Hardy Storage Company, LLC

Original Volume No. 1

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Effective Date: 07/06/2007, Docket: RP07-480-000, Status: Effective

Original Sheet No. 93A Original Sheet No. 93A : Effective

 

GENERAL TERMS AND CONDITIONS (Cont’d)

 

(3) A Customer will be deemed creditworthy if:

 

(i) its long-term unsecured debt securities

are rated at least BBB by Standard & Poor’s

Corporation (“S&P”) or Baa2 by Moody’s Investor

Service (“Moody’s); and

 

(ii) Customer’s short-term and long-term

outlook opinion is Stable or Positive from S&P or

Moody’s; and

 

(iii) the net present value of the sum of

reservation fees, utilization fees, and any other

associated fee for the contract term is less than 3%

of Customer’s tangible net worth. As used herein,

“tangible net worth” shall be the sum of the capital

stock, paid-in capital in excess of par or stated

value, and other free and clear equity reserve

accounts less goodwill, patents, unamortized loan

costs or restructuring costs and other intangible

assets. If Customer is rated by multiple agencies,

the lower rating applies. A Customer that is not

rated by S&P or Moody’s may use its parent’s rating

if a guarantee acceptable to Seller is provided. If

the Customer has multiple Service Agreements with

Seller, then the total of all those Service

Agreements shall be considered in determining

creditworthiness.

 

Seller reserves the right to determine in its reasonable discretion

that a Customer who requests new service is not creditworthy to receive

that service on the basis that Customer has outstanding payments due on

invoices rendered by Seller on current or past Service Agreements and

Customer has defaulted on those payments per the terms of the General

Terms and Conditions; provided, however, this provision shall not

affect amounts disputed by Customer in good faith. This Section shall

apply solely to the Customer that is the contract holder.

 

(4) If Customer does not meet the criteria

described above, then Customer may have the Seller evaluate its

creditworthiness based upon the level of service requested. That

credit appraisal shall be based upon Seller’s evaluation of the

following information and credit criteria:

 

(i) S&P and Moody’s opinions, watch alerts

and rating actions will be considered in determining

creditworthiness.