Common use of Replacement Letters of Credit Clause in Contracts

Replacement Letters of Credit. The Purchaser covenants and agrees that it shall use commercially reasonable efforts to (a) obtain new letters of credit to substitute for and replace the letters of credit set forth on the Letters of Credit Schedule (the “Letters of Credit”) effective as of the Closing Date, (b) arrange for the Letters of Credit to be “grandfathered” as letters of credit under a new credit facility so that the Letters of Credit remain outstanding after the Closing or (c) collateralize or otherwise backstop the Letters of Credit so that the Letters of Credit remain outstanding after the Closing. The Company and its Subsidiaries may take any necessary steps to cash collateralize any Letters of Credit that will not be replaced, grandfathered, collateralized or otherwise backstopped by the Purchaser at the Closing.