Common use of Completion/Performance Security Clause in Contracts

Completion/Performance Security. The security contemplated by this Section 9 constitutes security for, but is not a limitation of, QS’s obligations hereunder and shall not be FPL’s exclusive remedy for QS’s failure to perform in accordance with this Agreement. 9.1 As security for the achievement of the Guaranteed Capacity Delivery Date and satisfactory performance of its obligations hereunder, the QS shall provide FPL either: (a) an unconditional, irrevocable, standby letter of credit(s) with an expiration date no earlier than the end of the first (1st) anniversary of the Capacity Delivery Date (or the next business day thereafter), issued by a U.S. commercial bank or the U.S. branch of a foreign bank having a Credit Rating of A- or higher by S&P or A3 or higher by Moody’s (a “Qualified Issuer”), in form and substance acceptable to FPL (including provisions (i) permitting partial and full draws and (ii) permitting FPL to draw in full if such letter of credit is not renewed or replaced as required by the terms hereof at least thirty (30) business days prior to its expiration date) (“Letter of Credit”); (b) a bond, issued by a financially sound Company acceptable to FPL and in a form and substance acceptable to FPL, (“Bond”); or (c) a cash collateral deposited with FPL (“Cash Collateral”) (any of (a), (b), or (c), the “Completion/Performance Security”). Completion/Performance Security shall be provided in the amount and by the date listed below: (a) $50.00 per kW (for the number of kW of Committed Capacity set forth in Section 5.1) to be delivered to FPL within five (5) business days of the Effective Date; and (b) $100.00 per kW (for the number of kW of Committed Capacity set forth in Section 5.1) to be delivered to FPL two years before the Guaranteed Capacity Delivery Date.

Completion/Performance Security. The security contemplated by this Section 9 constitutes security for, but is not a limitation of, QS’s obligations hereunder and shall not be FPLGULF POWER’s exclusive remedy for QS’s failure to perform in accordance with this Agreement. 9.1 As security for the achievement of the Guaranteed Capacity Delivery Date and satisfactory performance of its obligations hereunder, the QS shall provide FPL GULF POWER either: (a) an unconditional, irrevocable, standby letter of credit(s) with an expiration date no earlier than the end of the first (1st) anniversary of the Capacity Delivery Date (or the next business day thereafter), issued by a U.S. commercial bank or the U.S. branch of a foreign bank having a Credit Rating of A- or higher by S&P or A3 or higher by Moody’s (a “Qualified Issuer”), in form and substance acceptable to FPL GULF POWER (including provisions (i) permitting partial and full draws and (ii) permitting FPL GULF POWER to draw in full if such letter of credit is not renewed or replaced as required by the terms hereof at least thirty (30) business days prior to its expiration date) (“Letter of Credit”); (b) a bond, issued by a financially sound Company acceptable to FPL GULF POWER and in a form and substance acceptable to FPLGULF POWER, (“Bond”); or (c) a cash collateral deposited with FPL GULF POWER (“Cash Collateral”) (any of (a), (b), or (c), the “Completion/Performance Security”). Completion/Performance Security shall be provided in the amount and by the date listed below: (a) $50.00 per kW (for the number of kW of Committed Capacity set forth in Section 5.1) to be delivered to FPL GULF POWER within five (5) business days of the Effective Date; and (b) $100.00 per kW (for the number of kW of Committed Capacity set forth in Section 5.1) to be delivered to FPL two years before the Guaranteed Capacity Delivery Date.five