Common use of Collateral for Obligations of Atlas DE Clause in Contracts

Collateral for Obligations of Atlas DE. Within ten (10) Business Days after the Effective Date, Atlas DE will cause to be executed and delivered to GASMARK an irrevocable standby letter of credit issued by Wachovia Bank, N.A. or other lender(s) reasonably acceptable to GASMARK, containing terms and conditions that are reasonably acceptable to GASMARK, in the amount of Ten Million Dollars ($10,000,000)(the “Atlas LC”), which shall be exercisable by GASMARK in the event that Atlas DE is the Defaulting Party under the Base Contract. GASMARK will, upon invoice, reimburse Atlas DE for the charges assessed by the issuing bank specifically for issuing the Atlas LC, up to a maximum reimbursement amount of $187,500 for the first annual period. The Atlas LC will be effective as of the Effective Date, and will remain in effect until September 30, 2006; provided, however, that if GASMARK’s Exposure as of September 30, 2006 exceeds the Collateral Threshold, Atlas DE will provide GASMARK with a new letter of credit to replace the Atlas LC, in the amount of the then expiring Atlas LC (the "Replacement LC"). The Replacement LC shall terminate on the earlier of one year from the date of issuance or the expiration of the Base Contract. GASMARK will, upon invoice, reimburse Atlas DE for the charges assessed by the issuing bank specifically for issuing the Replacement LC, up to a maximum reimbursement amount of 1.875% of the face amount of the Replacement LC. The Replacement LC shall be subject to decrease as set forth in Section 2.4. It shall be a condition precedent to Atlas DE's performance under this section that GASMARK perform its obligations under Section 2.2.

Collateral for Obligations of Atlas DE. Within ten (10) Business Days after the Effective Date, Atlas DE will cause to be executed and delivered to GASMARK an irrevocable standby letter of credit issued by Wachovia Bank, N.A. or other lender(s) reasonably acceptable to GASMARK, containing terms and conditions that are reasonably acceptable to GASMARK, in the amount of Ten Million Dollars ($10,000,000)(the “Atlas LC”), which shall be exercisable by GASMARK in the event that Atlas DE is the Defaulting Party under the Base Contract. GASMARK will, upon invoice, reimburse Atlas DE for the charges assessed by the issuing bank specifically for issuing the Atlas LC, up to a maximum reimbursement amount of $187,500 for the first annual period. The Atlas LC will be effective as of the Effective Date, and will remain in effect until September 30, 2006; provided, however, that if GASMARK’s Exposure as of September 30, 2006 exceeds the Collateral Threshold, Atlas DE will provide GASMARK with a new letter of credit to replace the Atlas LC, in the amount of the then expiring Atlas LC (the "“Replacement LC"”). The Replacement LC shall terminate on the earlier of one year from the date of issuance or the expiration of the Base Contract. GASMARK will, upon invoice, reimburse Atlas DE for the charges assessed by the issuing bank specifically for issuing the Replacement LC, up to a maximum reimbursement amount of 1.875% of the face amount of the Replacement LC. The Replacement LC shall be subject to decrease as set forth in Section 2.4. It shall be a condition precedent to Atlas DE's ’s performance under this section that GASMARK perform its obligations under Section 2.2.