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LETTER OF CREDIT

Letter of Credit

LETTER OF CREDIT | Document Parties: Sonesta International Hotels Corporation You are currently viewing:
This Letter of Credit involves

Sonesta International Hotels Corporation

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Title: LETTER OF CREDIT
Date: 3/31/2005
Industry: Hotels and Motels    

LETTER OF CREDIT, Parties: sonesta international hotels corporation
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                                                                 Exhibit 10.5(a)

 

 

December 31, 2004

 

 

Mr. Peter J. Sonnabend, Vice Chairman

Sonesta International Hotels Corporation

116 Huntington Avenue

Boston, MA 02116

 

Dear Peter:

 

We are pleased to advise you that Citizens Bank of Massachusetts has approved

for your use an unsecured demand line of credit at our Prime Rate in the

original available amount of $2,000,000. This line of credit will be guaranteed

by certain of the Company's principal domestic subsidiaries (as described in

Exhibit A).

 

Advances under the line would be made against a revolving note, with interest

payable monthly in arrears and principal payable on demand. ADVANCES WILL BE

MADE ONLY IN THE BANK'S SOLE DISCRETION. To enable the Bank to monitor the

Company's financial condition, you agree to submit to the Bank the following:

 

     (a)   fiscal year-end consolidated and consolidating financial statements

for Sonesta International Hotels Corporation audited by a CPA firm satisfactory

to the Bank with 120 days after each fiscal year-end,

 

     (b)   quarterly 10Q reports within 45 days after each quarter-end, and

 

     (c)   such other information as the Bank may request from time to time.

 

All expenses incurred in connection with this transaction, including but not

limited to legal and a


 
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