Document:

Prepared by R.R. Donnelley Financial -- Amendment to Agreements

  
 As of February 28, 2002 
  

	TO:
	 
	Purchasers of Units (each a “Lender” and collectively the “Lenders”) consisting of $3,810,000 principal amount of 15% Senior Secured Notes of World Wireless
Communications, Inc. (the “Company”). 
 

  
 Re:    Amendment of Agreements

  
 Gentlemen: 
  
 Reference is made
to the Loan Agreement between the Lenders and the Company dated as of May 17, 2001, as amended on August 7, 2001, effective as of May 17, 2001 (the “Agreement”), including each note issued pursuant thereto (individually the
“Note” and collectively the “Notes”). 
  
 For good and valuable consideration, the adequacy and sufficiency of
which is hereby acknowledged by the Lenders, and as an additional inducement for the Company to continue its offering of units of its preferred stock and warrants pursuant to the Confidential Private Placement Memorandum dated January 8, 2002, the
Company and each Lender agree as follows: 
  
 1.    Section 1 of each Note issued under the Agreement shall be
amended to substitute the maturity date of “June 30, 2002” for the maturity date of “February 28, 2002” now appearing therein with the same force and effect as if originally set forth therein, effective as of February 28, 2002.

  
 2.    Section 1.1(a) of the Loan Agreement shall be amended to read as follows effective as of February 28,
2002: 
  
 “ (a) Simultaneously with the execution and the delivery of this Agreement, Lancer Offshore, Inc. agrees to lend to
Borrower the aggregate sum of $2,250,000, of which (i) the sum of $1,125,000 shall be paid to Borrower upon the execution and the delivery of this Agreement and (ii) the sum of $1,125,000 shall be paid to Borrower on July 15, 2001, provided that
Borrower has raised the sum of $2,000,000 in equity from persons other than Michael Lauer and his affiliates, including, without limitation, Lancer Offshore Inc., Lancer Partners, L.P., and The Orbiter Fund Ltd.(such loan, together with any other
amounts loaned pursuant to this Agreement by any Lender from time to time, including that specified in Section 1.1 (b) hereof, with the consent of the parties hereto, up to a total sum of $5,000,000, shall be referred to collectively as the
“Loan”). The Loan shall be used solely by Borrower in the operation of its business as determined by the President of Borrower, subject to supervision thereof by Board of Directors of Borrower. As of February 28, 2002, Lancer Offshore,
Inc. loaned the Borrower the principal amount of $3,160,000. The Loan shall be repaid on June 30, 2002 unless it is mandatorily converted into shares of Borrower’s Common Stock before that date as provided in Section 1.5 hereof.”

 

 1 

  
 3.    Section 1.1(b) of the Loan Agreement shall be amended to read as
follows effective as of February 28, 2002: 
  
 “(b) On August 7, 2001 Lancer Partners L.P. agrees to lend to Borrower the
aggregate sum of $875,000, of which (i) the sum of $350,000 shall be paid to Borrower on August 7, 2001 and (ii) the sums of $275,000 shall be paid to Borrower on or about September 15, 2001, (but no later than September 20, 2001), and $250,000 on
or about October 15, 2001 (but no later than October 20, 2001), or such other amount mutually agreed to by the parties hereto, provided that Borrower has raised the sum of $1,500,000 in equity from persons other than Michael Lauer and his
affiliates, including, without limitation, Lancer Offshore Inc., Lancer Partners, L.P., and The Orbiter Fund Ltd, on or before October 15, 2001 The Loan shall be used solely by Borrower in the operation of its business as determined by the President
of Borrower, subject to supervision thereof by the Board of Directors of Borrower. The initial $350,000 principal amount of the Loan shall be repaid on June 30, 2002, and the subsequent tranches of $275,000 and $250,000 of the Loan if and when made
shall be repaid on June 30, 2002, unless such amounts are mandatorily converted into shares of Borrower’s Common Stock before that date as provided in Section 1.5 hereof. As of February 28, 2002, Lancer Partners L.P. loaned the Borrower the
principal amount of $650,000.” 
  
