Document:

Exhibit
        10.2

    

     

    NEITHER
      THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
      HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN
      EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES
      ACT”),
      AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

    

    

    MOBILEPRO
      CORP.

    

    

    Secured
      Convertible Debenture

     

    
      	
              Issuance
                Date: June 30, 2008

            	
              Original
                Principal Amount: $ 13,391,174.54

            
	
              No.
                MOBL-5-1

            	 

    

    

    FOR
      VALUE RECEIVED,
      MOBILEPRO CORP., a Delaware corporation (the “Company”),
      hereby
      promises to pay to the order of YA GLOBAL INVESTMENTS, L.P f/k/a Cornell Capital
      Partners, L.P., or registered assigns (the “Holder”)
      the
      amount set out above as the Original Principal Amount (as reduced pursuant
      to
      the terms hereof pursuant to redemption, conversion or otherwise, the
“Principal”)
      when
      due, upon the Maturity Date (as defined below), acceleration, redemption or
      otherwise (in each case in accordance with the terms hereof) and to pay interest
      (“Interest”)
      on any
      outstanding Principal at the applicable Interest Rate from the date set out
      above as the Issuance Date (the “Issuance
      Date”)
      until
      the same becomes due and payable as set forth below, or upon acceleration,
      conversion, redemption or otherwise (in each case in accordance with the terms
      hereof). This Secured Convertible Debenture (including all Secured Convertible
      Debentures issued in exchange, transfer or replacement hereof, this
“Debenture”)
      is
      issued in exchange for debentures issued by the Company to the Holder dated
      June
      30, 2006, and May 11, 2007 (collectively, the “Existing
      Debentures”).
      Certain capitalized terms used herein are defined in Section 17.

    

    (1) GENERAL
      TERMS

    

    (a) Payment
      of Principal.
      On
      the
      Maturity Date, the Company shall pay to the Holder an amount in cash
      representing all outstanding Principal, accrued and unpaid Interest.
The
      “Maturity
      Date”
shall
      be May 1, 2009, as may be extended at the option of the Holder (i) in the event
      that, and for so long as, an Event of Default (as defined below) shall have
      occurred and be continuing on the Maturity Date (as may be extended pursuant
      to
      this Section 1) or any event shall have occurred and be continuing on the
      Maturity Date (as may be extended pursuant to this Section 1) that with the
      passage of time and the failure to cure would result in an Event of Default.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Interest.
      Interest shall accrue on the outstanding principal balance hereof at an annual
      rate equal to twelve percent (12%) (“Interest
      Rate”).
      Interest shall be calculated on the basis of a 360-day year and the actual
      number of days elapsed, to the extent permitted by applicable law. Interest
      hereunder shall be paid monthly in arrears, beginning on July 1, 2008, and
      on
      the Maturity Date (or sooner as provided herein) to the Holder or its assignee
      in whose name this Debenture is registered on the records of the Company
      regarding registration and transfers of Debentures at the option of the Company
      in cash, or, provided that the Equity Conditions are then satisfied, up to
      four
      and one-half percent (4.5%) of the total interest due in Common Stock at the
      applicable Conversion Price on the Trading Day immediately prior to the Interest
      payment date.

    

    (c) Security.
      The
      Debenture is
      secured by (i) a security interest in all of the assets of the Company and
      of
      each of the Company’s direct and indirect subsidiaries as evidenced by the
      Amended and Restated Security Agreement of even date herewith (the “Security
      Agreement”)
      and
      (ii) a guarantee of the debt evidenced hereby by each of the Company’s direct
      and indirect subsidiaries in which the Company has an equity interest (the
      “Guarantees”
and
      together with the Security Agreement collectively the “Security
      Documents”).

    

    (2) EVENTS
      OF DEFAULT. 

    

    (a) An
      “Event
      of Default”,
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body):

    

    (i) the
      Company’s failure to pay to the Holder any amount of Principal, Interest, or
      other amounts when and as due under this Debenture (including, without
      limitation, the Company's failure to pay any redemption payments or amounts
      hereunder) or any other Transaction Document;

    

    (ii) The
      Company or any subsidiary of the Company shall commence, or there shall be
      commenced against the Company or any subsidiary of the Company under any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Company or any subsidiary of the Company commences
      any
      other proceeding under any reorganization, arrangement, adjustment of debt,
      relief of debtors, dissolution, insolvency or liquidation or similar law of
      any
      jurisdiction whether now or hereafter in effect relating to the Company or
      any
      subsidiary of the Company or there is commenced against the Company or any
      subsidiary of the Company any such bankruptcy, insolvency or other proceeding
      which remains undismissed for a period of 61 days; or the Company or any
      subsidiary of the Company is adjudicated insolvent or bankrupt; or any order
      of
      relief or other order approving any such case or proceeding is entered; or
      the
      Company or any subsidiary of the Company suffers any appointment of any
      custodian, private or court appointed receiver or the like for it or any
      substantial part of its property which continues undischarged or unstayed for
      a
      period of sixty one (61) days; or the Company or any subsidiary of the Company
      makes a general assignment for the benefit of creditors; or the Company or
      any
      subsidiary of the Company shall fail to pay, or shall state that it is unable
      to
      pay, or shall be unable to pay, its debts generally as they become due; or
      the
      Company or any subsidiary of the Company shall call a meeting of its creditors
      with a view to arranging a composition, adjustment or restructuring of its
      debts; or the Company or any subsidiary of the Company shall by any act or
      failure to act expressly indicate its consent to, approval of or acquiescence
      in
      any of the foregoing; or any corporate or other action is taken by the Company
      or any subsidiary of the Company for the purpose of effecting any of the
      foregoing;

     

    
      
        
        

      

      
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    (iii) Except
      as
      described on Schedule
      2(a)(iii)
      hereof,
      the Company or any subsidiary of the Company shall default in any of its
      obligations under any other debenture or any mortgage, credit agreement or
      other
      facility, indenture agreement, factoring agreement or other instrument under
      which there may be issued, or by which there may be secured or evidenced any
      indebtedness for borrowed money or money due under any long term leasing or
      factoring arrangement of the Company or any subsidiary of the Company in an
      amount exceeding $100,000, whether such indebtedness now exists or shall
      hereafter be created;

    

    (iv) If
      the
      Common Stock is quoted or listed for trading on any of the following and it
      ceases to be so quoted or listed for trading and shall not again be quoted
      or
      listed for trading on any Primary Market within five (5) Trading Days of such
      delisting: (a) the American Stock Exchange, (b) New York Stock Exchange, (c)
      the
      Nasdaq Global Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC
      Bulletin Board (“OTCBB”) (each, a “Primary Market”);

    

    (v) The
      Company or any subsidiary of the Company shall be a party to any Change of
      Control Transaction (as defined in Section 6) unless in connection with such
      Change of Control Transaction this Debenture is retired; 

    

    (vi) (RESERVED)

    

    (vii) The
      Company’s (A) failure to cure a Conversion Failure by delivery of the required
      number of shares of Common Stock within five (5) Business Days after the
      applicable Conversion Failure or (B) notice, written or oral, to any holder
      of
      the Debentures, including by way of public announcement, at any time, of its
      intention not to comply with a request for conversion of any Debentures into
      shares of Common Stock that is tendered in accordance with the provisions of
      the
      Debentures, other than pursuant to Section 4(c);

    

    (viii) The
      Company shall fail for any reason to deliver the payment in cash pursuant to
      a
      Buy-In (as defined herein) within three (3) Business Days after such payment
      is
      due; 

    

    (ix) The
      Company shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Debenture (except as may be covered by Section 2(a)(i) through
      2(a)(vii) hereof) or any Transaction Document (as defined in Section 17) which
      is not cured within the time prescribed.

    

    (x) Any
      Event
      of Default (as defined in the Other Debentures) occurs with respect to any
      Other
      Debentures.

     

    
      
        
        

      

      
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    (b) During
      the time that any portion of this Debenture is outstanding, if any Event of
      Default has occurred, the full unpaid Principal amount of this Debenture,
      together with interest and other amounts owing in respect thereof, to the date
      of acceleration shall become at the Holder’s election, immediately due and
      payable in cash; provided however, the Holder may request (but shall have no
      obligation to request) payment of such amounts in Common Stock of the Company.
      If an Event of Default (after giving effect to any specified cure period) occurs
      and for so long as such Event of Default remains uncured, the Interest Rate
      on
      this Debenture shall immediately become twenty-four percent (24%) per annum
      and
      shall remain at such increased interest rate until the applicable Event of
      Default is cured. Furthermore, in addition to any other remedies, the Holder
      shall have the right (but not the obligation) to convert this Debenture at
      any
      time after (x) an Event of Default or (y) the Maturity Date at the lower of
      the
      Conversion Price or the Company Conversion Price. The Holder need not provide
      and the Company hereby waives any presentment, demand, protest or other notice
      of any kind, (other than required notice of conversion) and the Holder may
      immediately and without expiration of any grace period enforce any and all
      of
      its rights and remedies hereunder and all other remedies available to it under
      applicable law. Such declaration may be rescinded and annulled by Holder at
      any
      time prior to payment hereunder. No such rescission or annulment shall affect
      any subsequent Event of Default or impair any right consequent thereon.

    

    (3) COMPANY
      REDEMPTIONS 

    

    (a) The
      Company shall be permitted to prepay this Debenture, in whole or in part, at
      any
      time without penalty. In order to make a redemption pursuant to this Section,
      the Company shall first provide written notice to the Holder of its intention
      to
      make a redemption (the “Redemption
      Notice”)
      setting forth the amount of Principal it desires to redeem (the “Redemption
      Amount”).
      After
      receipt of the Redemption Notice the Holder shall have three (3) Business Days
      to elect to convert all or any portion of this Debenture, subject to the
      limitations set forth in Section 4(b). On the fourth (4th) Business Day after
      the Redemption Notice, the Company shall deliver to the Holder the Redemption
      Amount with respect to the Principal amount redeemed after giving effect to
      conversions effected during the three (3) Business Day period.

     

    
      
        
        

      

      
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    (4) CONVERSION
      OF DEBENTURE. This
      Debenture shall be convertible into shares of the Company’s Common Stock, on the
      terms and conditions set forth in this Section 4.

    

    (a) Conversion
      Right.
      Subject
      to the provisions of Section 4(c), at any time or times on or after the Issuance
      Date, the Holder shall be entitled to convert any portion of the outstanding
      and
      unpaid Conversion Amount (as defined below) into fully paid and nonassessable
      shares of Common Stock in accordance with Section 4(b), at the Conversion Rate
      (as defined below). The number of shares of Common Stock issuable upon
      conversion of any Conversion Amount pursuant to this Section 4(a) shall be
      determined by dividing (x) such Conversion Amount by (y) the Conversion Price
      (the “Conversion
      Rate”).
      The
      Company shall not issue any fraction of a share of Common Stock upon any
      conversion. If the issuance would result in the issuance of a fraction of a
      share of Common Stock, the Company shall round such fraction of a share of
      Common Stock up to the nearest whole share. The Company shall pay any and all
      transfer, stamp and similar taxes that may be payable with respect to the
      issuance and delivery of Common Stock upon conversion of any Conversion Amount.
      

    

    (i) “Conversion
      Amount”
means
      the portion of the Principal and accrued Interest to be converted, redeemed
      or
      otherwise with respect to which this determination is being made.

    

    (ii) “Conversion
      Price”
means,
      as of any Conversion Date (as defined below) or other date of determination,
      the
      lesser of (a) $0.04973
      (the
“Fixed
      Conversion Price”),
      subject to adjustment as provided herein, or (b) the average of the two lowest
      Volume Weighted Average Prices during the five (5) Trading Days immediately
      preceding the Conversion Date (the “Market
      Conversion Price”).

    

    (b) Mechanics
      of Conversion.

    

    (i) Optional
      Conversion.
      To
      convert any Conversion Amount into shares of Common Stock on any date (a
“Conversion
      Date”),
      the
      Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt
      on or
      prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice
      of conversion in the form attached hereto as Exhibit
      I
      (the
“Conversion
      Notice”)
      to the
      Company and (B) if required by Section 4(b)(iv), surrender this Debenture to
      a
      nationally recognized overnight delivery service for delivery to the Company
      (or
      an indemnification undertaking reasonably satisfactory to the Company with
      respect to this Debenture in the case of its loss, theft or destruction). On
      or
      before the third Business Day following the date of receipt of a Conversion
      Notice (the “Share
      Delivery Date”),
      the
      Company shall (X) if legends are not required to be placed on certificates
      of
      Common Stock pursuant to the Securities Purchase Agreement dated as of the
      date
      hereof and provided that the Transfer Agent is participating in the Depository
      Trust Company’s (“DTC”)
      Fast
      Automated Securities Transfer Program, credit such aggregate number of shares
      of
      Common Stock to which the Holder shall be entitled to the Holder’s or its
      designee’s balance account with DTC through its Deposit Withdrawal Agent
      Commission system or (Y) if the Transfer Agent is not participating in the
      DTC
      Fast Automated Securities Transfer Program, issue and deliver to the address
      as
      specified in the Conversion Notice, a certificate, registered in the name of
      the
      Holder or its designee, for the number of shares of Common Stock to which the
      Holder shall be entitled which certificates shall not bear any restrictive
      legends unless required pursuant to Section 2(g) of the Securities Purchase
      Agreement. If this Debenture is physically surrendered for conversion and the
      outstanding Principal of this Debenture is greater than the Principal portion
      of
      the Conversion Amount being converted, then the Company shall as soon as
      practicable and in no event later than three (3) Business Days after receipt
      of
      this Debenture and at its own expense, issue and deliver to the holder a new
      Debenture representing the outstanding Principal not converted. The Person
      or
      Persons entitled to receive the shares of Common Stock issuable upon a
      conversion of this Debenture shall be treated for all purposes as the record
      holder or holders of such shares of Common Stock upon the transmission of a
      Conversion Notice. 

