EXHIBIT 10.32
AMENDED AND RESTATED
GUARANTY
AMENDED AND
RESTATED GUARANTY dated
as of December 22, 2008 made by the undersigned (individually,
or if more than one, collectively, the “ Guarantor
”) in favor of JPMorgan Chase Bank, N.A., and/or any of its
subsidiaries or affiliates (individually or collectively, as the
context may require, the “ Bank ”).
PRELIMINARY
STATEMENTS : The Bank has entered, or may from
time to time enter, into agreements or arrangements with Avistar
Communications Corporation, a Delaware corporation (the “
Borrower ”), providing for credit extensions or
financial accommodation to the Borrower of any kind whatsoever
including, without limitation, the making of loans, advances or
overdrafts, whether or not secured, discount or purchase of notes,
securities or other instruments or property, creation of
acceptances, issuance or confirmation of letters of credit,
guaranties or indemnities, entering into foreign exchange or
precious metals contracts or interest rate or currency swap or
protection agreements, entering into any other derivative
transactions under any ISDA Master Agreement or similar agreements
between the Bank and the Borrower, or any other kind of lease,
contract or agreement under which the Borrower may be indebted to
the Bank in any manner (all of the foregoing agreements or
arrangements being the “ Facilities ” and any
writing or record evidencing, supporting, securing, or delivered in
connection with a Facility, including but not limited to this
Guaranty, and including as may subsequently be renewed, extended,
amended, modified, substituted and/or replaced, being a
“ Facility Document ”).
THEREFORE , in order to induce the Bank to extend credit
or give financial accommodation under the Facilities, the Guarantor
agrees (and if more than one, jointly and severally agrees) as
follows:
Amendment
and Restatement . This Guaranty amends and restates
in its entirety the Guaranty dated as of December 23, 2006, as
amended, by which the Guarantors, jointly and severally,
guaranteed, among other things, the Borrower’s obligations to
the Bank under that certain Revolving Credit Promissory Note
(Libor/Prime) dated as of December 23, 2006 to the order of the
Bank in a maximum principal amount of $10,000,000 (as amended by
the first and second amendments thereto, the “ Original
Note ”).
Guaranty
of Payments . For value received and in
consideration of the Facilities extended by the Bank the Guarantor
unconditionally and irrevocably guarantees to the Bank (a)
performance and observance of every agreement and condition
contained in any Facility Document to be performed or observed by
the Borrower, and (b) payment of all sums now owing or which may in
the future be owing by the Borrower under the Facilities, when the
same are due and payable, whether on demand, at stated maturity, by
acceleration or otherwise, and whether for principal, interest,
fees, expenses, indemnification or otherwise (the “
Liabilities ”). The Liabilities include,
without limitation, interest accruing after the commencement of a
proceeding under bankruptcy, insolvency or similar laws of any
jurisdiction at the rate or rates provided in the Facility
Documents.
This Guaranty
is a guaranty of payment and performance and not of collection
only. The Bank shall not be required to exhaust any
right or remedy or take any action against the Borrower or any
other person or entity or any collateral. The Guarantor
agrees that, as between the Guarantor and the Bank, the Liabilities
may be declared to be due and payable for the purposes of this
Guaranty notwithstanding any stay, injunction or other prohibition
which may prevent, delay or vitiate any declaration as regards the
Borrower and that in the event of a declaration or attempted
declaration, the Liabilities shall immediately become due and
payable by the Guarantor for the purposes of this
Guaranty.
The Guarantor
shall pay the Liabilities by the seventh (7th) day on which
commercial banks are not authorized or required to close in New
York City (a “ Banking Day ”) after the
Bank’s demand for payment thereof (or if such demand is
accompanied by notice from the Bank, or the Bank thereafter
delivers notice, that the value of collateral securing the
Liabilities is less than the amount of the Liabilities, on the
second (2 nd
) Banking Day after delivery of such
notice) (the “ Due Date ”). Upon the
Bank’s making demand for payment of the Liabilities but prior
to the Due Date, the Guarantor shall have the right (but not the
obligation) to execute and deliver to the Bank a note sale
agreement substantially in the form of Exhibit A hereto (the
“ Loan Sale Agreement ”) together with payment
of the “ Note Purchase Price ” (as defined
therein) in immediately available funds, whereupon the obligations
of the Guarantor hereunder shall terminate (but subject to
reinstatement as provided below).
