Document:

Unassociated Document

    Exhibit
      10.4

    SUBORDINATION
      AND INTER-CREDITOR AGREEMENT

     

    This
      Subordination and Inter-Creditor Agreement ("Agreement") is entered into as
      of
      the 17th
      day of
      April, 2008, between PNC BANK, NATIONAL ASSOCIATION, as Agent for Lenders
      ("PNC"), 70 East 55th
      Street,
      New York, NY 10022, and SIGMA OPPORTUNITY FUND, LLC ("Sigma"), maintaining
      an
      address at 800 Third Avenue, NY, NY 10022 and SIGMA BERLINER, LLC, maintaining
      an address at 800 Third Avenue, NY, NY 10022 ("Sigma LLC"), and OPERIS PARTNERS
      I LLC,
      maintaining an address at 3511 Silverside Road, Suite 105, Wilmington, Delaware
      19810 ("Operis"), and, PACIFIC ASSET PARTNERS, maintaining an address at 222
      Kearney Street, Suite 410, San Francisco,
      California 94108 ("Pacific," and together with Sigma, Sigma LLC and Operis,
      the
      "Subordinate Investors"). 

     

    WHEREAS,
      the Subordinate Investors maintain a security interest in certain assets (the
      "Sigma Collateral") of Berliner Communications, Inc., f/k/a Novo Networks,
      Inc.
      and BCI Communications, Inc. (collectively, the "Obligor"), as security for
      those obligations and indebtedness of Obligor to the Subordinate Investors
      (the
      "Sigma Financing"), under and pursuant to certain convertible promissory notes
      and warrants, and other documents and agreements between Obligor and the
      Subordinate Investors (the "Sigma Documents"). A listing of such documents
      and
      agreements, and amendments thereto, are set forth on Schedule A attached hereto,
      copies of which have been previously delivered to PNC. 

     

    WHEREAS,
      the Subordinate Investors have filed UCC-l financing statements (the "Sigma
      Financing Statements"), in order to perfect their security interests in the
      Sigma Collateral; 

     

    WHEREAS,
      PNC, as Agent for certain other Lenders, is creating a credit facility (the
      "PNC
      Financing") to BCI Communication, Inc. (“Borrower”), and guaranteed by Berliner
      Communications, Inc. (“Guarantor”), evidenced by a promissory note, guaranty and
      other documents between Obligor, PNC and the other Lenders, as the same may
      hereafter be amended and modified (collectively, the ''PNC Documents"), and
      secured by a security interest from Obligor to PNC in substantially all of
      Obligor's assets, including, but not limited to, Obligor's present and future
      accounts receivable, contract rights, inventory, machinery, equipment, general
      intangibles and all forms of proceeds, products and replacements thereof
      (collectively, the "PNC Collateral"); 

     

    WHEREAS,
      the PNC Financing shall include all amounts due to PNC by Obligor under the
      PNC
      Documents, together with any additional financing PNC, as Agent for the Lenders,
      may provide to Obligor, up to the sum of $15,000,000.00 in the aggregate, or
      such higher
      amount as the parties may subsequently agree to in writing signed by PNC and
      Obligor, subject to prior written consent of the Subordinate Investors;

     

    WHEREAS,
      PNC has filed, and may in the future file, UCC-l and other financing statements
      (the "PNC Financing Statements"), in order to perfect its security interests
      in
      the PNC Collateral; and 

     

    WHEREAS,
      the Subordinate Investors have agreed to subordinate their security interests
      in
      the Sigma Collateral, and to subordinate the Sigma Financing Statements and
      to
      subordinate the Sigma Financing (inclusive of all additional financing from
      the
      Subordinate Investors) up to $15,000,000 in the aggregate, to the security
      interests of PNC in the PNC Collateral and to the PNC Financing Statements
      and
      to the PNC Financing, in accordance with the terms herein. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE, the undersigned parties, intending to be legally and mutually bound
      by the terms hereof, agree as follows: 

     

    1. The
      foregoing recital paragraphs are incorporated herein by reference and agreed
      to
      by the PNC and the Subordinate Investors herein as if fully set forth.

