Document:

Exhibit
10.6

SECOND
AMENDMENT TO LOAN AND SECURITY AGREEMENT

This Second
Amendment to Loan and Security Agreement (this “Amendment”) is entered into as
of August 18, 2006, by and between COMERICA BANK (“Bank”) and COMMODORE
RESOURCES (NEVADA), INC., LYRIS TECHNOLOGIES INC., UPTILT INC., MCC NEVADA,
INC. and HALSEY ACQUISITION CALIFORNIA, INC. (each a “Borrower” and
collectively, “Borrowers”).

RECITALS

Commodore
Resources (Nevada), Inc., Lyris Technologies Inc., Uptilt Inc. and Bank are
parties to that certain Loan and Security Agreement dated as of October 4,
2005, as amended from time to time including by that certain First Amendment to
Loan and Security Agreement dated as of April 25, 2006 (the “Agreement”). The
parties desire to amend the Agreement in accordance with the terms of this
Amendment to, among other things, add MCC NEVADA, INC. and HALSEY ACQUISITION
CALIFORNIA, INC. as Borrowers.

NOW, THEREFORE,
the parties agree as follows:

1.             All references in the Loan
Documents to the term “Borrowers” shall hereafter mean and refer to COMMODORE
RESOURCES (NEVADA), INC., LYRIS TECHNOLOGIES INC., UPTILT INC., MCC NEVADA,
INC. and HALSEY ACQUISITION CALIFORNIA, INC., and each such entity shall
individually be referred to as a Borrower under the Loan Documents. Upon
consummation of the ClickTracks Acquisition, Halsey Acquisition California,
Inc. will merge with and into ClickTracks Analytics, Inc. and thereafter, all
references in the Loan Documents to “Halsey Acquisition California, Inc.” shall
mean and refer to “ClickTracks Analytics, Inc.”

2.             All references in the Loan
Documents to “Admiral Holdings, Inc.” are hereby deleted in their entirety and
such entity shall no longer be a Guarantor under the Loan Documents.

3.             The following defined terms in
Section 1.1 of the Agreement hereby are added, amended or restated as follows:

“Alberta Sub”
means 1254412 Alberta ULC, an unlimited liability company formed under the laws
of the Province of Alberta, a wholly owned subsidiary of Commodore.

“Borrower State”
means Nevada, Delaware, Delaware, Nevada and California the states under whose
laws COMMODORE RESOURCES (NEVADA), INC., LYRIS TECHNOLOGIES INC., UPTILT INC.,
MCC NEVADA, INC. and HALSEY ACQUISITION CALIFORNIA, INC., respectively, is
organized.

“Chief Executive
Office State means Nevada, California, California, Nevada and California where
COMMODORE RESOURCES (NEVADA), INC.’s, LYRIS TECHNOLOGIES INC.’s, UPTILT INC.’s,
MCC NEVADA, INC.’s and HALSEY ACQUISITION CALIFORNIA, INC.’s, chief executive
office is located, respectively.

“ClickTracks”
means ClickTracks Analytics, Inc., a California corporation.

“ClickTracks
Acquisition” means the acquisition of ClickTracks, by Commodore, pursuant to
the merger of Merger Sub with and into ClickTracks with ClickTracks surviving
the merger as a wholly owned subsidiary of Commodore and the consummation of
any related transactions in connection therewith.

“Commodore” means
Borrower Commodore Resources (Nevada), Inc.

“Guarantors” means
J.L. Halsey Corporation, a Delaware corporation and Admiral Management Company,
a Delaware corporation.

“Hot Banana
Acquisition” means the acquisition by Commodore, through Alberta Sub, of one
hundred percent (100%) of the issued and outstanding equity interests in Hot
Banana Software, Inc., a corporation

 1
 

 

amalgamated under the
laws of the Province of Ontario and the consummation of any related
transactions in connection therewith.

“Merger Sub” means
Borrower Halsey Acquisition California, Inc., a wholly owned subsidiary of Commodore.

“Permitted
Transfer” means the conveyance, sale, lease, transfer or disposition by a
Guarantor, a Borrower or any Subsidiary of:

(a)           Inventory in the ordinary course of
business;

(b)           licenses and similar arrangements for
the use of the property of a Guarantor or a Borrower or its Subsidiaries in the
ordinary course of business;

(c)           cash to any Guarantor to satisfy
mandatory tax payments with respect to a Borrower:

(d)           cash or other assets to Guarantors
not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) in the
aggregate in the year 2006 and beginning on January 1, 2007, cash or other assets
to Guarantors not to exceed Two Million Dollars ($2,000,000) in the aggregate
in any subsequent year;

(e)           cash to Subsidiaries who are not
Borrowers or Guarantors hereunder in an aggregate amount not to exceed Three
Million Two Hundred Thousand Dollars ($3,200,000) to be used in connection with
the Hot Banana Acquisition and to be used for such Subsidiaries working capital
on a going forward basis;

(f)            cash to foreign Subsidiaries who are
not Borrowers or Guarantors hereunder in an aggregate amount not to exceed Five
Hundred Thousand Dollars ($500,000) in the aggregate per year to be used for
such Subsidiaries working capital;

(g)           any property to a Borrower;

(h)           worn-out or obsolete Equipment; or

(i)            other assets of Borrowers and their
Subsidiaries that do not in the aggregate exceed Two Hundred Fifty Thousand
Dollars ($250,000) during any fiscal year.

