Document:

Exhibit
4.2

    AMENDED
AND RESTATED

    SECURED
PROMISSORY NOTE

    

    

    New York,
New York

     As
of January 1, 2009

    US$11,601,156

    

    FOR VALUE RECEIVED, Porta Systems Corp.
("Maker") hereby promises to pay to Cheyne Special Situations Fund, L.P.
("Holder"), or order, at Stornoway House, 13 Cleveland Row, London SWIA 1DH,
United Kingdom, or at such other address as the Holder may specify in writing,
the principal sum of $11,601,156 USA pursuant to that certain Amended and
Restated Loan and Security Agreement between the Maker and Foothill Capital
Corporation, dated as of November 28, 1994 (as the same shall be amended from
time to time, the "Agreement") plus interest in the manner and upon the terms
and conditions set forth below.

    

    1.           Rate of
Interest.

    

    This Amended and Restated Secured
Promissory Note ("Note") includes unpaid, accrued interest through December 31,
2008 in the amount of $351,156 which is hereby added to the amounts due and
owing under this Note and which is not included in the principal amount
hereof.  Commencing on January 1, 2009 and thereafter this Note shall
bear interest at the rate of 121⁄2% per annum on the outstanding principal
balance, payable as indicated in Section 2 below.

    

    2.           Schedule of Payments of
Principal and Interest.

    

    Principal and interest under this Note
shall be due and payable as follows: twelve quarterly installments each in the
amount of $375,000, with the first payment of principal and interest being due
on June 30, 2010, followed by 13 quarterly installments of principal and
interest each in the amount of $500,000, with a final payment of all remaining
principal and accrued interest on September 30, 2016.  All payments
shall be applied first to accrued interest and any remainder to
principal.

    

    3.           Prepayment.

    

    This Note may be prepaid at any time,
in whole or in part, without any premium or penalty whatsoever.

    

    Maker is required to prepay this Note
under certain circumstance set forth in the Agreement.

    

    4.           Holder's Right of
Acceleration.

    

    Upon the occurrence of an Event of
Default under the Agreement including, but not limited to, the failure to pay
any installment of principal or interest hereunder when due, the Holder may, at
its election and without notice to the Maker, declare the entire balance hereof
immediately due and payable.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           Additional Rights of
Holder.

    

    If any installment of principal or
interest hereunder is not paid when due, the Holder shall have the right to add
the unpaid interest to principal, with such amount thereafter bearing interest
from the date that such interest is added to principal at the rate provided in
this Note in addition to the rights set forth herein, in the Agreement, and
under law.

    

    6.           General
Provisions.

    

    (a)           If
this Note is not paid when due, the Maker further promises to pay all costs of
collection, foreclosure fees, and reasonable attorneys' fees incurred by the
Holder, whether or not suit is filed hereon.

    

    (b)           The
Maker hereby consents to any and all renewals, replacements, and/or extensions
of time for payment of this Note before, at, or after maturity, subject to
clauses (e), (f), (g), and (h) below.

    

    (c)           The
Maker hereby consents to the acceptance, release or substitution of security for
this Note, subject to clauses (e), (f), (g), and (h) below.

    

    (d)           Presentment
for payment, notice of dishonor, protest, and notice of protest are hereby
expressly waived.

    

    (e)           Any
waiver of any rights under this Note, the Agreement, or under any other
agreement, instrument, or paper signed by the Maker is neither valid nor
effective unless made in writing and signed by the Holder.

    

    (f)           No
delay or omission on the part of the Holder in exercising any right shall
operate as a waiver thereof or of any other right.

    

    (g)           A
waiver by the Holder upon any one occasion shall not be construed as a bar or
waiver of any right or remedy on any future occasion.

    

    (h)           Should
any one or more of the provisions of this Note be determined illegal or
unenforceable, all other provisions shall nevertheless remain
effective.

    

    (i)           This
Note cannot be changed, modified, amended, or terminated orally.

    

    (j)           All
amounts due hereunder shall be paid in United States of America
dollars.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Security for the
Note.

    

    This Note is secured by the security
interest as set forth in the Agreement, and by various other security
documents.  This Note is subject to all of the terms and conditions of
the Agreement including, but not limited to, the remedies specified
therein.

