Document:

EXHIBIT
      10.38

     

    AMENDED
      AND RESTATED SECURITY AGREEMENT

     

    THIS
      AMENDED AND RESTATED SECURITY AGREEMENT
      (“Agreement”),
      dated
      as of May 13, 2005, by and among (A) Mobilepro Corp., a Delaware corporation
      (“MobilePro”),
      (B)
      each of the direct and indirect Subsidiaries of MobilePro executing this
      Agreement (the “MobilePro
      Subsidiaries”)
      and
      (C) Cornell
      Capital Partners, L.P., a Delaware limited partnership (“Cornell
      Capital,”“Lender”
      or
“Secured
      Party”).
      MobilePro and the MobilePro Subsidiaries are hereinafter sometimes individually
      referred to as a "Debtor"
      and
      collectively, the "Debtors"). Capitalized
      terms used herein shall have the meaning specified in Article IX
      herein.

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the
      Debtors (as Borrowers) and Airlie Master Opportunity Fund, Ltd., (“Airlie”)
      entered into a that certain Credit Agreement, dated as of November 15, 2004
      (the
      "Credit
      Agreement"),
      providing for the making of the loan as contemplated therein; and

     

    WHEREAS,
      Mobilepro desires to pay in full all outstanding obligations relating to the
      Credit Agreement; and

     

    WHEREAS,
      as
      partial consideration for making certain loans to Mobilepro, a portion of the
      proceeds of which will be used for the repayment of the obligations outstanding
      under the Credit Agreement, Airlie shall assign to Cornell Capital all of its
      right, title and interest in and to the Security Documents (as defined in the
      Credit Agreement); and

     

    WHEREAS,
      certain
      of theSecurity Documents will be amended and restated as of even date herewith
      in connection with Cornell Capital extending certain financial accommodations
      to
      MobilePro; and

     

    WHEREAS,
      on even
      date herewith Cornell Capital will purchase a 7.75% Secured Convertible
      Debenture (the “Debenture”) from MobilePro, of which a part of the proceeds will
      be used to pay all outstanding obligations to Airlie under the Credit Agreement;
      and

     

    WHEREAS,
      it is a
      condition precedent to Cornell Capital purchasing the Debenture that each Debtor
      shall have granted to Cornell Capital a security interest in all of its assets
      and properties; and

     

    WHEREAS,
      each
      Guarantor desires to execute this Agreement to satisfy the conditions described
      in the preceding paragraph.

     

    NOW,
      THEREFORE,
      in
      consideration of the benefits accruing to each Debtor, the receipt and
      sufficiency of which are hereby acknowledged, each Debtor hereby makes the
      following representations and warranties and hereby covenants and agrees as
      follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      II

     

    SECURITY
      INTERESTS

     

    1.1 Grant
      of Security Interests. As
      security for the prompt and complete payment and performance, when due, of
      (i)
      all of the Obligations
      of the
      Debtors to the Lender under the Debenture
      and the
      other Transaction Documents, each of the Debtors
      does
      hereby sell, assign and transfer unto Cornell Capital, as Secured
      Party,
      a first
      priority Lien and continuing security interest in all of the right, title and
      interest of such Debtor in, to and under:

     

    (a) all
      of
      the assets and properties, real, personal or mixed, of the Debtors, whether
      now
      existing or hereafter from time to time acquired, including, without limitation:
      (i) each and every Receivable, (ii) all Contracts, together with all Contract
      Rights arising thereunder, (iii) all Inventory, (iv) all Equipment, (v) all
      Marks, together with the registrations and right to all renewals thereof, and
      the goodwill of the business of such Debtor symbolized by the Marks, (vi) all
      Patents and Copyrights and all reissues, renewals or extensions thereof, (vii)
      all computer programs of such Debtor and all intellectual property rights
      therein and all other proprietary information of such Debtor, including, but
      not
      limited to, Trade Secret Rights, (viii) all insurance policies, (ix) all other
      Goods, General Intangibles, Chattel Paper, Documents, Securities and Instruments
      and (x) all Proceeds and products of any and all of the foregoing (all of the
      above collectively, the "Collateral");
      and 

     

    (b) Notwithstanding
      anything to the contrary contained in Section 1.1(a), the Collateral shall
      not
      include:

     

    (i)  (ii) any
      rights, title or interest arising in or under, and any property, tangible or
      intangible, acquired under, any agreement (including, without limitation, any
      lease or license) to which an Debtor is a party on the date such Debtor becomes
      a party hereto and which validly prohibits the creation by such Debtor of a
      security interest in such rights or
      property;
      or 

     

    (iii) any
      rights or property to the extent that any valid enforceable law or regulation
      applicable to such arrangements, rights or property prohibits the creation
      of a
      security interest herein.

     

    1.2 Power
      of Attorney.
      Each
      Debtor hereby constitutes and appoints the Secured Party its true and lawful
      attorney, irrevocably, with full power after the occurrence of and during the
      continuance of an Event of Default (in the name of the applicable Debtor or
      otherwise) to
      act,
require,
      demand, receive, compound and give acquittance for any and all monies and claims
      for monies due or to become due to such Debtor under or arising out of the
      Collateral, to endorse any checks or other instruments or orders in connection
      therewith and to file any claims or take any action or institute any proceedings
      which the Secured Party
      may deem
      to be necessary or
      advisable
      in the premises, which appointment as attorney is coupled with an
      interest.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      II

     

    GENERAL
      REPRESENTATIONS, WARRANTIES AND COVENANTS

     

    Each
      Debtor represents, warrants and covenants, which representations, warranties
      and
      covenants shall survive execution and delivery of this Agreement, as
      follows:

     

    2.1 Necessary
      Filings.
      All
      filings, registrations and recordings necessary or appropriate to create,
      preserve, protect and perfect the security interest granted by such Debtor
      to
      the Secured Party hereby in respect of all the Collateral have been taken or
      shall have been taken within five (5) Business Days of the Closing Date (or,
      in
      the case of property acquired after the Closing Date, within five (5) Business
      Days after the acquisition thereof) and the security interest granted to the
      Secured Party pursuant to this Agreement in and to all the Collateral
      constitutes, upon satisfaction of such filings, registrations and recordings,
      a
      perfected security interest in the Collateral that can be perfected by the
      filing of a Uniform Commercial Code Form UCC-1 financing statement, superior
      and
      prior to the rights of all other Persons therein (other than any such rights
      pursuant to Permitted
      Liens)
      and
      subject to no other Liens (other than Permitted Liens) and is entitled to all
      the rights, priorities and benefits afforded by the Uniform Commercial Code
      or
      other relevant law as enacted in any relevant jurisdiction to perfected security
      interests.

     

    2.2 No
      Liens.
      Such
      Debtor is, and as to Collateral acquired by it from time to time after the
      date
      hereof such Debtor will be, the owner of all Collateral free from any Lien,
      security interest, encumbrance or other right, title or interest of any Person
      (other than Permitted Liens), and such Debtor shall take all reasonable steps
      to
      defend the Collateral against all claims and demands of all Persons at any
      time
      claiming the same or any interest therein (other than in connection with
      Permitted Liens) adverse to the Secured Party.

     

    2.3 Other
      Financing Statements,
      As of
      the date hereof, no Debtor has signed or authorized to be signed any financing
      statement (or similar statement or instrument of registration under the law
      of
      any jurisdiction) covering or purporting to cover any interest of any kind
      in
      the Collateral (other than financing statements filed in respect
      of Permitted Liens) and so long as the Termination Date has not occurred, such
      Debtor will not execute or authorize to be filed in any public office any
      financing statement (or similar statement
      or
      instrument of registration under the law of any jurisdiction) or statements
      relating to the Collateral, except financing statements filed or to be filed
      in
      respect of and covering the security interests granted hereby by such Debtor
      or
      as permitted
      by the Debenture.

     

    2.4 Chief
      Executive Office; Records.
      As of
      the date hereof, the chief executive office of such Debtor is located at the
      address or addresses indicated on Annex
      A
      hereto,
      Such Debtor will not move its chief executive office except to such new location
      as such Debtor may establish in accordance with the last sentence of
      this
      Section 2.4. The originals of all documents evidencing all Receivables, Contract
      Rights and Trade Secret Rights of such Debtor and the only original books of
      account and records of such Debtor
      relating
      thereto are, and will continue to be, kept at such chief executive office and/or
      one or more of the locations shown on Annex A, or at such new locations as
      such
      Debtor may establish in accordance with the last sentence of this Section
      2.4.
      All
      Receivables, Contract Rights and Trade Secret Rights of 

     

    
      
         

      

      
         

        
          

        

      

      
         

    

    such
      Debtor are, and will continue to be, maintained at, and controlled and directed
      (including, without limitation, for general accounting purposes) from, the
      office locations described above, or such new locations as such Debtor may
      establish in accordance with the last sentence of this Section 2.4. Such Debtor
      shall not establish new locations for such offices until (i) it shall have
      given
      to the Secured Party not less than fifteen (15) Business Days' prior written
      notice (or such lesser notice as shall be acceptable to the Secured Party
in
      the
      case
      of a new record location to be established in connection with newly acquired
      Contracts) of its intention to do so, clearly describing such new location
      and
      providing such other information in connection therewith as the Secured Party
      may reasonably request, and (ii) with respect to such new location, it shall
      have taken all action, reasonably satisfactory to the Secured Party, to maintain
      the security interest of the Secured Party in the Collateral intended to be
      granted hereby at all times fully perfected and in full force and
      effect.

     

    2.5 Location
      of Inventory and Equipment.
      All
Inventory
      and Equipment held on
      the date
      hereof by each Debtor is located at one of the locations shown on Annex
      B
      attached
      hereto. Each Debtor agrees that all Inventory and Equipment now held or
      subsequently acquired by it shall be kept at (or shall be in transport to or
      from) any one of the locations shown on Annex
      B
      hereto,
      such new location as such Debtor may establish in accordance with the last
      sentence of this Section 2.5 or such other locations to the extent such Debtor
      (and the Debtors taken as a whole) remains in compliance with this Section
      2.5.
      Each Debtor may establish a new location for Inventory and Equipment if (i)
      it
      shall have given to the Secured Party not less than 30 Business Days' prior
      written notice of its intention so to do, clearly describing such new location
      and providing such other information in connection therewith as the Secured
      Party may reasonably request, and (ii) with respect to such new location, such
      Debtor shall have taken all action reasonably satisfactory to the Secured Party
      to maintain the security interest of the Secured Party in the Collateral
      intended to be granted hereby at all times fully perfected and in full force
      and
      effect.

     

    2.6 Trade
      Names; Change of Name.
      As of
      the date hereof, such Debtor does not have or operate in any jurisdiction under,
      or in the preceding 12 months has not had or has not operated in any
      jurisdiction under, any trade names, fictitious names or other names (including,
      without limitation, any names of divisions or operations) except its legal
      name
      and such other
      trade,
      fictitious or other names as are listed on Annex
      C
      hereto.
      Such Debtor has only operated under each name set forth in Annex
      C
      in the
      jurisdiction or jurisdictions set forth opposite each such name on Annex
      C.
      Such
      Debtor shall not change its legal name or assume or operate in any jurisdiction
      under any trade, fictitious or other name except those names listed on
Annex
      C
      hereto
      in the jurisdictions listed with respect to such names and new names (including,
      without limitation, any names of divisions or operations) and/or jurisdictions
      established in accordance with the last sentence of this Section 2.6. Such
      Debtor shall not assume or operate in any jurisdiction under any new trade,
      fictitious or other name or operate under any existing name in any additional
      jurisdiction until (i) it shall have given to the Secured Party not less than
      30
      Business
      Days' prior written notice of its intention to do so, clearly describing such
      new name and/or
      jurisdiction and, in the case of a new name, the jurisdictions in which such
      new
      name shall be used and providing such other information in connection therewith
      as the Secured Party may reasonably request, and (ii) with respect to such
      new
      name and/or new jurisdiction, it shall have taken all action necessary, or
      in
      the reasonable opinion of the Secured Party, desirable to maintain the security
      interest of the Secured Party in the Collateral intended to be granted hereby
      at
      all times fully perfected and in full force and effect.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.7 Equity
      Collateral. Annex
      G
      hereto
      sets forth the names of all Subsidiaries owned by each Debtor, the percentage
      of
      such capital stock or limited liability company equity ownership interests
      in
      each Subsidiary owned by each Debtor and the name of the Operating Agreement
      governing each such Subsidiary.

     

    2.8 Recourse.
      This
      Agreement is made with full recourse to such Debtor and pursuant to and upon
      all
      the warranties, representations, covenants, and agreements on the part
of
      such
      Debtor contained herein, in the other Transaction
      Documents
      and
      otherwise in writing in connection herewith or therewith.

     

     

    ARTICLE
      III

    

    SPECIAL
      PROVISIONS CONCERNING

    RECEIVABLES,
      CONTRACT RIGHTS, INSTRUMENTS AND

    LIMITED
      LIABILITY COMPANY COLLATERAL

    

    3.1 Additional
      Representations and Warranties.
      As of
      the time when each of its Receivables arises, each Debtor shall be deemed to
      have represented and warranted that such Receivable and all material records,
      papers and documents relating thereto (if any) are genuine and in all material
      respects what they purport to be, and that all papers and documents (if any)
      relating thereto (i) will be the only original writings evidencing and embodying
      such obligation of the account debtor named therein (other than copies created
      for general accounting purposes) and (ii) will, to the knowledge of such Debtor,
      evidence true and valid obligations of the account debtor named
      therein.

     

    3.2 Maintenance
      of Records.
      Each
      Debtor will keep and maintain at its own cost and expense satisfactory and
      complete records of its Receivables and Contracts, and such Debtor will make
      the
      same available to the Secured Party for inspection, at such Debtor's own cost
      and expense, at any and all reasonable times upon reasonable prior notice to
      such Debtor. If requested by the Secured Party upon the occurrence and during
      the continuance of an Event of Default, such Debtor shall, at its own cost
      and
      expense, deliver all tangible evidence of its Receivables and Contract Rights
      (including, without limitation, copies of all documents evidencing the
      Receivables and all Contracts) and such books and records to the Secured Party
      or to its representatives (copies of which evidence and books and records may
      be
      retained by such Debtor). If the Secured Party so directs, such Debtor shall
      legend, in form and manner reasonably satisfactory to the Secured Party, the
      Receivables and Contracts, as well as books, records and documents of such
      Debtor evidencing or pertaining to such Receivables with an appropriate
      reference to the fact that such Receivables and Contracts have been assigned
      to
      the Secured Party and that the Secured Party has a security interest
      therein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.3 Modification
      of Terms, etc.
      No
      Debtor shall rescind or cancel any indebtedness evidenced by any Receivable
      or
      under any Contract, or modify any term thereof or make any adjustment with
      respect thereto, or extend or renew the same or compromise or settle any
      material dispute, claim, suit or legal proceeding relating thereto, or sell
      any
      Receivable or Contract, or interest therein, without the prior written consent
      of the Secured Party, except (i) as permitted by Section 3.4 hereof and (ii)
      in
      accordance with such Debtor's reasonable business practices. Each Debtor will
      duly fulfill all material obligations on its part to be fulfilled under or
      in
      connection with all Receivables and Contracts and will do nothing to
impair
      in
      any
      significant respect the rights of the Secured Party in the Receivables or
      Contracts.

