Document:

exv10w10

 

Exhibit 10.10

SUBORDINATION AGREEMENT

     THIS SUBORDINATION AGREEMENT (this “Agreement”), dated as of                     , 2006, (the “Effective
Date”), by and between Silicon Valley Bank (“Senior Creditor”) and
                    , a                     (with its successors and assigns, “Subordinated Creditor”).
Capitalized terms used but not otherwise defined herein shall have the meanings given them in
Section 1 below.

RECITALS

     A. Starvox Communications, Inc., a California corporation and Capital Telecommunications, Inc.
(“Borrowers”), have entered into that certain Loan and Security Agreement dated                     , 2006
(as the same may be amended, restated, or otherwise modified from time to time, the “Senior
Creditor Agreement”), by and between Borrowers and Senior Creditor. The funds advanced to or owed
by Borrowers under the Senior Creditor Agreement shall be referred to collectively herein as the
“Senior Loans.” To secure the Senior Loans, Borrowers granted to Senior Creditor under the Senior
Creditor Agreement a security interest in all Borrowers’ personal property assets.

     B. Borrowers have entered or propose to into certain Subordinated Loan Documents with
Subordinated Creditor.

     C. Subordinated Creditor and Senior Creditor desire to establish and agree upon their
respective rights, priorities and interests governing their respective relationships with Borrowers
and any collateral for the loans granted pursuant to the Subordinated Loan Documents and the Senior
Loan Documents at all times on and after the Effective Date.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, Senior Creditor and Subordinated Creditor
hereby agree as follows:

1. DEFINITIONS; EFFECTIVENESS

     As used herein, the following terms shall have the following meanings:

     “Senior Debt” means any and all indebtedness and indebtedness and obligations
(including, without limitation, principal, premium (if any), interest, fees, charges, expenses,
costs, professional fees and expenses, and reimbursement obligations) at any time or from time to
time owing from Borrowers to Senior Creditor under the Senior Loan Documents or otherwise,
including but not limited to such amounts as may accrue or be incurred before or after default or
workout or the commencement of any liquidation, dissolution, bankruptcy, receivership, or
reorganization case by or against Borrowers.

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     “Senior Loan Documents” means the Senior Creditor Agreement and any security
agreement, promissory note, UCC financing statement, or any other agreement, instrument or document
executed by Borrowers pursuant to or in connection with the Senior Debt or the Senior Creditor
Agreement, as any of the foregoing may from time to time be amended, modified, supplemented,
extended, renewed, restated or replaced.

     “Subordinated Debt” means any and all indebtedness and obligations (including, without
limitation, principal, premium (if any), interest, fees, charges, expenses, costs, professional
fees and expenses, and reimbursement obligations) at any time or from time to time owing from
Borrowers to Subordinated Creditor under the Subordinated Loan Documents or otherwise, including
but not limited to such amounts as may accrue or be incurred before or after default or workout or
the commencement of any liquidation, dissolution, bankruptcy, receivership, or reorganization case
by or against Borrowers.

     “Subordinated Loan Documents” means any promissory note, loan or credit or similar
agreement, any financing statement, or any other agreement, instrument or document executed by
Borrowers pursuant to or in connection with the Subordinated Debt, as the same may from time to
time be amended, modified, supplemented, extended, renewed, restated or replaced.

     Unless otherwise specified, all references in this Agreement to a “Section” shall refer to the
corresponding Section in or to this Agreement. Other capitalized terms used herein and not
otherwise defined herein shall have the meaning given such terms in the Uniform Commercial Code as
in effect in the State of California, as in effect from time to time (the “UCC”).

2. SUBORDINATION

     (a) On the terms and conditions set forth below, Subordinated Creditor’s right to payment and
performance of the Subordinated Debt and any and all liens and security interests securing the
Subordinated Debt are hereby subordinated to Senior Creditor’s right to full and indefeasible
payment and performance of the Senior Debt and all liens and security interests securing the Senior
Debt. Subject to and except as set forth in Section 3, Subordinated Creditor shall not ask,
demand, sue for, take or receive from Borrowers, by setoff or in any other manner, the whole or any
part of any monies which may now or hereafter be owing by Borrowers to Subordinated Creditor, or be
owing by any other person to Subordinated Creditor under a guaranty or similar instrument, on
account of the Subordinated Debt, nor any collateral security for any of the foregoing, including,
without limitation, any personal property collateral granted to Subordinated Creditor pursuant to
the Subordinated Loan Documents, unless and until the Senior Debt shall have been fully paid in
cash and all commitments to extend credit under the Senior Creditor Agreement shall have been
terminated (the temporary reduction of outstanding obligations, liabilities and indebtedness of
Borrowers to Senior Creditor not being deemed to constitute full payment or satisfaction thereof).