 4.    Section 1.5 of the Loan Agreement shall be amended to read as
follows, effective as of February 28, 2002: 
  
 “ (a) The Loan shall be mandatorily converted into shares of the Common Stock
of Borrower at the rate of one share per each $0.05 principal amount of debt, including interest (subject to adjustment for stock dividends, stock splits and reverse stock splits, if any) immediately upon (i) the approval of such conversion by
Borrower’s shareholders at a meeting of shareholders held for such purpose (among other purposes) and (ii) Borrower’s receipt of $3,810,000 in equity from persons other than Michael Lauer and his affiliates, including without limitation,
Lancer Offshore, Inc., Lancer Partners L.P. or The Orbiter Fund Ltd., on or before June 30, 2002.” 
  
 5.    The Borrower agreed to issue 7,120,000 shares of its Common Stock to the Lenders, to be divided pro rata between them based on their respective share of the total loans of $3,810,000 to the Borrower as of February
28, 2002, subject to the approval of such issuance by the Borrower’s stockholders at a meeting in accordance with applicable American Stock Exchange rules. In the event that (i) such stockholder approval is not obtained on or before July 31,
2002 or (ii) the Borrower fails to issue such shares within 30 days after such approval is obtained due to its fault, the Borrower agrees to pay the sum of $356,000 to the Lenders, pro rata as set forth above, in full satisfaction thereof, and such
payment shall be made within 30 days after the later to occur of such two events. 
  
 In consideration of the foregoing, each
Lender unconditionally acknowledges that the Company is not in default under the Loan Agreement, any of the Notes or any other agreement which is a part of the Loan Agreement. 
  
 Except as amended as set forth herein, the Agreement, including, without 
 

 2 

  
 limitation, the Amended and Restated Pledge/Security Agreement shall continue in full force and effect in accordance
with its terms. 
  
 If this letter accurately sets forth our understanding, please sign your name below and return your signed
original to us immediately. 
  

	 	Ve
	ry truly yours, 
 

  

	 	WO
	RLD WIRELESS COMMUNICATIONS, INC. 
 

  

	 	/s/  
	  David D. Singer, President 
 

  
 LANCER OFFSHORE,
INC.                                        
                                        
         LANCER PARTNERS L.P. 
 /s/    Michael L.
Lauer                                       
                                        
                 /s/    Michael L. Lauer 
 
Michael Lauer,
Manager                                       
                                        
                      Michael Lauer, Manager 
 

 3<PAGE>

Exhibit 10.1
------------

       FIRST AMENDMENT TO SECOND RESTATED AND AMENDED ACCOUNTS RECEIVABLE
                              MANAGEMENT AGREEMENT

     FIRST AMENDMENT TO SECOND RESTATED AND AMENDED ACCOUNTS RECEIVABLE
MANAGEMENT AGREEMENT, dated as of August 8, 2001 (this "Amendment"), to the
                                                        ---------
Existing Credit Agreement (as hereinafter defined), by and between GMAC
COMMERCIAL CREDIT LLC, as successor in interest by merger to BNY FINANCIAL
CORPORATION ("Lender") and WORLD AIRWAYS, INC. ("Borrower").

                                    RECITALS

The Lender and the Borrower have entered into the Existing Credit Agreement,
pursuant to which the Lender is providing to the Borrower a $25,000,000
revolving credit facility, which is secured by certain accounts receivable,
inventory, aircraft, and other collateral of the Borrower. The Borrower has
requested that the Lender agree to amend certain financial covenants under the
Existing Credit Agreement and the Lender has agreed to such amendments subject
to the conditions described herein.

     In consideration of the foregoing and of the mutual covenants and
undertakings herein contained, the parties hereto hereby agree that the Existing
Credit Agreement is amended as hereinafter provided.

                                    ARTICLE I
                                   Definitions

     1.   Definitions. (a) In addition to the definitions set forth in the
          -----------
heading and the recitals to this Amendment, the following definitions shall
apply hereto:

     "Agreement" means the Existing Credit Agreement as amended, supplemented or
      ---------
otherwise modified from time to time up to and including this Amendment.

