Document:

Voting Agreement

 Exhibit 4.2 
 VOTING AGREEMENT 
 This Voting Agreement, dated as of October 18, 2006 (this
“Agreement”), is by and among Vertical Communications, Inc., a Delaware corporation (“Vertical”), and the other Persons listed on the signatures pages hereto (each a “Stockholder” and collectively,
the “Stockholders”). 
 W I T N E S S E T H

 WHEREAS, as of the date hereof, each Stockholder owns beneficially the number of shares of common stock of Vodavi Technology, Inc., a
Delaware corporation (the “Company”) set forth opposite such Stockholder’s name on Schedule I hereto (all shares so owned and which may hereafter be acquired by each Stockholder prior to the termination of this
Agreement, whether upon the exercise of options, conversion of convertible securities, exercise of warrants or by means of purchase, dividend, distribution or otherwise, being referred to herein with respect to each Stockholder as the
“Stockholder Shares”); and 
 WHEREAS, contemporaneously with the execution and delivery of this Agreement, the Company is
entering into an Agreement and Plan of Merger, dated as of the date hereof (as such agreement may hereafter be amended from time to time, the “Merger Agreement”), along with Vertical, and Vertical Acquisition Sub Inc., a Delaware
corporation and a wholly owned subsidiary of Vertical (“Sub”), which provides for, upon the terms and subject to the conditions set forth therein, the merger of Sub with and into the Company (the “Merger”); and

 WHEREAS, pursuant to the Merger Agreement, the Company has agreed to call a special meeting of its stockholders for the purpose of seeking
approval of the Company’s stockholders to consummate the transactions contemplated by the Merger Agreement (the “Proposal”); and 
 WHEREAS, in consideration of Vertical entering into the Merger Agreement and incurring certain related fees and expenses relating to the Merger, the Stockholders have agreed to enter into this Agreement. 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
the Company and the Stockholders hereby agree as follows: 
 ARTICLE I. 
 VOTING OF SHARES; AND OTHER COVENANTS OF THE STOCKHOLDERS 
 SECTION 1.1. Voting of
Shares. From the date hereof until termination of this Agreement pursuant to Section 3.2 hereof (the “Term”), at any meeting of the stockholders of the Company called to vote on the Proposal or at any adjournment or
postponement thereof, and in any action by consent of the stockholders of the Company with respect to which approval of the Proposal is sought, each Stockholder shall (A) appear at such meeting or otherwise cause its Stockholder Shares to be
counted as present thereat for purposes of establishing a quorum and 

 
(B) vote (or cause to be voted) its Stockholder Shares in favor of the Proposal and such other matters as may be necessary or advisable to consummate the
transactions contemplated by the Merger Agreement. 
 SECTION 1.2. No Inconsistent Arrangements. Except as contemplated by this
Agreement, no Stockholder shall during the Term (i) grant any proxy, power-of-attorney or other authorization in or with respect to its Stockholder Shares which is inconsistent with the terms hereof, (ii) deposit its Stockholder Shares
into a voting trust or enter into a voting agreement or arrangement with respect to its Stockholder Shares, (iii) sell, transfer, pledge or encumber, assign or otherwise dispose of or enforce or permit the execution of the provisions of any
redemption, share purchase or sale, recapitalization or other agreement with the Company or enter into any contract, option or other arrangement or understanding with respect to the offer for sale, sale, transfer, pledge, encumbrance, assignment or
other disposition of any of the Stockholder Shares except to a person who agrees in writing to be bound by the terms and conditions of this Agreement as a Stockholder or (iv) take any other action that would in any way restrict, limit or
interfere with the performance of its obligations hereunder or the transactions contemplated hereby or by the Merger Agreement. 
 SECTION
1.3. Disclosure. Each Stockholder hereby authorizes Vertical and/or the Company to publish and disclose in any filing with the SEC, including any proxy statement relating to the approval of the Merger Agreement by the Company’s
stockholders (including all exhibits and schedules filed with the SEC), its identity and ownership of its Stockholder Shares and the nature of its commitments, arrangements and understandings under this Agreement. 
 ARTICLE II. 
 REPRESENTATIONS AND WARRANTIES
OF THE STOCKHOLDERS 
 Each Stockholder severally hereby represents and warrants as follows: 
 SECTION 2.1. Authority. The Stockholder has all requisite power and authority to execute, deliver and perform this Agreement and to consummate the
transactions contemplated hereby. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Stockholder. This Agreement
has been duly executed and delivered by or on behalf of the Stockholder and constitutes a legal, valid and binding obligation of the Stockholder, enforceable against the Stockholder in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency, moratorium or other similar laws and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding for such remedy may be brought.