     

    2. The
      Subordinate Investors agree that until such time as all amounts owing to PNC
      on
      the PNC Financing are paid in full in accordance with the PNC Documents, and
      PNC
      terminates the PNC Financing Statements (which PNC agrees to do promptly after
      payment in full of the PNC Financing), the security interests maintained by
      the
      Subordinate Investors in the Sigma Collateral and the Sigma Financing Statements
      and the Sigma Financing, shall at all times be subordinate and junior in
      interest, priority, and in every other respect to the security interests
      maintained by PNC in the PNC Collateral and to the PNC Financing Statements
      and
      to the PNC Financing. 

     

    3. The
      Subordinate Investors further agree that, subject to the exceptions set forth
      in
      the next sentence and in Section 5, at any time when the PNC Financing is
      outstanding, the Subordinate Investors shall not be entitled to receive any
      proceeds from, or on account of the PNC Collateral or the Sigma Collateral
      or
      any other payments of any nature from Obligor except for director fees or other
      administrative fees or expenses expressly permitted by the Sigma Financing
      documents, including any sums due and payable by virtue of a bankruptcy,
      receivership, insolvency or similar proceeding(s) of Obligor. Notwithstanding
      the foregoing, the Subordinate Investors shall be entitled to receive,
provided
      that
      Obligor is not then in default on the PNC Financing, (a) regular quarterly
      payments from Obligor (including a payment of principal upon maturity so long
      as
      (i) the aggregate amount of such principal payment upon maturity does not exceed
      $6,000,000, and (ii) at the time of such repayment the Borrower has a minimum
      Undrawn Availability of at least $2,000,000 for the period commencing seven
      (7)
      days prior to making such repayment through and including the date of such
      repayment after giving effect to such repayment), as and when due by Obligor
      to
      the Subordinate Investors under the Sigma Financing and Sigma Documents, and
      (b)
      liquidated damages payments upon the occurrence of a Registration Event (as
      defined in the Sigma Documents) so long as the total amount of any such
      liquidated damages payment does not exceed $120,000 during any calendar month
      and the total amount of all such liquidated damages payments does not exceed
      $720,000 at any time. Subject to the foregoing exceptions, and in all events
      when Obligor is in default of the PNC Financing, in the event the Subordinate
      Investors should receive any type of payment from the Obligor or proceeds from
      the PNC Collateral
      or Sigma Collateral from any source on account of the Sigma Financing, at any
      time when the PNC Financing is outstanding, the Subordinate Investors agree
      to
      turn over all such payments and proceeds to PNC within two (2) business days
      of
      the receipt thereof by the Subordinate Investors. Proceeds as used herein shall
      mean all proceeds of the PNC Collateral and Sigma Collateral, including
      payments, collections, sale proceeds and other proceeds however generated or
      realized from the PNC Collateral and Sigma Collateral. Except as specifically
      set forth in this paragraph, all proceeds of the PNC Collateral and Sigma
      Collateral received by the Subordinate Investors, at any time when the PNC
      Financing is outstanding, shall be segregated by the Subordinate Investors,
      who
      shall hold same in trust for PNC pending turnover of such proceeds to PNC.
      Notwithstanding anything in this Agreement to the contrary, nothing herein
      shall
      preclude the Subordinate Investors from converting amounts owing to them
      pursuant to the Sigma Financing into equity of Obligor. 

     

    4. PNC
      and
      the Subordinate Investors agree to provide each other with written notice of
      default by Obligor on the PNC Financing and/or Sigma Financing (each a “Notice
      of Default”). Any notices required or which may be given under this Agreement
      shall be in writing and deemed received one day after mailing by overnight
      mail
      to the intended recipient at the address for such recipient first set forth
      above, and if to Sigma, to the attention of Thom Waye, and if to Sigma LLC
      to
      the attention of Thom Waye, and if to Operis, to the attention of Lior Averni,
      and if to Pacific, to the attention of Robert M. Safford and if to PNC, to
      the
      attention of John Trott.