Notwithstanding
anything to the contrary set forth herein, for purposes of this
Guaranty the Facilities of the Borrower guaranteed shall be limited
to those arising under and in connection with the Amended and
Restated Revolving Promissory Note (Libor/Prime) dated as of
December 10, 2008 by the Borrower in favor of the Bank in the
maximum principal amount of $10,000,000, as amended, restated or
otherwise modified from time to time (the “ New Note
”) or any other “ Facility Document ” (as
defined in the Note), together with every renewal, extension,
amendment, modification, substitution and/or replacement thereof,
each of which together with this Guaranty and any other writing or
record evidencing, supporting, securing or delivered in connection
with the foregoing shall be considered a Facility Document for
purposes of this Guaranty.
Guaranty
Absolute . The Guarantor guarantees that the
Liabilities shall be performed and paid strictly in accordance with
the terms of the Facilities. The liability of the
Guarantor under this Guaranty is absolute and unconditional
irrespective of: (a) any change in the amount, time,
manner or place of payment of, or in any other term of, all or any
of the Facility Documents or Liabilities, or any other amendment or
waiver of or any consent to departure from any of the terms of any
Facility Document or Liability; (b) any release or amendment or
waiver of, or consent to departure from, any other guaranty or
support document, or any exchange, release or non-perfection of any
collateral (any change in the value of any collateral or failure of
the Bank to monitor the value of any collateral), for all or any of
the Facility Documents or Liabilities; (c) any present or future
law, regulation or order of any jurisdiction (whether of right or
in fact) or of any agency thereof purporting to reduce, amend,
restructure or otherwise affect any term of any Facility Document
or Liability; (d) without being limited by the foregoing, any lack
of validity or enforceability of any Facility Document or
Liability; and (e) any other defense, setoff or counterclaim
whatsoever (in any case, whether based on contract, tort or any
other theory) with respect to the Facility Documents or the
transactions contemplated thereby which might constitute a legal or
equitable defense available to, or discharge of, the Borrower or a
guarantor.
Guaranty
Irrevocable . This Guaranty is a continuing
guaranty of all Liabilities now or hereafter existing under the
Facilities and shall remain in full force and effect until payment
in full of all Liabilities and other amounts payable under this
Guaranty and until the Facilities are no longer in effect or, if
earlier, when the Guarantor has given the Bank written notice that
this Guaranty has been revoked; provided that any notice
under this Section shall not release the Guarantor from any
Liability, absolute or contingent, existing prior to such
notice. Such notice shall be effective only after the
Bank’s actual receipt of the notice at its address set forth
below, and the Bank shall have had a reasonable time to act upon
such notice at each of its offices or departments responsible for
the Facilities.
Reinstatement . This Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time
(i) any payment of any of the Liabilities is rescinded or must
otherwise be returned by the Bank on the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, all as though the
payment had not been made or (ii) the Loan Sale
Agreement shall be held invalid or unenforceable in
whole or in any part..
Subrogation . The Guarantor shall not exercise
any rights against the Borrower which it may acquire by way of
subrogation, by any payment made under this Guaranty or otherwise,
until all the Liabilities have been paid in full and the Facilities
are no longer in effect. If any amount is paid to the
Guarantor on account of subrogation rights under this Guaranty at
any time when all the Liabilities have not been paid in full, the
amount shall be held in trust for the benefit of the Bank and shall
be promptly paid to the Bank to be credited and applied to the
Liabilities, whether matured or unmatured or absolute or
contingent, in accordance with the terms of the
Facilities.
Subordination . Without limiting the Bank’s
rights under any other agreement, any liabilities owed by the
Borrower to the Guarantor in connection with any extension of
credit or financial accommodation by the Guarantor to or for the
account of the Borrower, including but not limited to interest
accruing at the agreed contract rate after the commencement of a
bankruptcy or similar proceeding, are hereby su
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