 SECTION 2.2. Required Filings and Consents. The execution and delivery of this Agreement by the Stockholder does not, and the
performance of this Agreement by the Stockholder will not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority (other than any necessary filing under the Exchange
Act), domestic or foreign, except where the failure to obtain such consents, approvals, authorizations or permits, or to make such filings or notifications, would not prevent or delay the performance by the Stockholder of the Stockholder’s
obligations under this Agreement. 
  

 -2- 

 SECTION 2.3. Ownership of Shares. The Stockholder is the record and beneficial owner of the Shares
set forth opposite its name on Schedule I hereto. On the date hereof, such Shares constitute all of the Shares owned of record or beneficially by such Stockholder. 
 SECTION 2.4. Each Stockholder understands and acknowledges that Vertical is entering into the Merger Agreement in reliance upon such Stockholder’s execution and delivery of this Agreement. 
 ARTICLE III. 
 MISCELLANEOUS 
 SECTION 3.1. Definitions. Terms used but not otherwise defined in this Agreement have the meanings ascribed to such terms in the Merger Agreement.

 SECTION 3.2. Termination. This Agreement shall terminate and be of no further force and effect (i) by the written mutual
consent of all of the parties hereto, (ii) upon the approval of the Proposal by the Company’s stockholders at a meeting duly called and held for such purpose at which a quorum was present and acting throughout, or (iii) automatically
and without any required action of the parties hereto upon termination of the Merger Agreement in accordance with its terms. No such termination of this Agreement shall relieve any party hereto from any liability for any breach of this Agreement
prior to termination. 
 SECTION 3.3. Further Assurance. From time to time, at another party’s request and without consideration,
each party hereto shall execute and deliver such additional documents and take all such further action as may be necessary or desirable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by
this Agreement. 
 SECTION 3.4. No Waiver. The failure of any party hereto to exercise any right, power or remedy provided under this
Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, or any custom or practice of the parties at variance with the terms hereof shall not
constitute a waiver by such party of its right to exercise any such right, power or remedy or to demand such compliance. 
 SECTION 3.5.
Specific Performance. Each Stockholder acknowledges that if such Stockholder fails to perform any of its obligations under this Agreement, immediate and irreparable harm or injury would be caused to the Company for which money damages would
not be an adequate remedy. In such event, each such Stockholder agrees that the Company shall have the right, in addition to any other rights it may have, to specific performance of this Agreement. Accordingly, should the Company institute an action
or proceeding seeking specific enforcement of the provisions hereof, each Stockholder hereby waives the claim or defense that 

  

 -3- 

 
the Company has an adequate remedy at law and hereby agrees not to assert in any such action or proceeding the claim or defense that such a remedy at law
exists. 
 SECTION 3.6. Notice. All notices and other communications given or made pursuant hereto shall be in writing and shall be
deemed to have been duly given or made (i) as of the date delivered or sent by facsimile if delivered personally or by facsimile, and (ii) on the third business day after deposit in the U.S. mail, if mailed by registered or certified mail
(postage prepaid, return receipt requested), in each case to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon
receipt): 
 (a) If to Vertical: 
      Vertical Communications, Inc. 
      One Memorial Drive 
       Cambridge, Massachusetts 02142 
      Attn: William Y. Tauscher 
      With a copy to:

      Andrews Kurth LLP 
      1717 Main Street, Suite 3700 
      Dallas, TX 75201

      Attn: Victor B. Zanetti, Esq. 
 (b) If to a Stockholder, at the address set forth below each Stockholder’s name on Schedule I hereto. 
 SECTION 3.7. Expenses. All fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Company, including, without limitation, the fees, costs and
expenses incurred by the Stockholders. 
 SECTION 3.8. Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement. 
 SECTION 3.9. Severability. If any term or
other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the maximum extent possible.

