Document:

Exhibit 10.14

 

REVOLVING CREDIT PROMISSORY NOTE

(LIBOR/PRIME)

 

$10,000,000                                                                                                                                      Dated
as of December 23, 2006

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 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 minus
2.00% (such Loan a “Prime Loan”), or (ii) a fixed rate per annum equal to the
Adjusted Libor Rate applicable to such Loan plus 0.75%
(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”).

In consideration
of the Bank’s granting the Commitment to the Borrower, the Borrower hereby
agrees to pay to the Bank a facility fee in the amount of Ten Thousand Dollars
($10,000).  The facility fee shall be due
and payable on the first Interest Payment Date.

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.

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“Borrowing Notice” shall
mean a request for a borrowing substantially in the forma of Exhibit A
hereto.

 

“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).

“Disclosure
Schedule” means the schedule attached hereto as Exhibit B.

“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.

“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, Two, 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

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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.

“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

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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 hereunder (such
compensation to include, without limitation, an amount equal to any reduction
in return on assets or equity of the Bank to a level below that which it could
have achieved but for such law, regulation, interpretation, directive or
request).

 

4.             Unavailability, Inadequacy or Illegality of Libor Rate.  Anything herein to the contrary
notwithstanding, if the Bank determines (which determination shall be
conclusive) that:

 

(a)           quotations of interest rates for the
relevant deposits referred to in the definition of Libor Rate are not being
provided in the relevant amounts or for the relevant maturities for purposes of
determining the rate of interest for a Libor Loan; or

 

(b)           the definition of Libor Rate does not
adequately cover the cost to the Bank of making or maintaining a Libor Loan; or

 

(c)           as a result of any Regulatory Change
(or any change in the interpretation thereof) adopted after the date hereof,
the Main Office of the Bank or the lending office is subject to any taxes,
reserves, limitations, or other charges, requirements or restrictions on any
claims of such office on non-United States residents (including, without
limitation, claims on non-United States offices or affiliates of the
Bank) or in respect of the excess above a specified level of such claims; or

 

(d)           it is unlawful for the Bank or the
lending office to maintain any Libor Loan at the Libor Rate;

 

THEN, the Bank shall give the Borrower prompt notice thereof, and so
long as such condition remains in effect, any existing Libor Loan shall bear
interest as a Prime Loan and the Bank shall make no Libor Loans.

 

5.             Certain Compensation.  If for any reason there is a principal
payment of a Libor Loan on a date other than the last day of the applicable
Interest Period with respect thereto (whether by prepayment, acceleration,
conversion or otherwise), the Borrower will pay to the Bank such amount or
amounts as shall be sufficient (in the reasonable opinion of the Bank) to
compensate the Bank for any loss, cost or expense which the Bank determines is
attributable to such payment.

 

6.             Representations.  The Borrower represents and warrants that:

 

(a)           the Facility Documents constitute the
legal, valid and binding obligations of the Borrower, enforceable against the
Borrower in accordance with their terms, except as the enforcement hereof and
thereof may be limited by bankruptcy, insolvency, or other similar laws
affecting the enforcement of creditors’ rights generally and subject to the
applicability of general principles of equity;

 

(b)           the execution, delivery and
performance by the Borrower of the Facility Documents and all other documents
contemplated hereby or thereby, and the use of the proceeds of any of the
Loans, do not and will not (i) conflict with or constitute a breach of, or
default under, or require any consent under, or result in the creation of any
lien, charge or encumbrance upon the property or assets of the Borrower
pursuant to any other agreement or instrument (other than any pledge of or
security interest granted in any collateral pursuant to any Facility Document)
to which the Borrower is a party or is bound or by which its properties may be
bound or affected; or (ii) violate any provision of any law, rule, regulation
(including, without limitation, Regulation U of the Federal Reserve Board),
order, writ, judgment, injunction, decree, determination or award presently in
effect having applicability to the Borrower;

 

(c)           no consent, approval or authorization
of, or registration, declaration or filing with, any governmental authority or
other person or entity is required as a condition to or in connection with the
due and valid execution, delivery and performance by the Borrower of any
Facility Document;

 

(d)           there are no actions, suits,
investigations or proceedings pending or, to Borrower’s knowledge, threatened
at law, in equity, in arbitration or by or before any other authority involving
or affecting:  (i) the Borrower that
could reasonably be expected to have a material adverse effect on the financial
condition or any material part of

 4
 

 

the assets or properties of the Borrower (provided, however, that set
forth on the Disclosure Schedule are certain pending suits, none of which could
reasonably be expected to have a material adverse effect on the prospects,
financial condition or any material part of the assets or properties of the
Borrower); (ii) any part of the collateral (if any) pledged by Borrower or any
Third Party under any Facility Document; or (iii) any of the transactions
contemplated in the Facility Documents. 
There are currently no material judgments entered against the Borrower
and the Borrower is not in default with respect to any judgment, writ,
injunction, order, decree or consent of any court or other judicial authority,
which default is likely to have or has had a material adverse effect on the
prospects or condition of the Borrower; in the event that the Borrower is a
partnership, limited liability partnership, corporation or limited liability
company, the Borrower also represents and warrants that it is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization, and has all requisite power and authority to
execute, deliver and perform its obligations under the Facility Documents.

Each borrowing request by
the Borrower under this Note shall constitute a representation and warranty
that the statements above are true and correct in all material respects both on
the date of such request and on the date of the borrowing.  Each borrowing request shall also constitute
a representation that no Event of Default under this Note has occurred and is
continuing or would result from such borrowing.

