Document:

Exhibit 10.36

 

AMENDMENT NO. 2 TO

FOURTH
AMENDED AND RESTATED LOAN AGREEMENT

 

AGREEMENT,
made as of the 9th day of May, 2003, by and among:

 

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

 

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

 

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

 

SUNTRUST
BANK, as Syndication Agent, WACHOVIA BANK, NATIONAL ASSOCIATION,
as Documentation Agent and FLEET SECURITIES, INC., as Lead Arranger.

 

W I T N E S S E T H:

 

WHEREAS:

 

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

 

(B)                                The
Borrower wishes to amend the Original Loan Agreement to, among other things,
(i) extend the A Commitment Termination Date to May 7, 2006, and (ii)
extend the B Commitment Termination Date to May 7, 2004, and the Banks and
the Agent are willing to amend and supplement the Original Loan Agreement on
the terms and conditions hereinafter set forth;

 

(C)                                Simultaneously
with the execution and delivery hereof, each of The Bank of Nova Scotia and
Bank of Scotland (each, a “New Bank” and together, the “New Banks”)
has agreed to make loans to the Borrower in the amounts set forth opposite its
name on its signature page hereto and the Borrower desires to accept the Total
Commitment of each New Bank and to cause the New Banks to be added as a “Bank”
to the Original Loan Agreement as amended hereby, and the Agent and the Banks
are agreeable to the addition of the New Banks;

 

 

(D)                               Certain
of the Existing Banks desire to change their respective Total Commitment (as
between its A Commitment and B Commitment) to the amounts set forth opposite
its name on its signature page hereto and the Borrower desires to accept such
changes in the Total Commitment of each of them; and

 

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

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

Article
1.                                            Changes
in Total Commitments.

 

Section
1.1                             Total
Commitments.  From and after the
date hereof, for purposes of the Loan Agreement, the Total Commitment of each
Bank shall be the sum of the amounts set forth opposite each Bank’s name on the
signature pages hereto as the same may be reduced pursuant to the terms of the
Loan Agreement, and, with respect to each Bank (other than the New Banks) such
amount shall supersede and be deemed to amend the amount of such Bank’s
respective Total Commitment as set forth opposite its name on the signature
pages to the Original Loan Agreement.

 

Section
1.2                             New
Banks.  Each New Bank agrees
with the Borrower, the Banks and the Agent that (i) it will abide by the terms
of the Original Loan Agreement, as amended hereby, and (ii) the Loan Agreement
shall be binding upon, inure to the benefit of, and be enforceable by and
against it.

 

Section
1.3                             Adjustment
of Outstanding Loans.  If any
Loans are outstanding under the Original Loan Agreement on the date hereof, the
Banks shall on the date hereof, at the direction of the Agent, make appropriate
adjustments among themselves in order to insure that the amount (and type) of
the Loans outstanding to the Borrower from each Bank under the Loan Agreement
(as of the date hereof) are proportionate to the aggregate amount of all of the
Total Commitments, after giving effect to the additional Total Commitment of
the New Banks and the change of the amounts of the Total Commitment of certain
of the Banks.  The Borrower agrees and
consents to the terms of this Section 1.2.

 

Article
2.                                            Amendments
to Original Loan Agreement; First Substituted Notes.

 

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

 

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

 

(b)                                 The
definition of “A Commitment Termination Date” appearing in Article 1 is amended
by deleting the date “February 11, 2005” and substituting therefor the
date “May 7, 2006”.

 

2

 

(c)                                  The
definition of “B Commitment Termination Date” appearing in Article 1 is amended
by deleting the date “May 12, 2003” and substituting therefor the date
“May 7, 2004”.

 

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

 

“(a)                            The
A Loans made by each Bank shall be evidenced by a single promissory note of the
Borrower (each, a “First Substituted A Note”  and,
collectively, the “First Substituted A Notes”) in
substantially the form of Exhibit A-1 annexed to Amendment No. 2 to Fourth
Amended and Restated Loan Agreement dated as of May 9, 2003 by and among
the Borrower, the banks signatory thereto and the Agent (“Amendment No. 2”).  Each First Substituted A Note
shall be dated the date of Amendment No. 2, shall be payable to the order of
such Bank in a principal amount equal to such Bank’s A Commitment as in effect
on the date of Amendment No. 2 and shall otherwise be duly completed. All A
Loans made by each Bank hereunder and all payments and prepayments made on
account of the principal thereof, and all conversions of such A Loans shall be
recorded by such Bank on the schedule attached to the relevant First
Substituted A Note (provided that any failure by such Bank to make any such
endorsement shall not affect the obligations of the Borrower hereunder or under
such First Substituted A Note in respect of such A Loans).

