Document:

exv10w50

 

Exhibit 10.50

AMENDMENT NO. 4 TO

FOURTH AMENDED AND RESTATED LOAN AGREEMENT

     AGREEMENT, made as of the 5th day of May, 2004, by and among:

     NATIONAL CONSUMER COOPERATIVE BANK, a corporation chartered by Act of
Congress of the United States which conducts business under the trade name
National Cooperative Bank (the “Borrower”);

     The Banks which have executed this Agreement (individually, a “Bank” and,
collectively, the “Banks”);

     FLEET NATIONAL BANK, as Administrative Agent for the Banks (in such
capacity, together with its successors in such capacity, the “Agent”); and

     SUNTRUST BANK, as Syndication Agent, WACHOVIA BANK, NATIONAL ASSOCIATION,
as Documentation Agent and BANC OF AMERICA SECURITIES, as Lead Arranger.

W I T N E S S E T H:

     WHEREAS:

     (A) The Borrower, the Agent and the banks signatory thereto (the “Existing
Banks”) entered into a certain Fourth Amended and Restated Loan Agreement dated
as of February 12, 2002, which was amended pursuant to (i) Amendment No. 1 to
Fourth Amended and Restated Loan Agreement dated as of February 10, 2003, (ii)
Amendment No. 2 to Fourth Amended and Restated Loan Agreement dated as of May
9, 2003 (“Amendment No. 2”), and (iii) Amendment No. 3 to Fourth Amended and
Restated Loan Agreement dated as of December 5, 2003 (as so amended, the
“Original Loan Agreement”; the Original Loan Agreement, as amended hereby, and
as it may hereafter be further amended, modified or supplemented, is
hereinafter referred as the “Loan Agreement”);

     (B) The Borrower wishes to amend the Original Loan Agreement to extend the
B Commitment Termination Date to May 7, 2008, and the Banks and the Agent are
willing to amend and supplement the Original Loan Agreement on the terms and
conditions hereinafter set forth;

     (C) Certain of the Banks desire to increase or decrease, as the case may
be, its respective B Commitment to the amount set forth opposite its name on
its signature page hereto and the Borrower desires to accept such changes in
the B Commitments; and

     (D) All capitalized terms used herein which are not otherwise defined
herein shall have the respective meanings ascribed thereto in the Original Loan
Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

 

 

     Article 1. Change in Commitments.

     Section 1.1 B Commitment. From and after the date hereof, for
purposes of the Loan Agreement, the B Commitment of each Bank shall be the
amount set forth opposite each Bank’s name on the signature pages hereto as the
same may be reduced pursuant to the terms of the Loan Agreement, and, with
respect to each Bank, such amount shall supersede and be deemed to amend the
amount of its B Commitment as set forth opposite its name on the signature
pages to Amendment No. 2.

     Section 1.2 Total Commitment. From and after the date hereof, for
purposes of the Loan Agreement, the Total Commitment of each Bank shall be the
sum of the A Commitment of each Bank set forth opposite its name on the
signature pages to Amendment No. 2 plus the amount of the B Commitment as set
forth opposite each Bank’s name on the signature pages hereto as the same may
be reduced pursuant to the terms of the Loan Agreement.

     Section 1.3 Adjustment of Outstanding B Loans. If any B Loans are
outstanding under the Original Loan Agreement on the date hereof, the Banks
shall on the date hereof, at the direction of the Agent, make appropriate
adjustments among themselves in order to insure that the amount (and type) of
the B Loans outstanding to the Borrower from each Bank under the Loan Agreement
(as of the date hereof) are proportionate to the amount of all of the B
Commitments, after giving effect to the reallocation of the B Commitments. The
Borrower agrees and consents to the terms of this Section 1.3.

     Article 2. Amendments to Original Loan Agreement, B Notes, Swing Line Note.

       Section 2.1 The Original Loan Agreement is hereby amended as follows:

          (a) The phrase “the amount set forth opposite such Bank’s name on the
signature pages hereto” appearing in the definition of the terms “A Commitment”
and “B Commitment” in Article 1 of the Original Loan Agreement shall be deemed
to refer to the amounts set forth opposite each Bank’s name on the signature
pages hereto.

          (b) The definition of “Applicable Margin” appearing in Article 1 is
amended by deleting the chart appearing therein and substituting therefor the
following chart:

	 	 	 	 	 
	“Category 1
	 	Percentage

	A3 or higher by Moody’s;
	 	 	.575	%
	A- or higher by S&P
	 	 	 	 

	 	 	 	 	 
	Category 2
	 	 	 	 
	Baa1 by Moody’s;
	 	 	.675	%
	BBB+ by S&P
	 	 	 	 

2

 

	 	 	 	 	 
	Category 3
	 	Percentage

	Baa2 by Moody’s
	 	 	.750	%
	BBB by S&P
	 	 	 	 

	 	 	 	 	 
	Category 4
	 	 	 	 
	Baa3 by Moody’s
	 	 	.950	%
	BBB- by S&P
	 	 	 	 

	 	 	 	 	 
	Category 5
	 	 	 	 
	Lower than Baa3 by Moody’s
	 	 	1.15	%
	Lower than BBB- by S&P
	 	 	 	 
	- or -
	 	 	 	 
	No Rating by S&P or Moody’s”
	 	 	 	 

          (c) The definition of “B Commitment Termination Date” appearing in Article
1 is amended by deleting the date “May 7, 2004” and substituting therefor the
date “May 7, 2008”.

          (d) The definition of “Facility Fee Percentage” appearing in Article 1 is
amended by deleting the chart appearing therein and substituting therefor the
following chart:

	 	 	 	 	 
	“Category 1
	 	Percentage

	A3 or higher by Moody’s;
	 	 	.175	%
	A- or higher by S&P
	 	 	 	 

	 	 	 	 	 
	Category 2
	 	 	 	 
	Baa1 by Moody’s;
	 	 	.200	%
	BBB+ by S&P
	 	 	 	 

	 	 	 	 	 
	Category 3
	 	 	 	 
	Baa2 by Moody’s
	 	 	.250	%
	BBB by S&P
	 	 	 	 

	 	 	 	 	 
	Category 4
	 	 	 	 
	Baa3 by Moody’s
	 	 	.300	%
	BBB- by S&P
	 	 	 	 

3

 

	 	 	 	 	 
	Category 5
	 	Percentage

	Lower than Baa3 by Moody’s
	 	 	.350	%
	Lower than BBB- by S&P
	 	 	 	 
	- or -
	 	 	 	 
	No Rating by S&P or Moody’s”
	 	 	 	 

                  (e) Section 2.4 is deleted in its entirety and there is substituted
therefor the following:

                           “Section 2.4 Fees.