  

 -4- 

 SECTION 3.10. Entire Agreement; Third-Party Beneficiaries. This Agreement constitutes the entire
agreement and supersedes any and all other prior agreements and undertakings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof, and this Agreement is not intended to confer upon any other person any
rights or remedies hereunder. 
 SECTION 3.11. Assignment. Neither this Agreement nor any of the rights, interests or obligations
under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise. 
 SECTION 3.12. Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of Delaware located in New Castle County and the United States District Court for the District of Delaware for the purpose of any suit, action, proceeding or judgment relating to or
arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the
giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF
THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER. 
 SECTION 3.13. Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of Vertical and each of the
Stockholders. 
 SECTION 3.14. Waiver. Any agreement on the part of a party hereto to any extension of time for the performance of any
of the obligations or other acts of the other parties hereto or waiver of any inaccuracies in the representations and warranties of the other parties hereto contained herein or in any document delivered pursuant hereto or compliance by the other
parties hereto with any of their agreements or conditions contained herein shall be valid only as against such party and only if set forth in an instrument in writing signed by such party. The failure of any party hereto to assert any of its rights
under this Agreement or otherwise shall not constitute a waiver of those rights. 
 SECTION 3.15. Descriptive Headings;
Interpretation. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. 
 SECTION 3.16. Counterparts. This Agreement may be executed (including by facsimile transmission) in one or more counterparts, and by the different
parties hereto in 

  

 -5- 

 
separate counterparts, each of which when executed shall be deemed to be an original but all of which shall constitute one and the same agreement.

 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 -6- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first
written above. 
  

					
	VERTICAL COMMUNICATIONS, INC.
		
	By:	 	/s/ KEN CLINEBELL
		 	Name:	 	Ken Clinebell
		 	Title:	 	CFO
	
	 STOCKHOLDERS
  
 HUMMINGBIRD MANAGEMENT LLC

		
	By:	 	/s/ PAUL D. SONKIN
		 	Name:	 	Paul D. Sonkin
		 	Title:	 	Managing Member
	
	/s/ GREGORY K. ROEPER
	Gregory K. Roeper
	
	/s/ DAVID A. HUSBAND
	David A. Husband

 Schedule I 
  

			
	 Name and Address of Stockholder
	  	 Number of Shares
 Beneficially Owned

	 Hummingbird Management LLC
 460 Park Avenue, 12th
Floor
 New York, NY 10022
 Attention: Paul D. Sonkin, Managing
Member
	  	504,601(1)
		
	 Gregory K. Roeper
 c/o Vodavi Technology, Inc.

4717 E. Hilton Ave.
 Suite 400
 Phoenix, AZ 85034-6402
	  	10,725
		
	 David A. Husband
 c/o Vodavi Technology, Inc.

4717 E. Hilton Ave.
 Suite 400
 Phoenix, AZ 85034-6402
	  	19,850

  

	(1)	Amounts listed for Hummingbird Management LLC represent 505,414 shares of common stock beneficially owned by Hummingbird Management LLC (f/k/a Morningside Value Investors, LLC), as
investment manager to The Hummingbird Value Fund, L.P. The managing member of Hummingbird Management is Paul D. Sonkin, who also serves as the managing member of HFV Capital, the general partner of The Hummingbird Value Fund and The Hummingbird
Microcap Value Fund. Hummingbird Management LLC has sole voting and dispositive power over the shares, and Hummingbird Management LLC disclaims any economic interest or beneficial ownership of the shares. In addition to the amounts listed for
Hummingbird Management LLC, Mr. Sonkin’s beneficial ownership, for which Mr. Sonkin has sole voting and dispositive power, includes 15,000 shares issuable upon exercise of options, which is not included in the beneficial ownership of
Hummingbird Management LLC.Form of Tranche I Warrant

 Exhibit 4.3 
 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION UNDER THE FOREGOING LAWS. 
 THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON
                     , 2016 (the “EXPIRATION DATE”). 
 No. 2006-[__] 
 VERTICAL COMMUNICATIONS, INC. 
 TRANCHE I WARRANT TO PURCHASE SHARES OF COMMON STOCK 
 FOR VALUE RECEIVED, [WARRANTHOLDER] (“Warrantholder”), is entitled to purchase, subject to the provisions of this Tranche I Warrant To
Purchase Shares of Common Stock (the “Warrant”), from Vertical Communications, Inc., a Delaware corporation (“Company”), at any time not later than 5:00 P.M., Eastern time, on the Expiration Date (as defined above),
at an initial exercise price per share equal to fifty-eight cents ($0.58) (such price and such other price as shall result, from time to time, from the adjustments specified in Section 8 hereof is herein referred to as the
“Warrant Price”), [NUMBER OF] (such number and such other number as shall result, from time to time, from the adjustments specified in Section 8 hereof is herein referred to as the “Warrant Shares”) of
Common Stock (as defined below). The number of Warrant Shares purchasable upon exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time as described herein. As used herein, “Common Stock” means
the common stock, $0.01 par value per share, of the Company, and any capital stock of any class of the Company hereafter authorized that shall not be entitled to a fixed sum in respect of the rights of the holders thereof to participate in dividends
or in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of the Company. This Warrant is one of the several warrants (collectively, the “Tranche I October 2006 Warrants”) evidencing
the right to purchase shares of Common Stock issued pursuant to that certain Securities Purchase Agreement dated as of October 18, 2006 by and among the Company, the Warrantholder and the other parties thereto (as such agreement is amended
and/or restated and in effect from time to time, the “2006 Purchase Agreement”). 
  

