Title: President & CFO

STRATEGY.COM INCORPORATED        [SEAL]

By:  

/s/    ERIC F. BROWN        

 

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    Name: Eric F. Brown     Title: CFO, VP Finance and Treasurer

 

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MICROSTRATEGY SERVICES CORPORATION        [SEAL] By:  

/s/    ERIC F. BROWN        

     

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        Name: Eric F. Brown         Title: Vice President and Treasurer    
MICROSTRATEGY MANAGEMENT CORPORATION   [SEAL] By:  

/s/    ERIC F. BROWN        

     

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        Name: Eric F. Brown         Title: Treasurer     MICROSTRATEGY
ADMINISTRATION CORPORATION   [SEAL] By:  

/s/    ERIC F. BROWN        

     

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        Name: Eric F. Brown         Title: President & Treasurer     BANK OF
AMERICA, N.A.   [SEAL] By:  

/s/    MICHAEL J. LANDINI        

     

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        Michael J. Landini         Senior Vice President    

 

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