Document:

Amended and Restated Employment Agreement

 Exhibit 10.2 
 SECOND RENEWAL, AMENDMENT AND RESTATEMENT 
 OF 
 EMPLOYMENT AGREEMENT 
 THIS SECOND RENEWAL, AMENDMENT AND RESTATEMENT OF
EMPLOYMENT AGREEMENT (the “Agreement”), made as of this 1st day of March, 2006, is entered into by Bio-Imaging Technologies, Inc., a Delaware corporation with its principal place of business at 826 Newtown-Yardley Road, Newtown,
Pennsylvania 18940 (the “Company”), and Mark L. Weinstein (the “Employee”). 
 The Company desires to employ the
Employee, and the Employee desires to be employed by the Company. In consideration of the mutual covenants and promises contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties to this Agreement, the parties agree as follows: 
 1. Term of Employment. The Company hereby agrees to
employ the Employee, and the Employee hereby accepts employment with the Company, upon the terms set forth in this Agreement, for the period commencing on March 1, 2006 (the “Commencement Date”) and ending on February 28, 2009
(such period, as it may be extended, the “Employment Period”), unless sooner terminated in accordance with the provisions of Section 4. 
 2. Title; Capacity. The Employee shall serve as President and Chief Executive Officer or in such other reasonably comparable position as the Company or its Board may determine from time to time. The Employee
shall be based at the Company’s headquarters in Newtown, Pennsylvania, or such place or places in the continental United States as the Board shall determine. The Employee shall be subject to the supervision of, and shall have such authority as
is delegated to the Employee by, the Board or such officer of the Company as may be designated by the Board. 
 The Employee hereby accepts
such employment and agrees to undertake the duties and responsibilities inherent in such position and such other duties and responsibilities as the Board or its designee shall from time to time reasonably assign to the Employee. The Employee agrees
to devote his entire business time, attention and energies to the business and interests of the Company during the Employment Period. The Employee agrees to abide by the rules, regulations, instructions, personnel practices and policies of the
Company and any changes therein which may be adopted from time to time by the Company. The Employee further agrees to abide by the applicable rules, practices, policies, restrictions and principles outlined by the Board in its’ Corporate Policy
Governance Manual and amendments adopted thereto. 
 3. Compensation and Benefits. 
 3.1 Salary. The Company shall pay the Employee, in periodic installments in accordance with the Company’s customary payroll practices, an
annual base salary of $305,000 for the one-year period commencing on the Commencement Date. Such salary may be subject to cost of living or other increases thereafter as determined by the Board. 

