Document:

EX-10.1 4th Amendment to Loan & Security Agrrement

 

EXHIBIT 10.1

FOURTH AMENDMENT TO

COMMERCIAL LOAN AGREEMENT

AND

SECURITY AGREEMENT

     This FOURTH AMENDMENT TO COMMERCIAL LOAN AGREEMENT and SECURITY AGREEMENT, dated as of
February 13, 2007 (this “Fourth Amendment”), is between VERICHIP CORPORATION, a Delaware
corporation (the “Borrower” or “Debtor”), and APPLIED DIGITAL SOLUTIONS, INC., a Missouri
corporation (the “Lender”).

Recitals:

     WHEREAS, on December 27, 2005, the Borrower and the Lender entered into a Commercial Loan
Agreement (the “Agreement”) pursuant to which Lender made a Loan to Borrower subject to the terms
and conditions contained in the Agreement;

     WHEREAS, on October 6, 2006, the Borrower and the Lender entered into a First Amendment to
Commercial Loan Agreement pursuant to which Lender increased the principal amount of the Loan by
Four Million Five Hundred Thousand Dollars ($4,500,000.00) (including a change in the applicable
interest rate) in order to meet the Borrower’s working capital needs, IPO costs, and cash needs in
connection with Perceptis’ potential election to take its final (deferred) payment in cash and to
make certain other amendments to the Agreement contained herein;

     WHEREAS, on January 19, 2007, the Borrower and the Lender entered into a Second Amendment to
Commercial Loan Agreement pursuant to which Lender increased the principal amount of the Loan by
One Million Five Hundred Thousand Dollars ($1,500,000.00) in order to meet the Borrower’s working
capital needs and IPO costs;

     WHEREAS, on February 8, 2007, the Borrower and the Lender entered into a Third Amendment to
Commercial Loan Agreement, a Third Amended and Restated Revolving Line of Credit Note, and a Third
Amendment to Security Agreement, pursuant to which certain payment terms were changed and the
revolving nature of the Loans would be deemed changed upon the occurrence of certain events; and

     WHEREAS, the Lender and the Borrower desire to clarify certain terms now existing under the
Loan Documents;

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

Agreement.

	1.	 	Recitals. The foregoing recitals are true and correct and are hereby incorporated by
this reference.

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	2.	 	Definitions. All capitalized terms used herein, except as modified or defined in this
Fourth Amendment, shall have the meaning given to such terms in the Agreement or in the
Security Agreement as applicable. All references to the Agreement in all documents executed
by Borrower, Guarantor and/or Lender in connection with the Agreement are hereby deemed to
refer to the Agreement, as hereby amended.

	3.	 	Amendments: The following sections of the Agreement or the Security Agreement, as
indicated, are hereby amended or clarified as follows:

          a. Credit Agreement.

          (i) Bank Accounts. Section VIII (O) of the Agreement shall be deleted and
replaced by the following: “Borrower shall maintain its primary operating and deposit accounts at
such locations and with such financial institutions as shall be approved by Lender from time to
time, such approval not to be unreasonably conditioned or withheld.”

          (ii) Capital Structure. For the avoidance of doubt, the Lender hereby ratifies and
confirms that the Borrower’s IPO shall not be deemed a breach of or an event of default under the
Agreement, including without limitation, under Sections IX (C) or XI (4) thereof.

          (iii) Permitted Liens. Section VII (N) of the Agreement is hereby amended by
removing the parenthetical “(“Permitted Encumbrances”)” at the end of the sentence and replacing it
with the following: “or any other liens arising in the ordinary course of the Borrower’s business
or by operation of law so long as, in any such case, either such lien shall not be prior in right
and dignity to the lien in favor of the Lender or the existence of such lien shall not have a
material adverse effect on the Borrower (“Permitted Encumbrances”).”

          b. Security Agreement. For the avoidance of doubt, the Lender hereby ratifies and
confirms that the existence of any lien on the Debtor’s assets, including the Collateral, shall not
be deemed a breach of or an event of default under the Security Agreement, including without
limitation, Sections 3(e) and 5(b) thereof, if such liens arise in the ordinary course of the
Debtor’s business or by operation of law and, in any such case, either such lien shall not be prior
in right and dignity to the security interest granted to the Lender under the Security Agreement or
the existence of such lien shall not have a material adverse effect on the Debtor.

	4.	 	Representations and Warranties. The terms and conditions, representations and
warranties, and covenants as set forth in the Agreement, the Security Agreement, and all other
loan documents executed by Borrower in favor of Lender in connection with the Loan are hereby
ratified and affirmed by Borrower, and Borrower hereby agrees that the said terms and
conditions, and covenants are valid, true and correct as if made on the date hereof.

	5.	 	No Implied Modifications; Inconsistencies. Except as expressly modified hereby, all
terms and provisions of the Agreement and the Security Agreement shall remain unchanged and in
full force and effect. In the event of an inconsistency between the terms of this Fourth
Amendment and the terms of the Agreement or the Security Agreement, the terms hereof shall
control.

