Common use of CUSTOMER CREDIT APPROVAL Clause in Contracts

CUSTOMER CREDIT APPROVAL. Client shall submit to Factor the information requested by Factor to analyze the credit worthiness of each of Client's Customers. Factor may, in Factor's discretion, approve in writing all or a portion of Client's Customers' purchases, either by establishing a credit line limited to a specific amount for a specific Customer, or by approving all or a portion of a Customer's purchases. If Factor does not respond to a request from Client for a credit approval or credit line with respect to a Customer, using reasonable commercial efforts, within thirty (30) business days after the request, in the case of a Foreign Customer, or within seven (7) business days after the request, in the case of Customer that is not a Foreign Customer, the request shall be deemed denied. No credit approval in respect of a Customer shall be effective (a) unless in writing and (b) unless the initial utilization of the purchased telecommunications network capacity occurs within the time specified in Factor's written credit approval or within seventy-five (75) days after the approval is given, if no time is specified. No credit line in respect of a Customer shall be effective unless in writing and unless utilization of the purchased telecommunications network capacity occurs while the credit line is in effect. After the Customer has utilized the purchased telecommunications network capacity, Factor shall then have the Credit Risk (but not the risk of nonpayment for any other reason), to the extent of the dollar amount specified in the credit approval, on all Purchased Accounts evidenced by invoices which arise from purchases approved by Factor in writing except for those Purchased Accounts evidenced by invoices less than One Hundred Fifty Dollars ($150.00). Factor shall have neither the Credit Risk nor the risk of non-payment for any other reason on Purchased Accounts arising from purchases not approved by Factor in writing. Factor may cancel Factor's credit approval or withdraw or adjust a credit line at any time before utilization of the purchased telecommunications network capacity based upon Factor's reasonable insecurity concerning its ability to enforce and collect Accounts Receivable owing from such Customer. Notwithstanding the above, (i) a credit line may be reduced to the extent of any Customer Credit Balances due to the Customer that are held by Client; (ii) a credit line shall not be reduced below an amount equal to the sum of (a) the undrawn amount of unexpired letters of credit issued for the account of the Customer that are acceptable to Factor as to form and issuer and that have been issued to Factor as beneficiary or that have been issued to Client but are the subject of assignments of proceeds in favor of Factor (with issuer consents) that are acceptable to Factor as to form; and (b) cash deposited with Factor to secure the Customer's obligations pursuant to Cash Collateral Agreements acceptable to Factor as to form and authorization; and (iii) a credit line or credit approval with respect to a Customer shall be deemed automatically cancelled upon the occurrence of an Insolvency Event with respect to such Customer. Accordingly (i) if Factor cancels or is deemed to have cancelled a credit line or credit approval in respect of a Customer, then Factor shall not have the Credit Risk on Purchased Accounts arising from telecommunications network capacity utilized by such Customer after the date of such cancellation by Factor; and (ii) if Factor reduces a credit line in respect of a Customer, then Purchased Accounts on which such Customer is the account debtor arising from telecommunications network capacity utilized after such reduction shall be subject to the credit Sine, as reduced.

CUSTOMER CREDIT APPROVAL. Client shall submit to Factor the information requested by Factor to analyze the credit worthiness creditworthiness of each of Client's ’s Customers. Factor may, in Factor's ’s discretion, approve in writing all or a portion of Client's ’s Customers' ’ purchases, either by establishing a credit line limited to a specific amount for a specific Customer, or by approving all or a portion of a Customer's ’s purchases. If Factor does not fails to respond to a request from Client for a credit approval or credit line with respect to a Customer, using reasonable commercial efforts, Customer within thirty (30) business days after the its receipt of such request, in the case of a Foreign Customer, or within seven (7) business days after the its receipt of such request, in the case of Customer that is not a Foreign Customer, the request shall be deemed denied. No credit approval in respect of a Customer shall be effective (a) unless in writing and (b) unless the initial utilization of the purchased telecommunications network capacity occurs within the time specified in Factor's ’s written credit approval or or, if no time is so specified, within seventy-five one hundred and twenty (75120) days after the approval is given, if no time is specified. No credit line in respect of a Customer shall be effective unless in writing and unless utilization of the purchased telecommunications network capacity occurs while the credit line is in effect. After the Customer has utilized the purchased telecommunications network capacity, Factor shall then have the Credit Risk (but not the risk of nonpayment non-payment for any other reasonreason except as otherwise provided in the Export Receivable Rider), to the extent of the dollar amount specified in the credit approval, on all Purchased Accounts evidenced by invoices which arise from purchases approved by Factor in writing except for those Purchased Accounts evidenced by invoices less than One Hundred Fifty Dollars ($150.00). Factor shall have neither the Credit Risk nor the risk of non-payment for any other reason on Purchased Accounts arising from purchases not approved by Factor in writing. Factor may cancel Factor's ’s credit approval or withdraw or adjust a credit line at any time before utilization of the purchased telecommunications network capacity based upon Factor's ’s reasonable insecurity concerning its ability to enforce and collect Accounts Receivable owing from such Customer. Notwithstanding the above, (i) a credit line may be reduced to the extent of any Customer Credit Balances (as hereinafter in Section 3(d) defined) due to the Customer that are held by Client; (ii) a credit line shall not be reduced below an amount equal to the sum of (a) the undrawn amount of unexpired letters of credit issued for the account of the Customer that are acceptable to Factor as to form and issuer and that have been issued to Factor as beneficiary or that have been issued to Client but are the subject of assignments of proceeds in favor of Factor (with issuer consents) that are acceptable to Factor as to form; and (b) cash deposited with Factor to secure the Customer's ’s obligations pursuant to Cash Collateral Agreements acceptable to Factor as to form and authorization; and (iii) a credit line or credit approval with respect to a Customer shall be deemed automatically *** Portion for which confidential treatment requested. cancelled upon the occurrence of an Insolvency Event with respect to such Customer. Accordingly Accordingly, (i) if Factor cancels or is deemed to have cancelled a credit line or credit approval in respect of a Customer, then Factor shall not have the Credit Risk on Purchased Accounts arising from telecommunications network capacity utilized by such Customer after the date of such cancellation by Factor; and (ii) if Factor reduces a credit line in respect of a Customer, then Purchased Accounts on which such Customer is the account debtor arising from telecommunications network capacity utilized after such reduction shall be subject to the credit Sineline, as reduced.

