Standby Letter of Credit No. 134 between Firstrust Bank, ATX Telecommunications, and Utica Mutual Insurance Company
Summary
Firstrust Bank issued an irrevocable standby letter of credit for $315,000 at the request of ATX Telecommunications (later Michael Karp T/A ATX Telecommunications) in favor of Union Mutual Insurance Company, later amended to Utica Mutual Insurance Company. The letter of credit guarantees payment to the beneficiary upon presentation of a sight draft before the expiration date, which was extended to October 27, 2000. The letter automatically renews annually unless the bank provides notice of non-renewal. It is governed by international banking rules and is not subject to conditions beyond those stated.
EX-10.14 23 ex10-14.txt LETTER OF CREDIT 1 Exhibit 10.14 FIRSTRUST BANK SERVING ITS CUSTOMERS SINCE 1934 STANDBY LETTER OF CREDIT
We have established this irrevocable letter of credit in your favor for drawings up to U.S. Three Hundred Fifteen Thousand ---------xx/100 Dollars ($315,000.00), effective October 30, 1998 and expiring at our office located at 15 East Ridge Pike, Whitemarsh Plaza, Conshohocken, PA 19428 with our close of business on October 29, 1999. We hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Credit No. 134, for all or any part of this Credit if presented at 15 East Ridge Pike, Whitemarsh Plaza, Conshohocken, PA 19428 on or before the expiry date or an automatically extended date. Except as stated herein, this undertaking is not subject to any condition or qualification. The obligation of the Bank under this Letter of Credit shall be the individual obligation of the Bank, in no way contingent upon reimbursement with respect thereto. It is a condition of this Letter of Credit that it shall be deemed automatically extended without amendment for one year from the expiry date hereof, or any future expiration date, unless sixty days prior to any expiration date we shall notify you by Registered Mail that we elect not to consider this Letter of Credit renewed for any such additional period. It is a further condition of this Letter of Credit that any interruptions of the Bank's conduct of business caused by an Act of God, riot, civil commotion, insurrection, war or other cause beyond the Bank's control, or by the strike or Lockout, will automatically extend the expiry date hereof, as well as future expiry date by the period of the interruption. Should you have occasion to communicate with us regarding this Credit, kindly direct your communication to the attention of our Credit No. 134. 2 Standby Letter of Credit Page Two This Letter of Credit is subject to and governed by the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication No. 500). Very truly yours,
3 FIRSTRUST BANK AMENDMENT TO IRREVOCABLE LETTER OF CREDIT NO. 134
The Letter of Credit's first paragraph beginning as "At the request" is amended as follows: At the request and for the account of Michael Karp T/A ATX Telecommunications located at 50 Monument Road, Bala Cynwyd, Pennsylvania 19004 (hereinafter called "Applicant"), we hereby establish our Irrevocable Letter of Credit No. 134 in your favor and authorize you to draw on us up to the aggregate amount of Three Hundred and Fifteen Thousand Dollars ($315,000.00) available by your draft(s) at sight drawn on us and expires on our close of business on October 27th, 2000, accompanied by the following: All other terms and conditions of our original Letter of Credit, attached hereto, remain in effect. Very truly yours,