     (b) Subordinated Creditor shall not create, maintain or perfect any security interest in or
lien on any property of Borrowers (other than any security interests or liens that may exist on the
date hereof in favor of Subordinated Creditor in certain of Borrowers’ personal property

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under and as described in the Subordinated Loan Documents, which liens and security interests shall
be, and hereby are agreed to be, junior and subordinated to the security interests and liens
securing the Senior Debt). If, notwithstanding the foregoing, any lien shall be created or shall
arise in favor of Subordinated Creditor, whether by operation of law or otherwise, in or on any
property of Borrowers or any of its subsidiaries or affiliates to secure all or any portion of the
Subordinated Debt, then the liens granted by Borrowers in any such property in favor of Senior
Creditor to secure the Senior Debt shall in all respects be first and senior liens, superior to
such liens that may be created or arise, and superior to any security interest or lien that may
exist on the date hereof, in either case which liens are in favor of Subordinated Creditor securing
the Subordinated Debt notwithstanding (i) the date, manner or order of creation, attachment or
perfection of any such security interests or liens, (ii) the provisions of the UCC or any other
applicable statutes or court decisions that would provide otherwise in the absence of this
agreement, (iii) the provisions of any contract between Subordinated Creditor, on the one hand, and
Borrowers or any subsidiary or affiliate thereof, on the other, and (iv) whether Subordinated
Creditor or any agent or bailee thereof holds possession of any part any such collateral. In the
event Subordinated Creditor shall have or obtain possession of any such property or shall, in
contravention of this agreement, foreclose upon or enforce its security interest or lien upon any
such property, whether by self-help, judicial action or otherwise, then (i) all such property shall
be immediately delivered to Senior Creditor or, if not deliverable, all cash or non-cash proceeds
and profits of such property shall be paid over to Senior Creditor, without any deduction or
offset, and (ii) until duly deliver or paid to Senior Creditor, any such property or cash or
non-cash proceeds and profits of such property shall be held in trust for the benefit of Senior
Creditor, in the case of each of clause (i) and clause (ii), unless and until all of the Senior
Debt shall have been paid in cash in full and all commitments to extend credit under the Senior
Creditor Agreement shall have been terminated.

     (c) The subordination contained in this Agreement is intended to define the rights and duties
of Subordinated Creditor and Senior Creditor; it is not intended that any third party (including
Borrowers or any of its subsidiaries or affiliates, any bankruptcy trustee, receiver, or
debtor-in-possession) shall benefit from it. If the effect of the subordination contained in this
Agreement would be to give any third party a priority status to which that party would not
otherwise be entitled, then that provision shall, to the extent necessary to avoid that priority,
be given no effect and the rights and priorities of Senior Creditor and Subordinated Creditor shall
be determined in accordance with applicable law and this Agreement.

3. PERMITTED PAYMENT

     Notwithstanding anything to the contrary in this Agreement, nothing contained in this
Agreement shall preclude Subordinated Creditor from receiving from the Borrowers [the Common Stock
(as defined in that certain Convertible Promissory Note dated                     (the “Note”) issuable to
Subordinated Creditor upon the conversion of the indebtedness evidenced thereunder into such Common
Stock pursuant to the terms of Section                     of the Note], in each case, provided that no Event of
Default under the Senior Loan Documents then exists or would result therefrom.

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4. ASSIGNMENT OF SUBORDINATED DEBT

     Subordinated Creditor hereby covenants to Senior Creditor that prior to the termination of
this Agreement in accordance with Section 9, the entire Subordinated Debt created in favor of
Subordinated Creditor shall continue to be owing only to Subordinated Creditor, and any collateral
security therefor (including, without limitation, any collateral security granted to Subordinated
Creditor pursuant to the Subordinated Loan Documents) shall continue to be held solely for the
benefit of Subordinated Creditor, unless assigned pursuant to an assignment in which the assignee
agrees in writing to be bound by all of the terms and provisions of this Agreement. Any promissory
note issued pursuant to the Subordinated Loan Documents shall be legended to expressly state that
it is subject to this Agreement.

5. SENIOR CREDITOR’S PRIORITY

     In the event of any distribution, division, or application, partial or complete, voluntary or
involuntary, by operation of law or otherwise, of all or any part of the property of Borrowers or
any of its subsidiaries or affiliates or the proceeds thereof to the creditors of Borrowers or any
of its subsidiaries or affiliates, or the readjustment of the Senior Debt and the Subordinated
Debt, whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the
benefit of creditors or any other action or proceeding involving the readjustment of all or any
part of the Senior Debt or the Subordinated Debt, or the application of the property of Borrowers
or any of its subsidiaries or affiliates to the payment or liquidation thereof, or upon the
dissolution, liquidation, reorganization, or other winding up of Borrowers’ or any of its
subsidiaries’ or affiliates’ business, or upon the sale of all or any substantial part of
Borrowers’ or any of its subsidiaries’ or affiliates’ property (any of the foregoing being
hereinafter referred to as an “Insolvency Event”), then, and in any such event, Senior Creditor
shall be entitled to receive the indefeasible payment in cash in full of the Senior Debt before
Subordinated Creditor shall be entitled to receive any payment on account of the Subordinated Debt,
and to that end and in furtherance thereof:

     (a) All payments and distributions of any kind or character, whether in cash, property,
or securities, in respect of the Subordinated Debt to which Subordinated Creditor would be
entitled if the Subordinated Debt were not subordinated pursuant to this Agreement, shall be
paid to Senior Creditor and applied in payment of the Senior Debt;

     (b) Subordinated Creditor shall file a claim or claims, on the form required in such
proceedings, on or before thirty (30) days prior to the last date such claims or proofs of
claim may be filed pursuant to law or the order of any court exercising jurisdiction over
such proceeding; and

     (c) Notwithstanding the foregoing, if any payment or distribution of any kind or
character, whether in cash, properties or securities, shall be received by Subordinated
Creditor on account of the Subordinated Debt before all of the Senior Debt has been paid,
then such payment or distribution shall be received by Subordinated

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Creditor in trust for and shall be immediately paid over to Senior Creditor for application
to the payments of amounts due on the Senior Debt until the Senior Debt shall have been paid
in cash in full.