 

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

 

(c)                                  The
Swing Line Loans made by the Swing Line Lender shall be evidenced by a single
promissory note of the Borrower (the “First Substituted Swing Line Note”)
substantially in the form of Exhibit A-3 annexed to Amendment No. 2.  The First Substituted Swing Line Note shall
be dated the date of Amendment No. 2, shall be payable to the order of the
Swing Line Lender in a principal amount equal to the Swing Line Loan Commitment
and shall be otherwise duly completed. All Swing Line Loans made by the Swing
Line Lender hereunder and all payments and prepayments on account of the
principal thereof shall be recorded by the Swing Line Lender on the schedule
attached to the First Substituted Swing Line Note (provided, that any
failure by the Swing Line Lender

 

3

 

to make such endorsement shall not affect the
obligations of the Borrower hereunder or under the First Substituted Swing Line
Note).”

 

(e)                                  Subsection
6.9(e) is deleted in its entirety and there is substituted therefor the
following:

 

“(e)                            With
respect to the Borrower, Paid-in-Capital in NCB Financial Corporation, a
Delaware corporation, in an amount not greater than twenty-five (25%) percent
of Consolidated Adjusted Net Worth.”

 

(f)                                    Subsection
6.9(f) is deleted in its entirety and there is substituted therefor the
following:

 

“(f)                              With
respect to the Borrower at all times, Investments in Subsidiaries (other than
as set forth in subsection 6.9(e) above and excluding SPV’s and secured loans
to NCB Capital) in an aggregate amount with respect to all such Subsidiaries of
not greater than fifteen (15%) percent of Consolidated Adjusted Net Worth.”

 

(g)                                 Schedule
7.1 to the Original Loan Agreement is amended by adding the following sentence
at the end of paragraph 2 set forth therein:

 

“In addition, the
Borrower may make voluntary prepayments of the Class A Notes beginning in 2003
in an amount not to exceed $1,000,000 in any fiscal year, if such prepayment(s)
would not otherwise constitute an Event of Default under Section 8.5 hereof.”

 

Section
2.2                                   In
order to evidence the Loans and the Swing Line Loan, as amended hereby, the
Borrower shall execute and deliver to each Bank, as the case may be,
simultaneously with the execution and delivery hereof, promissory notes payable
to the order of such Bank in substantially the form of Exhibits A-1, A-2 and
A-3 (in the case of the Swing Line Lender) annexed hereto (hereinafter referred
to individually as a “First Substituted Note”  and collectively as the “First
Substituted
Notes”).  Each
of the Banks (other than the New Banks) shall, upon the execution and delivery
by the Borrower of its applicable First Substituted Notes as herein provided,
mark the Notes delivered to it in connection with the Original Loan Agreement
“Replaced by First Substituted Note” and return them to the Borrower.

 

Section
2.3                                   (a)                            All
references in the Original Loan Agreement or any other Loan Document to the
“Loan(s)”, the “A Note(s)”, the “B Note(s)”, the “Swing Line Note”, the
“Note(s)” and the “Loan Documents” shall be deemed to refer respectively, to
the Loan(s) as amended hereby, the First Substituted A Note(s), the First
Substituted B Note(s), the First Substituted Swing Line Note, the First
Substituted Note(s) and the Loan Documents as defined in the Original Loan
Agreement together with, and as amended by, this Amendment No. 2, the First
Substituted Notes and all agreements, documents and instruments delivered
pursuant thereto or in connection therewith.

 

4

 

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

 

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

 

Article
3.                    Representations
and Warranties.

 

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

 

Article
4.                    Conditions
to Effectiveness of this Agreement.

 

This Amendment No. 2 to Fourth Amended and Restated
Loan Agreement shall become effective on the date of the fulfillment (to the
satisfaction of the Agent) of the following conditions precedent:

 

(a)                                  This
Amendment No. 2 shall have been executed and delivered to the Agent by a duly
authorized representative of the Borrower, the Agent and each Bank.

 

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

 

(c)                                  The
Agent shall have received a Compliance Certificate from the Borrower dated the
date hereof and the matters certified therein, including, without limitation,
that after giving effect to the terms and conditions of this Amendment No. 2,
no Default or Event of Default shall exist, shall be true.

 

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

 

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

 

(i)                                     Copies
of all corporate action taken by the Borrower to authorize the execution,
delivery and performance of this Amendment No. 2, the First Substituted Notes
and the transactions contemplated hereby, certified by its secretary;

 

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

 

5

 

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

 

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

 

Article
5.                                            Miscellaneous.