                    (a) The Borrower shall pay to the Agent for the account of
each Bank a facility fee (the “Facility Fee”) on the amount of
each Bank’s A Commitment and B Commitment, as the case may be, for
the period from the date hereof (or, as applicable, from the
effective date specified in the Assignment and Acceptance pursuant
to which it became a Bank hereunder) to and including the earlier
of the date such Bank’s A Commitment or B Commitment, as
applicable, is terminated or the B Commitment Termination Date, at
the rate per annum equal to the Facility Fee Percentage from time
to time in effect. The accrued Facility Fee shall be payable on
the Quarterly Dates, and on the earlier of the date (i) the A
Commitments and/or the B Commitments, as applicable, are
terminated, or (ii) the B Commitment Termination Date.

                    (b) The Borrower agrees to pay to the Agent for the account
of each Bank, a utilization fee as follows: (i) for any day on
which the outstanding principal amount of all Loans shall be equal
to or greater than 33% of the Total Commitment but less than 66%
of the Total Commitment, the Borrower shall pay to the Agent for
the account of each Bank a utilization fee equal to .125% per
annum on the aggregate amount of each Bank’s outstanding Loans on
such day, and (ii) for any day on which the outstanding principal
amount of all Loans shall be equal to or greater than 66% of the
Total Commitment, the Borrower shall pay to the Agent for the
account of each Bank a utilization fee equal to 0.25% per annum on
the aggregate amount of each Bank’s outstanding Loans on such day.
Accrued utilization fees, if any, shall be payable in arrears on
the Quarterly Dates, on any date prior to the B Commitment
Termination Date on which a Bank’s Commitment terminates, and on
the B Commitment Termination Date; provided, that any
utilization fees accruing after the B Commitment Termination Date
shall be payable on demand.”

                  (f) Section 2.13 is deleted in its entirety and there is substituted
therefor the following:

                    “(a) The A Loans made by each Bank shall be evidenced by a
single promissory note of the Borrower (each, a “First Substituted
A Note” and, collectively, the “First Substituted A Notes”) in
substantially the form of Exhibit A-1 annexed to Amendment No. 2
to Fourth Amended and Restated Loan Agreement dated as of May 9,
2003 by and among the Borrower, the banks

4

 

signatory thereto and the Agent (“Amendment No. 2”). Each
First Substituted A Note shall be dated the date of Amendment No.
2, shall be payable to the order of such Bank in a principal
amount equal to such Bank’s A Commitment as in effect on the date
of Amendment No. 2 and shall otherwise be duly completed. All A
Loans made by each Bank hereunder and all payments and prepayments
made on account of the principal thereof, and all conversions of
such A Loans shall be recorded by such Bank on the schedule
attached to the relevant First Substituted A Note (provided that
any failure by such Bank to make any such endorsement shall not
affect the obligations of the Borrower hereunder or under such
First Substituted A Note in respect of such A Loans).

                    (b) The B Loans made by each Bank shall be evidenced by a
single promissory note of the Borrower (each, a “Second
Substituted B Note” and, collectively, the “Second Substituted B
Notes”) in substantially the form of Exhibit A-2 annexed to
Amendment No. 4 to Fourth Amended and Restated Loan Agreement
dated as of May 5, 2004 by and among the Borrower, the banks
signatory thereto and the Agent (“Amendment No. 4”). Each Second
Substituted B Note shall be dated the date of Amendment No. 4,
shall be payable to the order of such Bank in a principal amount
equal to such Bank’s B Commitment as in effect on the date of
Amendment No. 4 and shall otherwise be duly completed. All B Loans
made by each Bank hereunder and all payments and prepayments made
on account of the principal thereof, and all conversions of such B
Loans shall be recorded by such Bank on the schedule attached to
the relevant Second Substituted B Note (provided that any failure
by such Bank to make any such endorsement shall not affect the
obligations of the Borrower hereunder or under such Second
Substituted B Note in respect of such B Loans).

                    (c) The Swing Line Loans made by the Swing Line Lender shall
be evidenced by a single promissory note of the Borrower (the
“Second Substituted Swing Line Note”) substantially in the form of
Exhibit A-3 annexed to Amendment No. 4. The Second Substituted
Swing Line Note shall be dated the date of Amendment No. 4, shall
be payable to the order of the Swing Line Lender in a principal
amount equal to the Swing Line Loan Commitment and shall be
otherwise duly completed. All Swing Line Loans made by the Swing
Line Lender hereunder and all payments and prepayments on account
of the principal thereof shall be recorded by the Swing Line
Lender on the schedule attached to the Second Substituted Swing
Line Note (provided, that any failure by the Swing Line
Lender to make such endorsement shall not affect the obligations
of the Borrower hereunder or under the Second Substituted Swing
Line Note).”

     Section 2.2 In order to evidence the B Loans and the Swing Line Loan, as
amended hereby, the Borrower shall execute and deliver to each Bank, as the
case may be, simultaneously with the execution and delivery hereof, promissory
notes payable to the order of such Bank in substantially the form of Exhibits
A-2 and A-3 (in the case of the Swing Line Lender) annexed hereto (hereinafter
referred to individually as a “Second Substituted Note” and collectively as the
“Second Substituted Notes”). Each of the Banks shall, upon the execution and
delivery by the Borrower of its Second Substituted Note(s) as herein provided,
mark the First Substituted B

5

 

Note or First Substituted Swing Line Note, as the case may be, delivered
to it in connection with the Original Loan Agreement “Replaced by Second
Substituted Note” and return them to the Borrower.

     Section 2.3 (a) All references in the Original Loan Agreement or any other
Loan Document to the “Loan(s)”, the “B Note(s)”, the “Swing Line Note”, the
“Note(s)” and the “Loan Documents” shall be deemed to refer respectively, to
the Loan(s) as amended hereby, the Second Substituted B Note(s), the Second
Substituted Swing Line Note, the Second Substituted Note(s) together with the
First Substituted A Note(s) and the Loan Documents as defined in the Original
Loan Agreement together with, and as amended by, this Amendment No. 4, the
Second Substituted Notes and all agreements, documents and instruments
delivered pursuant thereto or in connection therewith.