     

    3.4 Collection.
      Each
      Debtor shall endeavor in accordance with reasonable business practices to cause
      to be collected from the account debtor named in each of its Receivables or
      obligor under any Contract, as and when due (including, without limitation,
      amounts which are
      delinquent,
      such amounts to be collected in accordance with generally accepted lawful
      collection procedures) any and all amounts owing under or on account of such
      Receivable or Contract, and
      apply
      forthwith upon receipt thereof all such amounts as are so collected to the
      outstanding balance of such Receivable or under such Contract, except that,
      prior to the occurrence and continuance of an Event of Default in respect of
      which the Secured Party has given notice that
      this
      exception is no longer applicable, any Debtor may allow in the ordinary course
      of business as adjustments to amounts owing under its Receivables and Contracts
      (i) an extension or renewal of the time or times of payment, which such Debtor
      finds appropriate in accordance with sound business judgment and (ii) a refund
      or credit due as a result of returned or damaged merchandise or improperly
      performed services. The reasonable costs and expenses (including, without
      limitation, attorneys' fees) of collection, whether incurred by any Debtor
      or
      the Secured Party, shall be borne by such Debtor.

     

    3.5 Instruments.
      If any
      Debtor owns or acquires any Instrument,
      such
      Debtor
      will within 10
      Business
      Days notify the Secured Party thereof, and upon request by the Secured Party
      promptly deliver such Instrument (other than checks payable to any Debtor and
      processed in
      the
      ordinary course of business) to the Secured Party appropriately endorsed to
      the
      order of the Secured Party as further security hereunder.

     

    3.6 Registration
      of Pledge.
      Each
      Debtor agrees, by Notice of Pledge in substantially the form attached to this
      Agreement as Annex
      H,
      to
      notify each Subsidiary owned by such Debtor immediately of the pledge,
      assignment and security agreement under this Agreement and to request that
      such
      Subsidiary issue an Initial Transaction Statement in substantially the form
      attached to this Agreement as Annex
      I.
      Each
      Debtor hereby authorizes and directs each Subsidiary owned by such Debtor to
      register such Debtor's pledge to the Secured Party of the Equity Collateral
      on
      such Subsidiary’s books and, following written notice to do so by the Secured
      Party, to make direct payment to the Secured Party of any amounts due or to
      become due to such Debtor with respect to the Equity Collateral.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.7 Rights
      of the Debtor in the Equity Collateral.
      (a)
      Unless and until an Event of Default shall have occurred and be continuing,
      the
      Debtors shall be entitled to receive all dividends and other distributions
      which
      may be paid on the Equity Collateral and which are not otherwise prohibited
      by
      the Credit Agreement. Any cash dividend or distribution payable in respect
      of
      the Equity Collateral which represents, in whole or in part a return of capital
      in violation of this Agreement shall be received by such Debtor in trust for
      the
      Secured Party, shall be paid immediately to the Secured Party and shall be
      retained by the Secured Party as part of the Equity Collateral.

     

    (b) Unless
      and until an Event of Default shall have occurred and be continuing, each Debtor
      shall be entitled to exercise all voting rights attaching to any and all Equity
      Collateral owned by it, and to give consents, waivers or ratifications in
      respect thereof, provided that no vote shall be cast or any consent, waiver
      or
      ratification given or any action taken which would violate, result in a breach
      of any covenant contained in any of the terms of this Agreement, the Debenture,
      any other
      Transaction
      Document, or which would have the effect of materially impairing the value
      of
      the Collateral or any part thereof or the position or interests of the Debtor
      or
      the Secured Party therein.

     

    3.8 Further
      Actions.
      Each
      Debtor will, at its own expense, make, execute, endorse, acknowledge, file
      and/or deliver to the Secured Party from time to time such vouchers, invoices,
      schedules, confirmatory assignments, conveyances, financing statements, transfer
      endorsements, powers of attorney, certificates, reports and other assurances
      or
      instruments and take such further steps relating to its Receivables, Contracts,
      Instruments, Equity Collateral and other property or rights covered by the
      security interest hereby granted, as the Secured Party may reasonably require
      to
      give effect to the purposes of this Agreement.

     

    ARTICLE
      VI

    

    SPECIAL
      PROVISIONS CONCERNING TRADEMARKS

    

    4.1 Additional
      Representations and Warranties.
      Each
      Debtor represents and warrants that it is the true and lawful owner of the
      Patent and Trademark Office registrations, and applications for registrations,
      of the Marks listed in Annex
      D
      attached
      hereto and that Annex
      D lists
      all
      of the United States Patent and Trademark Office or the equivalent office
      thereof in any foreign country at which such Marks are registered and the
      correct registration numbers of the Marks that such Debtor now owns or uses
      in
      connection with its business. Each Debtor represents and warrants that it owns,
      is licensed to use or otherwise has the right to use all material Marks that
      it
      uses. Each Debtor further warrants that it is aware of no third party claim
      that
      any aspect of such Debtor's present or contemplated business operations
      infringes or
      will
      infringe any material Mark. Each Debtor represents and warrants that it is
      the
      true and lawful
      owner of or otherwise has the right to use all U.S. trademark registrations
      listed in Annex D hereto and that said registrations are valid, subsisting,
      have
      not been cancelled and that such Debtor is not aware of any third-party claim
      that any of said registrations with respect to a Mark is invalid or
      unenforceable or is not aware that there is any reason that any of said
      registrations with respect to a Mark is invalid or unenforceable. Each Debtor
      hereby grants to the Secured Party an absolute power of attorney to sign, upon
      the occurrence and during the continuance of an Event of Default, any document
      which may be required by the United States Patent and Trademark Office in order
      to effect an absolute assignment of all right, title and interest in each Mark
      owned by an Debtor, and record the same,

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.2 Licenses
      and Assignments.
      Subject
      to the provisions of Sections 4.4 and 4.5
      each
      Debtor hereby agrees not to divest itself of any right under a material Mark
      other than in
      the
      ordinary course of business absent prior written approval of the Secured
      Party.

     

    4.3 Infringements.
      Each
      Debtor agrees, promptly upon learning thereof, to notify the Secured Party
      in
      writing of the name and address of, and to furnish such pertinent information
      that may be available with respect to, any party who may be infringing or
      otherwise violating in any material respect any of such Debtor's rights in
      and
      to any material Mark or with respect to any party claiming that such Debtor's
      use of any material Mark violates in any material respect any property right
      of
      that party. To the extent consistent with its past practice or as reasonably
      required by the Secured Party and, in any event, in accordance with reasonable
      business practices, each Debtor further agrees, to prosecute any Person
      infringing any material Mark owned by such Debtor,

     

    4.4 Preservation
      of Marks.
      Each
      Debtor agrees to use or license the use of its Marks in interstate commerce
      during the time in which this Agreement is in effect, sufficiently to preserve
      such Marks as trademarks or service marks registered under the laws of the
      United States or the relevant foreign jurisdiction; provided,
      that no
      Debtor shall be obligated to preserve any Mark in the event such Debtor
      determines, in its reasonable business judgment, that the preservation of such
      Mark is no longer necessary in the conduct of its business.

     

    4.5 Maintenance
      of Registration.
      Each
      Debtor shall, at its own expense, diligently process all documents required
      to
      maintain trademark registrations, including but not limited to
      affidavits
      of use and applications for renewals of registration in the United States Patent
      and Trademark Office or equivalent governmental agency in any foreign,
      jurisdiction for all of its material Marks (excluding unregistered Marks),
      and
      shall pay all fees and disbursements in connection therewith, and shall not
      abandon any such filing of affidavit of use or any such application of renewal
      prior to the exhaustion of all administrative and judicial remedies without
      prior written consent of the Secured Party; provided,
      that no
      Debtor shall be obligated to maintain any Mark or prosecute any such application
      for registration in the event that such Debtor determines, in its reasonable
      business judgment, that such application is no longer necessary in
      the
      conduct of its business.

     

    4.6 Future
      Registered Marks.
      If any
      Mark registration issues hereafter to any Debtor as a result of any application
      now or hereafter pending before the United States Patent and Trademark Office
      or
      equivalent governmental agency in any foreign jurisdiction, within thirty (30)
      days of
      receipt of such certificate such Debtor shall deliver a copy of such
      certificate, and a grant of security in such mark to the Secured Party,
      confirming the grant thereof hereunder, the form of such confirmatory grant
      to
      be substantially the same as the form hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.7 Remedies.
      If an
      Event of Default shall occur and be continuing, the Secured Party may, by
      written notice to the relevant Debtor; take any or all of the following actions
      (i) declare the entire right, title and interest of such Debtor in and to each
      of the Marks, together with all trademark rights and rights of protection to
      the
      same, vested, in which event such rights, title and interest shall immediately
      vest, in the Secured Party pursuant to a trademark security agreement in form
      and substance satisfactory to the Secured Party, executed by such Debtor and
      filed on the date hereof, pursuant to which all of such Debtor's rights, title
      and interest in and to the Marks are assigned to the Secured Party; (ii) take
      and use or sell the Marks and the goodwill of such Debtor's business symbolized
      by the Marks and the right to carry on the business and use the assets of such
      Debtor in connection with which the Marks have been used; and (iii) direct
      such
      Debtor to refrain, in which event such Debtor shall refrain, from using the
      Marks in any manner whatsoever, directly or indirectly, and, if requested by
      the
      Secured Party, change such Debtor's corporate name to eliminate therefrom any
      use of any Mark and execute such other and further documents that the Secured
      Party may request to further confirm this and to transfer ownership of the
      Marks
      and registrations and any pending trademark application in the United States
      Patent and Trademark Office or any equivalent governmental agency or office
      in
      any foreign jurisdiction to the Secured Party.

     

    ARTICLE
      V

    

    SPECIAL
      PROVISIONS CONCERNING

    TRADE
      SECRET RIGHTS, PATENTS AND COPYRIGHTS

    

    5.1 Additional
      Representations and Warranties.
      Each
      Debtor represents and warrants that (a) it is the true and lawful owner or
      licensee of all rights in all Trade Secret Rights, Patents and Copyrights that,
      individually or in the aggregate, are material to the operation of the business
      of each Debtor; (b) the Patents of such Debtor listed in Annex
      E
      attached
      hereto, constitute all the patents and applications for patents that such Debtor
      now owns and (c) the Copyrights of such Debtor listed in Annex
      F
      attached
      hereto constitute all the registered copyrights and applications for copyright
      registrations that such Debtor now owns. Each Debtor further represents and
      warrants that it is not aware of any third party claim that any aspect of such
      Debtor's present or contemplated business operations infringes or will infringe
      any material patent or any material copyright or that such Debtor has
      misappropriated any material Trade Secret Rights.

     

    5.2 Licenses
      and Assignments.
      Subject
      to the provisions of Sections 5.4 and 5.5, each Debtor hereby agrees not to
      divest itself of any right under a material Patent or Copyright other than
      in
      the ordinary course of business absent prior written approval of the Secured
      Party.

     

    5.3 Infringements.
      Each
      Debtor agrees, promptly upon learning thereof, to furnish the Secured Party
      in
      writing with all pertinent information available to such Debtor with respect
      to
      any infringement or other violation of such Debtor's rights in any Patent or
      Copyright, or with respect to any claim that the practice of any Patent or
      the
      use of any Copyright violates in any material respect any property right of
      a
      third party or with respect to any misappropriation of any Trade Secret Right
      or
      any claim that the practice of any Trade Secret Right violates any property
      right of a third party. To the extent consistent with its past practice and
      in
      accordance with reasonable business practices, each Debtor further agrees,
      to
      prosecute
      any Person infringing any Patent or Copyright owned by such Debtor or any Person
      misappropriating any Trade Secret Right; to the extent that any such Patent,
      Copyright or Trade Secret Right, individually or in the aggregate, is material
      to the business of each Debtor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.4
       Maintenance
      of Patents or Copyrights.
      At its
      own expense, each Debtor shall make timely payment of all post-issuance fees
      required to maintain in force rights under each of
      its
      Patents and registered Copyrights; provided,
      that no
      Debtor shall be obligated to maintain any Patent in the event such Debtor
      determines, in its reasonable business judgment, that the maintenance of such
      Patent is. no longer necessary in the conduct of its business.

     

    5.5 Prosecution
      of Patent or Copyright Application.
      At its
      own expense, each Debtor shall diligently prosecute all applications for (i)
      Patents of such Debtor listed on Annex E hereto and (ii) Copyrights listed
      on
      Annex F hereto, and, in each case, shall not abandon any such application prior
      to exhaustion of all administrative and judicial remedies, absent written
      consent of the Secured Party, provided
      that no
      Debtor shall be obligated to maintain any Patent or Copyright in the event
      such
      Debtor determines it is no longer necessary in the conduct of its
      business.

     

    5.6 Other'
      Patents and Copyrights.
      Within
      thirty (30) days of the acquisition or issuance of a Patent or Copyright
      registration, or of filing of an application for a Patent or Copyright
      registration, the relevant Debtor shall deliver to the Secured Party a copy
      of
      said Patent or Copyright registration, as the case may be, with a grant of
      security as to such Patent or
      Copyright,
      as the case may be, confirming the grant thereof hereunder, the form of such
      confirmatory grant to be substantially the same as the form hereof; provided,
      that no
      Debtor shall be obligated to prosecute any application in the event such Debtor
      determines, in its reasonable business judgment, that such application is no
      longer necessary in the conduct of its business,

     

    5.7 Remedies.
      If an
      Event of Default shall occur and be continuing, the Secured Party may, by
      written notice to the relevant Debtor, take any or all of the following actions:
      (i)
      declare
      the entire right, title and interest of such Debtor in each of the Patents
      and
      Copyrights vested, in which event such right, title and interest shall
      immediately vest in the Secured Party,
      pursuant to a patent security agreement or copyright security agreement, as
      the
      case may be, in form and substance satisfactory to the Secured Party, executed
      by such Debtor and filed on the date hereof, pursuant to which all of such
      Debtor's right, title, and interest to such Patents and Copyrights are assigned
      to the Secured Party;
      (ii)
      take and practice, use or sell the Patents and Copyrights; (iii) direct such
      Debtor to refrain, in which event such Debtor shall refrain, from practicing
      the
      Patents and using the Copyrights directly or indirectly, and such Debtor shall
      execute such other and further documents as the Secured Party may request
      further to confirm this and to transfer ownership of the Patents and Copyrights
      to the Secured Party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VI

    

    PROVISIONS
      CONCERNING ALL COLLATERAL,

    

    6.1 Protection
      of Secured Party's Security.
      Each
      Debtor will at all times keep its Inventory and Equipment insured in favor
      of
      the Secured Party, at its own expense, to the extent required by the Credit
      Agreement; copies of all policies or certificates with respect to such
      insurance
      (i) shall be endorsed to the Secured Party's reasonable satisfaction for the
      benefit of the Secured Party (including, without limitation, by naming the
      Secured Party as additional insured or loss payee), (ii) shall state that such
      insurance policies shall not be cancelled or
      materially revised without at least 30 days' (or at least 10 days' in the case
      of nonpayment of premium)
      prior written notice thereof by the insurer to the Secured Party and (iii)
      certificates evidencing such insurance coverages shall be deposited with the
      Secured Party. 