 

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

 

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

 

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

 

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

 

 

	
   

  	
  NATIONAL CONSUMER COOPERATIVE BANK,

  
	
   

  	
  D/B/A NATIONAL COOPERATIVE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard L. Reed

  
	
   

  	
   

  	
  Title:

  	
  Managing Director, Chief Financial

  
	
   

  	
   

  	
   

  	
  Officer and Treasurer

  
					

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGES]

 

6

 

	
  A Commitment

  	
  FLEET NATIONAL BANK,

  
	
   

  	
  as
  Administrative Agent and as a Bank,

  
	
  $22,500,000

  	
  and
  as Swing Line Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  B Commitment

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas J. Levy

  
	
  $22,500,000

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  A Commitment

  	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
  Cayman
  Islands Branch

  	
   

  
	
  $12,500,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  $12,500,000

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  COOPERATIEVE CENTRALE

  	
   

  
	
   

  	
  RAIFFEISEN-BOERENLEENBANK

  	
   

  
	
  $12,500,000

  	
  B.A.,
  “Rabobank International”,

  	
   

  
	
   

  	
  New
  York Branch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  $12,500,000

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
  A Commitment

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
  $17,500,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
  $17,500,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
  as
  Documentation Agent and as a Bank

  
	
  $20,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $20,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  ALLFIRST BANK, a division of

  
	
   

  	
  Manufacturers and Traders Trust Co.

  
	
   

  	
   

  	
   

  	
   

  
	
  $12,500,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
  $12,500,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  UNION BANK OF CALIFORNIA, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
  $10,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
  $10,000,000

  	
   

  	
   

  	
   

  

 

 

	
  A Commitment

  	
  SUNTRUST BANK, as Syndication Agent

  
	
   

  	
  and
  as a Bank

  
	
  $20,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $20,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  ISRAEL DISCOUNT BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  
	
  $5,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B
  Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $5,000,000

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  CREDIT LYONNAIS NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
  $17,500,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $17,500,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  KBC BANK N.V.

  	
   

  

 

3

 

	
  $10,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B
  Commitment

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  $10,000,000

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  THE BANK OF NOVA SCOTIA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $10,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $10,000,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A Commitment

  	
  BANK OF SCOTLAND

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $5,000,000

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $5,000,000

  	
   

  	
   

  	
   

  

 

 

EXHIBITS

 

A-1                            Form
of First Substituted A Note

A-2                            Form
of First Substituted B Note

A-3                            Form
of First Substituted Swing Line Note

 

4

 

EXHIBIT A-1 TO AMENDMENT NO. 2

TO FOURTH
AMENDED AND RESTATED LOAN AGREEMENT

BY AND
AMONG

NATIONAL
CONSUMER COOPERATIVE BANK

AND

CERTAIN
BANKS NAMED THEREIN

AND

FLEET
NATIONAL BANK, AS ADMINISTRATIVE AGENT FOR THE BANKS

 

FORM OF FIRST SUBSTITUTED A NOTE

 

	
  [A Commitment Amount]

  	
   

  	
  Due May 7, 2006

  

 

FOR
VALUE RECEIVED, NATIONAL CONSUMER COOPERATIVE BANK D/B/A NATIONAL COOPERATIVE
BANK (the “Borrower”), hereby promises to pay to the
order of
[                                 ]
(the “Bank”)
by payment to the Agent for the account of the Bank the principal sum of
[amount of A Commitment]
($                  )
Dollars (or such lesser amount as shall equal the aggregate unpaid principal
amount of the A Loans made by the Bank under the Loan Agreement hereinafter
defined, shown on the schedule annexed hereto and any continuation thereof), in
lawful money of the United States of America and in immediately available funds
on the date or dates determined as provided in the Loan Agreement but in no
event later than May 7, 2006.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

This A Note has been executed and delivered this 9th
day of May, 2003 in New York, New York, and shall be construed in accordance
with and governed by the internal laws of the State of New York.