     

    
      
        
        

      

      
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    (ii) Company’s
      Failure to Timely Convert.
      If
      within three (3) Trading Days after the Company’s receipt of the facsimile copy
      of a Conversion Notice the Company shall fail to issue and deliver a certificate
      to the Holder or credit the Holder’s balance account with DTC for the number of
      shares of Common Stock to which the Holder is entitled upon such Holder’s
      conversion of any Conversion Amount (a “Conversion
      Failure”),
      and
      if on or after such Trading Day the Holder purchases (in an open market
      transaction or otherwise) Common Stock to deliver in satisfaction of a sale
      by
      the Holder of Common Stock issuable upon such conversion that the Holder
      anticipated receiving from the Company (a “Buy-In”),
      then
      the Company shall, within three (3) Business Days after the Holder’s request and
      in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
      to the Holder’s total purchase price (including brokerage commissions and other
      out of pocket expenses, if any) for the shares of Common Stock so purchased
      (the
“Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such Common Stock) shall terminate, or (ii) promptly honor its obligation to
      deliver to the Holder a certificate or certificates representing such Common
      Stock and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of shares of Common Stock,
      times (B) the Closing Bid Price on the Conversion Date.

    

    (iii) Book-Entry.
      Notwithstanding anything to the contrary set forth herein, upon conversion
      of
      any portion of this Debenture in accordance with the terms hereof, the Holder
      shall not be required to physically surrender this Debenture to the Company
      unless (A) the full Conversion Amount represented by this Debenture is being
      converted or (B) the Holder has provided the Company with prior written notice
      (which notice may be included in a Conversion Notice) requesting reissuance
      of
      this Debenture upon physical surrender of this Debenture. The Holder and the
      Company shall maintain records showing the Principal and Interest converted
      and
      the dates of such conversions or shall use such other method, reasonably
      satisfactory to the Holder and the Company, so as not to require physical
      surrender of this Debenture upon conversion.

    

    (c) Limitations
      on Conversions.

    

    (i) Beneficial
      Ownership.
      The
      Company shall not effect any conversions of this Debenture and the Holder shall
      not have the right to convert any portion of this Debenture or receive shares
      of
      Common Stock as payment of interest hereunder to the extent that after giving
      effect to such conversion or receipt of such interest payment, the Holder,
      together with any affiliate thereof, would beneficially own (as determined
      in
      accordance with Section 13(d) of the Exchange Act and the rules promulgated
      thereunder) in excess of 4.99% of the number of shares of Common Stock
      outstanding immediately after giving effect to such conversion or receipt of
      shares as payment of interest. Since the Holder will not be obligated to report
      to the Company the number of shares of Common Stock it may hold at the time
      of a
      conversion hereunder, unless the conversion at issue would result in the
      issuance of shares of Common Stock in excess of 4.99% of the then outstanding
      shares of Common Stock without regard to any other shares which may be
      beneficially owned by the Holder or an affiliate thereof, the Holder shall
      have
      the authority and obligation to determine whether the restriction contained
      in
      this Section will limit any particular conversion hereunder and to the extent
      that the Holder determines that the limitation contained in this Section
      applies, the determination of which portion of the principal amount of this
      Debenture is convertible shall be the responsibility and obligation of the
      Holder. If the Holder has delivered a Conversion Notice for a principal amount
      of this Debenture that, without regard to any other shares that the Holder
      or
      its affiliates may beneficially own, would result in the issuance in excess
      of
      the permitted amount hereunder, the Company shall notify the Holder of this
      fact
      and shall honor the conversion for the maximum principal amount permitted to
      be
      converted on such Conversion Date in accordance with Section 4(a) and, any
      principal amount tendered for conversion in excess of the permitted amount
      hereunder shall remain outstanding under this Debenture. The provisions of
      this
      Section may be waived by a Holder (but only as to itself and not to any other
      Holder) upon not less than 65 days prior notice to the Company. Other Holders
      shall be unaffected by any such waiver.

     

    
      
        
        

      

      
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    (d) Other
      Provisions.

    

    (i) The
      Company shall at all times reserve and keep available out of its authorized
      Common Stock the full number of shares of Common Stock issuable upon conversion
      of all outstanding amounts under this Debenture; and within three (3) Business
      Days following the receipt by the Company of a Holder’s notice that such minimum
      number of Underlying Shares is not so reserved, the Company shall promptly
      reserve a sufficient number of shares of Common Stock to comply with such
      requirement.

    

    (ii) All
      calculations under this Section 4 shall be rounded to the nearest $0.0001 or
      whole share.

    

    (iii) The
      Company covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock solely for the purpose of
      issuance upon conversion of this Debenture and payment of interest on this
      Debenture, each as herein provided, free from preemptive rights or any other
      actual contingent purchase rights of persons other than the Holder, not less
      than such number of shares of the Common Stock as shall (subject to any
      additional requirements of the Company as to reservation of such shares set
      forth in this Debenture or in the Transaction Documents) be issuable (taking
      into account the adjustments and restrictions set forth herein) upon the
      conversion of the outstanding principal amount of this Debenture and payment
      of
      interest hereunder. The Company covenants that all shares of Common Stock that
      shall be so issuable shall, upon issue, be duly and validly authorized, issued
      and fully paid, nonassessable and, if the Underlying Shares Registration
      Statement has been declared effective under the Securities Act, registered
      for
      public sale in accordance with such Underlying Shares Registration
      Statement.

    

    (iv) Nothing
      herein shall limit a Holder’s right to pursue actual damages or declare an Event
      of Default pursuant to Section 2 herein for the Company’s failure to deliver
      certificates representing shares of Common Stock upon conversion within the
      period specified herein and such Holder shall have the right to pursue all
      remedies available to it at law or in equity including, without limitation,
      a
      decree of specific performance and/or injunctive relief, in each case without
      the need to post a bond or provide other security. The exercise of any such
      rights shall not prohibit the Holder from seeking to enforce damages pursuant
      to
      any other Section hereof or under applicable law. 

    

    (5) Adjustments
      to Conversion Price

    

    (a) Adjustment
      of Conversion Price upon Issuance of Common Stock.
      If the
      Company, at any time while this Debenture is outstanding, issues or sells,
      or in
      accordance with this Section 5(a) is deemed to have issued or sold, any shares
      of Common Stock, excluding shares of Common Stock deemed to have been issued
      or
      sold by the Company in connection with any Excluded Securities, for a
      consideration per share (the “New
      Issuance Price”)
      less
      than a price equal to the Conversion Price in effect immediately prior to such
      issue or sale (such price the “Applicable
      Price”)
      (the
      foregoing a “Dilutive
      Issuance”),
      then
      immediately after such Dilutive Issuance the Conversion Price then in effect
      shall be reduced to an amount equal to the New Issuance Price. For purposes
      of
      determining the adjusted Conversion Price under this Section 5(a), the following
      shall be applicable:

     

    
      
        
        

      

      
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    (i) Issuance
      of Options.
      If the
      Company in any manner grants or sells any Options and the lowest price per
      share
      for which one share of Common Stock is issuable upon the exercise of any such
      Option or upon conversion or exchange or exercise of any Convertible Securities
      issuable upon exercise of such Option is less than the Applicable Price, then
      such share of Common Stock shall be deemed to be outstanding and to have been
      issued and sold by the Company at the time of the granting or sale of such
      Option for such price per share. For purposes of this Section, the “lowest price
      per share for which one share of Common Stock is issuable upon the exercise
      of
      any such Option or upon conversion or exchange or exercise of any Convertible
      Securities issuable upon exercise of such Option” shall be equal to the sum of
      the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to any one share of Common Stock upon granting or sale
      of
      the Option, upon exercise of the Option and upon conversion or exchange or
      exercise of any Convertible Security issuable upon exercise of such Option.
      No
      further adjustment of the Conversion Price shall be made upon the actual
      issuance of such share of Common Stock or of such Convertible Securities upon
      the exercise of such Options or upon the actual issuance of such Common Stock
      upon conversion or exchange or exercise of such Convertible
      Securities.

     

    (ii) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities and the lowest
      price per share for which one share of Common Stock is issuable upon such
      conversion or exchange or exercise thereof is less than the Applicable Price,
      then such share of Common Stock shall be deemed to be outstanding and to have
      been issued and sold by the Company at the time of the issuance or sale of
      such
      Convertible Securities for such price per share. For the purposes of this
      Section, the “lowest price per share for which one share of Common Stock is
      issuable upon such conversion or exchange or exercise” shall be equal to the sum
      of the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to any one share of Common Stock upon the issuance or
      sale
      of the Convertible Security and upon the conversion or exchange or exercise
      of
      such Convertible Security. No further adjustment of the Conversion Price shall
      be made upon the actual issuance of such share of Common Stock upon conversion
      or exchange or exercise of such Convertible Securities, and if any such issue
      or
      sale of such Convertible Securities is made upon exercise of any Options for
      which adjustment of the Conversion Price had been or are to be made pursuant
      to
      other provisions of this Section, no further adjustment of the Conversion Price
      shall be made by reason of such issue or sale.

     

    (iii) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exchange or exercise of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exchangeable or exercisable for Common Stock changes at any time, the
      Conversion Price in effect at the time of such change shall be adjusted to
      the
      Conversion Price which would have been in effect at such time had such Options
      or Convertible Securities provided for such changed purchase price, additional
      consideration or changed conversion rate, as the case may be, at the time
      initially granted, issued or sold. For purposes of this Section, if the terms
      of
      any Option or Convertible Security that was outstanding as of the Issuance
      Date
      are changed in the manner described in the immediately preceding sentence,
      then
      such Option or Convertible Security and the Common Stock deemed issuable upon
      exercise, conversion or exchange thereof shall be deemed to have been issued
      as
      of the date of such change. No adjustment shall be made if such adjustment
      would
      result in an increase of the Conversion Price then in effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (iv) Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for the difference of (x) the aggregate
      fair
      market value of such Options and other securities issued or sold in such
      integrated transaction, less (y) the fair market value of the securities other
      than such Option, issued or sold in such transaction and the other securities
      issued or sold in such integrated transaction will be deemed to have been issued
      or sold for the balance of the consideration received by the Company. If any
      Common Stock, Options or Convertible Securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefor will
      be
      deemed to be the gross amount raised by the Company; provided, however, that
      such gross amount is not greater than 110% of the net amount received by the
      Company therefor. If any Common Stock, Options or Convertible Securities are
      issued or sold for a consideration other than cash, the amount of the
      consideration other than cash received by the Company will be the fair value
      of
      such consideration, except where such consideration consists of securities,
      in
      which case the amount of consideration received by the Company will be the
      Closing Bid Price of such securities on the date of receipt. If any Common
      Stock, Options or Convertible Securities are issued to the owners of the
      non-surviving entity in connection with any merger in which the Company is
      the
      surviving entity, the amount of consideration therefor will be deemed to be
      the
      fair value of such portion of the net assets and business of the non-surviving
      entity as is attributable to such Common Stock, Options or Convertible
      Securities, as the case may be. The fair value of any consideration other than
      cash or securities will be determined jointly by the Company and the Holder.
      If
      such parties are unable to reach agreement within ten (10) days after the
      occurrence of an event requiring valuation (the “Valuation
      Event”),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the Holder. The determination of such appraiser
      shall be deemed binding upon all parties absent manifest error and the fees
      and
      expenses of such appraiser shall be borne by the Company.

     

    (v) Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (A) to receive a dividend or other distribution payable in Common
      Stock, Options or in Convertible Securities or (B) to subscribe for or purchase
      Common Stock, Options or Convertible Securities, then such record date will
      be
      deemed to be the date of the issue or sale of the Common Stock deemed to have
      been issued or sold upon the declaration of such dividend or the making of
      such
      other distribution or the date of the granting of such right of subscription
      or
      purchase, as the case may be.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) Adjustment
      of Conversion Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company, at any time while this Debenture is outstanding, shall (a) pay a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (b) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (c) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (d)
      issue
      by reclassification of shares of the Common Stock any shares of capital stock
      of
      the Company, then the Conversion Price shall be multiplied by a fraction of
      which the numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding after
      such
      event. Any adjustment made pursuant to this Section shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification.

    

    (c) Purchase
      Rights.
      If at
      any time the Company grants, issues or sells any Options, Convertible Securities
      or rights to purchase stock, warrants, securities or other property pro rata
      to
      the record holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of shares of Common Stock acquirable
      upon complete conversion of this Debenture (without taking into account any
      limitations or restrictions on the convertibility of this Debenture) immediately
      before the date on which a record is taken for the grant, issuance or sale
      of
      such Purchase Rights, or, if no such record is taken, the date as of which
      the
      record holders of Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    (d) Other
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 4 but
      not expressly provided for by such provisions (including, without limitation,
      the granting of stock appreciation rights, phantom stock rights or other rights
      with equity features), then the Company’s Board of Directors will make an
      appropriate adjustment in the Conversion Price so as to protect the rights
      of
      the Holder under this Debenture; provided that no such adjustment will increase
      the Conversion Price as otherwise determined pursuant to this Section
      5.

    

    (e) Other
      Corporate Events.
      In
      addition to and not in substitution for any other rights hereunder, prior to
      the
      consummation of any Fundamental Transaction pursuant to which holders of shares
      of Common Stock are entitled to receive securities or other assets with respect
      to or in exchange for shares of Common Stock (a “Corporate
      Event”),
      the
      Company shall make appropriate provision to insure that the Holder will
      thereafter have the right to receive upon a conversion of this Debenture, at
      the
      Holder’s option, (i) in addition to the shares of Common Stock receivable upon
      such conversion, such securities or other assets to which the Holder would
      have
      been entitled with respect to such shares of Common Stock had such shares of
      Common Stock been held by the Holder upon the consummation of such Corporate
      Event (without taking into account any limitations or restrictions on the
      convertibility of this Debenture) or (ii) in lieu of the shares of Common Stock
      otherwise receivable upon such conversion, such securities or other assets
      received by the holders of shares of Common Stock in connection with the
      consummation of such Corporate Event in such amounts as the Holder would have
      been entitled to receive had this Debenture initially been issued with
      conversion rights for the form of such consideration (as opposed to shares
      of
      Common Stock) at a conversion rate for such consideration commensurate with
      the
      Conversion Rate. Provision made pursuant to the preceding sentence shall be
      in a
      form and substance satisfactory to the Required Holders. The provisions of
      this
      Section shall apply similarly and equally to successive Corporate Events and
      shall be applied without regard to any limitations on the conversion or
      redemption of this Debenture.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (f) Whenever
      the Conversion Price is adjusted pursuant to Section 5 hereof, the Company
      shall
      promptly mail to the Holder a notice setting forth the Conversion Price after
      such adjustment and setting forth a brief statement of the facts requiring
      such
      adjustment.