     

    6.2 Further
      Actions.
      Each
      Debtor will, at its own expense, make, execute, endorse, acknowledge, file
      and/or deliver to the Secured Party from time to time such lists, descriptions
      and designations of its Collateral, warehouse receipts, receipts in the nature
      of warehouse receipts, bills of lading, documents of title, vouchers, invoices,
      schedules, confirmatory assignments, conveyances, financing statements, transfer
      endorsements, powers of attorney, certificates, reports and other assurances
      or
      instruments and take such further steps relating to the Collateral and other
      property or rights covered by the security interest hereby granted, which the
      Secured Party deems reasonably appropriate or advisable to perfect, preserve
      or
      protect its
      security
      interest in the Collateral.

     

    6.3 Financing
      Statements.
      Each
      Debtor agrees to execute and deliver to the Secured Party such financing
      statements, in form acceptable to the Secured Party, as the Secured Party may
      from time to time reasonably request or as are reasonably necessary or desirable
      in the reasonable opinion of the Secured Party to establish and maintain a
      valid, enforceable, first priority perfected security interest in the Collateral
      (subject to the Permitted Liens) as provided herein and the other rights and
      security contemplated hereby all in accordance with the Uniform Commercial
      Code
      as enacted in any and all relevant jurisdictions or any other relevant law,
      Each
      Debtor will pay any applicable filing fees, recordation taxes and related
      expenses. Each Debtor hereby authorizes the Secured Party to file any such
      financing statements without the signature of such Debtor where permitted by
      law.

     

    ARTICLE
      VII

    

    REMEDIES
      UPON OCCURRENCE OF EVENT OF DEFAULT

    

    7.1 Remedies;
      Obtaining the Collateral Upon Default.
      Each
      Debtor agrees that, if an Event of Default shall have occurred and be
      continuing, then and in every such case, subject to any mandatory requirements
      of applicable law then in effect, the Secured Party, in addition to any rights
      now or hereafter existing under applicable law, shall have all rights as a
      Secured Party under the Uniform Commercial Code in all relevant jurisdictions
      and may:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)
      personally, or by agents or attorneys, immediately take possession of the
      Collateral or any part thereof, from such Debtor or any other Person who then
      has possession of any part thereof with or without notice or process of law,
      and
      for that purpose may enter upon such Debtor's premises where any of the
      Collateral is located and remove the same and use in connection with such
      removal any and all services, supplies, aids and other facilities of such
      Debtor;

     

    (ii)
      instruct the obligor or obligors on any agreement, instrument or other
      obligation (including, without limitation, the Receivables and the Contracts)
      constituting the Collateral to make any payment required by the terms of such
      instrument or agreement directly to the Secured Party;

     

    (iii)
      sell, assign or otherwise liquidate, or direct such Debtor to sell, assign
      or
      otherwise liquidate, any or all of the Collateral or any part thereof in
      accordance with Section 7.2 hereof, and take possession of the proceeds of
      any
      such sale or liquidation;

     

    (iv)
      take
      possession of the Collateral or any part thereof, by directing such Debtor
      in
      writing to deliver the same to the Secured Party at any place or places within
      the United States reasonably designated by the Secured Party, in which event
      such Debtor shall at its own expense:

     

    (A)
      forthwith cause the same to be moved to the place or places so designated by
      the
      Secured Party and there delivered to the Secured Party,

     

    (B)
      store
      and keep any Collateral so delivered to the Secured Party at such place or
      places pending further action by the Secured Party as provided in Section 7.2,
      and

     

    (C)
      while
      the Collateral shall be so stored and kept, provide such guards and maintenance
      services as shall be necessary to protect the same and to preserve and maintain
      them in good condition; and

     

    (v)
      license or sublicense whether on an exclusive or nonexclusive basis, any Marks,
      Patents or Copyrights included in the Collateral for such tern and on such
      conditions and in such manner as the Secured Party shall in its sole judgment
      determine (taking into account such provisions as may be necessary to preserve
      such Marks, Patents or Copyrights);

     

    it
      being
      understood that such Debtor's obligation so to deliver the Collateral is of
      the
      essence of
      this
      Agreement and that, accordingly, upon application to a court of equity having
      jurisdiction, the Secured Party shall be entitled to a decree requiring specific
      performance by such Debtor of said obligation. The
      Debtors
      agrees
      that this Agreement may be enforced by
      the
      action of the Secured
      Party; provided that the
      Secured
      Party shall have the right to employ an agent or representative or
      the
      Secured
      Party, as such
      Secured
      Party shall determine in its sole judgment.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.2 Remedies;
      Disposition of the Collateral.
      Upon the
      occurrence and continuance of a Event of Default, any Collateral repossessed
      by
      the  Secured
      Party under or pursuant to Section 7.1 and any other Collateral whether or
      not
      so repossessed by such Secured Party, may be sold, assigned, leased or otherwise
      disposed of under one or more contracts or as an entirety, and without the
      necessity of gathering at the place of sale the property to be sold, and in
      general in such manner, at such time or times, at such place or places and
      on
      such terms as the applicable
      Secured
      Party may, in compliance with any mandatory requirements of applicable law,
      determine to be commercially reasonable. Any of the Collateral may be sold,
      leased or otherwise disposed of, in the condition in which the same existed
      when
      taken by the Secured
      Party or after any overhaul or repair which such Secured Party shall determine
      to be commercially reasonable. Any such disposition which shall be a private
      sale or other private proceedings permitted by such requirements shall be made
      upon not less than ten (10) Business Days' written notice to the relevant Debtor
      specifying the time at which such disposition is to be made and the intended
      sale price or other consideration therefor, and shall be subject, for the ten
      (10) Business Days after the giving of such notice, to the right of the relevant
      Debtor or any nominee of such Debtor to acquire the Collateral involved at
      a
      price or for such other consideration at least equal to the intended sale price
      or other consideration so specified. Any such disposition which shall be a
      public sale permitted by such requirements shall be made upon not less than
      ten
      (10) Business Days' written notice to the relevant Debtor specifying the time
      and place of such sale and, in the absence of applicable requirements of law,
      shall be by public auction (which may, at
      the
      Secured Party’s option,
      be subject to reserve), after publication of notice of such auction not less
      than 10 days prior thereto in two newspapers in general circulation in New
      Jersey. To the extent permitted by any such requirement of law, the Secured
      Party
      on
      behalf of itself
      may bid
      for and become the purchaser (by bidding in the Obligations (as to the
      Collateral), or otherwise) of the Collateral or any item thereof, offered for
      sale in accordance with this Section without accountability to the relevant
      Debtor (except to the extent of surplus money received as provided in Section
      7.4). If, under mandatory requirements of applicable law, the Secured
      Party
      shall be
      required to make disposition of the Collateral within a period of time which
      does not permit the giving of notice to the relevant Debtor as hereinabove
      specified, the Secured Party
      need
      give such Debtor only such notice of disposition as shall be reasonably
      practicable in view of such mandatory requirements of applicable
      law.

     

    7.3 Waiver
      of Claims.
      Except
      as otherwise provided in this Agreement, EACH DEBTOR HEREBY WAIVES, TO THE
      EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION
      WITH THE APPICABLE SECURED PARTY'S TAKING POSSESSION OR SUCH SECURED PARTY’S
      DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND
      ALL
      PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH
      RIGHT WHICH SUCH DEBTOR WOULD OTHERWISE HAVE UNDER THE CONSTITUTION OR ANY
      STATUTE OF THE UNITED STATES OR OF ANY STATE, and such Debtor hereby further
      waives, to the extent permitted by law:

     

    (i)
      all
      damages occasioned by such taking of possession except any damages which are
      the
      direct result of the Secured
      Party’s
      gross
      negligence or willful misconduct;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)
      all
      other requirements as to the time, place and terms of sale or other requirements
      with respect to the enforcement of the Secured Party’s
      tights
      hereunder; and

     

    (iii)
      all
      rights of redemption, appraisement, valuation, stay, extension or moratorium
      now
      or hereafter in force under any applicable law in order to prevent or delay
      the
      enforcement of this Agreement or the absolute sale of the Collateral or any
      portion thereof, and each Debtor, for itself and all who may claim under it,
      insofar as it
      or
      they now or hereafter lawfully may, hereby waives the benefit of all such
      laws.

     

    Any
      sale
      of, or the grant of options to purchase, or any other realization upon, any
      Collateral shall
      operate to divest all right, title, interest, claim and demand, either at law
      or
      in equity, of
      the
relevant
      Debtor therein and thereto, and shall be a perpetual bar both at law and in
      equity against such Debtor and against any and all Persons claiming or
      attempting to claim the Collateral so sold, optioned or realized upon, or any
      part thereof, from, through and under such
      Debtor.

    

    7.4 Application
      of Proceeds.

     

    (a) All
      monies collected by the Secured Party
      upon any
      sale or other disposition of the Collateral, together with all other moneys
      received by the Secured Party, shall be applied as follows:

     

    (i) As
      to
      the Collateral:

     

    (A) first;
      to
      the payment of all Obligations owing to Secured Party
      of the
      type described in clauses (iii) and (iv) of the definition of "Obligations"
      contained in Article IX hereof; and

     

    (B) second;
      to the relevant Debtor or, to the extent directed by such Debtor or a court
      of
      competent jurisdiction, to whomever may be lawfully entitled to receive such
      surplus.

     

    (b) For
      purposes of applying payments received in accordance with this Section 7.4,
      the
      Secured Party
      shall be
      entitled to rely upon its own determination of the outstanding Obligations.
      Unless it has actual knowledge to the contrary, the Secured Party
      in
      acting hereunder, shall be entitled to assume that no Obligations other than
      principal, interest and regularly accruing fees are owing to any other
      party,

     

    (c) It
      is
      understood that each Debtor shall remain liable to the extent of any deficiency
      between (x) the amount of the obligations for which it is liable directly or
      as
      a Guarantor that are satisfied with proceeds of the Collateral and (y) the
      aggregate outstanding amount of such Obligations.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.5 Remedies
      Cumulative.
      Each and
      every right, power and remedy hereby specifically given to the Secured Party
      shall be in addition to every other right, power and remedy specifically given
      under this Agreement or the other Transaction Documents or now or hereafter
      existing at law or in equity, or by statute and each and every right, power
      and
      remedy whether specifically herein given or otherwise existing may be exercised
      from time to time or simultaneously and as often and in such order as may be
      deemed expedient by the Secured Party. All such rights, powers and remedies
      shall be cumulative and the exercise or the beginning of exercise of one shall
      not be deemed a waiver of the right to exercise any other or others. No delay
      or
      omission of the Secured Party in the exercise of any such right, power or remedy
      and no renewal or extension of any of the Obligations shall impair any such
      right, power or remedy or shall be construed to be a waiver of any Default
      or
      Event of Default or an acquiescence therein. In the event that the Secured
      Party
      shall bring any suit to enforce any
      of its
      rights hereunder and shall be entitled to judgment, then in such suit the
      Secured Party may recover expenses, including attorneys' fees, and the amounts
      thereof shall be included in such
      judgment.

     

    7.6 Discontinuance
      of Proceedings.
      In case
      the Secured Party shall have instituted any proceeding to enforce any right,
      power or remedy under this Agreement by foreclosure, sale,
      entry or otherwise, and such proceeding shall have been discontinued or
      abandoned for any reason or shall have been determined adversely to the Secured
      Party, then and in every such case
      the
      relevant Debtor, the Secured Party and each holder of any of the Obligations
      shall be restored to their former positions and rights hereunder with respect
      to
      the Collateral subject to the security interest created under this Agreement,
      and all rights, remedies and powers of the Secured Party shall continue as
      if no
      such proceeding had been instituted (except to the extent of a determination
      adverse to the Secured Party in such a proceeding).

     

    ARTICLE
      VIII

    

    INDEMNITY

     

    8.1 Indemnity.

     

    (a) Each
      Debtor jointly and severally agrees to indemnify, reimburse and hold the Secured
      Party, and each of its respective successors, permitted assigns, employees,
      agents and servants (hereinafter in this Section 8.1 referred to individually
      as
      "Indemnitee,"
      and
      collectively as "Indemnitees")
      harmless from any and all liabilities, obligations, losses, damages, penalties,
      claims, demands, actions, suits, judgments and any and all reasonable costs
      and
      expenses (including reasonable attorneys' fees and expenses) (for the purposes
      of this Section 8.1 the foregoing are collectively called "expenses") of
      whatsoever kind and nature imposed on, asserted against or incurred by any
      of
      the Indemnitees in any way arising out of, or resulting from, this Agreement,
      any other Transaction Document or the documents executed in connection herewith
      and therewith or in connection with the enforcement of any of the terms of,
      or
      the preservation of any rights hereunder or thereunder, or in any way relating
      to or arising out of the manufacture, ownership, ordering, purchase, delivery,
      control, acceptance, lease, financing, possession, operation, condition, sale,
      return or other disposition, or use of the Collateral (including, without
      limitation, latent or other defects, whether or not discoverable), the
      violation
      of the laws of any country, state or other governmental body or unit, any tort
      (including, without limitation, claims arising or imposed under the doctrine
      of
      strict liability, or
      for or
      on account of injury to or 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
      death
      of any Person (including any Indemnitee), or property damage),
      or contract claim; provided that no Indemnitee shall be indemnified pursuant
      to
      this Section 8.1 (a) for expenses, losses, damages, obligations, penalties,
      claims, demands, actions, suits, judgments, costs or liabilities to the extent
      caused by the gross negligence or willful misconduct of such Indemnitee. Each
      Debtor agrees that upon written notice by any Indemnitee of the assertion of
      such a liability, obligation, loss, damage, penalty, claim, demand, action,
      judgment or suit, such Debtor shall assume all responsibility for the defense
      thereof. Each Indemnitee agrees to use its best efforts to promptly notify
      such
      Debtor of any such assertion of which such Indemnitee has
      knowledge.

