Common use of Early Buyout Clause in Contracts

Early Buyout. Facility Operator may satisfy the entire royalty obligation to the Energy Commission without a pre-payment penalty, as an alternative to annual Net Royalties and Net Revenues payments under Paragraph B. If an amount equal to one and a half (1.5) times the amount of funds paid by the Energy Commission under the Agreement is paid to the Energy Commission in a single year within five (5) years of the Agreement’s end date, then Facility Operator will have no continuing obligations under Paragraph B of this Exhibit.