Common use of Replacement Letters of Credit Clause in Contracts

Replacement Letters of Credit. (a) Buyer agrees to work with Sellers to replace the existing financing from San Diego National Bank, which created the liens on the Company's inventory, proceeds and products with Buyer's or Buyer's Parent's Letter of Credit. (b) Buyer agrees to use commercially reasonable efforts to replace Seller's personal guarantees on any outstanding leases to which the Company is a party.

Replacement Letters of Credit. (a) Buyer agrees to work with Sellers to replace the existing financing from San Diego National Bank, Bank which created the liens on the Company's inventory, proceeds and products with Buyer's or Buyer's Parent's Letter of Credit. (b) Buyer agrees to use commercially reasonable efforts to replace Seller's personal guarantees on any outstanding leases to which the Company is a party.