State Warranty. The State warrants to ETG, that for the duration of this Agreement, that it shall use best efforts to maintain and sustain the legal, economic, financial, social, tax, and customs conditions as they exist upon the effective date of this Agreement. ETG, its Subsidiaries, and Other Project Participants may, at any time, request the benefit of any new legal, economic, financial, tax, social or customs provision which is more favorable to it than the provisions of Applicable Legislation or of this Agreement, whether such new provisions result from (i) a legislative or regulatory development or (ii) from a regime which has been granted to another investor in the Yap State. However, this section shall not be interpreted as an obligation on behalf of the State to maintain certain laws, nor shall it be a guarantee that the State shall enact legislation for the sole purpose of maintaining conditions favorable to ETG, et al.
State Warranty. Through Product Sharing Agreements, states guarantee that foreign companies investing and taking on significant risks will not face le- gal obstacles to their authorized exploration, development, and production activities. This gives the companies a “monopoly” right over other companies and prevents them from su- ing to stop the activities from happening.
