BGS-RSCP Suppliers that meet certain criteria defined in Section 6.4 of the BGS-RSCP Supplier Master Agreement (“SMA”) will be granted an Independent Credit Threshold (“ICT”). The ICT is used by the BGS-RSCP Supplier to partially or fully cover the Independent Credit Requirement (“ICR”), which is calculated by multiplying the BGS-RSCP number of tranches by the Independent Credit Requirement per Tranche (“ICRT”). The ICRT is initially set at $2.4 million per tranche.  However, the ICRT declines in accordance with the schedule included as part of Appendix B to the BGS-RSCP SMA throughout the term of the supply period. For BGS-RSCP Suppliers who cannot meet the criteria defined in Section 6.4, the posting of cash or a letter of credit in an acceptable form for the entire aggregate ICR amounts under the BGS-RSCP SMA and any other BGS SMAs the Bidder holds with this EDC will be required at the time of the execution of this Agreement.
Furthermore, as described in Section 6.7 of the BGS-RSCP SMA, the Bidder may be required to post additional security to cover any calls for margin under the Total Exposure Amount ("TEA") calculation in the form of cash or a letter of credit.  The TEA reflects the Mark-to-Market exposure of the Bidder to a specific EDC arising under all BGS-RSCP SMAs that the Bidder holds with the EDC as well as the credit exposures under any BGS-CIEP SMA that the Bidder holds with this same EDC.

Please see Article 6 of the BGS-RSCP SMA for more information