Document:

Exhibit
      10.21

    

    

    

    

    

    December
      21, 2007

    

    John
      Barry IV, President/ CEO 

    Bonds.com
      Holdings, Inc.

    1515
      South Federal Highway, Suite 212A

    Boca
      Raton, Florida 33432

    

    Re: After
      Market Support, LLC Consulting Agreement

    

    Dear
      Mr.
      Barry:

    

    After
      Market Support, LLC, a Delaware limited liability company (“AMS”) is engaged in
      the business of providing comprehensive investor relations services designed
      specifically for micro-cap and small-cap public companies, offering a strategic
      path to a NASDAQ Capital Market listing. Bonds.com Holdings, Inc. desires to
      engage AMS as its exclusive investor relations consultant.  This letter
      agreement (the “Agreement”) will confirm our prior conversations, negotiations
      and agreement regarding the Services (as that term is defined in Section 1
      below) to be performed by AMS as the exclusive investor relations consultant
      to
      Bonds.com Holdings, Inc. and its subsidiaries, affiliates and controlled persons
      (collectively, the “Company”) and the Company’s duties and obligations to
      AMS.  This Agreement shall become effective upon its execution by both AMS
      and the Company.
      AMS and
      the Company are sometimes individually referred to as a “Party” and collectively
      as the “Parties”).

    

    I. 
      Performance of the Services.   
      AMS covenants and agrees to execute the strategic and tactical plans,
      objectives, the third party marketing plan (the “Partner Marketing Plan”) and
      underlying services set forth on Exhibit A annexed hereto and hereby
      incorporated herein by reference (collectively the “Services”). In doing so, AMS
      shall make itself available to consult with the Board of Directors and the
      officers, senior managers, representatives and agents of the Company at
      reasonable times during normal business hours, concerning matters pertaining
      to
      the Company’s investor relations and aftermarket support plans and programs
      (“Program”).  The primary objectives of the Program will be to: (i) achieve
      recognition of the Company with the financial community, investors and the
      public as an emerging company in the online brokerage fixed income
      marketplace; (ii)
      recommend strategies to enhance shareholder value; (iii) increase retail and
      institutional interest in the Company’s common stock, its only class of trading
      securities; and (iv) achieve a listing upgrade to the NASDAQ Capital
      Market.

     

    
      
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    II. Performance
      by the Company.
      Pursuant to the terms of this Agreement, the Company hereby covenants and agrees
      to follow the strategic and tactical parameters of the Program and to cooperate,
      aid and assist AMS in its performance of the Services. 

    

    III. Term
      and Termination.
      The
      term
      of this Agreement shall commence upon its execution by
      both
      AMS and the Company and shall continue for a period of twelve (12) months,
      or
      such longer period
      as
      mutually agreed to by the Parties in writing ("Term");
      notwithstanding the foregoing, the Term shall end on the date which is six
      (6)
      months following the date hereof in the event that the Company provides notice
      to AMS that is not reasonably satisfied with the services provided herein and
      AMS fails to resolve such situation to the reasonably satisfaction of the
      Company. This Agreement shall be terminable by either Party on 30 days prior
      written notice. In the event of termination, all fees due to AMS shall be paid
      its Monthly Fee (as that term is defined in Section IV below) through the date
      of the termination notice.

    

    IV. AMS’s
      Compensation and Payment.
      As its
      total compensation for the Services to be rendered by AMS under this Agreement,
      the Company agrees to compensate AMS in cash as follows: 

    

    A. Cash.
      During
      the Term of this Agreement, the Company covenants and agrees to pay to AMS
      a fee
      of $10,000 per month commencing January 1, 2007 (the “Monthly Fee”). Payments
      shall be made in advance on the first day of each month against invoices
      submitted by AMS. All Monthly Fee payments which have not been received by
      AMS
      within 10 days of the due dates, as set out on the monthly invoices, are subject
      to interest at the rate of 2% per month (or such lesser rate as may be required
      by applicable law). 

     

    B. Payments
      of Monthly Fees, Partner Marketing Fees and Expenses.
      The
      Company covenants and agrees: (i) to open a bank account at Steele Street State
      Bank at 55 Adams Street, Denver, Colorado 80206 with the Company as the sole
      signatory (the “Account”); and (ii) to deposit a sum as mutually agred by the
      parties. All payments of the Monthly Fees, the Partner Marketing Fees and the
      Expenses (as that term is defined in Paragraph IV D) shall be made from the
      Account via federal wire transfer or ACH. The Company shall obtain and deliver
      to AMS a Debit/Credit card (the “Card”) for the Account for the sole purpose of
      paying the Partner Marketing Fees and the Expenses. Prior to the use of the
      Card
      by AMS, AMS shall give the Company 30 business days prior written notice
      containing a full detailed description of the nature and amount of any Partner
      Marketing Fee sought to be paid; and 15 days prior written notice containing
      a
      full detailed description of the nature and amount of any distribution costs,
      printing costs, airline travel, hotel accommodations, road shows, investor
      conferences, and other ordinary and necessary costs and expenses that AMS
      intends to incur in the performance of the Services (collectively the
“Expenses”). No payment shall be made out of the Account until and unless the
      Company shall have furnished AMS with prior written approval of such
      expenditure. As mutually agreed by the parties the Company shall maintain
      reasonable funds in the account to provide for such Expenses. 

     

    V. Partner
      Marketing. In
      consideration of AMS entering into this Agreement, the Company hereby agrees
      to
      undertake the services and pay the associated costs, fees and expenses (the
      “Partner Marketing Fees”) in connection with the Partner Marketing Plan set
      forth on Exhibit A annexed hereto. The elements of the Partner Marketing Plan,
      the costs thereof and the related timing may only be modified upon mutually
      written consent by the Company and AMS. The Company agrees to deposit funds
      in
      the amount mutually agreed by the parties to cover the estimated cost of the
      Partner Marketing Plan as well the Monthly Fee in the Account as set forth
      in
      Section IV D above. 

     

    
      
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    VI. Compliance
      with Law.
      The
      Parties hereto acknowledge and agree that AMS is not rendering legal advice
      or
      performing tax, accounting or auditing services. The Company is solely
      responsible for compliance with all federal, state and local laws, ordinances,
      regulations, statutes, rules, orders, injunctions, judgments and decrees
      applicable to the Company (collectively, the “Laws”), including, without
      limitation, federal and state securities laws. The Company is responsible for
      ensuring that any presentation (written, oral, web cast or other format), press
      release, marketing materials, website materials, documents or disclosures
      comprising or resulting
      from the Services are truthful and complete and otherwise comply with all
      Laws.

     

    VII. Independent
      Contractor.
      AMS is
      and will hereafter act as an independent contractor and not as an employee
      of
      the Company and nothing in this Agreement shall be interpreted or construed
      to
      create any employment, partnership, joint venture or other relationship between
      AMS and the Company. AMS will not hold itself out as having, and will not state
      to any person that AMS has, any relationship with the Company other than as
      an
      independent contractor. AMS shall have no right or power to find or create
      any
      liability or obligation for or in the name of the Company or to sign any
      documents on behalf of the Company. AMS shall be free to provide services for
      other persons and entities, which services shall not be deemed to be in conflict
      with the services to be performed by AMS under this Agreement; provided,
      however,
      that AMS
      shall not, during the Term hereof, perform services similar to those set forth
      herein to any third party that directly competes with the business of the
      Company without the prior written consent of the Company.

     

    VIII. AMS’s
      Related Parties.
      AMS is a
      wholly-owned subsidiary of Keating Investments, LLC, an investment advisor
      registered with the United States Securities and Exchange Commission (“Keating
      Investments”). Keating Securities, LLC (“Keating Securities”) is a 90% owned
      subsidiary of Keating Investments. Keating Securities is a broker-dealer
      registered with the U.S. Securities and Exchange Commission and various state
      securities commissions and agencies, and is a member of the National Association
      of Securities Dealers (the “NASD”) and Securities Investor Protection
      Corporation. AMS hereby acknowledges and agrees that the Services are being
      provided solely by AMS, and that neither Keating Securities nor Keating
      Investments will be providing any of the Services in any capacity
      whatsoever.