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	6.	 	Counterparts. This Fourth Amendment may be executed in any number of counterparts,
and all such counterparts shall together constitute but one instrument.

	7.	 	Governing Law. This Fourth Amendment shall be governed by and construed in accordance
with the laws of the State of New Hampshire.

[Signature Page to Follow]

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     IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this
Fourth Amendment on the date first above written.

	 	 	 	 	 
	 	BORROWER:

VERICHIP CORPORATION, a Delaware corporation

 	 
	 	By:  	/s/ William J. Caragol
 	 
	 	 	Print Name: William J. Caragol 	 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	LENDER:

APPLIED DIGITAL SOLUTIONS, INC., a Missouri

corporation

 	 
	 	By:  	/s/ Lorraine Breece
 	 
	 	 	Print Name: Lorraine Breece 	 	 
	 	 	Title:  	Senior Vice President and Chief                                                   Accounting Officer 	 
	 

4EXHIBIT 10.12

                         EXECUTIVE EMPLOYMENT AGREEMENT

                                     BETWEEN

                     MORTGAGE ASSISTANCE CENTER CORPORATION

                                       AND

                                   RON JOHNSON

     THIS EMPLOYMENT  AGREEMENT (the "Agreement") is made and entered into as of
the  _________ day of February 2007 by and between  Mortgage  Assistance  Center
Corporation,  a Florida  corporation,  (the  "Corporation")  and Ron Johnson,  a
resident of Texas (hereinafter referred to as "Executive").

     WHEREAS, the parties, for and in consideration of the mutual and reciprocal
covenants  and  agreements  hereinafter  contained,  and intending to be legally
bound hereby, do contract and agree as follows:

     1.  Purpose  and  Employment.   The  Corporation's  primary  business  (the
"Corporation's  Business")  is (a) to  acquire  from  banks and other  financial
institutions relatively large "pools" or groups, consisting of at least ten (10)
or more multiple non-performing mortgages in any one particular "pool" or group,
together with the underlying  distressed real properties  primarily  composed of
single family residences throughout the United States; (b) to generally purchase
such  "pools" or groups of multiple  non-performing  mortgages  through  special
purpose entities formed with financial  partners  through a competitive  bidding
process  or through  direct  negotiations  with the  selling  bank or  financial
institution;  and (c) to categorize and separate the newly-acquired  real estate
mortgages  and  real   properties   into  various   sub-groups  for  management,
rehabilitation  and resale,  usually  over a period of  eighteen to  twenty-four
months.  The purpose of this Agreement is to define the employment  relationship
between  the  Corporation  and  Executive.  The  Corporation  agrees  to  employ
Executive  as the  Corporation's  President  and Chief  Executive  Officer,  and
Executive hereby accepts such employment by the Corporation,  all upon the terms
and conditions hereinafter set forth.

     2. Executive's Duties and Responsibilities.

         (a) Duties.  Executive shall serve the Corporation as its President and
Chief  Executive  Officer.   At  all  times,   Executive  shall  report  to  the
Corporation's Board of Directors, shall perform such duties, consistent with the
Executive's  employment  as the  President  and Chief  Executive  Officer of the
Corporation,  shall hold such other titles with respect to the  Corporation,  or
any of its divisions, subsidiaries, or affiliates, as the Corporation's Board of
Directors may from time to time determine,  and shall comply with all applicable

<PAGE>

provisions of the Corporation's certificate of incorporation, and any amendments
thereto.  Executive  shall have authority to formulate  policies for and oversee
all aspects of the Corporation and its divisions,  subsidiaries, and affiliates.
As to employees under his  jurisdiction,  including those working directly under
his supervision,  Executive shall use his best commercially  reasonable  efforts
(i) to employ and retain only  employees  who are capable and willing to perform
according  to  applicable  legal  requirements  and  applicable  policies of the
Corporation,  and also (ii) to assure that such  personnel are properly  trained
and  supervised.  Executive may hire and  terminate the  employment of any other
employee  of  the  Corporation,  or of any of  its  divisions,  subsidiaries  or
affiliates, who is under his jurisdiction.

         (b)  Responsibilities.  Executive  agrees  that  during the term of his
employment by the Corporation he will devote all business time necessary, proper
and appropriate to fulfill and discharge his duties and  responsibilities to the
best of his abilities and to exert his best commercially  reasonable efforts and
abilities  to the  performance  of  his  duties  and  responsibilities  for  the
Corporation.  Executive  agrees to act with the  Corporation's  best interest in
mind at all times.  Executive will conduct  himself at the highest  professional
standards of ethics and integrity. Executive agrees to use his best commercially
reasonable  efforts and skills to preserve the business of the  Corporation  and
the goodwill of its employees and persons  having  business  relations  with the
Corporation.  Executive will comply with all of the  Corporation's  policies and
procedures as applicable to Executive.