“Subordinated Debt”
means any debt or deferred payments incurred or owing by a Borrower or a Guarantor
that is subordinated in writing to the debt owing by such Borrower or such
Guarantor to Bank on terms reasonably acceptable to Bank (and identified as
being such by such Borrower or Guarantor and Bank).

4.             Section 6.7(b) of the Agreement is
hereby amended and restated in its entirety to read as follows:

“(b)         EBITDA. Measured monthly on a
rolling three-month basis, an EBITDA of not less than (i) One Million Two
Hundred Fifty Thousand Dollars ($1,250,000) for the measuring period ending July
31, 2006 through the measuring period ending September 30, 2006, (ii) One
Million Five Hundred Thousand Dollars ($1,500,000) for the measuring period
ending October 31, 2006 through the measuring period ending November 30, 2006,
(iii) Two Million Dollars ($2,000,000) for the measuring period ending December
31, 2006 through the measuring period ending February 28, 2007, and (ii) Two
Million Five Hundred Thousand Dollars ($2,500,000) at all times thereafter.”

5.             Exhibit C to the Agreement is
hereby replaced with Exhibit C attached hereto.

6.             The Schedule to the Agreement is
hereby replaced with the Schedule attached hereto.

 2
 

 

7.             Bank hereby consents to the entry
by Borrowers and Guarantors into the Hot Banana Acquisition and the ClickTracks
Acquisition and waives any violations of Sections 6.9, 6.10, 7.3 and 7.8 of the
Agreement that may occur in connection therewith or the transaction
contemplated thereby so long as no Event of Default has occurred or is
continuing.

8.             No course of dealing on the part of
Bank or its officers, nor any failure or delay in the exercise of any right by
Bank, shall operate as a waiver thereof, and any single or partial exercise of
any such right shall not preclude any later exercise of any such right. Bank’s
failure at any time to require strict performance by Borrowers of any provision
shall not affect any right of Bank thereafter to demand strict compliance and
performance. Any suspension or waiver of a right must be in writing signed by
an officer of Bank.

9.             Unless otherwise defined, all
initially capitalized terms in this Amendment shall be as defined in the
Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and
confirmed in all respects. Except as expressly set forth herein, the execution,
delivery, and performance of this Amendment shall not operate as a waiver of,
or as an amendment of, any right, power, or remedy of Bank under the Agreement,
as in effect prior to the date hereof.

10.           Each Borrower represents and warrants
that the Representations and Warranties contained in the Agreement are true and
correct in all material respects as of the date of this Amendment, and that no
Event of Default has occurred and is continuing.

11.           As a condition to the effectiveness
of this Amendment, Bank shall have received, in form and substance satisfactory
to Bank, the following:

(a)           this Amendment, duly executed by each
Borrower;

(b)           a Certificate of the Secretary of
each Borrower with respect to incumbency and resolutions authorizing the
execution and delivery of this Amendment;

(c)           an Intellectual Property Security
Agreement executed by each of MCC NEVADA, INC. and HALSEY ACQUISITION
CALIFORNIA, INC.

(d)           Assignments Separate from Certificate
(Stock Powers) executed by Commodore with respect to 65% of the Shares of
Alberta Sub, Merger Sub and MCC NEVADA, INC.;

(e)           Fully executed copies of the
documents evidencing the Hot Banana Acquisition and the ClickTracks
Acquisition;

(f)            Subordination Agreements signed by
all holders of Subordinated Debt;

(g)           all reasonable Bank Expenses incurred
through the date of this Amendment, which may be debited from any of Borrowers’
accounts; and

(h)           such other documents, and completion
of such other matters, as Bank may reasonably deem necessary or appropriate.

12.           This Amendment may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one instrument.

 3

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the first date above written. 

	
   

  	
  COMMODORE RESOURCES (NEVADA), INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LYRIS TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UPTILT RESOURCES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MCC NEVADA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HALSEY ACQUISITION CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Signature Page to Second Amendment to Loan & Security
Agreement]

 

EXHIBIT C

COMPLIANCE CERTIFICATE

TO:                         COMERICA BANK

FROM:                  COMMODORE RESOURCES (NEVADA),
INC., for itself and on behalf of all Borrowers

The undersigned authorized
officer of COMMODORE RESOURCES (NEVADA), INC., for itself and on behalf of all
Borrowers, hereby certifies that in accordance with the terms and conditions of
the Loan and Security Agreement between Borrowers and Bank (the “Agreement”),
(i) Each Borrower is in complete compliance for the period ending                                
with all required covenants except as noted below and (ii) all representations
and warranties of each Borrower stated in the Agreement are true and correct as
of the date hereof.  Attached herewith
are the required documents supporting the above certification.  The Officer further certifies that these are
prepared in accordance with Generally Accepted Accounting Principles (GAAP) and
are consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.

Please indicate compliance status by circling Yes/No
under “Complies” column.

