Exhibit 10.1

 

Dated October 5, 2004

 

LOAN AGREEMENT

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Loan Agreement

 

between

 

(1) Investcorp Technologies Ventures L.P., West Wind Building, P.O. Box 1111,
Grand Cayman, Cayman Islands

 

- hereinafter referred to as “Lender” -

 

and

 

(2) Willtek Communications GmbH, Gutenbergstraße 2 - 4, 85737 Ismaning

 

- hereinafter referred to as “Borrower” –

 

(3) Wireless Telecom Group Inc., Parsippany, New Jersey

 

- - hereinafter referred to as “Parent” -

 

1 Loan

 

  1.1 Lender shall make available to Borrower a loan in the principal amount of
up to

 

  1.1.1 $4,798,481 (in words: US Dollars four million seven hundred ninety eight
thousand four hundred eighty one), plus

 

  1.1.2 the interest accrued under the loan agreement of March 12, 2003 between
the Borrower and the Lender, in the time period between September 30 and the
closing of the envisaged sale of all shares in the Borrower from the Lender and
its co-shareholder to the Parent as defined in the respective Stock Purchase
Agreement (hereinafter the “Closing”); [this amount is to be converted in USD at
the exchange rate applicable at the Closing]

 

  1.1.3 the Euro amount pursuant to Section 1.1.2 above, shall be converted into
USD at the exchange rate applicable on today’s date, close of business.

 

(hereinafter the “Principal”).

 

  1.2 The full Principal amount shall be lent by Lender to Borrower on the
Closing.

 

  1.3 The purpose of the loan is to refinance the current EUR 3.5 million face
value loan plus accrued interest referred to in section 1.1.2 above.

 

2 Interest

 

  2.1 The amount of the Principal paid to Borrower shall bear interest in the
amount of 8.0 % p.a., which shall be calculated on the basis of a 365-day year.

 

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  2.2 The interest shall be payable upon repayment of the Principal as provided
for in Section 3 below. The interest shall, however, be accrued at the end of
each calendar quarter.

 

3 Repayment

 

  3.1 The Principal shall be repayable by Borrower to Lender as follows (such
repayments hereinafter “Repayments”):

 

  3.1.1 USD 1,000,000 on 31 March 2006;

 

  3.1.2 USD 1,000,000 on 31 December 2006;

 

  3.1.3 USD 1,000,000 on 30 June 2007; and

 

  3.1.4 USD 1,000,000 on 31 December 2007.

 

  3.1.5 All remaining outstanding amounts, including all accrued interest, on 30
June 2008.

 

  3.2 The Repayments shall be made by wire transfer into the account of Lender
listed below and shall be credited to the account on the due dates reflected in
the repayment schedule. The Lender’s account details are:

 

JPMORGAN CHASE BANK 4 Chase Metro Tech Center, 7th Floor Brooklyn, NY 11245 USA
SWIFT ID (CHASUS33) ABA number 021-000-021 For account of Investcorp Bank
B.S.C., account no.544-7-07207 SWIFT ID (INVCBHBM) for further credit to:
Investcorp Technology Ventures L.P.

 

  3.3 Borrower is entitled to repay the entire outstanding amount of the
Principal (including all outstanding interest) at any time.

 

4 Termination

 

  4.1 The Lender may terminate this loan in writing in case of an Event of
Default as defined in Section 5 below at any time.

 

  4.2 The Lender may terminate this loan in writing with a four-week notice
period:

 

  4.2.1 at any time after 1 July 2007, or

 

  4.2.2 in case of a merger, acquisition, sale of voting control, sale of
substantially all of the assets of the Parent in which the persons who at the
date of this agreement are shareholders of the Borrower (the “Shareholders”) own
less than 15% of the outstanding shares of the surviving entity, or in case of a
sale or exclusive license of all or substantially all of the Borrower’s or the
Parent’s intellectual property rights given that the Lender has not expressed
his prior consent to such transactions, or

 

  4.2.3 in case the Parent undertake a primary issuance of stock with the net
proceeds in excess of $15.0 million, or

 

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  4.2.4 in case the Parent or any of its subsidiaries sell any assets with a
total cash proceed in excess of $4.0 million, or

 

  4.2.5 in case the Parent and its consolidated subsidiaries incur or guarantee
additional indebtedness not outstanding on the date of this loan agreement in
excess of $4.0 million, or

 

  4.2.6 in the case the Parent and its subsidiaries record a month end cash and
cash equivalent balance in excess of $15 million.

 

  4.3 Upon a termination, the entire outstanding amount of the Principal
(including interest) shall be due and payable by Borrower to Lender immediately
without any further notice being required.

 

  4.4 Borrower shall, promptly and in any event within three business days of
becoming aware of such event, give Lender written notice of any event that
constitutes, or with the giving of notice or passage of time could constitute, a
termination event or Event of Default hereunder.

 

  4.5 The Parent hereby guarantees vis-à-vis the Lender payment of any amount
payable by Borrower to the Lender hereunder.

 

5 Event of Default

 

For purposes of the this agreement, the following shall constitute an event of
default (hereinafter “Event of Default”):

 

  • if Borrower does not make the Repayments as provided for in Sections 3.1,
3.2 or 4.3 above, or

 

  • if Borrower does not pay the interest on the Principal as provided for in
Section 2.2 above, or

 

  • in case of a merger, acquisition, sale of voting control, sale of new
shares, sale of substantially all of the assets of the Parent in which the
Shareholders have voted against such transaction, or

 

  • in case the Borrower or its Parent (or a creditor on behalf of Borrower or
its Parent) is insolvent or files for bankruptcy, insolvency, composition or
similar proceedings or any such proceeding is initiated or the application for
bankruptcy/insolvency proceedings against the Borrower is rejected due to lack
of assets, or

 

  • in case Borrower or its Parent is in default under its existing bank
arrangements and the banks either commence legal proceedings to enforce their
claims against Borrower, or its Parent, or the banks start to realize and/or
enforce the security granted by or on behalf of the Borrower or its Parent under
the existing bank arrangements.

 

6 No set-off or withholding.

 

Any rights of set-off or withholding (Aufrechnungs- oder Zurückbehaltungsrechte)
of the Borrower in relation to claims of the Lender under this Loan Agreement
shall be excluded.

 

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7 Miscellaneous

 

  7.1 Borrower shall reimburse Lender for reasonable legal fees, due diligence
costs and out of pocket expenses incurred in accordance with customary practice
in connection with the conclusion of this Agreement.

 

  7.2 This Agreement shall be governed by German law.

 

  7.3 Changes and amendments to this Agreement shall be valid only if made in
writing. This shall also apply to this Section 7.3.

 

  7.4 The courts of Frankfurt am Main shall have exclusive jurisdiction for all
disputes out of or in connection with this Agreement.

 

  7.5 Neither this Agreement nor any rights and obligations hereunder may be
assigned without the prior written approval of the Lender.

 

  7.6 This agreement is subject to the condition precedent that Closing has
occurred.

 

  7.7 For the avoidance of doubt the parties confirm that there shall be no
gross-up in case any withholding taxes are applicable to the payments provided
for herein.

 

Munich/Parsippany, October 5, 2004

 

/S/    EBRAHIM H. EBRAHIM

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/S/    CYRILLE DAMANY

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INVESTCORP TECHNOLOGY VENTURES, L.P.

  Willtek Communications GmbH

by ITV Limited, as General Partner of Investcorp

Technology Fund Limited Partnership, its General Partner

   

/S/    KARABET SIMONYAN

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Wireless Telecom Group Inc.

   

 

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