    

    IX. Market-Making
      Activities.
      AMS
      hereby represents to the Company that Keating Securities, an affiliate of AMS,
      is currently registered and licensed to publish a quotation for, and act as
      market-maker in, a security under the rules of the NASD and, as such, Keating
      Securities may, in its sole discretion and subject to regulatory requirements,
      make a market in the Company’s common stock from time to time. The Company
      hereby acknowledges and agrees that: (A) NASD Rule 2460 specifically prohibits
      broker-dealers such as Keating Securities from accepting any payment or other
      consideration, directly or indirectly, from an issuer of a security, or any
      affiliate or promoter thereof, for publishing a quotation, acting as market
      maker in a security, or submitting an application in connection therewith;
      (B)
      Keating Securities maintains full compliance with this rule at all times, and
      the Services to be provided hereunder are “bona fide services” as permitted by
      Rule 2460; (C) the compensation payable to AMS under this Agreement is not,
      and
      should not be construed to be, for the provision of any market-making services;
      and (D) nothing contained in this Agreement shall be construed as an agreement
      by AMS to cause Keating Securities to make a market in the Company’s common
      stock. 

     

    
      
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    X. Availability
      and Accuracy of Information.
      The
      Company shall furnish AMS with all reasonable information and material requested
      or required by AMS involving the Company including, without limitation,
      information concerning historical and projected financial results, public and
      regulatory filings, material contracts and commitments, proposed financings,
      acquisitions or other transactions, and possible and known litigation,
      environmental and other contingent liabilities of the Company ("Information");
      provided, however the Company shall not be required and nothing contained herein
      shall be construed as requiring the Company to provide any non public
      information, material or data that would result in the Company violating any
      confidentiality obligation or Regulation F-D or any other applicable law, rule,
      regulation. The Company also agrees to make available to AMS such
      representatives of the Company, including, among others, directors, officers,
      employees, outside counsel and independent certified public accountants, as
      AMS
      may reasonably request. The Company will promptly advise AMS of any material
      changes in the Company’s business or finances. The Company represents and
      warrants that the Information provided or made available to AMS by the Company,
      at all times during the Term is and shall be complete and true in all material
      respects and will, to the best of its knowledge and belief, not contain any
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements thereof not misleading in light of the
      circumstances under which such statements are made. The Company further
      represents and warrants that any projections provided to AMS will have been
      prepared in good faith and will be based upon assumptions that, in light of
      the
      circumstances under which they are made, are reasonable. The Company
      acknowledges and agrees that in performing the Services AMS will be using and
      relying on the Information, without independent investigation, appraisal or
      verification, and AMS assumes no responsibility for the accuracy or completeness
      of the Information. The Company is solely responsible for the compliance with
      Laws of any presentation (written, oral, web cast or other format), press
      release, marketing materials, website materials, documents or disclosures
      created pursuant to this Agreement. 

     

    XI. Indemnification.
      The
      Company agrees to indemnify and hold harmless AMS, its controlling persons
      and
      affiliates and their respective officers, directors, shareholders, members,
      partners, employees, agents, advisors and affiliates and control persons of
      any
      of the above (each an “Indemnified Person”) from and against all claims,
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses and disbursements of any kind whatsoever, including, without
      limitation, reasonable attorneys' fees (collectively, “Losses”) that are related
      to or arise out of (A) actions taken or omitted to be taken (including any
      untrue statements made or any statements omitted to be made) by the Company,
      (B)
      any breach of any warranty, representation or agreement of Company contained
      in
      this Agreement, or (C) actions taken or omitted to be taken by an Indemnified
      Person with the consent of or in conformity with the actions or omissions of
      the
      Company. The Company shall not be responsible, however, for any Losses pursuant
      to the preceding sentence that are determined in a final judicial determination
      or final conclusion of an arbitrator engaged by the Parties pursuant to
      the
      terms of this Agreement to have resulted from gross negligence or reckless
      or
      wrongful conduct of AMS;
      and AMS
      agrees to indemnify and hold Company harmless from any Losses incurred by the
      Company arising out of: (i) the gross negligence and reckless or wrongful
      conduct of AMS as determined in a final judicial determination or final
      conclusion of an arbitrator engaged by the parties hereto pursuant to the terms
      of this Agreement or (ii) any breach of any warranty, representation or
      agreement of AMS contained in this Agreement. The Company agrees to reimburse
      each Indemnified Person for all reasonable out-of-pocket expenses (including
      reasonable fees and expenses of counsel for such Indemnified Person) of such
      Indemnified Person in connection with investigating, preparing, conducting
      or
      defending any such action or claim, whether or not in connection with litigation
      in which any Indemnified Person is a named party, or in connection with
      enforcing the rights of an Indemnified Person under this Agreement. The
      indemnity agreements under this Section shall survive the completion of the
      Services rendered by AMS and the termination or expiration of this
      Agreement.

     

    
      
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    XII. 
      Disclosure and Confidentiality.
      Any
      advice, descriptive memoranda or other documentation rendered by AMS pursuant
      to
      this Agreement: (A) may not be disclosed publicly or to any third party without
      the prior written approval of AMS; and (B) shall be reviewed by the Company
      for
      compliance with all Laws prior to its public dissemination. The Company shall
      clearly indicate to AMS any Information provided to AMS that has not been
      publicly disclosed. All non-public information provided by the Company to AMS
      shall be considered confidential information and shall be maintained as such
      by
      AMS, except as required by law or as required to enable AMS to perform its
      Services pursuant to this Agreement, until the same becomes known to third
      parties or the public without release thereof by AMS. 

     

    XIII.  Miscellaneous. 

     

    A. Use
      of
      AMS Name. Before
      the Company releases any information referring to AMS’s role as the Company’s
      investor relations consultant under this Agreement or uses AMS’s name in a
      manner which may result in public dissemination thereof, the Company shall
      furnish drafts of all documents or prepared oral statements to AMS for comments,
      and shall not release any information relating thereto without the prior written
      consent of AMS, which shall not unreasonably be withheld. Nothing herein shall
      prevent the Company from releasing any information to the extent that such
      release is required by law.

     

    B. Authorization. The
      Company represents and warrants that this Agreement has been duly authorized
      and
      represents the legal, valid, binding and enforceable obligation of the Company
      and that neither this Agreement nor the consummation of any transactions
      contemplated hereby requires the approval or consent of any governmental or
      regulatory agency or violates or conflicts with any law, regulation, contract
      or
      order binding the Company.

     

    C. Binding
      Effect. The
      terms, provision and conditions of this Agreement are solely for the benefit
      of
      the Company and AMS and the other Indemnified Persons and their respective
      heirs, successors and permitted assigns and no other person or entity shall
      acquire or have a right by virtue of this Agreement. This Agreement may not
      be
      assigned by either Party without prior written consent of the other
      Party.

     

    D. Entire
      Agreement.
      Each of
      the Parties hereby covenants that this Agreement is intended to and does contain
      and embody herein all of the understandings and agreements, both written and
      oral, of the parties hereby with respect to the subject matter of this
      Agreement, and that there exists no oral agreement or understanding, express
      or
      implied, whereby the absolute, final and unconditional character and nature
      of
      this Agreement shall be in any way invalidated, empowered or affected. There
      are
      no representations, warranties or covenants other than those set forth
      herein.

     

    
      
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    E. Amendment. No
      provision of this Agreement may be waived or amended except in a writing signed
      by both Parties. A waiver or amendment of any term or provision of this
      Agreement shall not be construed as a waiver or amendment of any other term
      or
      provision.

     

    F. Counterparts. This
      Agreement may be executed by facsimile signatures and in multiple counterparts,
      each of which shall be deemed an original. It shall not be necessary that each
      Party executes each counterpart, or that any one counterpart be executed by
      more
      than one party so long as each Party executes at least one counterpart.

     

    G. Validity.
      If any
      provision of this Agreement is declared by any court of competent jurisdiction
      to be invalid for any reason, such invalidity shall not affect the remaining
      provisions of this Agreement.

     

    H. Governing
      Law.
      This
      Agreement shall be governed by and constructed under the laws of the State
      of
      Colorado without regard to such state’s conflicts of law principles, and may be
      amended, modified or supplemented only by written instrument executed by Parties
      hereto. 

