Annual Supplemental Payment. As long as the Executive is an Employee, the Company shall make a payment in cash to the Executive equal to the Supplemental Annual Amount (as defined below), less any required withholding of income or employment taxes or other authorized deductions or amounts applicable to payments made to Employees of the Company, after the end of each Plan Year at such time as the Company distributes Net Income and Net Proceeds to the other Participants pursuant to Section 5.3 of the Plan. The “Supplemental Annual Amount” for any Plan Year shall mean the amount, if any, by which (a) the average of (i) the amount of the Company’s distributions of Net Income and Net Proceeds to the Company’s Senior Vice President pursuant to Section 5.3 of the Plan for that Plan Year and (ii) the amount of the Company’s distributions of Net Income and Net Proceeds to the Company’s Chief Financial Officer pursuant to Section 5.3 of the Plan for that Plan Year exceeds (b) the amount of the Company’s distributions of Net Income and Net Proceeds to the Executive pursuant to Section 5.3 of the Plan for that Plan Year.
Annual Supplemental Payment. The Applicant covenants that the annual $1,400.00/MW revenue share imposed under the County’s Solar Revenue Share Ordinance will be supplemented by an annual supplemental payment (“Supplemental Payment”). The amount of the Supplemental Payment due from the Applicant to the County will be calculated based on the annual $1,400.00/MW revenue share and will increase at a rate of 1.75% per annum, which 1.75% annual increase will be compounded annually. Each annual Supplemental Payment shall be due on or before the 5th day of December. Any annual Supplemental Payment remitted after December 5 shall accrue the same penalty and interest imposed by the County on delinquent real estate taxes. EXAMPLE: In year one of operation of the Solar Facility, the Applicant pays no Supplemental Amount in addition to the annual $1,400.00/MW revenue share; in year two of operation of the Solar Facility, the Applicant will pay a Supplemental Payment of $24.50/MW in addition to the annual $1,400.00/MW revenue share ($1,400.00 x 1.0175 = $1,424.50 - $1,400.00 = $24.50); in year three of operation of the Solar Facility, the Applicant will pay a Supplemental Payment of $49.42/MW in addition to the annual $1,400.00/MW revenue share ($1,424.50 year two total payment x 1.0175 = $1,449.42 - $1,400.00 = $49.42); etc. The parties covenant that the annual Supplemental Payment is fixed at 1.75% per year, so that if the Virginia legislature hereafter provides for an annual increase to the $1,400.00/MW revenue share which is greater than, or less than, 1.75% per year, that legislative enactment will not affect the 1.75% annual adjustment which is provided for herein.
Annual Supplemental Payment. The parties acknowledge that state law and County’s revenue share ordinance each provide for a base annual $1,400 per MW of nameplate capacity of the Solar Facility revenue share payment (the “Base Year Revenue Share Payment”). State law and County ordinance also provide for an increase in that amount of 10% on each fifth anniversary of the date the first payment was due. Notwithstanding state law and notwithstanding County ordinance, the parties have negotiated an alternative arrangement pertaining to revenue share payments, as follows: The parties agree that the Base Year Revenue Share Payment due in the initial year of the Project shall increase annually by 1.75% per year (each, a “Supplemental Payment”), and not by 10% on each fifth anniversary of the first payment date. Each Supplemental Payment will be due and payable on the fifth day of December of each year. Each Supplemental Payment remitted after December 5 shall accrue the same penalty and interest imposed by County on delinquent real estate taxes. For the avoidance of doubt, the schedule of anticipated Supplemental Payments due hereunder are set forth on the schedule attached hereto as Exhibit D. The parties covenant that the Supplemental Payments shall be calculated as shown on Exhibit D, notwithstanding any subsequent change in state law. As a result, if the Virginia legislature hereafter provides for a change in the $1,400/MW revenue share payment due under state law, regardless of whether that changes increases, or decreases, the $1,400/MW annual revenue share payment, the annual amounts due from Applicant to County shall be those shown on Exhibit D (as may be modified to reflect the final Solar Facility nameplate capacity).