    

    8.           Amendment and
Restatement.

    

    This Note amends, restates and replaces
in its entirety that certain Amended and Restated Secured Promissory Note dated
August 1, 2008 which amended, restated and replaced in their entirety that
certain Secured Promissory Note in the principal amount $22,609,930.30
originally dated March 1, 2002 and that certain Secured Promissory Note in the
principal amount of $2,250,000 originally dated May 10, 2002.  The
Notes dated March 1, 2002 and May 10, 2002 have been lost by the Holder and the
Holder agrees to execute and deliver to the Maker a lost notes affidavit in
standard form.

    

    9.           Choice of Law and
Venue.

    

    THE VALIDITY OF THIS NOTE, ITS
CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT, AND THE RIGHTS OF THE MAKER AND
THE HOLDER, SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THAT WOULD REQUIRE APPLICATION OF THE LAW OF ANOTHER
JURISDICTION. THE MAKER AND HOLDER HEREBY AGREE THAT ALL ACTIONS OR PROCEEDING
ARISING IN CONNECTION WITH THIS NOTE SHALL BE TRIED AND DETERMINED ONLY IN THE
STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK.
THE MAKER AND HOLDER HEREBY EXPRESSLY WAIVE ANY RIGHT EACH OF THEM MAY HAVE TO
ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT
ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

    

    10                      Waiver of Jury
Trial.

    

    THE MAKER AND HOLDER HEREBY EXPRESSLY
WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION,
OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS NOTE, OR IN ANY WAY
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE DEALINGS OF THE HOLDER AND THE
MAKER WITH RESPECT TO THIS NOTE, OR THE TRANSACTIONS RELATED HERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE.  THE MAKER AND HOLDER HEREBY
AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL
BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT THE HOLDER MAY FILE AN
ORIGINAL COUNTERPART OF THIS SECTION 10 WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF MAKER TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, this Note has been
executed and delivered on the date first set forth above.

    

    PORTA SYSTEMS CORP.,

    a Delaware corporation

    

    

    By:  /s/ Edward B.
Kornfeld                       

            Edward
B. Kornfeld

            Chief
Executive Officer

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONSENT AND
RATIFICATION

     

    Each of
the undersigned affiliates of Porta Systems Corp. (“Porta”) is aware of the
terms of the above attached Amended and Restated Secured Promissory Note, dated
as of January 1, 2009 (the “Note”), and hereby consents to the Note and
guarantees the obligations of Porta under the Note.

     

    
    

     

    
      	 	      
              ASTER
      CORPORATION

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:
      Edward B.
      Kornfeld

              Title:________________

            
	 	 
	 	 
	 	      
              CPI
      HOLDING CORP.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:
      Edward B.
      Kornfeld

              Title:________________

            
	 	 
	 	 
	 	      
              CRITERION
      PLASTICS, INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:
      Edward B.
      Kornfeld

              Title:________________  

            
	 	 
	 	 
	 	      
              DISPLEX,
      INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:________________

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 
	 	 
	 	      
              MIROR
      TELEPHONY SOFTWARE, INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      FOREIGN SALES CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS OVERSEAS CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              LERO
      INDUSTRIES LTD.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS, LIMITED

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	      
              PORTA
      SYSTEMS EXPORT CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS INTERNATIONAL CORP.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS LEASING CORP.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              VANDERHOFF
      BUSINESS SYSTEMS LTD.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              VANDERHOFF
      COMMUNICATIONS LTD.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS S.A. de C.V.

              

              

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:_________________Exhibit
4.3

    
      	
              NEGOTIABLE PROMISSORY
      NOTE

            

    

    

    
      	
              $1,747,012

            	
              New
      York, New York

            
	 
      	
              As
      of January 1, 2009

            

    

    

