Handback Condition; Developer Option Sample Clauses
The "Handback Condition; Developer Option" clause defines the requirements and procedures for returning an asset or project to its owner at the end of a contract or concession period, as well as any options the developer may have regarding this process. Typically, this clause outlines the standards the asset must meet upon handback, such as maintenance, repair, or operational criteria, and may specify timelines, inspection rights, or remedies if the condition is not met. It may also grant the developer certain options, such as extending the contract or purchasing the asset. The core function of this clause is to ensure the asset is returned in an agreed-upon condition, protecting the owner's interests and clarifying the developer's rights and obligations at the end of the agreement.
Handback Condition; Developer Option. 8.10.1.1 Subject to Sections 8.10.1.2 and 8.10.3.2, on the Termination Date Developer shall transfer the Facility, including all Upgrades, to TxDOT, at no charge to TxDOT, in the condition and meeting all of the requirements for Residual Life at Handback specified in the Handback Requirements.
8.10.1.2 For each Element of the Facility with a Required Residual Life equal to or less than 20 years and that has a Residual Life that is less than the Required Residual Life, Developer shall have the option, in lieu of performing the Work necessary to ensure that the Residual Life at Handback of the Element equals or exceeds the Required Residual Life for the Element, to pay for Developer’s pro-rata share of future Renewal Work that will be necessary for TxDOT to perform after the end of the Term. Developer shall pay such amount by making the deposits in the Handback Requirements Reserve in accordance with Section 2(a) of Exhibit 12, for transfer and release to TxDOT at the end of the Term under Section 8.11.4.
1. Developer shall deliver written notice to TxDOT prior to the first day of the fifth full calendar year before the end of the Term setting forth its election for each applicable Element of the Facility. Failure by the Developer to deliver such written notice to TxDOT by such deadline or failure of the Developer to include any Element in the written notice shall be deemed an election by ▇▇▇▇▇▇▇▇▇ to perform all Work necessary to ensure that the Residual Life at Handback of the Element meets or exceeds the Required Residual Life for the Element.