Common use of Capacity Reduction Clause in Contracts

Capacity Reduction. If a Force Majeure Event occurs that reduces the Peak Demand Reduction of the System and Licensee determines the System cannot, within the period allowed in Section 16.4 (Licensee Early Termination Rights), be restored to a capacity sufficient to satisfy its obligations under this Agreement, Licensee shall give Trustees written notice of such determination as soon as possible. If Licensee demonstrates to Trustees’ reasonable satisfaction that the System can, within the period provided in Section 16.4 of this Agreement, be repaired and restored such that the System can deliver at least fifty percent (50%) of the applicable Peak Demand Reduction for the remaining Term, then Licensee may elect to prosecute such repairs as necessary to deliver at least 50% of the applicable Peak kW demand reduction for the remaining Term. Licensee must notify Trustees of such election in writing, which notice must specify the procedures and dates for the planned repairs. If Licensee so notifies Trustees of such election, the Parties agree to amend the provisions in the Agreement relating to or derived directly from EEP and the Termination Fee to reflect the capacity of the System that remains operable after Licensees’ repairs pursuant to this section. No other terms or conditions in the Agreement shall be changed and the Term shall not be extended.

Capacity Reduction. If a Force Majeure Event occurs that reduces the Peak Demand Reduction of the System and Licensee determines the System cannot, within the period allowed in Section 16.4 (Licensee Early Termination Rights), be restored to a capacity sufficient to satisfy its obligations under this Agreement, Licensee shall give Trustees written notice of such determination as soon as possible. If Licensee demonstrates to Trustees’ reasonable satisfaction that the System can, within the period provided in Section 16.4 of this Agreement, be repaired and restored such that the System can deliver at least fifty percent (50%) of the applicable Peak Demand Reduction for the remaining Term, then Licensee may elect to prosecute such repairs as necessary to deliver at least 50% of the applicable Peak kW demand reduction for the remaining Term. Licensee must notify Trustees of such election in writing, which notice must specify the procedures and dates for the planned repairs. If Licensee so notifies Trustees of such election, the Parties agree to amend the provisions in the Agreement relating to or derived directly from EEP and the Termination Fee to reflect the capacity of the System that remains operable after Licensees’ repairs pursuant to this section. No other terms or conditions in the Agreement shall be changed and the Term shall not be extended.extended.‌