HOWARD MARK CO. - Laserfiche WebLink

Irrvocable Letter `Credit No. 15-003581-6 ~ Page 2 any kind in connection with the Company's obligations under the Agreement, including, without limitation, amounts due under the Unemployment Insurance Act of the State of California with respect to such work or labor. S. Documents. Drafts, when presented for negotiation must 6e accompanied by the following documents: (a) A statement from the city engineer of The Clty of Pleasanton, California, itemizing all elements of default existing under the Agreement. (b) A certificate of authority and of encumbency under seal which certifies that the individual executing the draft on behalf of The City of Pleasanton, California, is in fact authorized to execute the draft and in fact is duly elected or appointed to the office in which capacity he or she executes the draft. (c) A copy of the Agreement. 6. Conditions Precedent. (a) In the event that any draft is drawn under this letter of credit, said money shall be used by the The City of Pleasanton, California, in such amounts as are necessary to cure the company's defaults under the Agreement. Any monies drawn under the letter of credit which are not actually used to cure such defaults shall be returned to Mainland Savings Association forthwith. The City of Pleasanton, California, covenants and warrants to proceed with diligence in the orderly completion of defaults existing under the Agreement. (b) No draft may be drawn under this letter of credit for the terms or liabilities of the Company contemplated in Sections 3, 4, 11, and 12, of the Agreement. (c) Any draft drawn hereunder shall, at Mainland Savings Association's option, be deemed an advance under that certain Promissory Note dated September 1, 1983, in the original principal amount of $12,608,000.00, executed by the Company, payable to the order of Mainland Savings Association.