Document:

Exhibit 10.7

 

SUPPLEMENT TO SECURITY AGREEMENT

 

Supplement (this "Supplement")
dated as of [_______ __], 2014, to the Pledge and Security Agreement dated as of May 10, 2013 (as amended, restated, supplemented
or otherwise modified from time to time, the "Security Agreement") by Inventergy, Inc., a Delaware corporation
(the "Company"), those additional entities that thereafter become parties thereto (collectively, jointly and severally,
"Grantors" and each individually "Grantor") and Hudson Bay IP Opportunities Master Fund, LP,
in its capacity as Collateral Agent for the Buyers (as defined below) (in such capacity, together with its successors, the "Collateral
Agent").

 

W I T N E S S E T H:

 

WHEREAS, capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement; and

 

WHEREAS, pursuant to
a Securities Purchase Agreement, dated as of May 10, 2013 (as amended, restated, supplemented or otherwise modified from time to
time, the "SPA"), by and among the Company and the investors listed on the Schedule of Buyers attached thereto
(together with their respective assignees and transferees, each a "Buyer" and collectively, the "Buyers"),
the Company issued notes (as amended, restated or otherwise modified from time to time, the "Notes") to the Buyers;

 

WHEREAS, in connection
with the SPA and the issuance of the Notes, the Company entered into the Security Agreement in order to induce the Buyers to make
the financial accommodations to the Company under the SPA and the Notes;

 

WHEREAS, pursuant to
an Agreement of Merger and Plan of Reorganization, dated as of December [ ], 2013 (the "Merger Agreement"), by
and among the Company, [eOn Communication Corporation]1,
a Delaware corporation ("eOn") and Inventergy Merger Sub, Inc., effective as of the Effective Time (as defined
in the Merger Agreement), the Company became a wholly-owned subsidiary of eOn;

 

WHEREAS, as a condition
to the Buyers' consent to Company's execution of the Merger Agreement, the Buyers have requested, and eOn and certain of its Subsidiaries
party hereto (each a "New Grantor" and collectively, the "New Grantors") have agreed, that the
New Grantors shall execute and deliver to the Buyers (i) a Guaranty, dated as of the date hereof (the "Guaranty"),
guaranteeing all of the obligations of the Company under the SPA, the Notes and the other "Transaction Documents" (as
defined in the SPA, and as amended, restated or otherwise modified from time to time, the "Transaction Documents")
and (ii) this supplement to the Security Agreement, pursuant to which the New Grantors shall grant to the Collateral Agent, for
the benefit of the Buyers, a security interest in and lien on their assets to secure their respective obligations under the Guaranty;

 

NOW, THEREFORE, for
and in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the New Grantor hereby agrees as follows:

 

 

 

1
Subject to name change of eOn pursuant to the Merger Agreement.

 

    	 

    	 

    

 

1.Each New Grantor,
by its signature below, shall become a "Grantor" under the Security Agreement with the same force and effect as if originally
named therein as a "Grantor" and each New Grantor hereby (a) agrees to all of the terms and provisions of the Security
Agreement applicable to it as a "Grantor" thereunder and (b) represents and warrants that the representations and warranties
made by it as a "Grantor" thereunder are true and correct on and as of the date hereof, except as set forth on Schedule
1 hereto. In furtherance of the foregoing, each New Grantor, as security for the payment and performance in full of the Obligations,
does hereby grant, assign, and pledge to Collateral Agent, for the benefit of the Buyers, a security interest in and security title
to all assets of such New Grantor including, all property of the type described in Section 2 of the Security Agreement to
secure the full and prompt payment of the Obligations, including, any interest thereon. Each reference to a "Grantor"
in the Security Agreement shall be deemed to include the New Grantor. The Security Agreement is incorporated herein by reference.

 

2.Each New Grantor
represents and warrants to the Collateral Agent and the Buyers that this Supplement has been duly executed and delivered by such
New Grantor and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except
as enforceability thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other similar
laws affecting creditors' rights generally and general principles of equity (regardless of whether such enforceability is considered
in a proceeding at law or in equity).

 

3.Notwithstanding
anything to the contrary contained in the Security Agreement, nothing contained herein or in the Security Agreement shall prevent
eOn from transferring any assets specifically contemplated to be transferred by it pursuant to the Merger Agreement, including
pursuant to the Transition Agreement (as defined in the Merger Agreement)(each such agreement as in effect on December [__], 2013
or as amended with the consent of the Collateral Agent.