     "Existing Credit Agreement": the Second Restated and Amended Accounts
      -------------------------
Receivable Management Agreement, made as of April 27, 2001 by and between the
Lender and the Borrower as amended or otherwise modified from time to time prior
to the First Amendment Effective Date.

     (b) Unless otherwise indicated, capitalized terms that are used but not
defined herein shall have the meanings ascribed to them in the Existing Credit
Agreement.

                                   ARTICLE II
                                 Representations

     1.  Representations. The Borrower hereby represents and warrants as
         ---------------
follows:

     (a)  If has full power, authority and legal right to enter into this
Amendment and perform all of its respective obligations hereunder. The
execution, delivery and performance hereof is within its powers and has been
duly authorized, is not in contravention of any law(s) which might have a
material adverse effect upon it, the Collateral, its operations, financial
condition or prospects, or in contravention of the terms of its by-laws,
certificate of incorporation, declaration of trust or other documents relating
to its formation, as applicable, or to the conduct of its business or of any
material agreement or undertaking to which it is a party or by which it is
bound, and will not conflict with or result in any breach of any of the
provisions of, or constitute a default under, or result in the creation of any
Lien upon any of its assets under, the provisions of any agreement, charter,
instrument, by-law, declaration of trust or other instrument to which it is a
party or

<PAGE>

by which is or its assets may be bound.

     (b)  It is duly organized and in good standing under the laws of its state
of organization and it is qualified to do business and is in good standing in
all jurisdictions in which qualification and good standing are necessary for it
--------------------
to conduct its business and own its properties and where the failure to so
qualify would have a material adverse effect on its business, operations,
property, condition (financial or otherwise) or prospects.

     (c)  This Amendment has been duly executed and delivered on its behalf and
this Amendment constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

     (d)  The conditions contained in Article IV hereof have been satisfied.

     (e)  Each of the Existing Credit Agreement and the Ancillary Agreement is
on the date hereof in full force and effect.

     (f)  No Event of Default has occurred and is continuing.

                                   ARTICLE III
                     Amendments to Existing Credit Agreement

     1.   Amendment to Section 12 (n). (a) Section 12(n) of the Existing Credit
          --------------------------
Agreement is hereby deleted in its entirety and replaces by the following:

          "(n) it shall not permit its Tangible Net Worth to be less than the
     following amounts at any time during the following periods provided that
     (A) each such amount shall be decreased by the cumulative amount of
     dividends paid in accordance herewith and (B) upon an Equity Infusion, each
     such amount shall be increased by the amount of such Equity Infusion:

     Quarter Ending                                  Amount
     --------------                                  ------

     3/31/01                                         $ 21,383,000.00
     6/30/01                                         $ 14,500,000.00
     9/30/01                                         $  8,500,000.00
     12/31/01                                        $  6,500,000.00
     3/31/02                                         $ 32,427,000.00
     6/30/02                                         $ 32,750,000.00
     9/30/02                                         $ 34,075,000.00
     12/31/02                                        $ 34,301,000.00
     3/31/03                                         $ 34,737,000.00
     6/30/03                                         $ 35,680,000.00
     9/30/03                                         $ 37,852,000.00
     12/31/03                                        $ 38,682,000.00
     3/31/04                                         $ 39,123,000.00

     2.   Amendment to Section 12(o). Section 12(o) of the Existing Credit
          --------------------------
Agreement is hereby deleted in its entirety and replaced by the following:

          "(o) it shall not permit its net income, before taxes, to be less than
     the following amounts for the following periods:

     Date                                            Amount
     ----                                            ------

<PAGE>

     3/31/01                                           $ (10,304,000.00)
     6/30/01                                           $ (10,000,000.00)
     9/30/01                                           $  (6,500,000.00)
     12/31/01                                          $  (2,000,000.00)
     3/31/02                                           $     600,000.00
     6/30/02                                           $     300,000.00
     9/30/02                                           $   1,400,000.00
     12/31/02                                          $     225,000.00
     3/31/03                                           $     450,000.00
     6/30/03                                           $   1,000,000.00
     9/30/03                                           $   2,375,000.00
     12/31/03                                          $     800,000.00
     3/31/04                                           $     500,000.00

     provided that in any quarter that the net income exceeds the applicable
amount set forth above, such excess may be applied to the next consecutive
quarter for purposes of this Section 12(o)."

