Common use of Party B Collateral Threshold Clause in Contracts

Party B Collateral Threshold. 🗆 $ ; provided, however, that the Collateral Threshold for Party B shall be zero upon the occurrence and during the continuance of an Event of Default or a Potential Event of Default with respect to Party B; and provided further that, in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand. (a) The amount opposite the lower of the Credit Rating for Party B on the relevant date of determination, or (b) zero if on the relevant date of determination Party B does not have a Credit Rating from the rating agency(ies) specified below or an Event of Default or a Potential Event of Default with respect to Party B has occurred and is continuing; provided, however, in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand:

Party B Collateral Threshold. 🗆TBD Name of Party B Guarantor, if applicable: If a Guarantor is identified, then all references to Party B shall include Party B Guarantor unless otherwise indicated and Party B shall be deemed to have the Credit Rating of Party B Guarantor. 🞏 The Collateral Threshold for Party B shall be $ ; provided, however, that the Collateral Threshold for Party B shall be zero uponin the occurrence and during the continuanceevent of an Event of Default or a Potential Event of DefaultMaterial Adverse Change as defined in Part II hereof with respect to Party B; and provided further that, in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) theB. 🞏 The Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand. (a) Thethe amountset forth in the chart below under the heading “Collateral Threshold” opposite the lower of the Credit Rating for Party B on the relevant date of determination,and if such Credit Ratings shall not be equivalent, the lower Credit Rating shall govern, or (b) zero if on the relevant date of determination Party B does not havenone of the rating agencies specified below has a Credit Rating from the rating agency(ies) specified below or an Event of Default or a Potential Event of Defaultin effect with respect to Party B has occurred and is continuing; provided, however,or in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurancea Material Adverse Change as defined in Part II hereof with respect to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex onB: $__________ ( or after the occurrence of such Potential Event of Default,above) (or abovei) the(or above) $__________ $__________ ____ $__________ $__________ Below Below Below 🞏 The Collateral Threshold for Party B shall automatically increase frombe (a) the amount set forth in the chart above under the heading “Collateral Threshold” opposite the Credit Rating for Party B on the relevant date of determination, and if such Credit Ratings shall not be equivalent, the higher two Credit Ratings shall govern, or (b) zeroif on the relevant date of determination none of the rating agencies specified below has a Credit Rating in effect with respect toParty B or in theevent of a Material Adverse Change with respect to Party B. 🞏 The Collateral Threshold Amount and (ii)for Party B shall be relievedthe amount of its obligationthe Guaranty Agreement dated from Party B Guarantor, as amended from time to post Performance Assurance pursuant to such demandtime, but in no event shall Party B’s Collateral Threshold be greater than $ .:

Party B Collateral Threshold. 🗆 $ ; provideIf specified as applicable on the Cover Sheetd, however, that the Collateral Threshold for Party B shall be zero upon the occurrenceif at any time andfrom time to time during the continuanceterm ofthis Master Agreement (and notwithstanding whether an Event of Default or a Potential Eventhas occurred), the Early Termination Payment that would be owed to Party A plus Party B’s Independent Amount, if any, exceeds the Party B Collateral Threshold, then Party A, on any Business Day, may request that Party B provide Performance Assurance in an amount equal to the amount by which the Early Termination Payment plus Party B’s Independent Amount, if any, exceeds the Party B Collateral Threshold (rounding upwards for any fractional amount to the next Party B Rounding Amount) (“Party B Performance Assurance”), less any Party B Performance Assurance already posted with Party A. Such Party B Performance Assurance shall be delivered to Party A within three (3) Business Days of Defaultthe date of such request. On any Business Day (but no more frequently than weekly with respect toLetters of Credit and daily with respect to cash), Party B; and provided further that, inat its sole cost, may request that such Party B Performance Assurance be reduced correspondingly to the amount of such excess Termination Payment plus Party B’s Independent Amount, if any, (rounding upwards for any fractional amount to the next Party B Rounding Amount). In the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is requiredfails to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold forprovide Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand.the terms of this Article 6 within three (3a) The amount opposite the lower of the Credit Rating for Party B on the relevant date of determinatioBusiness Daysn, or (b) zero if on the relevant date of determination Party B does not have a Credit Rating from the rating agency(ies) specified below orthen an Event of Default or a Potential Event of Default with respectunder Article 8 shall be deemed to Party B hashave occurred and is continuing; provided, however, in the event that, and on the date that, Party B cures the Potential Event of Default on or priorA will be entitled to the date that Party B is required to post Performance Assurance to Party Aremedies set forth in Article 8 of this Master Agreement. For purposes of this Article 6.5(b), the calculation of the Early Termination Payment shall be calculated pursuant to a demand madeArticle 8.3 by Party Aas if all outstanding Transactions had been liquidated, and in addition thereto, shall include all amounts owed but not yet paid by Party B to Party A, whether or not such amounts are due, for performance already provided pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amountany and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demandall Transactions.:

Party B Collateral Threshold. 🗆 $ ; provideIf specified as applicable on the Cover Sheetd, however, that the Collateral Threshold for Party B shall be zero upon the occurrenceif at any time ( and during the continuance ofnotwithstanding whether an Event of Default or a Potential Eventhas occurred), the Early Termination Payment that would be owed to Party A plus Party B’s Independent Amount, if any, exceeds the Party B Collateral Threshold, then on any Business Day Party A may request that Party B provide Performance Assurance in an amount equal to the amount by which the Early Termination Payment plus Party B’s Independent Amount, if any, exceeds the Party B Collateral Threshold (rounding upwards for any fractional amount to the next Party B Rounding Amount) (“Party B Performance Assurance”), less any Party B Performance Assurance already posted with Party A. Such Party B Performance Assurance shall be delivered to Party A within three (3) Business Days of Defaultthe date of such request. On any Business Day (but no more frequently than weekly with respect toLetters of Credit and daily with respect to cash), Party B; and provided further that, inat its sole cost, may request that such Party B Performance Assurance be reduced to the amount of such excess Termination Payment plus Party B’s Independent Amount, if any, (rounding upwards for any fractional amount to the next Party B Rounding Amount). In the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is requiredfails to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold forprovide Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand.the terms of this Article 6 within three (3a) The amount opposite the lower of the Credit Rating for Party B on the relevant date of determinatioBusiness Daysn, or (b) zero if on the relevant date of determination Party B does not have a Credit Rating from the rating agency(ies) specified below orthen an Event of Default or a Potential Event of Default with respectunder Article 8 shall be deemed to Party B hashave occurred and is continuing; provided, however, in the event that, and on the date that, Party B cures the Potential Event of Default on or priorA will be entitled to the date that Party B is required to post Performance Assurance to Party Aremedies set forth in Article 8 of this Master Agreement. For purposes of this Article 6.5(b), the Early Termination Payment shall be calculated pursuant to a demand madeArticle 8.3 by Party Aas if all outstanding Transactions had been liquidated, and in addition shall include all amounts owed but not yet paid by Party B to Party A, whether or not such amounts are due, for performance already provided pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amountany and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demandall Transactions.: