EXHIBIT 10.28
AMENDED AND
RESTATED
REVOLVING CREDIT PROMISSORY
NOTE
(LIBOR/PRIME)
$10,000,000 Dated as of December 22,
2008
For value
received, Avistar Communications Corporation , a Delaware
corporation (the “ Borrower ”) hereby promises
to pay to the order of JPMorgan Chase Bank, N.A. (the
“ Bank ”) at its office at 345 Park Avenue, New
York, New York 10154-1002 for the account of the lending
office of the Bank, the principal amount of each loan made by the
Bank to the Borrower (the “ Loans ”), up to an
aggregate principal amount equal to the Maximum Facility Amount, on
the first anniversary of the date hereof (the “ Final
Maturity Date ”).
The Revolving
Credit Promissory Note (Libor/Prime) dated as of December 23, 2006,
as amended, by the Borrower to the order of the Bank (the “
Original Note ”) is amended and restated in its
entirety by this Note.
The Borrower
promises to pay interest on each Interest Payment Date on the
unpaid balance of the principal amount of each such Loan from and
including the date of such Loan to but excluding the date of its
repayment at either (i) a floating rate per annum equal to the
Prime Rate applicable to such Loan plus 1.25% (such Loan a
“ Prime Loan ”), or (ii) a fixed rate per annum
equal to the Adjusted Libor Rate applicable to such Loan
plus 1.25% (such Loan a “ Libor Loan
”). After the occurrence and during the
continuance of an Event of Default, principal shall bear interest
from and including the date of such Event of Default until paid in
full at a rate per annum equal to the Default Rate, such interest
to be payable on demand. Interest shall be payable on
the relevant Interest Payment Date and for Libor Loans shall be
calculated on the basis of a year of 360 days for the actual number
of days elapsed and for Prime Loans shall be calculated on the
basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed. Prior to the Final Maturity Date, provided
that no Event of Default has occurred and is continuing, and
subject to the terms of this Note, the Borrower may borrow, repay
and reborrow under this Note, up to the aggregate principal amount
equal to the Maximum Facility Amount (the “ Commitment
”).
All payments
hereunder shall be made in lawful money of the United States and in
immediately available funds. Any extension of time for
the payment of the principal of this Note resulting from the due
date falling on a non-Banking Day shall be included in the
computation of interest. The date, amount, type and
Interest Period of, and the interest rate with respect to, each
Loan evidenced hereby and all payments of principal thereof shall
be recorded by the Bank on its books and, at the discretion of the
Bank prior to any transfer of this Note at any other time, may be
endorsed by the Bank on a schedule. Any such endorsement
shall be conclusive absent manifest error. The Bank may (but shall
not be obligated to) debit the amount of any payment under this
Note that is not made when due to any deposit account of the
Borrower with the Bank. The Borrower waives presentment,
notice of dishonor, protest and any other notice or formality with
respect to this Note.
1.
Definitions. The terms listed below shall be
defined as follows:
“
Adjusted Libor Rate ” shall mean the Libor Rate for
such Loan divided by one minus the Reserve Requirement.
“
Banking Day ” shall mean any day on which commercial
banks are not authorized or required to close in New York City and
whenever such day relates to a Libor Loan or notice with respect to
any Libor Loan, a day on which dealings in U.S. dollar deposits are
also carried out in the London interbank market.
“
Borrowing Notice ” shall mean a request for a
borrowing substantially in the forma of Exhibit A
hereto.
“
Collateral Agreement ” means the Amended and Restated
Collateral Agreement dated as of December 22, 2008 by the
Guarantor in favor of the Bank securing, among other things, the
Guarantor’s obligations to the Bank under the Guaranty, as
amended, restated or otherwise modified from time to
time.
“
Convertible Notes ” means the “Notes” (as
defined in, and issued pursuant to, the Convertible Note Purchase
Agreement).
“
Convertible Note Purchase Agreement ” means the
Convertible Note Purchase Agreement dated January 4, 2008 by the
Borrower and the purchasers parties thereto with respect to the
Borrower’s sale of its 4.5% convertible subordinated secured
promissory notes.
“
Default Rate ” shall mean a rate per annum equal to:
(a) if a Prime Loan, a floating rate of 2% above the rate of
interest thereon (including any margin); (b) if a Libor Loan, a
fixed rate of 2% above the rate of interest in effect thereon
(including any margin) at the time of the applicable Event of
Default until the last day of the Interest Period thereof and,
thereafter, a floating rate of 2% above the rate of interest for a
Prime Loan (including any margin).