     

    (b) Without
      limiting the application of Section 8.1(a), each Debtor agrees, jointly and
      severally, to pay, or reimburse-the Secured Party for any and all reasonable
      fees, costs and expenses of whatever kind or nature incurred in connection
      with
      the creation, preservation or protection of the Secured Party's Liens on, and
      security interest in, the Collateral, including, without limitation, all fees
      and taxes in connection with the recording or filing of instruments and
      documents in public offices, payment or discharge of any taxes or Liens upon
      or
      in respect of the Collateral, premiums for insurance with respect to the
      Collateral and all other reasonable fees, costs and expenses in connection
      with
      protecting, maintaining or preserving the Collateral and the Secured Party's
      interest therein, whether through judicial proceedings or otherwise, or in
      defending or prosecuting any actions, suits or proceedings arising out of or
      relating to the Collateral,

     

    (c) Without
      limiting the application of Section 8.1 (a) or (b), each Debtor jointly and
      severally agrees to pay, indemnify and hold each Indemnitee harmless from and
      against any loss, costs, damages and expenses which such Indemnitee may suffer,
      expend or incur in consequence of or growing out of any misrepresentation by
      an
      Debtor in this Agreement, or in any statement or writing contemplated by or
      made
      or delivered pursuant to or in connection with this Agreement.

     

    (d) If
      and to
      the extent that the obligations of any Debtor under this Section 8.1 are
      unenforceable for any reason, each Debtor hereby agrees to make the maximum
      contribution to the payment and satisfaction of such obligations which is
      permissible under applicable law.

     

    8.2 Indemnity
      Obligations Secured by Collateral; Survival.
      Any
      amounts paid by any Indemnitee as to which such Indemnitee has the right to
      reimbursement shall constitute Obligations secured by the Collateral. The
      indemnity obligations of each Debtor contained in this Article VIII shall
      continue in full force and effect notwithstanding the full payment of all the
      Notes issued under the Credit Agreement, and the payment of all of the other
      Obligations and notwithstanding the discharge thereof.

     

    ARTICLE
      IX

    

    DEFINITIONS

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.1 Definitions,
      The
      following terms shall have the meanings herein specified unless the context
      otherwise requires. Such definitions shall be equally applicable to the singular
      and plural forms of the terms defined.

     

    "Agreement"
      shall mean this Amended and Restated Security Agreement as the same may be
      modified, supplemented or amended from time to time in accordance with its
      terms.

     

    "Debtor"
      or “Debtors” shall have the meaning specified in the first paragraph of this
      Agreement.

     

     

    "Business
      Day" means any day excluding Saturday, Sunday and any day which shall be in
      New
      Jersey a legal holiday or a day on which banking institutions are authorized
      by
      law
      to
      close.

     

    "Chattel
      Paper" shall have the meaning assigned that term under the Uniform Commercial
      Code as in effect on the date hereof in the State of Delaware.

     

    "Collateral"
      shall have the meaning provided in Section 1.1 (c) of this
      Agreement.

     

    "Contract
      Rights" shall mean all rights of an Debtor (including, without limitation,
      all
      rights
      to
      payment) under each Contract.

     

    "Contracts"
      shall mean all contracts between an Debtor and one or more additional parties
      to
      the extent the grant by an Debtor of a security interest pursuant to this
      Agreement in
      its
      right, title and interest in any such contract is not prohibited by such
      contract without the consent of any other party thereto or would not give any
      other party to such contract the right to terminate its obligations thereunder;
      provided,
      that the
      foregoing limitation shall not affect, limit, restrict or impair the grant
      by an
      Debtor of a security interest pursuant to this Agreement in any account or
      any
      money or other amounts due or to become due under any such contract, agreement,
      instrument or indenture.

     

    "Copyrights"
      shall mean any United States or foreign copyright owned by any Debtor now or
      hereafter, and registered in the United States Copyright Office or the
      equivalent thereof in any foreign country, as well as any application for a
      United States or foreign copyright registration now or hereafter made with
      the
      United States Copyright Office or the equivalent thereof in any foreign
      jurisdiction by any Debtor.

     

    "Documents"
      shall have the meaning assigned that term under the Uniform Commercial Code
      as
      in effect on the date hereof in the State of New Jersey.

     

    "Equipment"
      shall mean any "equipment," as such term is defined in the Uniform Commercial
      Code as in effect on the date hereof in the State of New Jersey, now or
      hereafter owned by any Debtor and, in any event, shall include, but shall not
      be
      limited to, all machinery, , equipment, furnishings, fixtures now or hereafter
      owned by such Debtor and any and all additions, substitutions and replacements
      of any of the foregoing, wherever located, together with all attachments,
      components, parts, equipment and accessories installed thereon or affixed
      thereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Equity
      Collateral" shall mean (a) all interests in any Subsidiary owned by any Debtor;
      (b) all rights under the certificate of incorporation or other organizational
      agreement of any Subsidiary owned by any Debtor; (c) all rights to receive
      cash
      distributions, profits, losses and capital contributions (including, but not
      limited to, distributions in kind and liquidating dividends) and any other
      rights and property interests arising out of or relating to any Subsidiary;
      and
      (d) all other additional capital stock, other securities or property (including
      cash) paid or distributed in respect of any Subsidiary by way of spin-off,
      merger, consolidation, dissolution, reclassification, combination or exchange
      of
      limited liability company interests, asset sales, or similar rearrangement
      or
      reorganization 

     

    "Event
      of
      Default" shall mean any Event of Default under the Debenture.

     

    "General
      Intangibles" shall have the meaning assigned that term under the Uniform
      Commercial Code as in effect on the date hereof in the State of New Jersey,
      and
      shall include, without limitation, all equity and other ownership interests
      in
      limited liability companies.

     

    "Goods"
      shall have the meaning assigned that term under the Uniform Commercial Code
      as
      in effect on the date hereof in the State of New Jersey.

     

    "Indemnitee"
      shall have the meaning provided in Section 8.1 of this Agreement.

     

    "Instrument"
      shall have the meaning assigned that term under the Uniform Commercial Code
      as
      in effect on the date hereof in the State of New Jersey.

     

    "Inventory"
      shall mean merchandise,
      inventory
      and goods, and all additions, substitutions and replacements thereof, wherever
      located, together with all goods, supplies, incidentals, packaging materials,
      labels, materials and any other items used or usable in manufacturing,
      processing, packaging or shipping same; in all stages of production - from
      raw
      materials through work-in-process to finished goods- and all products and
      proceeds of whatever sort and wherever located and any portion thereof which
      may
      be returned, rejected, reclaimed or repossessed by the Secured Party from an
      Debtor's customers, and shall specifically include all "inventory" as such
      term
      is defined in the Uniform Commercial Code as in effect on the date hereof in
      the
      State of New Jersey, now or hereafter owned by an Debtor.

     

    "Liens"
      shall mean any security interest, mortgage, pledge, lien, claim, charge,
      encumbrance, title retention agreement, lessor's interest in a financing lease
      or analogous instrument, in, of, or on a Debtor's property.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Marks"
      shall mean all right, title and interest in and to any United States or foreign
      trademarks, service marks and trade names now held or hereafter acquired by
      any
      Debtor, including any registration of any trademarks and service marks now
      held
      or hereafter acquired by
      an
      Debtor, which are registered in the United States Patent and Trademark Office
      or
      the equivalent thereof in any State of the United States or in any foreign
      country, as well as any unregistered marks used by any Debtor, and any trade
      dress including logos, designs, company names, business names, fictitious
      business names and other business identifiers used by any Debtor in the United
      States or any foreign country.

     

    "Obligations"
      shall mean (i) the full and prompt payment when due (whether at stated maturity,
      by acceleration or otherwise) of all obligations (including obligations which,
      but for the automatic stay under Section 362(a) of the Bankruptcy Code, would
      become due) and liabilities of each Debtor, now existing or hereafter incurred
      under, arising out of or in connection with the Transaction Documents to which
      it is a party and the due performance and compliance by such Debtor with the
      terms of each such Transaction Document; (ii) any and all sums advanced by
      the
      Secured Party
      in order
      to preserve the Collateral or preserve its security interest in the Collateral;
      (iii) in the event of any proceeding for the collection or enforcement of any
      indebtedness, obligations, or liabilities of each Debtor referred to in clauses
      (i), (ii) and (iii), after an Event of Default shall have occurred and be
      continuing, the reasonable expenses of retaking, holding, preparing for sale
      or
      lease, selling or otherwise disposing of or realizing on the Collateral, or
      of
      any exercise by the Secured Party
      of its
      rights hereunder, together with reasonable attorneys' fees and court costs;
      and
      (iv) all amounts paid by any Indemnitee as to which such Indemnitee has the
      right to reimbursement under Section 8.1
      of this
      Agreement.

     

    "Patents"
      shall mean any United States or foreign patent to which any Debtor now or
      hereafter has title and any divisions or continuations thereof, as well as
      any
      application for a United States or foreign patent now or hereafter made by
      such
      Debtor.

     

    “Permitted
      Liens” shall mean, collectively, the following:

    

    (a) Liens
      for
      taxes, assessments and other governmental charges or levies not yet due or
      Liens
      for taxes, assessments and other governmental charges or levies being contested
      in good faith and by appropriate proceedings for which adequate reserves (in
      the
      good faith judgment of the management of MobilePro) have been
      established;

    

    (b) Liens
      in
      respect of property or assets of MobilePro or any MobilePro Subsidiary imposed
      by law which were incurred in the ordinary course of business, such as
      carriers', warehousemen's and mechanics' Liens, statutory landlords' Liens,
      and
      other similar Liens arising in the ordinary course of business, and (x) which
      do
      not individually or in the aggregate materially detract from the value of such
      property or assets or materially impair the use thereof in the operation of
      the
      business of MobilePro or any MobilePro Subsidiary or (y) which are being
      contested in good faith by appropriate proceedings, which proceedings have
      the
      effect of preventing the forfeiture or sale of the property or asset subject
      to
      such Lien;

    

    (c) Liens
      created by or pursuant to the Airlie Collateral Documents or any of the other
      Airlie Loan Documents, 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d) Liens
      in
      favor of Cornell;

    

    (e) Liens
      created pursuant to capital leases not prohibited by any of the Transaction
      Documents;

    

    (f) Liens
      arising from judgments, decrees or attachments and Liens securing appeal bonds
      arising from judgments, in each case in circumstances not constituting an Event
      of Default under any of the Transaction Documents;

    

    (g) Liens
      (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary
      course of business in connection with workers' compensation, unemployment
      insurance and other types of social security, governmental insurance or
      government benefits or to secure the performance of tenders, statutory
      obligations, surety and appeal bonds, bids, leases, government contracts,
      performance and return-of-money bonds and other similar obligations incurred
      in
      the ordinary course of business (exclusive of obligations in respect of the
      payment for borrowed money);

    

    (h) Easements,
      rights-of-way, restrictions, minor defects or irregularities in title and other
      similar charges or encumbrances not interfering in any material respect with
      the
      ordinary conduct of the business of MobilePro or any of the MobilePro
      Subsidiaries; 

     

    (i) Purchase
      money Liens securing payables arising from the purchases by MobilePro or any
      of
      the MobilePro Subsidiaries of any equipment or goods in the normal course of
      business, provided
      that
      such payables do not constitute Indebtedness; 

    

    (j) Any
      interest or title of a lessor under any lease not prohibited by any of the
      Transaction Documents;

    

    (k) Liens
      arising pursuant to purchase money mortgages or security interests securing
      indebtedness representing the purchase price of assets acquired by MobilePro
      or
      any of the MobilePro Subsidiaries after the date hereof, provided
      that any
      such Liens attach only to the assets so acquired and that all indebtedness
      secured by Liens created pursuant to this clause (k) shall not exceed, at any
      time, an amount equal to $50,000 less the aggregate obligations under capital
      leases then outstanding; and

    

    (l) other
      Liens existing on the date hereof which are set forth on Annex J attached
      hereto.

     

    "Proceeds"
      shall have the meaning assigned that term under the Uniform Commercial Code
      as
      in effect in the State of New Jersey on the date hereof or under other relevant
      law and, in any event, shall include, but not be limited to, (i) any and all
      proceeds of any insurance, indemnity, warranty or guaranty payable to the
      Secured Party or an Debtor from time to time with respect to any of the
      Collateral, (ii) any and all payments (in any form whatsoever) made or due
      and
      payable to an Debtor from time to time in connection with any requisition,
      confiscation, condemnation, seizure or forfeiture of all or any part of the
      Collateral by any governmental authority (or any person acting under color
      of
      governmental authority), (iii) any and all other amounts from time to time
      paid
      or payable under or in connection with any of the Collateral and (iv) all tax
      refunds,

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Receivables"
      shall mean any "account" as such term is defined in the Uniform Commercial
      Code
      as in effect on the date hereof in the State of New Jersey, now or hereafter
      owned by an Debtor and, in any event, shall include, but shall not be limited
      to, all of such Debtor's rights to payment for goods sold or leased or services
      performed by such Debtor, whether now in existence or arising from time to
      time
      hereafter, including, without limitation, rights evidenced by an account, note,
      contract, security agreement, chattel paper, or other evidence of indebtedness
      or security, together with (a) all security pledged, assigned, hypothecated
      or
      granted to or held by such Debtor to secure the foregoing, (b) all of such
      Debtor's right, title and interest in and to any goods, the sale of which gave
      rise thereto, (c) all guarantees, endorsements and indemnifications on, or
      of,
      any of the foregoing, (d) all powers of attorney for the execution of any
      evidence of indebtedness or security or other writing in connection therewith,
      (e) all books, records, ledger cards, and invoices relating thereto, (f)
      evidences of the filing of financing statements and other statements and the
      registration of other instruments in connection therewith and amendments
      thereto, all notices to other creditors or secured parties, and certificates
      from filing or other registration officers, (g) all credit information, reports
      and memoranda relating thereto, and (h) all other writings related in any way
      to
      the foregoing.

     

    “Security
      Documents” shall mean (i) the
      Assignment of Security Interests of even date herewith given by Airlie
      Opportunity Master Fund, Ltd. to Cornell Capital and acknowledged by MobilePro,
      (ii) this Agreement, (iii) the Amended and Restated Collateral Assignment of
      Intellectual Property Rights.

     

    "Securities"
      shall have the meaning assigned that term under the Uniform Commercial Code
      as
      in effect on the date hereof in the State of New Jersey.

     

    “Subsidiary"
      shall mean any entity organized under the laws of its jurisdiction of formation,
      more than 50% of the shares of capital stock, members interest or other equity
      is owned directly by a Debtor or indirectly through one or more other
      Subsidiaries of a Debtor.

     

    "Termination
      Date" shall have the meaning provided in Section 10.9(a) of this
      Agreement.

     

    "Trade
      Secret Rights" shall mean the rights of an Debtor in any Trade Secret it
      holds.

