Common use of The Bond Clause in Contracts

The Bond. Surety hereby unconditionally, absolutely, and irrevocably guarantees to ERCOT and its successors and assigns the full punctual payment and performance by the Principal of all of the Principal’s payment obligations to ERCOT under the Standard Form Agreement and/or ERCOT Protocols (the “Obligations” or “Obligation”) in an aggregate amount that is not greater than Amount of this Bond. As used in this Surety Bond, the term Obligations or Obligation means, collectively, the following: (a) any and all indebtedness, liabilities and sums of money now or hereafter due and owing by Principal to ERCOT pursuant to, or arising under, the Standard Form Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, including (without limitation) all scheduling, operating, planning, reliability and settlement policies, rules, guidelines and procedures established from time to time by ERCOT; (b) any and all interest and out-of-pocket expenses (including reasonable attorneys’ fees) now or hereafter due and owing by Principal pursuant to the Standard Form Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, in each instance whether or not allowed under any Debtor Relief Law (including all post-petition interest accruing after the commencement of any bankruptcy or insolvency proceeding by or against Principal, whether or not allowed in such proceeding), and all other amounts that would be part of the Obligations but for the operation of Debtor Relief Laws; (c) all assessments and other amounts required to be paid by Principal to ERCOT in order to maintain the Standard Form Agreement and the ability to conduct business with ERCOT notwithstanding the continuing right of Principal to dispute, contest or pursue rights of setoff of such assessments and other amounts pursuant to the alternative dispute resolution provisions of the ERCOT Protocols; and (d) all reasonable costs, expenses and fees, including, without limitation, court costs and attorneys’ fees, arising in connection with the collection of any or all amounts, indebtedness, obligations and liabilities of Principal to ERCOT described in clauses (a) through (c) above.

The Bond. Surety hereby unconditionally, absolutely, and irrevocably guarantees to ERCOT and its successors and assigns the full punctual payment and performance by the Principal of all of the Principal’s payment obligations to ERCOT under the Standard Form Agreement and/or ERCOT Protocols (the “Obligations” or “Obligation”) in an aggregate amount that is not greater than Amount of this Bond). As used in this Surety Bond, the term Obligations or Obligation means, collectively, the following: (a) any and all indebtedness, liabilities and sums of money now or hereafter due and owing by Principal to ERCOT pursuant to, or arising under, the Standard Form Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, including (without limitation) all scheduling, operating, planning, reliability and settlement policies, rules, guidelines and procedures established from time to time by ERCOT; (b) any and all interest and out-of-pocket expenses (including reasonable attorneys’ fees) now or hereafter due and owing by Principal pursuant to the Standard Form Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, in each instance whether or not allowed under any Debtor Relief Law (including all post-petition interest accruing after the commencement of any bankruptcy or insolvency proceeding by or against Principal, whether or not allowed in such proceeding), and all other amounts that would be part of the Obligations but for the operation of Debtor Relief Laws; (c) all assessments and other amounts required to be paid by Principal to ERCOT in order to maintain the Standard Form Agreement and the ability to conduct business with ERCOT notwithstanding the continuing right of Principal to dispute, contest or pursue rights of setoff of such assessments and other amounts pursuant to the alternative dispute resolution provisions of the ERCOT Protocols; and (d) all reasonable costs, expenses and fees, including, without limitation, court costs and attorneys’ fees, arising in connection with the collection of any or all amounts, indebtedness, obligations and liabilities of Principal to ERCOT described in clauses (a) through (c) above.