                       (b) All references in the Original Loan Agreement and the other Loan
Documents to the “Loan Agreement”, and also in the case of the Original Loan
Agreement to “this Agreement”, shall be deemed to refer to the Original Loan
Agreement, as amended hereby.

     Section 2.4 The Original Loan Agreement and the other Loan Documents shall
each be deemed amended and supplemented hereby to the extent necessary, if any,
to give effect to the provisions of this Agreement.

     Article 3. Representations and Warranties.

     The Borrower hereby confirms, reaffirms and restates to each of the Banks
and the Agent all of the representations and warranties set forth in Article 3
of the Original Loan Agreement as if such representations and warranties were
made as of the date hereof, except for changes in the ordinary course of
business which, either singly or in the aggregate, are not materially adverse
to the business or financial condition of the Borrower.

     Article 4. Conditions to Effectiveness of this Agreement.

          This Amendment No. 4 to Fourth Amended and Restated Loan Agreement shall
become effective on the date of the fulfillment (to the satisfaction of the
Agent) of the following conditions precedent:

          (a) This Amendment No. 4 shall have been executed and delivered to the
Agent by a duly authorized representative of the Borrower, the Agent and each
Bank.

          (b) The Borrower shall have executed and delivered to each Bank its Second
Substituted B Note and with respect to the Swing Line Lender, the Second
Substituted Swing Line Note.

          (c) The Agent shall have received a Compliance Certificate from the
Borrower dated the date hereof and the matters certified therein, including,
without limitation, that after giving effect to the terms and conditions of
this Amendment No. 4, no Default or Event of Default shall exist, shall be
true.

6

 

          (d) Shea & Gardner, counsel to the Borrower, shall have delivered its
legal opinion to the Agent, in form and substance satisfactory to the Agent and
its counsel.

          (e) The Agent shall have received copies of the following:

                    (i) Copies of all corporate action taken by the Borrower to authorize the
execution, delivery and performance of this Amendment No. 4, the Second
Substituted Notes and the transactions contemplated hereby, certified by its
secretary;

                    (ii) A certificate from the secretary of the Borrower to the effect that
the By-laws of the Borrower delivered to the Agent pursuant to the Original
Loan Agreement have not been amended since the date of such delivery and that
such document is in full force and effect and is true and correct as of the
date hereof; and

                    (iii) An incumbency certificate (with specimen signatures) with respect to
the Borrower.

          (f) All legal matters incident hereto shall be satisfactory to the Agent
and its counsel.

     Article 5. Miscellaneous.

     Section 5.1 Article 10 of the Original Loan Agreement. The
miscellaneous provisions under Article 10 of the Original Loan Agreement,
together with the definition of all terms used therein, and all other sections
of the Original Loan Agreement to which Article 10 refers are hereby
incorporated by reference as if the provisions thereof were set forth in full
herein, except that (i) the terms “Loan Agreement”, “Note(s)” and “Loan”, shall
be deemed to refer, respectively, to the Original Loan Agreement, as amended
hereby, the Second Substituted Note(s) together with the First Substituted A
Notes and the Loans, as amended hereby; (ii) the term “this Agreement” shall be
deemed to refer to this Agreement; and (iii) the terms “hereunder” and “hereto”
shall be deemed to refer to this Agreement.

     Section 5.2 Continued Effectiveness. Except as amended hereby, the
Original Loan Agreement and the other Loan Documents are hereby ratified and
confirmed in all respects and shall remain in full force and effect in
accordance with their respective terms.

     Section 5.3 Counterparts. This Agreement may be executed by the
parties hereto in one or more counterparts, each of which shall be an original
and all of which shall constitute one and the same agreement.

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the date first above written.

	 	 	 	 	 	 	 
	   	 	NATIONAL CONSUMER COOPERATIVE BANK,
	 	 	D/B/A NATIONAL COOPERATIVE BANK
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:
	 	Richard L. Reed
	

	 	 	 	Title:
	 	Managing Director, Chief Financial
	

	 	 	 	 	 	Officer and Treasurer

8

 

	 	 	 	 	 
	A Commitment	 	FLEET NATIONAL BANK,
	 	 	  as Administrative Agent and as a Bank,
	$22,500,000	 	  and as Swing Line Lender
	 
	 	 	 	 
	B Commitment

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name: Robert T.P. Storer
	$22,500,000

	 	 	 	Title: Managing Director

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	CREDIT SUISSE FIRST BOSTON	 	 
	 	 	 Cayman Islands Branch	 	 
	$12,500,000
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	 	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	$12,500,000

	 	 	 	 	 	

	 

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	COOPERATIEVE CENTRALE	 	 
	 	 	RAIFFEISEN-BOERENLEENBANK B.A.,	 	 
	$12,500,000	 	“Rabobank International”, New York Branch	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	B Commitment
	 	By:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	

	$12,500,000

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$17,500,000
	 	By:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	

	 	 	 	 	Name:	 	 	 	 	 	 	 	 
	$20,000,000

	 	 	 	 	 	

	 

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No.4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	WACHOVIA BANK, NATIONAL ASSOCIATION,	 	 
	 	 	    as Documentation Agent and as a Bank	 	 
	$20,000,000
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	 	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	$20,000,000

	 	 	 	 	 	

	 

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	M&T BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$12,500,000

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	Title:	 	 	 	 	 	 	 	 
	$17,500,000
	 	 	 	 	 	 	 	 	 	 	 	 

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	UNION BANK OF CALIFORNIA, N.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$10,000,000

	 	By	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	B Commitment

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	$15,000,000
	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	SUNTRUST BANK, as Syndication Agent	 	 
	 	 	 and as a Bank	 	 
	$20,000,000

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	

	 	 	 	 	Name:	 	 	 	 	 	 	 	 
	$22,500,000
	 	 	 	 	 	

	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	ISRAEL DISCOUNT BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$5,000,000

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	B Commitment

	 	 	 	Name:	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	$2,500,000
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 	 	 	 	 

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	CREDIT LYONNAIS NEW YORK BRANCH	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$17,500,000
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	B Commitment

	 	 	 	

	 	 	 	 	Name:	 	 	 	 	 	 	 	 
	$20,000,000
	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	A Commitment	 	KBC BANK N.V.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$10,000,000
		By:	 	 	 	 	 	 	 	 	 	 
	