     

    "Trade
      Secrets" means any secretly held existing or proprietary existing engineering
      and other data, information, production procedures and other know-how relating
      to the design, manufacture, assembly, installation, use, operation, marketing,
      sale and servicing of any products or business of an Debtor worldwide whether
      written or not written.

     

    “Transaction
      Documents”, wherever
      used herein, means any one of the following items: Securities Purchase Agreement
      of even date herewith between MobilePro and Cornell Capital, the Debenture,
      the
      Registration Rights Agreement of even date herewith between MobilePro and
      Cornell Capital, the Escrow Agreement of even date herewith between MobilePro
      and Cornell Capital, the Warrant of even date herewith given by MobilePro to
      Cornell Capital, the Security Documents, the Guaranty Agreement of even date
      herewith given by the MobilePro Subsidiaries to Cornell Capital and all other
      instruments, documents, contracts, agreements, promissory notes and evidences
      of
      indebtedness now or hereafter existing between MobilePro and/or its subsidiaries
      and Cornell Capital, whether or not related to the indebtedness evidenced by
      the
      Debenture.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      X

    

    MISCELLANEOUS

    

    10.1
      Notices.
      Except
      as otherwise expressly provided herein, all notices and other communications
      hereunder shall be in writing (including telegraphic, telex, telecopier,
      facsimile

     

    (i)
      or
      cable communication) and shall be mailed, telegraphed, telexed, telecopied,
      faxed, cabled or
      delivered to the parties hereto at the respective address set forth below and
      shall be effective when
      received: if to any Debtor, at its address contained in any Transaction
      Agreement (for MobilePro);

     

    (ii)           
      if
      to the
      Secured Party, at:

     

    Cornell
      Capital Partners, LP

    101
      Hudson Street, Suite 3700

    Jersey
      City, New Jersey 07302

    Fax:
      (201) 985-8266

    Attn:
      Mark Angelo, President

    

    With
      a
      copy to:

    

    Cornell
      Capital Partners, LP

    101
      Hudson Street, Suite 3700

    Jersey
      City, New Jersey 07302

    Fax:
      (201) 985-8266

    Attn:
      Troy J. Rillo, Esquire

    

    or
      at
      such other address as shall have been furnished in writing by any Person
      described above to the party required to give notice hereunder.

     

    10.2
      Waiver;
      Amendment.

     

    (a)
      None
      of the terms and conditions of this Agreement may be amended, changed, waived,
      modified or varied in any manner whatsoever unless in writing duly signed
by
      the
      Secured Party and each Debtor affected
      thereby (it being understood that the addition or release of any Debtor
      hereunder shall not constitute an amendment, change, waiver, modification or
      variance affecting any Debtor other than the Debtor so added or released)
      provided that (i) no such amendment, change, waiver, modification or variance
      shall be made to Section 7.4 or this Section 10.2(a) without the consent of
      the
      Secured Party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
      No
      delay on the part of the Secured Party
      in
      exercising any of its rights, remedies, powers and privileges hereunder or
      partial or single exercise thereof, shall constitute
      a waiver thereof. No notice to or demand on any Debtor shall constitute a waiver
      of any of the rights
      of
      the Secured Party
      to any
      other or further action without notice or demand to the extent such action
      is
      permitted to be taken by the Secured Party
      without
      notice or demand under the terms of this Agreement.

     

    10.3
      Obligations
      Absolute.
      The
      obligations of each Debtor hereunder shall remain in full force and effect
      without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency,
      reorganization, arrangement, readjustment, composition, liquidation or the
      like
      of
      any Debtor; (b) any exercise or non-exercise, or any waiver of, any right,
      remedy, power or privilege under or in respect of this Agreement or any other
      Transaction Document except as specifically set forth in a waiver granted
      pursuant to the restrictions of Section 10.2
      hereof;
      or (c) any amendment to or modification of any other Transaction Document or
      any
      security for any of the Obligations; whether or not any Debtor shall have notice
      or knowledge of any of the foregoing, The rights and remedies of the
Secured
      Party
      herein
      provided are cumulative and not exclusive of any rights or remedies which the
      Secured Party
      would
      otherwise have.

     

    10.4 Successors
      and Assigns.
      This
      Agreement shall be binding upon each Debtor and its successors and assigns
      and
      shall inure to the benefit of the Secured Party
      and its
      successors and assigns. All agreements, statements, representations and
      warranties made by such Debtor herein or in any certificate or other instrument
      delivered by each Debtor or on its behalf under this Agreement shall be
      considered to have been relied upon by the Secured Party
      and
      shall survive the execution and delivery of this Agreement, the other
      Transaction Documents regardless of any investigation made by the Secured
      Party.

     

    10.5  Headings
      Descriptive.
      The
      headings of the several sections of this Agreement are inserted for convenience
      only and shall not in any way affect the meaning or construction of any
      provision of this Agreement.

     

    10.6 Severability,
      Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of
      such
      prohibition or unenforceability without invalidating the remaining provisions
      hereof, and any such
      prohibition or unenforceability in any, jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction.

     

    10.7
      Governing
      Law. This
      Agreement shall be deemed to be made under and shall be construed in accordance
      with the laws of the State of New Jersey without giving effect to the principals
      of conflict of laws thereof. Each of the parties consents to the jurisdiction
      of
      the U.S. District Court sitting in the District of the State of New
      Jersey
      or the state courts of the State of New Jersey sitting in Hudson County, New
      Jersey in connection with any dispute arising under this Debenture and hereby
      waives, to the maximum extent permitted by law, any objection, including any
      objection based on forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.8
      Debtors'
      Duties.
      It is
      expressly agreed, anything herein contained to the contrary notwithstanding,
      that each Debtor shall remain liable to perform all of the obligations, if
      any,
      assumed by it with respect to the Collateral and the Secured Party shall not
      have any obligations or liabilities with respect to any Collateral by reason
      of
      or arising out of this Agreement, nor shall the Secured Party be required or
      obligated in any manner to perform or
      fulfill
      any of the obligations of any Debtor under or with respect to any
      Collateral.

     

    10.9
      Termination;
      Release.

     

    (a) After
      the
      Termination Date, this Agreement shall terminate (provided that all indemnities
      set forth herein including, without limitation, in Section 8.1 hereof shall
      survive such termination), and the Secured Party,
      at the
      request and expense of the relevant Debtor, will execute and deliver to such
      Debtor a proper instrument or instruments (including Uniform Commercial Code
      termination statements on form UCC-3) acknowledging the satisfaction and
      termination of this Agreement, and will duly assign, transfer and deliver to
      such Debtor (without recourse and without any representation or warranty) such
      of the Collateral as may be in the possession of the Secured Party
      and as
      has not theretofore been sold or otherwise applied or released pursuant to
      this
      Agreement, As used in this Agreement, "Termination
      Date"
      shall
      mean the date upon which all of the Obligations to the Lender under the
      Debenture and related Transaction Documents, or any amendments, modifications
      or
      restatements thereof have
      been
      indefeasibly paid and performed in full
      (other
      than any indemnities described in Section 8.1 hereof or arising in connection
      with the Warrants or Common Stock issued thereunder which are not then to be
      performed).

     

    (b) So
      long
      as no Event of Default in respect of any
      of
      the Obligations is in existence
      or would exist after the application of proceeds as provided below, the Secured
      Party may,
      at the
      request of the relevant Debtor, release any or all of the Collateral,
provided
      that
      (i)
      such
      release is permitted by the terms of the Debenture and the other Transaction
      Documents, or
      otherwise
      has been approved in writing by the Secured Party,
      and
      (ii)
      the
      proceeds of
      such
      Collateral are applied as
      required pursuant to the Debenture
      and other Transaction Documents or any consent or waiver with respect thereto,
      if applicable.

     

    (c) At
      any
      time that the relevant Debtor desires that the Secured Party
      take any
      action to give effect to any release of Collateral pursuant to the foregoing
      Section 10.9(b), it shall deliver to the Secured Party
      a
      certificate signed by an Authorized Officer describing the Collateral to be
      sold. In the event that any part of the Collateral is
      to
      be
      released as provided in the preceding paragraph (b), the Secured
      Party,
      at the
      request and expense of such Debtor, will release
      such Collateral and assign, transfer and deliver to such Debtor or its designee
      (without recourse and without any representation or warranty) such
      of
      the
      Collateral as is then being (or has been) so sold and as may be in the
      possession of the Secured Party
      and has
      not theretofore been released pursuant to this Agreement. 

     

    10.10
      Counterparts.
      This
      Agreement maybe executed in any number of counterparts and by the different
      parties hereto on separate counterparts, each of which when so executed and
      delivered shall be an original, but all of which shall together constitute
      one
      and the same instrument. A set of counterparts executed by all the parties
      hereto shall be lodged with the Debtor
      and the Secured Party.

     

    10.11
      Additional
      Debtors.
      It is
      understood and agreed that any Subsidiary of any Debtor
      that is
      required to execute a counterpart of this Agreement after the date hereof shall
      become a Debtor hereunder by executing a counterpart hereof and delivering
      the
      same to the Secured Party.

     

    

    [the
      balance of this page intentionally left blank]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be executed and delivered by their
      duly authorized officers as of the date first above written.

    
 

    DEBTORS:

    

    

    MOBILEPRO
      CORP.

    

    

    By_________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    NEOREACH,
      INC.

    

    By_________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    

    NEOREACH
      WIRELESS, INC.

    

    

    By__________________________________
      

    Jay
      O.
      Wright, Chief Executive Officer

    

    CLOSECALL
      AMERICA, INC.

    

    By_________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    AFFINITY
      TELECOM,
      INC.

    

    By________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    US
      ONE ACQUISITION CORP.

    

    By________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    DAVEL
      ACQUISITION CORP. 

    

    

    By:_________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    DAVEL
      COMMUNICATIONS, INC.

    

    

    By:_________________________________
      

    Jay
      O.
      Wright, Chief Executive Officer

    

    

    

    DAVEL
      FINANCING COMPANY, LLC

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    PHONETEL
      TECHNOLOGIES, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    CHEROKEE
      COMMUNICATIONS, INC.

    

    

    By:______________________________________
      

    Geoffrey
      B. Amend, Executive Vice President

    

    

    DAVEL
      COMMUNICATIONS GROUP, INC. 

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President 

    

    

    ADTEC
      COMMUNICATIONS, INC. 

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    CENTRAL
      PAYPHONE SERVICES, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    COMMUNICATIONS
      CENTRAL INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    COMMUNICATIONS
      CENTRAL OF GEORGIA, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    DAVEL
      MEDIA, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    DAVEL
      MEXICO, LTD.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    DAVELTEL,
      INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    INTERSTATE
      COMMUNICATIONS, INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    INVISION
      TELECOM, INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PEOPLES
      ACQUISITION CORPORATION

    

    

    By:______________________________________

     Geoffrey
      B. Amend, Executive Vice President

    

    PEOPLES
      COLLECTORS, INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    PEOPLES
      TELEPHONE COMPANY, INC.

    a
      New York corporation

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    PEOPLES
      TELEPHONE COMPANY, INC.

    a
      New Hampshire corporation

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    PTC
      CELLULAR, INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    PTC
      SECURITY SYSTEMS, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SILVERADO
      COMMUNICATIONS CORP.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    TELALEASING
      ENTERPRISES, INC.

    

    

    By:_____________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    

    T.R.C.A.,
      INC.,

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

     

    

    TELINK,
      INC.

    

    

    By:______________________________________

    Geoffrey
      B. Amend, Executive Vice President

    

    

    

    DFW
      INTERNET SERVICES, INC.

    

    By_________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    THE
      RIVER INTERNET ACCESS CO. 

    

    

    By________________________________

     Jay
      O.
      Wright, Chief Executive Officer

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WORLD
      TRADE NETWORK, INC.

    

    By________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    TICON.NET,
      INC.

    

    By________________________________ 

    Jay
      O.
      Wright, Chief Executive Officer

    

    INTERNET
      EXPRESS, INC.

    

    By________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    

    SHREVENET,
      INC.

    

    By_________________________________ 

    Jay
      O.
      Wright, Chief Executive Officer

    CLOVER
      COMPUTER CORPORATION

    

    By__________________________________

    Jay
      O.
      Wright, Chief Executive Officer

    

    AUGUST.NET
      SERVICES, INC.

    

    By_________________________________

     Jay
      O.
      Wright, Chief Executive Officer

    

    SENSE
      NETWORKING, INC.

    

    

    By_________________________________

     Jay
      O.
      Wright, Chief Executive Officer

    

    
       

       

       

    

    SECURED
      PARTY:

     

     

    CORNELL
      CAPITAL PARTNERS, L.P.

     

     

    By: ______________________________

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    [Annex
      A through Annex G to be attached] 

     

     

     

     

     

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    ANNEX
      H

    SECURITY
      AGREEMENT

     

    

    NOTICE
      OF PLEDGE

    

    (Pledge
      by______________  (the
      "Debtor")

    

    

    TO:
      ________________,
      Subsidiary, a ___ _________ limited
      liability company (the "Subsidiary")

    

    Notice
      is
      hereby given that, pursuant to an Amended and Restated Security Agreement (an
      unexecuted copy of which is attached hereto), dated May __, 2005 (the "Security
      Agreement"), from ___________(the "Debtor") to Cornell Capital Partners, LP
      (the
      "Secured Party"), the Debtor has pledged and assigned to the Secured Party,
      and
      granted to the Secured Party a continuing first priority security interest
      in,
      all of its right, title and interest, whether now existing or hereafter arising
      or acquired, in, to, and under the following (the "Equity
      Collateral"):

     

    (a)
      all
      limited liability company interests in the Subsidiary;

    

    (b)
      all
      rights under the Subsidiary 's Limited Liability Company Agreement
      dated ,
      ____ ,
      (as amended, modified, restated, substituted, extended and renewed at any time
      and from time to time, the "Operating Agreement");

    

    (c)
      all
      rights to receive cash distributions, profits, losses and capital distributions
      (including, but not limited to, distributions in kind and liquidating dividends)
      and any other rights and property interests arising out of or relating to the
      Subsidiary and/or the Operating Agreement;

    

    (d)
      all
      other or additional limited liability company interests, other securities or
      property (including cash) paid or distributed in respect of the Subsidiary
      by
      way of spin-off, merger, consolidation, dissolution, reclassification,
      combination or exchange of limited liability company interests, asset sales,
      or
      similar rearrangement or reorganization; and

    

    (e)
      all
      proceeds (both cash and non-cash) of the foregoing, whether now or hereafter
      arising under the foregoing.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Pursuant
      to the Security Agreement, the Subsidiary is hereby authorized and directed
      to:

    

    (i)
      register on the Subsidiary's books the Debtor's pledge to the Secured Party
      of
      the Debtor's interests in the Subsidiary; and

    

    (ii)
      make
      direct payment to the Secured Party of any amounts due or to become due to
      the
      Debtor under the Operating Agreement, if so notified by the Secured
      Party.