7.             Events of Default.  If any of the following events of default
shall occur (each an “Event of Default”):

(a)           the Borrower shall fail to pay
(i) any principal of this Note as and when due and payable,
(ii) interest thereon within five (5) Banking Days of when due and
payable or (iii) any other amount payable hereunder within ten (10)
Banking Days of when due and payable;

 

(b)           any representation or warranty made
or deemed made by the Borrower in this Note or by the Borrower or any Third
Party in any Facility Document to which it is a party, or in any certificate,
document, opinion or financial or other statement furnished under or in
connection with a Facility Document, shall prove to have been incorrect in any
material respect when made or deemed made;

 

(c)           the Borrower or any Third Party shall
fail to perform or observe any term, covenant or agreement contained in any
Facility Document on its part to be performed or observed; provided, however, that if any such failure is
capable of remedy and if a grace period is not specifically provided for in
such Facility Document, performance of such other term, covenant or agreement,
such failure shall not constitute an Event of Default unless it is not remedied
within ten (10) Banking Days of the Borrower’s receipt of the Bank’s
request that such failure be remedied;

 

(d)           the Borrower (i) shall fail to
pay when due any of its indebtedness (including, but not limited to,
indebtedness for borrowed money) or any interest or premium thereon in an
aggregate amount of at least two hundred fifty thousand dollars ($250,000) or
(ii) the Borrower shall default or otherwise fail to perform any agreement to
which the Borrower is party or by which it is bound which results in the
holder(s) of indebtedness having the right, whether or not exercised, to
accelerate the maturity thereof in an aggregate amount of at least two hundred
fifty thousand dollars ($250,000);

 

(e)           the Borrower or any Third Party: (i)
shall generally not, or be unable to, or shall admit in writing its inability
to, pay its debts as its debts become due; (ii) shall make an assignment for
the benefit of creditors, or petition or apply to any tribunal for the
appointment of a custodian, receiver or trustee for its or a substantial part
of its assets; (iii) shall commence any proceeding under any law relating to
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation; (iv) shall have had any such petition filed, or any such
proceeding shall have been commenced against it, in which an adjudication is
made or order for relief is entered or which remains undismissed for a period
of 30 days; (v) shall have had a receiver, custodian or trustee appointed for
all or a substantial part of its property; or (vi) takes any action
effectuating, approving or consenting to any of the events described in clauses
(i) through (v);

 

(f)            the Borrower or any Third Party
shall be determined or adjudged incompetent or otherwise incapacitated by a
court of competent jurisdiction, die, dissolve or for any reason cease to be in
existence or shall merge or consolidate;

 

(g)           (i) the Borrower is involved in
a proceeding which may result in a forfeiture of all or a substantial part of
the Borrower’s assets or (ii) a judgment is entered against the Borrower
for the payment of in an aggregate amount of at least one hundred thousand
dollars ($100,000);

 

 5
 

 

(h)           there is, in the opinion of the Bank,
a material adverse change in the business, prospects or financial condition of
the Borrower;

 

(i)            any Facility Document granting a
security interest at any time and for any reason shall cease to create a valid
and perfected first priority security interest in and to the property purported
to be subject to the Facility Document or ceases to be in full force and effect
or is declared null and void, or the validity or enforceability of any Facility
Document is contested by any party to the Facility Document, or such signatory
to the Facility Document denies it has any further liability or obligation
under the Facility Document;

 

(j)  without the prior written consent of the
Bank, the Borrower incurs or permits to exist (i) any debt for borrowed
money (and any refinancing of such debt), other than debt for borrowed money hereunder
or debt for borrowed money listed on the September 30, 2006 form 10Q filed
with SEC by the Borrower or (ii) any lien
or other encumbrance upon or with respect to any of the Borrower’s real or
personal property securing (A) any of the Borrower’s obligations under
swap, hedge or similar agreements or (B) any guaranty or other contingent
liability of the Borrower;

 

(k)  without the prior written consent of the
Bank, the Borrower guarantees or otherwise becomes contingently liable for the
indebtedness for borrowed money of any entity;

 

(l)  the Borrower fails to furnish o the Bank
(i) within ten (10) days of filing of the same with the SEC, a copy
of each from 10K, form 10Q and form 8K filed with the SEC by the Borrower and
(ii) within ten (10) days after filing of the same is required (after
giving effect to any applicable extensions), a signed copy of the Borrower’s
federal tax return;

 

(m)  the Borrower fails to furnish any additional
financial information that the Bank may reasonably request from time to time
promptly upon the Bank’s request;

 

THEN, the Bank may, by
notice to the Borrower, declare the Commitment terminated and the unpaid
principal amount of this Note, accrued interest thereon and all other amounts
payable under this Note due and payable whereupon the same shall become and be
forthwith due and payable without presentment, demand, protest, notice of
acceleration or intention to accelerate or further notice of any kind, all of
which are hereby expressly waived by the Borrower; provided that in the case of
an event of default described in clause (e) above, the Commitment shall be
immediately terminated and the unpaid principal amount of this Note, accrued
interest and other amounts payable under this Note shall be immediately due and
payable; and provided further that in the case of an Event of Default described
in clause (f) above due to the death of the Borrower or any Third Party, the
Bank shall not make any additional Loans for a period of 60 days and the Bank
shall be suspended during such 60-day period.

8.             Expenses.  The Borrower agrees to reimburse the Bank on
demand for all reasonable costs, expenses and charges (including, without
limitation, fees and charges of counsel and costs allocated by internal legal
counsel) in connection with the preparation or modification of the Facility
Documents, performance or enforcement of the Facility Documents, or the defense
or prosecution of any rights of the Bank pursuant to any Facility Documents.

