SiliconBeat

Carl Berg agreed to guarantee up to $6.5 million in a credit from Heritage Bank for Focus Enhancements, a Campbell company that makes tools for digital video systems and on whose board he sits. Berg, a real estate and venture investor in Silicon Valley, has “first priority security interest” in most of of Focus Enhancement’s assets. He was also given a warrant to purchase 200,000 shares of the company for 40 cents each through March 4, 2013, according to an SEC filing Thursday.

The company, which has yet to report results for its quarter ended Dec. 31, has reported a net loss in each quarter over the previous four years. In an effort to conserve cash, the company approved a “salary swap” program for its executive officers on Feb. 4 under which they are granted fully vested stock in exchange for a fifteen percent reduction in pay for the next twenty straight periods ending Dec. 12.

Under the plan, each dollar of pay that an executive officer forgoes converts into stock at a predetermined exchange rate. For the first five exchange dates, the exchange rates are $0.40, $0.45, $0.50, $0.55 and $0.60, respectively. For the remaining exchange dates, the exchange rate will be the greater of $0.60 or 80% of the trailing 15 day average price immediately before the exchange date.

Focus was told last month by the Nasdaq Stock Market that it would be given 180 more days to bring its stock price up over $1 for a minimum of 10 days or else it would be delisted. Focus shares, which fell 47 percent last year, are down another 26 percent so far this year. They closed Thursday at $0.37.