         (c) Permitted Activities.  Notwithstanding the foregoing,  it shall not
be a violation  of Section  2(b) for the  Executive  to (i) serve on  corporate,
civic,  or  charitable  boards or  committees,  (ii) deliver  lectures,  fulfill
speaking  engagements,  or teach at educational  institutions during times other
than  normal  business  hours  during the  business  week,  or (iii)  manage his
personal  finances  and  investments,   so  long  as  none  of  such  activities
(singularly or collectively) significantly interfere with the performance of the
Executive's  responsibilities  as an employee of the  Corporation  in accordance
with this Agreement.

     3. Term. The term of this Agreement  shall be for a period of two (2) years
commencing  and effective as of the date of full  execution of this Agreement as
set forth herein,  (the "Term") unless terminated  earlier by in accordance with
Section 8 of this Agreement. Upon completion of the original Term, the Agreement
shall  automatically  be  renewed  for a  period  of one  (1)  year  as of  each
succeeding  anniversary  date;  provided,  however,  that the Corporation or the
Executive may  terminate the Agreement  effective as of any such renewal date by
providing  ninety (90) days advance  written  notice to the other party prior to
such renewal.  The parties agree that the obligations  created in Sections 6, 7,
10  and 11 of  this  Agreement  will  survive  the  termination  of  Executive's
employment with the Corporation.

     4. No  Limitations.  Executive  warrants and represents that he is under no
contractual, judicial or other restraint that impairs his right or legal ability
to enter into this  Agreement  and to carry out his duties and  responsibilities
for the Corporation.

<PAGE>

     5.  Compensation  and  Benefits.  For all the  services  to be  rendered by
Executive hereunder,  the Corporation shall provide Executive with the following
compensation and benefits:

         (a) Base Salary.  During the Term of this  Agreement,  the  Corporation
will pay  Executive  an annual  base  salary  of two  hundred  thousand  dollars
($200,000),  payable in monthly installments and in coordination with the normal
payroll cycle of the Corporation.  Commencing as of January 1, 2008, Executive's
Base  Salary  shall  be  reviewed  no  less  frequently  than  annually  by  the
Corporation  and may be adjusted  upward (but not downward) by the  Corporation.
Upon such  annual  review  during the Term,  Executive's  Base  Salary  shall be
increased  to the  greatest of (i) an amount  equal to Base Salary for the prior
year plus 5%, (ii) a factor  measured by the  increase,  if any, in the Consumer
Price Index for Wage Earners and Clerical Workers  (CPI-W),  as published by the
Bureau of Labor  Statistics,  for the prior calendar year (the "CPI Adjustment")
or (iii) such greater amount as may be agreed by Executive and the Company.

         (b)  Incentive  Compensation.  In  the  event  that  the  Corporation's
financial  performance  meets or exceeds the annual financial budget  projection
for any fiscal year as approved by the Board of Directors  while this  Agreement
is in effect,  Executive shall receive a cash bonus equal to fifty percent (50%)
of the Executive's  base salary.  Executive may be entitled to other bonuses and
incentive  compensation  as may be  determined  by the  Corporation's  Board  of
Directors  in  its  sole   discretion.   Each  such  other  bonus  or  incentive
compensation may be paid in cash or shares of common stock as the  Corporation's
Board of Directors shall determine.  Such other incentive  compensation may also
include options to purchase shares of the Corporation's common stock pursuant to
a plan established by the Corporation's Board of Directors.

         (c)  Vacation  and  Holidays.  Executive  shall be  entitled to two (2)
weeks' vacation with pay (or such greater length of time as may be approved from
time to time by the  Corporation's  Board of Directors)  during the first fiscal
year of the  Agreement,  and shall be entitled to three (3) weeks  vacation with
pay during each  subsequent  fiscal year  thereafter,  with such vacations to be
taken by  Executive  at such  times as shall  be  consistent  with the  business
requirements of the Corporation.  In addition,  Executive shall also be entitled
to  such  holidays  as are  customarily  observed  by the  Corporation  for  its
employees. Unused holidays and days of vacation may not be carried over from one
fiscal year to another,  and  additional  income will not be given for  vacation
time or holidays not taken.  Notwithstanding  anything contained to the contrary
herein,  if  Executive is  terminated  without  "good cause" as defined  herein,
Executive  shall  receive the base salary for any unused  vacation  time for the
fiscal year in which such termination without "good cause" occurs.

         (d)  Other  Benefits.  The  Corporation  shall pay  Executive,  whether
directly or by  reimbursement,  for that certain health and medical,  dental and
vision  coverage  currently in force as of this date and being made available to
Executive  pursuant to COBRA. In addition to other benefits conferred under this
Agreement,  Executive  shall have the right to participate in (on the same terms
and conditions as available to other senior  executives of the  Corporation) all
pension  plans,   retirement  plans,  deferred  compensation  plans,   executive
compensation plans, major medical,  group health,  disability,  accidental death

<PAGE>

and  group  term  life  insurance  plans,   "fringe"  benefit  plans  (including
permissible  sick days or leave days), and other employee benefit plans that the
Corporation  shall,  from  time to time,  generally  confer  upon  other  senior
executives of the Corporation.

