THE INTENTION OF THE PARTIES THAT BORROWER HAS THE OPPORTUNITY FOR
SUCCESSIVE STREAMLINE PERIODS TO APPLY WHEN AND TO THE EXTENT THE CONDITIONS
THERETO ARE SATISFIED.
(C)
TERMINATION; REPAYMENT.
THE REVOLVING LINE
TERMINATES ON THE REVOLVING LINE MATURITY DATE, WHEN THE PRINCIPAL AMOUNT OF ALL
ADVANCES, THE UNPAID INTEREST THEREON, AND ALL OTHER OBLIGATIONS RELATING TO THE
REVOLVING LINE SHALL BE IMMEDIATELY DUE AND PAYABLE.
2.1.2
LETTERS OF CREDIT SUBLIMIT.
(A)
SUBJECT TO THE OVERALL SUBLIMIT IN
SECTION 2.1.5 BELOW, AS PART OF THE REVOLVING LINE, BANK SHALL ISSUE OR HAVE
ISSUED LETTERS OF CREDIT DENOMINATED IN DOLLARS OR A FOREIGN CURRENCY FOR
BORROWER'S ACCOUNT. THE AGGREGATE DOLLAR EQUIVALENT AMOUNT UTILIZED FOR THE
ISSUANCE OF LETTERS OF CREDIT SHALL AT ALL TIMES REDUCE THE AMOUNT OTHERWISE
AVAILABLE FOR ADVANCES UNDER THE REVOLVING LINE. THE AGGREGATE AMOUNT AVAILABLE
TO
1
BE USED FOR THE ISSUANCE OF LETTERS OF CREDIT IS TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS ($2,500,000) (THE "LC SUBLIMIT"), SUBJECT TO THE OVERALL
SUBLIMIT IN SECTION 2.1.5 BELOW, AND IN ADDITION MAY NOT EXCEED THE AVAILABILITY
AMOUNT.
(B)
IF, ON THE REVOLVING LINE MATURITY DATE (OR
THE EFFECTIVE DATE OF ANY TERMINATION OF THIS AGREEMENT), THERE ARE ANY
OUTSTANDING LETTERS OF CREDIT, THEN ON SUCH DATE BORROWER SHALL PROVIDE TO BANK
CASH COLLATERAL IN AN AMOUNT EQUAL TO 105% OF THE DOLLAR EQUIVALENT OF THE FACE
AMOUNT OF ALL SUCH LETTERS OF CREDIT PLUS ALL INTEREST, FEES, AND COSTS DUE OR
TO BECOME DUE IN CONNECTION THEREWITH (AS ESTIMATED BY BANK IN ITS GOOD FAITH
BUSINESS JUDGMENT), TO SECURE ALL OF THE OBLIGATIONS RELATING TO SUCH LETTERS OF
CREDIT.
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 STANDARD APPLICATION AND LETTER OF CREDIT AGREEMENT (THE "LETTER OF
CREDIT APPLICATION").
BORROWER AGREES TO EXECUTE ANY FURTHER DOCUMENTATION IN
CONNECTION WITH THE LETTERS OF CREDIT AS BANK MAY REASONABLY REQUEST.
BORROWER
FURTHER AGREES TO BE BOUND BY THE REGULATIONS AND INTERPRETATIONS OF THE ISSUER
OF ANY LETTERS OF CREDIT GUARANTIED BY BANK AND OPENED FOR BORROWER'S ACCOUNT OR
BY BANK'S INTERPRETATIONS OF ANY LETTER OF CREDIT ISSUED BY BANK FOR BORROWER'S
ACCOUNT, AND BORROWER UNDERSTANDS AND AGREES THAT BANK SHALL NOT BE LIABLE FOR
ANY ERROR, NEGLIGENCE, OR MISTAKE, WHETHER OF OMISSION OR COMMISSION, IN
FOLLOWING BORROWER'S INSTRUCTIONS OR THOSE CONTAINED IN THE LETTERS OF CREDIT OR
ANY MODIFICATIONS, AMENDMENTS, OR SUPPLEMENTS THERETO.
(C)
THE OBLIGATION OF BORROWER TO IMMEDIATELY
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, SUCH LETTERS OF CREDIT, AND THE LETTER OF
CREDIT APPLICATION.
(D)
BORROWER MAY REQUEST THAT BANK ISSUE A
LETTER OF CREDIT PAYABLE IN A FOREIGN CURRENCY.
IF A DEMAND FOR PAYMENT IS MADE
UNDER ANY SUCH LETTER OF CREDIT, BANK SHALL TREAT SUCH DEMAND AS AN ADVANCE TO
BORROWER OF THE DOLLAR EQUIVALENT