    

    (g) In
      case
      of any (1) merger or consolidation of the Company or any subsidiary of the
      Company with or into another Person, or (2) sale by the Company or any
      subsidiary of the Company of more than one-half of the assets of the Company
      in
      one or a series of related transactions, a Holder shall have the right to (A)
      declare the entire amount due and owing under the Debenture, (B) exercise any
      rights under Section 2(b), (C) convert the aggregate amount of this Debenture
      then outstanding into the shares of stock and other securities, cash and
      property receivable upon or deemed to be held by holders of Common Stock
      following such merger, consolidation or sale, and such Holder shall be entitled
      upon such event or series of related events to receive such amount of
      securities, cash and property as the shares of Common Stock into which such
      aggregate principal amount of this Debenture could have been converted
      immediately prior to such merger, consolidation or sales would have been
      entitled, or (D) in the case of a merger or consolidation, require the surviving
      entity to issue to the Holder a convertible Debenture with a principal amount
      equal to the aggregate principal amount of this Debenture then held by such
      Holder, plus all accrued and unpaid interest and other amounts owing thereon,
      which such newly issued convertible Debenture shall have terms identical
      (including with respect to conversion) to the terms of this Debenture, and
      shall
      be entitled to all of the rights and privileges of the Holder of this Debenture
      set forth herein and the agreements pursuant to which this Debentures were
      issued. In the case of clause (D), the conversion price applicable for the
      newly
      issued shares of convertible preferred stock or convertible Debentures shall
      be
      based upon the amount of securities, cash and property that each share of Common
      Stock would receive in such transaction and the Conversion Price in effect
      immediately prior to the effectiveness or closing date for such transaction.
      The
      terms of any such merger, sale or consolidation shall include such terms so
      as
      to continue to give the Holder the right to receive the securities, cash and
      property set forth in this Section upon any conversion or redemption following
      such event. This provision shall similarly apply to successive such
      events.

    

    (6) REISSUANCE
      OF THIS DEBENTURE.

    

    (a) Transfer.
      If this
      Debenture is to be transferred, the Holder shall surrender this Debenture to
      the
      Company, whereupon the Company will, subject to the satisfaction of the transfer
      provisions of the Securities Purchase Agreement, forthwith issue and deliver
      upon the order of the Holder a new Debenture (in accordance with Section 6(d)),
      registered in the name of the registered transferee or assignee, representing
      the outstanding Principal being transferred by the Holder and, if less than
      the
      entire outstanding Principal is being transferred, a new Debenture (in
      accordance with Section 6(d)) to the Holder representing the outstanding
      Principal not being transferred. The Holder and any assignee, by acceptance
      of
      this Debenture, acknowledge and agree that, by reason of the provisions of
      Section 4(b)(iii) following conversion or redemption of any portion of this
      Debenture, the outstanding Principal represented by this Debenture may be less
      than the Principal stated on the face of this Debenture.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b) Lost,
      Stolen or Mutilated Debenture.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Debenture, and, in the case
      of
      loss, theft or destruction, of any indemnification undertaking by the Holder
      to
      the Company in customary form and, in the case of mutilation, upon surrender
      and
      cancellation of this Debenture, the Company shall execute and deliver to the
      Holder a new Debenture (in accordance with Section 6(d)) representing the
      outstanding Principal.

    

    (c) Debenture
      Exchangeable for Different Denominations.
      This
      Debenture is exchangeable, upon the surrender hereof by the Holder at the
      principal office of the Company, for a new Debenture or Debentures (in
      accordance with Section 6(d)) representing in the aggregate the outstanding
      Principal of this Debenture, and each such new Debenture will represent such
      portion of such outstanding Principal as is designated by the Holder at the
      time
      of such surrender.

    

    (d) Issuance
      of New Debentures.
      Whenever the Company is required to issue a new Debenture pursuant to the terms
      of this Debenture, such new Debenture (i) shall be of like tenor with this
      Debenture, (ii) shall represent, as indicated on the face of such new Debenture,
      the Principal remaining outstanding (or in the case of a new Debenture being
      issued pursuant to Section 6(a) or Section 6(c), the Principal designated by
      the
      Holder which, when added to the principal represented by the other new
      Debentures issued in connection with such issuance, does not exceed the
      Principal remaining outstanding under this Debenture immediately prior to such
      issuance of new Debentures), (iii) shall have an issuance date, as indicated
      on
      the face of such new Debenture, which is the same as the Issuance Date of this
      Debenture, (iv) shall have the same rights and conditions as this Debenture,
      and
      (v) shall represent accrued and unpaid Interest from the Issuance
      Date.

     

    (7) NOTICES. Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) Trading Day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

    
       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

     

    
      	
              If
                to the Company, to:

            	
              Mobilepro
                Corp.

            
	 	
              6701
                Democracy Blvd., Suite 202

            
	 	
              Bethesda,
                MD 20817

            
	 	
              Attention:
                Jay Wright, Chairman and Chief Executive Officer

            
	 	
              Telephone:
                (301) 571-3476

            
	 	
              Facsimile:
                (301) 315-9027

            
	 	 
	
              With
                a copy to: 

            	
              Seyfarth
                Shaw LLP

            
	 	
              815
                Connecticut Avenue, NW, Suite 500

            
	 	
              Washington,
                DC 20006-4004

            
	 	
              Attention: Ernest
                M. Stern, Esquire

            
	 	
              Telephone: (202)
                828-5360 

            
	 	
              Facsimile: (202)
                828-5393 

            

    

    

    
      	
              If
                to the Holder:

            	
              YA
                Global Investments, LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07303

            
	 	
              Attention: Mark
                Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	 
	
              With
                a copy to:

            	
              Troy
                Rillo, Esq. or David Gonzalez, Esq. 

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) Business Days prior to the effectiveness of such change.
      Written confirmation of receipt (i) given by the recipient of such notice,
      consent, waiver or other communication, (ii) mechanically or electronically
      generated by the sender’s facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (iii)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively.

    

    (8) Except
      as
      expressly provided herein, no provision of this Debenture shall alter or impair
      the obligations of the Company, which are absolute and unconditional, to pay
      the
      principal of, interest and other charges (if any) on, this Debenture at the
      time, place, and rate, and in the coin or currency, herein prescribed. This
      Debenture is a direct obligation of the Company. As long as this Debenture
      is
      outstanding, the Company shall not and shall cause their subsidiaries not to,
      without the consent of the Holder, (i) amend its certificate of incorporation,
      bylaws or other charter documents so as to adversely affect any rights of the
      Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise
      acquire shares of its Common Stock or other equity securities other than as
      to
      the Underlying Shares to the extent permitted or required under the Transaction
      Documents; or (iii) enter into any agreement with respect to any of the
      foregoing. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (9) This
      Debenture shall not entitle the Holder to any of the rights of a stockholder
      of
      the Company, including without limitation, the right to vote, to receive
      dividends and other distributions, or to receive any notice of, or to attend,
      meetings of stockholders or any other proceedings of the Company, unless and
      to
      the extent converted into shares of Common Stock in accordance with the terms
      hereof.

    

    (10) No
      indebtedness of the Company is senior to this Debenture in right of payment,
      whether with respect to interest, damages or upon liquidation or dissolution
      or
      otherwise. Without the Holder’s consent, the Company will not and will not
      permit any of their subsidiaries to, directly or indirectly, enter into, create,
      incur, assume or suffer to exist any indebtedness of any kind, on or with
      respect to any of its property or assets now owned or hereafter acquired or
      any
      interest therein or any income or profits there from that is senior in any
      respect to the obligations of the Company under this Debenture.

    

    (11) This
      Debenture shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey, without giving effect to conflicts of laws thereof. Each
      of
      the parties consents to the jurisdiction of the Superior Courts of the State
      of
      New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
      for the District of New Jersey sitting in Newark, New Jersey in connection
      with
      any dispute arising under this Debenture and hereby waives, to the maximum
      extent permitted by law, any objection, including any objection based on forum
      non conveniens to the bringing of any such proceeding in such jurisdictions.
      

    

    (12) If
      the
      Company fails to strictly comply with the terms of this Debenture, then the
      Company shall reimburse the Holder promptly for all fees, costs and expenses,
      including, without limitation, attorneys’ fees and expenses incurred by the
      Holder in any action in connection with this Debenture, including, without
      limitation, those incurred: (i) during any workout, attempted workout, and/or
      in
      connection with the rendering of legal advice as to the Holder’s rights,
      remedies and obligations, (ii) collecting any sums which become due to the
      Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
      any
      proceeding or appeal; or (iv) the protection, preservation or enforcement of
      any
      rights or remedies of the Holder.

    

    (13) Any
      waiver by the Holder of a breach of any provision of this Debenture shall not
      operate as or be construed to be a waiver of any other breach of such provision
      or of any breach of any other provision of this Debenture. The failure of the
      Holder to insist upon strict adherence to any term of this Debenture on one
      or
      more occasions shall not be considered a waiver or deprive that party of the
      right thereafter to insist upon strict adherence to that term or any other
      term
      of this Debenture. Any waiver must be in writing.

    

    (14) If
      any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder shall violate applicable laws governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum permitted rate of interest. The Company covenants
      (to the extent that it may lawfully do so) that it shall not at any time insist
      upon, plead, or in any manner whatsoever claim or take the benefit or advantage
      of, any stay, extension or usury law or other law which would prohibit or
      forgive the Company from paying all or any portion of the principal of or
      interest on this Debenture as contemplated herein, wherever enacted, now or
      at
      any time hereafter in force, or which may affect the covenants or the
      performance of this indenture, and the Company (to the extent it may lawfully
      do
      so) hereby expressly waives all benefits or advantage of any such law, and
      covenants that it will not, by resort to any such law, hinder, delay or impeded
      the execution of any power herein granted to the Holder, but will suffer and
      permit the execution of every such as though no such law has been
      enacted.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (15) Whenever
      any payment or other obligation hereunder shall be due on a day other than
      a
      Business Day, such payment shall be made on the next succeeding Business
      Day.

    

    (16) THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
      DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

    

    (17) The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Debenture. In the event an ambiguity or question of intent or interpretation
      arises, this Debenture shall be construed as having been drafted jointly by
      the
      parties hereto and no presumption or burden of proof shall arise favoring or
      disfavoring any party by virtue of the authorship of any provision of this
      Debenture.

    

    (18) CERTAIN
      DEFINITIONS  For
      purposes of this Debenture, the following terms shall have the following
      meanings:

    

    (a) “Approved
      Stock Plan”
means
      a
      stock option plan that has been approved by the Board of Directors of the
      Company, pursuant to which the Company’s securities may be issued only to any
      employee, officer, or director for services provided to the
      Company.

    

    (b) “Bloomberg”
means
      Bloomberg Financial Markets.

    

    (c) “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions are
      authorized or required by law or other government action to close.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (d) “Change
      of Control Transaction”
means
      the occurrence of (a) an acquisition after the date hereof by an individual
      or
      legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
      Exchange Act) of effective control (whether through legal or beneficial
      ownership of capital stock of the Company, by contract or otherwise) of in
      excess of fifty percent (50%) of the voting securities of the Company (except
      that the acquisition of voting securities by the Holder or any other current
      holder of convertible securities of the Company shall not constitute a Change
      of
      Control Transaction for purposes hereof), (b) a replacement at one time or
      over
      time of more than one-half of the members of the board of directors of the
      Company which is not approved by a majority of those individuals who are members
      of the board of directors on the date hereof (or by those individuals who are
      serving as members of the board of directors on any date whose nomination to
      the
      board of directors was approved by a majority of the members of the board of
      directors who are members on the date hereof), (c) the merger, consolidation
      or
      sale of fifty percent (50%) or more of the assets of the Company or any
      subsidiary of the Company in one or a series of related transactions with or
      into another entity, or (d) the execution by the Company of an agreement to
      which the Company is a party or by which it is bound, providing for any of
      the
      events set forth above in (a), (b) or (c).

    

    (e) “Closing
      Bid Price”
means
      the price per share in the last reported trade of the Common Stock on a Primary
      Market or on the exchange which the Common Stock is then listed as quoted by
      Bloomberg.

    

    (f) “Convertible
      Securities”
means
      any
      stock
      or securities (other than Options) directly or indirectly convertible into
      or
      exercisable or exchangeable for Common Stock.

    

    (g) “Commission”
means
      the Securities and Exchange Commission.

    

    (h) “Common
      Stock”
means
      the common stock, par value $.001, of the Company and stock of any other class
      into which such shares may hereafter be changed or reclassified.

    

    (i) “Company
      Conversion Price”
means,
      the lower of (i) the applicable Conversion Price and (ii) that price which
      shall
      be computed as ninety five percent (95%) of the lowest daily Volume Weighted
      Average Price of the Common Stock during the thirty (30) consecutive Trading
      Days immediately preceding the applicable Installment Date. All such
      determinations to be appropriately adjusted for any stock split, stock dividend,
      stock combination or other similar transaction.

    

    (j) “Equity
      Conditions”
means
      that each of the following conditions is satisfied: (i) on each day during
      the
      period beginning two (2) weeks prior to the applicable date of determination
      and
      ending on and including the applicable date of determination (the “Equity
      Conditions Measuring Period”),
      either (x) the Underlying Shares Registration Statement filed pursuant to the
      Registration Rights Agreement shall be effective and available for the resale
      of
      all applicable shares of Common Stock to be issued in connection with the event
      requiring determination or (y) all applicable shares of Common Stock to be
      issued in connection with the event requiring determination shall be eligible
      for sale without restriction and without the need for registration under any
      applicable federal or state securities laws; (ii) on each day during the Equity
      Conditions Measuring Period, the Common Stock is designated for quotation on
      the
      Principal Market and shall not have been suspended from trading on such exchange
      or market nor shall delisting or suspension by such exchange or market been
      threatened or pending either (A) in writing by such exchange or market or (B)
      by
      falling below the then effective minimum listing maintenance requirements of
      such exchange or market; (iii) during the Equity Conditions Measuring Period,
      the Company shall have delivered Conversion Shares upon conversion of the
      Debentures to the Holder on a timely basis as set forth in Section 4(b)(ii)
      hereof; (iv) any applicable shares of Common Stock to be issued in connection
      with the event requiring determination may be issued in full without violating
      Section 4(c) hereof and the rules or regulations of the Primary Market; (v)
      during the Equity Conditions Measuring Period, there shall not have occurred
      either (A) an Event of Default or (B) an event that with the passage of time
      or
      giving of notice would constitute an Event of Default; and (vii) the Company
      shall have no knowledge of any fact that would cause (x) the Registration
      Statements required pursuant to the Registration Rights Agreement not to be
      effective and available for the resale of all applicable shares of Common Stock
      to be issued in connection with the event requiring determination or (y) any
      applicable shares of Common Stock to be issued in connection with the event
      requiring determination not to be eligible for sale without restriction and
      without the need for registration under any applicable federal or state
      securities laws.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (k) “Equity
      Conditions Failure”
means
      that on any applicable date the Equity Conditions have not been satisfied (or
      waived in writing by the Holder).