     

    I. Arbitration.
      All
      disputes, controversies or claims (“Disputes”) arising out of or relating to
      this Agreement shall in the first instance be the subject of a meeting between
      a
      representative of each Party who has decision-making authority with respect
      to
      the matter in question. Should the meeting either not take place or not result
      in a resolution of the Dispute within twenty (20) business days following notice
      of the Dispute to the other Party, then the Dispute shall be resolved in a
      binding arbitration proceeding to be held in Denver, Colorado in accordance
      with
      the international rules of the American Arbitration Association. The arbitrators
      may award attorneys’ fees and other related arbitration expenses, as well as
      pre- and post-judgment interest on any award of damages, to the prevailing
      Party, in their sole discretion. The Parties agree that a panel of three
      arbitrators shall be required, all of whom shall be fluent in the English
      language, and that the arbitration proceeding shall be conducted entirely in
      the
      English language. Any award of the arbitrators shall be deemed confidential
      information, except to the extent public disclosure of such information is
      required by applicable securities laws or regulations.

     

    J. Notices.
      All
      notices required by the terms of this Agreement shall be in writing and
      delivered to the other Party at the addresses set forth below, either by
      personal delivery, by a recognized international overnight courier service,
      or
      by facsimile. Notices will be deemed given as of the date of receipt, which
      date
      shall be evidenced by the signature of an authorized representative of the
      receiving party or by written evidence of a successful transmission of either
      a
      facsimile or e-mail message.

     

    
      
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              If
                to AMS:

            	
              If
                to Company:

            
	 	 
	
              After
                Market Support, LLC

              Justin
                K. Davis

              5251
                DTC Parkway, Suite 1050

              Greenwood
                Village, Colorado 80111-2739

              (720)
                489-4913 Telephone

              (303)
                728-3542 Fax

            	
              Bonds.com
                Holdings, Inc.

              John
                Barry IV, President/ CEO 

              2135
                South Cherry Street, Suite 200

              Denver,
                CO 80222

              (561)
                953-3630 Telephone

              (303)
                268-3639 Fax

            

    

     

    If
      the
      forgoing correctly sets forth the entire understanding and agreement between
      the
      Company and AMS, please so indicate by executing this Agreement as indicated
      below and returning an executed copy to AMS together, whereupon this Agreement
      shall constitute a binding agreement as of the date first above written.

     

    
      	
              ACCEPTED
                AND AGREED TO:

            	 	 
	 	 	 
	
              BONDS.COM
                HOLDINGS, INC.

            	 	
              AFTER
                MARKET SUPPORT, LLC

            
	 	 	 
	
              By:
                /s/ John Barry IV

            	 	
              By:
                /s/ Timothy J. Keating

            
	
              
                

              

              John
                Barry IV, President/ CEO

            	 	
              
                
 Timothy
                J. Keating, Manager

            

    

     

    
      
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    Exhibit
      A

    

     

    

    

    AMS
      Flight Plan

    for
      Bonds.com Holdings, Inc.

    

    Tactical
      Marketing Initiatives for Stock Launch

    

    
      
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    November
      26, 2007

    Prepared
      by Elizabeth Sklaroff

    
      
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    Phase
      I: Countdown

     

    Objective:
      To build
      strong marketing platform and lay foundation in preparation for trading
      initiation.

    

    Timeline:

     

    

     

    
      	
              Initiative

            	 	
              Objective

            	 	
              AMS
                Actions

            	 	
              Client
                Inputs

            
	
              Marketing
                Collateral

            	 	
              Create
                attractive fact sheet, folder and overhaul existing PowerPoint to
                produce
                best-in-class investor documents for print and Web
                publication.

            	 	
              · Design
                collateral look and feel

              · Produce
                fact sheet

              · Produce
                Power Point

              · Produce
                folder

            	 	
              · Provide
                raw data

              · Provide
                existing collateral

            
	 	 	 	 	 	 	 
	
              Website
                Investor Module

            	 	
              Develop
                IR website. Focus on functionality, content and design to improve
                investor
                experience and make the most credible “first impression.”

            	 	
              · Engage
                website vendor

              · Design
                website template

              · Select
                and submit appropriate content modules

              · Upload
                all marketing documents and educational resources

            	 	
              · Provide
                any existing look and feel requirements (E.g. Logo, etc.)

              · Provide
                any additional resources (E.g. videos, audio files, articles etc.)
                

            
	 	 	 	 	 	 	 
	
              Press
                Release Distribution

            	 	
              Lay
                strong foundation of timely news pieces that will officially introduce
                you
                to investors, serve to strengthen all marketing campaigns and develop
                investor trust through transparency.

            	 	
              · Determine
                which news pieces are attractive to investor audience

              · Write
                and distribute 2 press releases per week 

              · Develop
                90-day rolling calendar

            	 	
              · Provide
                raw news ideas

              · Provide
                corresponding data, dates, documentation, etc.

            
	 	 	 	 	 	 	 
	
               

              Dual-Purpose
                Marketing Efforts

            	 	
              Coordinate
                client-side marketing efforts to include an investor relations
                component

            	 	
              · Provide
                necessary links and tracking code for materials as needed

            	 	
              · Communicate
                all advertising initiatives in a timely manner so AMS can ensure
                maximum
                ROI on investor side

            

    

     

    
      
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    Phase
      II: Lift-Off

    

    Objective: 
      To surge
      to a NASDAQ listing, building along the way a strong investor base of 300+
      round
      lot shareholders and an e-mail distribution list of 3,000+ high quality
      contacts, while increasing average daily trading volume in dollars to 0.1%
      of
      market cap. As a secondary objective, AMS must help overcome selling immediately
      prior to and following Rule 144 effectiveness date (in the event that a
      registration statement is not effective).

     

    Timeline: 

    
      

    

    
      

    

    

    

    
      	
              Initiative

            	 	
              Objective

            	 	
              AMS
                Actions

            	 	
              Client
                Inputs

            
	
              Website
                Investor Module

            	 	
              Continually
                update IR website with fresh content to ensure optimal user
                experience.

            	 	
              · Monitor
                and update content

            	 	
              · Provide
                content input

            
	 	 	 	 	 	 	 
	
              Press
                Release Distribution

            	 	
              Continue
                timely news issuance to pique investor interest, prevent story fatigue
                and
                strengthen all marketing campaigns.

            	 	
              · Determine
                which news pieces are attractive to investor audience

              · Write
                and deliver 2 press releases per week

              · Maintain
                90-day rolling calendar

            	 	
              · Provide
                raw news ideas

              · Provide
                corresponding data, dates, documentation, etc.

            
	 	 	 	 	 	 	 
	
              Keyword
                Search Campaign

            	 	
              Generate
                investor clicks to website, concentrating “firepower” in month prior to
                and following Rule 144 effective date in order to sop up
                overhang.

            	 	
              · Continually
                optimize keyword list and position

              · Increase
                intensity of keyword campaigns month prior to and after Rule 144
                effectiveness

              · Scale
                back to campaigns after Rule 144 impact fades

            	 	 
	 	 	 	 	 	 	 
	
              Online
                Investor Advertising

            	 	
              Drive
                highly targeted traffic to website, concentrating “firepower” in month
                prior to and following Rule 144 effective date in order to sop up
                overhang; scale campaign slightly back thereafter.

            	 	
              · Update
                all rich media units and and/or text advertisements

              · Time
                multiple ads around Rule 144 effective date

            	 	 
	 	 	 	 	 	 	 
	
              Online
                Lead Generation

            	 	
              Dramatically
                increase opt-in leads in as short a time possible in order to build
                critical mass for news distribution and counteract Rule 144
                impact.

            	 	
              · Amass
                8000+ additional opt-in leads

              · Continually
                upload all leads to email distribution list

            	 	 
	 	 	 	 	 	 	 
	
              Price-Based
                Investor Email Intro

            	 	
              Provide
                immediate spark to trading volume upon which all subsequent efforts
                will
                build - this is the effective introduction to the Bulletin
                Board.

            	 	
              · Review
                and improve vendor copy

              · Upload
                to email distribution list all leads generated

            	 	 
	 	 	 	 	 	 	 
	
              Sector-Specific
                Web Portals

            	 	
              Periodic
                articles and associated releases provide predictably spaced volume
                surges,
                helping to contribute additional volume around guerrilla efforts
                like
                keyword searches.

            	 	
              · Review
                and improve vendor copy

            	 	
              · Provide
                supporting quotes from management for articles

            
	 	 	 	 	 	 	 

    

     

    
      
        ©
          2007 After Market Support, LLC, v.11-26-07

        
        

      

      
        page
          11

        
          

        

      

      
        
        

      

    

    
       

      

    

    
 

    
      	
              Initiative

            	 	
              Objective

            	 	
              AMS
                Actions

            	 	
              Client
                Inputs

            

    

    
      	
              Financial
                and Trade Media Coverage

            	 	
              Achieve
                validation and credibility through third-party mention in popular
                media,
                strengthening the story in the aggregate and driving immediate volume
                in
                the case of rare “big wins”.