 

 

	
   

  	
  NATIONAL CONSUMER COOPERATIVE BANK

  D/B/A NATIONAL COOPERATIVE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

2

 

SCHEDULE TO FIRST SUBSTITUTED A NOTE

MADE BY
NATIONAL CONSUMER COOPERATIVE BANK

IN FAVOR
OF
                    

 

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

 

 

	
  Date Made

  	
   

  	
  Principal

  Amount

  of Loan

  	
   

  	
  Due Date

  of Loan

  	
   

  	
  Interest
  Rate

  on Loan

  	
   

  	
  Amount of

  Payment

  	
   

  	
  Balance

  Outstanding

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A-2 TO AMENDMENT NO. 2

TO FOURTH
AMENDED AND RESTATED LOAN AGREEMENT

BY AND
AMONG

NATIONAL
CONSUMER COOPERATIVE BANK

AND

CERTAIN
BANKS NAMED THEREIN

AND

FLEET
NATIONAL BANK, AS ADMINISTRATIVE AGENT FOR THE BANKS

 

FORM OF FIRST SUBSTITUTED B NOTE

 

	
  [B Commitment Amount]

  	
   

  	
  Due May 7, 2004

  

 

FOR
VALUE RECEIVED, NATIONAL CONSUMER COOPERATIVE BANK D/B/A NATIONAL COOPERATIVE
BANK (the “Borrower”), hereby promises to pay to the
order of
[                                 ]
(the “Bank”)
by payment to the Agent for the account of the Bank the principal sum of
[amount of B Commitment]
($                )
Dollars (or such lesser amount as shall equal the aggregate unpaid principal
amount of the B Loans made by the Bank under the Loan Agreement hereinafter
defined, shown on the schedule annexed hereto and any continuation thereof), in
lawful money of the United States of America and in immediately available funds
on the date or dates determined as provided in the Loan Agreement but in no
event later than May 7, 2004.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

This B Note has been executed and delivered this 9th
day of May, 2003 in New York, New York, and shall be construed in accordance
with and governed by the internal laws of the State of New York.

 

 

	
   

  	
  NATIONAL CONSUMER COOPERATIVE BANK

  D/B/A NATIONAL COOPERATIVE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

2

 

 

SCHEDULE
TO FIRST SUBSTITUTED B NOTE

MADE BY NATIONAL CONSUMER COOPERATIVE BANK

IN FAVOR
OF
                           

 

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

 

	
  Date Made

  	
   

  	
  Principal

  Amount

  of Loan

  	
   

  	
  Due Date

  of Loan

  	
   

  	
  Interest
  Rate

  on Loan

  	
   

  	
  Amount of

  Payment

  	
   

  	
  Balance

  Outstanding

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A-3 TO AMENDMENT NO. 2

TO FOURTH AMENDED AND RESTATED LOAN
AGREEMENT

BY AND AMONG

NATIONAL CONSUMER COOPERATIVE BANK

CERTAIN BANKS NAMED THEREIN

AND

FLEET NATIONAL BANK, AS
ADMINISTRATIVE AGENT FOR THE BANKS

 

FORM OF FIRST SUBSTITUTED SWING LINE
NOTE

 

	
  $20,000,000

  	
   

  	
  Due
  May 7, 2004

  

 

FOR
VALUE RECEIVED, NATIONAL CONSUMER COOPERATIVE BANK D/B/A NATIONAL COOPERATIVE
BANK (the “Borrower”), hereby promises to pay to the
order of
FLEET NATIONAL BANK (the “Bank”) by payment to the Bank the
principal sum of TWENTY MILLION DOLLARS  ($20,000,000) (or such lesser amount as
shall equal the aggregate unpaid principal amount of the Swing Line Loans made
by the Bank under the Loan Agreement hereinafter defined, shown on the schedule
annexed hereto and any continuation thereof), in lawful money of the United
States of America and in immediately available funds on the date or dates
determined as provided in the Loan Agreement but in no event later than
May 7, 2004.

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

This Swing Line Note has been executed and delivered
this 9th day of May, 2003 in New York, New York, and shall be construed in
accordance with and governed by the internal laws of the State of New York.

 

 

	
   

  	
  NATIONAL CONSUMER COOPERATIVE BANK

  D/B/A NATIONAL COOPERATIVE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

2

 

SCHEDULE TO FIRST SUBSTITUTED SWING
LINE NOTE

MADE BY
NATIONAL CONSUMER COOPERATIVE BANK

IN FAVOR
OF FLEET NATIONAL BANK

 

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

 

 

	
  Date Made

  	
   

  	
  Principal

  Amount

  of Loan

  	
   

  	
  Due Date

  of Loan

  	
   

  	
  Interest
  Rate

  on Loan

  	
   

  	
  Amount of

  Payment

  	
   

  	
  Balance

  Outstanding

  	
   