         (e)  Expenses.  Executive  is  expected  from  time to  time,  to incur
reasonable  expenses as he reasonably deems to be for the Corporation's  benefit
and for  promoting  the  business of the  Corporation,  including  expenses  for
entertainment,  travel, and similar items. Executive shall be reimbursed for all
such  reasonable  expenses  (in  accordance  with the  policies  and  procedures
regarding employee business-related expense from time to time established by the
Corporation  for its  senior  executive  officers)  upon his  presenting  to the
Corporation a detailed  itemized  expense  voucher  therefore in accordance with
applicable   corporate  policies.   Executive  may  also  draw  funds  from  the
Corporation,  but only to the extent necessary and  appropriate,  for reasonable
expenses to be incurred on behalf of the Corporation and then only in accordance
with applicable corporate policies.  Detailed records of the expenditure of such
funds shall be  tendered by  Executive  for  expenses  incurred on behalf of the
Corporation in accordance with applicable corporate policies, and if any portion
of such funds are unexpended or  unaccountable,  then  Executive  shall promptly
return such unexpended or unaccountable sums to the Corporation.

         (f) Stock Grants and Options.

             (1)  Restricted  Stock  Grant.  During the Term of this  Agreement,
Executive  may receive a grant of shares of the  Corporation's  Common  Stock as
determined by the Board of Directors in its sole discretion. Except as otherwise
provided in this  Agreement,  in the event the Agreement is terminated for "Good
Cause" (as defined in Section 8(d)),  the shares granted to the Executive  under
this  provision  shall be  forfeited;  provided  however,  that in the event the
Executive is  terminated  by the  Corporation  without  Good Cause,  the granted
shares shall not be forfeited.

             (2) Incentive  Stock  Options.  Upon  execution of this  Agreement,
Executive  shall be granted  incentive  stock options for a total of one million
(1,000,000)  shares of the  Corporation's  common stock under the  Corporation's
stock option plan (the "Incentive Stock Options"). This grant is effective as of
the date of the Agreement  (or the date of grant under the plan, if later).  One
third of such  Incentive  Stock Options shall become  exercisable  upon the full
execution of this Agreement and the remaining two thirds of such Incentive Stock
Options  shall  become  exercisable  with  one  half  of the  two  thirds  being
exercisable on each of the subsequent  two successive  anniversary  dates of the
Agreement,  provided that the Executive is employed by the  Corporation  on each
such anniversary date.

             (3)  Non-Vested  Shares.  If the  Executive's  employment  with the
Corporation  is  terminated  prior to the date on which his right to any  shares
granted  to  him   pursuant  to  this   Agreement   become   fully   vested  and
non-forfeitable,  the  Executive's  rights  to any  shares  granted  under  this
Agreement  shall   automatically   become  fully  vested  upon   termination  of
employment.  Notwithstanding the foregoing,  if the Executive's  employment with

<PAGE>

the  Corporation is terminated by the Executive  upon notice to the  Corporation
pursuant to Section  8(c) of this  Agreement,  or by the  Corporation  for "good
cause" pursuant to Section 8(d) of this Agreement,  the non-vested  shares shall
be forfeited on the date of his termination.

             (4)   Change-in-Control.   Notwithstanding   (3)  above,  upon  the
occurrence of a Change-in-Control of the Corporation,  the shares granted to the
Executive  under this Agreement  shall become fully vested and  non-forfeitable.
For purposes of this Agreement,  "Change-in-Control"  shall mean (i) the sale of
substantially  all of the assets of the  Corporation to another person or entity
(other than an  subsidiary  or other  affiliate  of the  Corporation),  (ii) the
acquisition of actual or beneficial  ownership of more than fifty percent of the
total combined voting power of all classes of Corporation stock entitled to vote
by a person or group of persons  acting in concert  (other than a subsidiary  or
other affiliate of the  Corporation)  who did not own more than fifty percent of
such on the date of this Agreement,  or (iii) the merger of the Corporation into
another entity (other than a subsidiary or other affiliate of the  Corporation),
where the Corporation's  shareholders  (determined as of the date of the merger)
own  (directly  or  indirectly)  less  than  fifty  percent  of the share of the
surviving entity.

             (5)  Transfer  of  Shares.  Until any  shares  awarded  under  this
Agreement become fully vested and non-forfeitable,  such shares shall be held by
the Corporation in escrow.  Upon becoming  vested,  a Share  certificate for the
newly  vested   shares   shall  be  delivered  to  the   Executive  as  soon  as
administratively  feasible after the date of vesting.  The Executive  shall have
all the rights of a  shareholder  with  respect  to the  shares  held in escrow,
including  the right to vote the shares and to receive all  dividends  and other
distributions  paid with respect to the shares.  Any shares held in escrow under
this Agreement shall be held, and a certificate  shall be issued, in the name of
the  Executive.  The Executive  hereby grants to the  Corporation an irrevocable
power of attorney to sign any and all  documents  and to take such other actions
as may be necessary to transfer  ownership to the  Corporation  of any forfeited
shares.

