Common use of ADDITIONAL FINANCIAL GUARANTEES Clause in Contracts

ADDITIONAL FINANCIAL GUARANTEES. In addition to the insurance set forth in Article 15.1, above, the Competitive Supplier shall, within ten (10) Business Days after the Effective Date, provide the Town with a guaranty issued by Competitive Supplier’s Guarantor substantially in the form attached hereto as Exhibit X (the “Guaranty”) and in the amount of two million US dollars ($2,000,000). Such Guaranty shall guarantee the obligations of Competitive Supplier to the Town contained in this ESA, and shall establish the limit on Competitive Supplier’s liability under this ESA. Such Guaranty shall become issued within ten (10) Business Days after the Effective Date but shall be in effect as of the Effective Date, and shall continue in effect during the entire Term of ESA. Competitive Supplier may, without the consent of the Town, replace the financial security provided hereunder with cash or a letter of credit substantially in the form attached hereto as Exhibit Y (“Letter of Credit”), provided such replacement financial security is in the same amount previously provided by the Guaranty. Competitive Supplier may also replace the financial security provided hereunder with another form of financial security, or otherwise change the amount of its financial security, with the consent of the Town, such consent not to be unreasonably withheld. Upon reasonable request during the Term of this ESA and on a continuing basis, Competitive Supplier will provide the Town with a copy of Competitive Supplier’s annual report, and the annual report of its ultimate parent.

ADDITIONAL FINANCIAL GUARANTEES. In addition to the insurance set forth in Article 15.1, above, the Competitive Supplier shall, within ten (10) Business Days after the Effective Date, provide the Town with a guaranty issued by Competitive Supplier’s Guarantor substantially in the form attached hereto as Exhibit X _ (the “Guaranty”) and in the amount of two million US dollars ($2,000,000). Such Guaranty shall guarantee the obligations of Competitive Supplier to the Town contained in this ESA, and shall establish the limit on Competitive Supplier’s liability under this ESA. Such Guaranty shall become issued within ten (10) Business Days after the Effective Date but shall be in effect as of the Effective Date, and shall continue in effect during the entire Term of ESA. Competitive Supplier may, without the consent of the Town, replace the financial security provided hereunder with cash or a letter of credit substantially in the form attached hereto as Exhibit Y X (“Letter of Credit”), provided such replacement financial security is in the same amount previously provided by the Guaranty. Competitive Supplier may also replace the financial security provided hereunder with another form of financial security, or otherwise change the amount of its financial security, with the consent of the Town, such consent not to be unreasonably withheld. Upon reasonable request during the Term of this ESA and on a continuing basis, Competitive Supplier will provide the Town with a copy of Competitive Supplier’s annual report, and the annual report of its ultimate parent.