Common use of Letters of Credit and Cash Collateral Clause in Contracts

Letters of Credit and Cash Collateral. To secure Supplier’s Repayment Obligation under Section 4 above, Supplier will cause irrevocable stand-by letters of credit in the form set forth on Exhibit 6, or such other form as is reasonably approved by Customer, to be issued (the “Letters of Credit”), and/or cash collateral to be posted in a segregated escrow account (“Cash Collateral”), for the benefit of Customer in the aggregate amount equal to 60% of each Prepayment Installment on the date such Prepayment Installment is actually received by Supplier pursuant to Section 1 above (a portion of which will initially be issued and/or posted by or on behalf of Insight Equity I LP and/or an affiliate thereof (“IE Portion”) and a portion of which will initially be issued and/or posted by or on behalf of LBC Credit Partners, L.P. and/or an affiliate thereof (“LBC Portion”)). At any time and from time to time, Supplier may cause (i) Cash Collateral to be substituted for Letters of Credit in an aggregate face amount equal to the amount of such Cash Collateral being substituted and (ii) the Letters of Credit to be substituted for Cash Collateral in an aggregate amount equal to the face amount of such Letters of Credit being substituted. Customer shall promptly release all Cash Collateral that has been substituted by Letters of Credit and return all Letters of Credit for cancellation that have been substituted by Cash Collateral. Supplier may also replace the initial Letters of Credit with other Letters of Credit issued by different financial institutions or lenders with Customer’s prior written consent (which consent shall not be unreasonably withheld). In connection with the establishment of any Cash Collateral, the parties will be required to enter into a mutually agreeable (as determined in the reasonable discretion of the parties) escrow agreement in favor of Customer including standard and customary terms and conditions and such escrow agent or bank may require certain standard and customary documentation be provided by Customer and Supplier related to such escrow account.

Letters of Credit and Cash Collateral. To secure Supplier’s Repayment Obligation under Section 4 3.2.3 above, Supplier will cause irrevocable stand-by letters of credit in the form set forth on Exhibit 6, or such other form as is reasonably approved by Customer, to be issued (the “Letters of Credit”), and/or cash collateral to be posted in a segregated escrow account (“Cash Collateral”), no later than the Prepayment Date for the benefit of Customer in the aggregate amount equal to 60% of each Prepayment Installment on the date such Prepayment Installment is actually received by Supplier pursuant to Section 1 above *** (a portion of which will initially be issued and/or posted by or on behalf of Insight Equity I LP and/or an affiliate thereof (“IE Portion”) and a portion of which will initially be issued and/or posted by or on behalf of LBC Credit Partners, L.P. and/or an affiliate thereof (“LBC Portion”)). At any time and from time to time, Supplier may cause (i) Cash Collateral to be substituted for Letters of Credit in an aggregate face amount equal to the amount of such Cash Collateral being substituted and (ii) the Letters of Credit to be substituted for Cash Collateral in an aggregate amount equal to the face amount of such Letters of Credit being substituted. Customer shall promptly release all Cash Collateral that has *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. been substituted by Letters of Credit and return all Letters of Credit for cancellation that have been substituted by Cash Collateral. Supplier may also replace the initial Letters of Credit with other Letters of Credit issued by different financial institutions or lenders with Customer’s prior written consent (which consent shall not be unreasonably withheld). In connection with the establishment of any Cash Collateral, the parties will be required to enter into a mutually agreeable (as determined in the reasonable discretion of the parties) an escrow agreement in favor of Customer including standard and customary terms and conditions and such escrow agent or bank may require certain standard and customary documentation be provided by Customer and Supplier related to such escrow account.