Common use of Credit Enhancements Clause in Contracts

Credit Enhancements. If (a) the Second Lien Agent or any Second Lien Noteholder or (b) any other holder of Specified Junior Debt, in their capacity as such, receives any additional guaranty, Lien, letter of credit or similar credit support after the Second Amendment Effective Date with respect to the Second Lien Note Obligations or other obligations with respect to the Specified Junior Debt owed to them under the Second Lien Note Documents or the documentation governing the Specified Junior Debt, the Loan Parties shall cause, and shall cause the Parent Loan Guarantors to cause, the same to be granted to the Administrative Agent for the benefit of the Secured Parties (on a senior priority basis to the same extent provided in the Second Lien Intercreditor and Subordination Agreement). In furtherance of the foregoing, any parent company of Holdings that, in addition to Parent and Intermediate Parent, guarantees the Second Lien PIK Notes or any other Specified Junior Debt shall become a Parent Loan Guarantor, and substantially concurrently with providing such guaranty of the Second Lien PIK Notes and/or such Specified Junior Debt shall become a party to the Parent Loan Guaranty as a “Parent Loan Guarantor”, execute a Joinder Agreement and comply with the requirements set forth in clause (b) of the definition of “Collateral and Guarantee Requirement”.

Credit Enhancements. If (a) the Second Lien Agent or any Second Lien Noteholder or (b) any other holder of Specified Junior Debt, in their capacity as such, receives any additional guaranty, Lien, letter of credit or similar credit support after the Second Amendment Effective Date with respect to the Second Lien Note Obligations or other obligations with respect to the Specified Junior Debt owed to them under the Second Lien Note Documents or the documentation governing the Specified Junior Debt, the Loan Parties shall cause, and shall cause the Parent Loan Guarantors to cause, the same to be granted to the Administrative Agent for the benefit of the Secured Parties (on a senior priority basis to the same extent provided in the Second Lien Intercreditor and Subordination Agreement). In furtherance of the foregoing, any parent company of Holdings that, in addition to Parent and Intermediate Parent, guarantees the Second Lien PIK Notes or any other Specified Junior Debt shall become a Parent Loan Guarantor, and substantially concurrently with providing such guaranty of the Second Lien PIK Notes and/or such Specified Junior Debt shall become a party to the Parent Loan Guaranty as a “Parent Loan Guarantor”, execute a Joinder Agreement and comply with the requirements set forth in clause (b) of the definition of “Collateral and Guarantee Requirement”. It is understood and agreed that a Pre-Funding Cash Escrow Arrangement (as defined in the Parent Loan Guaranty) does not violate this Section 5.17.