Common use of Letter of Credit Sublimit Clause in Contracts

Letter of Credit Sublimit. Subject to the terms and conditions of this Agreement, at any time prior to the Revolving Maturity Date, Bank agrees to issue letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, the “Letters of Credit”) in an aggregate outstanding face amount (the “Letter of Credit Outstandings”) not to exceed the lesser of the Revolving Line or the Borrowing Base minus, in each case, the aggregate amount of the outstanding Advances, Cash Management Outstandings and the Foreign Exchange Outstandings at any time, provided that the Letter of Credit Advances Outstandings shall not exceed $750,000. All Letters of Credit shall be, in form and substance, acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form of standard application and letter of credit agreement (the “Application”), which Borrower hereby agrees to execute, including payment of Bank’s standard fees based on the face amount of each Letter of Credit. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall be deemed an Advance under Section 2.1(a). Prior to the Revolving Maturity Date, Borrower shall secure in cash all obligations under any outstanding Letters of Credit on terms acceptable to Bank. The obligation of Borrower to reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, the Application, and such Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct.

Letter of Credit Sublimit. Subject to the terms availability under the Revolving Line, and conditions in reliance on the representations and warranties of this AgreementBorrowers set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank agrees to shall issue letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, the “Borrowers such Letters of Credit”) in an aggregate Credit as Borrowers may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding face amount (the “Letter and undrawn amounts under all such Letters of Credit Outstandings”(i) shall not to exceed the lesser of the Revolving Line or the Borrowing Base minus, in each case, the aggregate amount of the outstanding Advances, Cash Management Outstandings and the Foreign Exchange Outstandings at any time, provided that time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances Outstandings for the purpose of calculating availability under the Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall not exceed $750,000be charged as Advances against the Revolving Line. All Letters of Credit shall be, be in form and substance, substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form of standard application and letter of credit agreement agreement. Borrowers will pay to Bank a Letter of Credit fee equal to one percent (the “Application”), which Borrower hereby agrees to execute, including payment 1.00%) per annum of Bank’s standard fees based on the face amount of each Letter of Credit. On any drawn but unreimbursed Credit outstanding under the Letter of Credit Sublimit, payable annually in advance (the “Letter of Credit Fee”), and will pay any other standard issuance and other fees that Bank notifies Borrowers it will charge for issuing and processing Letters of Credit, ; provided that the unreimbursed amount Letter of Credit Fee for any Letters of Credit issued by Bank that are cash-secured on terms satisfactory to Bank shall be deemed an Advance under Section 2.1(aone percent (1.00%). Prior to If, on the Revolving Maturity Date, Borrower shall secure in cash all obligations under there are any outstanding Letters of Credit Credit, then on terms acceptable such date Borrowers shall provide to Bank. The obligation Bank cash collateral in an amount equal to 105% of Borrower to reimburse Bank for drawings made under the face amount of all such Letters of Credit shall be absoluteplus all interest, unconditional and irrevocablefees, and shall be performed strictly costs due or to become due in accordance with connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the terms of this Agreement, the Application, and such Obligations relating to said Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct.

Letter of Credit Sublimit. Subject to the terms availability under the Committed Revolving Line and conditions the Facility B Revolving Line, and in reliance on the representations and warranties of this AgreementBorrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank agrees to shall issue letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, the “such Letters of Credit”Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) in an aggregate outstanding face amount (shall not at any time exceed the “Letter of Credit Outstandings”Sublimit, and (ii) not shall be deemed to exceed constitute Advances and/or Facility B Advances for the lesser purpose of calculating availability under the Committed Revolving Line and the Facility B Revolving Line, as appropriate. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances and/or Facility B Advances against the Committed Revolving Line or the Borrowing Base minusFacility B Revolving Line, as appropriate. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each case, the aggregate amount of the outstanding Advances, Cash Management Outstandings and the Foreign Exchange Outstandings at any time, provided that the such Letter of Credit Advances Outstandings and Bank shall not exceed $750,000have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. All Letters of Credit shall be, be in form and substance, substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s 's form of standard application and letter of credit agreement (the “Application”), which agreement. Borrower hereby agrees to execute, including payment of Bank’s will pay any standard issuance and other fees based on the face amount of each Letter of Credit. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall that Bank notifies Borrower will be deemed an Advance under Section 2.1(a). Prior to the Revolving Maturity Date, Borrower shall secure in cash all obligations under any outstanding Letters of Credit on terms acceptable to Bank. The obligation of Borrower to reimburse Bank charged for drawings made under Letters of Credit shall be absolute, unconditional issuing and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, the Application, and such processing Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct."

Letter of Credit Sublimit. Subject to the terms availability under the Committed Revolving Line, and conditions in reliance on the representations and warranties of this AgreementBorrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank agrees to shall issue letters of credit for the account of Borrower such standby letters of credit (each, a “Letter of Credit” and collectively, the “"Letters of Credit”") as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed Five Hundred Thousand Dollars ($500,000) in the aggregate, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. Unless Borrower shall have deposited with Bank cash collateral in an aggregate outstanding face amount (the “sufficient to cover all undrawn amounts under each such Letter of Credit Outstandings”) not to exceed the lesser of the Revolving Line or the Borrowing Base minusand Bank shall have agreed in writing, in each case, the aggregate amount of the outstanding Advances, Cash Management Outstandings and the Foreign Exchange Outstandings at any time, provided that the no Letter of Credit Advances Outstandings shall have an expiration date that is later than the date which is 10 days prior to the Revolving Maturity Date. In the event that the Committed Revolving Line is cancelled or not exceed $750,000renewed, then Borrower agrees to deposit with Bank cash collateral in an amount to secure all outstanding Letters of Credit. All Letters of Credit shall be, be in form and substance, substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s 's form of standard application and letter of credit agreement (the “Application”), which agreement. Borrower hereby agrees to execute, including payment of Bank’s will pay any standard issuance and other fees based on the face amount of each Letter of Credit. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall that Bank notifies Borrower will be deemed an Advance under Section 2.1(a). Prior to the Revolving Maturity Date, Borrower shall secure in cash all obligations under any outstanding Letters of Credit on terms acceptable to Bank. The obligation of Borrower to reimburse Bank charged for drawings made under Letters of Credit shall be absolute, unconditional issuing and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, the Application, and such processing Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct.

Letter of Credit Sublimit. Subject to the terms and conditions of this Agreement, at any time prior to the Revolving Maturity Date, Bank agrees to issue letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, the “Letters of Credit”) in an aggregate outstanding face amount (the “Letter of Credit Outstandings”) not to exceed the lesser of the Revolving Line or the Borrowing Base minus, in each case, the aggregate amount of the outstanding Advances, Cash Management Outstandings and the Foreign Exchange Outstandings at any time, provided that the Letter of Credit Advances Outstandings shall not exceed $750,000***. All Letters of Credit shall be, in form and substance, acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form of standard application and letter of credit agreement (the “Application”), which Borrower hereby agrees to execute, including payment of Bank’s standard fees based on the face amount of each Letter of Credit. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall be deemed an Advance under Section 2.1(a). Prior to the Revolving Maturity Date, Borrower shall secure in cash all obligations under any outstanding Letters of Credit on terms acceptable to Bank. The obligation of Borrower to reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, the Application, and such Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct.