Common use of Letters of Credit and Letter of Credit Guarantees Clause in Contracts

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and (ii) Five Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September. Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty (20) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section SECTION 2.1, and (ii) Two Million Five Million Hundred Thousand Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September2,500,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 SECTION 3.4 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section SECTION 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the lesser of: (y) the Maximum Amount, or (z) the Maximum Foothill Amount plus the Syndicated Amount. The L/Cs and the L/C Guarantees issued under this Section SECTION 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section SECTION 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5SECTION 2.4.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and (ii) Five Four Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September4,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit L/Cs that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit L/Cs that are to be the subject of L/C Guarantees may be outstanding on the Original Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty (20) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 3.4 hereof (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Revolving Credit Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.52.5(a)(i) or Section 2.5(b)(i), as applicable.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and (ii) Five Twenty Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September20,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each such L/C and each letter of credit (including those that is are the subject of an L/C Guaranty Guarantees) shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential unexercised, renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) Guarantees shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, to purchase Inventory or for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or the other similar obligationsbusiness purposes. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and (ii) Five Three Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September3,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each such L/C and each letter of credit (including those that is are the subject of an L/C Guaranty Guarantees) shall have an expiry date no later than twenty fifteen (2015) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) Guarantees shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "“L/C"”) or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "“L/C Guaranty"”) with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and (ii) Five Four Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September4,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Restatement Effective Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty thirty (2030) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Revolving Credit Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' ’ compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser least of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and ; (ii) Five the Maximum Revolving Amount less the ----------- amount of advances outstanding pursuant to Section 2.1; and (iii) Two Million ----------- Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September2,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 ----------- (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Amount. The L/Cs and the L/C ----------- Guarantees issued under this Section 2.2 shall be used by Borrower, consistent ----------- with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear ----------- interest at the rates then applicable under Section 2.5.. -----------

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base plus the then applicable Permitted Overadvance Amount less the amount of outstanding revolving advances outstanding pursuant to Section 2.1, and (ii) Five Million Seven Hundred Fifty Thousand Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September750,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit Cs that are to be the subject of L/C Guarantees and that certain of such L/Cs may be outstanding on the Closing Date. Each such L/C and each letter of credit (including those that is are the subject of an L/C Guaranty Guarantees) shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) hereof and all such L/Cs and letters of credit (and the applicable L/C Guarantees) Guarantees shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of revolving advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.deemed

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section 2.1, and or (ii) Five Three Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September3,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the Maximum Foothill AmountTwenty Million Dollars ($20,000,000). The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.5.

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of --- payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect ------------ to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the amount of advances outstanding pursuant to Section ------- 2.1, and (ii) Five Four Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September4,000,000). Borrower expressly understands --- and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty thirty (2030) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and ----------- letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 ----------- would exceed the Maximum Foothill Revolving Credit Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent ----------- with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear ----------- interest at the rates then applicable under Section 2.5.. -----------

Letters of Credit and Letter of Credit Guarantees. (a) Subject to the terms and conditions of this Agreement, Foothill agrees to issue commercial or standby letters of credit for the account of Borrower (each, an "L/C") or to issue standby letters of credit or guarantees of payment (each such letter of credit or guaranty, an "L/C Guaranty") with respect to commercial or standby letters of credit issued by another Person for the account of Borrower in an aggregate face amount not to exceed the lesser of: (i) the Borrowing Base less the sum of (A) the amount of advances outstanding pursuant to Section 2.1, and (B) the undrawn and unreimbursed amount of L/C's and L/C Guarantees for L/Cs and L/C Guarantees which are not Inventory Letters of Credit and (C) the Inventory L/C Reserve Amount regarding Inventory Letters of Credit and (ii) Five Four Million Dollars ($5,000,000) or Seven Million Dollars ($7,000,000) during the months of July, August and September4,000,000). Borrower expressly understands and agrees that Foothill shall have no obligation to arrange for the issuance by other financial institutions of letters of credit that are to be the subject of L/C Guarantees. Borrower and Foothill acknowledge and agree that certain of the letters of credit that are to be the subject of L/C Guarantees may be outstanding on the Closing Date. Each L/C and each letter of credit that is the subject of an L/C Guaranty shall have an expiry date no later than twenty sixty (2060) days prior to the date on which this Agreement is scheduled to terminate under Section 3.3 (without regard to any potential renewal term) and all such L/Cs and letters of credit (and the applicable L/C Guarantees) shall be in form and substance acceptable to Foothill in its sole discretion. Foothill shall not have any obligation to issue L/Cs or L/C Guarantees and Inventory Letters of Credit to the extent that the face amount of all outstanding L/Cs and L/C Guarantees, plus the amount of advances outstanding pursuant to Section 2.1, would, including funds advanced by any Participant, exceed the Maximum Amount provided, however that it is expressly understood that Foothill shall not have any obligation to individually issue L/Cs or L/C Guarantees to the extent that the full amount of all outstanding L/Cs or L/C Guarantees issued by Foothill plus the amount of advances outstanding from Foothill pursuant to Section 2.1 would exceed the lesser of: (y) the Maximum Amount, or (z) the Maximum Foothill Amount plus the Syndicated Amount. The L/Cs and the L/C Guarantees issued under this Section 2.2 shall be used by Borrower, consistent with this Agreement, for its general working capital purposes or to support its obligations with respect to workers' compensation premiums or other similar obligations. If Foothill is obligated to advance funds under an L/C or L/C Guaranty, the amount so advanced immediately shall be deemed to be an advance a Revolving Advance made by Foothill to Borrower pursuant to Section 2.1 and, thereafter, shall bear interest at the rates then applicable under Section 2.52.4.