    FOR VALUE
RECEIVED, PORTA SYSTEMS CORP., hereinafter referred to as “Borrower”, with an
address at 6851 Jericho Turnpike, Syosset, New York, 11791, hereby promises to
pay to the order of CHEYNE SPECIAL SITUATIONS FUND, L.P., hereinafter referred
to as “Lender”, with an address at P.O. Box 908 GT, Walker House, Mary Street,
Grand Caymans, Cayman Islands, or at such other place as the Lender or any
holder hereof may from time to time have designated, the principal sum of ONE
MILLION SEVEN HUNDRED FORTY SEVEN THOUSAND TWELVE AND NO/100 ($1,747,012)
DOLLARS, which shall be due and payable on April 30, 2010, together with any
accrued interest, unless prepaid in accordance with the terms of this
note.  Interest shall accrue and be payable on the outstanding
principal balance of this Note at an amount equal to the six-month rate of LIBOR
as reported in the Money Rate Section of the Wall Street Journal on a “Payment
Date” (as hereafter defined) or if such Payment Date is not a business
publication date of the Wall Street Journal, the first such publication date
immediately prior to the Payment Date, plus 10%, payable as set forth herein
(this “Note”).  This Note supersedes and replaces in its entirely that
certain Negotiable Promissory Note between the Borrower and the Lender dated
November 11, 2008, as amended, in the principal amount of one million seven
hundred forty seven thousand and twelve dollars ($1,747,012) (the “Prior
Note”).  As of the date hereof, accrued interest on the Prior Note as
of December 31, 2008 is $29,608, which is hereby added to the amounts due and
owing under this Note. For avoidance of doubt, the Prior Note superseded and
replaced in its entirety those certain Negotiable Promissory Notes between the
Borrower and the Lender dated October 23, 2007 in the principal amount of
$1,000,000 which was subsequently amended and restated on November 11, 2008 in
the principal amount of $1,747,012.

    

    1.           Payment of Principal and
Interest.   Principal and interest payments of an
aggregate amount of $125,000 monthly shall be paid commencing on the last day of
January 2009, and the last day of each month thereafter with any unpaid
principal and accrued interest due on April 30, 2010.  Borrower
payments shall be allocated as follows: first, to accrued interest, then to
principal, and then until the accrued interest and principal are paid in full.
The Borrower may prepay the principal due under this Note, together with accrued
interest thereon, in whole or in part, without penalty.  Interest
shall be calculated on the basis of a year of 365 days, and charged for the
actual number of days elapsed.

    

    2.           Default.  The
following shall be events of default (“Events of Default”)
hereunder:

    

    (a)           If
any payment of principal, interest or other sum due hereunder shall not be made
as and when the same shall become due and payable;

    

    (b)           If
Borrower defaults under that certain Amended and Restated Loan and Security
Agreement (the “Loan Agreement”), as amended from time to time, dated as of
November 28, 1994, between Borrower and Wells Fargo Foothill, Inc. (“Foothill”),
whereby Lender is the successor in interest of the obligations of Borrower to
Foothill, pursuant to an assignment dated February 7, 2007, between Lender and
SHF IX, LLC, a Delaware limited liability company (“SHF IX”), Foothill’s
successor in interest pursuant to an assignment between Foothill and SHF IX
dated October 7, 2004;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)           A
default by Borrower under this Note shall constitute an Event of Default under
the Loan Agreement.

    

    3.           Collateral.  All
Collateral (as defined in the Loan Agreement) shall secure prompt payment in
full of all of Borrower’s obligations in connection with this Note as well as
all obligations in connection with the Loan Agreement.

    

    4.           Due Upon Event of
Default.   This Note (the entire remaining principal
balance, interest and any other sums due hereunder) shall automatically become
immediately due and payable, without further notice or demand, upon the
occurrence of any Event of Default described in Section 2 above.

    

    5.           Collection Costs. The
Borrower shall be liable for any and all out-of-pocket costs (including
reasonable attorneys’ fees and court costs) incurred by the Lender in connection
with Lender’s enforcement of, or collection of amounts owed by the Lender under,
this Note or any other documents contemplated hereby (any and all such sums,
“Collection
Costs”).

    

    6.           Application of
Payments.  Any payments made by Borrower hereunder shall be
applied by Lender in the following priority:  first, to unpaid or
unreimbursed Collection Costs, next to accrued but unpaid interest, and finally,
to reduction of principal.

    

    7.           Transfers;
Prepayment.  This Note may be transferred, assigned, pledged,
hypothecated or negotiated by the Lender at any time without notice or consent
of Borrower.  This Note shall be binding upon the Borrower, its
representatives, successors and permitted assigns.  The Borrower shall
not assign this Note or any of its rights or obligations hereunder without the
prior written consent of Lender.