	1.	Registration. The Company shall maintain books for the transfer and registration of the Warrant. Upon the initial issuance of the Warrant, the Company shall issue and
register the Warrant in the name of the Warrantholder. 

  

	2.	Transfers. As provided herein, this Warrant may be transferred only pursuant to a registration statement filed under the Securities Act of 1933, as amended
(“Securities Act”), or an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant from time to time upon the books to be maintained by the Company for that purpose, upon surrender
thereof for transfer properly endorsed or accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company to establish that such transfer is being made in accordance with the terms hereof,
and a new Warrant shall be issued to the transferee and the surrendered Warrant shall be canceled by the Company. 

  Warrant – Page
 2
 
  

	3.	Exercise of Warrant. 

  

	 	(a)	Subject to the provisions hereof, the Warrantholder may exercise this Warrant in whole or in part at any time upon surrender of the Warrant, together with delivery of the duly
executed Warrant exercise form attached hereto as Appendix A (the “Exercise Agreement”) and payment by cash, certified check or wire transfer of funds (or by cash-less exercise as provided in Section 17) for
the Warrant Price for that number of Warrant Shares then being purchased, to the Company during normal business hours on any business day at the Company’s principal executive offices (or such other office or agency of the Company as it may
designate by notice to the holder hereof). The Warrant Shares so purchased shall be deemed to be issued to the holder hereof or such holder’s designee, as the record owner of such shares, as of the close of business on the date on which this
Warrant shall have been surrendered (or evidence of loss, theft or destruction thereof and security or indemnity reasonably satisfactory to the Company), the Warrant Price shall have been paid, the completed Exercise Agreement shall have been
delivered and, in the case of any transfer of Warrant Shares effected at the time of such exercise, an appropriately executed stock power and a certificate containing such reasonable and appropriate customary representations as may be reasonably
requested by the Company shall have been delivered to the Company. Certificates for the Warrant Shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a
reasonable time, not exceeding three (3) business days, after this Warrant shall have been so exercised. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name
of such holder or, subject to compliance with applicable law, such other name as shall be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at
the time of delivery of such certificates, deliver to the holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised. 

  

	 	(b)	Each exercise hereof shall constitute the re-affirmation by the Warrantholder that the representations and warranties contained in Sections 5.2, 5.3 and 5.4 of
the 2006 Purchase Agreement are true and correct in all material respects with respect to the Warrantholder as of the time of such exercise. 

  

	4.	Compliance with the Securities Act. The Company may cause the legend set forth on the first page of this Warrant to be set forth on each Warrant or similar legend on any
security issued or issuable upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any such security that such legend is unnecessary. 

  

	5.	Payment of Taxes. The Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant;
provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of
the registered holder of this Warrant in respect of which such shares are issued, and in such case, the Company shall not be required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid
to the Company the amount of such tax or has established to the Company’s reasonable satisfaction that such tax has been paid. The holder shall be responsible for income and gift taxes due under federal, state or other law, if any such tax is
due. 

  

	6.	 Mutilated or Missing Warrants. In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and substitution of
and upon cancellation of the mutilated 

  Warrant – Page
 3
 
  

	 	 
Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of
Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto,
if requested by the Company. 

  

	7.	Reservation of Common Stock. The Company shall at all applicable times keep reserved until issued (if necessary) as contemplated by this Section 7, out of the
authorized and unissued Common Stock, sufficient shares to provide for the exercise of the rights of purchase represented by the Warrant in compliance with its terms. The Company agrees that all Warrant Shares issued upon exercise of the Warrant
shall be, at the time of delivery of the certificates for such Warrant Shares upon payment in full of the Warrant Price therefor in accordance with the terms of this Warrant (or by cash-less exercise as provided below), duly authorized, validly
issued, fully paid and non-assessable shares of Common Stock of the Company. 