6. GRANT OF AUTHORITY

     In the event of the occurrence of an Insolvency Event, and to enable Senior Creditor to
enforce its rights hereunder in any of the aforesaid actions or proceedings, Senior Creditor is
hereby irrevocably authorized and empowered, in Senior Creditor’s discretion, as follows:

     (a) Senior Creditor is hereby irrevocably authorized and empowered (in its own name or
in the name of Subordinated Creditor or otherwise), but shall have no obligation, (i) to
demand, sue for, collect and receive every payment or distribution referred to in Section 5,
and give acquittance therefor and (ii) (if Subordinated Creditor has failed to file claims
or proofs of claim on or before thirty (30) days prior to the last date such claims or
proofs of claim may be filed pursuant to law or the order of any court exercising
jurisdiction over such proceeding) to file claims and proofs of claim, and (iii) to take
such other action (including, without limitation, enforcing any lien securing payment of the
Subordinated Debt) as it may deem necessary or advisable for the exercise or enforcement of
any of the rights or interests of Senior Creditor hereunder. Subordinated Creditor shall
duly and promptly take such action as Senior Creditor may reasonably request to execute and
deliver to Senior Creditor such authorizations, endorsements, assignments, or other
instruments as Senior Creditor may reasonably request in order to enable Senior Creditor to
enforce any and all claims with respect to, and any liens securing payment of, the
Subordinated Debt as such enforcement is contemplated herein.

     (b) To the extent that payments or distributions on account of the Subordinated Debt
are made in property or securities other than cash, Subordinated Creditor authorizes Senior
Creditor to sell or dispose of such property or securities on such terms as are commercially
reasonable in the situation in question. Following full and indefeasible payment in cash of
the Senior Debt and the termination of all commitments related thereto, Senior Creditor
shall remit to the Subordinated Creditor (with all necessary endorsements), to the extent of
Subordinated Creditor’s interest therein, all payments and distributions of cash, property,
or securities paid to and held by Senior Creditor in excess of the allowed amount of the
Senior Debt.

7. PAYMENTS RECEIVED BY SUBORDINATED CREDITOR

     Should any payment, distribution, or security be received by the Subordinated Creditor upon or
with respect to the Subordinated Debt in contravention of this Agreement (including any Permitted
Payment as set forth in Section 3) prior to termination of this Agreement in accordance with
Section 9, Subordinated Creditor shall receive and hold the same in trust for the benefit of Senior
Creditor and shall immediately deliver the same to Senior Creditor in precisely the form received
(except for the endorsement or assignment of Subordinated Creditor where necessary)

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for application to the Senior Debt, and, until so delivered, the same shall be held in trust by
such Subordinated Creditor for the benefit of Senior Creditor.

8. FURTHER ASSURANCES; COOPERATION

     Subordinated Creditor agrees to cooperate with Senior Creditor and to take all actions that
Senior Creditor may reasonably require to enable Senior Creditor to realize the full benefits of
this Agreement.

9. TERMINATION OR AMENDMENT OF AGREEMENT; NO AMENDMENTS

     This Agreement shall be effective upon its execution by each of Senior Creditor and
Subordinated Creditor. After the Effective Date, this Agreement shall remain in effect and shall
not be revoked or amended by Subordinated Creditor, except with the prior written consent of the
Senior Creditor. Subject to Section 13, this Agreement shall terminate upon the earlier to occur
of the following: (a) the date on which the Senior Debt shall have been paid in cash in full and
all commitments to extend credit under the Senior Creditor Agreement shall have been terminated or
(b) the date on which the Subordinated Debt shall have been either converted into the Common Stock
(as defined in the Note) pursuant to Section ___of the Note, cancelled or otherwise paid in cash in
full. Subordinated Creditor shall not amend, supplement or otherwise modify any of the
Subordinated Loan Documents without the written consent of Senior Creditor.

10. ADDITIONAL AGREEMENTS FOR SENIOR CREDITOR

     Senior Creditor may administer and manage its credit and other relationships with Borrowers in
its own best interest, without notice to or consent of Subordinated Creditor. At any time and from
time to time, Senior Creditor may enter into any amendment or agreement with Borrowers as Senior
Creditor may deem proper, extending the time of payment of or renewing or otherwise altering the
terms of all or any of the obligations constituting Senior Debt or affecting the collateral
security for, supporting or underlying any or all of the Senior Debt, and may exchange, sell,
release, surrender or otherwise deal with any such collateral without in any way thereby impairing
or affecting this Agreement, and all such additional agreements and amendments shall be Senior Loan
Documents evidencing the Senior Debt; provided, that neither this Section 10 nor any
provision of such agreements shall affect the limitations contained in the definitions of Senior
Creditor or Senior Debt.