 3.2 Fringe Benefits. The Employee shall be entitled to participate in all bonus and benefit
programs that the Company establishes and makes available to its employees, if any, to the extent that Employee’s position, tenure, salary, age, health and other qualifications make him eligible to participate, including, but not limited to, a
car allowance not to exceed $750 per month. The Employee shall be entitled to four (4) weeks paid vacation per year, to be taken at such times as may be approved by the Board or its designee. 
 3.3 Reimbursement of Expenses. The Company shall reimburse the Employee for all reasonable travel, entertainment and other expenses incurred or
paid by the Employee in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement, in accordance with policies and procedures, and subject to limitations, adopted by the Company or the Board
from time to time. 
 3.4 Bonuses; Incentive Compensation. 
 (a) The Employee shall be eligible to receive, at the sole discretion of the Board, an annual bonus (the “MIP Bonus”) up to a maximum amount
equal to 50% of the Employee’s annual base salary upon the achievement of certain milestones as set forth in an annual Management Incentive Plan, to be mutually agreed upon and attached hereto upon Board approval (the “Management Incentive
Plan”). The specific annual milestones will be set each year by the Board following consultation with the Employee. Notwithstanding the foregoing, unless otherwise waived by the Board, the Employee shall not be eligible to receive the MIP Bonus
if the Company has not achieved pre-tax earnings for that applicable fiscal year. 
 (b) In addition to Section 3.4(a) above, for each
fiscal year during the Employment Period, the Employee may be entitled to receive an equity bonus in the form of up to 25,000 shares of the Company’s common stock per year (the “Stock Award”). The Board, in its sole discretion, may
adjust the Stock Award upward or downward based upon the results of the Management Incentive Plan. The Employee shall earn the Stock Award provided only if: (i) the Employee remains in the Company’s employ through the close of that fiscal
year; and (ii) the financial and non-financial milestones and targets set forth in the Management Incentive Plan in effect for that fiscal year are attained (unless such provision is otherwise waived by the Board in its sole discretion). The
shares earned for any such fiscal year shall be issued to the Employee within three (3) business days following the Company’s release of the financial results for that year (but in all events within two and one-half months following the
close of that year), subject to the Company’s collection of the applicable withholding taxes; provided, however, that should not be administratively possible, by reason of unforeseeable events, to effect the payment within such two and one-half
month period, the payment shall be made as soon thereafter as administratively practicable. Such tax withholding shall be effected by the Company’s withholding, from the shares otherwise issuable to the Employee at that time, that number of
shares with a then current fair market value equal to the Company’s minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to supplemental taxable income, and accordingly only the
number of shares of the Company’s common stock, net of such withholding, shall be issued to the Employee. In no event shall the Employee accrue any right or entitlement to the share bonus for any fiscal year unless and until both the foregoing
service and performance requirements for that year are in fact attained. 
  

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 (c) The number of shares of the Company’s common stock to which the Employee may become entitled
pursuant to Paragraph 3(b) shall be appropriately adjusted in the event of any stock split, stock dividend, combination or exchange of shares, recapitalization or other similar transaction affecting the outstanding shares of the Company’s
common stock without the Company’s receipt of consideration. 
 (d) Notwithstanding any other provision in this Agreement, the Employee
shall receive a cash bonus of $65,000 to be paid upon execution of this Agreement. 
 3.5 Rabbi Trust. During each year of the
Employment Period, the Employee may elect to defer up to 100% of any amounts received pursuant to the Management Incentive Plan into a non-qualified deferral plan, commonly known as a “Rabbi Trust”, created for the benefit of the Employee.
Each such election shall be effective only if made in compliance with the applicable deferral election requirements of Section 409A of the Internal Revenue Code, as amended (the “Code”). 
 3.6 Withholding. All salary, bonus and other compensation payable to the Employee shall be subject to applicable withholding taxes. 
 4. Termination of Employment Period. The employment of the Employee by the Company pursuant to this Agreement shall terminate upon the occurrence
of any of the following: 
 4.1 Expiration of the Employment Period; 
 4.2 At the election of the Company, for Cause (as defined below), immediately upon written notice by the Company to the Employee, which notice shall
identify the Cause upon which the termination is based. For the purposes of this Section 4.2, “Cause” shall mean (a) a good faith finding by the Company that (i) the Employee has repeatedly failed to perform his assigned
duties for the Company, or (ii) the Employee has engaged in dishonesty, gross negligence or misconduct, or (b) the conviction of the Employee of, or the entry of a pleading of guilty or nolo contendere by the Employee to, any crime
involving moral turpitude or any felony; 
 4.3 At the election of the Employee, for Good Reason (as defined below), immediately upon written
notice by the Employee to the Company, which notice shall identify the Good Reason upon which the termination is based. For the purposes of this Section 4.3, “Good Reason” for termination shall mean (i) a material adverse change
in the Employee’s authority, duties or compensation without the prior written consent of the Employee (provided that neither the hiring of a chief operating officer nor the hiring of a chief financial officer by the Company and the
relinquishment of such title and associated duties by the Employee shall constitute Good Reason hereunder), (ii) a material breach by the Company of the terms of this Agreement, which breach is not remedied by the Company within 10 days
following written notice from the Employee to the Company notifying it of such breach or (iii) the relocation of the Employee’s place of work more than 50 miles from the Company’s current executive offices. 
 4.4 Upon the death or disability of the Employee. As used in this Agreement, the term “disability” shall mean the inability of the Employee,
due to a physical or mental 