            	 	
              · Train
                financial PR contractor on Company’s story

            	 	
              · Be
                available for interviews

              · Provide
                supporting information 

            
	 	 	 	 	 	 	 
	
              Investor
                Conferences

            	 	
              Allow
                investors following the story to put a face to the name and generate
                hundreds to thousands of new leads who will be prepped for subsequent
                conversion.

            	 	
              · Design
                and create booth

              · Develop
                on-site promotions

              · Attend
                4 paid conferences

            	 	
              · Attend
                and present at 4 paid conferences

            
	 	 	 	 	 	 	 
	
              Multi-Purpose
                Promotional Video

            	 	
              Achieve
                widespread distribution of a uniquely engaging web-based educational
                tool
                that is both trackable and viral in nature.

            	 	
              · Produce
                video

              · Publish
                video on IR website

              · Deploy
                video across dozens of touch points

            	 	
              · Be
                available for video interview

              · Provide
                existing raw footage/photos

            
	 	 	 	 	 	 	 
	
              Marketing
                Collateral

            	 	
              Make
                possible immediate fulfillment of daily information requests and
                prepare
                for unrivaled booth presence at investor conferences.

            	 	
              · Manage
                printing of fact sheet, PPT and folders

            	 	 
	 	 	 	 	 	 	 
	
               

              Dual-Purpose
                Marketing Efforts

            	 	
              Coordinate
                client-side marketing efforts to include an investor relations
                component

            	 	
              · Provide
                necessary links and tracking code for materials as needed

            	 	
              · Communicate
                all advertising initiatives in a timely manner so AMS can ensure
                maximum
                ROI on investor side

            
	 	 	 	 	 	 	 
	
              Initiate
                Sponsored Research

            	 	
              Publicly
                issue deeply analytical, third party analysis that sophisticated
                investors
                require as the Company’s audience evolves but before independent coverage
                is possible.

            	 	
              · Engage
                analyst

              · Publish
                report on unique IR website page

            	 	
              · Be
                available for interview and fact checking

            
	 	 	 	 	 	 	 
	
              NASDAQ
                Application

            	 	
              Navigate
                through NASDAQ upgrade. As new price equilibrium has been achieved
                following Pre-PIPE Rule 144 effectiveness, execute appropriate reverse
                stock split, cushioning above required $4.00/share listing price
                in order
                to safely protect against negative investor perception. (Immediate
                possible decrease more than outweighed by eventual increase associated
                with positive perception of listing upgrade.)

            	 	
              · Provide
                reverse stock split and application filing timing
                recommendation

            	 	
              · Meet
                NASDAQ Capital Market requirements (except stock price)

              · File
                application

              · Work
                through regulatory comments

              · Execute
                reverse stock split to
                $6.00/share

            

    

    
      
        ©
          2007 After Market Support, LLC, v.11-26-07

        
        

      

      
        page
          12

        
          

        

      

      
        
        

      

    

     

    
      

    

    

    Phase
      III: Ascent

    

    Objective: 
      Maintain
      trading momentum following the filing of a NASDAQ application and prior to
      the
      upgrade’s effectiveness while beginning to introduce Bonds.com Holdings, Inc. to
      the institutional investors whose interest in and ability to trade the Company’s
      stock is wholly dependent on the listing upgrade. Achieve 500+ round lot
      shareholders, 3,500+ high quality contacts and dollar volume equal to 0.2%
      of
      market cap.

    

    
      Timeline: 

    

    
      

    

    
      

    

     

     

    
      	
              Initiative

            	 	
              Objective

            	 	
              AMS
                Actions

            	 	
              Client
                Inputs

            
	
              Website
                Investor Module

            	 	
              Continually
                update IR website with fresh content to ensure optimal user
                experience.

            	 	
              · Monitor
                and change content

            	 	
              · Provide
                content input

            
	 	 	 	 	 	 	 
	
              Press
                Release Distribution

            	 	
              Continue
                timely news issuance to pique investor interest, prevent story fatigue
                and
                strengthen all marketing campaigns.

            	 	
              · Determine
                which news pieces are attractive to investor audience

              · Deliver
                one press release per week

              · Maintain
                90-day rolling calendar

            	 	
              · Provide
                raw news ideas

              · Provide
                corresponding data, dates, documentation, etc.

            
	 	 	 	 	 	 	 
	
              Keyword
                Search Campaign

            	 	
              Judiciously
                pare back spend as trading increase feeds itself; maintain flexibility
                to
                ramp back up as support is required.

            	 	
              · Reduce
                number of keywords, accept lower search result positions

              · Cease
                or ramp as trading volume dictates

            	 	 
	 	 	 	 	 	 	 
	
              Online
                Investor Advertising

            	 	
              Judiciously
                pare back spend as trading increase feeds itself; maintain flexibility
                to
                ramp back up as support is required.

            	 	
              · Submit
                refreshed advertisements to top two financial sites

              · Cease
                or continue as trading volume dictates

            	 	 
	 	 	 	 	 	 	 
	
              Financial
                and Trade Media Coverage

            	 	
              With
                significant coverage successfully achieved by PR contractor, decrease
                spending as media attention snowballs organically.

            	 	
              · Coordinate
                with media independently seeking introduction to Company

            	 	
              · Be
                available for interviews

              · Provide
                supporting information

            
	 	 	 	 	 	 	 
	
              Investor
                Conferences

            	 	
              Continue
                to pay to present at a major individual investor show, but leverage
                AMS
                relationships to secure immediately pre-NASDAQ invites to higher
                value
                institutional events.

            	 	
              · Refresh
                booth

              · Attend
                1 paid conference

              · Attempt
                to secure invites to and attend sponsored conferences

            	 	
              · Attend
                and present at 1 paid conference

              · Attend
                sponsored conferences with little warning

            
	 	 	 	 	 	 	 
	
              Marketing
                Collateral

            	 	
              Maintain
                data and content of all marketing documents in order to best reflect
                Company’s rapid quarter-on-quarter growth.

            	 	
              · Update
                data with new figures

              · Reprint
                collateral

            	 	 

    

    
      
        ©
          2007 After Market Support, LLC, v.11-26-07

        
        

      

      
        page
          13

        
          

        

      

      
        
        

      

    

     

    

     

    

    

    Phase
      IV: Flight

    

    Objective: 
      Maintain
      sufficient forward progress to account for potential Rule 144-related selling
      while transitioning Bonds.com Holdings, Inc. to an IR firm specializing in
      institutional investors. Achieve 1,000+ round lot shareholders, 4,000+ high
      quality leads and dollar volume equal to 0.4% of market cap.

    

    
      Timeline: 

    

    

    
      

    

    

    

    
      	
              Initiative

            	 	
              Objective

            	 	
              AMS
                Actions

            	 	
              Client
                Inputs

            
	
              Website
                Investor Module

            	 	
              Continually
                update IR website with fresh content to ensure optimal user
                experience.

            	 	
              · Monitor
                and update content

            	 	
              · Provide
                content input

            
	
               

              Dual-Purpose
                Marketing Efforts

            	 	
              Coordinate
                client-side marketing efforts to include an investor relations
                component

            	 	
              · Provide
                necessary links and tracking code for materials as needed

            	 	
              · Communicate
                all advertising initiatives in a timely manner so AMS can ensure
                maximum
                ROI on investor side

            
	
              Press
                Release Distribution

            	 	
              Continue
                timely news issuance to pique investor interest, prevent story fatigue
                and
                strengthen all marketing campaigns.

            	 	
              · Determine
                which news pieces are attractive to investor audience

              · Write
                and deliver 1 press release per week

              · Maintain
                90-day rolling calendar

            	 	
              · Provide
                raw news ideas

              · Provide
                corresponding data, dates, documentation, etc.

            
	
              Conduct
                Non-Deal Road Show

            	 	
              Build
                non-deal roadshow(s) around one or more institutional conferences
                to
                introduce Bonds.com Holdings, Inc. as NASDAQ stock and place blocks
                to sop
                up PIPE Rule 144 overhang.

            	 	
              · Schedule
                meetings and plan roadshow

              · Prepare
                roadshow materials and press package

              · Attend
                1 or more roadshows

            	 	
              · Actively
                participate in 1 or more roadshows

            
	
              Budgetary
                Flexibility

            	 	
              Maintain
                flexibility to overcome unpredictability of market reception of Bonds.com
                Holdings, Inc. in one year, and PIPE investor’s reaction to ability to
                sell under Rule 144.

