Document:

Unassociated Document

    Laurus
      Master Fund, Ltd.

    c/o
      Laurus Capital Management, L.L.C.

    335
      Madison Avenue, 10th Floor

    New
      York,
      New York 10017

    
 

    July
      10,
      2007

    

    

    Howie
      S.
      Balter

    Ilan
      Slasky

    360
      Madison Avenue

    21st
      Floor

    New
      York,
      NY 10017

    

    Dear
      Gentlemen: 

     

    We
      refer
      to the transactions contemplated by (i) the Limited Recourse Guaranty
      Agreements, dated of even date herewith, by and between Laurus Master Fund
      Ltd.
      (“Laurus”)
      and
      each of Howie S. Balter and Ilan Slasky (each, a “Pledgor”;
      such
      agreements, the “Guaranties”),
      (ii)
      the Pledge and Security Agreements, dated of even date herewith, by and between
      Laurus and each of the Pledgors (such agreements, the “Pledges”
and
      collectively with the Guaranties, the “Pledge
      Documents”)
      and
      (iii) the Security and Purchase Agreement dated as of July 31, 2006, by and
      between Laurus and 180 Connect Inc., a Nevada corporation (“180
      Connect US”),
      and
      each party listed on the signature pages thereto other than 180 Connect US,
      each
      guarantor party and the undersigned (together with 180 Connect US, each a
“Company”
and
      collectively, “Companies”)
      (as
      amended, restated, modified and/or supplemented from time to time, the
“Security
      Agreement”).
      This
      letter agreement sets forth certain understandings and agreements we have
      reached in connection with the transactions set forth in the Pledge Documents
      and Security Agreement. Terms used but not defined herein shall have the
      meanings given such terms in the Security Agreement.

    

    We
      have
      agreed as follows: 

    

    1.  To
      the
      extent such is not otherwise permitted under the Security Agreement, Laurus
      hereby consents to the Companies entering into one or more Capital Raising
      Transactions (as hereinafter defined) from the date hereof through the date
      on
      which the obligations of the Pledgors under the Pledge Documents are released
      or
      terminated; provided that, notwithstanding anything to the contrary in the
      Security Agreement or any Ancillary Agreements (as amended), the proceeds of
      such Capital Raising Transactions shall either be (a) remitted to Laurus to
      be
      applied to the Obligations of Company under the Security Agreement (the first
      $7,000,000 in proceeds to be applied in accordance with Section 2(a) below),
      or
      (b) remitted to Pledgors but only to the extent permitted pursuant to Section
      4
      below. As used herein, the term “Capital
      Raising Transaction”
shall
      mean any issuance of subordinated and/or unsecured debt or equity securities
      (including, without limitation, any shares of capital stock, securities
      convertible in to or exchangeable for shares of capital stock, or warrants,
      options or other rights for the purchase or acquisition of such shares, and
      other ownership or profit interests (including, without limitation, partnership,
      member or trust interest therein), whether voting or nonvoting) of 180 Connect
      Inc. (CN) or any of its Subsidiaries including, without limitation, the
      Companies.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.  Except
      upon an occurrence and during the continuance of an Event of Default under
      Section 19(i) of the Security Agreement and provided Laurus has not exercised
      its rights and remedies in respect of the Collateral (as such term is defined
      in
      the Pledges):

    

    
      	 	
              (a)

            	
              The
                Companies agree that the first $7,000,000 received by the Companies
                from
                the aggregate proceeds of all Capital Raising Transactions shall
                be
                promptly remitted to Laurus to be applied to the then outstanding
                principal balance under the Secured Non-Convertible Revolving Note
                (as
                amended) and that the Capital Availability Amount under the Secured
                Non-Convertible Revolving Note shall thereupon be permanently reduced,
                dollar-for-dollar, by the amount of any such payments applied thereto.
                

            

    

    

    
      	 	
              (b)

            	
              Laurus
                agrees that its Lien on the Collateral shall be automatically released,
                without further action by any Person, dollar-for-dollar, in the aggregate
                amount of any payments made by the Companies to Laurus pursuant to
                the
                terms set forth in clause (a) above until all Collateral shall have
                been
                fully released. The releases of Laurus’ Lien on the Collateral under this
                clause (b) shall apply ratably to each of the Pledges executed by
                the
                Pledgors. 