	
  Reporting
  Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly financial statements

  	
   

  	
  Monthly within 30 days

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  10K

  	
   

  	
  Within 90 days of fiscal year end

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  10Q

  	
   

  	
  Within 45 days of quarter end

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  A/R & A/P Agings

  	
   

  	
  Monthly within 30 days

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  Compliance Cert.

  	
   

  	
  Monthly within 30 days

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  A/R Audit

  	
   

  	
  Initial and Annual

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  IP Report

  	
   

  	
  Quarterly within 45 days

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  Total amount of Borrowers’ cash and investments

  	
   

  	
  Amount: $                

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  Total amount of Borrowers’ cash and investments maintained
  with Bank 

  	
   

  	
  Amount: $                

  	
   

  	
  Yes 

  	
   

  	
  No 

  	
   

  

 

	
  Financial Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Measured on a Monthly Basis:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Senior Debt
  to EBITDA

  	
   

  	
   

  	
   

  	
       : 1.00

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  Through 11/30/07

  	
   

  	
  2.00:1.00 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12/1/067 and
  thereafter

  	
   

  	
  1.50:1.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum EBITDA

  	
   

  	
   

  	
   

  	
  $              

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  7/31/06 through
  9/30/06

  	
   

  	
  $ 1,250,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/1/06 through
  11/30/06

  	
   

  	
  $ 1,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12/1/06 through
  2/28/07

  	
   

  	
  $ 2,000,000 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/1/07 and
  thereafter

  	
   

  	
  $ 2,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum Fixed
  Charge Coverage

  	
   

  	
  1.25: 1.00

  	
   

  	
       : 1.00

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  

 

	
  Comments Regarding Exceptions: See Attached.

  	
  BANK USE ONLY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sincerely,

  	
  Received by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AUTHORIZED
  SIGNER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SIGNATURE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Verified:

  	
   

  	
   

  
	
   

  	
  TITLE

  	
   

  	
   

  	
  AUTHORIZED
  SIGNER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DATE

  	
   

  	
  Compliance Status

  	
  Yes

  	
  No

  
									

 

 

SCHEDULE OF EXCEPTIONS

[UPDATED SCHEDULE TO BE
PROVIDED BY BORROWER AND ATTACHED]

 

Corporation
Resolutions and Incumbency Certification 

Authority to Procure Loans

I certify that I am the duly elected and qualified
Secretary of COMMODORE RESOURCES (NEVADA), INC.; that the following is a true
and correct copy of resolutions duly adopted by the Board of Directors of the
Corporation in accordance with its bylaws and applicable statutes.

Copy of Resolutions:

Be it Resolved, That:

1.             Any
one (1) of the following                                                       
(insert titles only) of the Corporation are/is authorized, for, on behalf of,
and in the name of the Corporation to:

(a)           Negotiate and procure loans, letters
of credit and other credit or financial accommodations from Comerica Bank (“Bank”),
a Michigan banking corporation, including, without limitation, that certain
Loan and Security Agreement dated as of October 4, 2005, as may subsequently be
amended from time to time, including but not limited to by that certain First
Amendment to Loan and Security Agreement dated as of April 25, 2006 and that
certain Second Amendment to Loan and Security Agreement dated as of August 18,
2006;

(b)           Discount with the Bank, commercial or
other business paper belonging to the Corporation made or drawn by or upon
third parties, without limit as to amount;

(c)           Purchase, sell, exchange, assign,
endorse for transfer and/or deliver certificates and/or instruments
representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation;

(d)           Give security for any liabilities of
the Corporation to the Bank by grant, security interest, assignment, lien, deed
of trust or mortgage upon any real or personal property, tangible or intangible
of the Corporation; and

(e)           Execute and deliver in form and
content as may be required by the Bank any and all notes, evidences of
Indebtedness, applications for letters of credit, guaranties, subordination
agreements, loan and security agreements, financing statements, assignments,
liens, deeds of trust, mortgages, trust receipts and other agreements,
instruments or documents to carry out the purposes of these Resolutions, any or
all of which may relate to all or to substantially all of the Corporation’s
property and assets.

2.             Said Bank be and it is authorized and directed to pay
the proceeds of any such loans or discounts as directed by the persons so
authorized to sign, whether so payable to the order of any of said persons in
their individual capacities or not, and whether such proceeds are deposited to
the individual credit of any of said persons or not;

3.             Any and all agreements, instruments and documents
previously executed and acts and things previously done to carry out the
purposes of these Resolutions are ratified, confirmed and approved as the act
or acts of the Corporation.

4.             These Resolutions shall continue in force, and the Bank
may consider the holders of said offices and their signatures to be and
continue to be as set forth in a certified copy of these Resolutions delivered
to the Bank, until notice to the contrary in writing is duly served on the Bank
(such notice to have no effect on any action previously taken by the Bank in
reliance on these Resolutions).

5.             Any person, corporation or other legal entity dealing
with the Bank may rely upon a certificate signed by an officer of the Bank to
effect that these Resolutions and any agreement, instrument or document
executed pursuant to them are still in full force and effect and binding upon
the Corporation.

 

6.             The Bank may consider the holders of the offices of the
Corporation and their signatures, respectively, to be and continue to be as set
forth in the Certificate of the Secretary of the Corporation until notice to
the contrary in writing is duly served on the Bank.

