Common use of Commitment for Letters of Credit Clause in Contracts

Commitment for Letters of Credit. Subject to the terms and conditions set forth in this Agreement and in reliance upon the agreements of the other Lenders set forth in this Section, (i) the US Issuing Lender agrees to, from time to time on any Business Day during the period from the Effective Date until the Maturity Date, issue, increase or extend the expiration date of, or cause an Underlying Issuer to issue, increase, or extend the expiration of, US Letters of Credit denominated in the Designated Currency for the account of the US Borrower or a US Subsidiary Guarantor; and (ii) the Canadian Issuing Lender agrees to, from time to time on any Business Day during the period from the Effective Date until the Maturity Date, issue, increase or extend the expiration date of, Canadian Letters of Credit denominated in a Designated Currency for the account of the Canadian Borrower or a Guarantor. If US Issuing Lender, at its option, elects to cause an Underlying Issuer to issue a requested Letter of Credit, then US Issuing Lender agrees that it will obligate itself to reimburse such Underlying Issuer (which may include, among, other means, by becoming an applicant with respect to such Letter of Credit or entering into undertakings which provide for reimbursements of such Underlying Issuer with respect to such Letter of Credit; each such obligation or undertaking, irrespective of whether in writing, a “Reimbursement Undertaking”) with respect to Letters of Credit issued by such Underlying Issuer. By submitting a request to US Issuing Lender for the issuance of a Letter of Credit, US Borrower shall be deemed to have requested that US Issuing Lender issue or that an Underlying Issuer issue the requested Letter of Credit and to have requested US Issuing Lender to issue a Reimbursement Undertaking with respect to such requested Letter of Credit if it is to be issued by an Underlying Issuer (it being expressly acknowledged and agreed by US Borrower that US Borrower is and shall be deemed to be an applicant (within the meaning of Section 5-102(a)(2) of the UCC) with respect to each Underlying Letter of Credit).

Commitment for Letters of Credit. Prior to the Closing Date, Bank of America, as “Issuing Lender” under the Existing Credit Agreement has issued the Existing L/Cs, which from and after the Closing Date, shall constitute Letters of Credit hereunder. Subject to the terms and conditions set forth in this Agreement and hereof, each Issuing Lender hereunder, in reliance upon on the agreements of the other Lenders Revolving Lenders, set forth in Section 3.4, agrees to issue letters of credit (the letters of credit issued on and after the Closing Date pursuant to this SectionSection 3 together with the Existing L/Cs, the “Letters of Credit”) in Dollars or in Alternative Currencies for the account of the Borrower, and each Lender severally agrees to participate in the Letters of Credit (iincluding Existing L/Cs) the US issued by each Issuing Lender agrees tohereunder, in a Dollar equivalent amount equal to such Lender’s Revolving Credit Percentage, from time to time time, on any Business Day during the period from commencing on the Effective Date date hereof, and continuing until the Maturity DateRevolving Commitment Termination Date in such form as may be approved from time to time by the applicable Issuing Lender; provided, issue, increase or extend the expiration date of, or cause an Underlying Issuer that no Issuing Lender shall have any obligation to issue, increase, or extend the expiration of, US Letters issue any Letter of Credit denominated in if, after giving effect to such issuance, (i) the Designated Currency for Letter of Credit Obligations would exceed the account Letter of the US Borrower Credit Availability or a US Subsidiary Guarantor; and (ii) the Canadian Issuing Lender agrees to, from time to time on any Business Day during the period from the Effective Date until the Maturity Date, issue, increase or extend the expiration date of, Canadian Letters aggregate amount of Credit denominated in a Designated Currency for the account of the Canadian Borrower or a GuarantorAvailable Revolving Commitments would be less than zero. If US Issuing Lender, at its option, elects to cause an Underlying Issuer to issue a requested Letter of Credit, then US Issuing Lender agrees that it will obligate itself to reimburse such Underlying Issuer (which may include, among, other means, by becoming an applicant with respect to such Each Letter of Credit or entering into undertakings shall expire no later than the earlier of (x) the fourth anniversary of its date of issuance and (y) the date which provide for reimbursements is prior to the Revolving Commitment Termination Date as in effect at the time of such Underlying Issuer with respect to such the issuance of the Letter of Credit; each such obligation or undertaking, irrespective of whether in writing, a “Reimbursement Undertaking”) with respect to Letters of Credit issued by such Underlying Issuer. By submitting a request to US Issuing Lender for the issuance of a Letter of Credit, US Borrower shall be deemed to have requested provided that US Issuing Lender issue or that an Underlying Issuer issue the requested any Letter of Credit and with a one-year term may provide for renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to have requested US Issuing Lender to issue a Reimbursement Undertaking with respect to such requested Letter of Credit if it is to be issued by an Underlying Issuer in clause (it being expressly acknowledged and agreed by US Borrower that US Borrower is and shall be deemed to be an applicant (within the meaning of Section 5-102(a)(2y) of the UCC) with respect to each Underlying Letter of Creditabove).