     

    The
      Debtor hereby requests the Subsidiary to indicate the Subsidiary's acceptance
      of
      this Notice and consent to and confirmation of its terms and provisions by
      signing a copy hereof where indicated below and returning the same to the
      Secured Party along with an Initial Transaction Statement in the form also
      attached hereto.

    

    Dated
      as
      of

    _______________________________

     

     

    Debtor

     

    By:____________________________

     

     

    THE
      Subsidiary 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    ANNEX
      I

    SECURITY
      AGREEMENT

     

    INITIAL
      TRANSACTION STATEMENT

     

    (Pursuant
      to Section 8-408 of the Uniform Commercial Code of the State of_ )

     

    (Pledge
      by _
      (the
      "Debtor") 

     

    TO:
      Cornell Capital Partners LP (the ".Secured Party")

    RE:
      Limited Liability Company Interests in a
      __________ limited
      liability company (the "Subsidiary")

     

    1, Registration
      of Pledge. This is to confirm registration by the Subsidiary of the pledge
      to
      the Secured Party of the entire right, title and interest in and to the
Subsidiary
      (the "Interest") owned of record by _ __,
      as
      member of the Subsidiary (being
      a percent
      (_%) membership
      interest in the Subsidiary).

     

    Such
      pledge was registered on

     

    The
      address of the registered owner of the Interest is:

     

    2.
      Liens,
      Adverse Claims and Restrictions. The Interest is not subject to any liens or
      restrictions of the Subsidiary or adverse claims (as to which the Subsidiary
      has
      a duty under Section 8-403(4) of the Uniform Commercial Code of the State
      of________________________________________________________________).

     

    (a) The
      Interest is subject to all of the terms of the limited liability company
      agreement of the Subsidiary and of applicable laws.

     

    (b)
      The
      Interest may not be transferred without compliance with the provisions of the
      limited liability company agreement of the Subsidiary and compliance with
      applicable federal and state securities laws.

     

    (c) At
      the
      time of registration of the pledge described above, the Interest was not subject
      to any liens or restrictions of the Subsidiary (except as set
      forth
      above or in the limited liability company agreement), or any adverse claims
      as
      to
      which the Subsidiary has a duty pursuant to Section 8-403(4) of the Uniform
      Commercial Code of the State of

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

     

    This
      Statement is a record of the rights of the Secured Party as of the time of
      its
      issuance, and is neither a negotiable instrument nor a security.

    

    Dated
      as
      of__________________

    [THE
      Subsidiary]

     

    By:______________________

     

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    ANNEX
      J

    

    SECURITY
      AGREEMENT

    

    ADDITIONAL
      LIENS

    

    1.
      Notes
      in the aggregate principal amount of $530,000 by DFW Internet Services, Inc.
      and
      Security Agreement by DFW Internet Services, Inc. and Augustnet Services, LLC
      in
      favor of Louis G. Fansak, Andrew K. Fullford, John M. Scott, Dennis W. Simpson,
      Andrew T. Fonsak and Fiayane Manas; and dated as of April 21, 2004.

    

    2.
      Liens
      securing the Notes in the original aggregate principal amount of $250,000 by
      Mobilepro Corp. and DFW Internet Services, Inc. pursuant to that certain
      Security Agreement by Mobilepro Corp.. and DFW Internet Services, Inc. in favor
      of Peter Rylko, Richards Wells and Larry Smith dated as of July 14,
      2004.

    

    3.
      Liens
      securing the Notes in the original aggregate principal amount of $250,000 by
      Mobilepro Corp. and DFW Internet Services, Inc. pursuant to that certain
      Security Agreement in favor of Crescent Communications, Inc., a Nevada
      Corporation dated as of June 21, 2004.

    

    4.
      Liens
      securing the Notes in the original aggregate principal amount of $300,000 by
      Mobilepro Corp. and DFW Internet Services, Inc. pursuant to that certain
      Security Agreement by DFW Internet Services, Inc. in favor of Glenn Hughes
      and
      Loretta Hughes dated as of March 1, 2004 

    

    5.
      Liens
      securing a Consulting Agreement with DFW Internet Services, Inc. pursuant to
      that certain Security Agreement by Mobilepro Corp. in favor of Beech Holdings,
      Inc., a Nevada corporation dated as of January 19, 2004.

    

    6.
      JPMorgan/Chase Manhattan Bank. Davel Communications, Inc. ("Davel") maintains
      a
      money market investment account at JP Morgan Account 025-125038. At May 12,
      2005, the balance in the account was approximately $50,000. The funds maintained
      therein are pledged as collateral to secure a letter of credit issued to a
      leasing company. Davel is in the process of negotiating the elimination of
      the
      letter of credit in consideration of a cash security deposit of $10,000. At
      such
      time the investment account balance will no longer be encumbered.

    

    7.
      Liens
      securing an agreement by CloseCall America, Inc. pursuant to that certain
      Security Agreement by CloseCall America, Inc. in favor of Cellco Partnership
      d/b/a Verizon. 

     

    8.
      Liens
      securing an agreement by CloseCall America, Inc. pursuant to that certain
      Security Agreement by CloseCall America, Inc. in favor of Global Crossing
      Bandwith, Inc. 

     

    9.
      Liens
      securing an agreement by CloseCall America, Inc. pursuant to that certain
      Security Agreement by CloseCall America, Inc. in favor of Qwest Communications
      Corp.

     

    10.
      Liens
      securing a rental contract by CloseCall America, Inc. pursuant to that certain
      Security Agreement by CloseCall America, Inc. in favor of Inter-Tel Leasing,
      Inc.

     

    11.
      Liens
      securing a an overdraft protection account by CloseCall America, Inc. pursuant
      to that certain Security Agreement by CloseCall America, Inc. in favor of
      Centreville National Bank.EXHIBIT
        10.39

       

      INVESTOR
        REGISTRATION RIGHTS AGREEMENT

       

      THIS
        REGISTRATION RIGHTS AGREEMENT
        (this
“Agreement”),
        dated
        as of May 13, 2005, by and among MOBILEPRO
        CORP.,
        a
        Delaware corporation (the “Company”),
        and
CORNELL
        CAPITAL PARTNERS, LP (the
        “Investor”).

       

      WHEREAS:

       

      A. In
        connection with the Securities Purchase Agreement by and among the parties
        hereto of even date herewith (the “Securities
        Purchase Agreement”),
        the
        Company has agreed, upon the terms and subject to the conditions of the
        Securities Purchase Agreement, to issue and sell to the Investor secured
        convertible debenture (the “Convertible
        Debenture”)
        which
        shall be convertible into that number of shares of the Company’s common stock,
        par value $0.001 per share (the “Common
        Stock”),
        pursuant to the terms of the Securities Purchase Agreement for an aggregate
        purchase price of Fifteen Million Five Hundred Dollars ($15,500,000).
        Capitalized terms not defined herein shall have the meaning ascribed to them
        in
        the Securities Purchase Agreement.

       

      B. To
        induce
        the Investor to execute and deliver the Securities Purchase Agreement, the
        Company has agreed to provide certain registration rights under the Securities
        Act of 1933, as amended, and the rules and regulations there under, or any
        similar successor statute (collectively, the “Securities
        Act”),
        and
        applicable state securities laws.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the mutual covenants contained herein and
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, the Company and the Investor hereby agree as
        follows:

       

      1.  DEFINITIONS.

       

      As
        used
        in this Agreement, the following terms shall have the following
        meanings:

       

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

       

      (b)  “Register,”“registered,”
        and
“registration”
        refer
        to a registration effected by preparing and filing one or more Registration
        Statements (as defined below) in compliance with the Securities Act and pursuant
        to Rule 415 under the Securities Act or any successor rule providing for
        offering securities on a continuous or delayed basis (“Rule
        415”),
        and
        the declaration or ordering of effectiveness of such Registration Statement(s)
        by the United States Securities and Exchange Commission (the “SEC”).

       

      (c)  “Registrable
        Securities”
        means
        the shares of Common Stock issuable to the Investor upon conversion of the
        Convertible Debenture and the Warrant Shares, as this term is defined in
        the
        Securities Purchase Agreement of even date herewith.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d)  “Registration
        Statement”
        means a
        registration statement under the Securities Act which covers the Registrable
        Securities.

       

      2.  REGISTRATION.

       

      (a)  Subject
        to the terms and conditions of this Agreement, the Company shall prepare
        and
        file, no later than sixty (60) days from the date hereof (the “Scheduled
        Filing Deadline”),
        with
        the SEC a registration statement on Form S-1 or SB-2 (or, if the Company
        is then
        eligible, on Form S-3) under the Securities Act (the “Initial
        Registration Statement”)
        for
        the resale by the Investor of the Registrable Securities, which shall include
        57,666,667 shares of Common Stock to be issued upon conversion of the
        Convertible Debenture and the Warrant. The Company shall cause the Registration
        Statement to remain effective until all of the Registrable Securities have
        been
        sold. Prior to the filing of the Registration Statement with the SEC, the
        Company shall furnish a copy of the Initial Registration Statement to the
        Investor for their review and comment. The Investor shall furnish comments
        on
        the Initial Registration Statement to the Company within twenty-four (24)
        hours
        of the receipt thereof from the Company.

       

      (b)  Effectiveness
        of the Initial Registration Statement.
        The
        Company shall use its best efforts (i) to have the Initial Registration
        Statement declared effective by the SEC no later than ninety (90) days after
        the
        date filed (the “Scheduled
        Effective Deadline”)
        and
        (ii) to insure that the Initial Registration Statement and any subsequent
        Registration Statement remains in effect until all of the Registrable Securities
        have been sold, subject to the terms and conditions of this Agreement. It
        shall
        be an event of default hereunder if the Initial Registration Statement is
        not
        declared effective by the SEC within 120 days after filing thereof.

       

      (c)  Failure
        to File or Obtain Effectiveness of the Registration Statement.
        In the
        event the Registration Statement is not filed by the Scheduled Filing Deadline
        or is not declared effective by the SEC on or before the Scheduled Effective
        Date, or if after the Registration Statement has been declared effective
        by the
        SEC, sales cannot be made pursuant to the Registration Statement (whether
        because of a failure to keep the Registration Statement effective, failure
        to
        disclose such information as is necessary for sales to be made pursuant to
        the
        Registration Statement, failure to register sufficient shares of Common Stock
        or
        otherwise then as partial relief for the damages to any holder of Registrable
        Securities by reason of any such delay in or reduction of its ability to
        sell
        the underlying shares of Common Stock (which remedy shall not be exclusive
        of
        any other remedies at law or in equity), the Company will pay as liquidated
        damages (the “Liquidated
        Damages”)
        to the
        holder, at the holder’s option, either a cash amount or shares of the Company’s
        Common Stock within three (3) business days, after demand therefore, equal
        to
        two percent (2%) of the liquidated value of the Convertible Debenture
        outstanding as Liquidated Damages for each thirty (30) day period after the
        Scheduled Filing Deadline or the Scheduled Effective Date as the case may
        be.

       

      (d)  Liquidated
        Damages.
        The
        Company and the Investor hereto acknowledge and agree that the sums payable
        under subsection 2(c) above shall constitute liquidated damages and not
        penalties and are in addition to all other rights of the Investor, including
        the
        right to call a default. The parties further acknowledge that (i) the amount
        of
        loss or damages likely to be incurred is incapable or is difficult to precisely
        estimate, (ii) the amounts specified in such subsections bear a reasonable
        relationship to, and are not plainly or grossly disproportionate to, the
        probable loss likely to be incurred in connection with any failure by the
        Company to obtain or maintain the effectiveness of a Registration Statement,
        (iii) one of the reasons for the Company and the Investor reaching an agreement
        as to such amounts was the uncertainty and cost of litigation regarding the
        question of actual damages, and (iv) the Company and the Investor are
        sophisticated business parties and have been represented by sophisticated
        and
        able legal counsel and negotiated this Agreement at arm’s length. 

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      3.  RELATED
        OBLIGATIONS.

       

      (a)  The
        Company shall keep the Registration Statement effective pursuant to
        Rule 415 at all times until the date on which the Investor shall have
        sold
        all the Registrable Securities covered by such Registration Statement (the
        “Registration
        Period”),
        which
        Registration Statement (including any amendments or supplements thereto and
        prospectuses contained therein) shall not contain any untrue statement of
        a
        material fact or omit to state a material fact required to be stated therein,
        or
        necessary to make the statements therein, in light of the circumstances in
        which
        they were made, not misleading.

       

      (b)  The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to a Registration Statement and
        the
        prospectus used in connection with such Registration Statement, which prospectus
        is to be filed pursuant to Rule 424 promulgated under the Securities Act,
        as may
        be necessary to keep such Registration Statement effective at all times during
        the Registration Period, and, during such period, comply with the provisions
        of
        the Securities Act with respect to the disposition of all Registrable Securities
        of the Company covered by such Registration Statement until such time as
        all of
        such Registrable Securities shall have been disposed of in accordance with
        the
        intended methods of disposition by the seller or sellers thereof as set forth
        in
        such Registration Statement. In the case of amendments and supplements to
        a
        Registration Statement which are required to be filed pursuant to this Agreement
        (including pursuant to this Section 3(b)) by reason of the Company’s filing a
        report on Form 10-KSB, Form 10-QSB or Form 8-K or any analogous report under
        the
        Securities Exchange Act of 1934, as amended (the “Exchange
        Act”),
        the
        Company shall incorporate such report by reference into the Registration
        Statement, if applicable, or shall file such amendments or supplements with
        the
        SEC on the same day on which the Exchange Act report is filed which created
        the
        requirement for the Company to amend or supplement the Registration Statement.
        

       

      (c)  The
        Company shall furnish to each Investor whose Registrable Securities are included
        in any Registration Statement, without charge, (i) at least one (1) copy
        of such
        Registration Statement as declared effective by the SEC and any amendment(s)
        thereto, including financial statements and schedules, all documents
        incorporated therein by reference, all exhibits and each preliminary prospectus,
        (ii) ten (10) copies of the final prospectus included in such Registration
        Statement and all amendments and supplements thereto (or such other number
        of
        copies as such Investor may reasonably request) and (iii) such other documents
        as such Investor may reasonably request from time to time in order to facilitate
        the disposition of the Registrable Securities owned by such
        Investor.