    

    (l) “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

    

    (m) “Excluded
      Securities”
means,
      (a) shares issued or deemed to have been issued by the Company pursuant to
      an
      Approved Stock Plan (b) shares of Common Stock issued or deemed to be issued
      by
      the Company upon the conversion, exchange or exercise of any right, option,
      obligation or security outstanding on the date prior to date of the Securities
      Purchase Agreement, provided that the terms of such right, option, obligation
      or
      security are not amended or otherwise modified on or after the date of the
      Securities Purchase Agreement, and provided that the conversion price, exchange
      price, exercise price or other purchase price is not reduced, adjusted or
      otherwise modified and the number of shares of Common Stock issued or issuable
      is not increased (whether by operation of, or in accordance with, the relevant
      governing documents or otherwise) on or after the date of the Securities
      Purchase Agreement, (c) shares issued in connection with any acquisition by
      the
      Company, whether through an acquisition of stock or a merger of any business,
      assets or technologies, leasing arrangement or any other transaction the primary
      purpose of which is not to raise equity capital, and (d) the shares of
      Common Stock issued or deemed to be issued by the Company upon conversion of
      this Debenture.

    

    (n) “Options”
      means
      any
      rights, warrants or options to subscribe for or purchase shares of Common Stock
      or Convertible Securities.

    

    (o) “Original
      Issue Date”
means
      the date of the first issuance of this Debenture regardless of the number of
      transfers and regardless of the number of instruments, which may be issued
      to
      evidence such Debenture.

    

    (p) “Person”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (q) “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

    

    (r) “Securities
      Purchase Agreement”
means
      the Securities Purchase Agreement dated as of the date hereof by and among
      the
      Company and the Buyers listed on Schedule I attached thereto. 

    

    (s) “Trading
      Day”
means
      a
      day on which the shares of Common Stock are quoted on the OTCBB or quoted or
      traded on such Primary Market on which the shares of Common Stock are then
      quoted or listed; provided, that in the event that the shares of Common Stock
      are not listed or quoted, then Trading Day shall mean a Business
      Day.

    

    (t) “Transaction
      Documents”
means
      the Securities Purchase Agreement, the Global Security Agreement, the Global
      Guaranty Agreement, the Global Pledge Agreement, the IP Security Agreement,
      in
      each case dated as of the date hereof, by and among the Holder, the Company
      and
      certain Subsidiaries of the Company party thereto from time to time, and any
      other agreement delivered in connection therewith, including, without
      limitation, the Security Documents, the Irrevocable Transfer Agent Instructions,
      and the Registration Rights Agreement (as those terms are defined in the
      Securities Purchase Agreement.

    

    (u) “Underlying
      Shares”
means
      the shares of Common Stock issuable upon conversion of this Debenture or as
      payment of interest in accordance with the terms hereof.

    

    (v) “Underlying
      Shares Registration Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement, covering among other things the resale of the Underlying
      Shares and naming the Holder as a “selling stockholder” thereunder.

    

    (w) “Volume
      Weighted Average Price”
means,
      for any security as of any date, the daily dollar volume-weighted average price
      for such security as reported by Bloomberg through its “Historical Price Table
      Screen (HP)” with “Market: Weighted Ave” function selected, or, if no dollar
      volume-weighted average price is reported for such security by Bloomberg, the
      average of the highest closing bid price and the lowest closing ask price of
      any
      of the market makers for such security as reported in the “pink sheets” by Pink
      Sheets LLC. 

    

    (x) “Warrants”
has
      the
      meaning ascribed to such term in the Securities Purchase Agreement, and shall
      include all warrants issued in exchange therefor or replacement
      thereof.

    

    [Signature
      Page Follows]

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Secured Convertible Debenture to be duly executed by
      a
      duly authorized officer as of the date set forth above.

     

    

      
        	 	
                COMPANY:

              	 
	 	
                MOBILEPRO
                  CORP.

              	 
	 	 	 	 	 
	 	
                By:

              	
                      
                  /s/ Jay Wright

              	 
	 	
                Name:

              	
                Jay
                  Wright

              	 
	 	
                Title:

              	
                Chairman
                  and CEO

              	 
	 	 	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

    CONVERSION
      NOTICE

     

    (To
      be executed by the Holder in order to Convert the
      Debenture)

     

    
      TO:
        

    

    The
      undersigned hereby irrevocably elects to convert $     
      of the
      principal amount of Debenture No. MOBL-5-2 into Shares of Common Stock of
MOBILEPRO
      CORP.,
      according to the conditions stated therein, as of the Conversion Date written
      below.

     

    
      	
              Conversion
                Date:

            	 	  

	
              Conversion
                Amount to be converted:

            	 	
              $        

            
	
              Conversion
                Price:

            	 	
              $        

            
	
              Number
                of shares of Common Stock to be issued:

            	 	 
	
              Amount
                of Debenture Unconverted:

            	 	
              $         

            
	 	 	
                

            
	 	 	 
	
              Please
                issue the shares of Common Stock in the following name and to the
                following address:

            
	
              Issue
                to:

            	 	 
	 	 	 
	
              Authorized
                Signature:

            	 	  

	
              Name:

            	 	  

	
              Title:

            	 	  

	
              Broker
                DTC Participant Code:

            	 	 
	
              Account
                Number:

            	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      2(a)(iii)

    

    Existing
      Defaults Under Other Agreements in Excess of $100,000

    

    

    

    
      	1.	
              [Company
                to Describe]GLOBAL
      SECURITY AGREEMENT

     

    THIS
      GLOBAL SECURITY AGREEMENT (the
      “Agreement”)
      is
      entered into as of June 30, 2008, by and among (i) MobilePro Corp., a Delaware
      corporation (“Company”)
      and
      (ii) each subsidiary and affiliate of the Company listed on Schedule
      1
      attached
      hereto (the “Subsidiaries,”
and
      collectively with the Company, the “Grantors”)
      in
      favor of YA Global Investments, L.P. f/k/a Cornell Capital Partners, L.P. (the
      “Secured
      Party”).

     

    WHEREAS,
      the
      Secured Party is the holder of (i) certain secured convertible debentures,
      issued pursuant to that certain Securities Purchase Agreement, dated as of
      June
      30, 2006 and that certain Securities Purchase Agreement, dated as of August
      28,
      2006, (collectively, the “Original
      Securities Purchase Agreement”),
      (ii)
      promissory notes, and (iii) other evidence of indebtedness issued by the Company
      to the Secured Party or to certain other parties that subsequently assigned
      their rights in such convertible debentures, promissory notes or other evidence
      of indebtedness to the Secured Party, including the secured convertible
      debentures and promissory notes listed on Schedule
      2
      attached
      hereto (as may be amended, supplemented and restated from time to time, the
      “Original
      Debentures”);

     

    WHEREAS,
      in
      connection with a certain Securities Purchase Agreement listed in Schedule
      3
      attached
      hereto (as amended, supplemented and restated from time to time, the
“Securities
      Purchase Agreement”),
      the
      Company has agreed, upon the terms and subject to the conditions of the
      Securities Purchase Agreement, to amend and restate the Original Securities
      Purchase Agreement and to amend and restate the Original Debentures and to
      issue
      to the Secured Party the Secured Convertible Debentures (the “Secured
      Convertible Debentures”);

     

    WHEREAS,
      the
      Secured Party and certain of the Grantors are parties to certain of the Prior
      Debt Documents (as defined below);

     

    WHEREAS,
      each
      of
      the Grantors has executed and delivered (i) a Global Guaranty Agreement, dated
      as of the date hereof, in favor of the Secured Party pursuant to which the
      Grantors absolutely and unconditionally guarantee to the Secured Party the
      payment and performance of all now existing and hereafter arising Obligations
      (the “Guaranty
      Agreement”),
      and
      (ii) an Intellectual Property Security Agreement, dated as of the date hereof
      (the “IP
      Security Agreement”);
      

     

    WHEREAS,
      certain
      Grantors have executed and delivered a Global Pledge Agreement, dated as of
      the
      date hereof (the “Pledge
      Agreement”);
      and
      certain Grantors with Real Estate have executed and delivered mortgages in
      favor
      of the Secured Party.

     

    WHEREAS,
      in
      connection with the financial accommodations to the Company and certain
      Subsidiaries by the Secured Party under the Secured Convertible Debentures
      or
      otherwise, the Subsidiaries will directly benefit from the extension of such
      financial accommodations as part of the affiliated business operations of the
      Company and the Subsidiaries.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    NOW,
      THEREFORE, in
      consideration of the promises and the mutual covenants herein contained, and
      for
      other good and valuable consideration, the adequacy and receipt of which are
      hereby acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
      1.

     

    DEFINITIONS
      AND INTERPRETATIONS

     

    1.1 Recitals.

     

    The
      above
      recitals are true and correct and are incorporated herein, in their entirety,
      by
      this reference.

     

    1.2 Interpretations.

     

    Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      any
      person other than the Secured Party any right, remedy or claim under or by
      reason hereof.

     

    1.3 Definitions.

     

    (a) To
      the
      extent used in this Agreement and not defined herein, terms defined in the
      UCC
      shall have the meanings (such meanings to be equally applicable to both the
      singular and plural forms of the terms defined) ascribed to such terms in the
      UCC. To the extent the definition of any category or type of Collateral is
      expanded by any amendment, modification or revision to the UCC, such expanded
      definition will apply automatically as of the date of such amendment,
      modification or revision.

     

    (b) As
      used
      in this Agreement, the following terms shall have the meanings indicated below
      (such meanings to be equally applicable to both the singular and plural forms
      of
      such terms):

     

    “Collateral”
has
      the
      meaning set forth in Section
      2.1.

     

    “Deposit
      Account”
has
      the
      meaning set forth in Section
      6.16.

     

    “Event
      of Default”
shall
      mean a Grantor defaulting in any of its obligations under (i) this Agreement,
      and (ii) any other Transaction Document.

     

    “GAAP”
shall
      mean generally accepted accounting principles in the United States of
      America.

     

    “Guaranty
      Agreement”
has
      the
      meaning set forth in the recitals hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Intellectual
      Property”
shall
      mean all present and future trade secrets, know-how and other proprietary
      information; trademarks, trademark applications, internet domain names, service
      marks, trade dress, trade names, business names, designs, logos, slogans (and
      all translations, adaptations, derivations and combinations of the foregoing)
      indicia and other source and/or business identifiers, and all registrations
      or
      applications for registrations which have heretofore been or may hereafter
      be
      issued thereon throughout the world; copyrights and copyright applications;
      (including copyrights for computer programs) and all tangible and intangible
      property embodying the copyrights, unpatented inventions (whether or not
      patentable); patents and patent applications; industrial design applications
      and
      registered industrial designs; license agreements related to any of the
      foregoing and income therefrom; books, records, writings, computer tapes or
      disks, flow diagrams, specification sheets, computer software, source codes,
      object codes, executable code, data, databases and other physical
      manifestations, embodiments or incorporations of any of the foregoing; all
      other
      intellectual property; and all common law and other rights throughout the world
      in and to all of the foregoing. Schedule
      4
      attached
      hereto sets forth all Intellectual Property of the Grantors (as
      such
      Schedule may be amended, modified or supplemented from time to time).

     

    “IP
      Security Agreement”
has
      the
      meaning set forth in the recitals hereof.

     

    “Lien”
has
      the
      meaning set forth in Section
      4.2.

     

    “Material
      Adverse Effect”
shall
      mean any material and adverse affect as determined by the Secured Party in
      its
      reasonable discretion upon (a) the Grantors’ assets, business, operations,
      properties or condition, financial or otherwise; (b) the Grantors’ ability to
      make payment as and when due of all or any part of the Obligations; or (c)
      the
      Collateral.

     

    “Obligations”
shall
      mean and include any and all debts, liabilities, obligations, covenants and
      duties owing by any Grantor to the Secured Party, now existing or hereafter
      arising of every nature, type, and description, whether liquidated,
      unliquidated, primary, secondary, secured, unsecured, direct, indirect,
      absolute, or contingent, and whether or not evidenced by a note, guaranty or
      other instrument, and any amendments, extensions, renewals or increases thereof,
      including, without limitation, all those under (i) the Transaction Documents;
      (ii) any agreement or document related to the Transaction Documents; or (iii)
      any other or related documents, and including any interest accruing thereon
      after insolvency, reorganization or like proceeding relating to the Grantors,
      whether or not a claim for post-petition interest is allowed in such proceeding,
      and all costs and expenses of the Secured Party incurred in the enforcement,
      collection or otherwise in connection with any of the foregoing, including,
      but
      not limited to, reasonable attorneys’ fees and expenses and all obligations of
      the Grantors to the Secured Party to perform acts or refrain from taking any
      action.

