Common use of Accommodation Obligations Clause in Contracts

Accommodation Obligations. None of the Borrowers nor any of Borrowers' Subsidiaries (other than Foreign Subsidiaries) shall directly or indirectly create or become or be liable with respect to any Accommodation Obligation, except: (i) Permitted Existing Accommodation Obligations; (ii) Accommodation Obligations arising under the Loan Documents; (iii) Accommodation Obligations of the Subsidiary Guarantors in connection with their guaranty of the New Foamex Subordinated Notes, but only to the extent set forth in the New Foamex Subordinated Note Indenture; (iv) Accommodation Obligations of either Borrower in respect of Indebtedness permitted by Section 9.01 of any Subsidiary Guarantor; and (v) Accommodation Obligations of Credit Parties in respect of Indebtedness of Foreign Subsidiaries, provided, that, the aggregate outstanding amount of such Accommodation Obligations plus the aggregate sales or other transfers of assets (valued at the Fair Market Value thereof) to such Foreign Subsidiaries permitted under Section 9.02(v) plus the amount of all Investments outstanding under Section 9.04(viii) shall not exceed $25,000,000 (computed as set forth in Section 9.04); provided that, except as contemplated in clause (v) above, in no event shall any of the Borrowers, Trace Foam or FMXI, nor any of their respective Subsidiaries (other than Foreign Subsidiaries) directly or indirectly create or become or be liable with respect to any Accommodation Obligation with respect to any liabilities of any Foreign Subsidiary.

Accommodation Obligations. None of the Borrowers nor The Borrower shall not, and shall not permit any of Borrowers' its Subsidiaries (other than Foreign Subsidiaries) shall directly or indirectly create or become or be liable with respect to any Accommodation Obligationto, except: (i) Permitted Existing Accommodation Obligations; (ii) Accommodation Obligations arising under the Loan Documents; (iii) Accommodation Obligations of the Subsidiary Guarantors in connection with their guaranty of the New Foamex Subordinated Notes, but only to the extent set forth in the New Foamex Subordinated Note Indenture; (iv) Accommodation Obligations of either Borrower in respect of Indebtedness permitted by Section 9.01 of any Subsidiary Guarantor; and (v) Accommodation Obligations of Credit Parties in respect of Indebtedness of Foreign Subsidiaries, provided, that, the aggregate outstanding amount of such Accommodation Obligations plus the aggregate sales or other transfers of assets (valued at the Fair Market Value thereof) to such Foreign Subsidiaries permitted under Section 9.02(v) plus the amount of all Investments outstanding under Section 9.04(viii) shall not exceed $25,000,000 (computed as set forth in Section 9.04); provided that, except as contemplated in clause (v) above, in no event shall any of the Borrowers, Trace Foam or FMXI, nor any of their respective Subsidiaries (other than Foreign Subsidiaries) directly or indirectly create or become or be liable with respect to any Accommodation Obligation except: (a) guaranties resulting from endorsement of negotiable instruments for collection in the ordinary course of business; (b) Permitted L/C Guarantees, fully supported by collateral pledged to the Borrower or its Subsidiaries by third parties under existing working capital facilities, issued in the ordinary course of the Borrower's or its Subsidiaries' business for the account of Persons who are not Affiliates or Subsidiaries of the Borrower; provided, that the aggregate contingent liability under such Permitted L/C Guarantees, taken together with respect Indebtedness of the Borrower incurred under lines of credit extended to the Borrower by Xxxxx Fargo Bank N.A. and LaSalle National Bank permitted by Section 7.02(f), shall not at any liabilities time exceed, in the aggregate, $25,000,000; and (c) Letters of credit, purchase guarantees or other similar credit support arrangements issued by the Borrower in the ordinary course of Borrower's or its Subsidiaries' business for the account of Persons who are not Affiliates or Subsidiaries of the Borrower and fully secured by collateral pledged to the Borrower or its Subsidiaries by third parties under existing working capital facilities; provided, that the aggregate amount of the Borrower's contingent liability thereunder does not at any Foreign Subsidiarytime exceed (i) for the period commencing on August 24, 1996 to but excluding August 24, 1997, $15,000,000 and (ii) for the period commencing on August 24, 1997 and thereafter, $20,000,000.

