Common use of Financial Guarantee Clause in Contracts

Financial Guarantee. 11.1. In order to secure any potential claims of EUS against the Shipper under this Contract and Individual Contract, the Parties have agreed that Shipper shall provide EUS with and shall maintain the financial guarantee in the form of (i) an irrevocable, unconditional bank guarantee in favour of EUS payable on first demand or (ii) a cash collateral. The financial security shall be provided no later than on June 26, 2019. The bank guarantee shall not expire sooner than two months after the expiration of the last Booked daily transmission capacity. All costs related to this bank guarantee shall be covered by the Shipper. The bank guarantee must be issued, and if relevant confirmed, by a bank with Xxxxx’x long term credit rating of not less than Baa2 or Standard & Poor's BBB. The language of the document is English or Slovak. If the bank guarantee does not cover the overall required period the Shipper shall extend the bank guarantee until 60th day preceding the expiry of the currently valid bank guarantee. Financial guarantee in the form of collateral is payable to the following collateral bank account of EUS: IBAN XX00 0000 0000 0000 0000 0000 with the bank VÚB, a.s., Bratislava branch, SWIFT: XXXXXXXX. Financial guarantee in the form of collateral shall not be considered as a down payment for transmission services. EUS shall return unspent financial resources of the cash collateral without any bank interests to the Shipper not later than two (2) months after the expiration of this Contract. 11.2. The Shipper shall provide and maintain a sufficient level of the financial guarantee in favour of EUS. A sufficient level of the financial guarantee shall be considered based on Shipper’s creditworthiness, the amount which is at least: Rating grade (n) monthly payment* Xxxxx'x Standard & Poor's Fitch Ratings Aaa - Baa3 AAA - BBB- AAA - BBB- 2 Ba1 - Ba3 BB+ - BB- BB+ - BB- 4 B1 - C B+ - D B+ - D 6 Without rating 6 In case there is no Shipper’s credit rating, the credit rating of the Shipper’s parent company shall be considered provided that the parent’s company share on the Shipper is at least 51 %. 11.3. The Shipper is obliged to inform EUS of any change in the Shipper´s credit rating and/or, if it ceases to have a credit rating. If any change in the Shipper´s credit rating occurs or if it ceases to have a credit rating or any market event detrimentally affecting (in the reasonable opinion of EUS) the creditworthiness of the Shipper occurs, EUS shall have the right to revise its creditworthiness assessment and the level of the Financial guarantee which the Shipper shall provide in connection with allocated capacity. EUS shall notify Shipper on revision of its creditworthiness assessment and the Shipper is obliged to adjust its financial guarantee to the required level. 11.4. Notwithstanding the above EUS has at any time the right to request the Shipper to provide information (in whatever form) EUS deems necessary for the creditworthiness assessment and the Shipper is obliged to submit the required information. To the extent that such information is confidential, the confidentiality provisions of Article 17 (Confidentiality) of the Contract shall apply. 11.5. EUS is entitled to use the relevant financial guarantee only in order to satisfy its claims towards the Shipper under this Contract and Individual Contact. EUS is allowed to use financial guarantee when Shipper is in delay with any payment under this Contract and Individual Contract for minimum of three (3) calendar days or when the Shipper fail to meet any other obligation specified in this Article (including its failure to update the financial guarantee). Obligation to pay to EUS delay interest under Article 10.5. shall remain unaffected. The Shipper shall maintain the financial guarantee, including its amendments, in the agreed amount valid and effective during the effectiveness of the Booked daily transmission capacity and for an additional period of two (2) months after the termination of effectiveness of the Booked daily transmission capacity. The Shipper shall update the financial guarantee immediately (not later than three (3) calendar days) following performance of the payment to EUS under the financial guarantee according to this Contract