9.             Jurisdiction.  To the maximum extent not prohibited by
applicable law, the  Borrower hereby
irrevocably:  (i) submits to the
jurisdiction of any New York state or United States federal court sitting in
New York City over any action or proceeding arising out of this Note; (ii)
agrees that all claims in respect of such action or proceeding may be held and
determined in such New York state or federal court; (iii) agrees that any
action or proceeding brought against the Bank may be brought only in a New York
state or United States federal court sitting in New York county; (iv)  consents to the service of process in any
such action or proceeding in either of said courts by mailing thereof by the
Bank by registered or certified mail, postage prepaid, to the Borrower at its
address specified on the signature page hereof, or at the Borrower’s most
recent mailing address as set forth in the records of the Bank; and (v) waives
any defense on the basis of an inconvenient forum.

The Borrower
agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in any other jurisdiction by suit or proceeding in such
state and hereby waives any defense on the basis of an inconvenient forum.  Nothing herein shall affect the right of the
Bank to serve legal process in any other manner permitted by law or affect the
right of the Bank to bring any action or proceeding against the Borrower or its
property in the courts of any other jurisdiction.

10.          Waiver of Jury Trial.  THE BORROWER AND THE BANK
EACH WAIVE ANY RIGHT TO JURY TRIAL.

 6
 

 

11.          Miscellaneous.  (a) 
The provisions of this Note are intended to be severable.  If for any reason any provisions of this Note
shall be held invalid or unenforceable in whole or in part in any jurisdiction,
such provision shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without in any manner affecting the
validity or enforceability thereof in any other jurisdiction or the remaining
provisions thereof in any jurisdiction.

 

(b)           No amendment, modification, supplement
or waiver of any provision of this Note nor consent to departure by the
Borrower therefrom shall be effective unless the same shall be in writing and
signed by the Borrower and the Bank, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

 

(c)           No failure on the part of the Bank to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof or preclude any other or further exercise thereof or the exercise
of any other right.  The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

 

(d)           As used herein, the term Borrower
shall include all signatories hereto, if more than one.  In such event, the obligations, representations
and warranties of the Borrower hereunder shall be joint and several.  This Note shall be binding on the Borrower
and its successors and assigns and shall inure to the benefit of the Bank and
its successors and assigns, except that the Borrower may not delegate any of
its obligations hereunder without the prior written consent of the Bank.  With the consent of the Borrower, not to be
unreasonably withheld, the Bank may assign all or a portion of its rights and
obligations under this Note; provided that such consent shall not be required
(i) at any time that an Event of Default has occurred and is continuing, (ii)
in connection with any assignment to an affiliate of the Bank, or (iii) in
connection with any pledge or collateral assignment to secure obligations to a
Federal Reserve Bank.

 

(e)           Anything herein to the contrary
notwithstanding, the obligations of the Borrower under this Note shall be
subject to the limitation that payments of interest shall not be required to
the extent that receipt thereof would be contrary to provisions of law
applicable to the Bank limiting rates of interest which may be charged or
collected by the Bank.

 

(f)            Unless otherwise agreed in writing,
notices shall be given to the Bank and the Borrower at their telecopier numbers
(confirmed by telephone to their telephone numbers) or addresses set forth in
the signature page of this Note, or such other telecopier (and telephone)
number or address communicated in writing by either such party to the other.  Notices to the Bank shall be effective upon
receipt.

 

(g)           The obligations of the Borrower under
Sections 3, 5, 8, 9 and 10 hereof shall survive the repayment of the Loans.

 

(h)           Each reference herein to the Bank
shall be deemed to include its successors, endorsees, and assigns, in whose
favor the provisions hereof shall inure. 
Each reference herein to the Borrower shall be deemed to include the
heirs, executors, administrators, legal representatives, successors and assigns
of the Borrower, all of whom shall be bound by the provisions hereof.

 

(i)            This Note may be signed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument.

 

12.          Governing Law.  This Note shall be governed by and construed
in accordance with the laws of the State of New York, without regard to the
conflict of laws principles, and with the laws of the United States of America
as applicable.

The rest
of this page is intentionally blank.

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Address for Borrowing
Notices:

 

JPMorgan Chase Bank, N.A.

Attn:  Juan Espitia

1111 Fannin Street

14th Floor

Houston, Texas 77002

Telecopier:  (800) 576-3217

Telephone:  (713) 750-3217

 

With a courtesy copy to

JPMorgan Chase Bank, N.A.

Attn:  Nancy A. Sheppard

560 Mission Street, 12th floor

San Francisco, CA 94105

Telecopier:  415 315 8272

Telephone:  415 315 8285

 

Address for All Notices to the Bank Other than Borrowing Notices:

JPMorgan
Chase Bank, N.A.

Private
Bank Credit

Attn:  Patricia DeLeo

345 Park Avenue, Floor 04

New York, NY 10154-0004

Telecopier: 
(212464-2531

Telephone:  (212) 464-1883

 

With a courtesy copy to

JPMorgan Chase Bank, N.A.