I further certify that the above Resolutions are in
full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these
Resolutions have been properly noted in the corporate books and records, and
have not been rescinded, annulled, revoked or modified; that neither the
foregoing Resolutions nor any actions to be taken pursuant to them are or will
be in contravention of any provision of the articles of incorporation or bylaws
of the Corporation or of any agreement, indenture or other instrument to which
the Corporation is a party or by which it is bound; and that neither the
articles of incorporation nor bylaws of the Corporation nor any agreement, indenture
or other instrument to which the Corporation is a party or by which it is bound
require the vote or consent of shareholders of the Corporation to authorize any
act, matter or thing described in the foregoing Resolutions.

I further certify that the following named persons
have been duly elected to the offices set opposite their respective names, that
they continue to hold these offices at the present time, and that the
signatures which appear below are the genuine, original signatures of each
respectively:

(PLEASE
SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW)

	
  NAME (Type or
  Print)

  	
   

  	
  TITLE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

In Witness Whereof, I have affixed my name as
Secretary and have caused the corporate seal (where available) of said
Corporation to be affixed on August 18, 2006.

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  Secretary

  
	
   

  	
   

  
	
   

  
	
  The Above
  Statements are Correct.

  	
   

  	
   

  
	
   

  	
  SIGNATURE OF OFFICER OR DIRECTOR OR, IF NONE. A

  
	
   

  	
  SHAREHOLDER OTHER THAN SECRETARY WHEN SECRETARY IS

  
	
   

  	
  AUTHORIZED TO SIGN ALONE.

  
				

 

Failure to complete the above when
the Secretary is authorized to sign alone shall constitute a certification by
the Secretary that the Secretary is the sole Shareholder, Director and Officer
of the Corporation.

 

Corporation
Resolutions and Incumbency Certification 

Authority to Procure Loans

I certify that I am the duly elected and qualified
Secretary of LYRIS TECHNOLOGIES INC.; that the following is a true and correct
copy of resolutions duly adopted by the Board of Directors of the Corporation
in accordance with its bylaws and applicable statutes.

Copy of Resolutions:

Be it Resolved, That:

1.             Any
one (1) of the following                                                      
(insert titles only) of the Corporation are/is authorized, for, on behalf of,
and in the name of the Corporation to:

(a)           Negotiate and procure loans, letters
of credit and other credit or financial accommodations from Comerica Bank (“Bank”),
a Michigan banking corporation, including, without limitation, that certain
Loan and Security Agreement dated as of October 4, 2005, as may subsequently be
amended from time to time, including but not limited to by that certain First
Amendment to Loan and Security Agreement dated as of April 25, 2006 and that
certain Second Amendment to Loan and Security Agreement dated as of August 18,
2006;

(b)           Discount with the Bank, commercial or
other business paper belonging to the Corporation made or drawn by or upon
third parties, without limit as to amount;

(c)           Purchase, sell, exchange, assign,
endorse for transfer and/or deliver certificates and/or instruments
representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation;

(d)           Give security for any liabilities of
the Corporation to the Bank by grant, security interest, assignment, lien, deed
of trust or mortgage upon any real or personal property, tangible or intangible
of the Corporation; and

(e)           Execute and deliver in form and
content as may be required by the Bank any and all notes, evidences of
Indebtedness, applications for letters of credit, guaranties, subordination
agreements, loan and security agreements, financing statements, assignments,
liens, deeds of trust, mortgages, trust receipts and other agreements, instruments
or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property
and assets.

2.             Said Bank be and it is authorized and directed to pay
the proceeds of any such loans or discounts as directed by the persons so
authorized to sign, whether so payable to the order of any of said persons in
their individual capacities or not, and whether such proceeds are deposited to
the individual credit of any of said persons or not;

3.             Any and all agreements, instruments and documents
previously executed and acts and things previously done to carry out the
purposes of these Resolutions are ratified, confirmed and approved as the act
or acts of the Corporation.

4.             These Resolutions shall continue in force, and the Bank
may consider the holders of said offices and their signatures to be and
continue to be as set forth in a certified copy of these Resolutions delivered
to the Bank, until notice to the contrary in writing is duly served on the Bank
(such notice to have no effect on any action previously taken by the Bank in
reliance on these Resolutions).

5.             Any person, corporation or other legal entity dealing
with the Bank may rely upon a certificate signed by an officer of the Bank to
effect that these Resolutions and any agreement, instrument or document
executed pursuant to them are still in full force and effect and binding upon
the Corporation.

 

6.             The Bank may consider the holders of the offices of the
Corporation and their signatures, respectively, to be and continue to be as set
forth in the Certificate of the Secretary of the Corporation until notice to
the contrary in writing is duly served on the Bank.

I further certify that the above Resolutions are in
full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these
Resolutions have been properly noted in the corporate books and records, and
have not been rescinded, annulled, revoked or modified; that neither the
foregoing Resolutions nor any actions to be taken pursuant to them are or will
be in contravention of any provision of the articles of incorporation or bylaws
of the Corporation or of any agreement, indenture or other instrument to which
the Corporation is a party or by which it is bound; and that neither the
articles of incorporation nor bylaws of the Corporation nor any agreement,
indenture or other instrument to which the Corporation is a party or by which
it is bound require the vote or consent of shareholders of the Corporation to
authorize any act, matter or thing described in the foregoing Resolutions.

I further certify that the following named persons
have been duly elected to the offices set opposite their respective names, that
they continue to hold these offices at the present time, and that the
signatures which appear below are the genuine, original signatures of each
respectively:

(PLEASE
SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW)

	
  NAME (Type or
  Print)

  	
   

  	
  TITLE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

In Witness Whereof, I have affixed my name as
Secretary and have caused the corporate seal (where available) of said
Corporation to be affixed on August 18, 2006.

	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  

  	
  Secretary

  
	
   

  	
   

  
	
   

  
	
  The Above
  Statements are Correct.

  	
   

  	
   

  
	
   

  	
  SIGNATURE OF
  OFFICER OR DIRECTOR OR, IF NONE. A

  
	
   

  	
  SHAREHOLDER
  OTHER THAN SECRETARY WHEN SECRETARY IS

  
	
   

  	
  AUTHORIZED TO
  SIGN ALONE.

  
				

 

Failure to complete the above when
the Secretary is authorized to sign alone shall constitute a certification by
the Secretary that the Secretary is the sole Shareholder, Director and Officer
of the Corporation.

 

Corporation
Resolutions and Incumbency Certification 

Authority to Procure Loans

I certify that I am the duly elected and qualified
Secretary of UPTILT INC.; that the following is a true and correct copy of
resolutions duly adopted by the Board of Directors of the Corporation in
accordance with its bylaws and applicable statutes.

Copy of Resolutions:

Be it Resolved, That:

7.             Any
one (1) of the following                                                     
(insert titles only) of the Corporation are/is authorized, for, on behalf of,
and in the name of the Corporation to:

(a)           Negotiate and procure loans, letters
of credit and other credit or financial accommodations from Comerica Bank (“Bank”),
a Michigan banking corporation, including, without limitation, that certain
Loan and Security Agreement dated as of October 4, 2005, as may subsequently be
amended from time to time, including but not limited to by that certain First
Amendment to Loan and Security Agreement dated as of April 25, 2006 and that
certain Second Amendment to Loan and Security Agreement dated as of August 18,
2006;

(b)           Discount with the Bank, commercial or
other business paper belonging to the Corporation made or drawn by or upon
third parties, without limit as to amount;

(c)           Purchase, sell, exchange, assign,
endorse for transfer and/or deliver certificates and/or instruments
representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation;

(d)           Give security for any liabilities of
the Corporation to the Bank by grant, security interest, assignment, lien, deed
of trust or mortgage upon any real or personal property, tangible or intangible
of the Corporation; and

(e)           Execute and deliver in form and
content as may be required by the Bank any and all notes, evidences of
Indebtedness, applications for letters of credit, guaranties, subordination
agreements, loan and security agreements, financing statements, assignments,
liens, deeds of trust, mortgages, trust receipts and other agreements,
instruments or documents to carry out the purposes of these Resolutions, any or
all of which may relate to all or to substantially all of the Corporation’s
property and assets.

8.             Said Bank be and it is authorized and directed to pay
the proceeds of any such loans or discounts as directed by the persons so
authorized to sign, whether so payable to the order of any of said persons in
their individual capacities or not, and whether such proceeds are deposited to
the individual credit of any of said persons or not;

9.             Any and all agreements, instruments and documents
previously executed and acts and things previously done to carry out the
purposes of these Resolutions are ratified, confirmed and approved as the act
or acts of the Corporation.

10.           These Resolutions shall continue in
force, and the Bank may consider the holders of said offices and their signatures
to be and continue to be as set forth in a certified copy of these Resolutions
delivered to the Bank, until notice to the contrary in writing is duly served
on the Bank (such notice to have no effect on any action previously taken by
the Bank in reliance on these Resolutions).

 

11.           Any person, corporation or other
legal entity dealing with the Bank may rely upon a certificate signed by an
officer of the Bank to effect that these Resolutions and any agreement,
instrument or document executed pursuant to them are still in full force and
effect and binding upon the Corporation.

12.           The Bank may consider the holders of
the offices of the Corporation and their signatures, respectively, to be and
continue to be as set forth in the Certificate of the Secretary of the
Corporation until notice to the contrary in writing is duly served on the Bank.

I further certify that the above Resolutions are in
full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these
Resolutions have been properly noted in the corporate books and records, and
have not been rescinded, annulled, revoked or modified; that neither the
foregoing Resolutions nor any actions to be taken pursuant to them are or will
be in contravention of any provision of the articles of incorporation or bylaws
of the Corporation or of any agreement, indenture or other instrument to which
the Corporation is a party or by which it is bound; and that neither the
articles of incorporation nor bylaws of the Corporation nor any agreement,
indenture or other instrument to which the Corporation is a party or by which
it is bound require the vote or consent of shareholders of the Corporation to
authorize any act, matter or thing described in the foregoing Resolutions.