  

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disability, for a period of 90 days, whether or not consecutive, during any 360-day period, to perform the services contemplated under this Agreement, with
or without reasonable accommodation as that term is defined under state or federal law. A determination of disability shall be made by a physician satisfactory to both the Employee and the Company; provided, that, if the Employee and
the Company do not agree on a physician, the Employee and the Company shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties; 
 4.5 At the election of either party, upon not less than 180 days’ prior written notice of termination. 
 5. Effect of Termination. 
 5.1
At-Will Employment. If the Employment Period expires pursuant to Section 1 hereof, then, unless the Company notifies the Employee to the contrary, the Employee shall continue his employment on an at-will basis following the expiration of
the Employment Period. Such at-will employment relationship may be terminated by either party at any time and shall not be governed by the terms of this Agreement. 
 5.2 Payments Upon Termination. 
 (a) In the event the Employee’s employment is terminated
pursuant to Section 4.1, Section 4.2, Section 4.4 or by the Employee pursuant to Section 4.5, the Company shall pay to the Employee the compensation and benefits otherwise payable to him under Section 3 through the last day
of his actual employment by the Company. 
 (b) In the event the Employee’s employment is terminated by the Employee pursuant to
Section 4.3 or by the Company pursuant to Section 4.5, then the following provisions shall apply: 
 (i) The Company shall continue
to pay to the Employee his salary as in effect on the date of such termination for a period of 120 days following the date of such termination. 
 (ii) The Company shall pay, in a series of four equal monthly installments, beginning one month after such termination date (subject to any required deferral under subparagraph (v) below), an amount equal in the aggregate to the annual
bonus paid to him for the fiscal year immediately prior to the fiscal year in which his termination date occurs. 
 (iii) Should the
Employee elect under Code Section 4980B to continue health care coverage under the Company’s group health plan for himself, his spouse and his eligible dependents following such termination date, then the Company shall provide such
continued health care coverage at the Company’s expense until the earlier of (i) the expiration of the 120-day period measured from the date of such termination date or (ii) the first date the Employee is covered under another
employer’s heath benefit program which provides substantially the same level of benefits without exclusion for pre-existing medical conditions. Should the Company’s provision of such continued health care coverage result in the recognition
of taxable income (whether for federal, state or local income tax purposes) by the Employee or his spouse or other eligible dependent, then the Employee and his spouse and dependents shall 

  

