Common use of Right to Suspend on Failure to Pay Clause in Contracts

Right to Suspend on Failure to Pay. Subject to Section 9.5 below of the General Terms and Conditions, if any undisputed amount due hereunder remains unpaid for ninety (90) days after the due date, Gatherer shall have the right to suspend or discontinue services hereunder until any such past due amount is paid. Following any such ninety (90) day period, if Shipper remains in default, Gatherer may, in addition to requiring payment of all sums then due, require Shipper to, at Shipper’s option: (i) prepay an amount equal to Gatherer’s reasonable estimate of the fees Shipper would incur for two (2) Months of service hereunder; (ii) furnish an irrevocable letter of credit in a form acceptable to Gatherer in the amount of the required prepayment; or (iii) provide any other mutually acceptable form of security ((i), (ii) or (iii) being, as applicable, the “Default Security”). If Shipper makes timely payment of all undisputed amounts due under this Agreement for a period of one (1) year following the date that any Default Security is tendered, the Default Security shall be returned to Shipper. At such time as Shipper pays all undisputed amounts and, if applicable, provides Default Security, Gatherer shall immediately resume providing services hereunder.