 

4.This Supplement
may be executed in multiple counterparts, each of which shall be deemed to be an original, but all such separate counterparts shall
together constitute but one and the same instrument. Delivery of a counterpart hereof by facsimile transmission or by e-mail transmission
shall be as effective as delivery of a manually executed counterpart hereof.

 

5.Except as expressly
supplemented hereby, the Security Agreement shall remain in full force and effect.

 

6.This Supplement
shall be construed in accordance with and governed by the laws of the State of New York, without regard to the conflict of laws
principles thereof.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

 

 

 

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each New Grantor has duly executed this Supplement to the Security Agreement as of the day and year first above written.

 

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	EON COMMUNICATIONS ASSETS, INC.
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:LEASE PURCHASE AGREEMENT

 

This Lease Purchase
Agreement is entered into by Black Sable Energy, LLC (“Seller”) and Venado Operating Company, LLC (“Buyer”)
(Seller and Buyer are sometimes referred to collectively herein as the “Parties”) as of the 31st day of
March, 2014 (the “Effective Date”).

 

STIPULATIONS

 

		A.	Seller and Buyer each own working interests in and to the oil and gas leases described on Exhibit
“A” attached hereto and made a part hereof for all purposes (the “Leases”).

 

		B.	The rights of the Parties in and to the Leases are governed by the following (all of which are
collectively referred to herein as the “Existing Agreements”):

 

		i.	that certain Participation Agreement dated July 9, 2008 covering the Cobb
Field Prospect, Lee County, Texas, among Seller and Compass Resources Operating, LLC (“Compass”), as amended (a) August
31, 2009 by Seller, Compass, and KA Compass, LLC (“KAC”), (b) November 30, 2009 by Seller, Compass, and KAC, and (c)
March 3, 2010 by Seller, Compass, and KAC; and

 

		ii.	that certain Joint Operating Agreement governing the Shallow Prospect Area
dated July 11, 2008 among Seller and Compass Resources Operating, LLC, a memorandum of which is recorded in Volume 1043, Page 461
of the Real Property Records of Lee County, Texas; and

 

		iii.	that certain Joint Operating Agreement governing the Deep Prospect Area dated
July 11, 2008 among Seller and Compass Resources Operating, LLC, a memorandum of which is recorded in Volume 1043, Page 471 of
the Real Property Records of Lee County, Texas.

 

		C.	Seller is the owner of: (i) an undivided 50.0% of 8/8ths working interest in and to the Leases
to those depths from the surface of the earth to 100 feet beneath the stratigraphic equivalent of the Taylor Sand, as seen at 4690
feet in the Black Sable Energy LLC – Lewis Trust No. 1 Well located in the J. Shaw Survey, A-289, Cobb (Navarro) Field, Lee
County, Texas (API No. 42-287-3245); and (ii) an undivided 10.0% of 8/8ths working interest in and to the Leases as to all other
depths.

 

		D.	Buyer is the successor in interest to all of the right and obligations of Compass and KAC under
the Existing Agreements.

 

NOW, THEREFORE, for
Ten and No/100 Dollars ($10.00) and other valuable consideration, including the mutual promises and considerations described herein,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

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		1.	Sale of the Leases. Seller agrees to sell and assign exclusively unto Buyer and Buyer agrees
to buy from Seller, for delivery upon Closing and subject to a reservation of overriding royalty by Seller: (i) an undivided 50.0%
of 8/8ths working interest in and to the Leases as to those depths from the surface of the earth to 100 feet beneath the stratigraphic
equivalent of the Taylor Sand, as seen at 4690 feet in the Black Sable Energy LLC – Lewis Trust No. 1 Well located in the
J. Shaw Survey, A-289, Cobb (Navarro) Field, Lee County, Texas (API No. 42-287-3245); and (ii) an undivided 10.0% of 8/8ths working
interest in and to the Leases as to all other depths.

 

		2.	Seller’s Overriding Royalty.

 

		a.	Seller will reserve an overriding royalty interest in and to all of the oil, gas and minerals that
may be produced, saved and marketed from the Leases in an amount equal to: (i) the positive difference between twenty-three percent
(23%) and the sum of the royalty provided for in the Leases and all other outstanding royalty and overriding royalty burdens affecting
the lands covered by the Leases as of the Effective Date; or (ii) an undivided 0.50% of 8/8ths if the sum of the royalty provided
for in the Leases and all other outstanding royalty and overriding royalty burdens affecting the lands covered by the Leases is
twenty-three percent (23%) or greater as of the Effective Date.