Attn:  Nancy A. Sheppard

560 Mission
Street, 12th floor

San Francisco, CA
94105

Telecopier:  415 315 8272

Telephone:  415 315 8285

 

Avistar
Communications Corporation

	
  By:

  	
   

  	
  /s/ Robert J. Habig

  
	
   

  	
   

  	
  Name: Robert J. Habig

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ William L. Campbell

  
	
   

  	
   

  	
  Name: William L. Campbell

  
	
   

  	
   

  	
  Title: Chief Operating Officer

  

 8
 

 

Address for Notices to the
Borrower:

 

Attn:  Robert Habig

555 Twin Dolphin Drive

3rd Floor

Redwood Shores, CA 94065

Telecopier:  (650) 610-2505

Telephone:  (650) 610-2910

 

State of _________                                     )

) ss.:

County of ________                               )

 

On the ____ day of
December in the year 2006, before me, the undersigned, personally appeared _____________________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her capacity, and that
by his/her signature on the instrument, the individual, or the person upon
behalf of which the individual acted, executed the instrument.

____________________________________

Notary Public

 

State of _________                                     )

) ss.:

County of ________                               )

 

On the ____ day of
December in the year 2006, before me, the undersigned, personally appeared _____________________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her capacity, and that
by his/her signature on the instrument, the individual, or the person upon
behalf of which the individual acted, executed the instrument.

____________________________________

Notary Public

 

 9

 

Exhibit A

FORM OF BORROWING
NOTICE

Date: 
__________________

JPMorgan Chase Bank, N.A.

Attn:  Juan Espitia

1111 Fannin Street

14th Floor

Houston, Texas 77002

Telecopier:  (800) 576-3217

Telephone: 
(713) 750-3217

 

Gentlemen:

The undersigned hereby
requests a Loan (the “Requested Loan”) under the Revolving Credit Promissory
Note (Libor/Prime) dated as of December 23, 2006 by the undersigned to
your order with a maximum principal amount of $10,000,000 (the “Note”).  Initial capitalized terms used herein without
definition have the meanings given such terms in the Note.

The
undersigned is faxing this Borrowing Notice to you (i) if the Requested Loan is
a Prime Loan, by 12:00 noon (NYC time) on the “Disbursement Date” (as
specified below) and  (ii) if the Requested
Loan is a Money Market Loan, by 12:00 noon (NYC time) at least one Banking
Day prior to the Disbursement Date.  The
undersigned will promptly mail the signed original of this Borrowing Notice to
you.

Please book the Requested Loan as follows:

Disbursement Date:                      _________­­________
___, 20___

Amount:                                          $                                                                    

Type:                                               ____
LIBOR                ____ Prime

LIBOR Period (if applicable):       ____ 1 month    ____ 2
months    ____ 3 months    ____ 6 months

	
  Disbursement Instructions*:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Purpose:                          The
proceeds of the Requested Loan shall be used for working capital purposes.

 A-1
 

 

Immediately
upon funding of the Requested Loan, the aggregate principal amount of all Loans
then outstanding will be $__________________. *

 

In
witness whereof, the undersigned has executed this Borrowing Notice as of the
date first written above.

Avistar Communications Corporation

By:                                                                          

Name:                                                     

Title:                                                       

 

By:                                                                          

Name:                                                     

Title:                                                       

 

 

[Agreed as of date first written above:

 

 

	
  

  	
   

  	
   

  
	
  Gerald J. Burnett] *

  	
   

  	
   

  

 

 

 

	
  cc:

  	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
   

  	
  Attn: Nancy A.
  Sheppard

  
	
   

  	
   

  	
  560 Mission
  Street, 12th floor

  
	
   

  	
   

  	
  San Francisco,
  CA 94105

  
	
   

  	
   

  	
  Telecopier:
  (415) 315-8272

  
	
   

  	
   

  	
  Telephone: (415)
  315-8285

  

 

 

 

 

 

 

 

 

*              If
$8,000,000 or greater, the signature of Gerald J. Burnett will be required.

 A-2

 

Exhibit B

 

DISCLOSURE SCHEDULE

 

 B-1EXHIBIT 10.15

 

COLLATERAL
AGREEMENT

For value received, and in
consideration of one or more loans, letters of credit or other financial
accommodations extended by JPMORGAN CHASE BANK, N.A. or any of its subsidiaries
or affiliates (the “Bank”), to Avistar Communications Corporation, a Delaware
corporation (the “Obligor”, and, if more than one, collectively, the “Obligor”),
the undersigned and the Bank agree as follows:

1.             Definitions.

“Account Assets” means all
Deposits, Securities, securities entitlements and any other assets held in
trust, or in any custody, subcustody, safekeeping, investment management
accounts, or other accounts of the undersigned with the Bank or any other
custodian, trustee, Intermediary or Clearing System (all of which shall be considered
“financial assets” under the UCC).

“Account Control Agreement” means
a securities account control agreement or other similar agreement with any
Intermediary and shall specifically include any master securities account
control agreement among the Bank and any of its affiliates, as amended from
time to time.

 “Clearing System” means the Depository Trust
Company  (“DTC”), Cedel Bank, societe
anonyme, the Euroclear system and such other clearing or safekeeping system
that may from time to time be used in connection with transactions relating to
or the custody of any Securities, and any depository for any of the foregoing.

“Collateral” means:  (i) the Deposits, Securities and Account
Assets that are listed on Exhibit A; (ii) all additions to, and proceeds,
renewals, investments, reinvestments and substitutions of, the foregoing,
whether or not listed on Exhibit A; and (iii) all certificates, receipts and
other instruments evidencing any of the foregoing.

“Deposits” means the deposits of
the undersigned with the Bank or with any other Intermediary (whether or not
held in trust, or in any custody, subcustody, safekeeping, investment
management accounts, or other accounts of the undersigned with the Bank or any
other Intermediary).

“Intermediary” means (i) any party
acting as a financial intermediary or securities intermediary, including,
without limitation, affiliates of the Bank that are parties to any Account
Control Agreement from time to time.