            

    

    

    3.  The
      Companies agree, jointly and severally, that they shall be obligated to
      reimburse the Pledgors in cash up to the value of the Collateral upon which
      Laurus shall have exercised its rights and remedies pursuant to the terms of
      the
      Pledge Documents (the “Reimbursement
      Obligations”).
      Such
      Reimbursement Obligation shall be immediately due and payable upon the
      occurrence of such exercise by Laurus, but shall be subject to the terms of
      this
      letter agreement.

    

    4.      
      The
      parties hereto agrees that:

    

    
      	 	
              (a)
                

            	
              Except
                as specifically set forth herein to the contrary, all obligations
                of the
                Companies in respect of the Reimbursement Obligations shall be junior
                and
                subordinate in right of payment to all the Obligations. No direct
                or
                indirect payment by set-off, redemption, purchase or in any other
                manner
                on account of or pursuant to the Reimbursement Obligations shall
                be made
                by any Company, nor shall any distribution of assets of any Company
                be
                applied to the payment, purchase or other acquisition, retirement
                or
                satisfaction of any Reimbursement Obligations until the Obligations
                have
                been indefeasibly paid in full; provided however that, so long as
                no Event
                of Default under Section 19(i) of the Security Agreement has occurred
                and
                is continuing, the Companies shall make to Pledgors, and the Pledgors
                shall be entitled to receive and retain, payments in respect of the
                Reimbursement Obligations then due and payable from the proceeds
                of
                Capital Raising Transactions before any proceeds from such Capital
                Raising
                Transactions are remitted to Laurus in respect of the
                Obligations.

            

    

    
       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (b)
                  

              	
                
                  Each
                    Pledgor further agrees that in the event of any dissolution,
                    winding up,
                    liquidation, reorganization or other similar proceedings relative
                    to any
                    Company, its property or its operations (whether in bankruptcy,
                    insolvency
                    or receivership proceedings, or upon an assignment for the benefit
                    of
                    creditors, or any other marshalling of the assets of any Company
                    or
                    otherwise), then all Obligations shall first be paid in full
                    before any
                    Pledgor shall be entitled to receive or retain any payment or
                    distribution
                    of assets of any Company with respect to the Reimbursement Obligations
                    then due and payable. In any such proceedings, any payment or
                    distribution
                    of assets to which any Pledgor would be entitled if the Reimbursement
                    Obligations were not subordinated to the Obligations shall be
                    turned over
                    by any Pledgor if received by it, directly to Laurus, to the
                    extent
                    necessary to make payment in full of all the Obligations remaining
                    unpaid.

                

              

      

    

    

    
      	 	
              (c)

            	
              In
                the event that any Pledgor shall receive any payment or distribution
                of
                assets that, pursuant to the terms of this letter agreement, it is
                not
                entitled to retain, such Pledgor shall hold any amount so received
                in
                trust for Laurus and shall forthwith turn over such payment or
                distribution to Laurus in the form received to be applied to the
                Obligations. 

            

    

    

    
      	 	
              (d)

            	
              In
                the event that Laurus shall receive any payment that, pursuant to
                the
                terms of this letter agreement, it is not entitled to retain, Laurus
                shall
                hold any amount so received in trust for Pledgors and shall forthwith
                turn
                over such payment as directed by Pledgors in writing in the form
                received
                to be applied to the Reimbursement
                Obligations

            

    

    

    5.  Nothing
      contained herein shall be construed as modifying Laurus’ first-priority security
      interest in the assets of the Companies. 

    

    6.  If
      any
      provision of this letter agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this letter agreement in that jurisdiction
      or the validity or enforceability of any provision of this letter agreement
      in
      any other jurisdiction.

    

    7.  All
      questions concerning the construction, validity, enforcement and interpretation
      of this letter agreement shall be governed by the laws of the State of New
      York,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New York or any other jurisdictions) that would cause
      the application of the laws of any jurisdictions other than the State of New
      York.

    

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

       

    

    8.  This
      letter agreement may be executed in identical counterparts, all of which shall
      be considered one and the same agreement, and shall become effective when
      counterparts have been signed by each party and delivered to each other party;
      provided, that a facsimile signature shall be considered due execution and
      shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

    

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    If
      the
      foregoing accurately reflects our understanding, please so indicate by your
      signature below.

     

    
      	 	 	 
	 	Sincerely
              Yours,
	 	 
	 	
              LAURUS
                MASTER FUND LTD.