            	 	
              · Review
                overall launch plan progress

              · Recommend
                add-on campaigns and budget adjustment if necessary

            	 	
              · Keep
                war chest at ready in case stock needs to be supported

            
	
              Institutional
                IR Transition

            	 	
              AMS
                will remain involved as long as it is useful for both Bonds.com Holdings,
                Inc. and new representation in order to ensure smooth transition
                and high
                level of confidence.

            	 	
              · Provide
                introduction to firms specializing in institutional relationships
                

              · Provide
                introduction to high profile Tier II investment banks if the Company
                has
                not yet cemented a long term investment banking
                relationship

            	 	
              · Attend
                introductory meetings

              · Select
                ongoing representation

              · Provide
                success reference to AMS

            

    

    

    

    
      
        ©
          2007 After Market Support, LLC, v.11-26-07

        
        

      

      
        page
          14ALTIGEN
      COMMUNICATIONS, INC.

     

    1999
      EMPLOYEE STOCK PURCHASE PLAN

     

    (AS
      AMENDED NOVEMBER 13, 2007)

     

    The
      following constitute the provisions of the 1999 Employee Stock Purchase Plan
      of
      AltiGen Communications, Inc.

     

    1. Purpose.
      The
      purpose of the Plan is to provide employees of the Company and its Designated
      Subsidiaries with an opportunity to purchase Common Stock of the Company through
      accumulated payroll deductions. It is the intention of the Company to have
      the
      Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the
      Code. The provisions of the Plan, accordingly, shall be construed so as to
      extend and limit participation in a manner consistent with the requirements
      of
      that section of the Code.

     

    2. Definitions.

     

    (a) “Board”
shall
      mean the Board of Directors of the Company.

     

    (b) “Code”
shall
      mean the Internal Revenue Code of 1986, as amended.

     

    (c) “Common
      Stock”
shall
      mean the common stock of the Company.

     

    (d) “Company”
shall
      mean AltiGen Communications, Inc. and any Designated Subsidiary of the
      Company.

     

    (e) “Compensation”
shall
      mean all base straight time gross earnings and commissions, but exclusive of
      payments for overtime, shift premium, incentive compensation, incentive
      payments, bonuses and other compensation.

     

    (f) “Designated
      Subsidiary”
shall
      mean any Subsidi-ary that has been designated by the Board from time to time
      in
      its sole discretion as eligible to participate in the Plan.

     

    (g) “Employee”
shall
      mean any individual who is an Employee of the Company for tax purposes whose
      customary employment with the Company is at least twenty (20) hours per week
      and
      more than five (5) months in any calendar year. For purposes of the Plan, the
      employment relationship shall be treated as continuing intact while the
      individual is on sick leave or other leave of absence approved by the Company.
      Where the period of leave exceeds ninety (90) days and the individual’s right to
      reemployment is not guaranteed either by statute or by contract, the employment
      relationship shall be deemed to have terminated on the 91st day of such leave.
      

     

    (h) “Enrollment
      Date”
shall
      mean the first Trading Day of each Offering Period.

     

    (i) “Exercise
      Date”
shall
      mean the last Trading Day of each Purchase Period (or, beginning on or after
      May
      1, 2006, Offering Period).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (j) “Fair
      Market Value”
shall
      mean, as of any date, the value of Common Stock determined as
      follows:

     

    (i) If
      the
      Common Stock is listed on any established stock exchange or a national market
      system, including without limitation the Nasdaq Global Select Market, the Nasdaq
      Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its
      Fair
      Market Value shall be the closing sales price for such stock (or the closing
      bid, if no sales were reported) as quoted on such exchange or system for the
      last market trading day prior to the date of determination, as reported in
      The
      Wall Street Journal
      or such
      other source as the Board deems reliable; 

     

    (ii) If
      the
      Common Stock is regularly quoted by a recognized securities dealer but selling
      prices are not reported, its Fair Market Value shall be the mean of the closing
      bid and asked prices for the Common Stock prior to the date of determination,
      as
      reported in The
      Wall Street Journal
      or such
      other source as the Board deems reliable;

     

    (iii) In
      the
      absence of an established market for the Common Stock, the Fair Market Value
      thereof shall be determined in good faith by the Board; or

     

    (iv) For
      purposes of the Enrollment Date of the first Offering Period under the Plan,
      the
      Fair Market Value shall be the initial price to the public as set forth in
      the
      final prospectus included within the registration statement in Form S-1 filed
      with the Securities and Exchange Commission for the initial public offering
      of
      the Company’s Common Stock (the “Registration Statement”).

     

    (k) “Offering
      Periods”
shall
      mean (i) for all periods commencing prior to May 1, 2006, the periods of
      approximately twenty-four (24) months during which an option granted pursuant
      to
      the Plan may be exercised, commencing on the first Trading Day on or after
      May 1
      and November 1 of each year and terminating on the last Trading Day in the
      periods ending twenty-four (24) months later; provided, however, that the first
      Offering Period under the Plan shall commence with the first Trading Day on
      or
      after the date on which the Securities and Exchange Commission declares the
      Company’s Registration Statement effective and ending on the last Trading Day on
      or before July 31, 2001, or (ii) for all periods commencing on the first Trading
      Day on or after May 1, 2006, the periods of approximately six (6) months during
      which an option granted pursuant to the Plan may be exercised, (A) commencing
      on
      the first Trading Day on or after May 1 of each year and terminating on the
      last
      Trading Day in the period ending six (6) months later, and (B) commencing on
      the
      first Trading Day on or after November 1 of each year and terminating on
      the last Trading Day in the period ending six (6) months later. The duration
      and
      timing of Offering Periods may be changed pursuant to Section 4 of this
      Plan.

     

    (l) “Plan”
shall
      mean this 1999 Employee Stock Purchase Plan, as amended.

     

    (m) “Purchase
      Period”
shall
      mean the approximately six (6) month period commencing after one Exercise Date
      and ending with the next Exercise Date, except that the first Purchase Period
      of
      any Offering Period shall commence on the Enrollment Date and end with the
      next
      Exercise Date.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (n) “Purchase
      Price”
      shall
      mean eight-five percent (85%) of the Fair Market Value of a share of Common
      Stock on the Enrollment Date or the Exercise Date, whichever is lower;
      provided, however, that the Purchase Price may be adjusted by the Board pursuant
      to Section 20.

     

    (o) “Reserves”
shall
      mean the number of shares of Common Stock covered by each option under the
      Plan
      which have not yet been exercised and the number of shares of Common Stock
      which
      have been authorized for issuance under the Plan but not yet placed under
      option.

     

    (p) “Subsidiary”
shall
      mean a corporation, domestic or foreign, of which not less than fifty percent
      (50%) of the voting shares are held by the Company or a Subsidiary, whether
      or
      not such corporation now exists or is hereafter organized or acquired by the
      Company or a Subsidiary.

     

    (q) “Trading
      Day”
shall
      mean a day on which national stock exchanges and the Nasdaq System are open
      for
      trading.

     

    3. Eligibility.

     

    (a) Any
      Employee who shall be employed by the Company on a given Enrollment Date shall
      be eligible to participate in the Plan.

     

    (b) Any
      provisions of the Plan to the contrary notwithstanding, no Employee shall be
      granted an option under the Plan (i) to the extent that, immediately after
      the grant, such Employee (or any other person whose stock would be attributed
      to
      such Employee pursuant to Section 424(d) of the Code) would own capital stock
      of
      the Company and/or hold outstanding options to purchase such stock possessing
      five percent (5%) or more of the total combined voting power or value of all
      classes of the capital stock of the Company or of any Subsidiary, or
      (ii) to the extent that his or her rights to purchase stock under all
      employee stock purchase plans of the Company and its subsidiaries accrues at
      a
      rate which exceeds $25,000 worth of stock (determined at the fair market value
      of the shares at the time such option is granted) for each calendar year in
      which such option is outstanding at any time.

     

    4. Offering
      Periods.
      The
      Plan shall be implemented by consecutive, overlapping Offering Periods with
      a
      new Offering Period commencing on the first Trading Day on or after May 1 and
      November 1 each year, or on such other date as the Board shall determine, and
      continuing thereafter until terminated in accordance with Section 20 hereof;
      provided, however, that the first Offering Period under the Plan shall commence
      with the first Trading Day on or after the date on which the Securities and
      Exchange Commission declares the Company’s Registration Statement effective and
      ending on the last Trading Day on or before July 31, 2001. The Board shall
      have
      the power to change the duration of Offering Periods (includ-ing the
      commencement dates thereof) with respect to future offerings without shareholder
      approval if such change is announced at least five (5) days prior to the
      scheduled begin-ning of the first Offering Period to be affected
      thereafter.