 

		b.	The overriding royalty interest reserved by Seller: (i) will be paid and calculated in the same
manner as the lessor’s royalty provided for in the Leases; and (ii) will not be proportionately reduced to the actual interest
in the Leases if the Seller’s interest in the lands covered by the Leases covers less than the entire and undivided fee interest
in the Leases. Buyer will be granted the authority to pool Seller’s reserved overriding royalty interest in the same manner
as provided for in the Leases, and any amendments thereto.

 

		3.	Seller Warranties. Seller represents and warrants to Buyer that:

 

		a.	Seller owns unencumbered marketable title to the working interest in the Leases to be delivered
to Buyer, provided that such warranty is limited to claims by, through and under Seller, but not otherwise;

 

		b.	Seller has no actual knowledge of any existing or threatened actions or proceedings adverse to
any of the Leases;

 

		c.	Seller’s interests in the Leases are free from liens, encumbrances and burdens other than
those identified in the Existing Agreements;

 

		d.	Except for the Existing Agreements, Seller is not a party to any contracts or agreements affecting
the Leases that would affect the rights of Buyer;

 

		e.	Neither the execution or delivery of this Agreement nor the performance by Seller of Seller’s
obligations hereunder will violate or constitute a default under any law, regulation, contract, agreement, consent, decree or judicial
order by which Seller is bound;

 

    	-2-

    	 

    

 

		f.	Seller is a duly organized, validly existing legal entity, and in good standing under the laws
of its incorporation or organization, duly qualified to carry on its business in Texas; and

 

		g.	Seller has all requisite power and authority to carry on its business as presently conducted, to
enter into this Agreement, to perform its obligations under this Agreement and the consummation of the transaction contemplated
by this Agreement will not violate, or be in conflict with, any material provision of the articles of incorporation, bylaws or
other entity governance agreement of Seller.

 

		4.	Closing. Within three (3) days of the execution of this Agreement, Buyer will deliver the
sum of $450,000.00 to Seller by wire transfer or check as consideration for the Seller’s interest in the Leases and termination
of the Existing Agreements. Upon Buyer’s tender of the above payment, Seller will promptly (and in any event no more than
two (2) days after its receipt of payment), deliver an assignment of the Leases dated effective March 31, 2014 to Buyer in substantially
the same form as the assignment attached hereto as Exhibit “B” and made a part hereof for all purposes.

 

		5.	Termination of Existing Agreements. Upon the consummation of the transaction contemplated
in this Agreement, the Existing Agreements will terminate and be null, void and of no force and effect. In addition, Seller expressly
releases Buyer from any obligations under the Existing Agreements to (i) pay a fraction of Seller’s costs associated with
the DPA Test Well (as defined in the Existing Agreements), or (ii) reassign any interest in the Leases arising out of the failure
of Compass or KAC to drill the DPA Test Well, and any such obligations are extinguished.

 

		6.	Governing Law. This Agreement shall be governed by and interpreted in accordance with the
laws of the State of Texas.

 

		7.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

 

		8.	Severability Clause. If any provision of this Agreement shall be held invalid, illegal,
unenforceable or in conflict with the law of any jurisdiction, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

 

		9.	Merger Clause. This Agreement constitutes the entire understanding of the parties with respect
to the subject matter hereof, superseding all negotiations, prior discussions, and prior agreements and understandings relating
to such subject matter. This Agreement may only be amended by a subsequent writing executed by both parties.

 

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		10.	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall
be considered an original for all purposes. Any signature hereto delivered by a party by facsimile transmission shall be deemed
an original signature hereto.

 

This Agreement is
executed to be effective as of the date above. 

 

	 	Black Sable Energy, LLC
	 	 	 
	 		 
	 	By:	Robert G. Watson, Jr.
	 	Its:	President
	 	 	 
	 	 	 
	 	 	 
	 	Venado Operating Company, LLC
	 	 	 
	 	 	 
	 	By:	Joe D. Sullivan, Jr.
	 	Its:	Vice President - Land

  

    	-4-

    	 

    

 

 

Exhibit “A”

 

[Insert Description of the Leases]

 

 

 

 

 

 

 

 

 

 

 

    	-5-

    	 

    

 

Exhibit “B”

 

[Insert Partial Assignment of Oil, Gas
and Mineral Leases

With Reservation of Overriding Royalty]

 

 

 

 

 

 

 

 

    	-6-

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