“
Event of Default ” shall mean an event described in
Section 7.
“
Facility Documents ” shall mean this Note and any
other documents, instruments, or agreements delivered as security
or collateral for, or a guaranty of, the Loans, or in connection
with, or as support for, any of the foregoing, whether by the
Borrower or a Third Party, and any updates or renewals thereof
(including, without limitation, the Collateral Agreement, the
Guaranty and the Security Agreement).
“
Guarantor ” means (i) Gerald J. Burnett and (ii)
Gerald J. Burnett and Marjorie J. Burnett as Trustees for The
Gerald J. Burnett and Marjorie J. Burnett Revocable
Trust.
“
Guaranty ” means the Amended and Restated Guaranty
dated as of December 22, 2008 by the Guarantor in favor of the
Banks guarantying, among other things, the Borrower’s
obligations to the Bank under this Note hereto, as amended,
restated or otherwise modified from time to time.
“
Interest Payment Date ” shall mean (i) the last
Banking Day of each calendar month for Prime Loans commencing
January 31, 2007; (ii) the last Banking Day of each calendar
month and on the last day of the Interest Period with respect to
Libor Loans (and for any Libor Loan with an Interest Period longer
than three months, every three months); and (iii) on any payment of
principal.
“
Interest Period ” shall mean (i) with respect to a
Prime Loan, the period commencing on the date such Prime Loan is
made and ending on the earlier of the Final Maturity Date or the
date recorded by the Bank on its books or if such day is not a
Banking Day, then on the immediately succeeding Banking Day, and
(ii) with respect to a Libor Loan, the period commencing on the
date such Libor Loan is made and ending on the numerically
corresponding day One, Three or Six calendar months
thereafter, as recorded by the Bank on its books, or if such day is
not a Banking Day, then on the immediately succeeding Banking Day;
provided that if such Banking Day would fall in the next calendar
month, such Interest Period shall end on the immediately preceding
Banking Day; and provided, further, that each such Interest Period
which commences on the last Banking Day of a calendar month (or on
any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last
Banking Day of the appropriate calendar month. No
Interest Period may extend beyond the Final Maturity
Date.
“
Libor Rate ” shall mean the rate per annum (rounded
upwards, if necessary, to the nearest 1/16 of 1%) quoted by the
Bank at approximately 11:00 a.m. London time (or as soon thereafter
as practicable) two Banking Days prior to the first day of such
Loan for the offering by the Bank to leading banks in the London
interbank market of U.S. dollar deposits having a term comparable
to such Loan and in an amount comparable to the principal amount of
such Loan.
“ Main
Office ” shall mean the main office of the Bank,
currently located at 1111 Polaris Parkway, Columbus, Ohio
43240.
“
Maximum Facility Amount ” shall mean the lesser of
(i) Ten Million Dollars ($10,00,000) and (ii) the
value assigned by the Bank from time to time, in its sole
reasonable discretion, to the collateral, if any, pledged and
collaterally assigned to the Bank, and in which the Bank has a
first-priority security interest and against which the Bank has a
right of setoff, as security for the Borrower’s payment of
its obligations under this Note.
“ Prime Rate ” shall mean the
rate of interest per annum announced from time to time by the Bank
as its prime rate. Each change in the Prime Rate shall
be effective from and including the date the change is announced as
being effective. The Prime Rate is a reference rate and
may not be the Bank’s lowest rate.
“
Regulation D ” shall mean Regulation D of the Board of
Governors of the Federal Reserve System.
“
Regulatory Change ” shall mean any change after the
date of this Note in United States federal, state or municipal laws
or any foreign laws or regulations (including Regulation D) or the
adoption or making after such date of any interpretations,
directives or requests applying to a class of banks, including the
Bank, of or under any United States federal, state or municipal
laws or any foreign laws or regulations (whether or not having the
force of law) by any court or governmental or monetary authority
charged with the interpretation or administration
thereof.
“
Reserve Requirement ” shall mean, for any Libor Loan,
the average maximum rate at which reserves (including any marginal,
supplemental or emergency reserves) are required to be maintained
during the term of such Loan under Regulation D by member banks of
the Federal Reserve System in New York City with deposits exceeding
one billion U.S. dollars, or as otherwise established by the Board
of Governors of the Federal Reserve System and any other banking
authority to which the Bank is subject, against “Eurocurrency
liabilities” (as such term is used in Regulation
D). Without limiting the effect of the foregoing, the
Reserve Requirement shall reflect any other reserves required to be
maintained by such member banks by reason of any Regulatory Change
against (x) any category of liabilities which includes deposits by
reference to which the Libor Rate is to be determined or (y) any
category of extensions of credit or other assets which include
Libor Loans. The Reserve Requirement shall be adjusted
automatically on and as of the effective date of any change in any
reserve percentage.