I further certify that the following named persons
have been duly elected to the offices set opposite their respective names, that
they continue to hold these offices at the present time, and that the
signatures which appear below are the genuine, original signatures of each
respectively:

(PLEASE
SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW)

	
  NAME (Type or
  Print)

  	
   

  	
  TITLE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

In Witness Whereof, I have affixed my name as
Secretary and have caused the corporate seal (where available) of said
Corporation to be affixed on August 18, 2006.

	
   

  	
   

  	
   

  
	
  

  	
   

  
	
  

  	
  Secretary

  
	
   

  	
   

  
	
   

  
	
  The Above
  Statements are Correct.

  	
   

  
	
   

  	
  SIGNATURE OF
  OFFICER OR DIRECTOR OR, IF NONE. A

  
	
   

  	
  SHAREHOLDER
  OTHER THAN SECRETARY WHEN SECRETARY IS

  
	
   

  	
  AUTHORIZED TO
  SIGN ALONE.

  
				

 

Failure to complete the above when
the Secretary is authorized to sign alone shall constitute a certification by
the Secretary that the Secretary is the sole Shareholder, Director and Officer
of the Corporation.

 

Corporation
Resolutions and Incumbency Certification 

Authority to Procure Loans

I certify that I am the duly elected and qualified
Secretary of MCC NEVADA, INC.; that the following is a true and correct copy of
resolutions duly adopted by the Board of Directors of the Corporation in
accordance with its bylaws and applicable statutes.

Copy of Resolutions:

Be it Resolved, That:

1.             Any
one (1) of the following                                                     
(insert titles only) of the Corporation are/is authorized, for, on behalf of,
and in the name of the Corporation to:

(a)           Negotiate and procure loans, letters
of credit and other credit or financial accommodations from Comerica Bank (“Bank”),
a Michigan banking corporation, including, without limitation, that certain
Loan and Security Agreement dated as of October 4, 2005, as may subsequently be
amended from time to time, including but not limited to by that certain First
Amendment to Loan and Security Agreement dated as of April 25, 2006 and that
certain Second Amendment to Loan and Security Agreement dated as of August 18,
2006;

(b)           Discount with the Bank, commercial or
other business paper belonging to the Corporation made or drawn by or upon
third parties, without limit as to amount;

(c)           Purchase, sell, exchange, assign,
endorse for transfer and/or deliver certificates and/or instruments
representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation;

(d)           Give security for any liabilities of
the Corporation to the Bank by grant, security interest, assignment, lien, deed
of trust or mortgage upon any real or personal property, tangible or intangible
of the Corporation; and

(e)           Execute and deliver in form and
content as may be required by the Bank any and all notes, evidences of
Indebtedness, applications for letters of credit, guaranties, subordination
agreements, loan and security agreements, financing statements, assignments,
liens, deeds of trust, mortgages, trust receipts and other agreements,
instruments or documents to carry out the purposes of these Resolutions, any or
all of which may relate to all or to substantially all of the Corporation’s
property and assets.

2.             Said Bank be and it is authorized and directed to pay
the proceeds of any such loans or discounts as directed by the persons so
authorized to sign, whether so payable to the order of any of said persons in
their individual capacities or not, and whether such proceeds are deposited to
the individual credit of any of said persons or not;

3.             Any and all agreements, instruments and documents
previously executed and acts and things previously done to carry out the
purposes of these Resolutions are ratified, confirmed and approved as the act
or acts of the Corporation.

4.             These Resolutions shall continue in force, and the Bank
may consider the holders of said offices and their signatures to be and
continue to be as set forth in a certified copy of these Resolutions delivered
to the Bank, until notice to the contrary in writing is duly served on the Bank
(such notice to have no effect on any action previously taken by the Bank in
reliance on these Resolutions).

 

5.             Any person, corporation or other legal entity dealing
with the Bank may rely upon a certificate signed by an officer of the Bank to
effect that these Resolutions and any agreement, instrument or document
executed pursuant to them are still in full force and effect and binding upon
the Corporation.

6.             The Bank may consider the holders of the offices of the
Corporation and their signatures, respectively, to be and continue to be as set
forth in the Certificate of the Secretary of the Corporation until notice to
the contrary in writing is duly served on the Bank.

I further certify that the above Resolutions are in
full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these
Resolutions have been properly noted in the corporate books and records, and
have not been rescinded, annulled, revoked or modified; that neither the
foregoing Resolutions nor any actions to be taken pursuant to them are or will
be in contravention of any provision of the articles of incorporation or bylaws
of the Corporation or of any agreement, indenture or other instrument to which
the Corporation is a party or by which it is bound; and that neither the
articles of incorporation nor bylaws of the Corporation nor any agreement,
indenture or other instrument to which the Corporation is a party or by which
it is bound require the vote or consent of shareholders of the Corporation to
authorize any act, matter or thing described in the foregoing Resolutions.

I further certify that the following named persons
have been duly elected to the offices set opposite their respective names, that
they continue to hold these offices at the present time, and that the
signatures which appear below are the genuine, original signatures of each
respectively:

(PLEASE
SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW)

	
  NAME (Type or
  Print)

  	
   

  	
  TITLE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

In Witness Whereof, I have affixed my name as
Secretary and have caused the corporate seal (where available) of said
Corporation to be affixed on August 18, 2006.