  

	8.	Adjustments to Warrant Price and Warrant Shares. Subject and pursuant to the provisions of this Section 8, the Warrant Price and number of Warrant Shares subject
to this Warrant shall be subject to adjustment from time to time as set forth hereinafter. 

  

	 	(a)	In the event the Company shall at any time after the Original Issue Date (as defined below) issue Additional Shares of Common Stock (defined below) (including Additional Shares of
Common Stock deemed to be issued), without consideration or for a consideration per share less than the applicable Warrant Price in effect immediately prior to such issuance, then the Warrant Price shall be reduced, concurrently with such issuance,
to the consideration per share received by the Company for such issuance or deemed issuance of the Additional Shares of Common Stock; provided that, if such issuance or deemed issuance was without consideration, then the
Company shall be deemed to have received an aggregate of $0.01 of consideration for all such Additional Shares of Common Stock issued or deemed to be issued. Notwithstanding anything to the contrary set forth in this Warrant, if the Company shall
issue any Options and/or Convertible Securities, or otherwise agrees to issue any Options and/or Convertible Securities, then the Company shall be deemed to have issued Additional Shares of Common Stock and the applicable provisions of this
Section 8 shall apply to such issuance or deemed issuance. 

  

	 	(b)	Determination of Consideration. For purposes of this Section 8, the consideration received by the Company for the issue of any Additional Shares of Common Stock
shall be computed as follows: 

  

	 	(i)	Cash and Property: Such consideration shall: 

  

	 	(1)	insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company, excluding amounts paid or payable for accrued interest;

  

	 	(2)	insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined in good faith by the Board of Directors;
and 

  

	 	(3)	 in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Company for 

  Warrant – Page
 4
 
  

	 	 
consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (A) and (B) above, as
determined in good faith by the Board of Directors. 

  

	 	(ii)	Options and Convertible Securities. The consideration per share received by the Company for Additional Shares of Common Stock deemed to have been issued, relating to Options
and Convertible Securities, shall be determined by dividing: 

  

	 	(1)	the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of
additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the
conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by

  

	 	(2)	the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such
number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options and Convertible Securities and the conversion or
exchange of such Convertible Securities. 

  

	 	(c)	Multiple Closing Dates. In the event the Company shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related
transactions and that would result in an adjustment to the Warrant Price pursuant to the terms of Section 8(a) above, and such issuance dates occur within a period of no more than 30 days from the first such issuance to the final such
issuance, then, upon the final such issuance, the Warrant Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result
of any such subsequent issuances within such period). 

  

	 	(d)	Adjustment for Stock Splits and Combinations. If the Company shall at any time or from time to time after the Original Issue Date effect a subdivision of the outstanding
Common Stock, the Warrant Price in effect immediately before that subdivision shall be proportionately decreased so that the number of shares of Common Stock issuable upon exercise of the Warrant shall be increased in proportion to such increase in
the aggregate number of shares of Common Stock outstanding. If the Company shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the Warrant Price in effect immediately before the
combination shall be proportionately increased so that the number of shares of Common Stock issuable upon exercise of the Warrant shall be decreased in proportion to such decrease in the aggregate number of shares of Common Stock outstanding. Any
adjustment under this Section 8(d) shall become effective at the close of business on the date the subdivision or combination becomes effective. 

  Warrant – Page
 5
 
  

	 	(e)	Adjustment for Certain Dividends and Distributions. In the event the Company at any time or from time to time after the Original Issue Date shall make or issue, or fix a
record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the Warrant Price in effect immediately
before such event shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Warrant Price then in effect by a fraction:

  

	 	(i)	the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such
record date, and 

  

	 	(ii)	the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such
record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; 

 provided,
however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Warrant Price shall be recomputed accordingly as of the close of business on
such record date and thereafter the Warrant Price shall be adjusted pursuant to this Section 8(e) as of the time of actual payment of such dividends or distributions; and provided further, however, that no such adjustment
shall be made if the Warrantholder simultaneously receives a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as the Warrantholder would have received if the Warrant had been
exercised on the date of such event. 
  