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      (d)  The
        Company shall use its best efforts to (i) register and qualify the Registrable
        Securities covered by a Registration Statement under such other securities
        or
“blue sky” laws of such jurisdictions in the United States as any Investor
        reasonably requests, (ii) prepare and file in those jurisdictions,
        such
        amendments (including post-effective amendments) and supplements to such
        registrations and qualifications as may be necessary to maintain the
        effectiveness thereof during the Registration Period, (iii) take such other
        actions as may be necessary to maintain such registrations and qualifications
        in
        effect at all times during the Registration Period, and (iv) take all other
        actions reasonably necessary or advisable to qualify the Registrable Securities
        for sale in such jurisdictions; provided, however, that the Company shall
        not be
        required in connection therewith or as a condition thereto to (w) make any
        change to its articles of incorporation or by-laws, (x) qualify to do business
        in any jurisdiction where it would not otherwise be required to qualify but
        for
        this Section 3(d), (y) subject itself to general taxation in any such
        jurisdiction, or (z) file a general consent to service of process in any
        such
        jurisdiction. The Company shall promptly notify each Investor who holds
        Registrable Securities of the receipt by the Company of any notification
        with
        respect to the suspension of the registration or qualification of any of
        the
        Registrable Securities for sale under the securities or “blue sky” laws of any
        jurisdiction in the United States or its receipt of actual notice of the
        initiation or threat of any proceeding for such purpose.

       

      (e)  As
        promptly as practicable after becoming aware of such event or development,
        the
        Company shall notify each Investor in writing of the happening of any event
        as a
        result of which the prospectus included in a Registration Statement, as then
        in
        effect, includes an untrue statement of a material fact or omission to state
        a
        material fact required to be stated therein or necessary to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading (provided that in no event shall such notice contain any material,
        nonpublic information), and promptly prepare a supplement or amendment to
        such
        Registration Statement to correct such untrue statement or omission, and
        deliver
        ten (10) copies of such supplement or amendment to each Investor. The Company
        shall also promptly notify each Investor in writing (i) when a prospectus
        or any
        prospectus supplement or post-effective amendment has been filed, and when
        a
        Registration Statement or any post-effective amendment has become effective
        (notification of such effectiveness shall be delivered to each Investor by
        facsimile on the same day of such effectiveness), (ii) of any request by
        the SEC
        for amendments or supplements to a Registration Statement or related prospectus
        or related information, and (iii) of the Company’s reasonable determination
        that a post-effective amendment to a Registration Statement would be
        appropriate.

       

      (f)  The
        Company shall use its best efforts to prevent the issuance of any stop order
        or
        other suspension of effectiveness of a Registration Statement, or the suspension
        of the qualification of any of the Registrable Securities for sale in any
        jurisdiction within the United States of America and, if such an order or
        suspension is issued, to obtain the withdrawal of such order or suspension
        at
        the earliest possible moment and to notify each Investor who holds Registrable
        Securities being sold of the issuance of such order and the resolution thereof
        or its receipt of actual notice of the initiation or threat of any proceeding
        for such purpose.

       

      (g)  At
        the
        reasonable request of any Investor, the Company shall furnish to such Investor,
        on the date of the effectiveness of the Registration Statement and thereafter
        from time to time on such dates as an Investor may reasonably request (i)
        a
        letter, dated such date, from the Company’s independent certified public
        accountants in form and substance as is customarily given by independent
        certified public accountants to underwriters in an underwritten public offering,
        and (ii) an opinion, dated as of such date, of counsel representing the Company
        for purposes of such Registration Statement, in form, scope and substance
        as is
        customarily given in an underwritten public offering, addressed to the
        Investor.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      (h)  The
        Company shall make available for inspection by (i) any Investor and
        (ii) one (1) firm of accountants or other agents retained by the Investor
        (collectively, the “Inspectors”)
        all
        pertinent financial and other records, and pertinent corporate documents
        and
        properties of the Company (collectively, the “Records”),
        as
        shall be reasonably deemed necessary by each Inspector, and cause the Company’s
        officers, directors and employees to supply all information which any Inspector
        may reasonably request; provided, however, that each Inspector shall agree,
        and
        each Investor hereby agrees, to hold in strict confidence and shall not make
        any
        disclosure (except to an Investor) or use any Record or other information
        which
        the Company determines in good faith to be confidential, and of which
        determination the Inspectors are so notified, unless (a) the disclosure of
        such
        Records is necessary to avoid or correct a misstatement or omission in any
        Registration Statement or is otherwise required under the Securities Act,
        (b)
        the release of such Records is ordered pursuant to a final, non-appealable
        subpoena or order from a court or government body of competent jurisdiction,
        or
        (c) the information in such Records has been made generally available to
        the
        public other than by disclosure in violation of this or any other agreement
        of
        which the Inspector and the Investor has knowledge. Each Investor agrees
        that it
        shall, upon learning that disclosure of such Records is sought in or by a
        court
        or governmental body of competent jurisdiction or through other means, give
        prompt notice to the Company and allow the Company, at its expense, to undertake
        appropriate action to prevent disclosure of, or to obtain a protective order
        for, the Records deemed confidential.

       

      (i)  The
        Company shall hold in confidence and not make any disclosure of information
        concerning an Investor provided to the Company unless (i) disclosure of such
        information is necessary to comply with federal or state securities laws,
        (ii)
        the disclosure of such information is necessary to avoid or correct a
        misstatement or omission in any Registration Statement, (iii) the release
        of
        such information is ordered pursuant to a subpoena or other final,
        non-appealable order from a court or governmental body of competent
        jurisdiction, or (iv) such information has been made generally available
        to the
        public other than by disclosure in violation of this Agreement or any other
        agreement. The Company agrees that it shall, upon learning that disclosure
        of
        such information concerning an Investor is sought in or by a court or
        governmental body of competent jurisdiction or through other means, give
        prompt
        written notice to such Investor and allow such Investor, at the Investor’s
        expense, to undertake appropriate action to prevent disclosure of, or to
        obtain
        a protective order for, such information.

       

      (j)  The
        Company shall use its best efforts either to cause all the Registrable
        Securities covered by a Registration Statement (i) to be listed on each
        securities exchange on which securities of the same class or series issued
        by
        the Company are then listed, if any, if the listing of such Registrable
        Securities is then permitted under the rules of such exchange or (ii) the
        inclusion for quotation on the National Association of Securities Dealers,
        Inc.
        OTC Bulletin Board for such Registrable Securities. The Company shall pay
        all
        fees and expenses in connection with satisfying its obligation under this
        Section 3(j).

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      (k)  The
        Company shall cooperate with the Investor who hold Registrable Securities
        being
        offered and, to the extent applicable, to facilitate the timely preparation
        and
        delivery of certificates (not bearing any restrictive legend) representing
        the
        Registrable Securities to be offered pursuant to a Registration Statement
        and
        enable such certificates to be in such denominations or amounts, as the case
        may
        be, as the Investor may reasonably request and registered in such names as
        the
        Investor may request.

       

      (l)  The
        Company shall use its best efforts to cause the Registrable Securities covered
        by the applicable Registration Statement to be registered with or approved
        by
        such other governmental agencies or authorities as may be necessary to
        consummate the disposition of such Registrable Securities.

       

      (m)  The
        Company shall make generally available to its security holders as soon as
        practical, but not later than ninety (90) days after the close of the period
        covered thereby, an earnings statement (in form complying with the provisions
        of
        Rule 158 under the Securities Act) covering a twelve (12) month period beginning
        not later than the first day of the Company’s fiscal quarter next following the
        effective date of the Registration Statement.

       

      (n)  The
        Company shall otherwise use its best efforts to comply with all applicable
        rules
        and regulations of the SEC in connection with any registration
        hereunder.

       

      (o)  Within
        two (2) business days after a Registration Statement which covers Registrable
        Securities is declared effective by the SEC, the Company shall deliver, and
        shall cause legal counsel for the Company to deliver, to the transfer agent
        for
        such Registrable Securities (with copies to the Investor whose Registrable
        Securities are included in such Registration Statement) confirmation that
        such
        Registration Statement has been declared effective by the SEC in the form
        attached hereto as Exhibit
        A.

       

      (p)  The
        Company shall take all other reasonable actions necessary to expedite and
        facilitate disposition by the Investor of Registrable Securities pursuant
        to a
        Registration Statement.

       

      4.  OBLIGATIONS
        OF THE INVESTOR.

       

      Each
        Investor agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind described in Section 3(f) or the first
        sentence of 3(e), such Investor will immediately discontinue disposition
        of
        Registrable Securities pursuant to any Registration Statement(s) covering
        such
        Registrable Securities until such Investor’s receipt of the copies of the
        supplemented or amended prospectus contemplated by Section 3(e) or receipt
        of
        notice that no supplement or amendment is required. Notwithstanding anything
        to
        the contrary, the Company shall cause its transfer agent to deliver unlegended
        certificates for shares of Common Stock to a transferee of an Investor in
        accordance with the terms of the Securities Purchase Agreement in connection
        with any sale of Registrable Securities with respect to which an Investor
        has
        entered into a contract for sale prior to the Investor’s receipt of a notice
        from the Company of the happening of any event of the kind described in Section
        3(f) or the first sentence of 3(e) and for which the Investor has not yet
        settled.

       

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      5.  EXPENSES
        OF REGISTRATION.

       

      All
        expenses incurred in connection with registrations, filings or qualifications
        pursuant to Sections 2 and 3, including, without limitation, all registration,
        listing and qualifications fees, printers, legal and accounting fees shall
        be
        paid by the Company. 

       

      6.  INDEMNIFICATION.

       

      With
        respect to Registrable Securities which are included in a Registration Statement
        under this Agreement:

       

      (a)  To
        the
        fullest extent permitted by law, the Company will, and hereby does, indemnify,
        hold harmless and defend each Investor, the directors, officers, partners,
        employees, agents, representatives of, and each Person, if any, who controls
        any
        Investor within the meaning of the Securities Act or the Exchange Act (each,
        an
“Indemnified
        Person”),
        against any losses, claims, damages, liabilities, judgments, fines, penalties,
        charges, costs, reasonable attorneys’ fees, amounts paid in settlement or
        expenses, joint or several (collectively, “Claims”)
        incurred in investigating, preparing or defending any action, claim, suit,
        inquiry, proceeding, investigation or appeal taken from the foregoing by
        or
        before any court or governmental, administrative or other regulatory agency,
        body or the SEC, whether pending or threatened, whether or not an indemnified
        party is or may be a party thereto (“Indemnified
        Damages”),
        to
        which any of them may become subject insofar as such Claims (or actions or
        proceedings, whether commenced or threatened, in respect thereof) arise out
        of
        or are based upon: (i) any untrue statement or alleged untrue statement of
        a
        material fact in a Registration Statement or any post-effective amendment
        thereto or in any filing made in connection with the qualification of the
        offering under the securities or other “blue sky” laws of any jurisdiction in
        which Registrable Securities are offered (“Blue
        Sky Filing”),
        or
        the omission or alleged omission to state a material fact required to be
        stated
        therein or necessary to make the statements therein not misleading; (ii)
        any
        untrue statement or alleged untrue statement of a material fact contained
        in any
        final prospectus (as amended or supplemented, if the Company files any amendment
        thereof or supplement thereto with the SEC) or the omission or alleged omission
        to state therein any material fact necessary to make the statements made
        therein, in light of the circumstances under which the statements therein
        were
        made, not misleading; or (iii) any violation or alleged violation by the
        Company
        of the Securities Act, the Exchange Act, any other law, including, without
        limitation, any state securities law, or any rule or regulation there under
        relating to the offer or sale of the Registrable Securities pursuant to a
        Registration Statement (the matters in the foregoing clauses (i) through
        (iii)
        being, collectively, “Violations”).
        The
        Company shall reimburse the Investor and each such controlling person promptly
        as such expenses are incurred and are due and payable, for any legal fees
        or
        disbursements or other reasonable expenses incurred by them in connection
        with
        investigating or defending any such Claim. Notwithstanding anything to the
        contrary contained herein, the indemnification agreement contained in this
        Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising
        out of or based upon a Violation which occurs in reliance upon and in conformity
        with information furnished in writing to the Company by such Indemnified
        Person
        expressly for use in connection with the preparation of the Registration
        Statement or any such amendment thereof or supplement thereto; (y) shall
        not be
        available to the extent such Claim is based on a failure of the Investor
        to
        deliver or to cause to be delivered the prospectus made available by the
        Company, if such prospectus was timely made available by the Company pursuant
        to
        Section 3(c); and (z) shall not apply to amounts paid in settlement
        of any
        Claim if such settlement is effected without the prior written consent of
        the
        Company, which consent shall not be unreasonably withheld. Such indemnity
        shall
        remain in full force and effect regardless of any investigation made by or
        on
        behalf of the Indemnified Person and shall survive the transfer of the
        Registrable Securities by the Investor pursuant to Section 9
        hereof.

       

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      (b)  In
        connection with a Registration Statement, each Investor agrees to severally
        and
        not jointly indemnify, hold harmless and defend, to the same extent and in
        the
        same manner as is set forth in Section 6(a), the Company, each of its directors,
        each of its officers, employees, representatives, or agents and each Person,
        if
        any, who controls the Company within the meaning of the Securities Act or
        the
        Exchange Act (each an “Indemnified
        Party”),
        against any Claim or Indemnified Damages to which any of them may become
        subject, under the Securities Act, the Exchange Act or otherwise, insofar
        as
        such Claim or Indemnified Damages arise out of or is based upon any Violation,
        in each case to the extent, and only to the extent, that such Violation occurs
        in reliance upon and in conformity with written information furnished to
        the
        Company by such Investor expressly for use in connection with such Registration
        Statement; and, subject to Section 6(d), such Investor will reimburse any
        legal
        or other expenses reasonably incurred by them in connection with investigating
        or defending any such Claim; provided, however, that the indemnity agreement
        contained in this Section 6(b) and the agreement with respect to contribution
        contained in Section 7 shall not apply to amounts paid in settlement of any
        Claim if such settlement is effected without the prior written consent of
        such
        Investor, which consent shall not be unreasonably withheld; provided, further,
        however, that the Investor shall be liable under this Section 6(b) for only
        that
        amount of a Claim or Indemnified Damages as does not exceed the net proceeds
        to
        such Investor as a result of the sale of Registrable Securities pursuant
        to such
        Registration Statement. Such indemnity shall remain in full force and effect
        regardless of any investigation made by or on behalf of such Indemnified
        Party
        and shall survive the transfer of the Registrable Securities by the Investor
        pursuant to Section 9. Notwithstanding anything to the contrary contained
        herein, the indemnification agreement contained in this Section 6(b) with
        respect to any prospectus shall not inure to the benefit of any Indemnified
        Party if the untrue statement or omission of material fact contained in the
        prospectus was corrected and such new prospectus was delivered to each Investor
        prior to such Investor’s use of the prospectus to which the Claim
        relates.