11. SUBROGATION

     If cash or other property otherwise payable or deliverable to the Subordinated Creditor or on
account of the Subordinated Debt shall have been applied pursuant to this Agreement to the payment
of the Senior Debt, and if the Senior Debt shall have been paid in cash in full and all commitments
to extend credit under the Senior Creditor Agreement shall have been terminated, then Subordinated
Creditor shall be subrogated to any rights of Senior Creditor to receive further payments or
distributions applicable to the Senior Debt until the Subordinated Debt shall have been fully paid.
No such payments or distributions received by the Subordinated Creditor by

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reason of such subrogation shall, as between Borrowers and its creditors other than Senior
Creditor, on the one hand, and Subordinated Creditor, on the other hand, be deemed to be a payment
by Borrowers on account of the Subordinated Debt owed to Subordinated Creditor.

12. SUBORDINATED CREDITOR’S WAIVERS AND COVENANTS

     (a) Without limiting the generality of any other waiver made by Subordinated Creditor in this
Agreement, Subordinated Creditor hereby expressly waives (i) reliance by Senior Creditor upon the
subordination and other agreements herein provided, and (ii) any claim that Subordinated Creditor
may now or hereafter have against Senior Creditor arising out of any and all actions that Senior
Creditor, in good faith, takes or omits to take (A) with respect to the creation, perfection or
continuation of liens in or on any collateral security for the Senior Debt, (B) with respect to the
foreclosure upon, sale, release, or depreciation of, or failure to realize upon, any of the
collateral security for the Senior Debt, (C) with respect to the collection of any claim for all or
any part of the Senior Debt from any account debtor, guarantor or any other third party and (D)
with respect to the valuation, use, protection or release of any collateral security for the Senior
Debt.

     (b) Without limiting the generality of any other covenant or agreement made by Subordinated
Creditor in this Agreement, Subordinated Creditor hereby covenants and agrees that (i) Senior
Creditor has not made any warranties or representations with respect to the due execution,
legality, validity, completeness or enforceability of the Senior Creditor Agreement or any of the
other Senior Loan Documents, or the collectibility of the Senior Debt; and (ii) Subordinated
Creditor will not interfere with or in any manner oppose a disposition of any collateral security
for the Senior Debt by Senior Creditor.

13. REINSTATEMENT OF SENIOR DEBT

     To the extent that Senior Creditor receives payments on or in respect of the Senior Debt or
proceeds of any collateral security for the Senior Debt, which payments or proceeds are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law,
common law, or equitable cause, then, to the extent of such payments or proceeds invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid, the Senior Debt, or
part thereof, intended to be satisfied shall be revived and continue in full force and effect as if
such payments or proceeds had not been received by Senior Creditor.

14. NO WAIVERS

     Senior Creditor shall not be prejudiced in its rights under this Agreement by any act or
failure to act of Borrowers or Subordinated Creditor or any noncompliance of Borrowers or
Subordinated Creditor with any agreement or obligation, regardless of any knowledge thereof which
Senior Creditor may have, or with which Senior Creditor may be charged; no action permitted
hereunder that has been taken by Senior Creditor shall in any way affect or impair the rights or
remedies of Senior Creditor in the exercise of any other right or remedy or shall operate

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as a waiver thereof; no single or partial exercise by Senior Creditor of any right or remedy shall
preclude any other or further exercise thereof; and no modification or waiver of any of the
provisions of this Agreement shall be binding upon Senior Creditor, in each case except as
expressly set forth in a writing duly signed and delivered by Senior Creditor.

15. INFORMATION CONCERNING BORROWERS; CREDIT ADMINISTRATION

     Subordinated Creditor hereby assumes responsibility for keeping itself informed of the
financial condition of Borrowers, its subsidiaries and affiliates, any and all endorsers and any
and all guarantors of the Senior Debt and of all other circumstances bearing upon the risk of
nonpayment of the Senior Debt or the Subordinated Debt that diligent inquiry would reveal, and
Subordinated Creditor hereby agrees that Senior Creditor shall not have any duty to advise the
Subordinated Creditor of information known to Senior Creditor regarding such condition.

16. NOTICES

     Except as otherwise provided herein, all notices and service of process required,
contemplated, or permitted hereunder or with respect to the subject matter hereof shall be in
writing, and shall be deemed to have been validly served, given or delivered upon the earlier of:
(i) the first business day after transmission by facsimile or hand delivery or deposit with an
overnight express service or overnight mail delivery service; or (ii) the third calendar day after
deposit in the United States mails, with proper first class postage prepaid, and shall be addressed
to the party to be notified as follows:

If to Senior Creditor:

Silicon Valley Bank

Attention: Tim Walsh

                                                            

                                                            

Facsimile:                                         

If to Subordinated Creditor:

[Name of Entity]

Attention:

[address]

[address]

Facsimile:

17. SEVERABILITY

     Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of

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such prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

18. GOVERNING LAW

     This Agreement shall be governed by and interpreted in accordance with the laws of the State
of California without regard to principles of conflict of laws that would cause the application of
laws of any other jurisdiction.