	 	 	

	B Commitment

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	$10,000,000
	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	

	 	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

Signature Page to Amendment No. 4 to Fourth Amended and Restated Loan Agreement among

National Consumer Cooperative Bank, the Banks party thereto

and Fleet National Bank, as Administrative Agent

 

 

EXHIBITS

A-2   Form of Second Substituted B Note

A-3   Form of Second Substituted Swing Line Note

 

 

EXHIBIT A-2 TO AMENDMENT NO. 4

TO FOURTH AMENDED AND RESTATED LOAN AGREEMENT

BY AND AMONG

NATIONAL CONSUMER COOPERATIVE BANK

AND

CERTAIN BANKS NAMED THEREIN

AND

FLEET NATIONAL BANK, AS ADMINISTRATIVE AGENT FOR THE
BANKS

FORM OF SECOND SUBSTITUTED B NOTE

	 	 	 
	[B Commitment Amount]

	 	Due May 7, 2008

     FOR VALUE RECEIVED, NATIONAL CONSUMER COOPERATIVE BANK D/B/A NATIONAL
COOPERATIVE BANK (the “Borrower”), hereby promises to pay to the order of
[___] (the “Bank”) by payment to the Agent for the account of the
Bank the principal sum of [amount of B Commitment] ($____) Dollars (or
such lesser amount as shall equal the aggregate unpaid principal amount of the
B Loans made by the Bank under the Loan Agreement hereinafter defined, shown on
the schedule annexed hereto and any continuation thereof), in lawful money of
the United States of America and in immediately available funds on the date or
dates determined as provided in the Loan Agreement but in no event later than
May 7, 2008.

     The Borrower further promises to pay to the order of the Bank by payment
to the Agent for the account of the Bank interest on the unpaid principal
amount of each Loan from the date such Loan is made until paid in full, payable
at such rates and at such times as provided for in the Loan Agreement.

     The Bank has been authorized by the Borrower to record on the schedules
annexed to this B Note (or on any continuation thereof) the amount, type, due
date and interest rate of each B Loan made by the Bank under the Loan Agreement
and the amount of each payment or prepayment of principal and the amount of
each payment of interest of each such B Loan received by the Bank, it being
understood, however, that failure to make any such notation shall not affect
the rights of the Bank or the obligations of the Borrower hereunder or under
the Loan Agreement in respect of such Loans. Such notations shall be deemed
correct, absent manifest error.

     This B Note is one of the Notes referred to in the Fourth Amended and
Restated Loan Agreement dated as of February 12, 2002, as amended by (i)
Amendment No. 1 to Fourth Amended and Restated Loan Agreement dated as of
February 10, 2003, (ii) Amendment No. 2 to Fourth Amended and Restated Loan
Agreement dated as of May 9, 2003, (iii) Amendment No. 3 to Fourth Amended and
Restated Loan Agreement dated as of December 5, 2003, and (iv) Amendment No. 4
to Fourth Amended and Restated Loan Agreement dated as of May 5, 2004 (as so
amended, the “Loan Agreement”) among the Borrower, the Banks and Fleet National
Bank, as Administrative Agent for the Banks and evidences the B Loans made by
the Bank thereunder. This Second Substituted B Note supersedes and is given in
substitution for the First Substituted B Note dated May 9, 2003 made by the
Borrower to the order of the Bank in the original principal amount of
$   but does not constitute a novation, extinguishment or termination
of the obligations evidenced thereby.

 

 

     Capitalized terms used in this B Note have the respective meanings
assigned to them in the Loan Agreement.

     Upon the occurrence of an Event of Default under the Loan Agreement, the
principal hereof and accrued interest hereon shall become, or may be declared
to be, forthwith due and payable in the manner, upon the conditions and with
the effect provided in the Loan Agreement.

     The Borrower may at its option prepay all or any part of the principal of
this B Note before maturity upon and subject to the terms provided in the Loan
Agreement.

     The Borrower agrees to pay costs of collection and reasonable attorneys’
fees in case default occurs in the payment of this B Note.

     Presentment for payment, notice of dishonor, protest and notice of protest
are hereby waived.

     This B Note has been executed and delivered this 5th day of May, 2004 in
New York, New York, and shall be construed in accordance with and governed by
the internal laws of the State of New York.

	 	 	 	 	 	 	 
	   	 	NATIONAL CONSUMER COOPERATIVE BANK
	 	 	D/B/A NATIONAL COOPERATIVE BANK
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Title:	 	 

2

 

SCHEDULE TO SECOND SUBSTITUTED B NOTE

MADE BY NATIONAL CONSUMER COOPERATIVE BANK

IN FAVOR OF _____________________

     This Note evidences the Loans made under the within described Agreement,
in the principal amounts, of the types (Prime Rate Loans or LIBOR Loans) and on
the dates set forth below, subject to the payments or prepayments set forth
below:

	 	 	 	 	 	 	 
	 	 	Principal	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount	 	 	Due Date	 	 	Interest Rate	 	 	Amount of	 	 	Balance	 	 	Notation
	Date Made
	 	of Loan
	 	 	of Loan
	 	 	on Loan
	 	 	Payment
	 	 	Outstanding
	 	 	Made By

 

 

EXHIBIT A-3 TO AMENDMENT NO. 4

TO FOURTH AMENDED AND RESTATED LOAN AGREEMENT

BY AND AMONG

NATIONAL CONSUMER COOPERATIVE BANK

CERTAIN BANKS NAMED THEREIN

AND

FLEET NATIONAL BANK, AS ADMINISTRATIVE AGENT FOR THE
BANKS

FORM OF SECOND SUBSTITUTED SWING LINE NOTE

	 	 	 
	$20,000,000

	 	Due May 7, 2008

     FOR VALUE RECEIVED, NATIONAL CONSUMER COOPERATIVE BANK D/B/A NATIONAL
COOPERATIVE BANK (the “Borrower”), hereby promises to pay to the order of FLEET
NATIONAL BANK (the “Bank”) by payment to the Bank the principal sum of TWENTY
MILLION DOLLARS ($20,000,000) (or such lesser amount as shall equal the
aggregate unpaid principal amount of the Swing Line Loans made by the Bank
under the Loan Agreement hereinafter defined, shown on the schedule annexed
hereto and any continuation thereof), in lawful money of the United States of
America and in immediately available funds on the date or dates determined as
provided in the Loan Agreement but in no event later than May 7, 2008.