“Liabilities” means indebtedness,
obligations and liabilities of any kind of the Obligor or of the undersigned to
the Bank, now or in the future, absolute or contingent, direct or indirect,
joint or several, due or not due, arising by operation of law or otherwise, and
costs and expenses incurred by the Bank in connection with the Collateral, this
Agreement or any Liability Document.

“Liability Document” means any
instrument, agreement or document evidencing, governing, or executed or
delivered in connection with the Liabilities.

“Securities” means the stocks,
bonds and other instruments and securities, whether or not held in trust or in
any custody, subcustody, safekeeping, investment management accounts or other
accounts of the undersigned with the Bank or any other Intermediary and
securities entitlements with respect to the foregoing.

“UCC”
means the Uniform Commercial Code in effect in the State of New York.  Unless the context otherwise requires, all
terms used in this Agreement which are defined in the UCC will have the
meanings stated in the UCC.

2.             Grant of Security Interest.

As security for the payment of
all the Liabilities, the undersigned pledges, transfers and assigns to the Bank
and grants to the Bank a security interest in and right of setoff against, the
Collateral and hereby agrees to be bound by the terms of any Account Control
Agreement among the Bank and its affiliates, as amended from time to time.

3.             Agreements of the Undersigned and
Rights of the Bank.

The undersigned agrees as follows
and irrevocably authorizes the Bank to exercise the rights listed below, at its
option, for its own benefit, either in its own name or in the name of the
undersigned, and appoints the Bank as its attorney-in-fact to take all action
permitted under this Agreement.

(a)           Deposits:  The Bank may:   (i) renew the Deposits on terms and for
periods the Bank deems appropriate; (ii) demand, collect, and receive
payment of any monies or proceeds due or to become due under the Deposits;
(iii) execute any instruments required for the withdrawal or repayment of the
Deposits; and (iv) in all respects deal with the Deposits as the owner;
provided that, as to (ii) through (iv), until the occurrence of a Default (as
defined below), the Bank will only take that action if, in its judgment,
failure to take that action would impair its rights under this Agreement or
diminish its operational control over Collateral.

(b)           Securities:  The Bank may: (i) transfer to the account of
the Bank any Securities whether in the possession of, or registered in the name
of, any Clearing System or held otherwise; (ii) transfer to the account of the
Bank with any Federal Reserve Bank any Securities held in book entry form with
any such Federal Reserve Bank; and (iii) transfer to the name of the Bank or
its nominee any Securities registered in the name of the undersigned and held
by the Bank and complete and deliver any necessary stock powers or other
transfer instruments; provided that until the occurrence of a Default, the Bank
will only take that action if, in its judgment, failure to take that action
would impair its rights under this Agreement or diminish its operational
control over Collateral, or if such Securities are held in a custody,
investment management or similar account.

 2
 

The undersigned grants to the
Bank an irrevocable proxy to vote any and all Securities and give consents,
waivers and ratifications in connection with those Securities upon and after
the occurrence of a Default.

All payments, distributions and
dividends in securities, property or cash shall be paid directly to and, at the
discretion of the Bank, retained by the Bank and held by it, until applied as
provided in this Agreement, as additional Collateral;  provided that until the occurrence of a
Default, interest on Deposits and cash dividends on Securities paid in the
ordinary course will be paid to the undersigned.

(c)           General:   The Bank may, in its name, or in the name of
the undersigned:  (i) execute and file
financing statements under the UCC or any other filings or notices necessary or
desirable to create, perfect or preserve its security interest, all without
notice (except as required by applicable law and not waivable) and without
liability except to account for property actually received by it; (ii) demand,
sue for, collect or receive any money or property at any time payable or receivable
on account of or in exchange for, or make any compromise or settlement deemed
desirable with respect to, any item of the Collateral  (but shall be under no obligation to do so);
(iii) make any notification (to the issuer of any certificate or Security, or
otherwise, including giving any notice of exclusive control to the
Intermediary) or take any other action in connection with the perfection or
preservation of its security interest  or
any enforcement of remedies, and retain any documents evidencing the title of
the undersigned to any item of the Collateral; and (iv) issue entitlement
orders with respect to any of the Collateral.

The undersigned
agrees that it will not file or permit to be filed any termination statement
with respect to the Collateral or any financing or like statement with respect
to the Collateral in which the Bank is not named as the sole secured party,
consent or be a party to any Account Control Agreement to which the Bank is not
also a party or sell, assign, or otherwise dispose of, grant any option with
respect to, or pledge, or otherwise encumber the Collateral.  At the request of the Bank the undersigned
agrees to do all other things which the Bank may deem necessary or advisable in
order to perfect and preserve its security interest, perfection and operational
control and to give effect to the rights granted to the Bank under this
Agreement or enable the Bank to comply with any applicable laws or
regulations.  Notwithstanding the foregoing,
the Bank does not assume any duty with respect to the Collateral and is not
required to take any action to collect, preserve or protect its or the
undersigned’s rights in any item of the Collateral.  The undersigned releases the Bank and agrees
to hold the Bank harmless from any claims, causes of action and demands at any
time arising with respect to this Agreement, the use or disposition of any item
of the Collateral or any action taken or omitted to be taken by the Bank with
respect thereto.  The undersigned
releases each Intermediary and agrees to hold each Intermediary harmless from
any claims, causes of action and demands at any time arising with respect to
any instruction made by Bank to any Intermediary purporting to be made under
this Agreement or any Account Control Agreement, it being understood that no
Intermediary shall have any duty to investigate Bank’s right to issue any such
instruction or any other matter related to any such instruction.

