THIRD AMENDMENT TO PURCHASE AGREEMENT
Exhibit
10.4
THIRD
AMENDMENT TO PURCHASE AGREEMENT
THIRD
AMENDMENT TO PURCHASE AGREEMENT dated as of the 13th day of July, 2007 (the
“Amendment”), by and between MOBILEPRO
CORP.,
a
Delaware corporation having a place of business and mailing address of 0000
Xxxxxxxxx Xxxxxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxx 00000 (the “Seller”) and
UNITED
SYSTEMS ACCESS, INC.,
a
Delaware corporation d/b/a U.S.A. Telephone having a place of business and
mailing address of 0 Xxxxxxx Xxxx, Xxxxxxxxx, Xxxxx 00000 (the
“Buyer”).
1. |
Reference
to Purchase Agreement; Background.
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Reference
is made to the Purchase Agreement dated as of June 29, 2007, by and between
Seller and Buyer, as amended to date (as so amended, the “Purchase Agreement”).
Capitalized terms used herein without definitions shall have the meanings
assigned to them in the Purchase Agreement, as those meanings may be amended
hereby.
Seller
and Buyer desire to amend the Purchase Agreement to, among other matters, (i)
amend the indemnification obligations of Seller to specifically include certain
claims as indemnifiable claims and (ii) provide that all Adverse Consequences
sustained or incurred by Buyer arising from certain liens and claims shall
be
indemnifiable by Seller from dollar one with no time limit
whatsoever.
2. |
Amendments
to Purchase Agreement.
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(a) Section
10.1(a) of the Purchase Agreement is hereby amended by adding the following
as
subsection (vii) thereto:
“(vii)
Any and all claims, actions, suits, proceedings, and demands brought against
Buyer and/or the Target Corporations by Xxxxxx X. Xxxxxxxx and Xxxxxxx Xxxxxxxx
(collectively, the “Mazerski Claims”).”
(b) Section
10.3 of the Purchase Agreement is hereby amended by adding the following as
subsection (d) thereto:
“(d)
Notwithstanding Section 10.3(a) to the contrary, the Seller shall assume the
defense of all Mazerski Claims and shall bear and be solely responsible for
all
costs and expenses in connection therewith, and
shall
have the right to assert any claims, including counterclaims, against Xxxxxx
X.
Xxxxxxxx and/or Xxxxxxx Xxxxxxxx in connection with the employment of Xxxxxx
X.
Xxxxxxxx and/or Xxxxxxx Xxxxxxxx at CloseCall during the period of time that
CloseCall was a subsidiary of the Seller, and shall bear and be solely
responsible for all costs and expenses in connection therewith. In the event
that the Seller recovers for itself, the
Buyer
or any applicable Target Corporation
on
any
claims or counterclaims
against Xxxxxx X. Xxxxxxxx and/or Xxxxxxx Xxxxxxxx, the
Seller
shall keep the proceeds of such recovery and from such amounts shall
reimburse the Buyer
out of
the proceeds of such recovery, from dollar one, for Buyer’s
reasonable
legal and
other
expenses
and court costs
associated with participating
in the litigation of
the
Mazerski Claims or claims brought by the Seller against Xxxxxx X. Xxxxxxxx
and/or Xxxxxxx Xxxxxxxx.
(c) Section
10.6 of the Purchase Agreement is hereby amended by deleting the same in its
entirety and substituting therefore the following:
“10.6.Limits
On Indemnification.
(a) Subject
to Section 10.6(b) hereof, no amount shall be payable by any Indemnifying Party
pursuant to this Agreement, unless the aggregate amount of Adverse Consequences
subject to indemnification under Section 10.1 or 10.2 above, as the case may
be,
exceeds One Hundred Thousand and 00/100 Dollars ($100,000), at which point
the
Indemnified Party shall be entitled to all indemnification amounts accrued
up to
such threshold. Notwithstanding anything to the contrary in this Agreement,
the
maximum amount of indemnifiable Adverse Consequences which may be recovered
by
Buyer from Seller under this Article 10 shall be an amount equal to Eight
Million One Hundred Thousand and 00/100 Dollars ($8,100,000).
(b) Notwithstanding
the first part of this Section 10.6 above or any other provision of this
Agreement to the contrary, the Seller shall indemnify and hold the Buyer and
each of the Target Corporations, their officers, directors, employees, agents,
affiliates, successors and assigns harmless from and with respect to any and
all
Adverse Consequences any Target Corporation or Buyer, or their respective
successors and assigns, may sustain or incur, from
dollar one,
without
any time limit whatsoever, related to or arising directly or indirectly out
of
(i) two Federal tax liens filed with the State of Texas Secretary of State
against Inter Net Express Inc. on June 26, 1995 and September 8, 1995 as
Instrument Nos. 9500126607 and 9500176387, respectively; and (ii) the Mazerski
Claims.
3. |
Miscellaneous.
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(a) This
Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be an original, but all counterparts shall
together constitute one instrument. The terms and provisions of the Purchase
Agreement and all other documents arising therefrom, related thereto, and
executed in connection therewith, including, without limitation, the Related
Agreements, as modified hereby, are hereby ratified and affirmed in all
respects, continue in full force and effect and are made applicable to this
Amendment. The Purchase Agreement and this Amendment shall be read and construed
as a single agreement. All references to the Purchase Agreement in any documents
arising therefrom, related thereto, and executed in connection therewith,
including, without limitation, the Related Agreements, shall hereafter mean
and
refer to the Purchase Agreement, as amended hereby.
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(c) This
Amendment shall be governed by and construed in accordance with the laws of
the
State of Maine and shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.
(d) Each
party hereto hereby represents and warrants that this Amendment has been
executed and delivered by duly authorized officers of each party and
acknowledges and agrees that it will execute and deliver such additional
amendments, agreements and documents as the other party may reasonably require
to confirm the foregoing.
[The
balance of this page is intentionally left blank. The signature page
follows.]
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IN
WITNESS WHEREOF, the parties hereto have duly caused this Amendment to be
executed as of the day and year first above written.
WITNESS: | BUYER | |
UNITED SYSTEMS ACCESS, INC. | ||
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By: | /s/ L. Xxxxxxx Xxxx | |
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L. Xxxxxxx Xxxx, Chief Executive Officer |
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SELLER | ||
MOBILEPRO CORP. | ||
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By: | /s/ Xxx X. Xxxxxx | |
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Xxx X. Xxxxxx, Chairman and CEO |
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