19. ASSIGNMENT

     This Agreement shall be binding upon Subordinated Creditor and its respective successors and
assigns, and shall inure to the benefit of and be enforceable by Senior Creditor and its successors
and assigns.

20. MUTUAL WAIVER OF JURY TRIAL

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, SUBORDINATED CREDITOR AND SENIOR CREDITOR EACH
WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
AGREEMENT, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH
ITS COUNSEL. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE
RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable,
the parties hereto agree that any and all disputes or controversies of any nature between them
arising at any time shall be decided by a reference to a private judge, mutually selected by the
parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California
Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or
pursuant to comparable provisions of federal law if the dispute falls within the exclusive
jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and
the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be
conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure
§§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant
provisional relief, including without limitation, entering temporary restraining orders, issuing
preliminary and permanent injunctions and appointing receivers. All such proceedings shall be
closed to the public and confidential and all records relating thereto shall be permanently sealed.
If during the course of any dispute, a party desires to seek provisional relief, but a judge has
not been appointed at that point pursuant to the judicial reference procedures, then such party may
apply to the Santa Clara County, California Superior Court for such relief. The proceeding before
the private judge shall be conducted in the same manner as it would be before a court under the
rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery
which shall be conducted in the same manner as it would be before a court under the rules of
discovery applicable to judicial proceedings. The private judge shall oversee discovery and may
enforce all

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discovery rules and order applicable to judicial proceedings in the same manner as a trial court
judge. The parties agree that the selected or appointed private judge shall have the power to
decide all issues in the action or proceeding, whether of fact of law, and shall report a statement
of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this
paragraph shall limit the right of any party at any time to exercise self-help remedies,
foreclosure against collateral, or obtain provisional remedies. The private judge shall also
determine all issues relating to the applicability, interpretation and enforceability of this
paragraph.

21. COUNTERPARTS

     This Agreement and any amendments, waivers, consents or supplements hereto may be executed in
any number of counterparts, and by different parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed an original, but all of which counterparts together
shall constitute but one and the same instrument.

[Signature page follows.]

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     IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	SENIOR CREDITOR:	 	SUBORDINATED CREDITOR:	 	 
	 
	 	 	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 	 	 	 	 
	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	Signature:	 	 	 	 
	Print Name:

	 	 

	 	 Print
Name:
	 	 

	 	 
	Title:

	 	 

	 	 Title:
	 	 

	 	 
	 

	 	 

	 	 
	 	 

	 	 

The undersigned hereby accepts and consents to the foregoing Agreement and agrees to be bound by
all of the provisions thereof and to recognize all priorities and other rights granted by
Subordinated Creditor thereby or thereunder to Senior Creditor and to pay Senior Creditor in
accordance therewith.

	 	 	 	 	 	 	 
	BORROWERS:	 	 	 	 
	 
	 	 	 	 	 	 
	STARVOX COMMUNICATIONS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	Name:

	 	 
 	 	 	 	 
	Title:

	 	 
 	 	 	 	 
	 

	 	 
 	 	 	 	 
	 
	 	 	 	 	 	 
	CAPITAL TELECOMMUNICATIONS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	Name:

	 	 
 	 	 	 	 
	Title:

	 	 
 	 	 	 	 
	 

	 	 
 	 	 	 	 

[Signature page to Subordination Agreement]exv10w11

 

Exhibit 10.11

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE
PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

	 	 	 
	Company:
	 	StarVox Communications, Inc., a California corporation

	Number of Shares:
	 	300,000, as may be increased pursuant to Section 1.7

	Class of Stock:
	 	Series A Preferred

	Warrant Price:
	 	$0.50

	Issue Date:
	 	August 24, 2006

	Expiration Date:
	 	The tenth anniversary after the Issue Date

	Credit Facility:
	 	This Warrant is issued in connection with the Loan and
Security Agreement between Company and Silicon Valley
Bank having an Effective Date of August 24, 2006. All
capitalized terms not defined herein have the meaning
given them in such Agreement.

     THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (Silicon
Valley Bank, together with any registered holder from time to time of this Warrant or any holder of
the shares issuable or issued upon exercise of this Warrant, “Holder”) is entitled to purchase the
number of fully paid and nonassessable shares of the class of securities (the “Shares”) of the
Company at the Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of this
Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant.

ARTICLE 1. EXERCISE.

          1.1 Method of Exercise. Holder may exercise this Warrant by delivering a duly
executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company. Unless Holder is exercising the conversion right set forth in Article 1.2,
Holder shall also deliver to the Company a check, wire transfer (to an account designated by the
Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for
the Shares being purchased.

          1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the

 

 

aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market
value of the Shares shall be determined pursuant to Article 1.3.