       

      (c)  Promptly
        after receipt by an Indemnified Person or Indemnified Party under this Section
        6
        of notice of the commencement of any action or proceeding (including any
        governmental action or proceeding) involving a Claim, such Indemnified Person
        or
        Indemnified Party shall, if a Claim in respect thereof is to be made against
        any
        indemnifying party under this Section 6, deliver to the indemnifying party
        a
        written notice of the commencement thereof, and the indemnifying party shall
        have the right to participate in, and, to the extent the indemnifying party
        so
        desires, jointly with any other indemnifying party similarly noticed, to
        assume
        control of the defense thereof with counsel mutually satisfactory to the
        indemnifying party and the Indemnified Person or the Indemnified Party, as
        the
        case may be; provided, however, that an Indemnified Person or Indemnified
        Party
        shall have the right to retain its own counsel with the fees and expenses
        of not
        more than one (1) counsel for such Indemnified Person or Indemnified Party
        to be
        paid by the indemnifying party, if, in the reasonable opinion of counsel
        retained by the indemnifying party, the representation by such counsel of
        the
        Indemnified Person or Indemnified Party and the indemnifying party would
        be
        inappropriate due to actual or potential differing interests between such
        Indemnified Person or Indemnified Party and any other party represented by
        such
        counsel in such proceeding. The Indemnified Party or Indemnified Person shall
        cooperate fully with the indemnifying party in connection with any negotiation
        or defense of any such action or claim by the indemnifying party and shall
        furnish to the indemnifying party all information reasonably available to
        the
        Indemnified Party or Indemnified Person which relates to such action or claim.
        The indemnifying party shall keep the Indemnified Party or Indemnified Person
        fully apprised at all times as to the status of the defense or any settlement
        negotiations with respect thereto. No indemnifying party shall be liable
        for any
        settlement of any action, claim or proceeding effected without its prior
        written
        consent; provided, however, that the indemnifying party shall not unreasonably
        withhold, delay or condition its consent. No indemnifying party shall, without
        the prior written consent of the Indemnified Party or Indemnified Person,
        consent to entry of any judgment or enter into any settlement or other
        compromise which does not include as an unconditional term thereof the giving
        by
        the claimant or plaintiff to such Indemnified Party or Indemnified Person
        of a
        release from all liability in respect to such claim or litigation. Following
        indemnification as provided for hereunder, the indemnifying party shall be
        subrogated to all rights of the Indemnified Party or Indemnified Person with
        respect to all third parties, firms or corporations relating to the matter
        for
        which indemnification has been made. The failure to deliver written notice
        to
        the indemnifying party within a reasonable time of the commencement of any
        such
        action shall not relieve such indemnifying party of any liability to the
        Indemnified Person or Indemnified Party under this Section 6, except to the
        extent that the indemnifying party is prejudiced in its ability to defend
        such
        action.

       

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      (d)  The
        indemnification required by this Section 6 shall be made by periodic payments
        of
        the amount thereof during the course of the investigation or defense, as
        and
        when bills are received or Indemnified Damages are incurred.

       

      (e)  The
        indemnity agreements contained herein shall be in addition to (i) any
        cause
        of action or similar right of the Indemnified Party or Indemnified Person
        against the indemnifying party or others, and (ii) any liabilities the
        indemnifying party may be subject to pursuant to the law.

       

      7.  CONTRIBUTION.

       

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
        law, the indemnifying party agrees to make the maximum contribution with
        respect
        to any amounts for which it would otherwise be liable under Section 6 to
        the
        fullest extent permitted by law; provided, however, that: (i) no seller of
        Registrable Securities guilty of fraudulent misrepresentation (within the
        meaning of Section 11(f) of the Securities Act) shall be entitled to
        contribution from any seller of Registrable Securities who was not guilty
        of
        fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
        Securities shall be limited in amount to the net amount of proceeds received
        by
        such seller from the sale of such Registrable Securities.

       

      8.  REPORTS
        UNDER THE EXHANGE ACT.

       

      With
        a
        view to making available to the Investor the benefits of Rule 144 promulgated
        under the Securities Act or any similar rule or regulation of the SEC that
        may
        at any time permit the Investor to sell securities of the Company to the
        public
        without registration (“Rule
        144”)
        the
        Company agrees to:

       

      (a)  make
        and
        keep public information available, as those terms are understood and defined
        in
        Rule 144;

       

      (b)  file
        with
        the SEC in a timely manner all reports and other documents required of the
        Company under the Securities Act and the Exchange Act so long as the Company
        remains subject to such requirements (it being understood that nothing herein
        shall limit the Company’s obligations under Section 4(c) of the Securities
        Purchase Agreement) and the filing of such reports and other documents as
        are
        required by the applicable provisions of Rule 144; and

       

      (c)  furnish
        to each Investor so long as such Investor owns Registrable Securities, promptly
        upon request, (i) a written statement by the Company that it has complied
        with
        the reporting requirements of Rule 144, the Securities Act and the Exchange
        Act,
        (ii) a copy of the most recent annual or quarterly report of the Company
        and
        such other reports and documents so filed by the Company, and (iii) such
        other
        information as may be reasonably requested to permit the Investor to sell
        such
        securities pursuant to Rule 144 without registration.

       

      9.  AMENDMENT
        OF REGISTRATION RIGHTS.

       

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with the written consent of the Company and Investor
        who
        then hold at least two-thirds (2/3) of the Registrable Securities. Any amendment
        or waiver effected in accordance with this Section 9 shall be binding
        upon
        each Investor and the Company. No such amendment shall be effective to the
        extent that it applies to fewer than all of the holders of the Registrable
        Securities. No consideration shall be offered or paid to any Person to amend
        or
        consent to a waiver or modification of any provision of any of this Agreement
        unless the same consideration also is offered to all of the parties to this
        Agreement.

       

      10.  MISCELLANEOUS.

       

      (a)  A
        Person
        is deemed to be a holder of Registrable Securities whenever such Person owns
        or
        is deemed to own of record such Registrable Securities. If the Company receives
        conflicting instructions, notices or elections from two (2) or more Persons
        with
        respect to the same Registrable Securities, the Company shall act upon the
        basis
        of instructions, notice or election received from the registered owner of
        such
        Registrable Securities.

       

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      (b)  Any
        notices, consents, waivers, or other communications required or permitted
        to be
        given under the terms of this Agreement must be in writing and will be deemed
        to
        have been delivered (i) upon receipt, when delivered personally; (ii) upon
        confirmation of receipt, when sent by facsimile; (iii) three (3) days after
        being sent by U.S. certified mail, return receipt requested, or (iv) one
        (1) day
        after deposit with a nationally recognized overnight delivery service, in
        each
        case properly addressed to the party to receive the same. The addresses and
        facsimile numbers for such communications shall be:

       

      
        	
                If
                  to the Company, to:

              	
                Mobilepro
                  Corp.

              
	 	
                6701
                  Democracy Blvd., Suite 300

              
	 	
                Bethesda,
                  MD 20817

              
	 	
                Attention:
                  Jay Wright, President

              
	 	
                Telephone:
                  (301) 315-9040

              
	 	
                Facsimile:
                  (301) 315-9027

              
	 	 
	
                With
                  a copy to:

              	
                Schiff
                  Hardin LLP

              
	 	
                1101
                  Connecticut Avenue, NW

              
	 	
                Suite
                  600

              
	 	
                Washington,
                  DC 20036-4390

              
	 	
                Attention:
                  Ernest M. Stern, Esq.

              
	 	
                Telephone:
                  (202) 778-6461

              
	 	
                Facsimile:
                  (202) 778-6460

              
	 	 
	 	 
	
                If
                  to the Holder:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street, Suite 3700

              
	 	
                Jersey
                  City, NJ 07303

              
	 	
                Attention: Mark
                  Angelo, President

              
	 	
                Telephone: (201)
                  985-8300

              
	 	
                Facsimile: (201)
                  985-8266

              
	 	 
	
                With
                  a copy to:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street - Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Attention: Troy
                  J. Rillo, Esq.

              
	 	
                Telephone: (201)
                  985-8300

              
	 	
                Facsimile: (201)
                  985-8266

              
	 	 

      

      Each
        party shall provide five (5) days’ prior written notice to the other party of
        any change in address or facsimile number.

       

      (c)  Failure
        of any party to exercise any right or remedy under this Agreement or otherwise,
        or delay by a party in exercising such right or remedy, shall not operate
        as a
        waiver thereof.

       

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      (d)  The
        laws
        of the State of New Jersey shall govern all issues concerning the relative
        rights of the Company and the Investor as its stockholders. All other questions
        concerning the construction, validity, enforcement and interpretation of
        this
        Agreement shall be governed by the internal laws of the State of New Jersey,
        without giving effect to any choice of law or conflict of law provision or
        rule
        (whether of the State of New Jersey or any other jurisdiction) that would
        cause
        the application of the laws of any jurisdiction other than the State of New
        Jersey. Each party hereby irrevocably submits to the non-exclusive jurisdiction
        of the Superior Courts of the State of New Jersey, sitting in Hudson County,
        New
        Jersey and federal courts for the District of New Jersey sitting Newark,
        New
        Jersey, for the adjudication of any dispute hereunder or in connection herewith
        or with any transaction contemplated hereby or discussed herein, and hereby
        irrevocably waives, and agrees not to assert in any suit, action or proceeding,
        any claim that it is not personally subject to the jurisdiction of any such
        court, that such suit, action or proceeding is brought in an inconvenient
        forum
        or that the venue of such suit, action or proceeding is improper. Each party
        hereby irrevocably waives personal service of process and consents to process
        being served in any such suit, action or proceeding by mailing a copy thereof
        to
        such party at the address for such notices to it under this Agreement and
        agrees
        that such service shall constitute good and sufficient service of process
        and
        notice thereof. Nothing contained herein shall be deemed to limit in any
        way any
        right to serve process in any manner permitted by law. If any provision of
        this
        Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
        or unenforceability shall not affect the validity or enforceability of the
        remainder of this Agreement in that jurisdiction or the validity or
        enforceability of any provision of this Agreement in any other jurisdiction.
        EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
        TO
        REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
        CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
        CONTEMPLATED HEREBY.

       

      (e)  This
        Agreement, the Irrevocable Transfer Agent Instructions, the Securities Purchase
        Agreement and related documents including the Convertible Debenture and the
        Escrow Agreement dated the date hereof by and among the Company, the Investor
        set forth on the Schedule of Investor attached hereto, and David Gonzalez,
        Esq.
        (the “Escrow
        Agreement”)
        and
        the Security Agreement dated the date hereof (the “Security
        Agreement”)
        constitute the entire agreement among the parties hereto with respect to
        the
        subject matter hereof and thereof. There are no restrictions, promises,
        warranties or undertakings, other than those set forth or referred to herein
        and
        therein. This Agreement, the Irrevocable Transfer Agent Instructions, the
        Securities Purchase Agreement and related documents including the Convertible
        Debenture, the Escrow Agreement and the Security Agreement supersede all
        prior
        agreements and understandings among the parties hereto with respect to the
        subject matter hereof and thereof.

       

      (f)  This
        Agreement shall inure to the benefit of and be binding upon the permitted
        successors and assigns of each of the parties hereto.

       

      (g)  The
        headings in this Agreement are for convenience of reference only and shall
        not
        limit or otherwise affect the meaning hereof.

       

      (h)  This
        Agreement may be executed in identical counterparts, each of which shall
        be
        deemed an original but all of which shall constitute one and the same agreement.
        This Agreement, once executed by a party, may be delivered to the other party
        hereto by facsimile transmission of a copy of this Agreement bearing the
        signature of the party so delivering this Agreement.

       

      (i)  Each
        party shall do and perform, or cause to be done and performed, all such further
        acts and things, and shall execute and deliver all such other agreements,
        certificates, instruments and documents, as the other party may reasonably
        request in order to carry out the intent and accomplish the purposes of this
        Agreement and the consummation of the transactions contemplated
        hereby.

       

      The
        language used in this Agreement will be deemed to be the language chosen
        by the
        parties to express their mutual intent and no rules of strict construction
        will
        be applied against any party.

       

      (j)  This
        Agreement is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns, and is not for the benefit of, nor may
        any
        provision hereof be enforced by, any other Person.

       

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      

       

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have caused this Investor Registration Rights Agreement to be duly
        executed as of day and year first above written.

       

      
        	 	 
	 	
                MOBILEPRO
                  CORP. 

              
	 	 
	 	
                By:_________________________________

              
	 	
                Name: Jay
                  Wright

              
	 	
                Title: President

              
	 	 
	 	 
	 	
                CORNELL
                  CAPITAL PARTNERS, LP

              
	 	
                By:
                   Yorkville
                  Advisors, LLC

              
	 	
                Its:
                   General
                  Partner

              
	 	 
	 	 
	 	
                By:_________________________________

              
	 	
                Name: Mark
                  Angelo

              
	 	
                Its:
                   President

              
	 	 

      

      

      

      

      

      
        
           

        

        
          -12-

          
            

          

        

        
           

          
          

        

      

      EXHIBIT
        A

       

      FORM
        OF NOTICE OF EFFECTIVENESS

      OF
        REGISTRATION STATEMENT

       

      

      Attention: 

      

      
        	 	
                Re:

              	
                MOBILEPRO
                  CORP.

              

      

      

      Ladies
        and Gentlemen:

      

      We
        are
        counsel to Mobilero Corp., a Delaware corporation (the “Company”),
        and
        have represented the Company in connection with that certain Securities Purchase
        Agreement (the “Securities
        Purchase Agreement”)
        entered into by and among the Company and the Investor named therein
        (collectively, the “Investor”)
        pursuant to which the Company issued to the Investor shares of its Common
        Stock,
        par value $0.001 per share (the “Common
        Stock”).
        Pursuant to the Purchase Agreement, the Company also has entered into a
        Registration Rights Agreement with the Investor (the “Investor
        Registration Rights Agreement”)
        pursuant to which the Company agreed, among other things, to register the
        Registrable Securities (as defined in the Registration Rights Agreement)
        under
        the Securities Act of 1933, as amended (the “Securities
        Act”).
        In
        connection with the Company’s obligations under the Registration Rights
        Agreement, on ____________ ____, the Company filed a Registration Statement
        on
        Form ________ (File No. 333-_____________) (the “Registration
        Statement”)
        with
        the Securities and Exchange SEC (the “SEC”)
        relating to the Registrable Securities which names each of the Investor as
        a
        selling stockholder there under.

       

      In
        connection with the foregoing, we advise you that a member of the SEC’s staff
        has advised us by telephone that the SEC has entered an order declaring the
        Registration Statement effective under the Securities Act at [ENTER
        TIME OF EFFECTIVENESS]
        on
[ENTER
        DATE OF EFFECTIVENESS]
        and we
        have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that
        any stop order suspending its effectiveness has been issued or that any
        proceedings for that purpose are pending before, or threatened by, the SEC
        and
        the Registrable Securities are available for resale under the Securities
        Act
        pursuant to the Registration Statement.

       

      Very
        truly yours,

       

       

      SCHIFF
        HARDIN LLP

       

      By:___________________________

         

      

      cc: [LIST
        NAMES OF INVESTOR]

       

       

      
        
           

        

          A-1

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