	 	(f)	Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time after the Original Issue Date shall make or issue, or fix a
record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company (other than a distribution of shares of Common Stock in respect of outstanding shares of Common
Stock) or in other property, then and in each such event the Warrantholder shall receive, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution of such securities or other property in an amount equal
to the amount of such securities or other property as the Warrantholder would have received if the Warrant had been exercised on the date of such event. 

  

	 	(g)	 Adjustment for Merger or Reorganization, etc. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving
the Company in which the Common Stock is converted into or exchanged for securities, cash or other property (other than a transaction covered by Sections 8(d), 5(e) or 5(f), then, following any such reorganization,
recapitalization, reclassification, consolidation or merger, this Warrant shall thereafter be exercisable in lieu of the Common Stock into which it was exercisable prior to such event into the kind and amount of securities, cash or other property
which a holder of shares of Common Stock of the Company immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction; and, in such case,
appropriate adjustment (as determined in good faith by the Board of Directors) shall be made in the application of the provisions in this Section 8, to the end that the provisions set forth in 

  Warrant – Page
 6
 
  

	 	 
this Section 8 (including provisions with respect to changes in and other adjustments of the Warrant Price) shall thereafter be applicable, as
nearly equivalent as may be practicable in relation to any shares of stock, securities or properties thereafter deliverable upon the exercise thereof. 

  

	 	(h)	Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Warrant Price pursuant to this Section 8, the Company at its expense
shall, as promptly as reasonably practicable but in any event not later than 10 days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Warrantholder a certificate setting forth such adjustment
or readjustment (including the kind and amount of securities, cash or other property into which the Warrant is exercisable) and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, as promptly as
reasonably practicable after the written request at any time of the Warrantholder (but in any event not later than 10 days thereafter), furnish or cause to be furnished to the Warrantholder a certificate setting forth (i) the Warrant Price then
in effect, and (ii) the number of shares of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the exercise of this Warrant. 

  

	 	(i)	Notice of Record Date. In the event: 

  

	 	(i)	the Company shall take a record of the holders of its Common Stock for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any
right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; or 

  

	 	(ii)	of any capital reorganization of the Company, any reclassification of the Common Stock of the Company, or any liquidation of the Company; or 

  

	 	(iii)	of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 

 then, and in each such case, the Company will send or cause to be sent to the Warrantholder a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount
and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time,
if any is to be fixed, as of which the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Common Stock. Such notice shall be sent at least 20 days prior to the record date or
effective date for the event specified in such notice. Any notice required by the provisions hereof to be given to the Warrantholder shall be deemed sent to the Warrantholder if deposited in the United States mail, postage prepaid, and addressed to
the Warrantholder at his, her or its address appearing on the books of the Company. 

  Warrant – Page
 7
 
  

	 	(j)	The following terms shall have the following meanings: 

  

	 	(i)	“Additional Shares of Common Stock” shall mean all shares of Common Stock issued (or, pursuant to the terms of this Section 8, deemed to be issued) by
the Company after the Original Issue Date, other than the following shares of Common Stock, and shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities: 

  

	 	(1)	shares of Common Stock, Options or Convertible Securities issued or deemed issued as a dividend, stock split, split-up or other distribution on shares of Common Stock that is
covered by this Section 8; 

  

	 	(2)	up to an aggregate of 24,584,167 shares of Common Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combinations or other similar
recapitalization affecting such shares), including Options therefor, authorized under the Company’s various stock option plans in effect as of the Original Issue Date, of which no shares of Common Stock have been issued as restricted stock as
of the Original Issue Date or are issuable upon the exercise of Options outstanding as of the Original Issue Date and 24,584,167 shares of Common Stock are issuable to employees, consultants or directors pursuant to stock option, stock grant, stock
purchase or similar plans or arrangements approved by the Board of Directors or a committee thereof; 

  

	 	(3)	shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of
Convertible Securities, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security; 

  

	 	(4)	the issuance of the Additional Warrants (as defined in the 2006 Purchase Agreement) and the shares of Common Stock issued or issuable upon the exercise thereof; and

  

	 	(5)	the issuance of the Warrants contemplated in that certain Credit Agreement dated as of October 18, 2006, by and among the Company, Vertical Communications Acquisition Corp., a
Delaware corporation, Columbia Partners, L.L.C. Investment Management, and National Elevator Industry Pension Fund and the shares of Common Stock issued or issuable upon the exercise thereof. 