            
	 
 	 
 	 
 
	 	By:  	/s/ David
              Grin
	 	
              
Name:
	 	Title:

    

     

     

    ACCEPTED
      AND AGREED TO: 

    

    HOWIE
      S.
      BALTER

    

    
      	 	 	 	 
	/s/ Howie
              Balter	 	 	 
	
              

            	 	 	
            
	 	 	 	 

    

    ILAN
      SLASKY

    
      

      
        	 	 	 	 
	/s/ Ilan
                Slasky	 	 	 
	
                

              	 	 	
              
	 	 	 	 

      

    

    180
      CONNECT, INC.

     

    
      
        
          	 	 	 	 	 
	By: 	/s/ Steve
                  Westberg	 	 	 
	 	
                  
Name:	 	 	
                
	 	Title:EXHIBIT 4.2

                    SCHEDULE OF DIFFERENCESIN
                    ATTACHED PROMISSORY NOTES

[A]   [B]         [C]              [D]          [E]
-----------------------------------------------------------------------------
$ 350   September 6, 2006   Leonard W.  Three Hundred   Leonard  W. Suroff
                            Suroff      Fifty ($ 350)   12 Tompkins Avenue
                                                        Jericho, NY 11753
-----------------------------------------------------------------------------
$ 1,000 September 13, 2006  Leonard W.  One Thousand    Leonard W. Suroff
                            Suroff      ($1,000)        12 Tompkins Avenue
                                                        Jericho, NY 11753
-----------------------------------------------------------------------------
$ 3,750 October 4, 2006     Leonard W.  Three Thousand  Leonard W. Suroff
                            Suroff      Seven Hundred   12 Tompkins Avenue
                                        Fifty ($3,750)  Jericho, NY 11753
-----------------------------------------------------------------------------
$ 1,000 October 12, 2006    Leonard W.  One Thousand    Leonard W. Suroff
                            Suroff      ($1,000)        12 Tompkins Avenue
                                                        Jericho, NY 11753
-----------------------------------------------------------------------------
$ 120   August 14, 2006     Richard     One Hundred     Richard Bernstein
                            Bernstein   Twenty ($ 120)  4 Dogwood Hill
                                                        Brookville, NY 11545
-----------------------------------------------------------------------------
$ 350   September 6, 2006   Richard     Three Hundred   Richard Bernstein
                            Bernstein   Fifty ($ 350)   4 Dogwood Hill
                                                        Brookville, NY 11545
-----------------------------------------------------------------------------
$ 150   September 15, 2000  Richard     One Hundred     Richard Bernstein
                            Bernstein   Fifty ($150)    4 Dogwood Hill
                                                        Brookville, NY 11545
-----------------------------------------------------------------------------
$ 1,250 October 4, 2000     Richard     One Thousand    Richard Bernstein
                            Bernstein   Two Hundred     4 Dogwood Hill
                                        Fifty ($1,250)  Brookville, NY 11545
-----------------------------------------------------------------------------

                                  1
<PAGE>

                         PROMISSORY NOTE

[A]                                          Jericho, New York
                                                          [B]

FOR VALUE RECEIVED, the undersigned, IPORUSSIA, INC., a Delaware
corporation (the "Maker"), hereby absolutely, unconditionally,
                  -----
irrevocably and expressly promises to pay on January 1, 2008 to
the order of [C] (the "Holder"), the sum [D], together with
                       ------
interest at the rate of 5.00% per annum, compounded annually, all
upon the terms and provisions of this Amended and Restated
Promissory Note (as the same may be supplemented, modified,
amended, restated or replaced from time to time in the manner
provided herein, this "Note").
                       ----

        Payment is to be made to the Holder, at the address for
notices of the Holder set forth below, on such other place as the
Holder may designate in waiting to the Maker, in lawful money of
the United States of America in immediately available funds.

        If any payment of principal on this Note shall become due
on a Saturday, Sunday or public holiday under the laws of the
State of New York, such payment shall be made on the next
succeeding business day.

        The Maker shall have the right, at its option, to prepay
this Note in whole at any time or in part from time to time,
without premium or penalty.

        Notwithstanding the foregoing, the entire unpaid
principal of this Note shall become immediately due and payable
without notice or demand in the event:

  (i)   The Maker shall institute a proceeding to be adjudicated a
        bankrupt or insolvent or admits in writing its inability
        to pay its debts as they mature or makes an assignment for
        the benefit of creditors, or applies for or consents to
        the appointment of a trustee or receiver for himself or
        for the major part of its property;

  (ii)  Any bankruptcy, reorganization, arrangement or insolvency
        proceedings, or other proceeding for relief of debtors is
        instituted against the Maker; or

  (iii) Any trustee or receiver is appointed for the Maker or for
        the major part of its properties.