  	
  Notation

  Made ByEXHIBIT 10.1

                             SUBSCRIPTION AGREEMENT

         This Subscription Agreement is made by and between Avenue Group, Inc.
(the "Seller" or the "Company") and Shaya Boymelgreen Trust, located at 535 Dean
Street, Suite 908 Brooklyn, New York, 11217 (the "Purchaser"), as of this ___
day of April, 2003 (the "Execution Date") who is subscribing hereby to purchase
two convertible promissory notes from the Seller, in the original principal
amount of Three Hundred Thousand Dollars ($300,000.00) (the "Three Hundred
Thousand Dollar Note") and One Million Dollars ($1,000,000.00) (the "One Million
Dollar Note"), respectively (collectively, the "Notes"), payable as follows: (i)
the Three Hundred Thousand Dollar Note shall be payable as of the date hereof
(the "Initial Payment"), and (ii) the One Million Dollar Note shall be payable
within thirty (30) days of the date hereof (the "Final Payment") (the Initial
Payment and Final Payment shall be collectively referred to herein as the
"Purchase Price").

         Purchaser acknowledges and understands that the sale of the Notes and
the common stock which may be issued upon the conversion thereof (collectively,
the "Securities") is not covered by an effective Registration Statement pursuant
to the United States Securities Act of 1933, as amended (the "Act"). The
Securities have been offered and sold by the Company in reliance upon an
exemption from the registration requirements of the Act pursuant to Section 4920
thereof. Accordingly, the reoffer and resale of the Notes by the undersigned
will be restricted pursuant to the Act.

         In consideration of the Seller's agreement to sell the Notes as
provided for herein, the Purchaser agrees and represents as follows:

A.       SUBSCRIPTION

The Purchaser hereby subscribes to purchase the Notes for the Purchase Price
(the "Subscription"). Payment of the Purchase Price shall be as follows: (i)
simultaneously with the execution of this Subscription Agreement, the Purchaser
is paying and delivering to the Seller the Initial Payment as payment for the
Three Hundred Thousand Dollar Note and (ii) Thirty (30) days from the date
hereof, Purchaser shall pay and deliver to the Seller the Final Payment as
payment for the One Million Dollar Note. The Initial Payment and the Final
Payment shall be payable by check or wire transfer (the "Payment"). Upon
delivery of the executed Subscription Agreement to the Seller, the Purchaser's
commitment to pay the entire Purchase Price is irrevocable and cannot be
withdrawn. In connection with the foregoing, Purchaser understands that until
and unless the entire Purchase Price has been paid, Purchaser may not elect to
convert into common stock of the Company all or any portion of the Three Hundred
Thousand Dollar Note. Notwithstanding the foregoing, the determination to accept
or reject this Subscription shall be in the sole discretion of the Seller and
without any input from any Purchaser or any representative, agent or advisor of
the Purchaser.

B.       REPRESENTATIONS AND WARRANTIES

         1. The Purchaser understands that the Securities are being offered and
sold by the Seller under an exemption from registration provided for under
section 4(2) of the Act, that this Subscription was unsolicited, and except for
the Exhibits hereto and as set forth in subsection (b) below, no other offering
literature or prospectus have been provided, that this transaction has not been
scrutinized by the SEC or by and any administrative agency charged with
administration of the securities laws of any state (except some states where the
transaction might be registered). As a material inducement to the Seller in
connection with its consideration as to whether to enter into this Subscription
Agreement, the Purchaser hereby represents and warrants to, and agrees with the
Seller as follows:

<PAGE>

             (a) The Securities are being purchased for the Purchaser's own
account, for investment purposes only, and not for the account of any other
person, and not with a view to reoffer, distribute, assign, or resell to others
or to fractionalization in whole or in part and that the offering and sale of
the Securities is intended to be exempt from registration under the Act. In
furtherance thereof, the Purchaser represents, warrants, and agrees as follows:
(i) no other person has or will have a direct or indirect beneficial interest in
such Securities and the Purchaser will not sell, hypothecate, or otherwise
transfer the Securities except in accordance with the Act and applicable state
securities laws or unless, in the opinion of counsel for the Seller, an
exemption from the registration requirements of the Act and such laws is
available; (ii) the Company is under no obligation to register the Securities on
behalf of the Purchaser or to assist the Purchaser in complying with any
exemption from registration; (iii) the Purchaser's Subscription is not as a
result of any general solicitation or public advertisement by the Company; and
(iv) Purchaser is not an "affiliate" of the Company as such term is defined
under Regulation 501(b) of the Act and accordingly, does not directly or
indirectly through one or more intermediaries, control or is controlled by, or
is under common control with the Company.