“
SEC ” means the Securities and Exchange
Commission.
“
Security Agreement ” shall mean the Second Amended and
Restated Security Agreement dated as of December 22, 2008 by
the Borrower in favor of the Bank securing, among other things, the
Borrower’s obligations to the Bank under this Note, as
amended, restated or otherwise modified from time to
time.
“
Third Party ” shall mean any party liable with respect
to, or otherwise granting support for, this Note, whether by
guaranty, subordination, grant of security or otherwise.
2. Borrowings, Conversions, Renewals
and Prepayments. (a) The Borrower shall deliver a
Borrowing Notice to the Bank, which shall be
irrevocable, by 12:00 noon New York City time three (3)
Banking Days prior to each requested borrowing of a Libor Loan and
by 12:00 noon New York City time on the date of each requested
borrowing of a Prime Loan; provided that no Libor Loan shall be in
a minimum amount less than $500,000; provided, further, that no
Prime Loan shall be in an amount less than $30,000; and provided,
further, that the aggregate outstanding principal amount of all
Loans shall not exceed the Maximum Facility
Amount. Subject to the provisions of this Note, the
Borrower shall have the right to (i) convert one type of Loan into
another type of Loan on the last day of the Interest Period with
respect to a Libor Loan or at any time for a Prime Loan, or (ii)
renew any Libor Loan as a Libor Loan on the last day of the
Interest Period with respect to such Libor Loan; provided that the
Borrower shall give the Bank irrevocable notice by 12:00 noon New
York City time three Banking Days prior to conversion into or
renewal as a Libor Loan, and by 12:00 noon New York City time on or
before the date of conversion into a Prime Loan. If the
Borrower shall fail to give notice to the Bank of the renewal of
any Libor Loan as provided herein, such Libor Loan shall
automatically become a Prime Loan on the last day of the Interest
Period thereof; provided that the Bank may renew such Loan as a
Libor Loan for an Interest Period equal to that then ending,
provided that no such renewal shall be made if the number of months
in the renewal period is greater than six.
(b) The
Borrower shall have the right to make prepayments of principal at
any time or from time to time, provided that: (i) the
Borrower shall give the Bank irrevocable notice of each prepayment
by 12:00 noon New York City time three Banking Days prior to
prepayment of a Libor Loan, and by 12:00 noon New York City time on
the date of prepayment of a Prime Loan; (ii) Libor Loans may be
prepaid prior to the last day of their Interest Period only if
accompanied by payment of the additional compensation calculated in
accordance with paragraph 5 below, if applicable; (iii) all
prepayments of Libor Loans shall be in a minimum amount equal to
the lesser of $100,000 or the unpaid principal amount of this Note;
and (iv) all prepayments of Prime Rate Loans shall be in a minimum
amount equal to the lesser of $30,000 or the unpaid principal
amount of this Note.
3.
Additional Costs. (a) If as a result of any
Regulatory Change which (i) changes the basis of taxation of any
amounts payable to the Bank under the Note (other than taxes
imposed on the overall net income of the Bank or the lending office
by the jurisdictions in which the Main Office of the Bank or the
lending office are located) or (ii) imposes or modifies any
reserve, special deposit, deposit insurance or assessments, minimum
capital, capital ratios or similar requirements relating to any
extension of credit or other assets of, or any deposits with or
other liabilities of the Bank, or (iii) imposes any other condition
affecting this Note, the Bank determines (which determination shall
be conclusive absent manifest error) that the cost to it of making
or maintaining a Libor Loan is increased or any amount received or
receivable by the Bank under this Note is reduced, then the
Borrower will pay to the Bank on demand an additional amount that
the Bank determines will compensate it for the increased cost or
reduction in amount.
(b) Without
limiting the effect of the foregoing provisions of this Section 3
(but without duplication), the Borrower shall pay to the Bank from
time to time on request such amounts as the Bank may determine to
be necessary to compensate the Bank for any costs which it
determines are attributable to the maintenance by it or any of its
affiliates pursuant to any law or regulation of any jurisdiction or
any interpretation, directive or request (whether or not having the
force of law and whether in effect on the date of this Note or
thereafter) of any court or governmental or monetary authority of
capital in respect of the Loans hereu