     

    “Permitted
      Indebtedness”
shall
      mean: (i) indebtedness evidenced by the Secured Convertible Debentures; (ii)
      indebtedness described on the Disclosure Schedules to the Securities Purchase
      Agreement; (iii) indebtedness incurred solely for the purpose of financing
      the
      acquisition or lease of any equipment by the Grantors, including capital lease
      obligations with no recourse other than to such equipment; (iv) indebtedness,
      the repayment of which (A) has been subordinated to the payment of the
      Obligations on terms and conditions acceptable to the Secured Party, including
      with regard to interest payments and repayment of principal, (B) does not mature
      or otherwise require or permit redemption or repayment prior to or on the 91st
      day after the maturity date of any Secured Convertible Debenture then
      outstanding; and (C) is not secured by any assets of the Grantors; (v)
      indebtedness solely between a Grantor and/or one of its domestic subsidiaries,
      on the one hand, and a Grantor and/or one of its domestic subsidiaries, on
      the
      other which indebtedness is not secured by any assets of such Grantor or any
      of
      its subsidiaries, provided
      that
      (A) in
      each case a majority of the equity of any such domestic subsidiary is directly
      or indirectly owned by a Grantor, such domestic subsidiary is controlled by
      a
      Grantor and such domestic subsidiary has executed a security agreement in the
      form of this Agreement and (B) any such loan shall be evidenced by an
      intercompany note that is pledged by such Grantor or its subsidiary, as
      applicable, as collateral pursuant to this Agreement; (vi) reimbursement
      obligations in respect of letters of credit issued for the account of a Grantor
      or any of its subsidiaries for the purpose of securing performance obligations
      of such Grantor or its subsidiaries incurred in the ordinary course of business
      so long as the aggregate face amount of all such letters of credit does not
      exceed $500,000 at any one time; and (vii) renewals, extensions and refinancing
      of any indebtedness described in clause (i) or (iii) of this
      subsection.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Permitted
      Liens”
shall
      mean (1) the security interest created by this Agreement, (2) any prior security
      interest granted to the Secured Party, (3) existing Liens disclosed by each
      Grantor on Schedule
      4.2;
      (4)
      inchoate Liens for taxes, assessments or governmental charges or levies not
      yet
      due, as to which the grace period, if any, related thereto has not yet expired,
      or being contested in good faith and by appropriate proceedings for which
      adequate reserves have been established in accordance with GAAP; (5) Liens
      of
      carriers, materialmen, warehousemen, mechanics and landlords and other similar
      Liens which secure amounts which are not yet overdue by more than 60 days or
      which are being contested in good faith by appropriate proceedings for which
      adequate reserves have been established in accordance with GAAP; (6)
      non-exclusive licenses and sublicenses, or leases or subleases granted to other
      persons not materially interfering with the conduct of the business of the
      Grantors; (7) Liens securing capitalized lease obligations and purchase money
      indebtedness incurred solely for the purpose of financing an acquisition or
      lease; (8) easements, rights-of-way, restrictions, encroachments, municipal
      zoning ordinances and other similar charges or encumbrances, and minor title
      deficiencies, in each case not securing debt and not materially interfering
      with
      the conduct of the business of the Grantors and not materially detracting from
      the value of the property subject thereto; (9) Liens arising out of the
      existence of judgments or awards which judgments or awards do not constitute
      an
      Event of Default; (10) Liens incurred in the ordinary course of business in
      connection with workers compensation claims, unemployment insurance, pension
      liabilities and social security benefits and Liens securing the performance
      of
      bids, tenders, leases and contracts in the ordinary course of business,
      statutory obligations, surety bonds, performance bonds and other obligations
      of
      a like nature (other than appeal bonds) incurred in the ordinary course of
      business (exclusive of obligations in respect of the payment for borrowed
      money); (11) Liens in favor of a banking institution arising by operation of
      law
      encumbering deposits (including the right of set-off) and contractual set-off
      rights held by such banking institution and which are within the general
      parameters customary in the banking industry and only burdening deposit accounts
      or other funds maintained with a creditor depository institution; (12) usual
      and
      customary set-off rights in leases and other contracts; and (13) escrows in
      connection with acquisitions and dispositions.

     

    “Pledge
      Agreement”
has
      the
      meaning set forth in the recitals hereof.

     

    “Prior
      Debt Documents”
means
      the Original Debentures and the Original Securities Purchase Agreements, and
      any
      other existing security agreements, guaranty agreements, pledge agreements
      credit agreement or other facility, mortgage, other debenture agreements or
      instruments, by and among the Secured Party and any of the Grantors, under
      which
      there may be issued, or by which there may be secured or evidenced any
      indebtedness for borrowed money or evidencing any outstanding obligation of
      any
      Grantor to the Secured Party, and any other existing documents executed in
      connection with any of the foregoing.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Real
      Estate”
means
      all leases and all land, together with the buildings, structures, parking areas,
      and other improvements thereon, now or hereafter owned by any Grantor, including
      all easements, rights-of-way, and similar rights relating thereto and all
      leases, tenancies, and occupancies thereof. Schedule
      5
      attached
      hereto sets forth all Real Estate of the Grantors (as
      such
      Schedule may be amended, modified or supplemented from time to
      time).

     

    “Transaction
      Documents”
shall
      mean (i) this Agreement, (ii) the Secured Convertible Debentures, (iii) the
      Securities Purchase Agreement, (iv), the Guaranty Agreement, (v) the Pledge
      Agreement, (vi) the IP Security Agreement, (vi) the Prior Debt Documents, (vii)
      any other mortgages, pledges, or other collateral documents and any UCC-1
      Financing Statement required by the Secured Party, and (viii) any amendment,
      amendment and restatement, modification or supplement to any of the
      foregoing.

     

    “UCC”
or
      “Uniform
      Commercial Code”
means
      the
      Uniform Commercial Code as in effect from time to time in the State of New
      Jersey; provided,
      however,
      that if
      a term is defined in Article 9 of the Uniform Commercial Code differently than
      in another Article thereof, the term shall have the meaning set forth in Article
      9 of the UCC; provided further
      that, if
      by reason of mandatory provisions of law, perfection, or the effect of
      perfection or non-perfection, of a security interest in any Collateral or the
      availability of any remedy hereunder is governed by the Uniform Commercial
      Code
      as in effect in a jurisdiction other than New Jersey, “Uniform Commercial Code”
means the Uniform Commercial Code as in effect in such other jurisdiction for
      purposes of the provisions hereof relating to such perfection or effect of
      perfection or non-perfection or availability of such remedy, as the case may
      be. 

     

    ARTICLE
      2.

     

    SECURITY
      INTEREST

     

    2.1 Grant
      of Security Interest.

     

    (a) As
      security for the payment or performance in full of the Obligations, each Grantor
      hereby pledges to the Secured Party, its successors and assigns, and hereby
      grants to the Secured Party, its successors and assigns, a security interest
      in
      and to all assets and personal property of each Grantor, wherever located and
      whether now or hereinafter existing and whether now owned or hereafter acquired,
      of every kind and description, tangible or intangible, including without
      limitation, all Real Estate, Goods, Inventory, Equipment, Fixtures, Instruments,
      Documents, Accounts, Contracts and Contract Rights, Chattel Paper, Deposit
      Accounts, Money, Letters of Credit and Letter-of-Credit Rights, Commercial
      Tort
      Claims, Securities and all other Investment Property, General Intangibles,
      Farm
      Products, all books and records and information relating to any of the
      foregoing, all supporting obligations, and any and all Proceeds and products
      of
      any and all of the foregoing, and as more particularly described on Exhibit
      A
      attached
      hereto (collectively, the Collateral);
      and

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b) Simultaneously
      with the execution and delivery of this Agreement, each Grantor shall make,
      execute, acknowledge, file, record and deliver to the Secured Party such
      documents, instruments, and agreements, including, without limitation, financing
      statements, mortgages, certificates, affidavits and forms as may, in the Secured
      Party’s reasonable judgment, be necessary to effectuate, complete or perfect, or
      to continue and preserve, the security interest of the Secured Party in the
      Collateral.

     

    2.2 No
      Assumption of Liability.

     

    The
      security interest in the Collateral is granted as security only and shall not
      subject the Secured Party to, or in any way alter or modify any obligation
      or
      liability of, any Grantor with respect to or arising out of the
      Collateral.

     

    ARTICLE
      3.

     

    ATTORNEY-IN-FACT;
      PERFORMANCE

     

    3.1 Secured
      Party Appointed Attorney-In-Fact.

     

    Each
      Grantor hereby appoints the Secured Party as its attorney-in-fact, with full
      authority in the place and stead of such Grantor and in the name of each Grantor
      or otherwise, from time to time in the Secured Party’s discretion to take any
      action and to execute any instrument which the Secured Party may reasonably
      deem
      necessary to accomplish the purposes of this Agreement or for the purpose of
      perfecting, confirming, continuing , enforcing or protecting the security
      interest in the Collateral, including, without limitation, to (a) file one
      or
      more financing statements, continuing statements, filings with the United States
      Patent and Trademark Office or United States Copyright Office (or any successor
      office) or other documents; (b) receive and collect all instruments made payable
      to a Grantor representing any payments in respect of the Collateral or any
      part
      thereof and to give full discharge for the same; and (c) demand, collect,
      receipt for, settle, compromise, adjust, sue for, foreclose, or realize on
      the
      Collateral as and when the Secured Party may determine. To facilitate
      collection, the Secured Party may notify account debtors and obligors on any
      Collateral to make payments directly to the Secured Party. The foregoing power
      of attorney is a power coupled with an interest and shall be irrevocable until
      all Obligations are paid and performed in full. The Grantors agree that the
      powers conferred on the Secured Party hereunder are solely to protect the
      Secured Party’s interests in the Collateral and shall not impose any duty upon
      the Secured Party to exercise any such powers.

     

    3.2 Secured
      Party May Perform.

     

    If
      a
      Grantor fails to perform any agreement contained herein, the Secured Party,
      at
      its option, may itself perform, or cause performance of, such agreement, and
      the
      expenses of the Secured Party incurred in connection therewith shall be included
      in the Obligations secured hereby and payable by the Grantors under Section
      8.4.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ARTICLE
      4.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    4.1 Authorization:
      Enforceability.

     

    Each
      of
      the parties hereto represents and warrants that it has taken all action
      necessary to authorize the execution, delivery and performance of this Agreement
      and the transactions contemplated hereby; and upon execution and delivery,
      this
      Agreement shall constitute a valid and binding obligation of the respective
      party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
      and similar laws affecting creditors’ rights or by the principles governing the
      availability of equitable remedies.

     

    4.2 Ownership
      of Collateral; Priority of Security Interest.

     

    Each
      Grantor represents and warrants that it is the legal and beneficial owner of
      the
      Collateral free and clear of any lien, security interest, option or other charge
      or encumbrance (each, a “Lien”)
      except
      for the Permitted Liens. Except for the Permitted Liens, (i) the security
      interest granted to the Secured Party hereunder shall be a first priority
      security interest subject to no other Liens, and (ii) no financing statement
      covering any of the Collateral or any proceeds thereof is on file in any public
      office. 

     

    4.3 Location
      of Collateral.
      

     

    The
      Collateral is or will be kept at the address(es) of each Grantor set forth
      on
Schedule
      4.3
      attached
      hereto. Unless otherwise provided herein, the Grantors will not remove any
      Collateral from such locations without the prior written consent of the Secured
      Party.

     

    4.4 Location,
      State of Incorporation and Name of Grantors.

     

    Each
      Grantor’s principal place of business; state of incorporation, organization or
      formation, organizational identification, and exact legal name is set forth
      on
Schedule
      4.4
      attached
      hereto. 

     

    4.5 Solvency.
      

     

    Each
      of
      the Grantors is able to pay its debts as they mature, has capital sufficient
      to
      carry on its business, and the fair present saleable value of its assets,
      calculated on a going concern basis, is in excess of the amount of its
      liabilities.

     

    ARTICLE
      5.

     

    DEFAULT;
      REMEDIES; SUBSTITUTE COLLATERAL

     

    5.1 Method
      of Realizing Upon the Collateral: Other Remedies.

     

    If
      any
      Event of Default shall have occurred and be continuing:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (a) The
      Secured Party may exercise in respect of the Collateral, in addition to any
      other rights and remedies provided for herein or otherwise available to it,
      all
      of the rights and remedies of a secured party upon default under the UCC
      (whether or not the UCC applies to the affected Collateral), and also may (i)
      take absolute control of the Collateral, including, without limitation, transfer
      into the Secured Party’s name or into the name of its nominee or nominees (to
      the extent the Secured Party has not theretofore done so) and thereafter
      receive, for the benefit of the Secured Party, all payments made thereon, give
      all consents, waivers and ratifications in respect thereof and otherwise act
      with respect thereto as though it were the outright owner thereof, (ii) require
      each Grantor to assemble all or part of the Collateral as directed by the
      Secured Party and make it available to the Secured Party at a place or places
      to
      be designated by the Secured Party that is reasonably convenient to both
      parties, and the Secured Party may enter into and occupy any premises owned
      or
      leased by a Grantor where the Collateral or any part thereof is located or
      assembled for a reasonable period in order to effectuate the Secured Party’s
      rights and remedies hereunder or under law, without obligation to such Grantor
      in respect of such occupation, and (iii) without notice except as specified
      below and without any obligation to prepare or process the Collateral for sale,
      (A) sell the Collateral or any part thereof in one or more parcels at public
      or
      private sale, at any of the Secured Party’s offices or elsewhere, for cash, on
      credit or for future delivery, and at such price or prices and upon such other
      terms as the Secured Party may deem commercially reasonable and/or (B) lease,
      license or dispose of the Collateral or any part thereof upon such terms as
      the
      Secured Party may deem commercially reasonable. Each Grantor agrees that, to
      the
      extent notice of sale or any other disposition of the Collateral shall be
      required by law, at least ten (10) days’ notice to such Grantor of the time and
      place of any public sale or the time after which any private sale or other
      disposition of the Collateral is to be made shall constitute reasonable
      notification. The Secured Party shall not be obligated to make any sale or
      other
      disposition of any Collateral regardless of notice of sale having been given.
      The Secured Party may adjourn any public or private sale from time to time
      by
      announcement at the time and place fixed therefor, and such sale may, without
      further notice, be made at the time and place to which it was so adjourned.
      Each
      Grantor hereby waives any claims against the Secured Party arising by reason
      of
      the fact that the price at which the Collateral may have been sold at a private
      sale was less than the price which might have been obtained at a public sale
      or
      was less than the aggregate amount of the Obligations, even if the Secured
      Party
      accepts the first offer received and does not offer such Collateral to more
      than
      one offeree, and waives all rights that such Grantor may have to require that
      all or any part of such Collateral be marshaled upon any sale (public or
      private) thereof. Each Grantor hereby acknowledges that (i) any such sale of
      the
      Collateral by the Secured Party may be made without warranty, (ii) the Secured
      Party may specifically disclaim any warranties of title, possession, quiet
      enjoyment or the like, and (iii) such actions set forth in clauses (i) and
      (ii)
      above shall not adversely affect the commercial reasonableness of any such
      sale
      of Collateral.