             (b) The Purchaser has been furnished with, acknowledges receipt of
and has carefully read the Company's Confidential Offering Memorandum dated
November 22, 2002 (the "Offering Memorandum") which an affiliate of the
Purchaser participated in and the following documents, which the Company has
filed with the SEC:

              (i)    Form 10-KSB Report for the Year Ended December 31, 2002
                     (the "Form 10-KSB Report");

              (ii)   Form 8-K/A Report filed March 14, 2002;

              (iii)  Form 8-K Report filed January 18, 2002;

              (iv)   Form 8-K Report filed February 12, 2002;

              (v)    Form 8-K Report filed February 25, 2002;

              (vi)   Form 10-QSB Report for the Quarter Ended March 31, 2002;

              (vii)  Form 8-K Report filed May 2, 2002;

              (viii) Form 10-QSB Report for the Quarter Ended June 30, 2002;

              (ix)   Form 8-K Report filed October 17, 2002;

              (x)    Form 8-K Report filed November 13, 2002;

              (xi)   Form 10-QSB Report for the Quarter Ended September 30,
                     2002;

              (xii)  Form 8-K Report filed November 25, 2002; and

              (xiii) Form 8-K Report filed December 20,2002.

Items (i) through (xiii) are collectively referred to as the "Disclosure
Documents."

<PAGE>

             (c) In evaluating the suitability of an investment in the Company,
the Purchaser has not relied upon any representations or other information
(whether oral or written) from the Company or any of its agents other than as
set forth in the Disclosure Documents and no oral or written representations
have been made or oral or written information furnished to the Purchaser or his
advisors, if any, in connection with the offering of the Securities which were
in any way inconsistent with the Disclosure Documents or this Subscription
Agreement.

             (d) The Purchaser recognizes the Company (i) has only been
organized since 1999 and that it has little financial or operating history, (ii)
has never been profitable and does not expect to be profitable in the
foreseeable future, (iii) has extremely limited financial resources and will be
dependant on proceeds from the sale of the Securities and other financings for
its working capital for the foreseeable future, and (iv) that investment in the
Company involves substantial risks.

             (e) The Purchaser has carefully considered and has, to the extent
the Purchaser believes such discussion necessary, discussed with the Purchaser's
professional legal, tax and financial advisers the suitability of an investment
in the Company for the Purchaser's particular tax and financial situation and
the Purchaser has determined that the Notes are a suitable investment for the
Purchaser.

             (f) All information which the Purchaser has provided to the Seller
concerning the Purchaser and the Purchaser's financial position set forth in the
Investor's Questionnaire, attached hereto as Appendix "1" is correct and
complete as the date set forth therein, and if there should be any change in
such information prior to the Purchaser's acceptance as a security holder of the
Company the Purchaser will immediately provide such information to the Seller
and will promptly send confirmation of such information to the Seller.

             (g) If this Subscription Agreement is executed and delivered on
behalf of a partnership, corporation, trust, or estate, (i) the person executing
this Subscription Agreement on behalf of the Purchaser has been duly authorized
and is duly qualified (A) to execute and deliver this Subscription Agreement and
all other instruments executed and delivered on behalf of such partnership,
corporation, trust, or estate in connection with the purchase of the Securities
and (B) to purchase and hold the Securities, and (ii) the signature of the
person executing this Subscription Agreement on behalf of the Purchaser is
binding upon such partnership, corporation, trust, or estate, and (iii) such
entity has not been formed for the specific purpose of acquiring the Securities.

             (h) The Purchaser has had the opportunity to consult with advisors,
and recognizes that the Seller' counsel, accountants and other advisors have not
represented and do not represent the Purchaser's interest in an investment in
the Company.

             (i) The Purchaser acknowledges and agrees that it is purchasing the
Securities from the Seller without the involvement of the Company and that,
except for the information contained in the Disclosure Documents has not
received any information concerning the Company.

         2. The foregoing representations and warranties are true and accurate
as of the date hereof, shall be true and accurate as of the date of the
acceptance hereof by the Seller and shall survive thereafter. If such
representations and warranties shall not be true and accurate in any respect,
the Purchaser will, prior to such acceptance, give written notice of such fact
to the Seller specifying which representations and warranties are not true and
accurate and the reasons therefore.

