EXHIBIT 10.7 Telynx, Inc. 6006 North Mesa El Paso, Texas 79912 Tel. No.: (915) 581-5828 Fax No.: (915) 581-7721 October 4, 2001 The Investors Named Below: Dear Sir/Madam: Reference is made to the Subscription Agreement by and between Telynx, Inc. (the "Company") and The Keshet Fund, L.P., Keshet, L.P., Nesher, Ltd., Talbiya B. Investments Ltd. and Esquire Trade & Finance, Inc., and as amended to include Laurus Master Fund, Ltd. (the "Investors"), dated as of July 27, 2000 (the "Equity Line Agreement"). Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Equity Line Agreement. As you are aware, the Company is in the process of filing a registration statement for the Investors. As you are also aware, the Securities and Exchange Commission will not allow the Company to register shares of common stock which the Investors may purchase in the future pursuant to the Equity Line Agreement. Accordingly, the Company hereby terminates the Equity Line Agreement. Please sign the enclosed copies of this letter and return them to us. Very truly yours, TELYNX, INC. By: /s/ Kent Van Houten ------------------- Name: Kent Van Houten Title: Chief Financial Officer Accepted and Agreed: THE KESHET FUND, L.P. By: /s/ JOHN CLARKE --------------------------- Name: John Clarke Title: Authorized Signatory KESHET, L.P. By: /s/ JOHN CLARKE --------------------------- Name: John Clarke Title: Authorized Signatory NESHER, LTD. By: /s/ JOHN CLARKE --------------------------- Name: John Clarke Title: Director TALBIYA B. INVESTMENTS LTD. By: /s/ JOHN CLARKE --------------------------- Name: John Clarke Title: Director ESQUIRE TRADE & FINANCE, INC. By: /s/ GISELLA KINDLE --------------------------- Name: Gisella Kindle Title: Director LAURUS MASTER FUND, LTD. By: /s/ DAVID GRIN --------------------------- Name: David Grin Title: Director