7. Letter of Credit Subfeature. The first sentence of paragraph (1) of Section 2.1(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
Each standby Letter of Credit shall be issued for a term not to exceed three hundred sixty five (365) days, as designated by Borrower; provided, however, that no standby Letter of Credit shall have an expiry date more than three hundred sixty five (365) days beyond the Termination Date. A Letter of Credit with an expiry date that extends beyond the Termination Date in accordance with the immediately preceding sentence is referred to as an Extended Letter of Credit. If an Extended Letter of Credit remains outstanding on a date (the Cash Collateral Funding Date) that is either (a) five (5) business days prior to the Termination Date, or (b) after the date on which Borrower notifies Bank that this Agreement is to be terminated or the Line of Credit is no longer to be maintained with Bank, Borrower shall, on the Cash Collateral Funding Date, deposit cash collateral in a special collateral account to be established and maintained with Bank (the Letter of Credit Collateral Account) in an amount equal to 105.00% of the then applicable stated amount of the Extended Letter of Credit.
8. Leverage Ratio. Section 5.9(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
(b) Leverage Ratio not greater than:
(i) 3.50 to 1.00 for the fiscal quarters ended May 31, 2019 through May 31, 2020; and
(ii) 3.00 to 1.00 for the fiscal quarters ended August 31, 2020 and thereafter.
9. Compliance Certificate. Schedule II to Schedule 5.3(c) of the Credit Agreement is hereby amended by deleting 2.50 where it appears therein and replacing with the following:
3.50 for the fiscal quarters ended May 31, 2019 through May 31, 2020
3.00 for the fiscal quarters ended August 31, 2020 and thereafter
10. Hedging Agreements. Schedule 6.7 of the Credit Agreement is hereby amended by adding as the same may be further amended, modified, supplemented and restated from time to time immediately following the word Borrower in paragraph (3) thereof.
11. Effectiveness. This Amendment shall become effective once Bank shall have received (a) counterparts of this Amendment duly executed by the Borrower; and (b) such other documents, actions or assurances as Bank may reasonably request.
12. Representations and Warranties of Borrower. Borrower represents and warrants as follows:
(a) The execution, delivery and performance by Borrower of this Amendment and the Credit Agreement, as amended hereby, (i) are within Borrowers powers, (ii) have been duly authorized by all necessary action, (iii) do not result in, or require, the creation of any lien, security interest or other charge or encumbrance upon or with respect to the Collateral, and (iv) do not contravene (A) Borrowers organizational documents, or (B) any law or contractual restriction binding on or affecting Borrower.