	
   

  	
   

  	
   

  
	
  

  	
   

  
	
  

  	
  Secretary

  
	
   

  	
   

  
	
   

  
	
  The Above
  Statements are Correct.

  	
   

  
	
   

  	
  SIGNATURE OF
  OFFICER OR DIRECTOR OR, IF NONE. A

  
	
   

  	
  SHAREHOLDER
  OTHER THAN SECRETARY WHEN SECRETARY IS

  
	
   

  	
  AUTHORIZED TO
  SIGN ALONE.

  
				

 

Failure to complete the above when
the Secretary is authorized to sign alone shall constitute a certification by
the Secretary that the Secretary is the sole Shareholder, Director and Officer
of the Corporation.

 

Corporation
Resolutions and Incumbency Certification 

Authority to Procure Loans

I certify that I am the duly elected and qualified
Secretary of HALSEY ACQUISITION CALIFORNIA, INC.; that the following is a true
and correct copy of resolutions duly adopted by the Board of Directors of the
Corporation in accordance with its bylaws and applicable statutes.

Copy of Resolutions:

Be it Resolved, That:

7.             Any
one (1) of the following                                                     
(insert titles only) of the Corporation are/is authorized, for, on behalf of,
and in the name of the Corporation to:

(a)           Negotiate and procure loans, letters
of credit and other credit or financial accommodations from Comerica Bank (“Bank”),
a Michigan banking corporation, including, without limitation, that certain
Loan and Security Agreement dated as of October 4, 2005, as may subsequently be
amended from time to time, including but not limited to by that certain First
Amendment to Loan and Security Agreement dated as of April 25, 2006 and that
certain Second Amendment to Loan and Security Agreement dated as of August 18,
2006;

(b)           Discount with the Bank, commercial or
other business paper belonging to the Corporation made or drawn by or upon
third parties, without limit as to amount;

(c)           Purchase, sell, exchange, assign,
endorse for transfer and/or deliver certificates and/or instruments
representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation;

(d)           Give security for any liabilities of
the Corporation to the Bank by grant, security interest, assignment, lien, deed
of trust or mortgage upon any real or personal property, tangible or intangible
of the Corporation; and

(e)           Execute and deliver in form and
content as may be required by the Bank any and all notes, evidences of
Indebtedness, applications for letters of credit, guaranties, subordination
agreements, loan and security agreements, financing statements, assignments,
liens, deeds of trust, mortgages, trust receipts and other agreements, instruments
or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property
and assets.

8.             Said Bank be and it is authorized and directed to pay
the proceeds of any such loans or discounts as directed by the persons so
authorized to sign, whether so payable to the order of any of said persons in
their individual capacities or not, and whether such proceeds are deposited to
the individual credit of any of said persons or not;

9.             Any and all agreements, instruments and documents
previously executed and acts and things previously done to carry out the
purposes of these Resolutions are ratified, confirmed and approved as the act
or acts of the Corporation.

10.           These Resolutions shall continue in
force, and the Bank may consider the holders of said offices and their
signatures to be and continue to be as set forth in a certified copy of these
Resolutions delivered to the Bank, until notice to the contrary in writing is
duly served on the Bank (such notice to have no effect on any action previously
taken by the Bank in reliance on these Resolutions).

 

11.           Any person, corporation or other
legal entity dealing with the Bank may rely upon a certificate signed by an
officer of the Bank to effect that these Resolutions and any agreement,
instrument or document executed pursuant to them are still in full force and
effect and binding upon the Corporation.

12.           The Bank may consider the holders of
the offices of the Corporation and their signatures, respectively, to be and
continue to be as set forth in the Certificate of the Secretary of the
Corporation until notice to the contrary in writing is duly served on the Bank.

I further certify that the above Resolutions are in
full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these
Resolutions have been properly noted in the corporate books and records, and
have not been rescinded, annulled, revoked or modified; that neither the
foregoing Resolutions nor any actions to be taken pursuant to them are or will
be in contravention of any provision of the articles of incorporation or bylaws
of the Corporation or of any agreement, indenture or other instrument to which
the Corporation is a party or by which it is bound; and that neither the
articles of incorporation nor bylaws of the Corporation nor any agreement,
indenture or other instrument to which the Corporation is a party or by which
it is bound require the vote or consent of shareholders of the Corporation to
authorize any act, matter or thing described in the foregoing Resolutions.

I further certify that the following named persons
have been duly elected to the offices set opposite their respective names, that
they continue to hold these offices at the present time, and that the
signatures which appear below are the genuine, original signatures of each
respectively:

(PLEASE
SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW)

	
  NAME (Type or
  Print)

  	
   

  	
  TITLE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

In Witness Whereof, I have affixed my name as
Secretary and have caused the corporate seal (where available) of said
Corporation to be affixed on August 18, 2006.

	
   

  	
   

  	
   

  
	
  

  	
   

  
	
  

  	
  Secretary

  
	
   

  	
   

  
	
   

  
	
  The Above
  Statements are Correct.

  	
   

  
	
   

  	
  SIGNATURE OF
  OFFICER OR DIRECTOR OR, IF NONE. A

  
	
   

  	
  SHAREHOLDER
  OTHER THAN SECRETARY WHEN SECRETARY IS

  
	
   

  	
  AUTHORIZED TO
  SIGN ALONE.

