Common use of Letters of Credit; LC Guaranties Clause in Contracts

Letters of Credit; LC Guaranties. Lender agrees, for so long as no Default or Event of Default exists and subject to the satisfaction of the applicable conditions precedent set forth in Sections 9 and 9A, and if requested by Borrower, to (a) issue its, or cause to be issued its Affiliate's, documentary Letters of Credit for the account of Borrower or (b) execute LC Guaranties by which Lender shall guaranty the payment or performance by Borrower of its reimbursement obligations with respect to documentary letters of credit issued for Borrower's account by other Persons, provided that the LC Amount at any time shall not exceed the lesser of (a) Three Million Dollars ($3,000,000), and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No Letter of Credit or LC Guarantee may have an expiration date that is after the last day of the Original Term or the then applicable Renewal Term. Any amounts paid by Lender under any LC Guaranty or in connection with any Letter of Credit shall be treated as Revolving Credit Loans, shall be secured by all of the Collateral, and shall bear interest and be payable at the same rate and in the same manner as Revolving Credit Loans.

Letters of Credit; LC Guaranties. Lender (i) Agent agrees, on behalf of Lenders, for so long as no Default or Event of Default exists and subject to the satisfaction of the applicable conditions precedent set forth in Sections 9 and 9A, and if requested by Borrower, (x) to (a) issue its, or cause to be issued its Affiliate's, documentary 's Letters of Credit for the account of Borrower or (by) to execute LC Guaranties by which Lender Lenders shall guaranty the payment or performance by Borrower of its reimbursement obligations obligation with respect to documentary letters Letters of credit issued for Borrower's account by other Persons, Credit; provided that the aggregate face amount of all Letters of Credit and LC Amount Guaranties outstanding at any time shall not exceed the lesser of (a) Three Six Million Dollars ($3,000,0006,000,000), and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No Letter of Credit or LC Guarantee may have an expiration date that is after the last day of the Original Term or the then applicable Renewal Term. Any amounts paid by Agent or any Lender under any LC Guaranty or in connection with any Letter of Credit (x) shall be treated as Revolving Credit Loansbecome part of the Obligations, (y) unless paid by Borrower pursuant to subsection 1.3(iii) below, shall be secured by all paid from the proceeds of a Revolving Credit Loan requested pursuant to subsection 3.1.1 below, to the Collateralextent Lenders are required to make Revolving Credit Loans pursuant to the terms hereof and (z) otherwise, and shall bear interest and be payable at the same rate and in the same manner as Revolving Credit Loanson demand.

Letters of Credit; LC Guaranties. Lender agrees, for so long as no Default or Event of Default exists and subject (A) Subject to the satisfaction all of the applicable terms and conditions precedent set forth in Sections 9 and 9Aof this Agreement, and if requested to do so by BorrowerBorrowers, to (a) Agent shall, on behalf of Lenders, issue its, or cause to be issued its Affiliate's, documentary Letters of Credit for the account of Borrower Borrowers or (b) shall execute LC Guaranties by which Lender Lenders shall guaranty the payment or performance by Borrower Borrowers of its their reimbursement obligations obligation with respect to documentary letters Letters of credit Credit issued for Borrower's Borrowers' account by other Persons, any Lender or Agent; provided that the aggregate face amount of all Letters of Credit and LC Amount Guaranties outstanding at any time shall not exceed the lesser of (a) Three Five Million Dollars ($3,000,000), 5,000,000) and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No no Letter of Credit or LC Guarantee may have an expiration date that is after the last day Commitment Termination Date, unless Borrowers provide Agent with cash collateral for said Letter of the Original Term Credit or the then applicable Renewal TermLC Guaranty, in a manner and amount acceptable to Agent. Any amounts paid by Agent or any Lender under any LC Guaranty or in connection with any Letter of Credit (i) shall become part of the Obligations, (ii) shall be treated as paid from the proceeds of a Revolving Credit LoansLoan requested pursuant to Section 2.1(A) above, to the extent Lenders are required to make a Revolving Credit Loan pursuant to the terms hereof, and (iii) otherwise, shall be secured by all payable on demand. In no event shall Agent, or Lenders be required to issue or cause to be issued Letters of the Collateral, and shall bear interest and be payable Credit or LC Guaranties at the same rate and in the same manner as Revolving Credit Loansany time there exists a Default or an Event of Default.