     

    5. The
      Subordinate Investors agree that until such time as the PNC Financing is fully
      paid in accordance with the PNC Documents, and PNC terminates the PNC Financing
      Statements (which PNC agrees to do promptly after the PNC Financing is fully
      repaid), the Subordinate Investors will not take any action, whether by legal
      process or otherwise, with respect to the PNC Collateral or Sigma Collateral
      at
      any time unless (a) a Notice of Default has been delivered by the Subordinate
      Investors to PNC, and (b) it is beyond one hundred eighty (180) days from the
      delivery of the Notice of Default.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6. The
      Subordinate Investors agree that their subordination and other agreements herein
      shall be effective upon their execution hereof, without PNC being required
      to
      advance any sums to Obligor on the PNC Financing or take any other actions,
      and
      irrespective of whether or not PNC has perfected its security interests in
      the
      PNC Collateral. 

     

    7. In
      the
      event the security interests of the Subordinate Investors in the Sigma
      Collateral are deemed prior to the liens, claims or interests of any other
      creditor or claimant of Obligor, such priority shall not in any manner modify
      the subordination and agreements of the Subordinate Investors herein, or elevate
      their position as to PNC, including, but not limited to, the agreed lien and
      other subordinations of the Subordinate Investors herein to the liens and
      interests of PNC as set forth herein. 

     

    8. In
      the
      event of a bankruptcy proceeding, receivership or any similar or other
      proceeding of or against Obligor, or in the event of any proceeding which seeks
      to challenge in any manner the PNC Financing, or the security interests of
      PNC
      in the PNC Collateral, or the PNC Collateral, or the PNC Financing Statements,
      or other proceedings which might in any manner jeopardize or adversely affect
      PNC's rights and interests as to the Obligor and/or in the PNC Collateral and/or
      Financing, this Agreement shall remain in full force and effect and shall be
      automatically re-instated, in full force and effect, in the event anyone or
      any
      entity should seek to recover from PNC or challenge, or otherwise assert
      interests adverse to PNC, in or with respect to any of the PNC Collateral or
      as
      to the PNC Financing or as to the PNC Financing Statements, including, but
      not
      limited to, proceedings seeking to recover any of the proceeds of the PNC
      Collateral or payments made or recovered by PNC on the PNC Financing and/or
      PNC
      Collateral, and otherwise, all irrespective of whether the PNC Financing has
      been previously satisfied and/or the PNC Financing Statements terminated.

     

    9. This
      Agreement shall remain in full force and effect until such time as the PNC
      Financing is fully satisfied, and PNC terminates the PNC Financing Statements.
      This Agreement shall be automatically re-instated in full force and effect
      as
      set forth in paragraph eight (8) above. 

     

    10. With
      respect to the subject matter of this Agreement, there are no other agreements
      between the parties, oral or written, other than as specifically set forth
      herein. This Agreement cannot be modified in any respect except pursuant to
      a
      written agreement executed by authorized representatives of PNC and the
      Subordinate Investors. This Agreement shall be governed by the laws of New
      Jersey and subject to the jurisdiction of the Federal and State courts of that
      State. 

     

    11. The
      Obligor and the Subordinate Investors agree to place a legend on all documents
      evidencing the Sigma Financing specifying that the Sigma Financing is subject
      to
      the terms and conditions of this Agreement and to make proper notations in
      their
      respective books, records or other statements which evidence or record any
      Sigma
      Financing, specifically indicating that the Sigma Financing is subject to this
      Agreement.

     

    12. All
      capitalized terms not specifically defined herein shall have the meaning ascribe
      therein in the PNC Documents.