     The Borrower further promises to pay to the order of the Bank by payment
to the Bank interest on the unpaid principal amount of each Swing Line Loan
from the date such Swing Line Loan is made until paid in full, payable at such
rates and at such times as provided for in the Loan Agreement.

     The Bank has been authorized by the Borrower to record on the schedules
annexed to this Swing Line Note (or on any continuation thereof) the amount,
due date and interest rate of each Swing Line Loan made by the Bank under the
Loan Agreement and the amount of each payment of principal and the amount of
each payment of interest of each such Swing Line Loan received by the Bank, it
being understood, however, that failure to make any such notation shall not
affect the rights of the Bank or the obligations of the Borrower hereunder or
under the Loan Agreement in respect of such Swing Line Loans. Such notations
shall be deemed correct, absent manifest error.

     This Swing Line Note is the Swing Line Note referred to in the Fourth
Amended and Restated Loan Agreement dated as of February 12, 2002, as amended
by (i) Amendment No. 1 to Fourth Amended and Restated Loan Agreement dated as
of February 10, 2003, (ii) Amendment No. 2 to Fourth Amended and Restated Loan
Agreement dated as of May 9, 2003, (iii) Amendment No. 3 to Fourth Amended and
Restated Loan Agreement dated as of December 5, 2003, and (iv) Amendment No. 4
to Fourth Amended and Restated Loan Agreement dated as of May 5, 2004 (as so
amended, the “Loan Agreement”) among the Borrower, the Banks and Fleet National
Bank, as Administrative Agent for the Banks and evidences the Swing Line Loans
made by the Bank thereunder.

 

 

     Capitalized terms used in this Swing Line Note have the respective
meanings assigned to them in the Loan Agreement.

     Upon the occurrence of an Event of Default, under the Loan Agreement, the
principal hereof and accrued interest hereon shall become, or may be declared
to be, forthwith due and payable in the manner, upon the conditions and with
the effect provided in the Loan Agreement.

     The Borrower agrees to pay costs of collection and reasonable attorneys’
fees in case default occurs in the payment of this Swing Line Note.

     Presentment for payment, notice of dishonor, protest and notice of protest
are hereby waived.

     This Swing Line Note has been executed and delivered this 5th day of May,
2004 in New York, New York, and shall be construed in accordance with and
governed by the internal laws of the State of New York.

	 	 	 	 	 	 	 
	   	 	NATIONAL CONSUMER COOPERATIVE BANK
	 	 	D/B/A NATIONAL COOPERATIVE BANK
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Title:	 	 

2

 

SCHEDULE TO SECOND SUBSTITUTED SWING LINE NOTE

MADE BY NATIONAL CONSUMER COOPERATIVE BANK

IN FAVOR OF FLEET NATIONAL BANK

     This Swing Line Note evidences the Swing Line Loans made under the within
described Agreement, in the principal amounts, and on the dates set forth
below, subject to the payments set forth below:

	 	 	 	 	 	 	 
	 	 	Principal	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount	 	 	Due Date	 	 	Interest Rate	 	 	Amount of	 	 	Balance	 	 	Notation
	Date Made
	 	of Loan
	 	 	of Loan
	 	 	on Loan
	 	 	Payment
	 	 	Outstanding
	 	 	Made Byexv10w15

 

EXHIBIT 10.15

EXECUTIVE EMPLOYMENT AGREEMENT

     This Executive Employment Agreement (this “Agreement”) is made as of the
15th day of April, 2004 by and among Mobilepro Corp., a Delaware corporation
(the “Company”), and Jay O. Wright (“Executive”).

     WHEREAS, the Company wishes to employ Executive as its President and Chief
Executive Officer and Executive wishes to accept such employment;

     WHEREAS, the Company and Executive wish to set forth the terms of
Executive’s employment and certain additional agreements between Executive and
the Company.

     NOW, THEREFORE, in consideration of the foregoing recitals and the
representations, covenants and terms contained herein, the parties hereto agree
as follows:

     1. Employment Period

          The Company will employ Executive, and Executive will serve the Company,
under the terms of this Agreement commencing April 15, 2004 (the “Commencement
Date”) for a term of twenty-four (24) months unless earlier terminated under
Section 4 hereof. On the second anniversary of the Commencement Date and on
each anniversary date thereafter, the term of this Agreement shall
automatically be extended for an additional period of twelve (12) months;
provided, however, that either party hereto may elect not to so extend this
Agreement by giving written notice to the other party at least sixty (60) days
prior to such anniversary date. The period of time between the commencement
and the termination of Executive’s employment hereunder shall be referred to
herein as the “Employment Period.”

     2. Duties and Status

          The Company hereby engages Executive as its President and Chief Executive
Officer on the terms and conditions set forth in this Agreement. During the
Employment Period, Executive shall report directly to the Board of Directors of
the Company (the “Board”) and shall exercise such authority, perform such
executive functions and discharge such responsibilities as are reasonably
associated with Executive’s position, commensurate with the authority vested in
Executive pursuant to this Agreement and consistent with the governing
documents of the Company. These duties include, but are not limited to: (i)
seeking and closing acquisition for the Company to increase the Company’s
revenue and earnings per share; (ii) structuring and obtaining capital from
varied sources to facilitate the growth of the Company; (iii) building the
Company’s presence on “Wall Street” and serving as the Company’s “face” to the
capital markets; (iv) identifying and recruiting additional personnel to build
the Company; (v) working to shape and determine the strategic direction of the
Company;

 

and (vi) handling such other leadership, administrative and managerial roles as is customary
and appropriate for a company’s President and Chief Executive Officer.

     3. Compensation and Benefits

	 	(a)	 	Salary. During the Employment Period, the
Company shall pay to Executive, as compensation for the
performance of his duties and obligations under this
Agreement, a base salary of One Hundred Eighty Thousand
Dollars ($180,000) per year. The base salary may be
increased, but not decreased, at the discretion of the Board.
After the initial two years of the Employment Period,
Executive shall be entitled to receive a minimum of a 5% per
annum increase in this base salary.
	 
	 	(b)	 	Bonus. During the Employment Period, Executive
shall be entitled to a cash bonus equal to one percent (1%)
of the revenues for the most recent twelve (12) month period
of each acquisition made by the Company during the Employment
Period. An acquisition shall be deemed “made” if a
definitive agreement is executed during the Employment Period
and the transaction closes within six (6) months after the
definitive agreement is executed. This provision shall not
preclude payment of any bonuses due to Executive for
acquisitions “made” prior to the Employment Period which
close during the Employment Period.
	 