          1.3 Fair Market Value. If the Company’s common stock is traded in a public market and
the Shares are common stock, the fair market value of each Share shall be the closing price of a
Share reported for the business day immediately before Holder delivers its Notice of Exercise to
the Company (or in the instance where the Warrant is exercised immediately prior to the
effectiveness of the Company’s initial public offering, the “price to public” per share price
specified in the final prospectus relating to such offering). If the Company’s common stock is
traded in a public market and the Shares are preferred stock, the fair market value of a Share
shall be the closing price of a share of the Company’s common stock reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company (or, in the instance where
the Warrant is exercised immediately prior to the effectiveness of the Company’s initial public
offering, the initial “price to public” per share price specified in the final prospectus relating
to such offering), in both cases, multiplied by the number of shares of the Company’s common stock
into which a Share is convertible. If the Company’s common stock is not traded in a public market,
the Board of Directors of the Company shall determine fair market value in its reasonable good
faith judgment.

          1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant
Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this
Warrant has not been fully exercised or converted and has not expired, a new Warrant representing
the Shares not so acquired.

          1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation on surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

          1.6 Treatment of Warrant Upon Acquisition of Company.

               1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale,
exclusive license, or other disposition of all or substantially all of the assets of the Company,
or any reorganization, consolidation, or merger of the Company where the holders of the Company’s
voting securities immediately before the transaction beneficially own less than 50% of the
outstanding voting securities of the surviving entity immediately after the transaction.

               1.6.2 Treatment of Warrant at Acquisition.

A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is not an asset sale and in which the sole consideration is cash, either (a) Holder shall exercise
its conversion or purchase right under this Warrant and such exercise will be deemed effective
immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise
the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall
provide Holder with written notice of its request relating to the foregoing (together with such
reasonable

 

 

information as Holder may request in connection with such contemplated Acquisition giving rise to
such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing
of the proposed Acquisition.

B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is an “arms length” sale of all or substantially all of the Company’s assets (and only its assets)
to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”),
either (a) Holder shall exercise its conversion or purchase right under this Warrant and such
exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b)
if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date
if the Company continues as a going concern following the closing of any such True Asset Sale. The
Company shall provide Holder with written notice of its request relating to the foregoing (together
with such reasonable information as Holder may request in connection with such contemplated
Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10)
days prior to the closing of the proposed Acquisition.

C) Upon the closing of any Acquisition other than those particularly described in subsections (A)
and (B) above, the successor entity shall assume the obligations of this Warrant, and this Warrant
shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price
and/or number of Shares shall be adjusted accordingly.

As used herein “Affiliate” shall mean any person or entity that owns or controls directly
or indirectly ten (10) percent or more of the stock of Company, any person or entity that controls
or is controlled by or is under common control with such persons or entities, and each of such
person’s or entity’s officers, directors, joint venturers or partners, as applicable.

          1.7 Number of Shares. This Warrant is immediately exercisable for 300,000 Shares;
provided, however, at such time as Lender has made advances under (a) Tranche 2 of the Term Loan,
this Warrant shall be immediately exercisable for an additional 100,000 shares of Shares, and (b)
Tranche 3 of the Term Loan, this Warrant shall be immediately exercisable for an additional 100,000
Shares.1

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

          2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the
Shares payable in common stock, or other securities, then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder owned the Shares of record as of the
date the dividend occurred. If the Company subdivides the Shares by reclassification or otherwise
into a greater number of shares or takes any other action which increase the amount of stock into
which the Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately decreased. If

 

			
	1	 	Using the defined term Shares will reflect
the fact that these will be post-merger securities and will not actually be the
Series A Preferred.

 

 

the outstanding shares are combined or consolidated, by reclassification or otherwise, into a
lesser number of shares, the Warrant Price shall be proportionately increased and the number of
Shares shall be proportionately decreased.

          2.2 Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of
securities and property that Holder would have received for the Shares if this Warrant had been
exercised immediately before such reclassification, exchange, substitution, or other event. Such
an event shall include any automatic conversion of the outstanding or issuable securities of the
Company of the same class or series as the Shares to common stock pursuant to the terms of the
Company’s Articles of Incorporation upon the closing of a registered public offering of the
Company’s common stock. The Company or its successor shall promptly issue to Holder an amendment
to this Warrant or a new Warrant setting forth the number and kind of such new securities or other
property issuable upon exercise or conversion of this Warrant as a result of such reclassification,
exchange, substitution or other event that results in a change of the number and/or class of
securities issuable upon exercise or conversion of this Warrant. The amendment to this Warrant or
new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article 2 including, without limitation, adjustments to the
Warrant Price and to the number of securities or property issuable upon exercise of the new
Warrant. The provisions of this Article 2.2 shall similarly apply to successive reclassifications,
exchanges, substitutions, or other events.

          2.3 Adjustments for Diluting Issuances. The Shares subject to this Warrant have the
anti-dilution protection set forth in the Company’s Articles of Incorporation. The provisions set
forth in the Company’s Articles of Incorporation in effect as of the Issue Date for the series and
class of stock of which the Shares consist may not be amended, modified or waived, without the
prior written consent of Holder, unless such amendment, modification or waiver affects each share
of such series or class of stock in the same manner.

