Commitment Letter from Gerald Burnett to Avistar Communications Corporation Regarding Funding Obligation
Gerald Burnett has agreed to provide up to $2 million in funding to Avistar Communications Corporation if the company's bank line with Comerica Bank is unavailable. The funds will help the company meet its obligations and will not need to be repaid before February 27, 2005. This commitment may end earlier if the company secures comparable financing or additional working capital up to the $2 million limit.
Exh 10.9.7
Avistar Communications Corporation
555 Twin Dolphin Drive, Suite 360
Redwood Shores, CA 94065
February 27, 2004
In the event that the Comerica Bank Loan and Security Agreement, as amended February 27, 2004, (the "Bank Line") is not sufficiently available to Avistar Communications Corporation (the Company) for any reason, I, Gerald Burnett, unconditionally commit to provide the Company adequate funds in order for the Company to meet its obligations as they become due. This commitment will not exceed $2.0 million (inclusive of any funds drawn by the Company and subject to my personal guarantee of the Company's obligations under the Bank Line) and any funds provided to the Company under this commitment shall not be due for repayment by the Company any sooner than February 27, 2005. This commitment shall terminate, pro rata, prior to February 27, 2005 to the extent that there occurs a financing event providing for comparable funding, or other net addition to working capital up to the $2.0 million commitment.
/s/ Gerald J. Burnett
Gerald Burnett