     

    13. THE
      PARTIES HEREIN KNOWINGLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A
      TRIAL BY JURY WITH RESPECT TO ANY DISPUTES ARISING UNDER THIS AGREEMENT, OR
      AS
      OTHERWISE MAY ARISE BETWEEN THE PARTIES HERETO, AND FURTHER AGREE THAT EITHER
      PARTY MAY INTRODUCE THIS WAIVER INTO THE RECORD OF ANY COURT, OR IN ANY OTHER
      PROCEEDING, AS EVIDENCE OF THE OTHER PARTY'S KNOWING AND VOLUNTARY WAIVER OF
      ANY
      RIGHT IT MAY OTHERWISE HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTES
      ARISING HEREUNDER, OR AS MAY OTHERWISE ARISE BETWEEN THE PARTIES HERETO.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    14. This
      Agreement may be executed in any number of counterparts, each of which will,
      for
      all purposes, be deemed an original, and all of which are identical.

     

    IN
      WITNESS WHEREOF, the undersigned parties have executed this Agreement as of
      the
      date first set forth above.

     

    
      
        	
                ATTEST: 

              	
                 

              	
                PNC
                  BANK, NATIONAL ASSOCIATION,

              
	
                 

              	
                 

              	
                 

              	
                as
                  Agent for Lenders

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                 

              	
                 

              	
                Name:

              	
                 

              
	
                Title:

              	
                 

              	
                 

              	
                Title:

              	
                 

              

      

      

      
        	
                WITNESS:

              	
                 

              	
                SIGMA
                  OPPORTUNITY FUND, LLC,

              
	
                 

              	
                 

              	
                 

              	
                By
                  its Managing Member,

              
	
                 

              	
                 

              	
                 

              	
                SIGMA
                  CAPITAL ADVISORS, LLC

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                 

              	
                 

              	
                Name:

              	
                THOM
                  WAYE

              
	
                Title:

              	
                 

              	
                 

              	
                Title:

              	
                Manager

              

      

       
        

      
        	
                WITNESS: 

              	
                 

              	
                SIGMA
                  BERLINER, LLC,

              
	
                 

              	
                 

              	
                 

              	
                a
                  Delaware limited liability company

              
	
                 

              	
                 

              	
                 

              	
                By
                  its Managing Member,

              
	
                 

              	
                 

              	
                 

              	
                SIGMA
                  CAPITAL ADVISORS, LLC

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                 

              	
                 

              	
                Name:

              	
                THOM
                  WAYE

              
	
                Title:

              	
                 

              	
                 

              	
                Title:

              	
                Manager

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                WITNESS:

              	
                 

              	
                OPERIS
                  PARTNERS I LLC,

              
	
                 

              	
                 

              	
                 

              	
                a
                  Delaware limited liability company

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                 

              	
                 

              	
                Name:

              	
                LIOR
                  AVNERI

              
	
                Title:

              	
                 

              	
                 

              	
                Title:

              	
                Managing
                  Member

              

      

      

      
        	
                WITNESS:

              	
                 

              	
                PACIFIC
                  ASSET PARTNERS, 

              
	
                 

              	
                 

              	
                 

              	
                A
                  California Limited Partnership

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                 

              	
                 

              	
                Name:

              	
                ROBERT
                  M. STAFFORD

              
	
                Title:

              	
                 

              	
                 

              	
                Title:

              	
                General
                  Partner

              

      

       

      BERLINER
        COMMUNICATIONS, INC. AND BCI COMMUNICATIONS, INC. ACKNOWLEDGE AND CONSENT
        TO THE
        TERMS OF THE AGREEMENT SET FORTH ABOVE.

       

      
        	
                ATTEST:

              	
                 

              	
                BERLINER
                  COMMUNICATIONS, INC.

              
	
                 

              	
                 

              	
                 

              	
                f/k/a
                  Novo Networks, Inc.

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                NICHOLAS
                  DAY 

              	
                 

              	
                Name:

              	
                RICHARD
                  BERLINER

              
	
                Title:

              	
                General
                  Counsel & Secretary 

              	
                 

              	
                Title:

              	
                Chief
                  Executive Officer &
President

              

      

       

      
        	
                ATTEST:

              	
                 

              	
                BCI
                  COMMUNICATIONS, INC.

