Common use of Credit Requirements Clause in Contracts

Credit Requirements. Seller shall post security as follows: Development Security – $[To equal $105/kW of Guaranteed Capacity] Performance Security – $[ To equal $105/kW of Installed Capacity ] To secure its obligations under this PPA, Seller shall deliver the Development Security to Buyer within five (5) Business Days of the Effective Date. Development Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce Agreement: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start Date, Seller shall ensure that work performed in connection with construction of the Facility will be conducted using a project labor agreement, or similar agreement, providing for terms and conditions of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s), and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives pursuant to the Internal Revenue Service Requirements. Diverse Business Enterprises: Seller shall be required under the PPA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligations, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during the Delivery Term, Seller shall provide to Buyer a report listing all Diverse Business Enterprises that supplied goods or services to Seller during such period, including any certifications or other documentation of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such period.

Credit Requirements. Seller shall post security as follows: Development Security – $[To equal $105/kW of Guaranteed Storage Capacity] Performance Security – $[ [To equal $105/kW of Installed Capacity Storage Capacity] To secure its obligations under this PPAESA, Seller shall deliver the Development Security to Buyer within five (5) Business Days of the Effective Date. Development Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPAESA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce Agreement: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start Date, Seller shall ensure that work performed in connection with construction of the Facility will be conducted using a project labor agreement, or similar agreement, providing for terms and conditions of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s), and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives pursuant to the Internal Revenue Service Requirements. Diverse Business Enterprises: Seller shall be required under the PPA ESA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligations, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during the Delivery Term, Seller shall provide to Buyer a report listing all Diverse Business Enterprises that supplied goods or services to Seller during such period, including any certifications or other documentation of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such period. Supply Chain Code of Conduct: Buyer will not accept any proposals for storage facilities that rely on equipment or resources built with forced labor or that are non-compliant with Buyer’s Supply Chain Code of Conduct (see Policy 10). Consistent with the business advisory jointly issued by the U.S. Departments of State, Treasury, Commerce and Homeland Security on July 1, 2020, equipment or resources sourced from the Xinjiang region of China are presumed to involve forced labor. Seller must certify that it will not utilize such equipment or resources in connection with the construction, operation or maintenance of the Facility. Site Control: Seller shall maintain site control of the Facility throughout the Delivery Term.

Credit Requirements. Seller shall post security as follows: Development Security – $[To equal $105/kW of Guaranteed PV Capacity & Guaranteed Storage Capacity] Performance Security – $[ [To equal $105/kW of Installed PV Capacity & Installed Storage Capacity] To secure its obligations under this PPA, Seller shall deliver the Development Security to Buyer within five (5) Business Days of the Effective Date. Development Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce Agreement: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start Date, Seller shall ensure that work performed in connection with construction of the Facility will be conducted using a project labor agreement, or similar agreement, providing for terms and conditions of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s), and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives pursuant to the Internal Revenue Service Requirements. Diverse Business Enterprises: Seller shall be required under the PPA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligations, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during the Delivery Term, Seller shall provide to Buyer a report listing all Diverse Business Enterprises that supplied goods or services to Seller during such period, including any certifications or other documentation of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such period.

Credit Requirements. Seller shall post security as follows: Development Security – $[To equal $105/kW 90,000 per MW of Guaranteed Capacity] Contract Capacity Performance Security – $[ To equal $105/kW 105,000 per MW of Installed Contract Capacity ] To secure its obligations under this PPA, Seller shall deliver the Development Security to Buyer within five thirty (530) Business Days days of the Effective Date. Development Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce AgreementPrevailing Wage: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start DateIf Seller’s Facility is located in Contra Costa County, Seller shall ensure must agree to comply with the terms of that work performed certain Letter Agreement between MCE and IBEW Local 302, dated June 20, 2017, and attached project labor agreement (collectively, the “PLA”). The PLA applies to “Covered Work” (as defined therein) for solar photovoltaic and associated energy storage projects for which MCE is the power supply off-taker. If Seller’s Facility is located in connection MCE’s service territory, but outside Contra Costa County, Seller is required to enter into project labor agreements of similar scope and requirements with construction of participating unions for workforce hired. [If Seller’s Facility is located outside MCE’s service territory, Seller to describe whether the Facility will be conducted using constructed with union labor and/or will employ a project project-labor agreementagreement (PLA).] As a condition precedent to commencement of the Delivery Term, Seller must certify that it complied with the foregoing union labor requirements, and be able to demonstrate, upon request, compliance with this requirement via copies of executed PLAs or similar agreementagreements, providing for terms a certified payroll system and conditions of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide other documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s)requested by Buyer, and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives including pursuant to the Internal Revenue Service Requirementsan audit. Diverse Business EnterprisesDiversity Reporting: Seller shall be required under the PPA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligationsand Labor Practices questionnaire in MCE’s Offer Form, or a similar questionnaire, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during Responsible Procurement: Buyer will not accept any proposals for generating and/or storage facilities that rely on equipment or resources built with forced labor. Consistent with the Delivery Termbusiness advisory jointly issued by the U.S. Departments of State, Treasury, Commerce and Homeland Security on July 1, 2020, equipment or resources sourced from the Xinjiang region of China are presumed to involve forced labor. Seller shall provide to Buyer a report listing all Diverse Business Enterprises must certify that supplied goods it will not utilize such equipment or services to Seller during such periodresources in connection with the construction, including any certifications operation or other documentation maintenance of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such periodFacility.

