FIT CONTRACT Sample Clauses
A FIT (Firm, Fixed-Price, or Lump Sum) contract is a type of agreement where the contractor agrees to complete a specified scope of work for a predetermined, fixed price. Under this arrangement, the contractor assumes the risk of cost overruns, as any additional expenses beyond the agreed price are generally not reimbursed by the client. This type of contract is commonly used in construction and engineering projects where the scope and requirements are well-defined. The core practical function of a FIT contract is to provide cost certainty for the client and incentivize the contractor to control costs and work efficiently.
FIT CONTRACT. (1) The Company acknowledges the Existing Facility is subject to the FIT Contract. It shall be the responsibility of the Company to secure any amendments, if such are required, to the FIT Contract to permit the Plant to be constructed.
(2) The Company acknowledges that pursuant to the FIT Contract, the Environment Attributes related to the Existing Facility are the property of the IESO and the Company has no right to such Environmental Attributes, as such is defined in the FIT Contract. After 5:00 pm on the fiftieth (50th) Business Day following the Effective Date, the Company shall, at its sole cost except where the FIT Contract provides otherwise, track and provide information required by the FIT Contract for dealing with the Environmental Attributes. All right, title and interest in and to all Environmental Attributes arising in connection with the Plant, the Existing Facility, the Property or any of the activities or facilities or their operation as contemplated herein or as may occur from time to time in the future during the term of this Agreement, other than the Environmental Attributes that are the property of the IESO under the FIT Contract, belong to and are owned by the Company and each of the Municipalities hereby transfers, assigns and forever quit claims those Environmental Attributes to the Company.
(3) The Municipalities shall provide reasonable assistance to the Company to secure any amendments to the FIT Contract necessary for the Plant.
(4) The Company acknowledges that the FIT Contract will remain in the name of the Municipalities. After 5:00 pm on the fiftieth (501 h) Business Day following the Effective Date, the Municipalities are entitled to ten percent (10%) of the revenues and any other economic benefit from the FIT Contract and the Company is entitled ninety percent (90%) of the revenues and any other economic benefit from the FIT Contract. The Municipalities shall hold the said ninety percent (90%) of the revenues and any other economic benefit from the FIT Contract in trust for and on behalf of the Company and may offset any portion thereof consisting of money against any monies owed by the Company to the Municipalities if they have provided notice of such to the Company in sufficient time to prevent any reasonable likelihood of payment of the monies so offset by the Company..
(5) The Company shall operate the Existing Facility in compliance with the FIT Contract and Applicable Laws and shall use commercially reasonable efforts...