              
	
                 

              	
                 

              	
                 

              	 
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                    
                  

              	
                              
                  

              	
                 

              	
                BY:

              	
                             
                  

              
	
                Name:

              	
                NICHOLAS
                  DAY 

              	
                 

              	
                Name:

              	
                RICHARD
                  BERLINER

              
	
                Title:

              	
                General
                  Counsel & Secretary 

              	
                 

              	
                Title:

              	
                Chief
                  Executive Officer &
President

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

     

    

      Schedule
        A

      to

      Subordination
        and Inter-Creditor Agreement

      

      Documents
        From December 29, 2006 Closing:

      

      
        	 	
                1.

              	
                Note
                  Purchase Agreement, dated December 29, 2006 by and between Berliner
                  Communications, Inc. (“Berliner”) and Sigma Opportunity Fund, LLC
                  (“Sigma”).

              

      

      
        	 	
                2.

              	
                7%
                  Senior Subordinated Secured Convertible Note Due 2008, dated December
                  29,
                  2006, with a principal amount of $3,000,000 in favor of
                  Sigma.

              

      

      
        	 	
                3.

              	
                Common
                  Stock Purchase Warrant, dated December 29, 2006, for 1,500,000
                  shares of
                  common stock of Berliner for
                  Sigma.

              

      

      
        	 	
                4.

              	
                Common
                  Stock Purchase Warrant, dated December 29, 2006, for 150,000 shares
                  of
                  common stock of Berliner for Sigma Capital Advisors, LLC (“Sigma
                  Advisors”).

              

      

      
        	 	
                5.

              	
                Advisory
                  Services Agreement, dated December 29, 2006, between Berliner and
                  Sigma
                  Advisors.

              

      

      
        	 	
                6.

              	
                Security
                  Agreement, dated December 29, 2006, from Berliner and BCI Communications,
                  Inc. to Sigma.

              

      

      
        	 	
                7.

              	
                Letter
                  of Disclosure, dated December 29, 2006, from Sigma to
                  Berliner.

              

      

      
        	 	
                8.

              	
                Guaranty,
                  dated December 29, 2006, from BCI Communications, Inc. (“BCI”) to
                  Sigma.

              

      

      
        	 	
                9.

              	
                Subordination
                  and Inter-Creditor Agreement, dated December 29, 2006, between
                  Presidential Financial Corporation of Delaware Valley and
                  Sigma.

              

      

      

      Documents
        from February 2, 2007 Closing:

      

      
        	 	
                10.

              	
                Joinder
                  Agreement to Note Purchase Agreement, dated February 2, 2007 by
                  and
                  between Berliner and Pacific Asset Partners
                  (“Pacific”).

              

      

      
        	 	
                11.

              	
                7%
                  Senior Subordinated Secured Convertible Note Due 2008, dated February
                  2,
                  2007, with a principal amount of $1,000,000 in favor of
                  Pacific.

              

      

      
        	 	
                12.

              	
                Common
                  Stock Purchase Warrant, dated February 2, 2007, for 500,000 shares
                  of
                  common stock of Berliner for Pacific. This warrant was exercised
                  in
                  February 2008.

              

      

      
        	 	
                13.

              	
                Letter
                  of Disclosure, dated February 2, 2007, from Pacific to
                  Berliner.

              

      

      
        	 	
                14.

              	
                Joinder
                  Agreement to Note Purchase Agreement, dated February 2, 2007 by
                  and
                  between Berliner and Operis Partners I LLC
                  (“Operis”).

              

      

      
        	 	
                15.

              	
                7%
                  Senior Subordinated Secured Convertible Note Due 2008, dated February
                  2,
                  2007, with a principal amount of $500,000 in favor of
                  Operis.

              

      

      
        	 	
                16.

              	
                Common
                  Stock Purchase Warrant, dated February 2, 2007, for 250,000 shares
                  of
                  common stock of Berliner for Operis. This warrant was exercised
                  in March
                  2008.