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each be responsible for the payment of the income and employment tax liability resulting from such coverage, and the Company will not provide any tax
gross-up payments to the Employee (or any other person) with respect to such income and employment tax liability. 
 (iv) The Company shall
make a lump sum cash payment, not to exceed $5,000, to cover the cost of any other benefits to which the Employee would have been entitled under Section 3.2 of this Agreement had he continued in employment for an additional 120 days following
such termination date. Such payment shall be made to the Employee on the date of his termination or as soon thereafter as administratively practicable, but in no event later than the close of the calendar year in which such termination occurs or (if
later) the 15th day of the third calendar month following such termination date. 
 (v) Notwithstanding any provision to the contrary in
this Agreement, no payments or benefits to which the Employee may become entitled under this Section 5.2(b) shall be made or provided to him prior to the earlier of (i) the expiration of the six (6)-month period measured from
the date of his “separation from service” with the Company (as determined in accordance with the provisions of Code Section 409A and the proposed or final Treasury Regulations thereunder) or (ii) the date of his death, if the
Employee is are deemed at the time of such separation from service to be a “key employee” within the meaning of that term under Code Section 416(i) and such delayed commencement is otherwise required in order to avoid a prohibited
distribution under Code Section 409A(a)(2). Upon the expiration of the applicable Code Section 409A(a)(2) deferral period, all payments and benefits deferred pursuant to this subparagraph (v) (whether they would have otherwise been
payable in a single sum or in installments in the absence of such deferral) shall be paid or reimbursed to the Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the
normal payment dates specified for them herein. 
 The payment to the Employee of the amounts payable under this Section 5.2(b) shall
constitute the sole remedy of the Employee in the event of a termination of the Employee’s employment in the circumstances set forth in this Section 5.2(b). The Employee shall not be entitled to any payments under this Section 5.2(b)
unless and until the Employee executes a general release and waiver in a form satisfactory to the Board. 
 5.3 Survival. The
provisions of Sections 5.2(b) and 6 shall survive the termination of this Agreement. 
 6. Non-Competition and Non-Solicitation.
The Employee affirms that the form of Invention Assignment and Confidential Information Agreement and form of Non-Competition and Non-Solicitation Agreement, substantially in the form attached hereto as Exhibit A and Exhibit B,
respectively, remain in full force and effect as of the dated hereof. 
 7. Other Agreements. 
 7.1 Prior Agreements. The Employee represents that his performance of all the terms of this Agreement and the performance of his duties as an
employee of the Company do not and will not breach any agreement with any prior employer or other party to which the Employee is a party (including without limitation any nondisclosure or non-competition agreement). Any agreement to which the
Employee is a party relating to nondisclosure, non-competition or non-solicitation of employees or customers is listed on Schedule B attached hereto. 
  

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 7.2 Executive Retention Agreement. Upon execution of this Agreement, the Company and the Employee
shall enter into the Executive Retention Agreement attached hereto as Exhibit C; provided, however, that if the Employee is terminated for any reason, and such termination triggers a payment (including benefits) to the Employee
pursuant to the Executive Retention Agreement, then the Employee shall receive payments (including benefits) solely pursuant to the Executive Retention Agreement and not pursuant to this Agreement. 
 8. Miscellaneous. 
 8.1
Notices. Any notices delivered under this Agreement shall be deemed duly delivered four business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for
next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth in the introductory paragraph hereto. Either party may change the address to which notices are to be delivered by
giving notice of such change to the other party in the manner set forth in this Section 8.1. 
 8.2 Pronouns. Whenever the
context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. 
 8.3 Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings,
whether written or oral, relating to the subject matter of this Agreement. 
 8.4 Amendment. This Agreement may be amended or modified
only by a written instrument executed by both the Company and the Employee. 
 8.5 Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Pennsylvania (without reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to any provision of this Agreement
shall be commenced only in a court of the Commonwealth of Pennsylvania (or, if appropriate, a federal court located within Pennsylvania), and the Company and the Employee each consents to the jurisdiction of such a court. The Company and the
Employee each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision of this Agreement. 
 8.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and
assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business; provided, however, that the obligations of the Employee are personal and shall not
be assigned by him. Notwithstanding the foregoing, if the Company is merged with or into a third party which is engaged in multiple lines of business, or if a third party engaged in multiple lines of business succeeds to the Company’s assets or
business, then 

  

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for purposes of this Agreement, the term “Company” shall mean and refer to the business of the Company as it existed immediately prior to such
event and as it subsequently develops and not to the third party’s other businesses. 
 8.7 Waivers. No delay or omission by the
Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion. 
 8.8 Captions. The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of any section of this Agreement. 
 8.9 Severability. In
case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 
  

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 THE EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT, HAS HAD A FULL OPPORTUNITY TO REVIEW
THIS AGREEMENT AND CONSULT WITH COUNSEL AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT. 
 IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year set forth above. 
  

			
	BIO-IMAGING TECHNOLOGIES, INC.
		