         3. The Purchaser shall indemnify and hold harmless the Company and its
officers, employees, registered representatives, directors, or control persons
of any such entity who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal,

<PAGE>

administrative or investigative, by reason of or arising from any actual or
alleged misrepresentation or misstatement of facts or omission to represent or
state facts made by the Purchaser to the Seller concerning himself or his
financial position in connection with the offering or sale of the Securities
which is not remedied by timely notice to the Company as provided above, against
losses, liabilities and expenses for which the Company or any of its officers,
employees, registered representatives, directors, or control persons of any such
entity have not otherwise been reimbursed (including attorneys' fees, judgments,
fines and amounts paid in settlement) as actually and reasonably incurred by
such person or entity in connection with such action, suit, or proceeding.

         4. Representations of the Seller

         The Seller hereby represents and warrants to, and agree with the
Purchaser as follows:

                  (a) The Seller has full power authority to enter into this
Agreement and to perform its obligations hereunder. This Agreement constitutes a
valid and legally binding obligation of the Seller, enforceable in accordance
with its terms and conditions except to the extent the same may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting the enforcement of creditors' rights or by general equitable
principles.

                  (b) The Seller is the legal and beneficial owner of the
Securities and upon consummation of the transactions contemplated hereby shall
deliver good title to the Securities to the Purchaser free and clear of ay liens
or encumbrances, save and except any restrictive legends required by the state
and federal securities laws.

                  (c) The Seller represents and warrants to the Purchaser that
it does not possess any material non-public information regarding the Company,
except as set forth in the Disclosure Documents which have been delivered to the
Purchaser.

C.      INVESTOR INFORMATION

         The Seller will only accept this subscription from the Purchaser if the
Purchaser meets certain suitability standards as an "accredited investor" as
such term is defined under Rule 501 (a) of the Act. Therefore, the Seller needs
to have you complete, sign and return with this Subscription Agreement and the
Investor's Questionnaire attached hereto and made a part hereof as Appendix "1".

D.      UNDERSTANDINGS

         1. The Purchaser understands, acknowledges and agrees with the Seller
as follows:

                  (a) This subscription may be rejected, in whole or in part, by
the Seller in its sole discretion.

                  (b) This subscription is and shall be irrevocable, except that
the Purchaser shall have no obligations hereunder in the event that this
subscription is rejected for any reason.

                  (c) No federal or state agency has made any finding or
determination as to the fairness of this offering for investment, nor any
recommendation or endorsement of the Securities.

                  (d) Currently, there is only a limited public market for the
Company's common stock and there is no certainty that a more active market will
ever develop. There can be no assurance that the Purchaser will be able to sell
or dispose of the Securities. Moreover, no assignment, sale, transfer, exchange
or other disposition of the Securities can be made other than in accordance with
all applicable securities laws. It is

<PAGE>

understood that in order not to jeopardize his exempt status of this Sale under
the Act, the transferee may at a minimum be required to fulfill the investor
suitability requirements established in the Questionnaire.

                  (e) There can be no assurance as to the federal or state tax
results of an investment in the Securities.

                  (f) Any information which the Purchaser has received
concerning the Company which is not contained in the Disclosure Documents and is
not otherwise available to the public shall be deemed to be confidential and
nonpublic, and all such information shall be kept in confidence by the Purchaser
and shall neither be used by the Purchaser to the Purchaser's personal benefit
(other than in connection with his subscription for the Securities) nor
disclosed to any third party for any reason; provided, that this obligation
shall not apply to any such information which (i) is part of the public
knowledge or literature and readily accessible at the date hereof; (ii) becomes
part of the public knowledge or literature and readily accessible by publication
(except as a result of a breach of these provisions); or (iii) is received from
third parties (except third parties who disclose such information in violation
of any confidentiality agreements including, without limitation, any
Subscription Agreement they may have with the Company).

                  (g) The Purchaser has such knowledge and experience in
financial and business matters such that the Purchaser is capable of evaluating
the merits and risks of investment in the Company and of making an informed
investment decision.

                  (h) The Purchaser has had prior personal or business
relationships with the Company or its officers or directors or by reason of the
Purchaser's business or financial experience and has the capacity to protect the
Purchaser's own interest in connection with this transaction.

         2. The representations, warranties, understandings, acknowledgments and
agreements of Purchaser in this Agreement and in the Investor's Questionnaire
are true and accurate as of the date hereof, shall be true and accurate as of
the date of the acceptance hereof by the Company and shall survive thereafter.

E.       MISCELLANEOUS

         1. All pronouns and any variations thereof used herein shall be deemed
to refer to the masculine, feminine, singular, or plural as the identity of the
person or persons may require.

         2. Neither this Subscription Agreement nor any provisions hereof shall
be waived, modified, changed, discharged, terminated, revoked, or canceled
except by an instrument in writing signed by the party against whom any change,
discharge, or termination is sought.