     

    5. Participation.

     

    (a) An
      eligible Employee may become a participant in the Plan by completing a
      subscription agreement authorizing payroll deductions in the form of
Exhibit A
      to this
      Plan and filing it with the Company’s payroll office prior to the applicable
      Enrollment Date.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (b) Payroll
      deductions for a participant shall commence on the first payroll following
      the
      Enrollment Date and shall end on the last payroll in the Offering Period to
      which such authorization is applicable, unless sooner terminated by the
      participant as provided in Section 10 hereof.

     

    6. Payroll
      Deductions.

     

    (a) At
      the
      time a participant files his or her subscription agreement, he or she shall
      elect to have payroll deductions made on each pay day during the Offering Period
      in an amount not exceeding fifteen percent (15%) of the Compensation which
      he or
      she receives on each pay day during the Offering Period. 

     

    (b) All
      payroll deductions made for a participant shall be credited to his or her
      account under the Plan and shall be withheld in whole percentages only. A
      participant may not make any additional payments into such account.

     

    (c) A
      participant may discontinue his or her participation in the Plan as provided
      in
      Section 10 hereof, or may increase or decrease the rate of his or her payroll
      deductions during the Offering Period by completing or filing with the Company
      a
      new subscription agreement authorizing a change in payroll deduction rate.
      The
      Board may, in its discretion, limit the number of participation rate changes
      during any Offering Period. The change in rate shall be effective with the
      first
      full payroll period following five (5) business days after the Company’s receipt
      of the new subscription agreement unless the Company elects to process a given
      change in participation more quickly. A participant’s subscription agreement
      shall remain in effect for successive Offering Periods unless terminated as
      provided in Section 10 hereof.

     

    (d) Notwithstanding
      the foregoing, to the extent necessary to comply with Section 423(b)(8) of
      the
      Code and Section 3(b) hereof, a participant’s payroll deductions may be
      decreased to zero percent (0%) at any time during a Purchase Period (or,
      beginning on or after May 1, 2006, Offering Period). Payroll deductions shall
      recom-mence at the rate provided in such participant’s subscription agreement at
      the beginning of the first Purchase Period (or, beginning on or after May 1,
      2006, Offering Period) which is scheduled to end in the following calendar
      year,
      unless terminated by the participant as provided in Section 10
      hereof.

     

    (e) At
      the
      time the option is exercised, in whole or in part, or at the time some or all
      of
      the Company’s Common Stock issued under the Plan is disposed of, the participant
      must make adequate provision for the Company’s federal, state, or other tax
      withholding obligations, if any, which arise upon the exercise of the option
      or
      the disposition of the Common Stock. At any time, the Company may, but shall
      not
      be obligated to, withhold from the participant’s compensation the amount
      necessary for the Company to meet applicable withholding obligations, including
      any withholding required to make available to the Company any tax deductions
      or
      benefits attributable to sale or early disposition of Common Stock by the
      Employee. 

     

    7. Grant
      of Option.
      On the
      Enrollment Date of each Offering Period, each eligible Employee participating
      in
      such Offering Period shall be granted an option to purchase on each Exercise
      Date during such Offering Period (at the applicable Purchase Price) up to a
      number of shares of the Company’s Common Stock determined by dividing such
      Employee’s payroll deductions accumulated prior to such Exercise Date and
      retained in the Participant’s account as of the Exercise Date by the applicable
      Purchase Price; provided that in no event shall an Employee be permitted to
      purchase during each Purchase Period (or, beginning on or after May 1, 2006,
      Offering Period) more than 5,989 shares of the Company’s Common Stock (subject
      to any adjustment pursuant to Section 19), and provided further that such
      purchase shall be subject to the limitations set forth in Sections 3(b) and
      12 hereof. The Board may, for future Offering Periods, increase or decrease,
      in
      its absolute discretion, the maximum number of shares of the Company’s Common
      Stock an Employee may purchase during each Purchase Period of such Offering
      Period (or, beginning on or after May 1, 2006, Offering Period). Exercise of
      the
      option shall occur as provided in Section 8 hereof, unless the participant
      has withdrawn pursuant to Section 10 hereof. The option shall expire on the
      last day of the Offering Period. 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    8. Exercise
      of Option.
      

     

    (a) Unless
      a
      participant withdraws from the Plan as provided in Section 10 hereof, his or
      her
      option for the purchase of shares shall be exercised automatically on the
      Exercise Date, and the maximum number of full shares subject to option shall
      be
      purchased for such participant at the applicable Purchase Price with the
      accumulated payroll deductions in his or her account. No fractional shares
      shall
      be purchased; any payroll deductions accumulated in a participant’s account
      which are not sufficient to purchase a full share shall be retained in the
      participant’s account for the subsequent Purchase Period or Offering Period,
      subject to earlier withdrawal by the participant as provided in Section 10
      hereof. Any other monies left over in a participant’s account after the Exercise
      Date shall be returned to the participant. During a participant’s lifetime, a
      participant’s option to purchase shares hereunder is exercisable only by him or
      her.

     

    (b) If
      the
      Board determines that, on a given Exercise Date, the number of shares with
      respect to which options are to be exercised may exceed (i) the number of shares
      of Common Stock that were available for sale under the Plan on the Enrollment
      Date of the applicable Offering Period, or (ii) the number of shares available
      for sale under the Plan on such Exercise Date, the Board may in its sole
      discretion (x) provide that the Company shall make a pro rata allocation of
      the
      shares of Common Stock available for purchase on such Enrollment Date or
      Exercise Date, as applicable, in as uniform a manner as shall be practicable
      and
      as it shall determine in its sole discretion to be equitable among all
      participants exercising options to purchase Common Stock on such Exercise Date,
      and continue all Offering Periods then in effect, or (y) provide that the
      Company shall make a pro rata allocation of the shares available for purchase
      on
      such Enrollment Date or Exercise Date, as applicable, in as uniform a manner
      as
      shall be practicable and as it shall determine in its sole discretion to be
      equitable among all participants exercising options to purchase Common Stock
      on
      such Exercise Date, and terminate any or all Offering Periods then in effect
      pursuant to Section 20 hereof. The Company may make pro rata allocation of
      the
      shares available on the Enrollment Date of any applicable Offering Period
      pursuant to the preceding sentence, notwithstanding any authorization of
      additional shares for issuance under the Plan by the Company’s shareholders
      subsequent to such Enrollment Date.

     

    9. Delivery.
      As
      promptly as practicable after each Exercise Date on which a purchase of shares
      occurs, the Company shall arrange the delivery to each participant, as
      appropriate, of a certificate representing the shares purchased upon exercise
      of
      his or her option.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    10. Withdrawal.

     

    (a) A
      participant may withdraw all but not less than all the payroll deductions
      credited to his or her account and not yet used to exercise his or her option
      under the Plan at any time by giving written notice to the Company in the form
      of Exhibit B
      to this
      Plan. All of the participant’s payroll deductions credited to his or her account
      shall be paid to such participant promptly after receipt of notice of withdrawal
      and such participant’s option for the Offering Period shall be automatically
      terminated, and no further payroll deductions for the purchase of shares shall
      be made for such Offering Period. If a participant withdraws from an Offering
      Period, payroll deductions shall not resume at the beginning of the succeeding
      Offering Period unless the participant delivers to the Company a new
      subscription agreement.

     

    (b) A
      participant’s withdrawal from an Offering Period shall not have any effect upon
      his or her eligibility to participate in any similar plan which may hereafter
      be
      adopted by the Company or in succeeding Offering Periods which commence after
      the termination of the Offering Period from which the participant
      withdraws.

     

    11. Termination
      of Employment.

     

    Upon
      a
      participant’s ceasing to be an Employee, for any reason, he or she shall be
      deemed to have elected to withdraw from the Plan and the payroll deductions
      credited to such participant’s account during the Offering Period but not yet
      used to exercise the option shall be returned to such participant or, in the
      case of his or her death, to the person or persons entitled thereto under
      Section 15 hereof, and such participant’s option shall be automatically
      terminated. The preceding sentence notwithstanding, a participant who receives
      payment in lieu of notice of termination of employment shall be treated as
      continuing to be an Employee for the participant’s customary number of hours per
      week of employment during the period in which the participant is subject to
      such
      payment in lieu of notice.