The rights granted to the Bank
pursuant to this Agreement are in addition to the rights granted to the Bank in
any custody, investment management, trust, Account Control Agreement or

 3
 

similar agreement. 
In case of conflict between the provisions of this Agreement and of any
other such agreement, the provisions of this Agreement will prevail.

4.             Loan Value of the Collateral.

The undersigned agrees that at
all times
the Liabilities may not exceed the aggregate Loan Value of the Collateral.  The undersigned will, at the Bank’s option,
either supplement the Collateral or make, or cause to be made, any payment
under the Liabilities to the extent necessary to ensure compliance with this
provision or the Bank may liquidate Collateral to the extent necessary to
ensure compliance with this provision.   “Loan
Value” means the value assigned by the Bank from time to time, in its sole
reasonable discretion, to each item of the Collateral.  The Bank retains the right to determine the
eligibility of the Collateral.

5.             Currency Conversion.

For calculation purposes, any
currency in which the Collateral is denominated (the “Collateral Currency”)
will be converted into the currency of the Liabilities (the “Liability Currency”)
at the spot rate of exchange for the purchase of the Liability Currency with
the Collateral Currency quoted by the Bank at such place as the Bank deems
appropriate (or, if no such rate is quoted on any relevant date, estimated by
the Bank on the basis of the Bank’s last quoted spot rate) or another
prevailing rate that the Bank deems more appropriate.

6.              Representations and
Warranties.

The undersigned represents and warrants that:

(a)           this Agreement constitutes the legal,
valid and binding obligation of the undersigned, enforceable against the
undersigned in accordance with its terms, except as the enforcement hereof and
thereof may be limited by bankruptcy, insolvency, or other similar laws
affecting the enforcement of creditors’ rights generally and subject to the
applicability of general principles of equity;

(b)           the execution,
delivery and performance by the undersigned of this Agreement and all other
documents contemplated hereby, do not and will not (i) conflict with or
constitute a breach of, or default under, or require any consent under, or,
except as contemplated hereby, result in the creation of any lien, charge or
encumbrance upon the property or assets of the undersigned pursuant to any
other agreement or instrument  to which
the undersigned is a party or is bound or by which its properties may be bound
or affected; or (ii) violate any provision of any law, rule, regulation (including,
without limitation, Regulation U of the Federal Reserve Board), order, writ,
judgment, injunction, decree, determination or award presently in effect having
applicability to the undersigned;

(c)           no consent, approval
or authorization of, or registration, declaration or filing with, any
governmental authority or other person or entity is required as a condition to
or in connection with the due and valid execution, delivery and performance by
the undersigned of this Agreement;

 4
 

(d)           there are no
actions, suits, investigations or proceedings pending or threatened at law, in
equity, in arbitration or by or before any other authority involving or
affecting:  (i)  the undersigned that, if adversely
determined, are likely to have a material adverse effect on the prospects or
condition of the undersigned; (ii) any material part of the assets or
properties of the undersigned or any part of the Collateral; or (iii) any of
the transactions contemplated in this Agreement.  There are currently no material judgments entered
against the undersigned and the undersigned is not in default with respect to
any judgment, writ, injunction, order, decree or consent of any court or other
judicial authority, which default is likely to have or has had a material
adverse effect on the prospects or condition of the undersigned;

(e)           in the event the
undersigned is not an Obligor, in executing and delivering this Agreement the
undersigned has (i) without reliance on the Bank or any information
received from the Bank and based upon such documents and information it deems
appropriate, made an independent investigation of the transactions contemplated
hereby and the Obligor, the Obligor’s business, assets, operations, prospects
and condition, financial or otherwise, and any circumstances which may bear
upon such transactions, the Obligor or the obligations and risks undertaken
herein with respect to the Liabilities; (ii) adequate means to obtain from the
Obligor on a continuing basis information concerning the Obligor and the Bank
has no duty to provide to the undersigned any such information; (iii) full and
complete access to the Liability Documents and any other documents executed in
connection with the Liability Documents; (iv) not relied and will not rely upon
any representations or warranties of the Bank not embodied herein or any acts
heretofore or hereafter taken by the Bank (including but not limited to any
review by the Bank of the affairs of the Obligor), and (v) determined that this Agreement will benefit the
undersigned directly or indirectly;

(f)            in the event that
the undersigned is a partnership, limited liability partnership, corporation or
limited liability company, the undersigned also represents and warrants that it
is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, and has all requisite power
and authority to execute, deliver and perform its obligations under this
Agreement;

(g)           in the event that
the undersigned is a trust, the undersigned also represents and warrants that
(i) it is a duly constituted and validly existing trust, (ii) the undersigned
has delivered to the Bank a true, complete and accurate copy of the agreement
pursuant to which it has been organized and all amendments and modifications
thereto, and (iii) the trustees of the undersigned signing this Agreement have
the legal capacity and full power and authority to execute, deliver, and
perform their obligations under, and to bind the undersigned to perform its
obligations under, this Agreement, and to execute and deliver any and all
documents and instruments in connection therewith;

(h)           the undersigned is
the sole owner of the Collateral and the Collateral is free of all encumbrances
except for the security interest in favor of the Bank created by this
Agreement;

(i)            as to Deposits and Account Assets,
the undersigned has not withdrawn, canceled, been repaid or redeemed all or any
part of any Deposits or Account Assets other than in compliance with this
Agreement and there is no such pending application; and

 5
 

(j)            as to Securities, the Securities have been duly
authorized and are fully paid and non-assessable, there are no
restrictions on pledge of the Securities by the undersigned nor on sale of the
Securities by the Bank (whether pursuant to securities laws or regulations or
shareholder, lock-up or other similar agreements) and the Securities are fully
marketable by the Bank as pledgee, without regard to any holding period, manner
of sale, volume limitation, public information or notice requirements.

