Common use of Procedure for Obtaining Letters of Credit Clause in Contracts

Procedure for Obtaining Letters of Credit. The amount and date of issuance, renewal, extension or reissuance of a Letter of Credit pursuant to the Section 2.2.2. shall be designated by the Borrower's written request delivered to the Agent at least three (3) Business Days prior to the date of such issuance, renewal, extension or reissuance. Concurrently with or promptly following the delivery of the request for a Letter of Credit, the Borrower shall execute and deliver to the Agent an application and agreement with respect to the Letter of Credit, said application and agreement to be in the form customarily used by the Agent. The terms of this Agreement shall control in case of any conflict between the terms of this Agreement and the Agent's form of application and agreement with respect to Letters of Credit. The Agent shall not be obligated to issue, renew, extend or reissue such Letters of Credit if (i) the Agent does not approve the requested form of the Letter of Credit or any of the terms thereof, such approval not to be unreasonably withheld, (ii) the amount thereon when added to the amount of the outstanding Letters of Credit exceeds $2,500,000.00, or (iii) the amount thereof when added to the total outstanding Revolving Loans under the Line of Credit would exceed the Line of Credit Loan Commitment. Borrower agrees to pay the Agent a fee for the issuance of each Letter of Credit, which fee shall be due and payable by the Borrower to the Agent upon issuance of each Letter of Credit by the Agent and on each anniversary date of such issuance while such Letter of Credit is outstanding. The said fee shall be a per annum fee in the amount equal to the lesser of either (a) 1.5% per annum or (b) the applicable Eurodollar Margin, times the face amount of the Letter of Credit for such period (calculated separately for each Letter of Credit).

Procedure for Obtaining Letters of Credit. The amount and date of issuance, renewal, extension or reissuance of a Letter of Credit pursuant to the Section 2.2.2. Commitments shall be designated by the Borrower's written request delivered to the Administrative Agent at least three (3) Business Days prior to the date of such issuance, renewal, extension or reissuance. Concurrently with or promptly following the delivery of the request for a Letter of Credit, the Borrower shall execute and deliver to the Administrative Agent an application and agreement with respect to the Letter Letters of Credit, said application and agreement to be in the form customarily used by the Administrative Agent. The terms of this Agreement shall control in case of any conflict between the terms of this Agreement and the Agent's form of application and agreement with respect to Letters of Credit. The Administrative Agent shall not be obligated to issue, renew, extend or reissue such Letters of Credit if (i) the Agent does not approve the requested form of the Letter of Credit or any of the terms thereof, such approval not to be unreasonably withheld, (iiA) the amount thereon when added to the face amount of the outstanding Letters of Credit plus any Reimbursement Obligations exceeds Twenty Million Dollars ($2,500,000.00, 20,000,000.00) or (iiiB) the amount thereof when added to the total outstanding Revolving Loans under the Line of Credit Total Outstandings would exceed the Line of Credit Loan Commitment. Borrower agrees to pay the Administrative Agent a for the benefit of the Lenders commissions for issuing the Letters of Credit (calculated separately for each Letter of Credit) in an amount equal to the Eurodollar Margin multiplied by the maximum face amount of the Letter of Credit. Borrower further agrees to pay Administrative Agent for its own account an additional fronting fee for equal to one-quarter of one percent (.25%) per annum multiplied times the maximum face amount of each Letter of Credit. Such commissions shall be payable prior to the issuance of each Letter of Credit, which fee shall be due Credit and payable by the Borrower to the Agent upon issuance of each Letter of Credit by the Agent and thereafter on each anniversary date of such issuance while such Letter of Credit is outstanding. The said Such commissions and fronting fee shall will be calculated based on the basis of a per annum fee in the amount equal to the lesser year consisting of either (a) 1.5% per annum or (b) the applicable Eurodollar Margin, times the face amount of the Letter of Credit for such period (calculated separately for each Letter of Credit)360 days.

