Common use of Replacement Letters of Credit Clause in Contracts

Replacement Letters of Credit. 4.7.1 If a Substitute Bank has become party hereto pursuant to Clause 4.6 (Substitute Bank), then subject to the provisions of Clause 4.8 (Extension Conditions Precedent) the Banks who have confirmed their agreement to the extension of the Old Letter of Credit (the "Extending Banks") shall, together with the Substitute Bank, participate in, and issue by the Funds Date of such year, a new Letter of Credit (the "New Letter of Credit") which shall (i) replace the Old Letter of Credit, (ii) be in an amount equal to the Old Letter of Credit and (iii) have an Expiry Date which corresponds with the Expiry Date requested in the Notice of Extension. 4.7.2 If a Substitute Bank has not been found then: (a) the Account Party shall procure the release by Lloyd's of the Old Letter of Credit from the Funds at Lloyd's of the relevant Applicant, (b) subject to the provisions of Clause 4.8 (Extension Conditions Precedent), the Extending Banks shall participate in, and issue by the Funds Date of such year, a new Letter of Credit (the "Reduced Letter of Credit") which shall (1) replace their participation in the Old Letter of Credit, (2) be in an amount equal to the Old Letter of Credit less the amount of the Declining Bank's participation and (3) have an Expiry Date which corresponds with the Expiry Date requested in the Notice of Extension; and (c) the Declining Bank shall participate in a separate Letter of Credit (a "Bilateral Letter of Credit") which shall (1) replace its participation in the Old Letter of Credit, (2) be in an amount equal to the Declining Bank's participation in the Old Letter of Credit and (3) have an Expiry Date which is the same as the Expiry Date specified in the Old Letter of Credit (as the same may have been extended from time to time with the consent of the Declining Bank).

Replacement Letters of Credit. 4.7.1 4.5.1 If a Substitute Bank has become party hereto pursuant to Clause 4.6 4.4 (Substitute Bank), then then, subject to the provisions of Clause 4.8 4.6 (Extension Continuation Conditions Precedent) ), the Banks who are deemed to have confirmed their agreement agreed to the extension continuation of the Old Letter of Credit in any year (the "“Extending Banks"”) shall, together with the Substitute Bank, issue, with effect from the relevant Substitute Date, and participate in, and issue by the Funds Date of such year, a new Letter of Credit (the "“New Letter of Credit"”) which shall shall: (ia) replace the Old Letter of Credit, and (iib) be in an amount equal to the Old Letter of Credit and (iii) have an Expiry Date which corresponds with the Expiry Date requested in the Notice of ExtensionCredit. 4.7.2 4.5.2 If a Substitute Bank has not been found designated, then: : (a) the Account Party shall procure the release by Lloyd's ’s of the Old Letter of Credit from the Funds at Lloyd's ’s of the relevant Applicant, ; (b) subject to the provisions of Clause 4.8 4.6 (Extension Continuation Conditions Precedent), the Extending Banks shall issue, with effect from the relevant Substitute Date, and participate in, and issue by the Funds Date of such year, a new Letter of Credit (the "“Reduced Letter of Credit"”) which shall shall: (1i) replace their participation in the Old Letter of Credit, ; and (2ii) be in an amount equal to the Old Letter of Credit less the amount of the Declining Bank's ’s participation and (3) have an Expiry Date which corresponds with the Expiry Date requested in the Notice of Extensiontherein; and and (c) the Declining Bank shall issue, with effect from the relevant Substitute Date, and participate in in, a separate Letter of Credit (a "“Bilateral Letter of Credit"”) which shall shall: (1i) replace its participation in the Old Letter of Credit, ; (2ii) be in an amount equal to the Declining Bank's ’s participation in the Old Letter of Credit and Credit; and (3iii) have an Expiry a Final Expiration Date which is the same as fourth anniversary of the Expiry Date specified in date on which the Old relevant Termination Notice was given by the Agent to Lloyd’s after that Declining Bank first gave its notice of termination pursuant to Clause 4.3 (Banks’ Rights to Terminate a Letter of Credit (as the same may have been extended from time to time with the consent of the Declining BankCredit).