          2.4 No Impairment. The Company shall not, by amendment of its Articles of
Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed under this Warrant by the Company,
but shall at all times in good faith assist in carrying out of all the provisions of this Article 2
and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Article against impairment. The foregoing notwithstanding, the Company shall not have been
deemed to have impaired Holder’s rights hereunder if it amends its Artcles of Incorporation, or the
holders of the Company’s preferred stock waive rights thereunder, in a manner that does not affect
any share of stock differently from the effect that such amendments or waivers have generally on
the rights, preferences, privileges or restrictions of the other shares of the same series of
stock.

          2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of this Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any

 

 

exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest
by paying Holder the amount computed by multiplying the fractional interest by the fair market
value of a full Share.

          2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute
such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth
such adjustment and the facts upon which such adjustment is based. The Company shall, upon written
request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date
thereof and the series of adjustments leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

          3.1 Representations and Warranties. The Company represents and warrants to Holder as
follows:

               (a) All Shares which may be issued upon the exercise of the purchase right represented by this
Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance,
be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and
encumbrances except for restrictions on transfer provided for herein or under applicable federal
and state securities laws.

               (b) The Company’s capitalization table attached hereto as Schedule 1 is true and
complete as of the Issue Date.

          3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon any of its stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; (b) to offer for sale any shares of the
Company’s capital stock (or other securities convertible into such capital stock), other than (i)
pursuant to the Company’s stock option or other compensatory plans, (ii) in connection with
commercial credit arrangements or equipment financings, or (iii) in connection with strategic
transactions for purposes other than capital raising; (c) to effect any reclassification or
recapitalization of any of its stock; (d) to merge or consolidate with or into any other
corporation, or sell, lease, license, or convey all or substantially all of its assets, or to
liquidate, dissolve or wind up; or (e) offer holders of registration rights the opportunity to
participate in an underwritten public offering of the Company’s securities for cash, then, in
connection with each such event, the Company shall give Holder: (1) at least 10 days prior written
notice of the date on which a record will be taken for such dividend, distribution, or subscription
rights (and specifying the date on which the holders of common stock will be entitled thereto) or
for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above;
(2) in the case of the matters referred to in (c) and (d) above at least 10 days prior written
notice of the date when the same will take place (and specifying the date on which the holders of
common stock will be entitled to exchange their common stock for securities or other property
deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in
(e) above, the same notice as is given to the holders of such registration rights. Company will
also provide information requested by Holder reasonably necessary to enable Holder to comply with
Holder’s accounting or reporting requirements.

 

 

          3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that it
will use commercially reasonable efforts to amend the Company’s [Investors’ Rights Agreement] dated
as of ___, 2006 (the “Investor Rights Agreement”) such that the Shares, to the extent they have
been converted into common stock of the Company shall have certain incidental, or “Piggyback,”
registration rights and S-3 registration rights pursuant to and as set forth in the Company’s
Investor Rights Agreement that are pari passu with the Company’s other investors.

          3.4 No Shareholder Rights. Except as provided in this Warrant, Holder will not have
any rights as a shareholder of the Company until the exercise of this Warrant.

ARTICLE 4. REPRESENTATIONS, WARRANTIES OF HOLDER. Holder represents and warrants to the
Company as follows:

          4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon
exercise of this Warrant by Holder will be acquired for investment for Holder’s account, not as a
nominee or agent, and not with a view to the public resale or distribution within the meaning of
the Act. Holder also represents that Holder has not been formed for the specific purpose of
acquiring this Warrant or the Shares.

          4.2 Disclosure of Information. Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. Holder further has had
an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify any information furnished to Holder or to which
Holder has access.

          4.3 Investment Experience. Holder understands that the purchase of this Warrant and
its underlying securities involves substantial risk. Holder has experience as an investor in
securities of companies in the development stage and acknowledges that Holder can bear the economic
risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that Holder is capable of evaluating the
merits and risks of its investment in this Warrant and its underlying securities and/or has a
preexisting personal or business relationship with the Company and certain of its officers,
directors or controlling persons of a nature and duration that enables Holder to be aware of the
character, business acumen and financial circumstances of such persons.

          4.4 Accredited Investor Status. Holder is an “accredited investor” within the meaning
of Regulation D promulgated under the Act.

          4.5 The Act. Holder understands that this Warrant and the Shares issuable upon
exercise or conversion hereof have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of
Holder’s investment intent as expressed herein. Holder understands that this Warrant and the
Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently
registered under the Act

 

 

and qualified under applicable state securities laws, or unless exemption from such
registration and qualification are otherwise available.

ARTICLE 5. MISCELLANEOUS.

          5.1 Term. This Warrant is exercisable in whole or in part at any time following the
authorization of the Shares and from time to time on or before the Expiration Date. 

          5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION
OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM
REGISTRATION.

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP
PERIOD FOLLOWING THE CLOSING DATE OF A REGISTRATION IN CONNECTION WITH THE
CORPORATION’S INITIAL PUBLIC OFFERING, AS SET FORTH IN THE AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT, AS AMENDED FROM TIME TO TIME, A COPY OF WHICH MAY BE
EXAMINED AT THE PRINCIPAL OFFICE OF THE CORPORATION DURING REGULAR BUSINESS HOURS.
SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SECURITIES.

