Document:

Unassociated Document

    EXHIBIT
      10.1

    EIGHTH
      AMENDMENT

    TO
      ADDITIONAL SENIOR SECURITY AGREEMENT

     

    EIGHTH
      AMENDMENT, dated AS OF March 12, 2007 (the "Amendment"),
      to
      the Additional Senior Security Agreement referred to below, by and among (i)
      GENERAL DATACOMM INDUSTRIES, INC., a Delaware corporation, GENERAL DATACOMM,
      INC., a Delaware corporation ("GDC"), GDC HOLDING COMPANY, LLC, a Delaware
      limited liability company, GDC NAUGATUCK, INC., a Delaware corporation, GDC
      FEDERAL SYSTEMS, INC., a Delaware corporation, GDC REALTY, INC., a Texas
      corporation (each,
      a
      "Borrower"
      and
      collectively, the "Debtors”)
      and
      Howard S. Modlin (“Modlin”) and John L. Segall (together with their successors
      and assigns the “Secured Party”).

     

    WHEREAS,
      the Debtors are obligated to repay certain indebtedness owing to Ableco Finance
      LLC as Agent and the Lenders under that certain Loan and Security Agreement
      dated as of August 20, 2002 (as amended, supplemented and otherwise modified
      from time to time, the " Senior
      Loan Agreement");

     

    WHEREAS,
      GDC and the other Debtors have requested previously on January 16, 2007 that
      Modlin as a Secured Party loan GDC an additional $125,000 to replace the
      obligations owed to the Lenders under the Senior Loan Agreement as well as
      another $100,000 on March 9, 2007 to likewise replace $100,000 of the
      obligations owed to the Lenders, subject to (i) the execution and delivery
      of
      this Amendment by the Debtors, and (ii) the other terms and conditions set
      forth
      in this Amendment; 

     

    NOW
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the parties hereto hereby agree as follows:

     

    1. Definitions
      in Amendment.
      Any
      capitalized term used herein and not defined shall have the meaning assigned
      to
      it in the Additional Senior Security Agreement dated December 30, 2003 between
      the Debtors and the Secured Party as heretofore amended ( the “Security
      Agreement”).

     

    2. Replacement
      Loans.
      In
      consideration of the principal amounts of $125,000 loaned January 16, 2007
      and
      $100,000 loaned March 9, 2007 by Modlin as a Secured Party to GDC reflected
      by
      demand notes of $125,000 and $100,000 respectively bearing interest at 10%
      per
      annum from the date hereof, GDC covenants and agrees such funds are and were
      to
      be used to replace Indebtedness of a like amount paid to the Lenders under
      the
      Senior Loan Agreement and shall be Replacement Debt as defined in the
      Subordinated Security Agreement dated September 15, 2003 between the Debtors
      and
      HSBC Bank USA as Trustee and as provided in the Indenture dated September 15,
      2003 between General DataComm Industries, Inc. and HSBC Bank USA.

     

    3. Indebtedness
      Secured.
      Paragraph 3 of the Security Agreement entitled “Indebtedness Secured” is amended
      by replacing the last sentence thereof in its entirety by the following new
      sentence “The
      Security Interest granted by Debtors secures payment of any and all indebtedness
      of Parent and its subsidiaries incurred under the Amended and Restated Notes
      and
      the demand promissory notes payable to Modlin as a Secured Party dated March
      12,
      2007 in the original principal amount of $125,000 and $100,000 respectively
      and
      which notes total $2,305,945 (the “Notes.”) 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4. Miscellaneous.

     

    (a) Continued
      Effectiveness of Security Agreement.
      Except
      as otherwise expressly provided herein, the Security Agreement shall continue
      to
      be, in full force and effect and is hereby ratified and confirmed in all
      respects.
      Except
      as expressly provided herein, the execution, delivery and effectiveness of
      this
      Amendment shall not constitute an amendment of any other provision of the
      Security Agreement.

     

    (b) Counterparts.
      This
      Amendment may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which shall be deemed to be an
      original, but all of which taken together shall constitute one and the same
      agreement.

     

    (c) Headings.
      Section
      headings herein are included for convenience of reference only and shall not
      constitute a part of this Amendment for any other purpose.

     

    (d) Governing
      Law.
      This
      Amendment shall be governed by, and construed in accordance with, the law of
      the
      State of New York.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
      and delivered as of the date first above written.

     

    

    
      	 	
              Borrowers:

            
	 	 
	 	
              GENERAL
                DATACOMM INDUSTRIES, INC.