	By:	 	 /s/ David E. Nowicki

	Name:	 	David E. Nowicki
	Title:	 	Chairman of the Board
	
	EMPLOYEE
	
	 /s/ Mark L. Weinstein

	Mark L. Weinstein

 [Signature Page to Renewal, Amendment and Restatement of Employment Agreement] 

 SCHEDULE A 
 Management Incentive Plan 

 SCHEDULE B 
 Prior Agreements 
 None. 

 EXHIBIT A 
 Invention Assignment and Confidential Information Agreement 

 EXHIBIT B 
 Non-Competition and Non-Solicitation Agreement 

 EXHIBIT C 
 Executive Retention AgreementCastle Creek Settlement Agreement

 Exhibit 10.98 
 SETTLEMENT AGREEMENT 
 This Settlement Agreement is entered into on February 10, 2006 between
Castle Creek Technology Partners LLC (“CC”) and Path 1 Network Technologies Inc. (“Path 1”). CC holds 492,307 shares of Path 1’s Series B 7% Convertible Preferred Stock (“Series B Preferred
Stock”) and 246,154 Path 1 common stock warrants, acquired pursuant to a Securities Purchase Agreement dated April 26, 2005 among Path 1, CC and others (the “Purchase Agreement”). This Settlement Agreement relates to
Path 1’s December 6, 2005 financing transactions (the “Transactions”) with Laurus Master Fund Ltd. (“Laurus”), pursuant to which Path 1 issued to Laurus (i) a Secured Convertible Note in the
principal amount of $2,100,000 (the “Laurus Note”), which Note is convertible into shares of Common Stock at a fixed conversion price equal to $2.6316, and (ii) Warrants for the purchase of shares of Common Stock (the
“Laurus Warrants”), which Warrants have an exercise price equal to $2.89 per share. Under the Laurus Note Path 1 must, in certain circumstances, make scheduled payments of principal and interest in shares of Common Stock. Any shares
of Common Stock that may in the future be issued by Path 1 to Laurus or Laurus’ assignees (i) upon conversion of the Laurus Note and (ii) as payment of principal or interest then due with respect to the Laurus Note are collectively
referred to herein as the “Laurus Shares”, and together with any shares of Common Stock that may in the future be issued by Path 1 to Laurus or Laurus’ assignees upon exercise of the Laurus Warrants (the “Laurus Warrant
Shares”), the Laurus Note and the Laurus Warrants, the “Laurus Securities”. On January 13, 2006, CC filed a lawsuit (Castle Creek Technology Partners LLC vs. Path 1 Network Technologies Inc., No. 06 CH 00891 (Cook
County, Illinois, Circuit Court, Chancery Division) against Path 1 (the “Lawsuit”). 
 1. CC, on its own behalf and as the
holder of a majority of Path 1’s outstanding Series B Preferred Stock and as the holder of a majority in interest of the outstanding Registrable Securities (on an as-converted/as-exercised basis, as defined in the Purchase Agreement), hereby

 (a) Consents under Section 10 of Path 1’s Series B Preferred Stock’s certificate of designations (the
“Certificate”) to the consummation of the Transactions and the issuance of the Laurus Securities (including, without limitation, any Laurus Shares and Laurus Warrant Shares issued in the future). It is understood that, if and to the
extent the consummation of the Transactions and the issuance of the Laurus Securities require the consent of a majority of the Series B Preferred Stock pursuant to the Certificate, this Settlement Agreement shall constitute such consent. This
consent is subject to Section 4(a) below. 
 (b) Waives, pursuant to Section 8.3 of the Purchase Agreement any application of
Section 3.7 of the Purchase Agreement to the Transactions and to the issuance of the Laurus Securities (including, without limitation, any Laurus Shares and Laurus Warrant Shares issued in the future). It is understood that, if and to the
extent the consummation of the Transactions and the issuance of the Laurus Securities require the consent of a majority in interest of the outstanding Registrable Securities (on an as-converted/as-exercised basis, as defined in the Purchase
Agreement) pursuant to the Purchase Agreement, this Settlement Agreement shall constitute such consent. This waiver is subject to Section 4(a) below. 
 (c) Waives and renounces any antidilution adjustments to which CC (or CC’s assignees) may be entitled pursuant to CC’s Series B Preferred Stock and related warrants (“Preferred Securities”)
to the extent (and only to the extent) that such antidilution adjustments are or may in the future be triggered by any of: 
 (i) the consummation of the Transactions and the issuance of the Laurus Securities (including, without limitation, any Laurus Shares and Laurus Warrant Shares issued in the future); 
 (ii) the extension of the new rights described herein to any of the other holders of Preferred Securities; 
 (iii) the issuance of any new Path 1 securities to any of the other holders of Preferred Securities pursuant to the terms and conditions
hereof; and 

