Common use of Pursuant to Sections 5 Clause in Contracts

Pursuant to Sections 5. 11 and 5.12 of the Credit Agreement, each Domestic Subsidiary of Borrower that was not in existence or not a Domestic Subsidiary on the date of the Credit Agreement is required to enter into the Security Agreement as a Grantor upon becoming a Domestic Subsidiary if such Domestic Subsidiary owns or possesses property of a type that would be considered Collateral under the Security Agreement. Section 7.15 of the Security Agreement provides that additional Subsidiaries of Borrower may become the Grantors under the Security Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Grantor”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Grantor under the Security Agreement. Accordingly, the Collateral Agent and the New Grantor agree follows: SECTION 1. In accordance with Section 7.15 of the Security Agreement, the New Grantor by its signature below becomes a Grantor under the Security Agreement with the same force and effect as if originally named therein as a Grantor and the New Grantor hereby (a) agrees to all terms and provisions of the Security Agreement applicable to it as Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as Grantor thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing, the New Grantor, as security for the payment and performance in full of the Obligations (as defined in the Security Agreement), does hereby created and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Grantor’s right, title and interest in and to the Collateral (as defined in the Security Agreement) of the New Grantor. Each reference to a “Grantor” in the Security Agreement shall be deemed to include the New Grantor. The Security Agreement is hereby incorporated herein by reference. In addition, by signing this Agreement, the New Grantor acknowledges that it has become a party to the Collateral Sharing Agreement and agrees to be bound by all of the terms and provisions thereof.

Appears in 2 contracts

Sources: Security Agreement (Constar Inc), Security Agreement (Constar International Inc)