	 	(c)	 	Equity. As partial consideration for entering
into this Agreement, the Company hereby grants Executive a
warrant to acquire seven million two hundred thousand
(7,200,000) shares of the Company’s common stock at an
exercise price or $0.018 per share (the “Warrant Shares”) to
vest as follows: (1) three hundred thousand (300,000) Warrant
Shares shall vest each month during the term of this
Agreement or immediately if Executive’s employment is
terminated without cause or for good reason (as described in
Section 4 hereof) or due to a change in control, sale of a
majority of the common stock or substantially all of the
assets of the Company or merger of the Company into or with
another company (unless such company is less than fifty
percent (50%) of the size (measured by market value) of the
Company) or reverse merger with another company; and (ii)
four million three hundred thousand (4,300,000) Warrant
Shares will vest immediately upon the Company achieving a $25
million market cap for ten (10) consecutive trading days and
a price per share of not less than $0.07. The Warrant Shares
granted hereunder must be exercised by the tenth anniversary
of the date of vesting or shall be forfeited by Executive.
All Warrant Shares granted hereunder shall have a “cashless”
exercise provision which enables Executive to give up a
portion of his Warrant Shares in order to exercise others
without paying cash for them. Further, the number, kind and
strike price of

-2-

 

	 	 	 	the stock Warrant Shares granted hereunder shall be
appropriately and equitably adjusted to reflect any stock
dividend, stock split, spin-off, split-off, extraordinary
cash dividend, recapitalization, reclassification or other
major corporate action affecting the stock of the Company
to the end that after such event Executive’s proportionate
interest in the Company shall be maintained as before the
occurrence of such event. Executive shall also receive
payment of any cash dividend or stock dividend declared and
paid by the Company as if Executive had already exercised
all of his Warrant Shares, including unvested Warrant
Shares. Additionally, the Company acknowledges that,
pursuant to its prior employment agreement with Executive,
it owes Executive three million four hundred eighty-two
thousand five hundred (3,482,500) shares of the Company’s
common stock, which shares will be registered after
issuance.
	 
	 	(d)	 	Appointment to the Board. The Company shall
appoint Executive to the Board on the Commencement Date by
filling a current vacancy on the Board. Executive shall have
the choice of immediately accepting such position or
deferring such election until such time as the Company has
directors and officers liability insurance in effect.
	 
	 	(e)	 	Other Benefits. During the Employment Period,
Executive shall be entitled to participate in all of the
employee benefit plans, programs and arrangements of the
Company in effect during the Employment Period which are
generally available to senior executives of the Company,
subject to and on a basis consistent with the terms,
conditions and overall administration of such plans, programs
and arrangements. In addition, during the Employment Period,
Executive shall be entitled to fringe benefits and
perquisites comparable to those of other senior executives of
the Company including, but not limited to, twenty (20) days
of vacation pay plus two (2) sick/personal days, to be used
in accordance with the Company’s vacation pay policy for
senior executives.
	 
	 	(f)	 	Business Expenses. During the Employment
Period, the Company shall promptly reimburse Executive for
all appropriately documented, reasonable business expenses
incurred by Executive in the performance of his duties under
this Agreement, including, but not limited to,
telecommunications expenses and travel expenses.
	 
	 	(g)	 	Office. During the Employment Period, the
Company shall provide an office at a place mutually agreeable
to Executive and the Company and, to the extent that the
Company’s budget allows, secretarial assistance to Executive
suitable to Executive’s position as the Company’s Chief
Executive Officer. Executive agrees that

-3-

 

	 	 	 	the Company’s existing offices at 6701 Democracy Boulevard,
Bethesda, Maryland 20817 are sufficient to satisfy this
covenant for the first ninety (90) days of the Employment
Period, but thereafter the Company shall rent an additional
office at such location for the sole use of Executive.

     4. Termination of Employment

	 	(a)	 	Termination for Cause. The Company may
terminate Executive’s employment hereunder for Cause (defined
below). For purposes of this Agreement and subject to
Executive’s opportunity to cure as provided in Section 4(c)
hereof, the Company shall have Cause to terminate Executive’s
employment hereunder if such termination shall be the result
of:

	 	(i)	 	a willful or grossly negligent
material breach of fiduciary duty or material breach
of the terms of this Agreement or any other agreement
between Executive and the Company (including without
limitation any agreements regarding confidentiality,
inventions assignment and non-competition), which, in
the case of a material breach of the terms of this
Agreement or any other agreement, remains uncured for
a period of thirty (30) days following receipt of
written notice from the Board specifying the nature of
such breach;
	 
	 	(ii)	 	the commission by Executive of
any act of embezzlement, fraud, larceny or theft on or
from the Company;
	 
	 	(iii)	 	substantial and continuing gross
neglect or inattention by Executive of the duties of
his employment or the willful misconduct or gross
negligence of Executive in connection with the
performance of such duties which remains uncured for a
period of thirty (30) days following receipt of
written notice from the Board specifying the nature of
such breach; and
	 
	 	(iv)	 	the commission by and indictment
of Executive of any crime involving moral turpitude or
a felony.

	 	(b)	 	Termination for Good Reason. Executive shall
have the right at any time to terminate his employment with
the Company upon not less than thirty (30) days prior written
notice of termination for Good Reason (defined below). For
purposes of this Agreement and subject to the Company’s
opportunity to cure as provided in Section 4(c) hereof,
Executive shall have Good Reason to

-4-

 

	 	 	 	terminate his employment hereunder if such termination
shall be the result of:

	 	(i)	 	The breach by the Company of any
material provision of this Agreement; or
	 
	 	(ii)	 	A requirement by the Company that
Executive perform any act or refrain from performing
any act that would be in violation of any applicable
law.

	 	(c)	 	Notice and Opportunity to Cure.
Notwithstanding the foregoing, it shall be a condition
precedent to the Company’s right to terminate Executive’s
employment for Cause and Executive’s right to terminate for
Good Reason that (i) the party seeking termination shall
first have given the other party written notice stating with
specificity the reason for the termination (“breach”) and
(ii) if such breach is susceptible of cure or remedy, a
period of fifteen (15) days from and after the giving of such
notice shall have elapsed without the breaching party having
effectively cured or remedied such breach during such 15-day
period, unless such breach cannot be cured or remedied within
fifteen (15) days, in which case the period for remedy or
cure shall be extended for a reasonable time (not to exceed
an additional thirty (30) days) provided the breaching party
has made and continues to make a diligent effort to effect
such remedy or cure.
	 