 (iv) the potential or actual issuance of any new Path 1 securities to any holders of
other Path 1 derivative securities by virtue of any antidilution adjustments occurring as a result of (i), (ii) or (iii) above. 
 This waiver and renunciation are subject to Section 4(a) below. Moreover, in the event that a material amendment, modification or supplement is made in or to a contract with or for the benefit of Laurus (or its assignees) relating to
the Transactions, without CC’s prior written consent, then this antidilution waiver shall not apply from and after the time of such material amendment, modification or supplement with regard to any issuance above and beyond issuances that would
have been called for by the Transactions documents as they stood immediately before such material amendment, modification or supplement. 
 2. Path 1 agrees that Path 1 shall no later than March 1, 2006 pay, and thereafter, so long as CC continues to hold any Series B Preferred Stock, shall pay on each July 27 and January 27 an amount equal to all then-accrued
dividends on the Series B Preferred Stock held by CC on such respective dates. Such payments are settlement payments and are not in fact dividends; however, CC hereby waives, effective upon each such payment by Path 1, all dividends accrued on
CC’s Series B Preferred Stock to an extent equal to the amount of such respective payment. Such payments, or any such payment, shall be paid in cash, or, if Path 1 so elects, in common stock. If Path 1 elects to pay in the form of common stock,
the amount of common stock shall be calculated using the same method as is called for by the provisions set forth in the Certificate for calculating the number of shares of common stock to be included in a Series B Preferred Stock dividend paid in
the form of common stock. In the event that any of the foregoing actions require board or stockholder approval, Path 1 shall, at its sole cost and expense, use its best efforts to obtain all such approvals as promptly as practicable. 
 3. Path 1 shall 
 (a) unless and until the
Certificate is amended to reduce the Conversion Price of the Series B Preferred Stock to $2.6316 or lower, or until by operation of the Certificate as it stands the Conversion Price is reduced to $2.6316 or lower, treat (as to CC) the Conversion
Price as being $2.6316 in the following manner: when and if CC converts any of its Series B Preferred Stock in accordance with the Certificate), then, if (i) the number of new shares of Path 1 Common Stock issued in such conversion is
less than (ii) the number of new shares of Path 1 Common Stock which would have been issued to CC upon conversion of the same number of shares of Series B Preferred Stock if the Conversion Price in the Certificate were $2.6316, then Path 1
shall promptly also issue to CC that exact number of new shares of Path 1 Common Stock that equals the difference between (i) above and (ii) above (all subject to adjustments for any stock splits, reverse stock splits, stock dividends on
or recapitalizations of the Series B Preferred Stock). 
 (b) promptly notify CC in writing of each issuance of Laurus Shares, specifying the
quantity and the price-per-share, as further described in the following paragraph. If, at any time within 20 calendar days following receipt by CC of written notice (the “Notice”) from Path 1 that any Laurus Shares have been issued
in such issuance at a price per share (the “Laurus Price”) that is, at the time of such issuance, below the Conversion Price then in effect with respect to CC’s Series B Preferred Stock (including any deemed Conversion Price
under Section 3(a) above), CC converts its Series B Preferred Stock in one transaction or a series of related transactions (the official date of such conversion to be determined in accordance with the Certificate), then, to the extent
that the quotient of (a) the product of (i) the number of shares of Path 1 Common Stock issued to CC upon such conversion (the “Purchaser Amount”) and (ii) the Conversion Price then in effect (including any deemed
Conversion Price under Section 3(a) above), (such product, the “Purchaser Principal”), divided by (b) the product of (A) the number of Laurus Shares so issued, (B) the Laurus Price, and (C) CC’s Pro
Rata Share, is less than or equal to 1.5, Path 1 shall promptly issue to CC that exact number of new shares of Path 1 Common Stock that equals the difference between (x) the quotient of (i) the Purchaser Principal divided by the
(ii) the Laurus Price, and (y) the Purchaser Amount. CC’s “Pro Rata Share” is the quotient of CC’s number of shares as of the date hereof of Series B Preferred Stock divided by 