Financial Guarantee. 11.1. In order to secure any potential claims of EUS against the Shipper under this Contract and Individual Contract, the Parties have agreed that Shipper shall provide EUS with and shall maintain the financial guarantee in the form of (i) an irrevocable, unconditional bank guarantee in favour of EUS payable on first demand or (ii) a cash collateral. The financial security shall be provided no later than on June 26, 20192020. The bank guarantee shall not expire sooner than two months after the expiration of the last Booked daily transmission capacity. All costs related to this bank guarantee shall be covered by the Shipper. The bank guarantee must be issued, and if relevant confirmed, by a bank with Xxxxx’x long term credit rating of not less than Baa2 or Standard & Poor's BBB. The language of the document is English or Slovak. If the bank guarantee does not cover the overall required period the Shipper shall extend the bank guarantee until 60th day preceding the expiry of the currently valid bank guarantee. Financial guarantee in the form of collateral is payable to the following collateral bank account of EUS: IBAN XX00 0000 0000 0000 0000 0000 with the bank VÚB, a.s., Bratislava branch, SWIFT: XXXXXXXX. Financial guarantee in the form of collateral shall not be considered as a down payment for transmission services. EUS shall return unspent financial resources of the cash collateral without any bank interests to the Shipper not later than two (2) months after the expiration of this Contract. 11.2. The Shipper shall provide and maintain a sufficient level of the financial guarantee in favour of EUS. A sufficient level of the financial guarantee shall be considered based on Shipper’s creditworthiness, the amount which is at least: Rating grade (n) monthly payment* Xxxxx'x Standard & Poor's Fitch Ratings Aaa - Baa3 AAA - BBB- AAA - BBB- 2 Ba1 - Ba3 BB+ - BB- BB+ - BB- 4 B1 - C B+ - D B+ - D 6 Without rating 6 In case there is no Shipper’s credit rating, the credit rating of the Shipper’s parent company shall be considered provided that the parent’s company share on the Shipper is at least 51 %. 11.3. The Shipper is obliged to inform EUS of any change in the Shipper´s credit rating and/or, if it ceases to have a credit rating. If any change in the Shipper´s credit rating occurs or if it ceases to have a credit rating or any market event detrimentally affecting (in the reasonable opinion of EUS) the creditworthiness of the Shipper occurs, EUS shall have the right to revise its creditworthiness assessment and the level of the Financial guarantee which the Shipper shall provide in connection with allocated capacity. EUS shall notify Shipper on revision of its creditworthiness assessment and the Shipper is obliged to adjust its financial guarantee to the required level. 11.4. Notwithstanding the above EUS has at any time the right to request the Shipper to provide information (in whatever form) EUS deems necessary for the creditworthiness assessment and the Shipper is obliged to submit the required information. To the extent that such information is confidential, the confidentiality provisions of Article 17 (Confidentiality) of the Contract shall apply. 11.5. EUS is entitled to use the relevant financial guarantee only in order to satisfy its claims towards the Shipper under this Contract and Individual ContactContract. EUS is allowed to use financial guarantee when Shipper is in delay with any the payment under this Contract and Individual Contract for minimum of three (3) calendar days or when the Shipper fail to meet any other obligation specified in this Article (including its failure to update the financial guarantee)days. Obligation to pay to EUS delay interest under Article 10.5. shall remain unaffected. The Shipper shall maintain the financial guarantee, including its amendments, in the agreed amount valid and effective during the effectiveness of the Booked daily transmission capacity and for an additional period of two (2) months after the termination of effectiveness of the Booked daily transmission capacity. The Shipper shall update the financial guarantee immediately (not later than three (3) calendar days) following performance of the payment to EUS under the financial guarantee according to this Contract. EUS shall return unspent financial resources of the cash collateral without any bank interests to the Shipper not later than two months after the termination of this Contract. 11.3. The Shipper shall maintain a sufficient level of the financial guarantee in favour of EUS. A sufficient level of the financial guarantee shall be considered the amount which is at least equal to two forecasted average monthly payments of the Transmission fee (including neutrality charge), the fee for Gas for operational needs if provided in monetary form and potential Imbalance charges. In case of Booked daily transmission capacity for less than 2 months, the amount of financial guarantee shall represent the total payment for Transmission fee (including neutrality charge), the fee for Gas for operational needs if provided in monetary form and potential Imbalance charges. EUS has the right to ask the Shipper to increase the financial guarantee in advance if the additional requested capacity should not be covered by existing financial guarantee. EUS shall not accept individual Requests for transmission and shall not provide individual Confirmation for capacity granting in case that financial guarantee of the Shipper is lower than required financial guarantee under this Article taking into account already booked as well newly requested Booked daily transmission capacities. EUS is not obliged to grant the additional capacity if such increase of financial guarantee is refused by the Shipper.