             (6) Unvested Shares Not Subject to Creditors,  Except  Corporation.
Any  shares  held in escrow by the  Corporation  for the  Executive  under  this
Agreement are not subject to the claims of the Executive's creditors and may not
be voluntarily or involuntarily transferred, assigned, alienated, accelerated or
encumbered.  Notwithstanding the preceding  sentence,  any shares deliverable to
the Executive under this Agreement may, as determined by the Corporation's Board
of Directors in their  discretion,  be offset by any  liability of the Executive
owing to the Corporation.

             (7) Section 83(b) Election.  The Executive may make a Section 83(b)
election to treat the  restricted  stock  granted to him under  Section  4(b) as
taxable income at the time of transfer under this Agreement.

     6. Training and  Confidential  Information.  The  Corporation  will provide
Executive with such specialized training as the Board of Directors,  in its sole
discretion,  deems necessary or beneficial to the performance of the Executive's
responsibilities  and duties. The Corporation will also provide confidential and
proprietary information to Executive regarding its clients, vendors,  employees,

<PAGE>

sales, purchasing,  pricing, services, computer programs, operations,  marketing
plans and financial  performance,  which has not been previously provided to the
Executive.  Executive  understands and agrees that after the term of Executive's
employment  with the  Corporation,  Executive will not,  directly or indirectly,
knowingly use or disclose any Confidential Information for any reason other than
for the advancement of the Corporation's  Business.  "Confidential  Information"
shall mean any information relating to the Corporation's  Business (or to any of
its parents,  subsidiaries or affiliates) (whether proprietary or otherwise) not
generally  known to the real  estate  mortgage  industry  or known by  Executive
otherwise  than  as  a  consequence  of  or  through  his  employment  with  the
Corporation and treated by the Corporation as being confidential, including, but
not  limited to,  research,  marketing,  customer  lists,  databases,  financing
sources,  methods,  techniques and systems,  all of which shall be deemed by the
Corporation and Executive as being Confidential Information.

     7. Restrictive Covenants.  In consideration for the commitments made by the
Corporation  to the  Executive in this  Agreement  regarding  the  Corporation's
employment  of  Executive,  the  Corporation  disclosing  its  confidential  and
proprietary  information to him and the Corporation  providing  training to him,
Executive  agrees  to the  restrictions  set  out  in  this  Section.  Executive
recognizes  and agrees  that these  restrictions  are  necessary  to protect the
Corporation's  customer  base,  good will,  confidential  information  and other
business interests.

         (a)  Non-Competition.  Executive agrees that during his employment with
the  Corporation,  and for a one-year  period  following the termination of this
Agreement,  Executive  will  not,  without  the  prior  written  consent  of the
Corporation,  directly or  indirectly,  either on his own behalf or on behalf of
any person, partnership, limited liability company, corporation, association, or
otherwise,  invest in (other than investments in publicly-owned  companies,  but
excluding  the  Corporation,  which  constitute  not more than 1% of the  voting
securities  of),  or perform  any of the  services  which he  performed  for the
Corporation  on  behalf  of  any  person  or  entity  which  is  engaged  in the
Corporation's  Business  (as  defined  in  Section 1 of this  Agreement)  in any
geographical area in which Executive performed services for the Corporation.

         (b)  Non-Solicitation.  Executive  agrees  that for a  one-year  period
following the termination of his employment with the  Corporation,  he will not,
directly  or   indirectly,   in  any  manner  solicit  or  contact  any  of  the
Corporation's  customers or clients that he had personal contact with during his
employment by the  Corporation for the purpose of inducing or persuading them to
change in any negative way their business relationship with the Corporation.

         (c)  Non-Hire.  Executive  agrees that during his  employment  with the
Corporation  and  for  a  one-year  period  following  the  termination  of  his
employment with the Corporation,  he will not directly or indirectly, on his own
behalf or on behalf of any other person or business entity,  (1) hire any person
employed by the  Corporation  during the 60 days prior to his  termination,  (2)
attempt to influence any person  employed by the  Corporation at the time of his
termination  to leave his or her employment or (3) use or disclose to any person
or  business  entity  any   Confidential   Information   regarding  any  of  the
Corporation's employees.

<PAGE>

         (d)  Non-Access.  Executive  agrees that  following the  termination of
employment  with the  Corporation,  Executive will not access the  Corporation's
computer  systems,  download  files or any  information  from the  Corporation's
computer systems or in any way interfere, disrupt, modify or change any computer
program used by the Corporation or any data stored on the Corporation's computer
systems.

         (e)  Consent  to  Court-Ordered  Remedy.  Executive  acknowledges  that
Executive's  breach of any  covenant  set forth in this Section 7 will result in
irreparable injury to the Corporation and that the Corporation's remedies at law
for such a breach  are  inadequate  and  extremely  difficult  to  calculate  or
determine. Accordingly, Executive agrees and consents that upon such a breach or
threatened breach by Executive of any covenant set forth herein, the Corporation
may be entitled to such  remedies in law or equity as may be  determined  by the
court for such a breach or threatened breach.

         (f) Remedies Cumulative and Concurrent.  The rights and remedies of the
Corporation,  as provided in this Section 7, shall be cumulative  and concurrent
and may be pursued separately, successively or together against Executive at the
sole  discretion of the  Corporation,  and may be exercised as often as occasion
therefor  shall  arise.  The failure to exercise any right or remedy shall in no
event be construed as a waiver or release thereof.

     8. Termination of Agreement.

         (a)  Death  of  the  Executive.   This  Agreement  shall  automatically
terminate upon the death of Executive.

         (b)  Disability  of the  Executive.  The  Corporation  may  immediately
terminate  this  Agreement  upon the  delivery  of a Notice of  Termination  (as
defined in Section 8(e) of this  Agreement) to the  Executive  setting forth the
facts that indicate that a determination  has been made that the Executive has a
Disability. For purposes of this Agreement, the Executive will be deemed to have
a  "Disability"  under any of the  following  conditions:  (1) the  Executive is
unable to render and perform  substantially  and  continuously  the  Executive's
duties and  services as required by this  Agreement  by reason of any  medically
determinable physical or mental condition that is expected to result in death or
can  reasonably be expected to last for a continuous  period of not less than 12
months,  (2) the Executive is  determined  to be disabled in  accordance  with a
disability income insurance  program sponsored by the Corporation,  provided the
definition  of  disability   applied  under  such  program   complies  with  the
requirements  of Section 409A of the Code, or (3) the Executive is determined to
be totally disabled by the Social Security  Administration.  Upon the request of
either party hereto following written notice to the other, the Disability of the
Executive  in  accordance  with  part  (1) of the  preceding  sentence  will  be
determined by a medical doctor (the "Examining Doctor") who shall be selected as
follows:  the  Corporation and the Executive shall each select a medical doctor,
and those two medical doctors will select a third medical doctor who will be the
Examining Doctor. The determination of the Examining Doctor as to whether or not
the Executive has a Disability  pursuant to part (1) of this Section 8(b),  will
be binding on both  parties  hereto.  For  purposes of part (1) of this  Section
8(b), the Executive must submit to a reasonable  number of  examinations  by the
Examining Doctor, and the Executive hereby authorizes the disclosure and release

<PAGE>

to the Corporation of such  determination and the results of such  examinations;
provided,  however,  if the Executive is not legally competent,  the Executive's
legal guardian or duly authorized  attorney-in-fact  will act in the Executive's
stead under this Section 8(b) for the purposes of  submitting  the  Executive to
examinations and providing any such authorizations of disclosure.

         (c) Upon  Notice.  After  the Term (as  defined  in  Section  3 of this
Agreement),  this  Agreement may be  terminated by (i) the Executive  giving the
Corporation  written notice of the intent to terminate at least 90 days prior to
the date on  which  this  Agreement  is due to  automatically  renew or (ii) the
Corporation  giving the  Executive  written  notice of the  intent to  terminate
either  immediately  or at some time in the future.  Upon giving such notice the
parties  shall  meet  and  in  good  faith  confer  regarding  Executive's  work
responsibilities  during the notice period.  During the notice period  following
either  party's  notice of  intent  to  terminate  the  employment  relationship
Executive  agrees  to use  his  best  efforts  to  continue  his  work  for  the
Corporation and the Corporation will continue  compensating  Executive until his
termination date with his same pay and benefits as before the notice was given.

         (d)  Termination  for "Good Cause".  The  Corporation  may  immediately
terminate  this  Agreement  upon the  delivery  of a Notice of  Termination  (as
defined in Section 8(e) of this  Agreement) to the  Executive  setting forth the
facts that indicate that an event constituting "Good Cause" has occurred,  or on
such later date as may be set forth in such Notice of Termination.  For purposes
of this Agreement,  "Good Cause" shall mean: (1) Executive's gross negligence in
performing  his duties  hereunder  for a continuous  period of ten (10) business
days after  receiving  specific  and detailed  written  notice from the Board of
Directors  setting forth the actions or inactions  that  constitute  the alleged
gross  negligence as well as the  corrective  actions  requested by the Board of
Directors to the Executive;  (2) Executive's  willful and continuous  failure or
refusal to perform his duties  hereunder  for a period of thirty (30) days after
receiving specific and detailed written notice from the Board of Directors;  (3)
Executive's intentional wrongful act or intentional wrongful failure to act that
materially  and adversely  affects the business  affairs of the  Corporation  as
determined  in  good  faith  by the  Board  of  Directors;  or  (4)  Executive's
non-appealable  judicial  determination of, or conviction for, any act of fraud,
any  commission  of any felony other than a minor third degree  felony such as a
moving traffic violation involving a DWI or a DUI conviction,  a material breach
of any provision of this  Agreement  likely to cause  material harm or damage to
the Corporation, Executive's intentional involvement in any material conflict of
interest or  self-dealing  transaction in violation of the applicable  corporate
laws of the  State of Texas,  or other  material  breach  of any of  Executive's
quasi-fiduciary  duties  to the  Corporation  in  violation  of  the  applicable
corporate laws of the State of Texas (including,  but not limited to, the duties
of due care, loyalty, and fair dealing) as determined in good faith by the Board
of Directors of the Corporation.

