SUM
OR SUMS NOT TO EXCEED US$789,606.80 (SEVEN HUNDRED EIGHTY NINE THOUSAND SIX
HUNDRED SIX AND 80/100 UNITED STATES DOLLARS) IN THE AGGREGATE, EFFECTIVE
IMMEDIATELY.
THIS LETTER OF CREDIT SHALL BE PAYABLE IN IMMEDIATELY AVAILABLE FUNDS IN U.S.
DOLLARS. FUNDS UNDER THIS CREDIT ARE PAYABLE TO YOU UPON YOUR PRESENTATION TO US
A SIGHT DRAFT DRAWN ON US IN THE FORM ATTACHED HERETO AS ANNEX I ACCOMPANIED BY
BENEFICIARY'S STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED REPRESENTATIVE
READING AS FOLLOWS:
"I (STATE NAME AND TITLE) HEREBY CERTIFY THAT I AM AN AUTHORIZED REPRESENTATIVE
OF MACK-CALI CW REALTY ASSOCIATES LLC AND I FURTHER CERTIFY THAT THE AMOUNT OF
THE ACCOMPANYING DRAFT REPRESENTS FUNDS DUE US AS AMERICAN BANK NOTE
HOLOGRAPHICS, INC. HAS FAILED TO COMPLY WITH THE TERMS AND CONDITIONS OF THE
SECOND AMENDMENT TO THE LEASE AGREEMENT DATED JULY 26, 2006 BETWEEN MACK-CALI CW
REALTY ASSOCIATES LLC AND AMERICAN BANK NOTE HOLOGRAPHICS, INC."
ALL DRAFTS MUST BE MARKED: "DRAWN UNDER LETTER OF CREDIT NO. 18103596-00-000
DATED AUGUST 24, 2006 OF PNC BANK, NATIONAL ASSOCIATION."
IT IS A CONDITION OF THE LETTER OF CREDIT THAT THE TOTAL AMOUNT SHALL
AUTOMATICALLY REDUCE WITHOUT AMENDMENT IN ACCORDANCE WITH THE FOLLOWING
SCHEDULE:
DATE OF REDUCTION
AMOUNT OF REDUCTION
LC AMOUNT
JANUARY 15, 2007
$
65,800.57
$
723,806.23
FEBRUARY I5, 2007
$
65,800.57
$
658,005.66
MARCH 15, 2007
$
65,800.57
$
592,205.09
APRIL 15, 2007
$
65,800.57
$
526,404.52
MAY 15, 2007
$
65,800.57
$
460,603.95
JUNE 15, 2007
$
65,800.57
$
394,803.38
JULY 15, 2007
$
65,800.57
$
329,002.81
AUGUST 15, 2007
$
65,800.57
$
263,202.24
SEPTEMBER 15, 2007
$
65,800.57
$
197,401.67
OCTOBER 15, 2007
$
65,800.57
$
131.601.10
NOVEMBER 15, 2007
$
65,800.57
$
65,800.53
DECEMBER 15, 2007
$
65,800.53
-0-
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THIS LETTER OF CREDIT EXPIRES WITH OUR CLOSE OF BUSINESS AT 5:00 P.M. EASTERN
TIME AT THIS OFFICE ON DECEMBER 15, 2007.
WE HEREBY ENGAGE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE
TERMS AND CONDITIONS OF THIS LETTER OF CREDIT WILL BE DULY HONORED IF PRESENTED
TO US AT THIS OFFICE ON OR BEFORE THE EXPIRY DATE.
THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES 1998,
INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590.
PNC BANK, NATIONAL ASSOCIATION
GLOBAL TRADE SERVICE OPERATIONS
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