Document:

Peaceful Possesion Letter Agreement

 Exhibit 10.1 
 May 7, 2007 
 Laurus Master Fund, Ltd. 
 c/o Laurus Capital Management LLC 
 335 Madison Avenue, 10th Floor 
 New York, NY 10017

 Gentlemen: 
 Pursuant to the terms of that
certain Securities Purchase Agreement dated as of December 6, 2005 (the “Securities Purchase Agreement”), the Related Agreements (as such term is defined in the Securities Purchase Agreement), the Security Agreement dated as of
April 25, 2006 (the “Security Agreement”), the Ancillary Agreements (as such term is defined in the Security Agreement), and any and all documents, instruments or agreements related thereto or executed in connection therewith,
the undersigned is indebted to you in the sum of approximately $3,400,000 plus interest and costs and such obligations are secured by all or substantially all of the assets of the undersigned (the “Debt”). The undersigned further
acknowledges that (i) it has defaulted in the payment of the Debt to you, (ii) there have occurred and are continuing certain other events of default under the aforementioned agreements and (iii) by your signature below, you are
hereby accelerating the Debt and the entire amount of the Debt is currently due and owing. Because such events of default have occurred and are continuing and the undersigned in unable to pay the Debt to you, the undersigned herewith grants to you,
as of the date hereof, all rights of possession in and to the collateral set forth on Exhibit 1 hereto (the “Collateral”), to be disposed of as you, in your best discretion, deem advisable, in accordance with Section 9-610 of the
Uniform Commercial Code as enacted in the State of New York (the “UCC”), and for you to credit the net proceeds resulting from any sale or other disposition to the account of the undersigned with you in full satisfaction of the
Debt, with the undersigned having no liability for any deficiency. The undersigned acknowledges and agrees that your disposition of Collateral shall be pursuant to Section 9-610 of the UCC and not Section 9-620 of the UCC. 
 This letter also serves as an authorization to any employee of the undersigned or any third party to grant you and/or your designee, and the undersigned
hereby grants you and/or your designee, full and complete access to any premises where the Collateral is located to allow you to take possession of any such Collateral in order to enforce your rights against and collect from the net proceeds of your
disposition of the Collateral the liability due to you from the undersigned. 
 This letter is subject to the terms of an escrow letter
agreement dated May 7, 2007 among you , the undersigned and Path 1 Holdings Inc. and shall not be deemed effective unless and until released from escrow in accordance with the terms thereof. 
 The undersigned knowingly and intelligently waives any rights it may have to notice and a hearing before a court of competent jurisdiction and consents
to your entry on the premises where the aforesaid Collateral is located for the purposes set forth herein. 

 This letter agreement may be executed in multiple counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same agreement. 
 Very truly yours, 
 PATH 1 NETWORK TECHNOLOGIES INC. 
 By________________________ 
 Its________________________ 
  
 ACCEPTED AND AGREED TO: 
 LAURUS MASTER FUND, LTD. 
 By________________________ 
 Its________________________ 

			
	STATE OF CALIFORNIA	  	)
	 	  	}ss.:
	COUNTY OF	  	)

 On May __, 2007, before me personally came __________________, to me known, who being by me duly sworn, did depose
and say that he is a __________________ of Path 1 Network Technologies Inc., the entity described in and which executed the foregoing instrument; and that he was duly authorized by such entity to do so on behalf of such entity. 
  

	
	
	   
	Notary Public

			
	STATE OF NEW YORK	  	)
	 	  	}ss.:
	COUNTY OF NEW YORK	  	)

 On May __, 2007, before me personally came __________________, to me known, who being by me duly sworn, did depose
and say that he is a __________________ of Laurus Master Fund, Ltd., the entity described in and which executed the foregoing instrument; and that he was duly authorized by such entity to do so on behalf of such entity. 
  