     

    12. Interest.
      No
      interest shall accrue on the payroll deductions of a participant in the
      Plan.

     

    13. Stock.

     

    (a) Subject
      to adjustment upon changes in capitalization of the Company as provided in
      Section 19 hereof, the maximum number of shares of the Company’s Common Stock
      which shall be made available for sale under the Plan shall be 299,464 shares
      (post one-for-1.66965 stock split), plus an annual increase to be added on
      the
      first day of the Company’s fiscal year beginning in 2000 equal to the lesser of
      (i) 598,928 shares (post one-for-1.66965 stock split), (ii) two percent (2%)
      of
      the outstanding shares on such date or (iii) a lesser amount determined by
      the
      Board. 

     

    (b) The
      participant shall have no interest or voting right in shares covered by his
      option until such option has been exercised.

     

    (c) Shares
      to
      be delivered to a participant under the Plan shall be registered in the name
      of
      the participant or in the name of the participant and his or her
      spouse.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    14. Administration.
      The
      Plan shall be administered by the Board or a committee of members of the Board
      appointed by the Board. The Board or its committee shall have full and exclusive
      discretionary authority to construe, interpret and apply the terms of the Plan,
      to determine eligibility and to adjudicate all disputed claims filed under
      the
      Plan. Every finding, decision and determination made by the Board or its
      committee shall, to the full extent permitted by law, be final and binding
      upon
      all parties.

     

    15. Designation
      of Beneficiary.

     

    (a) A
      participant may file a written designation of a beneficiary who is to receive
      any shares and cash, if any, from the participant’s account under the Plan in
      the event of such participant’s death subsequent to an Exercise Date on which
      the option is exercised but prior to delivery to such participant of such shares
      and cash. In addition, a participant may file a written designation of a
      beneficiary who is to receive any cash from the participant’s account under the
      Plan in the event of such participant’s death prior to exercise of the option.
      If a participant is married and the designated beneficiary is not the spouse,
      spousal consent shall be required for such designation to be
      effective.

     

    (b) Such
      designation of beneficiary may be changed by the participant at any time by
      written notice. In the event of the death of a participant and in the absence
      of
      a beneficiary validly designated under the Plan who is living at the time of
      such participant’s death, the Company shall deliver such shares and/or cash to
      the executor or administrator of the estate of the participant, or if no such
      executor or administrator has been appointed (to the knowledge of the Company),
      the Company, in its discretion, may deliver such shares and/or cash to the
      spouse or to any one or more dependents or relatives of the participant, or
      if
      no spouse, dependent or relative is known to the Company, then to such other
      person as the Company may designate.

     

    16. Transferability.
      Neither
      payroll deductions credited to a participant’s account nor any rights with
      regard to the exercise of an option or to receive shares under the Plan may
      be
      assigned, transferred, pledged or otherwise disposed of in any way (other than
      by will, the laws of descent and distribution or as provided in Section 15
      hereof) by the participant. Any such attempt at assignment, transfer, pledge
      or
      other disposition shall be without effect, except that the Company may treat
      such act as an election to withdraw funds from an Offering Period in accordance
      with Section 10 hereof.

     

    17. Use
      of
      Funds.
      All
      payroll deductions received or held by the Company under the Plan may be used
      by
      the Company for any corporate purpose, and the Company shall not be obligated
      to
      segregate such payroll deductions.

     

    18. Reports.
      Individual accounts shall be maintained for each participant in the Plan.
      Statements of account shall be given to participating Employees at least
      annually, which statements shall set forth the amounts of payroll deductions,
      the Purchase Price, the number of shares purchased and the remaining cash
      balance, if any.

     

    19. Adjustments
      Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset
      Sale.

     

    (a) Changes
      in Capitalization.
      Subject
      to any required action by the shareholders of the Company, the Reserves, the
      maximum number of shares each participant may purchase each Purchase Period
      (or,
      beginning on or after May 1, 2006, Offering Period) (pursuant to
      Section 7), as well as the price per share and the number of shares of
      Common Stock covered by each option under the Plan which has not yet been
      exercised shall be proportionately adjusted for any increase or decrease in
      the
      number of issued shares of Common Stock resulting from a stock split, reverse
      stock split, stock dividend, combination or reclassification of the Common
      Stock, or any other increase or decrease in the number of shares of Common
      Stock
      effected without receipt of consideration by the Company; provided, however,
      that conversion of any convertible securities of the Company shall not be deemed
      to have been “effected without receipt of consideration.” Such adjustment shall
      be made by the Board, whose determination in that respect shall be final,
      binding and conclusive. Except as expressly provided herein, no issuance by
      the
      Company of shares of stock of any class, or securities convertible into shares
      of stock of any class, shall affect, and no adjustment by reason thereof shall
      be made with respect to, the number or price of shares of Common Stock subject
      to an option.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (b) Dissolution
      or Liquidation.
      In the
      event of the proposed dissolution or liquidation of the Company, the Offering
      Period then in progress shall be shortened by setting a new Exercise Date (the
      “New Exercise Date”), and shall terminate immediately prior to the consummation
      of such proposed dissolution or liquidation, unless provided otherwise by the
      Board. The New Exercise Date shall be before the date of the Company’s proposed
      dissolution or liquidation. The Board shall notify each participant in writing,
      at least ten (10) business days prior to the New Exercise Date, that the
      Exercise Date for the participant’s option has been changed to the New Exercise
      Date and that the participant’s option shall be exercised automatically on the
      New Exercise Date, unless prior to such date the participant has withdrawn
      from
      the Offering Period as provided in Section 10 hereof. 

     

    (c) Merger
      or Asset Sale.
      In the
      event of a proposed sale of all or substantially all of the assets of the
      Company, or the merger of the Company with or into another corporation, each
      outstanding option shall be assumed or an equivalent option substituted by
      the
      successor corporation or a Parent or Subsidiary of the successor corporation.
      In
      the event that the successor corporation refuses to assume or substitute for
      the
      option, any Purchase Periods (or, beginning on or after May 1, 2006, Offering
      Periods) then in progress shall be shortened by setting a new Exercise Date
      (the
“New Exercise Date”) and any Offering Periods then in progress shall end on the
      New Exercise Date. The New Exercise Date shall be before the date of the
      Company’s proposed sale or merger. The Board shall notify each participant in
      writing, at least ten (10) business days prior to the New Exercise Date, that
      the Exercise Date for the participant’s option has been changed to the New
      Exercise Date and that the participant’s option shall be exercised automatically
      on the New Exercise Date, unless prior to such date the participant has
      withdrawn from the Offering Period as provided in Section 10
      hereof.

     

    20. Amendment
      or Termination.

     

    (a) The
      Board
      may at any time and for any reason terminate or amend the Plan. Except as
      provided in Section 19 hereof, no such termination can affect options previously
      granted, provided that an Offering Period may be terminated by the Board on
      any
      Exercise Date if the Board determines that the termination of the Offering
      Period or the Plan is in the best interests of the Company and its shareholders.
      Except as pro-vided in Section 19 and this Section 20 hereof, no amendment
      may
      make any change in any option theretofore granted which adversely affects the
      rights of any participant. To the extent necessary to comply with Section 423
      of
      the Code (or any successor rule or provision or any other applicable law,
      regulation or stock exchange rule), the Company shall obtain shareholder
      approval in such a manner and to such a degree as required.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (b) Without
      shareholder consent and without regard to whether any participant rights may
      be
      considered to have been “adversely affected,” the Board (or its committee) shall
      be entitled to change the Offering Periods, limit the frequency and/or number
      of
      changes in the amount withheld during an Offering Period, establish the exchange
      ratio applicable to amounts withheld in a currency other than U.S. dollars,
      permit payroll withholding in excess of the amount designated by a participant
      in order to adjust for delays or mistakes in the Company’s processing of
      properly completed withholding elections, establish reasonable waiting and
      adjustment periods and/or accounting and crediting procedures to ensure that
      amounts applied toward the purchase of Common Stock for each participant
      properly correspond with amounts withheld from the participant’s Compensation,
      and establish such other limitations or procedures as the Board (or its
      committee) determines in its sole discretion advisable which are consistent
      with
      the Plan.