Accommodation Obligations. None of the Borrowers nor The Parent Guarantor shall ------------------------- not and shall not permit any of Borrowers' its Subsidiaries (other than Foreign Subsidiaries) shall to directly or indirectly create or become or be liable with respect to any Accommodation Obligation, except: (ia) recourse obligations resulting from endorse- ment of negotiable instruments for collection in the ordinary course of its business; (b) Permitted Existing Accommodation Obligations; (iic) Accommodation Obligations (i) arising under the Loan Documents;Documents or (ii) included in the Indebtedness permitted under Section 10.1(a); and --------------- (iiid) Accommodation Obligations of the Parent Guarantor with respect to (i) Contractual Obligations of a Subsidiary Guarantors Guarantor to provide goods or services or (ii) accounts payable of a Subsidiary Guarantor, in connection with their guaranty of the New Foamex Subordinated Notes, but only to the extent set forth each case arising in the New Foamex Subordinated Note Indenture; (iv) Accommodation Obligations ordinary course of either Borrower in respect of Indebtedness permitted by Section 9.01 of any Subsidiary Guarantorbusiness; and (v) Accommodation Obligations of Credit Parties in respect of Indebtedness of Foreign Subsidiaries, provided, thathowever, that the aggregate outstanding amount of such Accommodation Obligations plus the aggregate sales or other transfers of assets (valued at the Fair Market Value thereof) to such Foreign Subsidiaries permitted under Section 9.02(v) plus the amount of all Investments outstanding under Section 9.04(viii) Parent Guarantor -------- ------- shall not exceed $25,000,000 (computed as set forth in Section 9.04); provided that, except as contemplated in clause (v) above, in no event shall any of the Borrowers, Trace Foam or FMXI, nor any of their respective Subsidiaries (other than Foreign Subsidiaries) directly or indirectly create or become or be liable with respect to any Accommodation Obligation with respect to any liabilities obligation of a Restricted Subsidiary; (e) in addition to the Accommodation Obligations permitted by clauses (a) through (d) above, other unsecured Accommodation ---------- --- Obligations in an aggregate amount not to exceed $150,000 at any Foreign Subsidiarytime outstanding.

Accommodation Obligations. None of the Borrowers Borrower nor any of Borrowers' its Subsidiaries (other than Foreign Subsidiaries) shall directly or indirectly create or become or be liable with respect to any Accommodation Obligation, except: (i) Permitted Existing Accommodation Obligations; (ii) Accommodation Obligations arising under the Loan Documents; (iii) Accommodation Obligations of the Subsidiary Guarantors in connection with their guaranty of (A) the New Foamex Subordinated Notes, but only to the extent set forth in the New Foamex Subordinated Note Indenture and (B) the New Foamex Notes, but only to the extent set forth in the New Foamex Indenture; (iv) Accommodation Obligations of either the Borrower in respect of Indebtedness permitted by Section 9.01 of any Subsidiary Guarantor; and; (v) Accommodation Obligations of Credit Parties in respect of Indebtedness liabilities of Foreign SubsidiariesSubsidiaries incurred after the Effective Date, provided, that, the aggregate outstanding amount of such Accommodation Obligations plus the aggregate sales or other transfers of assets (valued at the Fair Market Value thereof) to such Foreign Subsidiaries permitted under Section 9.02(v9.02(iii) plus the amount of all Investments outstanding under Section 9.04(viii9.04(iv) shall not exceed $25,000,000 5,000,000 (computed as set forth in Section 9.04); and (vi) the Foamex/GFI Note; provided that, except as contemplated in clause (v) above, in no event shall any of the Borrowers, Trace Foam Borrower or FMXI, nor any of their respective Subsidiaries (other than Foreign Subsidiaries) directly or indirectly create or become or be liable with respect to any Accommodation Obligation with respect to any liabilities of any Foreign Subsidiary.

Accommodation Obligations. None of the Borrowers nor The Borrower shall not, and shall not permit any of Borrowers' its Subsidiaries (other than Foreign Subsidiaries) shall to, directly or indirectly create or become or be liable with respect to any Accommodation Obligation, except: (ia) recourse obligations resulting from endorse ment of negotiable instruments for collection in the ordinary course of its business; (b) Permitted Existing Accommodation ObligationsObligations and any extensions, renewals or replacements thereof, PROVIDED THAT the aggregate Indebtedness under any such extension, renewal or replacement is not greater than the Indebtedness under, and shall be on terms no less favorable to the Borrower than the terms of, the Permitted Existing Accommodation Obligation so extended, renewed or replaced; (iic) Accommodation Obligations (i) arising under the Loan DocumentsDocuments or (ii) included in the Indebtedness permitted under SECTION 10.01(a); (iiid) Accommodation Obligations of the Subsidiary Guarantors in connection Borrower with their guaranty respect to Indebtedness of Leasing Affiliate; PROVIDED THAT the New Foamex Subordinated Notes, but only to the extent conditions set forth in SECTION 6.04 are satisfied or waived in accordance with the New Foamex Subordinated Note Indentureprovisions of SECTION 15.07; (ive) in addition to the Accommodation Obligations of either Borrower in respect of Indebtedness permitted by Section 9.01 of any Subsidiary Guarantor; and CLAUSES (va) Accommodation Obligations of Credit Parties in respect of Indebtedness of Foreign Subsidiaries, provided, that, the aggregate outstanding amount of such Accommodation Obligations plus the aggregate sales or other transfers of assets through (valued at the Fair Market Value thereof) to such Foreign Subsidiaries permitted under Section 9.02(v) plus the amount of all Investments outstanding under Section 9.04(viii) shall not exceed $25,000,000 (computed as set forth in Section 9.04); provided that, except as contemplated in clause (vd) above, other unsecured Accommodation Obligations in no event shall an aggregate amount not to exceed $1,000,000 at any time outstanding. Neither the Borrower nor any Subsidiary of the Borrowers, Trace Foam or FMXI, nor any of their respective Subsidiaries (other than Foreign Subsidiaries) directly or indirectly create or become or be liable with respect to Borrower shall incur any Accommodation Obligation with respect to Indebtedness of Leasing Affiliate or any liabilities Subsidiary of any Foreign SubsidiaryLeasing Affiliate except to the extent specifically permitted under CLAUSE (d) above.