        In any case in which this Note has become due and payable,
the Holder also may proceed to protect and enforce the Holder's
rights by suit in equity and/or by action at law or equity, or by
other appropriate proceedings, whether for specific performance
(to the extent permitted by law) or otherwise, or proceed to
enforce the payment of this Note or to enforce any other legal or
equitable right of the Holder and, in such event, the Maker
agrees to pay reasonable attorneys' fees and costs incurred by
the Holder in the collection hereof.

                                  2
<PAGE>

        All notices and other communications required or
permitted to be given pursuant to this Note shall be in writing
and shall be considered given in the manner, and be deemed given
at times, as follows: (a) on the date delivered, if personally
delivered; (b) on the next business day after being sent by
recognized overnight mail service specifying next business day
delivery; or (c) five (5) business days after mailing, if mailed
by United States postage-paid certified or registered mail,
return receipt requested, in each case addressed to the following
addresses:

    (A)  To the Maker:

         IPORUSSIA, Inc.12 Tompkins AvenueJericho, New York 71753

    (B)  To the Holder:

         [E]

        The above-named parties may designate by notice to each
other any new address for the purpose of this Note. Refusal to
accept delivery of any item shall be deemed to be receipt of such
item by the refusing party.

        This Note shall be construed and interpreted in
accordance with the laws of the State of New York (other than
those conflict of law rules that would defer to the substantive
laws of another jurisdiction). Maker hereby consents and agrees
that the Supreme Court of the State of New York for the County of
Nassau and the United States District Court for the Eastern
District of New York each shall have personal jurisdiction and
proper venue with respect to any dispute between Maker and Holder
under or related to this Note; provided that the foregoing
                               -------------
consent shall not deprive Holder of the right in its discretion
to voluntarily commence or participate in any proceeding in any
other court having jurisdiction and venue over Maker. Each and
every modification, and amendment of this Note shall be in
writing and signed by Holder and Maker, and each and every waiver
of any term or provision of this Note shall be in writing and
signed by Holder.

        This Note shall be binding upon the successors, assigns
and legal representatives of Maker, but shall not be assigned by
Maker. This Note shall inure to the benefit of the heirs,
executors, administrators, successors, assigns and legal
representatives of Holder and may be assigned by Holder. In the
event that any term or provision of this Note shall be finally
determined to be invalid, illegal or otherwise unenforceable by a
court having jurisdiction and venue, that determination shall not
impair or otherwise affect the validity, legality or
enforceability (a) before that court of the remaining terms and
provisions of this Note or any related document, which shall be
enforced as if the unenforceable term or provision were deleted,
unless the unenforceable term or provision would impair the
practical realization of Holder's principal rights and benefits
hereunder, or (b) by or before any other court or governmental
authority of any of the terms and provisions of this Note or any
related document.

                                  3
<PAGE>

        Maker shall pay or reimburse on demand any and all costs
and expenses incurred by Holder, whether directly or indirectly,
in connection with the administration, maintenance, enforcement
and adjudication of this Note or any related document and the
rights, powers, privileges, remedies and other interests of
Holder hereunder, thereunder and under applicable law, in each
case including (without limitation) the disbursements, expenses
and fees of counsel to Holder and the disbursements, expenses and
fees of any local or special counsel retained by Holder or its
counsel.
        The Maker hereby absolutely, unconditionally, irrevocably
and expressly waives forever presentment, demand, protest, notice
of dishonor, notice of any guaranty or other credit support, and
notice of any renewal or extension of this Note.

        The Maker hereby absolutely, unconditionally, irrevocably
and expressly waives forever trial by jury in any action, suit or
proceeding in any jurisdiction brought by Holder against Maker or
vice versa.

        Holder has not (directly or indirectly) offered, made,
accepted or acknowledged any representation, warranty, promise,
assurance or other agreement or understanding (whether written,
oral, express, implied or otherwise) to, with or for the benefit
of the Maker respecting any of the matters contained in this Note
except for those expressly set forth in this Note. This Note
contains the entire agreement and understanding of Maker and
Holder and supersedes and completely replaces all prior and other
representations, warranties, promises, assurances and other
agreements and understandings (whether written, oral, express,
implied or otherwise) among them with respect to the matters
contained in this Note.

        IN WITNESS WHEREOF, the Maker has duly executed and
delivered this Note as of the day and year first above written.

                          IPORUSSIA, INC.

                          By:/s/ Leonard W. Suroff
                             ---------------------------
                             Leonard W. Suroff
                             Executive Vice President

                                  4

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