     

    (b) Any
      cash
      held by the Secured Party as Collateral and all cash proceeds received by the
      Secured Party in respect of any sale of or collection from, or other realization
      upon, all or any part of the Collateral shall be applied (after payment of
      any
      amounts payable to the Secured Party pursuant to Section
      8.4
      hereof)
      by the Secured Party against, all or any part of the Obligations in such order
      as the Secured Party shall elect, consistent with the provisions of the
      Securities Purchase Agreement. Any surplus of such cash or cash proceeds held
      by
      the Secured Party and remaining after the indefeasible payment in full in cash
      of all of the Obligations shall be paid over to whomsoever shall be lawfully
      entitled to receive the same or as a court of competent jurisdiction shall
      direct.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (c) In
      the
      event that the proceeds of any such sale, collection or realization are
      insufficient to pay all amounts to which the Secured Party is legally entitled,
      the Grantors shall be liable for the deficiency, together with interest thereon
      at the rate specified in the Secured Convertible Debentures for interest on
      overdue principal thereof or such other rate as shall be fixed by applicable
      law, together with the costs of collection and the reasonable fees, costs,
      expenses and other client charges of any attorneys employed by the Secured
      Party
      to collect such deficiency.

     

    (d) Each
      Grantor hereby acknowledges that if the Secured Party complies with any
      applicable state or federal law requirements in connection with a disposition
      of
      the Collateral, such compliance will not adversely affect the commercial
      reasonableness of any sale or other disposition of the Collateral.

     

    (e) The
      Secured Party shall not be required to marshal any present or future collateral
      security (including, but not limited to, this Agreement and the Collateral)
      for,
      or other assurances of payment of, the Obligations or any of them or to resort
      to such collateral security or other assurances of payment in any particular
      order, and all of the Secured Party’s rights hereunder and in respect of such
      collateral security and other assurances of payment shall be cumulative and
      in
      addition to all other rights, however existing or arising. To the extent
      permitted by applicable law, each Grantor hereby agrees that it will not invoke
      any law relating to the marshaling of collateral which might cause delay in
      or
      impede the enforcement of the Secured Party’s rights under this Agreement or
      under any other instrument creating or evidencing any of the Obligations or
      under which any of the Obligations is outstanding or by which any of the
      Obligations is secured or payment thereof is otherwise assured, and, to the
      extent permitted by applicable law, each Grantor hereby irrevocably waives
      the
      benefits of all such laws.

     

    5.2 Section
      5.2 Duties
      Regarding Collateral.

     

    The
      Secured Party shall have no duty as to the collection or protection of the
      Collateral or any income thereon or as to the preservation of any rights
      pertaining thereto, beyond the safe custody and reasonable care of any of the
      Collateral actually in the Secured Party’s possession.

     

    ARTICLE
      6.

     

    AFFIRMATIVE
      COVENANTS

     

    So
      long
      as any of the Obligations shall remain outstanding, unless the Secured Party
      shall otherwise consent in writing:

     

    6.1 Existence,
      Properties, Etc.

     

    Each
      Grantor shall do, or cause to be done, all things, or proceed with due diligence
      with any actions or courses of action, that may be reasonably necessary (i)
      to
      maintain such Grantor’s due organization, valid existence and good standing
      under the laws of its state of incorporation, and (ii) to preserve and keep
      in
      full force and effect all qualifications, licenses and registrations in those
      jurisdictions in which the failure to do so could have a Material Adverse
      Effect; and (b) a Grantor shall not do, or cause to be done, any act impairing
      the Grantor’s corporate power or authority (i) to carry on such Grantor’s
      business as now conducted, and (ii) to execute or deliver this Agreement or
      any
      other agreement or document delivered in connection herewith, including, without
      limitation, each of the other Transaction Documents, as applicable, to which
      it
      is or will be a party, or perform any of its obligations hereunder or
      thereunder. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.2 Financial
      Statements and Reports.

     

    Each
      Grantor shall furnish to the Secured Party within a reasonable time such
      financial data as the Secured Party may reasonably request.

     

    6.3 Accounts
      and Reports.

     

    Each
      Grantor shall maintain a standard system of accounting in accordance with GAAP
      and provide, at its sole expense, to the Secured Party the
      following:

     

    (a) as
      soon
      as available, a copy of any notice or other communication alleging any
      nonpayment or other material breach or default, or any foreclosure or other
      action respecting any material portion of its assets and properties, received
      respecting any of the indebtedness of such Grantor in excess of $250,000 (other
      than the Obligations), or any demand or other request for payment under any
      guaranty, assumption, purchase agreement or similar agreement or arrangement
      respecting the indebtedness or obligations of others in excess of $250,000;
      and

     

    (b) within
      fifteen (15) days
      after the making of each submission or filing, a copy of any report, financial
      statement, notice or other document, whether periodic or otherwise, submitted
      to
      the shareholders of the Grantors, or submitted to or filed by the Grantors
      with
      any governmental authority involving or affecting (i) the Grantors that could
      reasonably be expected to have a Material Adverse Effect; (ii) the Obligations;
      (iii) any part of the Collateral; or (iv) any of the transactions contemplated
      in this Agreement or any other Transaction Document.

     

    6.4 Maintenance
      of Books and Records: Inspection.

     

    Each
      Grantor shall maintain its books, accounts and records in accordance with GAAP,
      and permit the Secured Party, its officers and employees and any professionals
      designated by the Secured Party in writing, at any time during normal business
      hours and upon reasonable notice to visit and inspect any of its properties
      (including but not limited to the collateral security described in any of the
      Transaction Documents), corporate books and financial records, and to discuss
      its accounts, affairs and finances with any employee, officer or director
      thereof (it being agreed that, unless an Event of Default shall have occurred
      and be continuing, there shall be no more than two (2) such visits and
      inspections in any fiscal year).

     

    6.5 Maintenance
      and Insurance.

     

    (a) Each
      Grantor shall maintain or cause to be maintained, at its own expense, all of
      its
      material assets and properties in good working order and condition, ordinary
      wear and tear excepted, making all necessary repairs thereto and renewals and
      replacements thereof.

     

    (b) The
      Grantors shall maintain or cause to be maintained, at their own expense,
      insurance in form, substance and amounts (including deductibles), which the
      Grantors deem reasonably necessary to the Grantors’ business, (i) adequate to
      insure all assets and properties of the Grantors of a character usually insured
      by persons engaged in the same or similar business against loss or damage
      resulting from fire or other risks included in an extended coverage policy;
      (ii)
      against public liability and other tort claims that may be incurred by the
      Grantors; (iii) as may be required by the Transaction Documents and/or
      applicable law and (iv) as may be reasonably requested by Secured Party, all
      with financially sound and reputable insurers.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    6.6 Contracts
      and Other Collateral.

     

    Each
      Grantor shall perform all of its obligations under or with respect to each
      instrument, receivable, contract and other intangible included in the Collateral
      to which such Grantor is now or hereafter will be party on a timely basis and
      in
      the manner therein required, including, without limitation, this Agreement,
      except to the extent the failure to so perform such obligations would not
      reasonably be expected to have a Material Adverse Effect.

     

    6.7 Defense
      of Collateral, Etc.

     

    Each
      Grantor shall defend and enforce (a) its right, title and interest in and to
      any
      part of the Collateral; and (b) if not included within the Collateral, those
      assets and properties whose loss would reasonably be expected to have a Material
      Adverse Effect, each against all manner of claims and demands on a timely basis
      to the full extent permitted by applicable law (other than any such claims
      and
      demands by holders of Permitted Liens).

     

    6.8 Taxes
      and Assessments.

     

    Each
      Grantor shall (a) file all material tax returns and appropriate schedules
      thereto that are required to be filed under applicable law, prior to the date
      of
      delinquency (taking into account any extensions of the original due date),
      (b)
      pay and discharge all material taxes, assessments and governmental charges
      or
      levies imposed upon a Grantor, upon its income and profits or upon any
      properties belonging to it, prior to the date on which penalties attach thereto,
      and (c) pay all material taxes, assessments and governmental charges or levies
      that, if unpaid, might become a lien or charge upon any of its properties;
      provided,
      however,
      that
      the
      Grantors in good faith may contest any such tax, assessment, governmental charge
      or levy described in the foregoing clauses (b) and (c) so long as appropriate
      reserves are maintained with respect thereto if and to the extent required
      by
      GAAP.

     

    6.9 Compliance
      with Law and Other Agreements.

     

    Each
      Grantor shall maintain its business operations and property owned or used in
      connection therewith in compliance with (a) all applicable federal, state and
      local laws, regulations and ordinances governing such business operations and
      the use and ownership of such property, and (b) all agreements, licenses,
      franchises, indentures and mortgages to which a Grantor is a party or by which
      such Grantor or any of its properties is bound, except where the failure to
      so
      comply would not reasonably be expected to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    6.10 Notice
      of Default.

     

    The
      Grantors will immediately notify the Secured Party of any event causing a
      substantial loss or diminution in the value of all or any material part of
      the
      Collateral and the amount or an estimate of the amount of such loss or
      diminution. The Grantors shall promptly notify the Secured Party of any
      condition or event which constitutes, or would constitute with the passage
      of
      time or giving of notice or both, an Event of Default, and promptly inform
      the
      Secured Party of any events or changes in the financial condition of any Grantor
      occurring since the date of the last financial statement of such Grantor
      delivered to the Secured Party, which individually or cumulatively when viewed
      in light of prior financial statements, which might reasonably be expected
      to
      have a Material Adverse Effect on the business operations or financial condition
      of the Grantors.

     

    6.11 Notice
      of Litigation.

     

    Each
      Grantor shall give notice, in writing, to the Secured Party of (a) any actions,
      suits or proceedings wherein the amount at issue is in excess of $250,000,
      instituted by any persons against a Grantor, or affecting any of the assets
      of
      such Grantor, and (b) any dispute, not resolved within fifteen (15) days
      of
      the commencement thereof, between a Grantor on the one hand and any governmental
      or regulatory body on the other hand, which might reasonably be expected to
      have
      a Material Adverse Effect on the business operations or financial condition
      of
      such Grantor.

     

    6.12 Future
      Subsidiaries.

     

    Schedule
      6.12
      attached
      hereto has all the subsidiaries of the Grantors. If any Grantor shall hereafter
      create or acquire any subsidiary, simultaneously with the creation or
      acquisition of such subsidiary, such Grantor shall cause such subsidiary to
      become a party to this Agreement as an additional “Grantor” hereunder, and to
      duly execute and deliver a guaranty of the Obligations in favor of the Secured
      Party in form and substance reasonably acceptable to the Secured Party, and
      to
      duly execute and/or deliver such other documents, in form and substance
      reasonably acceptable to the Secured Party, as the Secured Party shall
      reasonably request with respect thereto, including, without limitation, a
      mortgage to the extent such subsidiary owns any Real Estate.

     

    6.13 Changes
      to Identity.

     

    Each
      Grantor will (a) give the Secured Party at least thirty (30) days’ prior written
      notice of any change in such Grantor’s name, identity or organizational
      structure, (b) maintain its jurisdiction of incorporation, organization or
      formation as set forth on Schedule
      4.4
      attached
      hereto, (c) immediately notify the Secured Party upon obtaining an
      organizational identification number, if on the date hereof such Grantor did
      not
      have such identification number.

     

    6.14 Perfection
      of Security Interests.

     

    (a) Financing
      Statements.
      The
      Grantors hereby irrevocably authorize the Secured Party, at the sole cost and
      expense of the Grantors, at any time and from time to time to file in any filing
      office in any jurisdiction any initial financing statements and amendments
      thereto that (a) indicate the Collateral (i) as “all assets of the debtor,
      whether now owned or hereafter acquired” or words of similar effect, regardless
      of whether any particular asset comprised in the Collateral falls within the
      scope of Article 9 of the UCC of such jurisdiction, or (ii) as being of an
      equal
      or lesser scope or with greater detail, and (b) contain any other information
      required by Part 5 of Article 9 of the UCC for the sufficiency or filing office
      acceptance of any financing statement or amendment, including (i) whether such
      Grantor is an organization, the type of organization and any organization
      identification number issued to such Grantor, and (ii) in the case of a
      financing statement filed as a fixture filing, a sufficient description of
      real
      property to which the Collateral relates. The Grantors agree to furnish any
      such
      information to the Secured Party promptly upon request. The Grantors also ratify
      their authorization for the Secured Party to have filed in any jurisdiction
      any
      initial financing statements or amendments thereto if filed prior to the date
      hereof. The Grantors acknowledge that they are not authorized to file any
      financing statement or amendment or termination statement with respect to any
      financing statement without the prior written consent of the Secured Party
      and
      agree that they will not do so without the prior written consent of the Secured
      Party. The Grantors acknowledge and agree that this Agreement constitutes an
      authenticated record.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (b) Possession.
      The
      Grantors (i) shall have possession of the Collateral, except where expressly
      otherwise provided in this Agreement or where the Secured Party chooses to
      perfect its security interest by possession in addition to the filing of a
      financing statement; and (ii) will, where the Collateral is in the possession
      of
      a third party, join with the Secured Party in notifying the third party of
      the
      Secured Party’s security interest and obtaining an acknowledgment from the third
      party that it is holding the Collateral for the benefit of the Secured
      Party.

     

    (c) Control.
      In
      addition to the provisions set forth in Section
      6.16,
      the
      Grantors will cooperate with the Secured Party in obtaining control with respect
      to the Collateral consisting of (i) Investment Property, (ii) Letters-of-Credit
      and Letter-of-Credit Rights and (iii) electronic Chattel Paper.

     

    (d) Marking
      of Chattel Paper.
      The
      Grantors will not create any Chattel Paper without placing a legend on the
      Chattel Paper acceptable to the Secured Party indicating that the Secured Party
      has a security interest in the Chattel Paper.

     

    6.15 Notice
      of Commercial Tort Claims.
      Attached as Schedule
      6.15
      is a
      list of all Commercial Tort Claims of the Grantors (as
      such
      Schedule may be amended, modified or supplemented from time to time).
      If any
      Grantor shall at any time acquire a Commercial Tort Claim, such Grantor shall
      immediately notify the Secured Party in a writing signed by such Grantor which
      shall (a) provide brief details of said claim and (b) grant to the Secured
      Party
      a security interest in said claim and in the proceeds thereof, all upon the
      terms of this Agreement, in such form and substance satisfactory to the Secured
      Party.