Credit Requirements. The Seller shall post security as follows: Development Security – $[To equal 90/kW of Guaranteed Capacity Performance Security – $105/kW of Guaranteed Capacity] Performance Security – $[ To equal $105/kW of Installed Capacity ] To secure its obligations under this the PPA, Seller shall deliver the Development Security to Buyer within five thirty (530) Business Days days of the PPA Effective Date and shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Development Security and Performance Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce AgreementBuyer Pass Through Liability Agreement Seller, Buyer and Participating CCAs will enter into a Buyer Pass Through Liability Agreement that provides: Seller may pursue Participating CCAs for their proportional share of Buyer’s payment obligations. Seller waives the ability to collect any Damage Payment or Termination Payment that Buyer may owe under the PPA. Seller does not have recourse to a Participating CCA for another Participating CCA’s payment obligations. Participation Agreement Buyer and Participating CCAs will sign a Participation Agreement that: Sets forth the Participating CCAs and their proportional share of Buyer’s payment obligations; Requires each Participating CCA to step up to accept up to an additional 25% of its initial proportional share in the event another Participating CCA defaults; and Requires each Participating CCA to prepay to Buyer three (3) months of payments associated with their proportional share. Compliance with Laws: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation those related to employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start Datewage, Seller shall ensure that work performed in connection with construction non-discrimination and non-preference; conflict of the Facility will be conducted using a project labor agreement, or similar agreement, providing for terms interest; environmentally preferable procurement; single serving bottled water; gifts; and conditions disqualification of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s), and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives pursuant to the Internal Revenue Service Requirements. Diverse Business Enterprises: Seller shall be required under the PPA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligations, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during the Delivery Term, Seller shall provide to Buyer a report listing all Diverse Business Enterprises that supplied goods or services to Seller during such period, including any certifications or other documentation of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such periodformer employees.

Credit Requirements. Seller shall post security as follows: Development Security – $[To equal $105/kW 90,000 per MW of Guaranteed Capacity] Capacity Performance Security – $[ To equal $105/kW 105,000 per MW of Installed Guaranteed Capacity ] To secure its obligations under this PPA, Seller shall deliver the Development Security to Buyer within five thirty (530) Business Days days of the Effective Date. Development Security shall be in the form of cash or a Letter of Credit. To secure its obligations under this PPA, Seller shall deliver Performance Security to Buyer on or before the Commercial Operation Date. Within five (5) Business Days following any draw by Buyer on the Development Security or the Performance Security, Seller shall replenish the amount drawn such that the security is restored to the applicable amount. Workforce AgreementPrevailing Wage: Seller shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, including, without limitation employment discrimination laws and prevailing wage laws. Prior to the Guaranteed Construction Start DateIf Seller’s Facility is located in Contra Costa County, Seller shall ensure must agree to comply with the terms of that work performed certain Letter Agreement between MCE and IBEW Local 302, dated June 20, 2017, and attached project labor agreement (collectively, the “PLA”). The PLA applies to “Covered Work” (as defined therein) for solar photovoltaic projects for which MCE is the power supply off-taker. If Seller’s Facility is located in connection MCE’s service territory, but outside Contra Costa County, Seller is required to enter into project labor agreements of similar scope and requirements with construction of participating unions for workforce hired. [If Seller’s Facility is located outside MCE’s service territory, Seller to describe whether the Facility will be conducted using constructed with union labor and/or will employ a project project-labor agreementagreement (PLA).] As a condition precedent to commencement of the Delivery Term, Seller must certify that it complied with the foregoing union labor requirements, and be able to demonstrate, upon request, compliance with this requirement via copies of executed PLAs or similar agreementagreements, providing for terms a certified payroll system and conditions of employment with applicable labor organizations, and shall remain compliant with such agreement in accordance with the terms thereof. Seller shall provide other documentation reasonably satisfactory to Buyer demonstrating Seller’s compliance with such agreement(s)requested by Buyer, and Seller shall provide to Buyer copies of any reports, certifications or similar communications with the IRS regarding labor information applicable to Seller, its Affiliates or suppliers and vendors in connection with any obtaining or substantiating tax incentives including pursuant to the Internal Revenue Service Requirementsan audit. Diverse Business EnterprisesDiversity Reporting: Seller shall be required under the PPA to complete the Workforce Development or Supplier Diversity Reporting as part of its progress reporting obligationsand Labor Practices questionnaire in MCE’s Offer Form, or a similar questionnaire, and agrees to comply with similar regular reporting requirements related to diversity and labor practices. Semi-annually during Responsible Procurement: Buyer will not accept any proposals for facilities that rely on equipment or resources built with forced labor. Consistent with the Delivery Termbusiness advisory jointly issued by the U.S. Departments of State, Treasury, Commerce and Homeland Security on July 1, 2020, equipment or resources sourced from the Xinjiang region of China are presumed to involve forced labor. Seller shall provide to Buyer a report listing all Diverse Business Enterprises must certify that supplied goods it will not utilize such equipment or services to Seller during such periodresources in connection with the construction, including any certifications operation or other documentation maintenance of such Diverse Business Enterprises status as such and the aggregate amount paid to Diverse Business Enterprises during such periodFacility.