    

    8.           Waiver.  Except
as otherwise expressly required herein, the Borrower hereby waives presentment,
demand for payment, notice of dishonor, protest, notice of protest and
non-payment, notice of intention to accelerate, notice of acceleration and any
and all other notices or demands whatsoever in connection with the delivery,
acceptance, performance, default or enforcement of this Note.  In any
action, suit or proceeding arising out of or relating to this Note, the Borrower
hereby waives the right to interpose any defense, set-off or counterclaim of any
kind or nature whatsoever.  No release of any security for the Note or
extension of time for payment of this Note or any payment installment hereof,
and no alteration, amendment or waiver of any provision of this Note or other
agreement relating to the Note or the obligations of Borrower hereunder between
the Lender or any other person or company shall release, modify, amend, waive,
extend, change, discharge, terminate or affect the liability of the Borrower,
and any other person or entity who may become liable for the payment of all or
any part of this Note, except as otherwise specifically provided in writing by
any such alterations, amendments or waivers of this Note or such other
agreements.  No notice to or demand on the Borrower shall be deemed to
be a waiver of the obligation of the Borrower or of the right of the Lender to
take further action without further notice or demand as provided for in this
Note.

    

    9.           Delay No Waiver; No Oral
Changes.  No delay on the part of the Lender in exercising any
right or remedy under this Note or any other agreement relating to the
obligations of Borrower under the Note or failure to exercise the same shall
operate as a waiver in whole or in part of any such right or
remedy.  No amendment or waiver of any provision of this Note shall be
effective unless the same shall be in writing and signed by the Lender and the
Borrower, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    10.           Governing Law; Consent to
Jurisdiction.  This Note shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York, without
regard to principles of conflicts or choice of law (or any other law that would
make the laws of any state other than the State of New York applicable
hereto).   Borrower hereby (a) waives any defense of forum non conveniens and
irrevocably consents and agrees that any legal or equitable action or proceeding
arising under or in connection with this Note or any document or instrument
delivered with respect to this Note, may be brought in any federal or state
court in the County of New York, State of New York, (b) agrees that any
process in any action commenced in such court under this Note may be served upon
such party either (i) by certified or registered mail, return receipt requested,
or by an overnight courier service which obtains evidence of delivery, with the
same full force and effect as if personally served upon him in such county or
(ii) any other method of service permitted by law.  Notice shall be
deemed given three days after mailing and one after delivery to any overnight
courier.

    
 

    
      
        	 	
                BORROWER:

              
	 	
                PORTA
      SYSTEMS CORP.

              
	 	 
      
	 	 
      
	 	 
      
	 	
                By: 
      /s/ Edward B.
      Kornfeld                
      

              
	 	
                Edward
      B. Kornfeld

              
	 	
                Chief
      Executive Officer

              

      

      

      

      
        	
                STATE
      OF NEW YORK

              	
                )

              
	 
      	
                )
      ss.:

              
	
                COUNTY
      OF NASSAU

              	
                )

              

      

      

      On this
10th
day of March, 2009, before me, the undersigned, personally appeared Edward B.
Kornfeld, Chief Executive Officer of Porta Systems Corp., personally known to me
or proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument that he executed the same and that
by his signature on the instrument.

       

      

      
        	 	
                /s/ KEVIN
      MCHALE                      
      

              
	 	
                KEVIN MCHALE

              
	 	
                Notary Public

              
	 	
                State of New York

              
	 	
                Qualified in Nassau
  County

              
	 	
                No. 01MC6198994

              
	 	
                My commission expires Jan. 5,
      2013

              

      

    

    

    [additional
signatures on next page]

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    CONSENT AND
RATIFICATION

     

    Each of
the undersigned affiliates of Porta Systems Corp. (“Porta”) is aware of the
terms of the above attached Negotiable Promissory Note, dated as of January 1,
2009 (the “Note”), and hereby consents to the Note and guarantees the
obligations of Porta under the Note.

     

    
    

     

    
      	 	      
              ASTER
      CORPORATION

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:
      Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              CPI
      HOLDING CORP.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              CRITERION
      PLASTICS, INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              DISPLEX,
      INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              MIROR
      TELEPHONY SOFTWARE, INC.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    
      	 	      
              PORTA
      FOREIGN SALES CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS OVERSEAS CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              LERO
      INDUSTRIES LTD.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS, LIMITED

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS EXPORT CORP.

               

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS INTERNATIONAL CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	      
              PORTA
      SYSTEMS LEASING CORP.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              VANDERHOFF
      BUSINESS SYSTEMS LTD.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              VANDERHOFF
      COMMUNICATIONS LTD.

              

               

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            
	 	 
	 	 
	 	      
              PORTA
      SYSTEMS S.A. de C.V.

              

              

              By:  /s/ Edward B.
      Kornfeld

              Name:  Edward B.
      Kornfeld

              Title:

            

    

     

    
      
         

      

      
        6

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