         (e) Notice of Termination. For purposes of this Agreement, a "Notice of
Termination"  shall mean a written notice  (delivered in accordance with Section
14) that  indicates the specific  termination  provision in this  Agreement upon
which the party  intending to terminate  the Agreement is relying and sets forth
in  reasonable  detail  the facts  and  circumstances  that  provide a basis for
termination of the Agreement under such termination provision.

<PAGE>

     9. Severance Benefits.  In addition to any payments of Base Salary that are
due to  the  Executive  pursuant  to  Section  5 of  this  Agreement,  upon  the
termination of this Agreement,  the Corporation shall pay the Executive,  or his
Designated Beneficiary (as defined in this Section 9), if at all, as follows:

         (a)  Termination  upon  Death  or  Disability.  If  this  Agreement  is
terminated in accordance with Section 8(a) or 8(b), the Corporation  will pay to
the disabled Executive or to the Executive's Designated Beneficiary, as the case
may be, three months of the Executive's  Base Salary at the time of his Death or
Disability. The Executive or the Executive's Designated Beneficiary also will be
entitled to receive the amount of incentive  compensation,  which the  Executive
has earned through the termination of this Agreement as determined in good faith
by the Board of Directors.  Further, any restricted stock grants which have been
made to the Executive  pursuant to this Agreement,  any other  restricted  stock
grants to the  Executive,  and any  outstanding  stock  options  granted  to the
Executive shall become fully vested.  Except to the extent otherwise provided in
this Section 9(a), the Executive or the Executive's Designated Beneficiary shall
have no right to receive,  and the Corporation shall have no further  obligation
to pay  to the  Executive,  further  monthly  installments  of  compensation  or
benefits  set forth in Section 5 of this  Agreement.  For the  purposes  of this
Agreement,  the  Executive's  "Designated  Beneficiary"  means  such  individual
beneficiary or trust,  located at such address as the Executive may designate by
written notice to the  Corporation  from time to time or, if the Executive fails
to give written notice to the Corporation of such a beneficiary, the Executive's
estate;  provided,  however, that,  notwithstanding the preceding clause of this
sentence,  the Corporation shall have no duty under any circumstances to attempt
to open  an  estate  on  behalf  of the  Executive,  to  determine  whether  any
beneficiary  designated by the Executive is alive, to determine the existence of
any trust,  to determine  whether any person or entity  purporting to act as the
Executive's  personal  representative  (or the trustee of a trust established by
the  Executive)  is duly  authorized  to act in that  capacity,  or to locate or
attempt to locate any beneficiary, personal representative, or trustee.

         (b) Termination by the Corporation "Upon Notice".  If this Agreement is
terminated by the Corporation in accordance with Section 8(c) of this Agreement,
the Corporation will continue to provide Executive with all the compensation and
benefits set forth in Section 5 of this Agreement  after the termination for (i)
the remainder of the calendar year during which the termination  occurs and (ii)
for the  subsequent  calendar  year.  Any Base Salary to which the  Executive is
entitled  under  this  Section  9(b)  shall  be  paid  in  accordance  with  the
Corporation's normal payroll practices

         (c) Termination by the Corporation for "Good Cause" or by the Executive
"Upon Notice".  If this Agreement is terminated by the Corporation in accordance
with Section  8(d) of this  Agreement or by the  Executive  in  accordance  with
Section 8(c) of this Agreement, the Executive will be entitled to receive solely
that  portion of his Base Salary  accrued by the  Executive  through the date on
which the Executive's employment is terminated. The Executive shall not receive,
and shall not be entitled to receive,  any compensation or benefits  thereafter,
except as  otherwise  required in  accordance  with  federal or state law or the

<PAGE>

terms of the plans or agreements governing the benefits provided hereunder.  Any
Base Salary to which the Executive is entitled  under this Section 9(c) shall be
paid in accordance with the Corporation's normal payroll practices.

         (d) Release.  No amount shall be payable to the Executive under Section
9(a) or 9(b) following the termination of this  Agreement,  unless the Executive
(or the  Executive's  Designated  Beneficiary  in the  event of  termination  of
employment due to the Executive's death) signs and delivers to the Corporation a
General  Release  acceptable  to  and  approved  by  the  Corporation,  and  the
Corporation  signs and delivers to  Executive a  substantially  similar  General
Release

     10.  Return of Property to The  Corporation.  Upon the  termination  of his
employment  by the  Corporation,  Executive  agrees to  immediately  provide the
Corporation with a written  inventory of all  Corporation-owned  property in his
possession or under his control and to immediately return to the Corporation all
Corporation-owned  property in his possession or control.  After his termination
Executive will not retain copies of any documents or other property belonging to
the Corporation.