	
	
	   
	Notary Public

 EXHIBIT 1 
 COLLATERAL 
 All inventory, equipment, goods, fixtures, documents, instruments (including, without
limitation, promissory notes), transferable contract rights, general intangibles, chattel paper, supporting obligations, investment property (including, without limitation, all partnership interests, limited liability company membership interests
and all other equity interests owned by Path 1 Network Technologies Inc. (“Path 1”)), letter-of-credit rights, trademarks, trademark applications, tradestyles, patents, patent applications, copyrights, copyright applications and other
intellectual property in which Path 1 has any right, title or interest, and all proceeds and products thereof (including, without limitation, proceeds of insurance) and all additions, accessions and substitutions thereto or therefor, in each case,
in which Laurus Master Fund, Ltd. has been granted a security interest, but specifically excluding claims and proceeds under any directors and officers liability insurance, Path 1’s cash, accounts receivable, money, deposit accounts, corporate
charter, qualifications to conduct business as a foreign corporation in any state, taxpayer and other identification numbers, seals, minute books, stock transfer books, blank stock certificates and all other documents relating to corporate
organization, maintenance or existence or Path 1.Peaceful Possesion Letter Escrow Agreement

 Exhibit 10.2 
 LAURUS MASTER FUND, LTD. 
 C/O LAURUS CAPITAL MANAGEMENT, LLC 
 335 MADISON AVENUE, 10TH FLOOR 
 NEW YORK, NEW YORK 10017 
 May 7, 2007 
 Path 1 Network Technologies Inc.

 6215 Ferris Square, Suite 140 
 San Diego, California 92121

  

	 	Re:	Peaceful Possession Letter Escrow 

 Ladies and Gentlemen:

 Reference is made to that certain undated peaceful possession letter agreement
between Path 1 Network Technologies Inc. (“Path 1”) and Laurus Master Fund, Ltd. (“Laurus”) attached hereto as Exhibit A (the “Peaceful Possession Letter”). Path 1 and Laurus hereby acknowledge and
agree that the Peaceful Possession Letter has been delivered to Laurus in escrow and shall not be deemed effective unless and until such time as Laurus shall provide Path 1 written notice of the release of the Peaceful Possession Letter from escrow,
provided that Laurus shall not deliver such written escrow release notice to Path 1 prior to the tenth (10th) day following the date Laurus gives written notice of any private sale, public sale or other disposition of the Collateral (as defined in the Peaceful Possession Letter) in accordance with Section 9-611 the Uniform
Commercial Code in effect in the State of New York. Following such release of the Peaceful Possession Letter from escrow, Path 1 hereby authorizes Laurus to date the Peaceful Possession Letter the date of such release (the “Effective
Date”). Laurus may elect, at its sole option, in its sole discretion and for any reason, to return the Peaceful Possession Letter to Path 1 at any time before the Effective Date, in which event the Peaceful Possession Letter shall be deemed
null and void. All notices by Laurus to Path 1 hereunder shall be delivered to Path 1 at its address set forth above addressed to the attention of Jeremy Ferrell. 
 For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, as of the Effective Date, each of Path 1 and Path 1 Holdings Inc. (each, a “Company”), on behalf of
itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Laurus, its successors and assigns and its present and former shareholders, affiliates,
subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Laurus and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a
“Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses,
rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which either Company or
any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or 

 
any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever, from the beginning of time through and including the Effective
Date, including, without limitation, for or on account of, or in relation to, or in any way in connection with that certain Securities Purchase Agreement dated as of December 6, 2005 (the “Securities Purchase Agreement”), the
Related Agreements (as such term is defined in the Securities Purchase Agreement), the Security Agreement dated as of April 25, 2006 (the “Security Agreement”), the Ancillary Agreements (as such term is defined in the Security
Agreement), this letter agreement and any and all documents, instruments or agreements related thereto or executed in connection therewith, or any transactions thereunder, hereunder or related thereto or hereto, including without limitation any
claims or causes of action based on “lender liability”. 
 Each Company understands, acknowledges and agrees that, on and after the
Effective Date, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release. 
 Each Company agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or
which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 
 This letter agreement may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. 
  

			
	Very truly yours,
	
	LAURUS MASTER FUND, LTD.
		
	By:	 	  
		 	Name:
		 	Title:

 ACCEPTED AND AGREED TO:  
 PATH 1 NETWORK TECHNOLOGIES INC. 
  

			
		
	By:	 	  
		 	Name:
		 	Title:

  

			
	PATH 1 HOLDINGS INC.
		
	By:	 	  
		 	Name:
		 	Title:

 EXHIBIT A 
 PEACEFUL POSSESSION LETTER

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