              

      

      
        	 	
                17.

              	
                Letter
                  of Disclosure, dated February 2, 2007, from Operis to
                  Berliner.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Documents
        from February 15, 2007 Closing:

       

      
        	 	
                18.

              	
                Joinder
                  Agreement to Note Purchase Agreement, dated February 15, 2007 by
                  and
                  between Berliner and Sigma
                  Berliner.

              

      

      
        	 	
                19.

              	
                7%
                  Senior Subordinated Secured Convertible Note Due 2008, dated February
                  15,
                  2007, with a principal amount of $1,500,000 in favor of Sigma
                  Berliner.

              

      

      
        	 	
                20.

              	
                Common
                  Stock Purchase Warrant, dated February 15, 2007, for 750,000 shares
                  of
                  common stock of Berliner for Sigma
                  Berliner.

              

      

      
        	 	
                21.

              	
                Common
                  Stock Purchase Warrant, dated February 15, 2007, for 25,000 shares
                  of
                  common stock of Berliner for Sigma
                  Advisors.

              

      

      
        	 	
                22.

              	
                Letter
                  of Disclosure, dated February 15, 2007, from Sigma Berliner to
                  Berliner.

              

      

      

      Waiver
        and Amendments

       

      
        	 	
                23.

              	
                Waiver
                  Letter, dated May 14, 2007 from Sigma and Sigma Berliner to
                  Berliner.

              

      

      
        	 	
                24.

              	
                Amendment
                  and Waiver Agreement, dated September 27, 2007 among Berliner,
                  Sigma,
                  Sigma Berliner, Pacific and
                  Operis.Unassociated Document

    
      Exhibit
        10.5

    

    

      AMENDMENT
        TO

      NOTE
        PURCHASE AGREEMENT AND NOTES 

      AND
        SECURITY AGREEMENT THEREUNDER

       

      This
        AMENDMENT TO NOTE PURCHASE AGREEMENT AND NOTES AND SECURITY AGREEMENT THEREUNDER
        (this “Agreement”)
        is
        made and entered into as of this 17th
        day of
        April, 2008 among Berliner Communications, Inc., a Delaware corporation (the
        “Company”),
        and
        each of the undersigned holders (each, a “Noteholder,”
and
        collectively, the “Noteholders”)
        of the
        Company’s 7% Senior Subordinated Secured Convertible Notes Due 2008 (each, a
“Note”
and
        collectively, the “Notes”).

       

      WHEREAS,
        the
        Company and Sigma Opportunity Fund, LLC (“Sigma”)
        are
        parties to (i) that certain Note Purchase Agreement, dated as of December
        29,
        2006 (the “Note
        Purchase Agreement”)
        pursuant to which the Company sold and Sigma purchased a Note in the original
        principal amount of $3.0 million (the “Sigma
        Note”)
        and
        (ii) that certain Security Agreement, dated as of December 29, 2006 (the
        “Security
        Agreement”)
        pursuant to which the Company granted a security interest in certain collateral
        to Sigma;

       

      WHEREAS,
        the
        Company entered into a Joinder Agreement with Pacific Asset Partners
        (“Pacific”)
        and
        Operis Partners I LLC (“Operis”),
        dated
        as of February 2, 2007, pursuant to which (i) the Company sold and Pacific
        purchased a Note in the original principal amount of $1.0 million (the
“Pacific
        Note”),
        (ii)
        the Company sold and Operis purchased a Note in the original principal amount
        of
        $500,000 (the “Operis
        Note”)
        and
        (iii) Pacific and Operis became secured parties under the Security
        Agreement;

       

      WHEREAS,
        the
        Company entered into a Joinder Agreement with SIGMA Berliner, LLC (“SBLLC”),
        dated
        as of February 15, 2007, pursuant to which (i) the Company sold and SBLLC
        purchased a Note in the original principal amount of $1.5 million (the
“SBLLC
        Note”,
        and
        together with the Sigma Note, the Pacific Note and the Operis Note, the
“Notes”)
        and
        (ii) SBLLC became a secured party under the Security Agreement;

