Exhibit 10.79

 

SECURITIES REPURCHASE AGREEMENT

 

This Agreement is dated July 31, 2003 among Path 1 Network Technologies Inc.
(the “Company”) and Palisades Master Fund L.P., Crescent International Ltd. and
HPC Capital Management (collectively, the “Holders”).

 

The Company agrees to purchase from the Holders for $1,382,426.73 cash
($667,406.18 to Palisades, $703,520.55 to Crescent and $11,500 to HPC), and the
Holders agree to sell to the Company for such $1,382,426.73 cash:

 

    1. The 7% convertible debenture due March 27, 2005, issued by the Company on
March 28, 2003 and on May 12, 2003 in favor of Palisades in the original
principal amount of $700,000, including all interest accrued thereon and all
rights of such Holder under such debenture.

 

    2. The 7% convertible debenture due March 27, 2005, issued by the Company on
March 28, 2003 and May 12, 2003 in favor of Crescent in the original principal
amount of $600,000, including all interest accrued thereon and all rights of
such Holder under such debenture.

 

    3. The 7% convertible debenture due March 27, 2005, issued by the Company on
March 28, 2003 in favor of HPC in the original principal amount of $10,000, with
all interest accrued thereon and all rights of such Holder under such debenture.

 

    4. All rights of the Holders under the Securities Purchase Agreement dated
March 28, 2003 among the Company and the Holders.

 

At the closing of this Agreement (to be held on August 6, 2003), the Holders
shall deliver the original debentures, which must be (and the Holders represent,
warrant, covenant and agree that they shall be) delivered free and clear of all
security interests, liens, adverse claims and previous conversions of principal.

 

It is agreed that the Holders shall retain their rights under the Registration
Rights Agreement dated March 28, 2003 among the Company and the Holders;
provided, it is agreed that the Company shall endeavor to promptly replace the
Form SB-2 resale registration statement with a Form S-3 resale registration
statement.

 

It is agreed that the Holders shall retain their rights under the respective
Stock Purchase Warrants dated March 28, 2003 for 265,231 (Palisades), 230,770
(Crescent) and 20,000 (HPC) pre-reverse-split shares of Company Common Stock;
provided, that it is agreed that the exercise price of such Stock Purchase
Warrants shall be repriced to $0.90 pre-reverse-split ($5.40 post-reverse-split)
and that thereafter Section 11(b) of each Stock Purchase Warrant (relating to
price-based anti-dilution) shall be deleted from the Stock Purchase Warrants.

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The Holders acknowledge and agree that they have read the Company’s SEC
registration statement and related fillings related to the Company’s Public
Offering in contemplation of this Agreement.

 

 

PATH 1 NETWORK TECHNOLOGIES INC.

By:

 

/s/    JOHN R. ZAVOLI, CFO        

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PALISADES MASTER FUND L.P.

By:

 

/s/    ANDY RECKLESS        

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CRESCENT INTERNATIONAL LTD.

By:

 

/s/    MAXI BREZZI        

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HPC CAPITAL MANAGEMENT

By:

 

/s/    PAUL T. MANNION, JR.        

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