            
	 	
              a
                Delaware corporation

            
	 	 
	 	
              By___________________________________

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              GENERAL
                DATACOMM, INC.,

            
	 	
              a
                Delaware corporation

            
	 	 
	 	
              
                By___________________________________

              

            
	 	
              Title:
                Vice President

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	 	 
	 	 
	 	
              GDC
                HOLDING COMPANY, LLC,

            
	 	
              a
                Delaware limited liability company

            
	 	 
	 	
              
                By___________________________________

              

            
	 	
              Title:
                Vice President

            
	 	 
	 	
              GDC
                FEDERAL SYSTEMS, INC.,

            
	 	
              a
                Delaware corporation

            
	 	 
	 	
              
                By___________________________________

              

            
	 	
              Title:
                Vice President

            
	 	 
	 	
              GDC
                NAUGATUCK, INC.,

            
	 	
              a
                Delaware corporation

            
	 	 
	 	
              
                By___________________________________

              

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              GDC
                REALTY, INC.,

            
	 	
              a
                Texas corporation

            
	 	 
	 	
              
                By___________________________________

              

            
	 	
              Title:
                Vice President

            
	 	 
	 	
              Secured
                Party

            
	 	 
	 	
              _____________________________________ 

            
	 	
              Howard
                S. Modlin

            
	 	 
	 	
              _____________________________________  

            
	 	
              John
                L. Segall

            

    

    

    
      
         

      

      
        3Unassociated Document

    EXHIBIT
      10.2

    

    

    $125,000
      NEGOTIABLE PROMISSORY NOTE

    

    March
      12,
      2007

     

    

    For
      value
      received, General DataComm Industries, Inc, having an office at 6 Rubber Avenue,
      Naugatuck CT 06770 (“Payor”), promises to pay on demand to the order of Howard
      S. Modlin, having an office at 445 Park Avenue, 15th
      floor,
      New York, New York 10022 (“Payee”), with interest at the rate of 10% per annum
      on the unpaid balance thereof from March 12, 2007, the principal sum of $125,000
      in lawful money of the United States of America. This Note is payable on demand
      and may be prepaid at any time without penalty or premium. Interest which
      accrues during each calendar month shall be paid on the first day of the
      following calendar month during the term of this Note or date of payment or
      prepayment if earlier. This Note evidences a previous demand loan made to Payor
      by Payee on January 16, 2007 in the sum of $125,000 for the purpose of Payor
      replacing indebtedness of a similar amount paid to Ableco Finance LLC, as Agent,
      and the Lenders, under Loan and Security Agreement dated as of August 20,
      2002.

    

    1.
      Payment of this Note is unconditional and shall be made without defense,
      counterclaim or offset, any defense to be asserted in a separate suit. If
      payment is not made on the installment date or at maturity or upon the
      occurrence of a Default, then interest shall accrue from such date until paid
      in
      full at the rate of 12% per annum or the maximum permitted by law, whichever
      is
      less. This Note is secured by a security agreement dated December 30, 2003,
      as
      amended.

    

    2.
      The
      term “Default” as used herein shall mean the failure of Payor to pay the
      principal or interest on this Note when due or the failure of Payor to perform
      any other obligation under this Note (including the obligations under the
      security agreement securing this Note) or if an Event of Default exists under
      the Payor’s Loan and Security Agreement with Ableco Finance LLC and such
      indebtedness is accelerated.

    

    3.
      Payor
      agrees to pay all costs and expenses of collection, including reasonable
      attorney’s fees, in the event of acceleration of this Note by Payee or holder
      following Default.

    

    4.
      Presentation for payment, notice of dishonor, protest and notice of protest
      are
      hereby waived.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.
      This
      Note shall be governed by the laws of the State of Connecticut. The Payor of
      this Note hereby submits to the exclusive jurisdiction of the courts of general
      jurisdiction of the State of Connecticut, and hereby waives, and agrees not
      to
      assert, as a defense in any action, suit or proceeding for the interpretation
      or
      enforcement of this Note, that it is not subject thereto or that such action,
      suit or proceeding may not be brought or it is not maintainable in such courts,
      or that this Note may not be enforced in or by such courts, or that the suit,
      action or proceeding is brought in an inconvenient forum, or that the venue
      of
      the suit, action or proceeding is improper. Service of process with respect
      thereto may be made upon Payor by mailing a copy thereof by registered or
      certified mail, postage prepaid, to such party at its address as provided
      above.

    

    

    
      	 	
              GENERAL
                DATACOMM INDUSTRIES, INC.

            
	 	 
	 	
              By:_______________________________________

            
	 	
                     William
                G. Henry 

            
	 	
                     Title:
                Vice President, Finance 

            
	 	
                     and
                Administration

            

    

    

    
      
         

      

        
        2

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