       

      WHEREAS,
        the
        Note
        Purchase Agreement, the Notes and the Security Agreement each reflect
        Presidential Financial Corporation of Delaware Valley (“Presidential”)
        as the
        lender of a line of credit senior to other lenders;

       

      WHEREAS,
        the Note
        Purchase Agreement, the Notes and the Security Agreement each contemplate
        that
        the Presidential line of credit and a working capital facility provided by
        an
        approved working capital lender (together, the “Senior
        Debt”)
        shall
        not exceed $10 million in the aggregate;

       

      WHEREAS,
        the
        Company and the Noteholders desire to amend the Note Purchase Agreement,
        the
        Notes and the Security Agreement to reflect the replacement of Presidential
        as
        senior lender by PNC Bank, National Association and to raise the maximum
        permitted amount of Senior Debt to $15 million.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      NOW,
        THEREFORE,
        the
        parties hereto consent and agree as follows:

       

      1. Amendment
        of Notes.
        The
        third paragraph of each of the Sigma Note, Pacific Note, Operis Note and
        SBLLC
        Note is hereby amended and restated in its entirety to read as
        follows:

       

      “The
        obligations of the Company under this Note shall rank junior to the existing
        line of credit with PNC Bank, National Association in a total amount not
        to
        exceed $15 million secured by a first priority security interest in all of
        the
        Company’s and its Subsidiaries’ assets and the proceeds thereof (the “Senior
        Debt”). The obligations of the Company under this Note shall rank senior to all
        other obligations of the Company for indebtedness for borrowed money or the
        purchase price of property other than the Senior Debt (except for indebtedness
        permitted under clause (9) of the definition of Permitted Indebtedness to
        the
        extent that such indebtedness is secured solely by the equipment purchased
        or
        leased). This Note is issued pursuant to the Note Purchase Agreement and
        the
        Holder of this Note and this Note are subject to the terms and entitled to
        the
        benefits of the Note Purchase Agreement.”

       

      2. Amendment
        of Security Agreement.
        The
        last sentence of the first paragraph of the Security Agreement is amended
        and
        restated in its entirety to read as follows:

       

      “The
        lien
        and security interest granted hereby is junior and subordinate to the lien
        and
        security interest previously and separately granted by us to PNC Bank, National
        Association (the “Senior Lender”) in a total amount of up to $15 million which
        is secured by all our assets and the proceeds thereof and senior to all of
        our
        other indebtedness.”

       

      3. Effect
        of Amendment.
        To the
        extent any provision of the Note Purchase Agreement and the Notes require
        further amendment or interpretation in order to effect and implement the
        intentions of this Agreement, the parties hereto agree that such amendments
        shall be deemed to have been made upon execution hereof.

       

      4. Counterparts.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. This Agreement may be executed via facsimile, which shall be
        deemed
        an original. 

       

      5. Severability.
        If any
        provision of this Agreement shall be declared void or unenforceable by any
        judicial or administrative authority, the validity or enforceability of any
        other provision and of the entire Agreement shall not be affected. 

       

      6. Enforceability.
        Upon
        execution of this Agreement by the undersigned Noteholders, the validity
        of any
        waiver, consent or amendment made hereunder shall be unaffected by the failure
        of any one or more Noteholders of the Company to execute this
        Agreement.

       

      7. Governing
        Law.
        This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        laws of the State of Delaware.

       

      8. Further
        Assurances.
        Following the date hereof, each party shall execute, deliver, acknowledge
        and
        file, or shall cause to be executed, acknowledged, delivered and filed, all
        such
        further instruments, certificates and other documents and shall take, or
        cause
        to be taken, such other actions as may reasonably be requested by any other
        party in order to carry out the provisions of this Agreement. 

       

      [Signature
        page follows]

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the
        parties hereto have executed this Agreement as of the date first above
        written.

      
         

        
          	
                  ATTEST: 

                	
                   

                	
                  BERLINER
                    COMMUNICATIONS, INC.

