Common use of Obligation to grant Credit Support Clause in Contracts

Obligation to grant Credit Support. (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insurance, then ARTC may request the Operator to provide Credit Support on seven days’ notice. If the Operator elects to provide Security, then the Security requested by ARTC must be for an amount not greater than the maximum security, as determined under clause 4.1(b). (b) The maximum security that can be requested by ARTC (including Security given under clause 2.2) will be $2 million for the 2011 calendar year and will be reviewed and escalated at the commencement of each subsequent calendar year in accordance with the following formula. St = St-1 x (CPIt / CPI t-1) Where: St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement of the previous calendar year . (c) The amount of the Security requested under clause 4.1(a) (provided it is below the maximum security determined under clause 4.1(b)) is not subject to clause 17. (d) If the Operator is able to demonstrate that it meets the requirement under clause 4.1(a), ARTC will return the Credit Support provided under this clause 4.1. (e) If the Operator has provided Security under this agreement, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Operator. (f) Upon termination of the agreement, ARTC will release the Security to the Operator provided that at such time the Operator does not owe any further monies to ARTC under this agreement, in which case, the Security will be returned to the Operator less any money (disputed or undisputed) owing by the Operator to ARTC.

Obligation to grant Credit Support. credit rating test (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insuranceAccess Holder does not have an Acceptable Credit Rating, then ARTC may request the Operator Access Holder to provide Credit Support on seven days’ notice. If the Operator Access Holder elects to provide Security, then the that Security requested by ARTC must be for an amount not greater than the maximum security, as determined under clause 4.1(b)of at least three months’ TOP Charges. (b) The maximum security that can be requested by ARTC (including amount of the Security given under clause 2.2) will be $2 million for the 2011 calendar year and will be reviewed and escalated at every 12 months from the commencement of each subsequent calendar year Effective Date to reflect any increase in accordance with the following formulaTOP Charges. St = St-1 x (CPIt / CPI t-1) Where: St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement The results of the previous calendar year review are not subject to clause 14. (c) The amount Access Holder must promptly notify ARTC of any downgrade in the Access Holder’s credit rating (or that of the Security requested under clause 4.1(aperson providing a Parent Guarantee) (provided it is below the maximum security determined under clause 4.1(b)) is not subject to clause 17Acceptable Credit Rating. 7.1 Deleted: 7.1 (d) If the Operator Access Holder’s credit rating is able upgraded to demonstrate that it meets the requirement under clause 4.1(a)an Acceptable Credit Rating, ARTC will return the Credit Support provided under clause 2 or this clause 4.17.1. (e) If the Operator Access Holder has provided Security under this agreementSecurity, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the OperatorAccess Holder. In such case, ARTC must promptly repay the Security drawn once the replacement Security is provided. (f) Upon termination or expiry of the agreement, ARTC will release the Security to the Operator Access Holder provided that at such time the Operator Access Holder does not owe any further monies to ARTC under this agreement, in which case, the Security will will: [Note: ARTC indicated in its table of comments dated 7 December 2009 that this amendment was agreed] (i) if an amount has not at that time become due and payable, be returned to retained by ARTC until such time as the Operator less any money (disputed amount is paid or undisputed) owing by the Operator to ARTC.becomes due and payable; and

Obligation to grant Credit Support. credit rating test (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insuranceAccess Holder does not have an Acceptable Credit Rating, then ARTC may request the Operator Access Holder to provide Credit Support on seven days’ notice. If the Operator Access Holder elects to provide Security, then the that Security requested by ARTC must be for an amount not greater than the maximum security, as determined under clause 4.1(b)of at least three months’ TOP Charges. (b) The maximum security that can be requested by ARTC (including amount of the Security given under clause 2.2) will be $2 million for the 2011 calendar year and will be reviewed and escalated at every 12 months from the commencement of each subsequent calendar year Effective Date to reflect any increase in accordance with the following formulaTOP Charges. St = St-1 x (CPIt / CPI t-1) Where: St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement The results of the previous calendar year review are not subject to clause 14. (c) The amount Access Holder must promptly notify ARTC of any downgrade in the Access Holder’s credit rating (or that of the Security requested under clause 4.1(aperson providing a Parent Guarantee) (provided it is below the maximum security determined under clause 4.1(b)) is not subject to clause 17Acceptable Credit Rating. (d) If the Operator Access Holder’s credit rating is able upgraded to demonstrate that it meets the requirement under clause 4.1(a)an Acceptable Credit Rating, ARTC will return the Credit Support provided under clause 2 or this clause 4.17.1. (e) If the Operator Access Holder has provided Security under this agreementSecurity, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the OperatorAccess Holder. In such case, ARTC must promptly repay the Security drawn once the replacement Security is provided. (f) Upon termination of the agreement, ARTC will release the Security to the Operator Access Holder provided that at such time the Operator Access Holder does not owe any further monies to ARTC under this agreement, in which case, the Security will will: (i) if an amount has not at that time become due and payable, be retained by ARTC until such time as the amount is paid or becomes due and payable; and (ii) if an amount is, or becomes due and payable, but has not yet been paid, be returned to the Operator Access Holder less any money (disputed or undisputed) owing by the Operator Access Holder to ARTC. (g) Clauses 7.1(e)and 7.1(f) survive termination or expiry of this agreement.

Obligation to grant Credit Support. (a) If, at any time after the Commencement Date, the Operator is unable to demonstrate to ARTC (on request) that it has a legal ownership structure with a sufficient capital base and assets of value to meet the actual or potential liabilities under this agreement, including timely payment of insurance premiums and deductibles under the required policies of insurance, then ARTC may request the Operator to provide Credit Support on seven days’ notice. If the Operator elects to provide Security, then the Security requested by ARTC must be for an amount not greater than the maximum security, as determined under clause 4.1(b). (b) The maximum security that can be requested by ARTC (including Security given under clause 2.2) will be $2 million for the 2011 2010 calendar year and will be reviewed and escalated at the commencement of each subsequent calendar year in accordance with the following formula. St = St-1 x (CPIt / CPI t-1) Where: St is the maximum security that can be requested by ARTC for the calendar year which has commenced; St 1 is the maximum security which could be requested by ARTC in the previous calendar year; CPIt = the CPI for the September quarter immediately preceding the commencement of that calendar year; and CPIt-1 = the CPI for the September quarter immediately preceding the commencement of the previous calendar year . (c) The amount of the Security requested under clause 4.1(a) (provided it is below the maximum security determined under clause 4.1(b)) is not subject to clause 17. (d) If the Operator is able to demonstrate that it meets the requirement under clause 4.1(a), ARTC will return the Credit Support provided under this clause 4.1. (e) If the Operator has provided Security under this agreement, then, ARTC may draw on the Security on the last Business Day prior to the expiry of the Security unless, at least three Business Days before the expiry date of the Security, replacement Security to the required amount has been provided by or on behalf of the Operator. (f) Upon termination of the agreement, ARTC will release the Security to the Operator provided that at such time the Operator does not owe any further monies to ARTC under this agreement, in which case, the Security will be returned to the Operator less any money (disputed or undisputed) owing by the Operator to ARTC.