7.             Default.

Each of the following is an event
of default (“Default”):

(i)  any sum payable on any of the Liabilities is
not  paid when due; (ii) any
representation and warranty of the undersigned or any party liable on or for
any of the Liabilities (including but not limited to the Obligor, a “Liability
Party”) in this Agreement or in any Liability Document shall prove to have been
incorrect in any material respect on or after the date hereof; (iii) the
undersigned or any Liability Party fails to perform or observe any term,
covenant, or condition under this Agreement or under any Liability Document;
(iv) any indebtedness of the undersigned or any Liability Party or interest or
premium thereon is not paid when due (whether by scheduled maturity, acceleration,
demand or otherwise); (v) the undersigned or any Liability Party: (a) is
generally not, or is unable to, or admits in writing its inability to, pay its
debts as its debts become due; (b) makes an assignment for the benefit of
creditors, or petitions or applies to any tribunal for the appointment of a
custodian, receiver or trustee for its or a substantial part of its assets; (c)
commences any proceeding under any law relating to bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution or liquidation; (d) has any such
petition filed, or any such proceeding has been commenced against it, in which
an adjudication is made or order for relief is entered or which remains
undismissed for a period of 30 days; (e) has a receiver, custodian or trustee
appointed for all or a substantial part of its property; or (f) takes any
action effectuating, approving or consenting to any of the events described in
this section (v); (vi) the undersigned or any Liability Party shall die,
dissolve or for any reason cease to be in existence or merge or consolidate; or
if the undersigned or any Liability Party is a partnership, limited liability
partnership or limited liability company, any general partner, partner or
member, respectively, shall die, dissolve or for any reason cease to be in
existence or cease to be a partner or member, as the case may be, or shall
merge or consolidate; (vii) the undersigned or any Liability Party is involved
in a proceeding relating to, or which may result in, a forfeiture of all or a
substantial part of the undersigned’s or any Liability Party’s assets or a
material judgment is entered against the undersigned or any Liability Party;
(viii) there is, in the opinion of the Bank, a material adverse change in the
business, prospects or financial condition of the undersigned or any Liability
Party.

8.             Remedies.

On a Default, the Bank will have
the rights and remedies under the UCC and the other rights granted to the Bank
under this Agreement and may exercise its rights without regard to any premium
or penalty from liquidation of any Collateral and without regard to the
undersigned’s basis or holding period for any Collateral.

 6
 

The Bank may sell in the Borough
of Manhattan, New York City, or elsewhere, in one or more sales or parcels, at
the price as the Bank deems best, for cash or on credit or for other property,
for immediate or future delivery, any item of the Collateral, at any broker’s
board or at public or private sale, in any reasonable manner permissible under
the UCC (except that, to the extent permissible under the UCC, the undersigned
waives any requirements of the UCC) and the Bank or anyone else may be the
purchaser of the Collateral and hold it free from any claim or right including,
without limitation, any equity of redemption of the undersigned, which right
the undersigned expressly waives.

The Bank may also, in its sole
discretion: (i) convert any part of the Collateral Currency into the Liability
Currency;  (ii) hold any monies or
proceeds representing the Collateral in a cash collateral account in the
Liability Currency or other currency that the Bank reasonably selects; (iii)
invest such monies or proceeds on behalf of the undersigned; and (iv) apply any
portion of the Collateral, first, to all costs and expenses of the Bank,
second, to the payment of interest on the Liabilities and any fees or
commissions to which the Bank may be entitled, third, to the payment of
principal of the Liabilities, whether or not then due, and fourth, to the
undersigned.

The undersigned will pay to the
Bank all expenses (including attorneys’ fees and legal expenses incurred by the
Bank and the allocated costs of its in-house counsel) in connection with the
exercise of any of the Bank’s rights or obligations under this Agreement or the
Liability Documents.  The undersigned
will take any action requested by the Bank to allow it to sell or dispose of
the Collateral.  Notwithstanding that the
Bank may continue to hold Collateral and regardless of the value of the
Collateral, the applicable Liability Party will remain liable for the payment
in full of any unpaid  balance of the
Liabilities.

9.             Jurisdiction.

To the maximum extent not prohibited by applicable law, the undersigned
hereby irrevocably: (i) submits to the jurisdiction of any New York state or
United States federal court sitting in New York City over any action or
proceeding arising out of this Agreement;(ii) agrees that all claims in respect
of such action or proceeding may be held and determined in such New York state
or federal court;  (iii) agrees
that any action or proceeding brought against the Bank may be brought only in a
New York state or United States federal court sitting in New York county;  (iv)
consents to the service of process in any such action or proceeding in either of
said courts by mailing thereof by the Bank by registered or certified mail,
postage prepaid, to the undersigned at its address specified on the signature
page hereof, or at the undersigned’s most recent mailing address as set forth
in the records of the Bank; and (v) waives any defense on the basis of
inconvenient forum.

The
undersigned agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in any other jurisdiction by suit or
proceeding in such state.  Nothing herein
shall affect the right of the Bank to serve legal process in any other manner
permitted by law or affect the right of the Bank to bring any action or
proceeding against the undersigned or its property in the courts of any other
jurisdiction.

 7
 

10.       Waiver of Jury Trial. THE
UNDERSIGNED AND THE BANK EACH WAIVE ANY RIGHT TO JURY TRIAL.

11.           Notices.

Unless otherwise agreed in
writing, notices may be given to the Bank and the undersigned at their
telecopier numbers (confirmed by telephone to their telephone numbers) or
addresses listed on the signature page of this Agreement, or such other
telecopier (and telephone) number or addresses communicated in writing by
either party to the other.  Notices to
the Bank are effective on receipt.