                
	
                   

                	
                   

                	
                   

                	
                  f/k/a
                    Novo Networks, Inc.

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                        
                    

                	
                                   
                    

                	
                   

                	
                  BY:

                	
                          
                            
                    

                
	
                  Name:

                	
                  NICHOLAS
                    DAY 

                	
                   

                	
                  Name:

                	
                  RICHARD
                    BERLINER

                
	
                  Title:

                	
                  General
                    Counsel & Secretary 

                	
                   

                	
                  Title:

                	
                  Chief
                    Executive Officer &
President

                

        

         

        
          	
                  ATTEST:

                	
                   

                	
                  BCI
                    COMMUNICATIONS, INC.

                
	
                   

                	
                   

                	
                   

                	 
	
                   

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                        
                    

                	
                                 
                      

                	
                   

                	
                  BY:

                	
                         
                            
                    

                
	
                  Name:

                	
                  NICHOLAS
                    DAY 

                	
                   

                	
                  Name:

                	
                  RICHARD
                    BERLINER

                
	
                  Title:

                	
                  General
                    Counsel & Secretary 

                	
                   

                	
                  Title:

                	
                  Chief
                    Executive Officer &
President

                

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        
          	
                  NOTEHOLDERS:

                	
                   

                	 
	
                   

                	
                   

                	
                   

                
	
                  WITNESS:

                	
                   

                	
                  SIGMA
                    OPPORTUNITY FUND, LLC,

                
	
                   

                	
                   

                	
                   

                	
                  By
                    its Managing Member,

                
	
                   

                	
                   

                	
                   

                	
                  SIGMA
                    CAPITAL ADVISORS, LLC

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                        
                    

                	
                                   
                    

                	
                   

                	
                  BY:

                	
                            
                          

                
	
                  Name:

                	
                   

                	
                   

                	
                  Name:

                	
                  THOM
                    WAYE

                
	
                  Title:

                	
                   

                	
                   

                	
                  Title:

                	
                  Manager

                

        

        

        
          	
                  WITNESS:

                	
                   

                	
                  SIGMA
                    BERLINER, LLC,

                
	
                   

                	
                   

                	
                   

                	
                  a
                    Delaware limited liability company

                
	
                   

                	
                   

                	
                   

                	
                  By
                    its Managing Member,

                
	
                   

                	
                   

                	
                   

                	
                  SIGMA
                    CAPITAL ADVISORS, LLC

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                        
                    

                	
                                   
                    

                	
                   

                	
                  BY:

                	
                                
                      

                
	
                  Name:

                	
                   

                	
                   

                	
                  Name:

                	
                  THOM
                    WAYE

                
	
                  Title:

                	
                   

                	
                   

                	
                  Title:

                	
                  Manager

                

        

         

        
          	
                  WITNESS:

                	
                   

                	
                  OPERIS
                    PARTNERS I LLC,

                
	
                   

                	
                   

                	
                   

                	
                  a
                    Delaware limited liability company

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                        
                    

                	
                                 
                    

                	
                   

                	
                  BY:

                	
                                       
                    

                
	
                  Name:

                	
                   

                	
                   

                	
                  Name:

                	
                  LIOR
                    AVNERI

                
	
                  Title:

                	
                   

                	
                   

                	
                  Title:

                	
                  Managing
                    Member

                

        

         

        
          	
                  WITNESS:

                	
                   

                	
                  PACIFIC
                    ASSET PARTNERS, 

                
	
                   

                	
                   

                	
                   

                	
                  A
                    California Limited Partnership

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                         
                    

                	
                                     
                    

                	
                   

                	
                  BY:

                	
                                            
                    

                
	
                  Name:

                	
                   

                	
                   

                	
                  Name:

                	
                  ROBERT
                    M. STAFFORD

                
	
                  Title:

                	
                   

                	
                   

                	
                  Title:

                	
                  General
                    Partner

                

        

        

        
          
            
            

          

          
            4

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