     11.  Required  Notice.  Executive  agrees that prior to  beginning  any new
employment  following the termination of his employment with the Corporation and
for one year thereafter, Executive will provide the Corporation with 10 business
days' written  notice  regarding  Executive's  new  employment.  The notice will
identify  Executive's  new employer,  designate the position the Executive  will
fill for the new employer.

     12.  Indemnity.  To the fullest  extent  permitted by law, the  Corporation
shall  indemnify  Executive and hold him harmless for any acts or decisions made
by him in good faith while performing services for the Corporation. In addition,
to the fullest extent permitted by law, the Corporation  shall pay all expenses,
including  attorneys'  fees,  actually and necessarily  incurred by Executive in
connection with the defense of any action,  suit or proceeding  challenging such
acts of decisions and in connection with any appeal thereon  including the costs
of settlement.  This indemnification obligation shall survive the termination of
the Executive's employment hereunder.

     13.  Waiver of Breach of  Violation  Not Deemed  Continuing.  The waiver by
either party of a breach or violation of any provision of this  Agreement  shall
not operate as or be construed to be a waiver of any subsequent breach hereof.

     14.  Notices.  Any and all notices  required or permitted to be given under
this Agreement will be sufficient if furnished in writing,  personally delivered
or sent by certified mail, return receipt requested as follows:

                 To Executive: Ron Johnson
                               1106 La Paloma Court
                               Southlake, Texas 76092

<PAGE>

           To the Corporation: Mortgage Assistance Center Corporation
                               2614 Main Street
                               Dallas, Texas 75226

     15. Securities Law Compliance. The Executive represents and agrees that any
shares Executive  receives under this Agreement are and shall be for Executive's
own account and with no  intention  of  reselling  or  distributing  the shares,
except as permitted  under this Agreement and any  applicable  federal and state
securities laws. The Corporation shall have the right to take any actions it may
deem necessary or appropriate to ensure that the shares granted to the Executive
complies with applicable federal and state securities laws.

     16. Tax  Liability.  The  Corporation  may  withhold  from any payment made
pursuant to this  Agreement  any  federal,  state or local taxes  required to be
withheld from such payment. The Executive shall make such arrangements as may be
required or be satisfactory to the Corporation (in its sole  discretion) for the
payment of any tax  withholding  obligations  that arise in connection  with the
granting of shares under this Agreement.  The Corporation  shall not be required
to issue any shares under this Agreement until such obligations are satisfied.

     17.  Governing  Law. This  Agreement  shall be  interpreted,  construed and
governed according to the laws of the State of Texas. The parties hereto consent
to jurisdiction and venue in the Texas state courts in Dallas,  Texas and United
States District Court for the Northern District of Texas, Dallas Division.

     18. Section Headings.  The Section headings contained in this Agreement are
for  convenience  only and  shall in no manner  be  construed  as a part of this
Agreement.

     19. Entire Agreement.  This Agreement  supersedes all prior discussions and
agreements between the Corporation, any of its officers,  directors,  employees,
or agents,  and Executive with respect to all mattes  relating to the employment
by the Corporation of Executive and all other matters contained herein, and this
Agreement  constitutes the sole and entire agreement with respect  thereto.  Any
representation,  inducement,  promise or  agreement,  whether  oral or  written,
between the Corporation, any of its officers,  directors,  employees, or agents,
and Executive, which is not embodied herein, shall be of no force or effect.

     20.  Successors  and Assignors.  This Agreement  shall be binding upon, and
shall inure to the benefit of, the  Corporation and Executive and the respective
heirs, personal and legal representatives, successors, and assigns of each.

     21.  Severability.  If any term, covenant or condition of this Agreement or
the application  thereof to any person or circumstance  shall, to any extent, be
invalid or  unenforceable  the remainder of this Agreement or the application of
such terms,  covenants  and  conditions to persons or  circumstances  other than
those as to which it is held invalid or unenforceable  shall be affected thereby
and each term,  covenant or  condition of this  Agreement  shall be valid and be
enforced to the fullest extent permitted by law.

<PAGE>

     IN WITNESS WHEREOF,  the Corporation has hereunder caused this Agreement to
be executed by its duly authorized offices and seals to be hereunto affixed, and
Executive  has  hereunto  set  Executive's  hand and  seal,  all  being  done in
duplicate  originals  delivered to each party as of the day and year first above
written.

ACKNOWLEDGED AND AGREED TO:

     "EXECUTIVE":
                 ----------------------------------------
                                RON JOHNSON

     "CORPORATION": MORTGAGE ASSISTANCE CENTER CORPORATION:

        ---------------------------------------
     By: (print name)                              Title:
                     ----------------------------        -----------------------

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