Summary of MOBILEPRO CORP - Yahoo! Finance

Entry into a Material Definitive Agreement, Financial Statements and Exhibits

Item 1.01 Entry into a Material Definitive Agreement.

On May 5, 2009, the Registrant ("Mobilepro") executed a Forbearance Agreement with YA Global Investments, L.P. f/k/a Cornell Capital Partners, L.P. ("YA Global") pursuant to which YA Global has agreed to forbear for a period ending June 1, 2009 (the "Forbearance Period") from enforcing its rights and remedies against the Registrant and its subsidiaries under the Secured Convertible Debenture and related agreements dated June 30, 2008 in the original principal amount of $13,391,175 (the "Debenture"). The maturity date of the Debenture was May 1, 2009 at which time the amount outstanding was approximately $13.15 million.

During the Forbearance Period, YA Global and the Registrant have agreed to discuss and consider a plan to repay or restructure the Debenture. The Debenture continues to carry an interest rate of twelve percent (12%) during the Forbearance Period. Although the Registrant intends to work diligently with YA Global during the Forbearance Period, there is no guarantee that the parties will reach a mutually agreeable repayment or restructuring plan. In the event the parties are unable to reach a mutually agreeable repayment or restructuring plan, YA Global could potentially exercise its rights as the company's senior secured creditor which include, but are not limited to, foreclosing on the assets of the Company. In such event the Registrant may not have the ability to continue as a going concern. See "Risk Factors" in Mobilepro's most recent quarterly report on Form 10-Q for more detail on such risks.

The foregoing is intended to be a summary only of the Forbearance Agreement and is modified in its entirety by the terms of the Forbearance Agreement, a copy of which is attached hereto and incorporated herein as an exhibit to this Current Report on Form 8-K.