  

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792,306. To the extent both Section 3(a) and Section 3(b) are applicable to a conversion, Section 3(a) shall be applied first and then
Section 3(b) shall be applied. 
 4. (a) CC agrees to forthwith dismiss the Lawsuit without prejudice, and furthermore agrees and
covenants not to refile in any court the Lawsuit, nor to file any litigation which includes any Lawsuit Claims (as defined below), unless CC has first revoked prospectively this Settlement Agreement. CC shall be entitled to revoke prospectively this
Settlement Agreement if and only if (i) Path 1 breaches any of its obligations under this Settlement Agreement before February 10, 2008, and (ii) CC gives notice to Path 1 before February 10, 2008 of its election to revoke
prospectively this Settlement Agreement. The parties agree that, if CC so revokes prospectively this Settlement Agreement, if CC then refiles the Lawsuit or files any litigation involving Lawsuit Claims, then for the purposes of that litigation (as
between CC and Path 1) the consent, waiver, and waiver and renunciation given by CC in Section 1(a), 1(b) and 1(c), respectively, of this Settlement Agreement shall be disregarded and treated as if they had not been given. 
 (b) Effective February 10, 2008, if but only if CC has not previously revoked prospectively this Settlement Agreement pursuant to Section 4(a),
(i) CC agrees never under any circumstance to refile in any court the Lawsuit, nor file any litigation which includes any Lawsuit Claims (as defined below), and (ii) CC releases Path 1 and its officers, directors, employees, agents,
attorneys, stockholders, lenders, affiliates, insurers, successors and assigns, from all causes of action, lawsuits, claims, demands, charges, liabilities or complaints of whatever kind, present or future, known or unknown, which arise out of or in
any way relate to the conduct, omissions, events or transactions alleged in (or related to the conduct, omissions, events or transactions alleged in) the Lawsuit (the “Lawsuit Claims”). CC acknowledges that it may hereafter discover
facts different from, or in addition to, those which it now knows or believes to be true with respect to all or any of the Lawsuit Claims. Nevertheless, CC agrees that the release set forth herein shall (as of such time and subject to such
condition) be and remain effective in all respects, notwithstanding the discovery of such additional or different facts. 
 (c) Each party
shall bear its own expenses in connection with the Lawsuit and in connection with this Settlement Agreement, except as set forth in the final sentence of this subsection. The Circuit Court of Cook County, Illinois shall retain jurisdiction for the
purpose of adjudicating any dispute regarding, and enforcing the terms of, this Settlement Agreement. The parties agree that if either of them breaches the terms of this Settlement Agreement, the other party would be irreparably injured, and in the
event of such breach the other party shall be entitled to temporary, preliminary and permanent injunctive relief, specific performance and other equitable remedies, in addition to any and all remedies at law for such breach (unless CC has revoked
prospectively this Settlement Agreement pursuant to Section 4(a) above, in which case CC shall be entitled to no remedies for such breach other than the right to prospectively revoke). The parties agree that in the event of any litigation
arising from, based upon or to interpret the provisions of this Settlement Agreement, the prevailing party shall be entitled to recover its litigation attorneys fees, costs and expenses, from the other party, in addition to any and all other relief
to which it may be entitled. 
 (d) CC represents that it has not previously assigned, and covenants that it never will assign, any Lawsuit
Claims to anybody. 
 5. This Settlement Agreement shall be governed by and construed in accordance with California law. This Agreement
cannot be amended, terminated or waived except in a writing signed by both parties. Each party represents and warrants that no promise, inducement or agreement not expressed herein has been made to it in connection with this Settlement Agreement.
This Settlement Agreement contains the entire agreement between the parties with respect to the subject matter of the Lawsuit and the Lawsuit Claims and supersedes any previous agreement between the parties to the extent, and only to the extent,
that this Settlement Agreement conflicts with or modifies any such previous agreement. In every other respect, the parties’ previous agreements, including but not limited to, the Purchase Agreement and the Certificate, remain in full force and
effect. 
  