Letters of Credit; LC Guaranties. Lender agrees, for so long as no Default or Event of Default exists and subject (A) Subject to the satisfaction all of the applicable terms and conditions precedent set forth in Sections 9 and 9Aof this Agreement, and if requested to do so by a Borrower, to (a) Agent shall, on behalf of Lenders, issue its, or cause to be issued its Affiliate's, documentary Bank's Letters of Credit for the account of Borrower or (b) shall execute LC Guaranties by which Lender Lenders shall guaranty the payment or performance by such Borrower of its reimbursement obligations obligation with respect to documentary letters Letters of credit Credit issued for such Borrower's account by other Persons, provided Bank or Agent; PROVIDED that the aggregate face amount of all Letters of Credit and LC Amount Guaranties outstanding at any time shall not exceed the lesser of (a) Three One Million Dollars ($3,000,000), 1,000,000) and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No no Letter of Credit or LC Guarantee may have an expiration date that is after the last day Commitment Termination Date, unless Borrowers provide on or prior to the Commitment Termination Date, Agent with cash collateral for said Letter of the Original Term Credit or the then applicable Renewal TermLC Guaranty, in a manner and amount acceptable to Agent. Any amounts paid by Agent or any Lender under any LC Guaranty or in connection with any Letter of Credit (i) shall become part of the Obligations (ii) shall be treated as paid from the proceeds of a Revolving Credit LoansLoan requested pursuant to SECTION 1.1.1, to the extent Lenders are required to make a Revolving Credit Loans pursuant to the terms hereof, and (iii) otherwise, shall be secured by all payable on demand. In no event shall Agent, Bank or Lenders be required to issue or cause to be issued Letters of the Collateral, and shall bear interest and be payable Credit or LC Guaranties at the same rate and in the same manner as Revolving Credit Loansany time there exists a Default or an Event of Default.

Letters of Credit; LC Guaranties. Lender agrees, for so long as no Default or Event of Default exists and subject (a) Subject to the satisfaction all of the applicable terms and conditions precedent set forth in Sections 9 and 9Aof this Agreement, and if requested to do so by Borrower, to (a) Lender shall issue its, or cause to be issued its Affiliate'sissued, documentary Letters of Credit for the account of Borrower or (b) shall execute LC Guaranties by which Lender shall guaranty the payment or performance by Borrower of its reimbursement obligations obligation with respect to documentary letters Letters of credit Credit issued for Borrower's account by other Persons, Lender (the "LETTER OF CREDIT FACILITY"); provided that the aggregate face amount of all Letters of Credit and LC Amount Guaranties outstanding at any time shall not exceed the lesser of: (i) the then current Borrowing Base minus the principal amount then outstanding of the Revolving Loans, or (aii) Three Two Million and no/100 Dollars ($3,000,0002,000,000.00), and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No Letter of Credit or LC Guarantee may have an expiration date that is later than the earlier of one year after the issuance date or the last day of the Original Term Term, unless Borrower shall provide Lender with cash collateral for said Letter of Credit or LC Guaranty, in a manner and amount (not greater than the then applicable Renewal Termface amount thereof plus any possible fees, payments, commissions or negotiation charges) acceptable to Lender. Any amounts paid by Lender under any LC Guaranty or in connection with any Letter of Credit (i) shall become part of the Liabilities; (ii) shall be treated as paid from the proceeds of a Revolving Credit LoansLoan requested pursuant to Section 2.2 (a), to the extent Lender is required to make a Revolving Loan pursuant to the terms hereof; and (iii) otherwise, shall be secured by all payable on demand. In no event shall Lender, or Lender be required to issue or cause to be issued Letters of the Collateral, and shall bear interest and be payable Credit or LC Guaranties at the same rate and in the same manner as Revolving Credit Loansany time there exists a Default or an Event of Default.

Letters of Credit; LC Guaranties. Lender agrees, for so long as no Default or Event of Default exists and subject (A) Subject to the satisfaction all of the applicable terms and conditions precedent set forth in Sections 9 and 9Aof this Agreement, and if requested to do so by Borrower, to (a) Agent shall, on behalf of Lenders, issue its, or cause to be issued its Affiliate's, documentary Bank's Letters of Credit for the account of Borrower or (b) shall execute LC Guaranties by which Lender Lenders shall guaranty the payment or performance by Borrower of its reimbursement obligations obligation with respect to documentary letters Letters of credit Credit issued for Borrower's account by other Persons, Bank or Agent; provided that the aggregate face amount of all Letters of Credit and LC Amount Guaranties outstanding at any time shall not exceed the lesser of (a) Three Five Million Dollars ($3,000,000), 5,000,000) and (b) the Maximum Revolving Amount minus the then aggregate outstanding principal amount of Revolving Credit Loans. The parties agree that any Letters of Credit or LC Guaranties outstanding under the Existing Loan Agreement automatically shall be deemed to be outstanding under this Agreement as of the Closing Date. No no Letter of Credit or LC Guarantee may have an expiration date that is after the last day Commitment Termination Date, unless Borrower provides on or prior to the Commitment Termination Date, Agent with cash collateral for said Letter of the Original Term Credit or the then applicable Renewal TermLC Guaranty, in a manner and amount acceptable to Agent. Any amounts paid by Agent or any Lender under any LC Guaranty or in connection with any Letter of Credit (i) shall be treated as Revolving Credit Loansbecome part of the Obligations, (ii) unless paid by Borrower pursuant to Section 1.3(C) below, shall be secured by all paid from the proceeds of a Revolving Credit Loan requested pursuant to Section 3.1.1 above, to the Collateralextent Lenders are required to make Revolving Credit Loans pursuant to the terms hereof and (iii) otherwise, and shall bear interest and be payable on demand. In no event shall Agent, Bank or Lenders be required to issue or cause to be issued Letters of Credit or LC Guaranties at the same rate and in the same manner as Revolving Credit Loansany time there exists a Default or an Event of Default.