     

    6.16 Establishment
      of Deposit Account, Account
      Control Agreements.

     

    (a) Except
      as
      otherwise provided in this Section 6.16, in connection with the execution of
      this Agreement, except as set forth on Schedule
      6.16(a)
      attached
      hereto, each Grantor, the Secured Party, and each applicable bank or other
      depository institution shall enter into an account control agreement (the
“Account
      Control Agreement”)
      in the
      form of Exhibit
      B
      attached
      hereto, or such other form reasonably acceptable to Secured Party, with respect
      to each of the Grantor’s deposit accounts, including, without limitation, all
      savings, passbook, money market or other depository accounts, and all
      certificates of deposit, maintained by each Grantor with any bank, savings
      and
      loan association, credit union or other depository institution maintained or
      used by each Grantor (the “Deposit
      Accounts”)
      providing dominion and control over such accounts to the Secured Party such
      that
      upon notice by the Secured Party to such bank or other depository institution
      of
      the occurrence of an Event of Default all actions under such account shall
      be
      taken solely at the Secured Party’s direction. Each Grantor’s current Deposit
      Accounts are set forth on Schedule
      6.16 (b)
      attached
      hereto. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (b) Each
      Grantor shall cause all cash, all collections and proceeds from accounts
      receivable, all receipts from credit card payments, and all proceeds from the
      sale of any Collateral to be deposited only into its Deposit Accounts in the
      ordinary course of business and consistent with past practices.

     

    (c) With
      respect to each Deposit Account, from an after the occurrence of an Event of
      Default, the Secured Party shall have the right, at any time and from time
      to
      time, to exercise its rights under such Account Control Agreement, including,
      for the avoidance of any doubt, the exclusive right to give instructions to
      the
      financial institution at which such Deposit Account is maintained as to the
      disposition of funds or other property on deposit therein or credited thereto.
      The Secured Party hereby covenants and agrees that it will not send any such
      notice to a financial institution at which any such Deposit Account is
      maintained directing the disposition of funds or other property therein unless
      and until the occurrence of an Event of Default. 

     

    (d) In
      connection with the foregoing, each Grantor hereby authorizes and directs each
      bank or other depository institution which maintains any Deposit Account to
      pay
      or deliver to the Secured Party upon the Secured Party’s written demand thereof
      made at any time after the occurrence of an Event of Default has occurred all
      balances in each Deposit Account with such depository for application to the
      Obligations then outstanding.

     

    (e) Notwithstanding
      the foregoing, Grantors are authorized to maintain the following Deposit
      Accounts which shall not be subject to an Account Control Agreement in favor
      of
      the Secured Party, subject to the following conditions:

     

    (i) the
      existing Centerville Bank account numbers 01-528870-50 and 01-528870-54;
provided that
      (A) such
      accounts shall consists solely of certificates of deposit pledged to secure
      existing letters-of-credit of the Grantors; (B) upon the earlier to occur of
      (x)
      the occurrence and continuance of an Event of Default or (y) termination of
      the
      existing letters-of-credit, such certificates of deposit or any proceeds
      therefrom shall be transferred to a Deposit Account maintained at a bank or
      other depository institution that is subject to an Account Control Agreement
      in
      favor of Secured Party; and (C) such accounts shall maintain a balance of not
      more than One Hundred Thirty Five Thousand Dollars ($135,000) at any time
      outstanding; 

     

    (ii) the
      existing Bank of America, N.A. account number CD-4255; provided that
      (A) such
      account shall consists solely of certificates of deposit pledged to secure
      existing letters-of-credit of the Grantors; (B) upon the earlier to occur of
      (x)
      the occurrence and continuance of an Event of Default or (y) termination of
      the
      existing letters-of-credit, such certificates of deposit or any proceeds
      therefrom shall be transferred to a Deposit Account maintained at a bank or
      other depository institution that is subject to an Account Control Agreement
      in
      favor of Secured Party; and (C) such account shall maintain a balance of not
      more than Fifty Thousand Dollars ($50,000) at any time outstanding;
      and

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (iii) the
      existing First Georgetown Securities brokerage account number 0RH-224626 in
      an
      aggregate principal amount not to exceed One Thousand Five Hundred Dollars
      ($1,500); provided that (A) as of the date hereof, no additional deposits shall
      be permitted in such account; and (B) any proceeds, distributions or other
      withdrawals from such account not immediately paid to a third-party creditor
      in
      the ordinary course of business shall be transferred to a Deposit Account
      maintained at a bank or other depository institution that is subject to an
      Account Control Agreement in favor of Secured Party.

     

    ARTICLE
      7.

     

    NEGATIVE
      COVENANTS

     

    So
      long
      as any of the Obligations shall remain outstanding, unless the Secured Party
      shall otherwise consent in writing, each Grantor covenants and agrees that
      it
      shall not:

     

    7.1 Transfers;
      Liens and Encumbrances.

     

    (a) Sell,
      assign (by operation of law or otherwise), lease, license, exchange or otherwise
      transfer or dispose of any of the Collateral, except the Grantors may (i) sell
      or dispose of Inventory in the ordinary course of business, and (ii) sell or
      dispose of up to $ 250,000
      in any fiscal year assets the Grantors have determined, in good faith, not
      to be
      useful in the conduct of its business, and (iii) sell or dispose of accounts
      in
      the course of collection in the ordinary course of business consistent with
      past
      practice; or

     

    (b) Directly
      or indirectly make, create, incur, assume or permit to exist any Lien in, to
      or
      against any part of the Collateral other than Permitted Liens.

     

    7.2 Restriction
      on Redemption and Cash Dividends

     

    Directly
      or indirectly, redeem, repurchase or declare or pay any cash dividend or
      distribution on its capital stock without the prior express written consent
      of
      the Secured Party.

     

    7.3 Incurrence
      of Indebtedness.

     

    Directly
      or indirectly, incur or guarantee, assume or suffer to exist any indebtedness,
      other than the indebtedness evidenced by the Secured Convertible Debentures
      and
      other Permitted Indebtedness.

     

    7.4 Places
      of Business.

     

    Change
      its state of organization or its principal place of business without the written
      consent of the Secured Party.

     

    
      
        
        

      

      
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    ARTICLE
      8.

     

    MISCELLANEOUS

     

    8.1 Notices.

     

    All
      notices or other communications required or permitted to be given pursuant
      to
      this Agreement shall be in writing and shall be considered as duly given on:
      (a)
      the date of delivery, if delivered in person or by nationally recognized
      overnight delivery service or (b) five (5) days
      after mailing if mailed from within the continental United States by certified
      mail, return receipt requested to the party entitled to receive the
      same:

     

    
      	
              If
                to the Secured Party:

            	
              YA
                Global Investments, L.P.

              101
                Hudson Street-Suite 3700

              Jersey
                City, New Jersey 07302

              Attention:
                Mark Angelo

              Portfolio
                Manager

              Telephone:
                (201) 985-8300

              Facsimile:
                (201) 985-8266

               

            
	
              With
                a copy to:

               

               

               

               

            	
              Troy
                Rillo, Esq.

              101
                Hudson Street, Suite 3700

              Jersey
                City, NJ 07302

              Telephone:
                (201) 985-8300

              Facsimile:
                (201) 985-1964

               

            
	
              And
                if to any Grantor:

            	
              c/o
                MobilePro Corp.

              6701
                Democracy Blvd., Suite 202

              Bethesda,
                Maryland 20817

              Attn:
                Jay Wright, Chairman

              Telephone:
                (301) 571-3476

              Facsimile:
                (301) 315-9027

               

            
	
              With
                a copy to:

            	
              Seyfarth
                Shaw LLP

              815
                Connecticut Avenue, N.W.

              Suite
                500

              Washington,
                D.C. 20006-4004

              Attn:
                Ernest M. Stern, Esq.

              Telephone:
                202-828-5360

              Facsimile:
                (202) 828-5393

            

    

     

    Any
      party
      may change its address by giving notice to the other party stating its new
      address. Commencing on the tenth (10th) day
      after
      the giving of such notice, such newly designated address shall be such party’s
      address for the purpose of all notices or other communications required or
      permitted to be given pursuant to this Agreement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    8.2 Security
      Interest Absolute.
      All
      rights of the Secured Party hereunder, the security interest in the Collateral
      and all obligations of the Grantors hereunder shall be absolute and
      unconditional irrespective of (a) any lack of validity or enforceability of
      the
      Secured Convertible Debentures, the Transaction Documents, any agreement with
      respect to any of the Obligations or any other agreement or instrument relating
      to any of the foregoing, (b) any change in the time, manner or place of payment
      of, or in any other term of, all or any of the Obligations, or any other
      amendment or waiver of or any consent to any departure from the Secured
      Convertible Debentures, the Transaction Documents or any other agreement or
      instrument, (c) any exchange, release or non-perfection of any Lien on other
      collateral, or any release or amendment or waiver of or consent under or
      departure from any guarantee, securing or guaranteeing all or any of the
      Obligations, (d) the
      existence of any claim, set-off or other right which any Grantor may have at
      any
      time against any other Grantor or the Secured Party, whether in connection
      herewith or any unrelated transaction.

     

    8.3 Severability.

     

    If
      any
      provision of this Agreement shall be held invalid or unenforceable, such
      invalidity or unenforceability shall attach only to such provision and shall
      not
      in any manner affect or render invalid or unenforceable any other severable
      provision of this Agreement, and this Agreement shall be carried out as if
      any
      such invalid or unenforceable provision were not contained herein.

     

    8.4 Expenses.

     

    In
      the
      event of an Event of Default, the Grantors will pay to the Secured Party the
      amount of any and all reasonable out-of-pocket expenses, including the
      reasonable fees and expenses of its counsel, which the Secured Party may incur
      in connection with: (i) the custody or preservation of, or the sale, collection
      from, or other realization upon, any of the Collateral; (ii) the exercise or
      enforcement of any of the rights of the Secured Party hereunder or (iii) the
      failure by a Grantor to perform or observe any of the provisions hereof.

     

    8.5 Waivers,
      Amendments, Etc.

     

    The
      Secured Party’s delay or failure at any time or times hereafter to require
      strict performance by a Grantor of any undertakings, agreements or covenants
      shall not waive, affect, or diminish any right of the Secured Party under this
      Agreement to demand strict compliance and performance herewith. Any waiver
      by
      the Secured Party of any Event of Default shall not waive or affect any other
      Event of Default, whether such Event of Default is prior or subsequent thereto
      and whether of the same or a different type. None of the undertakings,
      agreements and covenants of a Grantor contained in this Agreement, and no Event
      of Default, shall be deemed to have been waived by the Secured Party, nor may
      this Agreement be amended, changed or modified, unless such waiver, amendment,
      change or modification is evidenced by an instrument in writing specifying
      such
      waiver, amendment, change or modification and signed by the Secured Party in
      the
      case of any such waiver, and signed by the Secured Party and the Grantors in
      the
      case of any such amendment, change or modification.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    8.6 Continuing
      Security Interest.
      This
      Agreement shall create a continuing security interest in the Collateral and
      shall: (i) remain in full force and effect so long as any of the Obligations
      shall remain outstanding; (ii) be binding upon each Grantor and its successors
      and assigns; and (iii) inure to the benefit of the Secured Party and its
      successors and assigns. Upon the payment or satisfaction in full of the
      Obligations, this Agreement and the security interest created hereby shall
      terminate, and, in connection therewith, each Grantor shall be entitled to
      the
      return, at its expense, of such of the Collateral as shall not have been sold
      in
      accordance with this Agreement or otherwise applied pursuant to the terms hereof
      and the Secured Party shall deliver to the Grantors such documents as the
      Grantors shall reasonably request to evidence such termination.

     

    8.7 Independent
      Representation.

     

    Each
      party hereto acknowledges and agrees that it has received or has had the
      opportunity to receive independent legal counsel of its own choice and that
      it
      has been sufficiently apprised of its rights and responsibilities with regard
      to
      the substance of this Agreement.

     

    8.8 Indemnification. The
      Grantors shall indemnify, defend, and hold the Secured Party, or any agent,
      employee, officer, attorney, or representative of the Secured Party, harmless
      of
      and from any claim brought or threatened against the Secured Party or any such
      person so indemnified by: any Grantor; any other obligor or endorser of the
      Obligations or any other person (as well as from attorneys' fees and expenses
      in
      connection therewith) on account of the Secured Party’s relationship with the
      Grantors, or any other obligor or endorser of the Obligations (each of which
      may
      be defended, compromised, settled, or pursued by the Secured Party with counsel
      of the Secured Party’s selection, but at the expense of the undersigned).

     

    8.9 Applicable
      Law: Jurisdiction.

     

    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New Jersey without regard to the principles of conflict of laws.
      The parties further agree that any action between them shall be heard in Hudson
      County, New Jersey, and expressly consent to the jurisdiction and venue of
      the
      Superior Court of New Jersey, sitting in Hudson County and the United States
      District Court for the District of New Jersey sitting in Newark, New Jersey
      for
      the adjudication of any civil action asserted pursuant to this Paragraph,
provided,
      however,
      that
      nothing herein shall prevent the Secured Party from enforcing its rights and
      remedies (including, without limitation, by filing a civil action) with respect
      to the Collateral and/or the Grantors in any other jurisdiction in which the
      Collateral and/or the Grantors may be located.

     

    8.10 Waiver
      of Jury Trial.

     

    AS
      A
      FURTHER INDUCEMENT FOR THE SECURED PARTY TO MAKE FINANCIAL ACCOMMODATIONS TO
      THE
      COMPANY OR ANY GRANTOR, EACH GRANTOR HEREBY WAIVES, TO THE FULLEST PERMITTED
      BY
      APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED
      TO THIS TRANSACTION.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    8.11 Right
      of Set Off.