  
				

 

Failure to complete the above when
the Secretary is authorized to sign alone shall constitute a certification by
the Secretary that the Secretary is the sole Shareholder, Director and Officer
of the Corporation.Exhibit 10.5

AVISTAR
COMMUNICATIONS CORPORATION

2000 EMPLOYEE
STOCK PURCHASE PLAN

(As
amended effective August 1, 2006)

The following constitute the provisions of the 2000
Employee Stock Purchase Plan of Avistar Communications Corporation.

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 Internal Revenue Code of 1986, as
amended. 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 or any committee thereof designated by the Board of
Directors of the Company in accordance with Section 14 of the Plan.

(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 Avistar
Communications Corporation and any Designated Subsidiary of the Company.

(e)           “Compensation” shall mean all
cash compensation reportable on Form W-2, including without limitation base
straight time gross earnings, sales commissions, payments for overtime, shift
premiums, incentive compensation, incentive payments and bonuses, plus any
amounts contributed by the Employee to the Company’s 401(k) Plan from
compensation paid to the Employee by the Company.

(f)            “Designated Subsidiary” shall
mean any Subsidiary 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 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 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 National Market or The Nasdaq SmallCap 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
the periods of approximately six (6) months during which an option granted
pursuant to the Plan may be exercised, commencing (i) on the first Trading Day
on or after February 1 of each year and terminating on the last Trading Day in
the period ending the following July 31, approximately six (6) months later,
and (ii) on the first Trading Day on or after August 1 of each year and
terminating on the last Trading Day in the period ending the following January
31, approximately 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 2000
Employee Stock Purchase Plan.

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

(n)           “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.

 

 

(o)           “Subsidiary” shall mean a
corporation, domestic or foreign, of which not less than 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.

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

3.             Eligibility.

(a)           Any Employee (as defined in Section
2(g)) 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 Twenty-Five Thousand
Dollars ($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 Offering Periods with a new Offering Period
commencing on the first Trading Day on or after February 1 and August 1 each
year, or on such other date as the Board shall determine, and continuing
thereafter until terminated in accordance with Section 20 hereof. The Board
shall have the power to change the duration of Offering Periods (including the
commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced at least five (5) days prior
to the scheduled beginning of the first Offering Period to be affected thereafter.

5.             Participation.

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. 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.

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.

 

 

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.

(a)           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, including allowing such changes only at the beginning of each 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.

(b)           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 an Offering Period. Payroll deductions shall recommence
at the rate provided in such participant’s subscription agreement at the
beginning of the first Offering Period which is scheduled to end in the
following calendar year, unless terminated by the participant as provided in
Section 10 hereof.

(c)           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 Offering Price;
provided that in no event shall an Employee be permitted to purchase during each
Offering Period more than a number of shares determined by dividing $12,500 by
the Fair Market Value of a share of the Company’s Common Stock (subject to any
adjustment pursuant to Section 19) on the Enrollment Date, and provided further
that such purchase shall be subject to the limitations set forth in
Sections 3(b) and 13 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 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.

 

 

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 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 stockholders 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.

10.           Withdrawal.

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; provided, however,
that in the initial Offering Period, participants may be deemed to withdraw
from the Plan by declining or failing to send timely payment for the shares. 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.

(a)           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 1,500,000 shares together with an annual
increase to the number of shares reserved for issuance thereunder on the first
day of the Company’s fiscal year beginning in January 1, 2001, equal to the
lesser of (i) 900,000 shares, (ii) 3.0% of the outstanding shares of
the Company on the last day of the prior fiscal year or (iii) such amount
as 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.

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
stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each 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.

(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 Offering
Periods then in progress shall be shortened by setting a new Exercise Date (the
“New Exercise Date”) and any such 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 of Directors of the Company
may at any time and for any reason terminate or amend the Plan, including the
termination of any Offering Period then outstanding. 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 of
Directors 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 stockholders. Except as provided 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 stockholder
approval in such a manner and to such a degree as required.

(b)           Without stockholder 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.

23.           Term
of Plan.  The Plan shall become
effective upon the earlier to occur of its adoption by the Board of Directors
or its approval by the stockholders of the Company; provided, however, the Plan
shall not become effective until the effective date of the Company’s initial
public offering pursuant to a registration statement filed with the Securities
and Exchange Commission. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

 

 

EXHIBIT A

AVISTAR
COMMUNICATIONS CORPORATION

2000 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 Avistar Communications Corporation Employee
Stock Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to
purchase shares of the Company’s Common Stock in accordance with this Subscription
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 during the Offering Period in accordance with
the Employee Stock Purchase Plan. (Please note that the percentage withholding
must be between 1% and 15% and 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 stockholder 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 2 years after the Enrollment Date (the first day of the Offering Period
during which I purchased such shares) or one 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 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 necessary 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) 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)

  

 

	
  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)

  

 

 

 

EXHIBIT B

AVISTAR
COMMUNICATIONS CORPORATION

2000 EMPLOYEE
STOCK PURCHASE PLAN

NOTICE OF
WITHDRAWAL

The undersigned participant in the Offering Period of
the Avistar Communications Corporation 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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