	 	(d)	 	Voluntary Termination. Executive, at his
election, may terminate his employment upon not less than
sixty (60) days prior written notice of termination other
than for Good Reason.
	 
	 	(e)	 	Termination Upon Death or Permanent and Total
Disability. The Employment Period shall be terminated by the
death of Executive. The Employment Period may be terminated
by the Board if Executive shall be rendered incapable of
performing his duties to the Company by reason of any
medically determined physical or mental impairment that can
be reasonably expected to result in death or that can be
reasonably be expected to last for a period of either (i) six
(6) or more consecutive months from the first date of
Executive’s absence due to the disability or (ii) nine (9)
months during any twelve-month period (a “Permanent and Total
Disability”). If the Employment Period is terminated by
reason of a Permanent and Total Disability of Executive, the
Company shall give thirty (30) days’ advance written notice
to that effect to Executive.
	 
	 	(f)	 	Termination Without Cause. The Company, at its
election, may terminate Executive’s employment otherwise than
for Cause, upon not less than sixty (60) days written notice
of termination.

-5-

 

	 	(g)	 	Termination for Business Failure. Anything
contained herein to the contrary notwithstanding, in the
event the Company’s business is discontinued because
continuation is rendered impracticable by substantial
financial losses, lack of funding, legal decisions,
administrative rulings, declaration of war, dissolution,
national or local economic depression or crisis or any
reasons beyond the control of the Company, then this
Agreement shall terminate as of the day the Company
determines to cease operation with the same force and effect
as if such day of the month were originally set as the
termination date hereof. In the event this Agreement is
terminated pursuant to this Section 4(g), Executive will not
be entitled to severance pay.

     5. Consequences of Termination

	 	(a)	 	Without Cause, due to a Change of Control or
for Good Reason. In the event of a termination of
Executive’s employment during the Employment Period by the
Company other than for Cause pursuant to Section 4(f) or by
Executive for Good Reason pursuant to Section 4(b) (e.g., due
to a Change of Control of the Company, where Change of
Control means: (i) the acquisition (other than from the
Company) in one or more transactions by any Person, as
defined in this Section 5(a), of the beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended) of 50% or more
of (A) the then outstanding shares of the securities of the
Company, or (B) the combined voting power of the then
outstanding securities of the Company entitled to vote
generally in the election of directors (the “Company Voting
Stock”); (ii) the closing of a sale or other conveyance of
all or substantially all of the assets of the Company; or
(iii) the effective time of any merger, share exchange,
consolidation, or other business combination of the Company
if immediately after such transaction persons who hold a
majority of the outstanding voting securities entitled to
vote generally in the election of directors of the surviving
entity (or the entity owning 100% of such surviving entity)
are not persons who, immediately prior to such transaction,
held the Company Voting Stock; provided, however, that a
Change of Control shall not include a public offering of
capital stock of the Company. For purposes of this Section
5(a), a “Person” means any individual, entity or group within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended, other than: employee
benefit plans sponsored or maintained by the Company and
corporations controlled by the Company, the Company shall pay
Executive (or his estate) and provide him with the following:

-6-

 

	 	(i)	 	Lump-Sum Payment. A lump-sum
cash payment, payable ten (10) days after Executive’s
termination of employment, equal to the sum of the
following:

	 	(A)	 	Salary. The
equivalent of nine (9) months (the “Severance
Period”) of Executive’s then-current base
salary; plus
	 
	 	(B)	 	Earned but Unpaid
Amounts. Any previously earned but unpaid
salary through Executive’s final date of
employment with the Company, and any previously
earned but unpaid bonus amounts prior to the
date of Executive’s termination of employment.
	 
	 	(C)	 	Equity. All Warrant
Shares vested at time of termination shall be
retained by Executive. All unvested Warrant
Shares shall immediately vest and be retained by
Executive. Executive shall have the benefit of
the full ten year option period to exercise such
Warrant Shares.

	 	(ii)	 	Other Benefits. The Company
shall provide continued coverage for the Severance
Period under all health, life, disability and similar
employee benefit plans and programs of the Company on
the same basis as Executive was entitled to
participate immediately prior to such termination,
provided that Executive’s continued participation is
possible under the general terms and provisions of
such plans and programs. In the event that
Executive’s participation in any such plan or program
is barred, the Company shall use its commercially
reasonable efforts to provide Executive with benefits
substantially similar (including all tax effects) to
those which Executive would otherwise have been
entitled to receive under such plans and programs from
which his continued participation is barred. In the
event that Executive is covered under substitute
benefit plans of another employer prior to the
expiration of the Severance Period, the Company will
no longer be obligated to continue the coverages
provided for in this Section 5(a)(ii).

	 	(b)	 	Other Termination of Employment. In the event
that Executive’s employment with the Company is terminated
during the Employment Period by the Company for Cause (as
provided for in Section 4(a) hereof) or by Executive other
than for Good Reason (as provided for in Section 4(b)
hereof), the Company shall pay or

-7-

 

	 	 	 	grant Executive any earned but unpaid salary, bonus, and
Warrant Shares through Executive’s final date of employment
with the Company, and the Company shall have no further
obligations to Executive.
	 
	 	(c)	 	Withholding of Taxes. All payments required to
be made by the Company to Executive under this Agreement
shall be subject only to the withholding of such amounts, if
any, relating to tax, excise tax and other payroll deductions
as may be required by law or regulation.
	 
	 	(d)	 	No Other Obligations. The benefits payable to
Executive under this Agreement are not in lieu of any
benefits payable under any employee benefit plan, program or
arrangement of the Company, except as specifically provided
herein, and Executive will receive such benefits or payments,
if any, as he may be entitled to receive pursuant to the
terms of such plans, programs and arrangements. Except for
the obligations of the Company provided by the foregoing and
this Section 5, the Company shall have no further obligations
to Executive upon his termination of employment.
	 
	 	(e)	 	No Mitigation or Offset. Executive shall have
no obligation to mitigate the damages provided by this
Section 5 by seeking substitute employment or otherwise and
there shall be no offset of the payments or benefits set
forth in this Section 5 except as provided in Section
5(a)(ii).

