Common use of Collateral Request Clause in Contracts

Collateral Request. Should either Party during the Contract Term become reasonably insecure about the other Party's ability to perform its obligations hereunder, such Party may request that the other Party provide (or extend, if such collateral has already been provided) collateral in a form reasonably acceptable to the requesting Party sufficient to secure such Party's obligations hereunder,In the event the credit rating for Sysco Corporation issued by either Standard & Poor's Rating Services (“S&P”), a division of The XxXxxx-Xxxx Companies, Inc., or Xxxxx'x Investor Service, Inc. (“Moody’s”) falls below “BBB-” for S&P or “Baa3” for Moody’s, then Sysco Corporation will deliver to EESI, within three business days of EESI's request therefor, the forms of such collateral to include, without limitation, a deposit, letter of credit or parent guaranty.original of an unconditional, sight-draft standby letter of credit issued by a major U.S. commercial bank (“Qualifying Issuer”) with a long-term debt rating of at least “A” by S&P or “A2” by Moody’s for the account of Sysco Corporation and for the benefit of EESI, which letter of credit conforms to the provisions contained in this paragraph (the "Letter of Credit"). The Letter of Credit shall be in an amount equal to the sum of (a) the product of (i) the Anticipated Usage for each Facility for the three calendar months immediately after the month in which EESI requested the Letter of Credit, multiplied by (ii) the applicable EESI Energy Price for each Facility, plus (x) all Distribution Charges applicable to such volumes for such Facilities, plus (y) Taxes applicable to such volumes for such Facilities; and (b) an amount equivalent to the Early Termination Payment as calculated by EESI in accordance with Section 3.3.1 as of the date EESI requested the Letter of Credit. The Letter of Credit shall have a term equal to (A) the remainder of the Contract Term (in which case, the amount thereof may be adjusted annually to take into account changes in the amount of the Early Termination Payment), or (B)

Collateral Request. Should either Party during the Contract Term become reasonably insecure about the other Party's ability to perform its obligations hereunder, such Party may request that the other Party provide (or extend, if such collateral has already been provided) collateral in a form reasonably acceptable to the requesting Party sufficient to secure such Party's obligations hereunder,In the event the rating for long-term senior unsecured debt unsupported by third party credit rating enhancements for Sysco Corporation issued by either Standard & Poor's Poors Rating Services (“S&P”), a division of The XxXxxx-Xxxx Companies, Inc., or Xxxxx'x Investor Service, Inc. (“Moody’s”) falls below “BBB-” for S&P or “Baa3” for Moody’s, then Sysco Corporation will deliver to EESI, within three business days of EESI's request therefor, the forms of such collateral to include, without limitation, a deposit, letter of credit or parent guaranty.original original of an unconditional, sight-draft irrevocable standby letter of credit issued by a major U.S. commercial bank (“Qualifying Issuer”) with a senior long-term debt rating of at least “A” by S&P or and “A2” by Moody’s for the account of Sysco Corporation and for the benefit of EESI, which letter of credit conforms to the provisions contained in this paragraph (the "Letter of Credit"). The Letter of Credit shall be in an amount equal to the sum of (a) the product of (i) the Anticipated Usage for each Facility for the three calendar months immediately after the month in which EESI requested the Letter of Credit, multiplied by (ii) the applicable EESI Energy Price for each Facility, plus (x) all Distribution and Related Charges applicable to such volumes for such Facilities, plus (y) all Special Utility Charges applicable to such volumes for such Facilities, plus (z) Taxes applicable to such volumes for such Facilities; and (b) an amount equivalent to the Early Termination Payment as calculated by EESI in accordance with Section 3.3.1 as of the date EESI requested the Letter of Credit. The Letter of Credit shall have a term equal to (A) the remainder of the Contract Term (in which case, the amount thereof may be adjusted annually to take into account changes in the amount of the Early Termination Payment), or (B)

Collateral Request. Should either Party during the Contract Term become reasonably insecure about the other Party's ability to perform its obligations hereunder, such Party may request that the other Party provide (or extend, if such collateral has already been provided) collateral in a form reasonably acceptable to the requesting Party sufficient to secure such Party's obligations hereunder,In the event the rating for long-term senior unsecured debt unsupported by third party credit rating enhancements for Sysco Corporation issued by either Standard & Poor's Poors Rating Services (“S&P”), a division of The XxXxxx-Xxxx Companies, Inc., or Xxxxx'x Investor Service, Inc. (“Moody’s”) falls below “BBB-” for S&P or “Baa3” for Moody’s, then Sysco Corporation will deliver to EESI, within three business days of EESI's request therefor, the forms of such collateral to include, without limitation, a deposit, letter of credit or parent guaranty.original original of an unconditional, sight-draft irrevocable standby letter of credit issued by a major U.S. commercial bank (“Qualifying Issuer”) with a senior long-term debt rating of at least “A” by S&P or and “A2” by Moody’s for the account of Sysco Corporation and for the benefit of EESI, which letter of credit conforms to the provisions contained in this paragraph (the "Letter of Credit"). The Letter of Credit shall be in an amount equal to the sum of (a) the product of (i) the Anticipated Usage for each Facility for the three calendar months immediately after the month in which EESI requested the Letter of Credit, multiplied by (ii) the applicable EESI Energy Price for each Facility, plus (x) all Distribution Charges applicable to such volumes for such Facilities, plus (y) all Special Utility Charges applicable to such volumes for such Facilities, plus (z) Taxes applicable to such volumes for such Facilities; and (b) an amount equivalent to the Early Termination Payment as calculated by EESI in accordance with Section 3.3.1 as of the date EESI requested the Letter of Credit. The Letter of Credit shall have a term equal to (A) the remainder of the Contract Term (in which case, the amount thereof may be adjusted annually to take into account changes in the amount of the Early Termination Payment), or (B)

Collateral Request. Should either Party during the Contract Term become reasonably insecure about the other Party's ability to perform its obligations hereunder, such Party may request that the other Party provide (or extend, if such collateral has already been provided) collateral in a form reasonably acceptable to the requesting Party sufficient to secure such Party's obligations hereunder,In the event the credit rating for Sysco Corporation issued by either Standard & Poor's Rating Services (“S&P”), a division of The XxXxxx-Xxxx Companies, Inc., or Xxxxx'x Investor Service, Inc. (“Moody’s”) falls below “BBB-” for S&P or “Baa3” for Moody’s, then Sysco Corporation will deliver to EESI, within three business days of EESI's request therefor, the forms of such collateral to include, without limitation, a deposit, letter of credit or parent guaranty.original original of an unconditional, sight-draft standby letter of credit issued by a major U.S. commercial bank (“Qualifying Issuer”) with a long-term debt rating of at least “A” by S&P or “A2” by Moody’s for the account of Sysco Corporation and for the benefit of EESI, which letter of credit conforms to the provisions contained in this paragraph (the "Letter of Credit"). The Letter of Credit shall be in an amount equal to the sum of (a) the product of (i) the Anticipated Usage for each Facility for the three calendar months immediately after the month in which EESI requested the Letter of Credit, multiplied by (ii) the applicable EESI Energy Price for each Facility, plus (x) all Distribution Charges applicable to such volumes for such Facilities, plus (y) Taxes applicable to such volumes for such Facilities; and (b) an amount equivalent to the Early Termination Payment as calculated by EESI in accordance with Section 3.3.1 as of the date EESI requested the Letter of Credit. The Letter of Credit shall have a term equal to (A) the remainder of the Contract Term (in which case, the amount thereof may be adjusted annually to take into account changes in the amount of the Early Termination Payment), or (B)