          5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not
require Silicon Valley Bank (“Bank”) to provide an opinion of counsel if the transfer is to Bank’s
parent company, SVB Financial Group (formerly Silicon Valley Bancshares), or any other affiliate of
Bank. Additionally, the Company shall also not require an opinion of counsel if there is no
material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale.

 

 

          5.4 Transfer Procedure. After receipt by Bank of the executed Warrant, Bank will
transfer all of this Warrant to SVB Financial Group by execution of an Assignment substantially in
the form of Appendix 2. Subject to the provisions of Article 5.3 and upon providing the Company
with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this
Warrant or the Shares issuable upon exercise of this Warrant (or the Shares issuable directly or
indirectly, upon conversion of the Shares, if any) to any transferee, provided, however, in
connection with any such transfer, SVB Financial Group or any subsequent Holder will give the
Company notice of the portion of the Warrant being transferred with the name, address and taxpayer
identification number of the transferee and Holder will surrender this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to transfer
this Warrant or the Shares to any person who directly competes with the Company, unless, in either
case, the stock of the Company is publicly traded.

          5.5 Notices. All notices and other communications from the Company to Holder, or vice
versa, shall be deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address as may have been furnished to the
Company or Holder, as the case may (or on the first business day after transmission by facsimile)
be, in writing by the Company or such Holder from time to time. Effective upon receipt of the
fully executed Warrant and the initial transfer described in Article 5.4 above, all notices to
Holder shall be addressed as follows until the Company receives notice of a change of address in
connection with a transfer or otherwise:

SVB Financial Group

Attn: Treasury Department

3003 Tasman Drive, HA 200

Santa Clara, CA 95054

Facsimile: 408-496-2405

Notice to the Company shall be addressed as follows until Holder receives notice of a change in
address:

StarVox Communications, Inc.

Attn: Tom Rowley

2728 Orchard Parkway

San Jose, CA 95134

Facsimile: (408) 9430180

          5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

          5.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

          5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration
Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than

 

 

the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as
of such date to be converted pursuant to Section 1.2 above as to all Shares (or such other
securities) for which it shall not previously have been exercised or converted, and the Company
shall promptly deliver a certificate representing the Shares (or such other securities) issued upon
such conversion to Holder.

          5.9 Counterparts. This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

          5.10 Governing Law. This Warrant shall be governed by and construed in accordance
with the laws of the State of California, without giving effect to its principles regarding
conflicts of law.

[Signature page follows]

 

 

	 	 	 	 	 
	“COMPANY”	 	 
	 
	 	 	 	 
	STARVOX COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Thomas Rowley	 	 
	 
	 	 	 	 
	Name:

	 	Thomas Rowley
 

(Print)
	 	 
	Title:

	 	CEO	 	 
	 
	 	 	 	 
	“HOLDER”	 	 
	 
	 	 	 	 
	SILICON VALLEY BANK	 	 
	 
	 	 	 	 
	By:
	 	/s/ Tim Walsh 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Name:
	 	Tim Walsh 	 	 
	 

	 	 

(Print)
	 	 
	Title:
	 	Senior
Vice President 
	 	 

 

 

SCHEDULE 1

CAPITALIZATION TABLE

[See attached.]

 

 

APPENDIX 1

NOTICE OF EXERCISE

     1. Holder elects to purchase                      shares of the Common/Series                                         Preferred [strike
one] Stock of                                          pursuant to the terms of the attached Warrant, and tenders payment
of the purchase price of the shares in full.

[or]

     1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner
specified in the Warrant. This conversion is exercised for                                          of the Shares
covered by the Warrant.

     [Strike paragraph that does not apply.]

     2. Please issue a certificate or certificates representing the shares in the name specified
below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Holders Name	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Address)	 	 

     3. By its execution below and for the benefit of the Company, Holder hereby restates each of
the representations and warranties in Article 4 of the Warrant as the date hereof.

	 	 	 	 	 	 	 
	 

	 	HOLDER:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(Date):	 	 	 	 
	 	 	 	 	 

 

 

APPENDIX 2

ASSIGNMENT

For value received, Silicon Valley Bank hereby sells, assigns and transfers unto

	 	 	 	 	 
	 

	 	Name:
	 	SVB Financial Group
	 

	 	Address:
	 	3003 Tasman Drive (HA-200)
	 

	 	 	 	Santa Clara, CA 95054
	 
	 	 	 	 
	 

	 	Tax ID:
	 	91-1962278

that certain Warrant to Purchase Stock issued by StarVox Communications, Inc. (the
“Company”), on August 24, 2006 (the “Warrant”) together with all rights, title and interest
therein.

	 	 	 	 	 
	 	 	SILICON VALLEY BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Date:                                                             

By its execution below, and for the benefit of the Company, SVB Financial Group makes each of
the representations and warranties set forth in Article 4 of the Warrant and agrees to all other
provisions of the Warrant as of the date hereof.

	 	 	 	 	 
	 	 	SVB FINANCIAL GROUP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:

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