     3.   Amendment to Section 12 (p). Section 12(p) of the Existing Credit
          ---------------------------
Agreement is hereby deleted in its entirety and replaced by the following:

          "(p) it will maintain a Debt Coverage Ratio, at all times, for each of
the fiscal quarters as stated below:

     Fiscal Quarter Ending                            Ratio
     ---------------------                            -----

     3/31/01                                          (3.70) to 1
     6/30/01                                          (0.60) to 1
     9/30/01                                          (2.50) to 1
     12/31/01                                         (1.00) to 1
     3/31/02                                            1.00 to 1
     6/30/02                                            1.00 to 1
     9/30/02                                            1.00 to 1
     12/31/02                                           1.00 to 1
     3/31/03                                            0.75 to 1
     6/30/03                                            1.00 to 1
     9/30/03                                            1.00 to 1
     12/31/03                                           1.00 to 1
     3/31/04                                            1.00 to 1

                                   ARTICLE IV
                           Conditions to Effectiveness

     This Amendment, and the modifications to the Existing Credit Agreement
provided for herein, shall become effective on the date (the "First Amendment
                                                              ---------------
Effective Date") on which all of the following conditions have been (or are
--------------
concurrently being) satisfied:

     1. This Amendment shall have been duly executed and delivered by each party
thereto.

     2. Each of the representations and warranties made by the Borrower in or
pursuant to the Agreement and any Ancillary Documents shall be true and correct
in all material respects on and as of the First Amendment Effective Date as if
made on and as of such date (except to the extent the same relate to another,
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date).

     3.  Borrower shall have paid to Lender an amendment fee equal to $50,000.00

<PAGE>

     4.  No Event of Default shall have occurred and be continuing.

     5.  All corporate and other proceedings, and all documents, instruments and
other legal matters in connection with the transactions contemplated by the
Existing Credit Agreement and this Amendment shall be reasonably satisfactory in
form and substance to the Lender, and the Lender shall have received such other
documents in respect of any aspect or consequence of the transactions
contemplated hereby or thereby as it shall reasonably request.

                                    ARTICLE V
                                  Miscellaneous

     1.  Payment of Expenses. Without limiting its obligations under Section 14
         -------------------
of the Agreement, the Borrower agrees to pay or reimburse the Lender for all of
its reasonable costs and expenses incurred in connection with this Amendment,
including, without limitation, the reasonable costs and expenses of Pillsbury
Winthrop LLP, counsel to the Lender and expressly acknowledge that their
obligations hereunder constitute "Obligations" within the meaning of the
Existing Credit Agreement.

     2.  No Other Amendments; Confirmation. Except as expressly amended,
         ---------------------------------
modified and supplemented hereby and by the documents related hereto, the
provisions of the Existing Credit Agreement and the other Ancillary Agreements
shall remain in full force and effect.

     3.  Governing Law; Counterparts. (a) This Amendment and the rights and
         ----------------------------
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

     (b) This Amendment may be executed by one or more of the parties hereto on
any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. A set of the copies
of this Amendment signed by all the parties shall be lodged with each of the
Borrower and the Lender. This Amendment may be delivered by facsimile
transmission of the relevant signature pages hereof.

                            [Signature page follows]

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

                              WORLD AIRWAYS, INC.
                                    Borrower

                              By_______________________________________________
                                                Title:

                              GMAC COMMERCIAL CREDIT LLC,
                              successor in interest by merger to BNY Financial
                              Corporation, as Lender

                              By_______________________________________________
                                                Title:

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

                                WORLD AIRWAYS, INC.
                                     Borrower

                                By_________________________________________
                                   Title:

                                GMAC COMMERCIAL CREDIT LLC,
                                successor in interest by merger to BNY Financial
                                Corporation, as Lender

                                By_________________________________________
                                   Title:

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