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 6. Each respective other holder of Series B Preferred Stock is, to the extent set forth in this
Section 6, a direct and intended third-party beneficiary of this Settlement Agreement. Each respective other holder of Series B Preferred Stock is entitled, as a third-party beneficiary of this Settlement Agreement, to receive all the same
benefits of CC under this Settlement Agreement (other than under Section 7), as if the references to CC in this Settlement Agreement were references to such holder, by sending a written notice to Path 1 that it wishes to receive the same
benefits as CC (other than under Section 7) and be subject to the same burdens as CC as set forth in this Settlement Agreement, as if the references to CC in this Settlement Agreement were references to such holder. However, even if a holder
does not do so, its rights can nonetheless be affected by waivers and consents given by CC herein in its capacity as a majority holder. 
 7.
Path 1 and CC hereby establish the following special contractual rule applicable only to an amendment, modification or supplement to be made in or to a contract with or for the benefit of Laurus (or its assignees) relating to the Transactions: the
Company agrees not to enter into any such amendment, modification or supplement with or for the benefit of Laurus (or its assignees) relating to the Transactions, without the prior written consent of CC (so long as CC continues to hold a majority in
interest of the then-outstanding Series B Preferred Stock). CC agrees not to unreasonably withhold its prior written consent to any such amendment, modification or supplement with or for the benefit of Laurus (or its assignees) relating to the
Transactions. 
 8. The parties disagree as to whether issuance of the Laurus Securities, and particularly the Laurus Note, in the
Transactions required consent of a majority of Path 1’s outstanding Series B Preferred Stock pursuant to Section 10(iii) of the Certificate. The parties desire to compromise now as to such disagreement as to the Transactions, while each
reserving their rights and respective interpretations under the Certificate should any similar situation ever recur. This Settlement Agreement will not for any purpose be deemed an admission by either party; provided, however, CC agrees that for the
purpose of determining whether the Stock Payment Condition as defined in the Certificate (and in Path 1’s 7% Convertible Preferred Stock certificate of designations) has been met, the Transactions shall be deemed not to have resulted in a
Fundamental Change (as defined therein). 
 9. This Settlement Agreement shall be binding upon, and inure to the benefit of, the parties
hereto, their assigns, heirs, predecessors and successors. 
 10. This Settlement Agreement and all provisions hereof, including all
representations and warranties contained herein, are contractual and not a mere recital and shall survive the termination of the agreement, and shall continue in full force and effect thereafter. 
 11. This Settlement Agreement may be executed in counterparts. 
  

					
	 PATH 1 NETWORK TECHNOLOGIES INC.

		
	 By: 
	 	  
		 	 Tom Tullie

		 	 Chief Executive Officer

	
	 CASTLE CREEK TECHNOLOGY PARTNERS LLC

		
	 By: 
	 	 Castle Creek Partners, LLC,
 Investment Manager

			
		 	 By: 
	 	  

  

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