Common use of FINANCIAL STANDING OF THE SUPPLIER Clause in Contracts

FINANCIAL STANDING OF THE SUPPLIER. The Authority may from time to time during the Term assess the financial standing of: the Supplier; where a Parent Company Guarantee has been provided by the Parent Company, the Parent Company; or where any Alternative Guarantee has been provided, the entity which has provided such Alternative Guarantee (“Alternative Guarantor”). Where a Material Adverse Change (as defined in Clause 11.6) has occurred in respect of the Supplier, its Parent Company and/or Alternative Guarantor, and such Material Adverse Change (in the reasonable opinion of the Authority) represents a risk to: the Supplier’s ability to perform its obligations under this Framework Agreement and/or the Customer Contracts; the ability of the Parent Company to meet its obligations under the Parent Company Guarantee; or the ability of any Alternative Guarantor to meet its obligations under an Alternative Guarantee, then the Authority may (subject to Clause 11.3) require a Parent Company Guarantee or other form of suitable security (including a financial bond, another guarantee (“Alternative Guarantee”) and/or letter of credit or other credit support) reasonably acceptable to the Authority (“Additional Security”). Before exercising its rights under Clause 11.2 to require Additional Security, the Authority shall attempt to discuss the matter with the Supplier and take into account any action which the Supplier and/or its Parent Company proposes to take to mitigate the risk referred to in Clause 11.2. The Supplier shall within five (5) Working Days: of a requirement in accordance with Clause 11.2, procure that the relevant Additional Security is obtained and evidence of this provided to the Authority; and of any change to any agreement which is the subject matter of the Parent Company Guarantee and/or any Alternative Guarantee, procure that the relevant guarantor provides written consent to such change. If the Supplier fails to comply with its obligations under Clause 11.4 or the Authority concludes that, despite the provision of Additional Security, there remains a risk to the: Supplier’s ability to perform its obligations under this Framework Agreement and/or the Customer Contracts; ability of the Parent Company to meet its obligations under the Parent Company Guarantee; or ability of any Alternative Guarantor to meet its obligations under an Alternative Guarantee, then the Authority may by notice in writing immediately terminate this Framework Agreement pursuant to Clause 14.10.