CoreStates Bank, N.A. Irrevocable Letter of Credit No. 401280P for Gulf Insurance Company

Summary

CoreStates Bank, N.A. issues an irrevocable and unconditional letter of credit for up to $50,000 in favor of Gulf Insurance Company, with Michael A. Karp as the applicant. The letter of credit is effective immediately and expires on October 14, 1998, but will automatically renew for one-year periods unless the bank provides 30 days' notice of non-renewal. Gulf Insurance Company can draw funds by presenting a sight draft at the specified bank office. The agreement is governed by New York law and international banking rules.

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EX-10.12 21 ex10-12.txt LETTER OF CREDIT 1 Exhibit 10.12 CORESTATES BANK, N.A.
LETTER OF CREDIT OUR CREDIT NO. ISSUE DATE EXPIRY DATE AMOUNT - -------------- ----------- ----------- ----------------------- 401280P 14-OCT-1997 14-OCT-1998 USD50,000.00
BENEFICIARY APPLICANT - ----------- --------- GULF INSURANCE COMPANY MICHAEL A. KARP TRADING AS ATX C/O AAA BOND/PROS INC. TELECOMMUNICATIONS SERVICES ONE DUPONT STREET 1062 LANCASTER AVENUE, SUITE 617 PLAINVIEW, NEW YORK 11803 ROSEMONT, PA 19010 ATTN: TOBIN JACOBSON
DEAR BENEFICIARY: WE HAVE ESTABLISHED THIS CLEAN, IRREVOCABLE, AND UNCONDITIONAL LETTER OF CREDIT IN YOUR FAVOR AS BENEFICIARY FOR DRAWINGS UP TO USD50,000.00 (FIFTY THOUSAND AND 00/100 U.S. DOLLARS) EFFECTIVE IMMEDIATELY. THIS LETTER OF CREDIT IS ISSUED, PRESENTABLE AND PAYABLE AT OUR OFFICE AT P.O. BOX 13866, 530 WALNUT STREET, LETTER OF CREDIT DEPARTMENT, SEVENTH FLOOR, FIND CODE 1-9-7-1, PHILADELPHIA, PA. 19106 AND EXPIRES WITH OUR CLOSE OF BUSINESS ON OCTOBER 14, 1998. THE TERM "BENEFICIARY" INCLUDES ANY SUCCESSOR BY OPERATION OF LAW OF THE NAMED BENEFICIARY INCLUDING WITHOUT LIMITATION ANY LIQUIDATOR, REHABILITATOR, RECEIVER OR CONSERVATOR. WE HEREBY UNDERTAKE TO DULY HONOR YOUR SIGHT DRAFT(S) DRAWN ON US, INDICATING OUR CREDIT NO. 401280P, FOR ALL OR ANY PART OF THIS CREDIT UPON PRESENTATION OF YOUR DRAFT DRAWN ON US AT OUR OFFICE SPECIFIED IN PARAGRAPH ONE (1) ON OR BEFORE THE EXPIRATION DATE HEREOF OR ANY AUTOMATICALLY EXTENDED EXPIRY DATE. EXCEPT AS EXPRESSLY STATED HEREIN, THIS UNDERTAKING IS NOT SUBJECT TO ANY AGREEMENT, REQUIREMENT OR QUALIFICATION. THE OBLIGATIONS OF CORESTATES BANK N.A. UNDER THIS CREDIT IS THE INDIVIDUAL OBLIGATION OF CORESTATES BANK N.A. AND IS IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO. THIS LETTER OF CREDIT IS DEEMED TO BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR ONE (1) YEAR FROM THE EXPIRATION DATE OR ANY FUTURE EXPIRATION DATE, UNLESS THIRTY (30) DAYS PRIOR TO SUCH EXPIRATION DATE, WE NOTIFY YOU BY REGISTERED MAIL THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED FOR ANY SUCH ADDITIONAL PERIOD. 2 THIS LETTER OF CREDIT IS SUBJECT TO AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE 1993 REVISION OF THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL CHAMBER OF COMMERCE (PUBLICATION NO. 500) AND IN THE EVENT OF ANY CONFLICT THE LAWS OF NEW YORK WILL CONTROL. IF THIS CREDIT EXPIRES DURING AN INTERRUPTION OF BUSINESS AS DESCRIBED IN ARTICLE 19 OF SAID PUBLICATION 500, THE BANK HEREBY SPECIFICALLY AGREES TO EFFECT PAYMENT IF THIS CREDIT IS DRAWN AGAINST WITHIN THIRTY (30) DAYS AFTER THE RESUMPTION OF BUSINESS. ALL INQUIRIES REGARDING THIS CREDIT SHOULD BE DIRECTED TO US AT OUR PHONE NUMBERS ###-###-####; (215) 973-8157; (215) 973-1944. /s/ AUTHORIZED SIGNATURE -------------------------------------- AUTHORIZED SIGNATURE