  

	 	(ii)	“Convertible Securities” shall mean any evidences of indebtedness, shares of capital stock or other securities directly or indirectly convertible into or
exchangeable for Common Stock, but excluding Options. 

  

	 	(iii)	“Option” shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire shares of Common Stock or Convertible Securities.

  

	 	(iv)	“Original Issue Date” shall mean                 
    , 2006. 

  

	9.	 Fractional Interest. The Company shall not be required to issue fractions of Warrant Shares upon the exercise of the Warrant. If any fractional share of
Common Stock would, except for the provisions of the first sentence of this Section 9, be delivered upon such exercise, the Company, 

  Warrant – Page
 8
 
  

	 	 
in lieu of delivering such fractional share, shall pay to the exercising holder of this Warrant an amount in cash equal to the current Market Price of such
fractional share of Common Stock. 

  

	10.	Benefits. Nothing in this Warrant shall be construed to give any person, firm or corporation (other than the Company and the Warrantholder) any legal or equitable right,
remedy or claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of the Company and the Warrantholder. 

  

	11.	Notices to Warrantholder. Upon the happening of any event requiring an adjustment of the the Warrant Price or the number of Warrant Shares, the Company shall promptly give
written notice thereof to the Warrantholder at the address appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted number of Warrant Shares resulting from such event and setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based. Failure to give such notice to the Warrantholder or any defect therein shall not affect the legality or validity of the subject adjustment. 

  

	12.	Identity of Transfer Agent. The Transfer Agent for the Common Stock is ComputerShare Investor Services. Upon the appointment of any subsequent transfer agent for the Common
Stock or other shares of the Company’s capital stock issuable upon the exercise of the rights of purchase represented by the Warrant, the Company will mail to the Warrantholder a statement setting forth the name and address of such transfer
agent. 

  

	13.	Notices. Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal,
(iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if
given by an internationally recognized overnight air courier, then such notice shall be deemed given one day after delivery to such carrier. All notices shall be addressed as follows: (i) if to the Warrantholder, at its address as set forth in
the Company’s books and records and, if to the Company, at the address as follows, or at such other address as the Warrantholder or the Company may designate by ten days’ advance written notice to the other: 

 If to the Company: 
 Vertical Communications,
Inc. 
 One Memorial Drive, 10th Floor 
 Cambridge, Massachusetts 02142 
 Attn: President 
 Fax:   (617) 354-3564 
 With a copy to: 
 Andrews Kurth LLP 
 1717 Main Street, Suite
3700 
 Dallas, Texas 75201 
 Attn: Victor B. Zanetti 
 Fax:   (214) 659-4401 

  Warrant – Page
 9
 
  

	14.	Registration Rights. The initial holder of this Warrant may be entitled to the benefit of certain registration rights in respect of the Warrant Shares as provided in the 2006
Purchase Agreement, and any subsequent holder hereof may be entitled to such rights. 

  

	15.	Successors. All the covenants and provisions hereof by or for the benefit of the Warrantholder shall bind and inure to the benefit of its respective successors and assigns
hereunder. 

  

	16.	Governing Law. This Warrant shall be governed by, and construed in accordance with, the laws of the State of New York. 

  

	17.	Net Issue Election. Notwithstanding any other provision contained herein to the contrary, if the Warrant Shares may not be freely sold to the public for any reason
(including, but not limited to, the failure of the Company to have effected the registration of the Warrant Shares or to have a current prospectus available for delivery or otherwise, but excluding the inability of the Warrantholder to sell the
Warrant Shares due to market conditions), the Warrantholder may elect to receive, without the payment by the Warrantholder of the aggregate Warrant Price in respect of the shares of Common Stock to be acquired, shares of Common Stock equal to the
value of this Warrant or any portion hereof by the surrender of this Warrant (or such portion of this Warrant being so exercised) together with the Net Issue Election Notice annexed hereto as Appendix B duly executed, at the office of
the Company. Thereupon, the Company shall issue to the Warrantholder such number of fully paid, validly issued and nonassessable shares of Common Stock as is computed using the following formula: 

  

					
	X	 	  =   Y (A - B)	 	
		 	      A	 	

 where 
  

			
	X =	 	the number of Warrant Shares which the Warrantholder has then requested be issued to the Warrantholder;
		
	Y =	 	the total number of Warrant Shares which the Warrantholder has surrendered at such time for cash-less exercise (including both shares to be issued to the Warrantholder and shares to be
canceled as payment therefor);
		
	A =	 	the Market Price of a share of Common Stock; and
		
	B =	 	the Warrant Price in effect under this Warrant at the time the net issue election is made.