     

    (c) In
      the
      event the Board determines that the ongoing operation of the Plan may result
      in
      unfavorable financial accounting consequences, the Board may, in its discretion
      and, to the extent necessary or desirable, modify or amend the Plan to reduce
      or
      eliminate such accounting consequence including, but not limited
      to:

     

    (i) altering
      the Purchase Price for any Offering Period including an Offering Period underway
      at the time of the change in Purchase Price;

     

    (ii) shortening
      any Offering Period so that Offering Period ends on a new Exercise Date,
      including an Offering Period underway at the time of the Board action;
      and

     

    (iii) allocating
      shares.

     

    Such
      modifications or amendments shall not require stockholder approval or the
      consent of any Plan participants.

     

    21. Notices.
      All
      notices or other communications by a participant to the Company under or in
      connection with the Plan shall be deemed to have been duly given when received
      in the form specified by the Company at the location, or by the person,
      designated by the Company for the receipt thereof.

     

    22. Conditions
      Upon Issuance of Shares.
      Shares
      shall not be issued with respect to an option unless the exercise of such option
      and the issuance and delivery of such shares pursuant thereto shall comply
      with
      all applicable provisions of law, domestic or foreign, including, without
      limitation, the Securities Act of 1933, as amended, the Securities Exchange
      Act
      of 1934, as amended, the rules and regulations promulgated thereunder, and
      the
      requirements of any stock exchange upon which the shares may then be listed,
      and
      shall be further subject to the approval of counsel for the Company with respect
      to such compliance.

     

    As
      a
      condition to the exercise of an option, the Company may require the person
      exercising such option to represent and warrant at the time of any such exercise
      that the shares are being purchased only for investment and without any present
      intention to sell or distribute such shares if, in the opinion of counsel for
      the Company, such a representation is required by any of the aforementioned
      applicable provisions of law.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    23. Term
      of Plan.
      The
      Plan shall become effective upon the earlier to occur of its adoption by the
      Board or its approval by the shareholders of the Company. It shall continue
      in
      effect for a term of ten (10) years unless sooner terminated under Section
      20
      hereof.

     

    24. Information
      to Plan Participants.
      The
      Company shall provide to each participant in this Plan and to each individual
      who acquires shares of Common Stock pursuant to the Plan, not less frequently
      than annually during the period such participant has one or more options to
      purchase the shares of Common Stock outstanding, and, in the case of an
      individual who acquires shares of Common Stock pursuant to the Plan, during
      the
      period such individual owns such shares, copies of annual financial statements.
      The Company shall not be required to provide such statements to key employees
      whose duties in connection with the Company assure their access to equivalent
      information.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    

     

    EXHIBIT
      A

     

    ALTIGEN
      COMMUNICATIONS, INC.

     

    1999
      EMPLOYEE STOCK PURCHASE PLAN

     

    SUBSCRIPTION
      AGREEMENT

     

    

     

    

      
        	
                ____
                  Original Application

              	
                Enrollment
                  Date: ___________

              

      

    

    _____
      Change in Payroll Deduction Rate

    _____
      Change of Beneficiary(ies)

     

    
      	
              1.

            	
              ____________________
                hereby elects to participate in the AltiGen Communications, Inc.
                1999
                Employee Stock Purchase Plan, as amended (the “Employee Stock Purchase
                Plan”) and sub-scribes to purchase shares of the Company’s Common Stock in
                accordance with this Sub-scription Agreement and the Employee Stock
                Purchase Plan.

            

    

     

    
      	
              2.

            	
              I
                hereby authorize payroll deductions from each paycheck in the amount
                of
                ____% of my Compensation on each payday (from 1 to _____) during
                the
                Offering Period in accordance with the Employee Stock Purchase Plan.
                (Please note that no fractional percentages are
                permitted.)

            

    

     

    
      	
              3.

            	
              I
                understand that said payroll deductions shall be accumulated for
                the
                purchase of shares of Common Stock at the applicable Purchase Price
                determined in accordance with the Employee Stock Purchase Plan. I
                understand that if I do not withdraw from an Offering Period, any
                accumulated payroll deductions will be used to automatically exercise
                my
                option.

            

    

     

    
      	
              4.

            	
              I
                have received a copy of the complete Employee Stock Purchase Plan.
                I
                understand that my participation in the Employee Stock Purchase Plan
                is in
                all respects subject to the terms of the Plan. I understand that
                my
                ability to exercise the option under this Subscription Agreement
                is
                subject to share-holder approval of the Employee Stock Purchase
                Plan.

            

    

     

    
      	
              5.

            	
              Shares
                purchased for me under the Employee Stock Purchase Plan should be
                issued
                in the name(s) of (Employee or Employee and Spouse
                only).

            

    

     

    
      	
              6.

            	
              I
                understand that if I dispose of any shares received by me pursuant
                to the
                Plan within two (2) years after the Enrollment Date (the first day
                of the
                Offering Period during which I purchased such shares) or one (1)
                year
                after the Exercise Date, I will be treated for federal income tax
                purposes
                as having received ordinary income at the time of such disposition
                in an
                amount equal to the excess of the fair market value of the shares
                at the
                time such shares were purchased by me over the price which I paid
                for the
                shares. I
                hereby agree to notify the Company in writing within thirty (30)
                days
                after the date of any disposition of my shares and I will make adequate
                provision for Federal, state or other tax withholding obligations,
                if any,
                which arise upon the disposition of the Common Stock.
                The Company may, but will not be obligated to, withhold from my
                compensation the amount neces-sary to meet any applicable withholding
                obligation including any withholding necessary to make available
                to the
                Company any tax deductions or benefits attributable to sale or early
                disposition of Common Stock by me. If I dispose of such shares at
                any time
                after the expiration of the 2-year and 1-year holding periods, I
                understand that I will be treated for federal income tax purposes
                as
                having received income only at the time of such disposition, and
                that such
                income will be taxed as ordinary income only to the extent of an
                amount
                equal to the lesser of (1) the excess of the fair market value of
                the
                shares at the time of such disposition over the purchase price which
                I
                paid for the shares, or (2) fifteen percent (15%) of the fair market
                value
                of the shares on the first day of the Offering Period. The remainder
                of
                the gain, if any, recognized on such disposition will be taxed as
                capital
                gain.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.

            	
              I
                hereby agree to be bound by the terms of the Employee Stock Purchase
                Plan.
                The effectiveness of this Subscription Agreement is dependent upon
                my
                eligibility to participate in the Employee Stock Purchase
                Plan.

            

    

     

    
      	
              8.

            	
              In
                the event of my death, I hereby designate the following as my
                beneficiary(ies) to receive all payments and shares due me under
                the
                Employee Stock Purchase Plan:

            

    

     

    NAME:
      (Please print)_____________________________________________________

    (First)   (Middle)  (Last)

     

    
      	
               

            	 	 
	Relationship	 	
               

               

            
	 	 	
              (Address)

            

    

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              Employee’s
                Social

            	 	 	 
	
              Security
                Number:

            	 	 	 
	 	 	 	 
	
              Employee’s
                Address:

            	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

     

     

    I
      UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
      SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

     

    
      	 	 	
            	 
	Dated:	 	
            	 
	 	 	 	Signature
              of Employee
	 	 	
            	 
	 	 	 	      
	 	 	 	
              Spouse’s
                Signature (If beneficiary other than
                spouse)

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    ALTIGEN
      COMMUNICATIONS, INC.

     

    1999
      EMPLOYEE STOCK PURCHASE PLAN

     

    NOTICE
      OF WITHDRAWAL

     

    

     

    The
      undersigned participant in the Offering Period of the AltiGen Communications,
      Inc. 1999 Employee Stock Purchase Plan which began on __________-__, ______
      (the
“Enrollment Date”) hereby notifies the Company that he or she hereby withdraws
      from the Offering Period. He or she hereby directs the Company to pay to the
      undersigned as promptly as practicable all the payroll deductions credited
      to
      his or her account with respect to such Offering Period. The undersigned
      understands and agrees that his or her option for such Offering Period will
      be
      automatically terminated. The undersigned understands further that no further
      payroll deductions will be made for the purchase of shares in the current
      Offering Period and the undersigned shall be eligible to participate in
      succeeding Offering Periods only by delivering to the Company a new Subscription
      Agreement.

    

      
        	 	
                 

                Name
                  and Address of Participant:

              
	 	
                 

                 

              
	 	
                 

                 

              
	 	
                 

                 

              
	 	
                 

                Signature:

              
	 	
                 

                 

              
	 	
                 

                Date:

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