     

    The
      Grantors hereby grant to the Secured Party, a lien, security interest and right
      of setoff as security for all liabilities and obligations to the Secured Party,
      whether now existing or hereafter arising, upon and against all deposits,
      credits, collateral and property, now or hereafter in the possession, custody,
      safekeeping or control of the Secured Party or any of its affiliates, or any
      entity under the control of the Secured Party, or in transit to any of them.
      At
      any time, without demand or notice, the Secured Party may set off the same
      or
      any part thereof and apply the same to any liability or obligation of the
      Grantors even though unmatured and regardless of the adequacy of any other
      collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE THE SECURED
      PARTY TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL
      WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
      RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE GRANTORS, ARE HEREBY
      KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

     

    8.12 Liability
      of Grantors.
      Notwithstanding any provision herein or in any other Transaction Document,
      the
      Grantors, and each of them, are and shall be jointly and severally liable for
      any and all Obligations (whether any such Obligation is specified as an
      obligation of the Grantors or of any of them).

     

    8.13 Waiver
      of Claims.
      The
      Grantors acknowledge and agree that they have no offsets, defenses, claims,
      or
      counterclaims against the Secured Party or its officers, directors, employees,
      attorneys, representatives, parents, affiliates, predecessors, successors,
      or
      assigns with respect to the Obligations, the Prior Debt Documents or otherwise,
      and that if the Grantors now has, or ever did have, any offsets, defenses,
      claims, or counterclaims against the Secured Party or its officers, directors,
      employees, attorneys, representatives, affiliates, predecessors, successors,
      or
      assigns, whether known or unknown, at law or in equity, from the beginning
      of
      the world through this date and through the time of execution of this Agreement,
      all of them are hereby expressly WAIVED,
      and the
      Grantors hereby RELEASE
      the
      Secured Party and its officers, directors, employees, attorneys,
      representatives, affiliates, predecessors, successors, and assigns from any
      liability therefor.

     

    8.14 Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed and delivered by exchange of facsimile signatures
      of
      the Secured Party and the Grantors, and those signatures need not be affixed
      to
      the same copy. This Agreement may be executed in any number of
      counterparts.

     

    8.15 Entire
      Agreement.

     

    This
      Agreement and the other documents or agreements delivered in connection herewith
      contain the entire understanding among the parties and supersede any prior
      agreement or understanding among them with respect to the subject matter
      hereof.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    8.16 Existing
      Security Interests.

     

    The
      security interests granted herein are intended to be supplemental to, and not
      in
      limitation of, any existing security interests granted to the Secured Party
      to
      secure the Obligations, whether under the Prior Debt Documents or otherwise.
      All
      such existing security interests, and any rights of the Secured Party in
      connection therewith, shall remain in full force and effect in accordance with
      their respective terms, provided,
      however,
      that in
      the event of a conflict between the terms of this Agreement and of any such
      prior security interests, or the documents evidencing the same, the terms of
      this Agreement shall control.

     

    8.17 Ratification
      of Prior Debt Documents.
      To the
      extent not amended, amended and restated or otherwise modified by the
      Transaction Documents (other than the Prior Debt Documents), each Grantor hereby
      ratifies, confirms and reaffirms all and singular the terms and conditions
      of
      the Prior Debt Documents, and any other or related documents or agreements,
      as
      the same may be amended and in effect as of the date hereof. The Grantors
      further acknowledge and agree that except as the Prior Debt Documents may be
      specifically be affected by this Agreement and/or any of the other documents
      executed in connection herewith, all terms and conditions of the Prior Debt
      Documents, as the same may be amended and in effect as of the date hereof,
      shall
      remain in full force and effect. 

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Global Security Agreement as of the date
      first
      above written.

     

    
      
        	
                Grantors:

              	 	
                 

              
	 	 	 
	
                MOBILEPRO
                  CORP., a Delaware corporation

              	 	
                PROGAMES
                  NETWORK, INC., a Delaware 

                corporation 

              
	 	 	 
	
                By:

              	/s/
                Jay Wright 	 	
                By:

              	/s/
                Jay Wright 
	
                Name:
                  Jay
                  Wright 

              	 	
                Name:
                  Jay
                  Wright 

              
	
                Title:  
                  Chairman
                  and CEO

              	 	
                Title:  
                  Chairman

              
	 	 	 
	
                DAVEL
                  FINANCING COMPANY, L.L.C., a Delaware limited liability
                  company

              	 	
                DAVEL
                  COMMUNICATIONS GROUP, INC., an Illinois corporation 

              
	 	 	 
	
                By:

              	/s/
                Tammy Martin 	 	
                By:

              	/s/
                Tammy Martin 
	
                Name:
                  Tammy
                  Martin 

              	 	
                Name:
                  Tammy
                  Martin 

              
	
                Title:  
                  Secretary

              	 	
                Title:  
                  Secretary

              
	 	 	 
	
                TELALEASING
                  ENTERPRISES, INC., an Illinois corporation

              	 	
                PEOPLES
                  TELEPHONE COMPANY, INC., a New York corporation 

              
	 	 	 
	
                By:

              	/s/
                Tammy Martin 	 	
                By:

              	/s/
                Tammy Martin 
	
                Name:
                  Tammy
                  Martin 

              	 	
                Name:
                  Tammy
                  Martin 

              
	
                Title:  
                  Secretary

              	 	
                Title:  
                  Secretary

              
	 	 	 
	
                PHONETEL
                  TECHNOLOGIES, INC., an Ohio corporation

              	 	
                DAVEL
                  ACQUISITION CORP., a Delaware corporation

              
	 	 	 
	
                By:

              	/s/
                Tammy Martin 	 	
                By:

              	/s/
                Tammy Martin 
	
                Name:
                  Tammy
                  Martin 

              	 	
                Name:
                  Tammy
                  Martin 

              
	
                Title:  
                  Secretary

              	 	
                Title:  
                  Secretary

              
	 	 	 
	
                DAVEL
                  COMMUNICATIONS, INC., a Delaware corporation 

              	 	
                CLOSECALLAMERICA,
                  INC., a Delaware corporation 

              
	 	 	 
	
                By:

              	/s/
                Tammy Martin 	 	
                By:

              	/s/
                Doug Bethell 
	
                Name:
                  Tammy
                  Martin 

              	 	
                Name:
                  Doug
                  Bethell 

              
	
                Title:  
                  Secretary

              	 	
                Title: 
                   President

              

      

    

    

    [Signature
      Page to Global Security Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 	
                AMERICAN
                  FIBER NETWORK, INC., a 

                Delaware
                  corporation 

              
	 	 	 	 	 
	 	 	 	
                By:

              	/s/
                Doug Bethell 
	 	 	 	
                Name:
                  Doug
                  Bethell 

              
	 	 	 	
                Title:  
                  President

              
	 	 	 	 
	 	 	 	
                SECURED
                  PARTY: 

              
	 	 	 	 
	 	 	 	
                YA
                  GLOBAL INVESTMENTS, L.P. 

              
	 	 	 	 
	 	 	 	
                By:

              	
                Yorkville
                  Advisors, LLC,

              
	 	 	 	its
                Investment Manager
	 	 	 	 	 
	 	 	 	
                By:

              	/s/
                Jerry Eicke
	 	 	 	
                Name:
                  Jerry
                  Eicke

              
	 	 	 	
                Title:  
                  Managing
                  Member

              

      

    

    

    [Signature
      Page to Global Security Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    DEFINITION
      OF COLLATERAL

     

    For
      the
      purpose of securing prompt and complete payment and performance by the Grantors
      of all of the Obligations, each Grantor unconditionally and irrevocably hereby
      grants to the Secured Party a continuing security interest in and to, and lien
      upon, the following “Collateral”
of
      the
      Grantors (all capitalized terms used herein and not defined in the Agreement
      shall have the respective meanings ascribed thereto in the UCC): 

     

    A. All
      Real
      Estate owned by the Grantors, wherever located and whether now or hereinafter
      existing and whether now owned or hereafter acquired. 

     

    B. All
      personal property of each Grantor, wherever located and whether now or
      hereinafter existing and whether now owned or hereafter acquired, of every
      kind
      and description, tangible or intangible, including without limitation,
      all:

     

    1. Goods;

     

    2.
       Inventory,
      including, without limitation, all goods, merchandise and other personal
      property which are held for sale or lease, or are furnished or to be furnished
      under any contract of service or are raw materials, work-in-process, supplies
      or
      materials used or consumed in the Grantors’ business, and all products thereof,
      and all substitutions, replacements, additions or accessions therefor and
      thereto; and any cash or non-cash Proceeds of all of the foregoing;

     

    3.
       Equipment,
      including, without limitation, all machinery, equipment, furniture, parts,
      tools
      and dies, of every kind and description, of the Grantors (including automotive
      equipment and motor vehicles), now owned or hereafter acquired by the Grantor,
      and used or acquired for use in the business of the Grantor, together with
      all
      accessions thereto and all substitutions and replacements thereof and parts
      therefor and all cash or non-cash Proceeds of the foregoing;

     

    4. Fixtures,
      including, without limitation, all goods which are so related to particular
      real
      estate that an interest in them arises under real estate law and all accessions
      thereto, replacements thereof and substitutions therefor, including, but not
      limited to, plumbing, heating and lighting apparatus, mantels, floor coverings,
      furniture, furnishings, draperies, screens, storm windows and doors, awnings,
      shrubbery, plants, boilers, tanks, machinery, stoves, gas and electric ranges,
      wall cabinets, appliances, furnaces, dynamos, motors, elevators and elevator
      machinery, radiators, blinds and all laundry, refrigerating, gas, electric,
      ventilating, air-refrigerating, air-conditioning, incinerating and sprinkling
      and other fire prevention or extinguishing equipment of whatsoever kind and
      nature and any replacements, accessions and additions thereto, Proceeds thereof
      and substitutions therefor;

     

    5. Instruments
      (including promissory notes);

     

    6. Documents;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7. Accounts,
      including, without limitation, all Contract Rights and accounts receivable,
      health-care-insurance receivables, and license fees; any other obligations
      or
      indebtedness owed to the Grantor from whatever source arising; all rights of
      Grantor to receive any payments in money or kind; all guarantees of Accounts
      and
      security therefor; all cash or non-cash Proceeds of all of the foregoing; all
      of
      the right, title and interest of Grantors in and with respect to the goods,
      services or other property which gave rise to or which secure any of the
      accounts and insurance policies and proceeds relating thereto, and all of the
      rights of the Grantors as an unpaid seller of goods or services, including,
      without limitation the rights of stoppage in transit, replevin, reclamation
      and
      resale and all of the foregoing, whether now existing or hereafter created
      or
      acquired;

     

    8.
       Contracts
      and Contract Rights, including, to the extent not included in the definition
      of
      Accounts, all rights to payment or performance under a contract not yet earned
      by performance and not evidenced by an Instrument or Chattel Paper;

     

    9.
       Chattel
      Paper (whether tangible or electronic);

     

    10. Deposit
      Accounts (and in and to any deposits or other sums at any time credited to
      each
      such Deposit Account);

     

    11. Money,
      cash and cash equivalents;

     

    12. Letters-of-Credit
      and Letter-of-Credit Rights (whether or not such Letter-of- Credit is evidenced
      by a writing);

     

    13. Commercial
      Tort Claims;

     

    14. Securities
      Accounts, Security Entitlements, Securities, Financial Assets and all other
      Investment Property, including, without limitation, all ownership or membership
      interests in any subsidiaries or affiliates (whether or not controlled by the
      Grantors);

     

    15. General
      Intangibles, including, without limitation, all Payment Intangibles and
      Intellectual Property, tax refunds and other claims of the Grantors against
      any
      governmental authority, and all choses in action, insurance proceeds, goodwill
      customer lists, formulae, permits, research and literary rights, and
      franchises.

     

    16. Farm
      Products;

     

    17. All
      books
      and records and information (including all ledger sheets, files, computer
      programs, tapes and related data processing software) evidencing an interest
      in
      or relating to any of the foregoing and/or to the operation of the Grantors’
business, and all rights of access to such books and records, and information,
      and all property in which such books and records, and information are stored,
      recorded and maintained.

     

    18. To
      the
      extent not already included above, all Supporting Obligations, and any and
      all
      cash and non-cash Proceeds, products, accessions, and/or replacements of any
      of
      the foregoing, including proceeds of insurance covering any or all of the
      foregoing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    (Account
      Control Agreements)

    

    [forms
      to
      be attached]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

    (Subsidiaries
      and Affiliates)

    

    MobilePro
      Corp., a Delaware corporation

    ProGames
      Network, Inc., a Delaware corporation

    Davel
      Financing Company, L.L.C., a Delaware limited liability company

    Davel
      Communications Group, Inc., an Illinois corporation

    Telaleasing
      Enterprises, Inc., an Illinois corporation

    Peoples
      Telephone Company, Inc., a New York corporation

    PhoneTel
      Technologies, Inc., an Ohio corporation

    Davel
      Acquisition Corp., a Delaware corporation

    Davel
      Communications, Inc., a Delaware corporation

    CloseCall
      America, Inc., a Delaware corporation

    American
      Fiber Network, Inc., a Delaware corporation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      2

    (Secured
      Convertible Debentures)

    

    [to
      be
      attached]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      3

    (Securities
      Purchase Agreement)

    

    [to
      be
      attached]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      4

    (Intellectual
      Property)

    

    [to
      be
      attached]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      4.2

    (Permitted
      Liens)

    

    [to
      be
      attached]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      4.3

    (Addresses)

    

    [to
      be
      attached]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      4.4

    (Location,
      State of Incorporation, Name)

    

    [to
      be
      attached]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      5

    (Real
      Estate)

    

    [to
      be
      attached]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      6.12

    (Current
      Subsidiaries)

    

    ProGames
      Network, Inc., a Delaware corporation

    Davel
      Financing Company, L.L.C., a Delaware limited liability company

    Davel
      Communications Group, Inc., an Illinois corporation

    Telaleasing
      Enterprises, Inc., an Illinois corporation

    Peoples
      Telephone Company, Inc., a New York corporation

    PhoneTel
      Technologies, Inc., an Ohio corporation

    Telefonos
      Publico, a company organized under the laws of Mexico

    Davel
      Acquisition Corp., a Delaware corporation

    Davel
      Communications, Inc., a Delaware corporation

    CloseCall
      America, Inc., a Delaware corporation

    American
      Fiber Network, Inc., a Delaware corporation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      6.15

    (Commercial
      Tort Claims)

    

    [to
      be
      attached]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      6.16 (a)

    (Deposit
      Accounts with Prior Account Control Agreements)

    

    None

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      6.16 (b)

    (Deposit
      Accounts)

     

    [to
      be
      attached]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]