Common use of One Year Clause in Contracts

One Year. If the Letter of Credit has a one year term, Sysco Corporation shall notify EESI of the issuer’s intent not to renew the term of the Letter of Credit within sixty days prior to its expiration, and Sysco Corporation shall have thirty days from the date of such notice to EESI to provide a substitute letter of credit issued by a Qualifying Issuer. If Sysco Corporation does not provide such substitute letter of credit within thirty days after the notice, an Event of Default shall be deemed to have occurred and EESI shall have the right to draw on the Letter of Credit for all amounts due and owing by Sysco Corporation to EESI as of the Early Termination Date and the applicable Early Termination Payment. Notwithstanding the foregoing, EESI may draw on the Letter of Credit in whole or in part in the event Sysco Corporation is unable to pay the Early Termination Payment, and any additional amounts due EESI upon termination of this Agreement, within the time prescribed by this Agreement.

One Year. If the Letter of Credit has a one year term, Sysco Corporation shall notify EESI of the issuer’s intent not to renew the term of the Letter of Credit within sixty days prior to its expiration, and Sysco Corporation shall have thirty days from the date of such notice to EESI to provide a substitute letter of credit issued by a Qualifying Issuer. If Sysco Corporation does not provide such substitute letter of credit within thirty days after the notice, an Event of Default shall be deemed to have occurred and EESI shall have the right to draw on the Letter of Credit for all amounts due and owing by Sysco Corporation to EESI as of the Early Termination Date and the applicable Early Termination Payment. Notwithstanding the foregoing, EESI may draw on the Letter of Credit in whole or in part in the event Sysco Corporation is unable to pay the Early Termination Payment, and any EESI Invoice Amount, or any additional amounts due EESI upon termination of this Agreement, within the time prescribed by this Agreement.