  

	18.	No Rights as Stockholder. Prior to the exercise of this Warrant, the Warrantholder shall not have or exercise any rights as a stockholder of the Company by virtue of its
ownership of this Warrant. 

  

	19.	Amendment; Waiver. Any term of this Warrant may be amended or waived (including the adjustment provisions included in Section 8 of this Warrant) upon the written
consent of the Company and the single holder of at least thirty percent (30%) of the aggregate Warrant Shares under all Tranche I October 2006 Warrants. 

  

	20.	Section Headings. The section heading in this Warrant are for the convenience of the Company and the Warrantholder and in no way alter, modify, amend, limit or restrict
the provisions hereof. 

  Warrant – Page
 10
 
  

	21.	No Dilution or Impairment. The Company will not, by amendment of its certificate of incorporation or through reorganization, consolidation, merger, dissolution, sale of
assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Warrantholder set forth herein. Without limiting the generality of the foregoing, the Company will not increase the par value of any shares of stock receivable upon the exercise
of this Warrant above the amount payable therefor upon such exercise, and at all times will take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable stock upon the
exercise of this Warrant. 

 [Remainder of Page Intentionally Left Blank] 

 Signature Page to Warrant 
  

 IN WITNESS WHEREOF, Vertical Communications, Inc. has caused this Warrant to be duly executed,
as of the      day of                     , 2006. 
  

			
	VERTICAL COMMUNICATIONS, INC.
		
	By:	 	  
	Name:
	Title:

 APPENDIX A 
 WARRANT EXERCISE FORM 
  

	To:	Vertical Communications, Inc. 

 The undersigned hereby
irrevocably elects to exercise the right of purchase represented by the within Warrant (“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price and surrender of the Warrant,
                 shares of Common Stock (“Warrant Shares”) provided for therein, and requests that certificates for the Warrant Shares be issued
as follows: 
  

					
		  	  	 	
			
		  	  	 	
		  	Address	 	
		  	  	 	
		  	  	 	
		  	Federal Tax ID or Social Security No.	 	
			
	 and delivered by
	  	 ̈  certified mail to the above address, or	 	
		  	 ̈  electronically (provide DWAC Instructions:	 	______________________). or
		  	 ̈  other (specify:
__________________________________________________________).

 and, if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant,
that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Warrantholder or the undersigned’s Assignee as below indicated and delivered to the address stated
below. 
 By exercising the rights represented by this Warrant, the undersigned hereby certifies that, as of the date of exercise of this
Warrant, the representations and warranties contained in Sections 5.2, 5.3 and 5.4 of the 2006 Purchase Agreement are true and correct in all material respects with respect to the undersigned. 
  

					
	Dated: ,                     ,
        	 	Signature: 	 	  
			
	Note: The signature must correspond with the name of the registered holder as written on the first page of the Warrant in every particular, without alteration or enlargement or any
change whatever, unless the Warrant has been assigned	 		 	   
	 		 	Name (please print)
	 		 	
	 		 	  
		 		 	  
		 		 	Address
			
		 		 	  
		 		 	 Federal Identification or
 Social Security
No.

		 		 	Assignee:
			
		 		 	  

 APPENDIX B 
 Net Issue Election Notice 
 To: Vertical Communications, Inc. 
 Date:
                                        

 The undersigned hereby elects under Section 17 of this Warrant to surrender the right to purchase
             shares of Common Stock pursuant to this Warrant and hereby requests the issuance of             
shares of Common Stock. The certificate(s) for the shares issuable upon such net issue election shall be issued in the name of the undersigned or as otherwise indicated below. 
  

	
	
	   
	Signature
	
	   
	Name for Registration
	
	   
	Mailing Address

 Schedule of Tranche I Warrant Holders 
  

			
	 Tranche I Warrant Holder Name
	  	Tranche I Warrants
	 M/C Venture Partners
	  	
	 M/C Venture Partners V, L.P.
	  	8,902,516
	 M/C Venture Investors, LLC
	  	166,667
	 Chestnut Venture Partners, L.P.
	  	364,780
		
	 Pathfinder Ventures IV, L.L.C.
	  	4,716,981
		
	 William Y. Tauscher
	  	471,698
		
	 LG-Nortel Co., Ltd.
	  	6,132,076

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]