Nautilus 2009 Annual Report Download - page 297

Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly, Borrower may obtain Letters of Credit to replace Letters
of Credit that have expired, or that have been drawn upon and reimbursed.
Section 3.4 Letter of Credit Fees . Borrower shall pay Lender a fee (the “Letter of Credit Fee”) (a) with respect to each Cash Secured
Letter of Credit equal to 2 percent per annum multiplied by the maximum amount available to be drawn under such Cash Secured Letter of
Credit (which fee shall be prorated to take into account the fact that this fee is paid quarterly by Borrower) and (b) with respect to each Non-
Cash Secured Letter of Credit equal to the Applicable Margin for LIBOR Rate Loans multiplied by the maximum amount available to be drawn
under such Non-Cash Secured Letter of Credit (which fee shall be prorated to take into account the fact that this fee is paid quarterly by
Borrower). For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be
the maximum amount determined in accordance with Section 3.3. The Letter of Credit Fees shall be computed on a quarterly basis in arrears.
The Letter of Credit Fees shall be due and payable by Borrower on the first Business Day of each calendar quarter, on the expiration date of the
Letter of Credit in question, and, thereafter, on demand by Lender. Notwithstanding anything to the contrary contained in this Agreement, while
any Event of Default exists, all Letter of Credit Fees shall accrue at an additional 3 percent. Borrower shall also pay to Lender the customary
presentation fees, amendment fees, and other processing fees, and other standard costs and charges, of Lender relating to Letters of Credit as
from time to time in effect. Such customary fees and standard costs and charges are due and payable by Borrower to Lender promptly on demand
and are not refundable.
Section 3.5 Reimbursement Obligation of Borrower . Borrower hereby agrees to reimburse or pay to Lender with respect to each
Letter of Credit on each date that any draft presented under any Letter of Credit is honored by Lender (or Lender otherwise makes payment with
respect thereto), the following amounts:
(a) the amount paid by Lender under or with respect to such Letter of Credit, and
(b) the amount of any Taxes, fees, charges, or other costs and expenses incurred by Lender in connection with any payment
made by Lender under, or with respect to, such Letter of Credit.
Borrower may use the proceeds of Revolving Loans to make a payment owed pursuant to this Section 3.5, provided Borrower is entitled to such
a loan hereunder at the time in question. Interest on any and all amounts remaining unpaid by Borrower under this Section 3.5 at any time from
the date such amounts become due and payable, until payment in full, shall be payable by Borrower to Lender on demand at the Default Rate for
Base Rate Loans.
Section 3.6 Cash Collateral for Letters of Credit and Credit Exposure Reserve .
(a) Prior to the Borrower making the Non-Cash Secured Election, Borrower shall provide cash collateral to Lender prior to,
and as a condition precedent to, the issuance of any Letter of Credit in an amount equal to 105 percent of the maximum amount of
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