CUSTOMER CREDIT APPROVAL. (a) Client shall submit to Factor the information requested by Factor to analyze the credit worthiness principal terms of each of Client's CustomersCustomer order for Factor’s written credit approval. Factor may, in Factor's ’s discretion, approve in writing all or a portion of Client's Customers' purchasesa Customer order, either by establishing a credit line limited to a specific amount for a specific Customer, or by approving all or a portion of a Customer's purchases. If Factor does not respond to a request from Client for a credit approval or credit line with respect to a Customer, using reasonable commercial efforts, within thirty (30) business days after the request, in the case of a Foreign Customer, or within seven (7) business days after the request, in the case of Customer that is not a Foreign Customer, the request shall be deemed deniedspecific order. No credit approval in respect of a Customer shall be effective unless: (ai) unless in writing and (b) unless the initial utilization of goods are shipped or the purchased telecommunications network capacity occurs services rendered within the time specified in Factor's ’s written credit approval or or, if no time is specified, within seventyforty-five (7545) days after the approval is given, if no time (ii) the corresponding invoice is specifiedassigned to and received by Factor within ten (10) business days from ship date, and (iii) the sales terms are approved by Factor on the ship date. No credit line in respect of a After Customer shall be effective unless in writing and unless utilization has accepted the goods or performance of the purchased telecommunications network capacity occurs while the credit line is in effect. After the Customer has utilized the purchased telecommunications network capacityservices, Factor shall then have the Credit Risk on the Account (but not the risk of nonpayment non-payment for any other reason), to the extent of the dollar amount specified in the credit approvalapproval for the specific order or, where Factor has established a credit line for the Customer, to the extent of availability on all Purchased the credit line from time to time. Notwithstanding anything herein to the contrary, Factor shall not have Credit Risk on (i) Accounts evidenced by invoices which arise from purchases approved by Factor in writing except for those Purchased Accounts evidenced by the purchase and sale of samples and invoices of less than One Two Hundred Fifty Dollars ($150.00250.00). Factor shall have neither the Credit Risk nor the risk of non-payment for , and (ii) Accounts created with a Customer while that Customer is sixty (60) days or more past due on any other reason on Purchased Accounts arising invoice from purchases not approved by Factor in writingClient. Factor may cancel withdraw Factor's ’s credit approval or withdraw or adjust a credit line at any time before utilization of Client ships the purchased telecommunications network capacity based upon goods or renders the services. Only credit approvals and Factor's reasonable insecurity concerning its ability to enforce and collect Accounts Receivable owing from such Customer. Notwithstanding the above, (i) a credit line may be reduced to the extent of any Customer Credit Balances due to the Customer that are held by Client; (ii) a credit line shall not be reduced below an amount equal to the sum of (a) the undrawn amount of unexpired letters of credit issued for the account of the Customer that are acceptable to Factor as to form and issuer and that have been issued to Factor as beneficiary or that have been issued ’s withdrawal thereof communicated to Client but are the subject of assignments of proceeds in favor of Factor (with issuer consents) that are acceptable to Factor as to form; and (b) cash deposited with Factor to secure the Customer's obligations pursuant to Cash Collateral Agreements acceptable to Factor as to form and authorization; and (iii) a credit line writing, transmitted electronically or credit approval with respect to a Customer entered on Client’s internet accessible account information shall be deemed automatically cancelled upon the occurrence of an Insolvency Event with respect to such Customer. Accordingly (i) if Factor cancels or is deemed to have cancelled a credit line or credit approval in respect of a Customer, then Factor shall not have the Credit Risk on Purchased Accounts arising from telecommunications network capacity utilized by such Customer after the date of such cancellation by Factor; and (ii) if Factor reduces a credit line in respect of a Customer, then Purchased Accounts on which such Customer is the account debtor arising from telecommunications network capacity utilized after such reduction shall be subject to the credit Sine, as reducedeffective.