Common use of Letters of Credit Sublimit Clause in Contracts

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this Agreement, Bank agrees to issue or cause to be issued 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 not to exceed the Revolving Line minus ----- the aggregate amount of the outstanding Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars ($500,000). 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 Bank's standard fee per annum 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). No Letter of Credit shall have an expiration date which is later than (i) the Revolving Maturity Date unless Borrower secures in cash the obligations under such Letter of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) 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.

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this Agreement, at any time prior to the Revolving Maturity Date, Bank agrees to issue or cause to be issued 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 not to exceed the lesser of the Revolving Line minus ----- or the Borrowing Base minus, in each case, the aggregate amount of the outstanding Advances, Existing Equipment Advances, and Term Loan Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit, including the Letter of Credit in the face amount of $100,000 which was issued for the account of Borrower on August 3, 2005, shall not exceed Five Hundred Thousand Dollars ($500,000)1,000,000. 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 ’s form of standard application and letter of credit agreement (the "“Application"”), which Borrower hereby agrees to execute, including Bank's ’s standard fee per annum on the face amount of each Letter of Creditfee. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall be deemed an Advance under Section 2.1(a). No Letter of Credit shall have an expiration date which is later than (i) Prior to the Revolving Maturity Date unless or if an Event of Default has occurred, Borrower secures shall secure in cash the all obligations under such Letter any outstanding Letters of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) . 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 ’s gross negligence or willful misconduct.

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this Agreement, Bank agrees to issue or cause to be issued 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 not to exceed the Revolving Line minus ----- the aggregate amount of the outstanding Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars ($500,000). 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 ’s form of standard application and letter of credit agreement (the "“Application"”), which Borrower hereby agrees to execute, including Bank's ’s standard fee per annum 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). No Letter of Credit shall have an expiration date which is later than (i) the Revolving Maturity Date unless Borrower secures in cash the obligations under such Letter of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) 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 ’s gross negligence or willful misconduct.

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this Agreement, Bank agrees to issue or cause to be issued 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 not to exceed the lesser of the Revolving Line minus ----- or the Borrowing Base minus, in each case, the aggregate amount ----- of the outstanding Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars ($500,000). 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 Bank's standard fee per annum 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). No Letter of Credit shall have an expiration date which is later than (i) the Revolving Maturity Date unless Borrower secures in cash the obligations under such Letter of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) 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.

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this AgreementAgreement and the availability under the Revolving Line and the Borrowing Base, at any time prior to the Revolving Maturity Date, Bank agrees to issue or cause to be issued 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 not to exceed $1,000,000 less any amounts outstanding under the Cash Management Sublimit and the Foreign Exchange Sublimit, and that availability under the Revolving Line minus ----- shall be reduced by, the aggregate amount of the outstanding Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars ($500,000)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 ’s form of standard application and letter of credit agreement (the "“Application"”), which Borrower hereby agrees to execute, including Bank's ’s standard fee per annum on the face amount of each Letter of Creditfee. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount shall be deemed an Advance under Section 2.1(a). No Letter of Credit shall have an expiration date which is later than (i) If at any time the Revolving Maturity Date unless Borrower secures Facility is terminated or otherwise ceases to exist, Borrowers shall immediately secure in cash the all obligations under such Letter any outstanding Letters of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) . The obligation of Borrower Borrowers 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 Borrowers 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 ’s gross negligence or willful misconduct.

Letters of Credit Sublimit. Under the Revolving Facility. ------------------------------------------------------- (ia) Subject to the terms and conditions of this Agreement, Bank agrees to issue or cause to be issued letters of credit for the account of Borrower (each, each a "Letter of Credit," and collectively, the "Letters of Credit") for the account of Borrower in an aggregate outstanding face amount not to exceed the lesser of the following (i) (A) the lesser of the Committed Revolving Line or the Borrowing Base (when the Borrowing Base is applicable), minus ----- (B) the aggregate sum of the then outstanding principal balance of the Advances, the Foreign Exchange Reserve and the face amount of outstanding Letters of Credit, or (ii) Five Million -- Dollars ($5,000,000). Each such Letter of Credit shall have an expiry date no later than the outstanding Advances at any time, Revolving Maturity Date; provided that the aggregate face amount of all outstanding Letters expiry date may be up to 90 days after the Revolving Maturity Date as long as Borrower secures its reimbursement and other obligations in connection with any Letter of Credit shall not exceed Five Hundred Thousand Dollars ($500,000)outstanding after such date with cash on terms reasonably acceptable to Bank. All such 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 Bank's standard fee per annum on the face amount agreement. All amounts actually paid by Bank in respect of each a Letter of Credit. On any drawn but unreimbursed Letter of CreditCredit shall, the unreimbursed amount shall be deemed when paid, constitute an Advance under Section 2.1(a). No Letter of Credit shall have an expiration date which is later than (i) the Revolving Maturity Date unless Borrower secures in cash the obligations under such Letter of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuancethis Agreement. (iib) 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, the Application, Agreement 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. (c) Borrower may request that Bank issue a Letter of Credit payable in a currency other than United States Dollars. If a demand for payment is made under any such Letter of Credit, except Bank shall treat such demand as an advance to Borrower of the equivalent of the amount thereof (plus cable charges) in United States currency at the then prevailing rate of exchange in San Francisco, California, for expenses caused sales of that other currency for cable transfer to the country of which it is the currency. Upon the issuance of any Letter of Credit payable in a currency other than United States Dollars, Bank shall create a reserve under the Committed Revolving Line for Letters of Credit against fluctuations in currency exchange rates, in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of such reserve may be amended by Bank's gross negligence or willful misconductBank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Committed Revolving Line shall be reduced by the amount of such reserve for so long as such Letter of Credit remains outstanding.

Letters of Credit Sublimit. (i) Subject to the terms and conditions of this Agreement, at any time prior to the Revolving Maturity Date, Bank agrees to issue or cause to be issued standby or commercial 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 not to exceed the Revolving Line minus ----- the aggregate amount of the outstanding Advances (including, but not limited to, Advances outstanding under the Foreign Exchange Sublimit and the Corporate Credit Cards Sublimit) at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars ($500,000)) at any time. 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 Bank's standard fee equal to one percent (1.00% per annum on annum) of 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). No Letter of Credit shall have an expiration date which is later than (i) Prior to the Revolving Maturity Date unless Date, Borrower secures shall secure in cash the all obligations under such Letter any outstanding Letters of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. (ii) 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.