         3. Notices required or permitted to be given hereunder shall be in
writing and shall be deemed to be sufficiently given when personally delivered
or sent by registered mail, return receipt requested, addressed to the other
party at the address of such party set forth in the Investor's Questionnaire, as
amended from time to time, or, in the case of the Purchaser, at the address
provided in this Subscription Agreement, or to such other address furnished by
notice given in accordance with this Article E.

         4. Failure of the Seller to exercise any right or remedy under this
Subscription Agreement or any other agreement between the Seller and the
Purchaser, or otherwise, or delay by the Seller in exercising such right or
remedy, will not operate as a waiver thereof. No waiver by the Seller will be
effective unless and until it is in writing and signed by the Seller.

         5. This Subscription Agreement shall be enforced, governed and
construed in all respects in accordance with the laws of the State of
California, as such laws are applied by California courts to agreements entered
into and to be performed in California and shall be binding upon the Purchaser,
the Purchaser's heirs, estate,

<PAGE>

legal representatives, successors and assigns and shall inure to the benefit of
the Seller and their successors and assigns. The parties hereto further agree to
submit any dispute with respect to this Subscription Agreement or the
Purchaser's purchase of the Securities to the State Courts of California located
in Los Angeles County who shall have exclusive jurisdiction over such matters.

         6. In the event that any provision of this Subscription Agreement is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any provision hereof which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision hereof.

         7. This Subscription Agreement along with the Appendix and Exhibits
hereto constitutes the entire agreement among the parties hereto with respect to
the subject matter hereof and supersedes any and all prior or contemporaneous
representations, warranties, agreements and understandings in connection
therewith. Except as otherwise provided in this Section E. 7, this Subscription
Agreement may be amended only by a writing executed by all parties hereto. No
party shall be liable or bound to the other in any manner by any warranties,
representations or covenant except as specifically set forth herein.

         8 Title to the Notes shall be taken as follows (circle one):

           (a)      Husband and Wife, as Community Property;

           (b)      Joint Tenants;

           (c)      Tenants in Common;

           (d)      Separate Property;

           (e)      Other (e.g., corporation, partnership, custodian trustee,
                    etc.):
                    ________________________________________________

         9. The terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the
parties hereto. Nothing in this Agreement, express or implied, is intended to
confer upon any party, other than the parties hereto, and their respective
successors and assigns, any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided herein.

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

         11. The titles of the paragraphs and subparagraphs of this Agreement
are for convenience and are not to be considered in construing this Agreement.

         12. Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon personal delivery or if
deposited the United States Post Office, be registered or certified mail, or via
facsimile with confirmation sent to the Seller at the address and facsimile
number shown below and to the Purchaser at its address or facsimile number
hereinafter shown below its signature or at such other address as such party may
designate by ten (10) days advance written notice to the other party.

                                   SELLER
                                   Avenue Group, Inc.
                                   15303 Ventura Boulevard
                                   Suite 900
                                   Sherman Oaks, CA 91403
                                   Attention: Jonathan Herzog

                                   PURCHASER  (at the address set forth above)

<PAGE>

         13. The warranties and representations of the Seller contained in or
made pursuant to this Agreement shall survive the executions and delivery of
this Agreement and the Closing hereunder.

<PAGE>

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

         This page constitutes the Signature Page for the Subscription
Agreement. The Purchaser represents to you that (a) the information contained
herein is complete and accurate on the date hereof and may be relied upon by you
and (b) the Purchaser will notify you immediately of any change in any of such
information occurring prior to the acceptance of the subscription and will
promptly send you written confirmation of such change. The Purchaser hereby
certifies that he has read and understands this Subscription Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Subscription
Agreement this _15__ day of APRIL, 2003.

                                       SELLER

                                       /s/ Jonathan Herzog____________
                                       Avenue Group, Inc.
                                       By:  Jonathan Herzog
                                       Its:  Executive Vice President

                                       PURCHASER

                                       /s/ Jeshayahu Boymelgreen
                                                (Signature)

                                       By:  Jeshayahu Boymelgreen

                                       Its: Trustee
                                       (Title of Authorized Signatory if
                                       Purchaser is a corporation, partnership
                                       or other entity)

                                       137177336
                                       -----------------------------------------
                                       Tax Identification Number or
                                       Social Security Number
`
                                       Address of Purchaser:
                                       535 Dean Street, Suite 908
                                       Brooklyn, New York, 11217

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS
THE SECURITIES ARE REGISTERED UNDER THE ACT OR AN EXEMPTION THERE FROM IS
AVAILABLE.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]