Financial Guarantee. 11.1. In order to secure any potential claims of EUS against the Shipper under this Contract and Individual Contract, the Parties have agreed that Shipper shall provide EUS with and shall maintain the financial guarantee in the form of (i) an irrevocable, unconditional bank guarantee in favour of EUS payable on first demand or (ii) a cash collateral. The financial security shall be provided no later than on June September 26, 20192018. The bank guarantee shall not expire sooner than two months after the expiration of the last Booked daily transmission capacity. All costs related to this bank guarantee shall be covered by the Shipper. The bank guarantee must be issued, and if relevant confirmed, by a bank with Xxxxx’x long term credit rating of not less than Baa2 or Standard & Poor's BBB. The language of the document is English or Slovak. If the bank guarantee does not cover the overall required period the Shipper shall extend the bank guarantee until 60th day preceding the expiry of the currently valid bank guarantee. Financial guarantee in the form of collateral is payable to the following collateral bank account of EUS: IBAN XX00 0000 0000 0000 0000 0000 with the bank VÚB, a.s., Bratislava branch, SWIFT: XXXXXXXX. Financial guarantee in the form of collateral shall not be considered as a down payment for transmission services. EUS shall return unspent financial resources of the cash collateral without any bank interests to the Shipper not later than two (2) months after the expiration of this Contract. 11.2. The Shipper shall provide and maintain a sufficient level of the financial guarantee in favour of EUS. A sufficient level of the financial guarantee shall be considered based on Shipper’s creditworthiness, the amount which is at least: Rating grade (n) monthly payment* Xxxxx'x Standard & Poor's Fitch Ratings Aaa - Baa3 AAA - BBB- AAA - BBB- 2 Ba1 - Ba3 BB+ - BB- BB+ - BB- 4 B1 - C B+ - D B+ - D 6 Without rating 6 In case there is no Shipper’s credit rating, the credit rating of the Shipper’s parent company shall be considered provided that the parent’s company share on the Shipper is at least 51 %. 11.3. The Shipper is obliged to inform EUS of any change in the Shipper´s credit rating and/or, if it ceases to have a credit rating. If any change in the Shipper´s credit rating occurs or if it ceases to have a credit rating or any market event detrimentally affecting (in the reasonable opinion of EUS) the creditworthiness of the Shipper occurs, EUS shall have the right to revise its creditworthiness assessment and the level of the Financial guarantee which the Shipper shall provide in connection with allocated capacity. EUS shall notify Shipper on revision of its creditworthiness assessment and the Shipper is obliged to adjust its financial guarantee to the required level. 11.4. Notwithstanding the above EUS has at any time the right to request the Shipper to provide information (in whatever form) EUS deems necessary for the creditworthiness assessment and the Shipper is obliged to submit the required information. To the extent that such information is confidential, the confidentiality provisions of Article 17 (Confidentiality) of the Contract shall apply. 11.5. EUS is entitled to use the relevant financial guarantee only in order to satisfy its claims towards the Shipper under this Contract and Individual Contact. EUS is allowed to use financial guarantee when Shipper is in delay with any payment under this Contract and Individual Contract for minimum of three (3) calendar days or when the Shipper fail to meet any other obligation specified in this Article (including its failure to update the financial guarantee). Obligation to pay to EUS delay interest under Article 10.5. shall remain unaffected. The Shipper shall maintain the financial guarantee, including its amendments, in the agreed amount valid and effective during the effectiveness of the Booked daily transmission capacity and for an additional period of two (2) months after the termination of effectiveness of the Booked daily transmission capacity. The Shipper shall update the financial guarantee immediately (not later than three (3) calendar days) following performance of the payment to EUS under the financial guarantee according to this Contract