     6. Governing Law

          This Agreement and the rights and obligations of the parties hereto shall
be construed in accordance with the laws of the State of Maryland, without
giving effect to the principles of conflict of laws.

     7. Indemnity and Insurance

          The Company shall indemnify and save harmless Executive for any liability
incurred by reason of any act or omission performed by Executive while acting
in good faith on behalf of the Company and within the scope of the authority of
Executive pursuant to this Agreement and to the fullest extent provided under
the Bylaws, the Certificate of Incorporation and the General Corporation Law of
the State of Delaware, except that Executive must have in good faith believed
that such action was in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or proceeding, had no reasonable cause
to believe that such conduct was unlawful

-8-

 

          The Company shall provide that Executive is covered by any Directors and
Officers insurance that the Company provides to other senior executives and/or
Board members.

     8. Non-Disparagement

          At all times during the Employment Period and for a period of five (5)
years thereafter (regardless of how Executive’s employment was terminated),
Executive shall not, directly or indirectly, make (or cause to be made) to any
person any disparaging, derogatory or other negative or false statement about
the Company (including its products, services, policies, practices, operations,
employees, sales representatives, agents, officers, members, managers, partners
or directors), provided, however, that any statements that Executive makes to
his immediate family and in-laws
shall be immune from this provision.

     9. Cooperation with the Company After Termination of Employment

          Following termination of Executive’s employment for any reason, Executive
shall fully cooperate with the Company in all matters relating to the winding
up of Executive’s pending work on behalf of the Company including, but not
limited to, any litigation in which the Company is involved, and the orderly
transfer of any such pending work to other employees of the Company as may be
designated by the Company. Following any notice of termination of employment
by either the Company or Executive, the Company shall be entitled to such full
time or part time services of Executive as the Company may reasonably require
during all or any part of the sixty (60)-day period following any notice of
termination, provided that Executive shall be compensated for such services at
the same rate as in effect immediately before the notice of termination.

     10. Lock-up Period and Volume Limitation.

          Executive agrees that he will not sell or otherwise transfer or dispose of
any shares of the Company’s common stock that he owns or is entitled to receive
following the exercise of any Warrant Shares granted hereunder or other
convertible securities that he may receive following the Commencement Date
until November 15, 2004. Executive also agrees that he will not sell or
otherwise transfer or dispose of more than one million (1,000,000) shares of
the Company’s common stock during any calendar quarter thereafter during the
Employment Period.

     11. Notice

          All notices, requests and other communications pursuant to this
Agreement shall be sent by overnight mail to the following addresses:

-9-

 

	 	 	 
	

	If to Executive:
	 
	 	 
	

	 	Jay O. Wright
	

	 	[INTENTIONALLY OMITTED FROM EXHIBIT]
	

	 	
	

	 	
	

	 	
	 
	 	 
	

	If to the Company:
	 
	 	 
	

	 	Mobilepro Corp.
	

	 	Attn: Board of Directors
	

	 	6701 Democracy Blvd.
	

	 	Suite 300
	

	 	Rockville, Maryland 20817
	

	 	Phone: 301/315-9040

     12. Waiver of Breach

          Any waiver of any breach of this Agreement shall not be construed to be a
continuing waiver or consent to any subsequent breach on the part of either
Executive or of the Company.

     13. Non-Assignment / Successors

          Neither party hereto may assign his or its rights or delegate his or its
duties under this Agreement without the prior written consent of the other
party; provided, however, that (i) this Agreement shall inure to the benefit of
and be binding upon the successors and assigns of the Company upon any sale or
all or substantially all of the Company’s assets, or upon any merger,
consolidation or reorganization of the Company with or into any other
corporation, all as though such successors and assigns of the Company and their
respective successors and assigns were the Company; and (ii) this Agreement
shall inure to the benefit of and be binding upon the heirs, assigns or
designees of Executive to the extent of any payments due to them hereunder. As
used in this Agreement, the term “Company” shall be deemed to refer to any such
successor or assign of the Company referred to in the preceding sentence.

     14. Severability

          To the extent any provision of this Agreement or portion thereof shall be
invalid or unenforceable, it shall be considered deleted there from and the
remainder of such provision and of this Agreement shall be unaffected and shall
continue in full force and effect.

-10-

 

     15. Counterparts

          This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together will constitute one
and the same instrument.

     16. Arbitration

          Executive and the Company shall submit to mandatory and exclusive binding
arbitration, any controversy or claim arising out of, or relating to, this
Agreement or any breach hereof where the amount in dispute is greater than or
equal to Fifty Thousand Dollars ($50,000), provided, however, that the parties
retain their right to, and shall not be prohibited, limited or in any other way
restricted from, seeking or obtaining equitable relief from a court having
jurisdiction over the parties. In the event the amount of any controversy or
claim arising out of, or relating to, this Agreement, or any breach hereof, is
less than Fifty Thousand Dollars ($50,000), the parties hereby agree to submit
such claim to mediation. Such arbitration shall be governed by the Federal
Arbitration Act and conducted through the American Arbitration Association
(“AAA”) in the District of Columbia, before a single neutral arbitrator, in
accordance with the National Rules for the Resolution of Employment Disputes of
the American Arbitration Association in effect at that time. The parties may
conduct only essential discovery prior to the hearing, as defined by the AAA
arbitrator. The arbitrator shall issue a written decision which contains the
essential findings and conclusions on which the decision is based. Mediation
shall be governed by, and conducted through, the AAA. Judgment upon the
determination or award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.

     17. Entire Agreement

          This Agreement and all schedules and other attachments hereto constitute
the entire agreement by the Company and Executive with respect to the subject
matter hereof and, except as specifically provided herein, supersedes any and
all prior agreements or understandings between Executive and the Company with
respect to the subject matter hereof, whether written or oral. This Agreement
may be amended or modified only by a written instrument executed by Executive
and the Company. This Agreement takes precedence over any other agreement,
including the Company’s 2001 Equity Performance Plan, for interpreting the
provisions of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as
of the date written above.

	 	 	 	 	 
	

	 	JAY O. WRIGHT
	 	MOBILEPRO CORP.
	 
	 	 	 	 
	 	 	
	 	

	

	 	   
	 	
By: Daniel Lozinsky
	

	 	 	 	Its: Secretary and Sole Director

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