12.           Unconditional Obligations.

If the undersigned is not an
Obligor, the undersigned’s obligations under this Agreement are 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 Liability Documents or the Liabilities, or any other
amendment or waiver of or any consent to departure from any of the terms of any
Liability Document or the Liabilities; (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 item of the Collateral,
for all or any of the Liability Documents or the 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 Liability Document or the Liabilities; (d)
without being limited by the foregoing, any lack of validity or enforceability
of any Liability Document or the Liabilities; 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 Liability Documents or the transactions
contemplated thereby which might constitute a legal or equitable defense
available to, or discharge of, the Obligor or a guarantor.

13.           Miscellaneous.

(a)           As used herein, the term undersigned shall
include all signatories hereto, if more than one.  In such event, the obligations,
representations and warranties of the undersigned hereunder shall be joint and
several.  This Agreement shall be binding
on the undersigned and its successors and assigns and shall inure to the
benefit of the Bank and its successors and assigns, except that the undersigned
may not delegate any of its obligations hereunder without the prior written
consent of the Bank.

(b)           No amendment or waiver of any
provision of this Agreement nor consent to any departure by the undersigned
will be effective unless it is in writing and signed by the undersigned and the
Bank and will be effective only in that specific instance and for that specific
purpose.  No failure on the part of the
Bank to exercise, and no delay in exercising, any right will operate as a
waiver or preclude any other or further exercise or the exercise of any other
right.

 8
 

(c)           The rights and remedies in this Agreement are cumulative
and not exclusive of any rights and remedies which the Bank may have under law
or under other agreements or arrangements with the undersigned or any Liability
Party.

(d)           The provisions of this Agreement are intended to be
severable.  If for any reason any
provision of this Agreement is not valid or enforceable in whole or in part in
any jurisdiction, that provision will, as to that jurisdiction, be ineffective
to the extent of that invalidity or unenforceability without in any manner
affecting the validity or enforceability in any other jurisdiction or the
remaining provisions of this Agreement.

(e)           The undersigned hereby waives presentment, notice of
dishonor and protest of all instruments included in or evidencing the
Liabilities or the Collateral and any other notices and demands, whether or not
relating to those instruments.

(f)            This Agreement is governed by and construed according to
the law of the State of New York, without regard to the conflict of laws
principles, and with the laws of the United States of America as applicable.

(g)           This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument.

The rest of this page is
intentionally blank.

 9
 

IN WITNESS WHEREOF, the
undersigned has signed this Agreement as of this 23rd day of
December, 2006

	
  ACCEPTED:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  
	
  By:

  	
  J.P. Morgan Trust Company, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
         /s/ Nancy
  A. Sheppard

  	
   

  	
   

  
	
   

  	
  Name: Nancy A. Sheppard

  	
   

  
	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for notices to the Bank:

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  
	
  Private Bank
  Credit

  	
   

  
	
  Attn: Patricia DeLeo

  	
   

  
	
  345 Park Avenue,
  Floor 04

  	
   

  
	
  New York, NY
  10154-0004

  	
   

  
	
  Telecopier:

  	
   

  
	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a courtesy copy to

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  
	
  Attn: Nancy A. Sheppard

  	
   

  
	
  560 Mission
  Street, 12th floor

  	
   

  
	
  San Francisco,
  CA 94105

  	
   

  
	
  Telecopier:

  	
   

  
	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/ Gerald J. Burnett

  	
   

  	
   

  
	
  Gerald J. Burnett

  	
   

  
					

 

 10
 

 

	
  Address for notices:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gerald J. Burnett and Marjorie J. Burnett, as
  Trustee for

  	
   

  
	
  The Gerald J. Burnett and Marjorie J. Burnett
  Revocable Trust

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gerald J.
  Burnett, trustee

  	
   

  	
   

  	
   

  
	
   

  	
  Gerald J.
  Burnett

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Marjorie J.
  Burnett

  	
   

  	
   

  	
   

  
	
   

  	
  Marjorie J.
  Burnett

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address
  for notices:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  State of

  	
   

  	
    )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    )

  	
  ss.:

  	
   

  
	
  County of

  	
   

  	
    )

  	
   

  	
   

  
												

 

On the ____ day of December in the year 2006, before
me, the undersigned, personally appeared Gerald
J. Burnett, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  State of

  	
   

  	
    )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    )

  	
  ss.:

  	
   

  
	
  County of

  	
   

  	
    )

  	
   

  	
   

  
								

 

On the ____ day of December in the year 2006, before
me, the undersigned, personally appeared Marjorie
J. Burnett, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  

 

 11

EXHIBIT A

DESCRIPTION
OF THE COLLATERAL

1.  Deposits

	
  Type of Deposit

  (CD, TD,etc.)

  	
   

  	
  Location

  (NY, IBF-NY, etc.)

  	
   

  	
  Account,

  Contract or

  Certificate No.

  

 

2.  Stocks, Bonds and Other
Instruments and Securities

	
  Nature of Security

  or Obligation

  	
   

  	
  Number
  of

  Issuer

  	
   

  	
  Name of

  Units

  	
   

  	
  Certificate

  Number (if applicable)

  

 

3.  All Assets Held or To Be
Held in the Following Custody or Subcustody Accounts, Safekeeping Accounts,
Investment Management Accounts and/or other account with Intermediary:

Account Number:

 A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]