Procedure for Obtaining Letters of Credit. The amount and date of issuance, renewal, extension or reissuance of a Letter of Credit pursuant to the Section 2.2.2. shall be designated by the Borrower's ’s written request delivered to the Agent at least three (3) Business Days prior to the date of such issuance, renewal, extension or reissuance. Concurrently with or promptly following the delivery of the request for a Letter of Credit, the Borrower shall execute and deliver to the Agent an application and agreement with respect to the Letter of Credit, said application and agreement to be in the form customarily used by the Agent. The terms of this Agreement shall control in case of any conflict between the terms of this Agreement and the Agent's ’s form of application and agreement with respect to Letters of Credit. The Agent shall not be obligated to issue, renew, extend or reissue such Letters of Credit if (i) the Agent does not approve the requested form of the Letter of Credit or any of the terms thereof, such approval not to be unreasonably withheld, (ii) the amount thereon when added to the amount of the outstanding Letters of Credit exceeds $2,500,000.005,000,000.00, or (iii) the amount thereof when added to the total outstanding Revolving Loans under the Line of Credit would exceed the Line of Credit Loan Commitment. Borrower agrees to pay the Agent Agent, for the benefit of Lenders, a fee for the issuance of each Letter of Credit, which . This fee shall be due and payable by the Borrower to the Agent upfront, upon the issuance of each Letter of Credit by the Agent and on each anniversary date of such issuance while such Letter of Credit is outstanding. The said fee shall be a per annum fee in the amount equal to the lesser of either (a) 1.5% per annum or (b) the applicable Eurodollar Margin, times the face amount of the Letter of Credit for such period (calculated separately for each Letter of Credit). In addition, the Borrower agrees to pay the Agent, for the sole benefit of Agent, its standard up-front fee for issuance of a letter of credit and the other customary administrative charges, which fee and charges shall be due and payable upfront upon the issuance of each Letter of Credit by the Agent and a renewal fee on each anniversary date of such issuance while such Letter of Credit is outstanding.

Procedure for Obtaining Letters of Credit. The amount and date of issuance, renewal, extension or reissuance of a Letter of Credit pursuant to the Lenders' commitments above in Section 2.2.2. 2(c) shall be designated by the Borrower's Borrowers' written request delivered to the Agent at least three (3) Business Days prior to the date of such issuance, renewal, extension or reissuance. Concurrently with or promptly following the delivery of the request for a Letter of Credit, the Borrower Borrowers shall execute and deliver to the Agent an application and agreement with respect to the Letter Letters of Credit, said application and agreement to be in the form customarily used by the Agent. The terms of this Agreement shall control in case of any conflict between the terms of this Agreement and the Agent's form of application and agreement with respect to Letters of Credit. The Agent shall not be obligated to issue, renew, extend or reissue such Letters of Credit if (i) the Agent does not approve the requested form of the Letter of Credit or any of the terms thereof, such approval not to be unreasonably withheld, (iiA) the amount thereon when added to the face amount of the outstanding Letters of Credit plus any Reimbursement Obligations exceeds Ten Million Dollars ($2,500,000.00, 10,000,000) or (iiiB) the amount thereof when added to the total outstanding Revolving Loans under the Line of Credit Total Outstandings would exceed the Line of Credit Loan Revolving Commitment. Borrower agrees Borrowers agree to pay the Agent a fee for the issuance benefit of each Letter of Credit, which fee shall be due and payable by the Borrower to Lenders commissions for issuing the Agent upon issuance of each Letter Letters of Credit by the Agent and on each anniversary date of such issuance while such Letter of Credit is outstanding. The said fee shall be a per annum fee in the amount equal to the lesser of either (a) 1.5% per annum or (b) the applicable Eurodollar Margin, times the face amount of the Letter of Credit for such period (calculated separately for each Letter of Credit)) at a rate per annum equal to the Applicable Margin then in effect for Eurodollar Loans applied to the face amount of the Letter of Credit; provided, however, at any time while an Event of Default has occurred and is continuing, the commission on the outstanding Letters of Credit shall be two percent (2%) per annum in excess of the commission otherwise payable under this Agreement on each such Letter of Credit. Borrowers further agree to pay Agent an additional fronting fee equal to one-eighth of one percent (0.125%) per annum on the maximum face amount of each Letter of Credit plus documentary and processing charges in accordance with Agent's standard schedule of charges with respect to the issuance, amendment, cancellation, negotiation or transfer of each Letter of Credit and drawing made thereunder. Such commissions shall be payable prior to the issuance of each Letter of Credit and in arrears on the last Business Day of each calendar quarter while such Letter of Credit is outstanding with the final fee payment due on the Revolving Maturity Date for any period then ending for which such commissions shall not have been therefore paid.