Common use of Payment of Insurance Proceeds Clause in Contracts

Payment of Insurance Proceeds. The property damage proceeds under the builder’s risk policy shall be paid as follows with respect to any one occurrence: (i) the first Five Million U.S. Dollars (U.S.$5,000,000) of amounts paid under the builder’s risk insurance policy for property damage shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the loss or damage to the Facility; and (ii) any amounts in excess of Five Million U.S. Dollars (U.S.$5,000,000) for property damage shall (x) be paid by the insurance carrier directly to the Collateral Agent, and Owner shall pay such insurance proceeds to Contractor in accordance with Monthly Invoices submitted to Owner for the completion by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan prepared by Contractor and approved by Owner, the Administrative Agent, and the Independent Engineer and (y), provided that the conditions set forth in clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for the first Five Million U.S. Dollars (U.S.$5,000,000) of builder’s risk proceeds received by the Collateral Agent, Owner shall have five (5) Business Days after the Collateral Agent’s receipt of such proceeds to pay Contractor; (b) for the Forty Million U.S. Dollars (U.S.$40,000,000) in builder’s risk proceeds received by the Collateral Agent in excess of the amounts referred to in clause (a) above, Owner shall have fifteen (15) Business Days after the Collateral Agent’s receipt of such proceeds to pay Contractor; and (c) and for any builder’s risk proceeds received by the Collateral Agent in excess of the amounts referred to in clause (b), Owner shall have thirty (30) Business Days after the Collateral Agent’s receipt of such proceeds to pay Contractor. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any builder’s risk insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the Facility, except to the extent Contractor has incurred costs in excess of the Five Million U.S. Dollars (U.S.$5,000,000) of builder’s risk proceeds paid directly to Contractor for safety, protection and salvage. For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1A.9(g)(ii)(y) (a), (b) or (c) through no fault of Contractor, and Contractor satisfies all other conditions in Section 1A.9(g)(ii) for the payment of builder’s risk proceeds received by the Collateral Agent, then Contractor shall be entitled to relief to the extent permitted under Section 6.2A.7 of the Agreement.

Payment of Insurance Proceeds. The property damage proceeds under the builder’s risk policy shall be paid as follows with respect to any one occurrence: (i) the first Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of amounts paid under the builder’s risk insurance policy for property damage to the Liquefaction Facility shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the loss or damage to the Liquefaction Facility (and upon notice to proceed under subsequent EPC Agreements, damage to the Liquefaction Facility); and (ii) any amounts in excess of Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) for property damage to the Liquefaction Facility shall (x) be paid by the insurance carrier directly to the Collateral Agent (or if there is no Collateral Agent, a mutually agreed upon escrow agent), and Owner shall pay such insurance proceeds to Contractor in accordance with Monthly Invoices submitted to Owner for the completion by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan prepared by Contractor and approved by Owner, the Administrative Agent, and the Independent Engineer and (y), provided that the conditions set forth in clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for the first Five Million U.S. Dollars (U.S.$5,000,000) of the builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent) for the Liquefaction Facility, Owner shall have five (5) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; (b) for the Forty Million U.S. Dollars (U.S.$40,000,000) in builder’s risk proceeds received by the Collateral Agent (or escrow agent) for the Liquefaction Facility (and upon notice to proceed under subsequent EPC Agreements, for the Liquefaction Facility) in excess of the amounts referred to in clause (a) above, Owner shall have fifteen (15) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; and (c) and for any builder’s risk proceeds received by the Collateral Agent (or escrow agent) in excess of the amounts referred to in clause (b), Owner shall have thirty (30) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any builder’s risk insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the Liquefaction Facility (and upon notice to proceed under subsequent EPC Agreements, the Liquefaction Facility), except to the extent Contractor has incurred costs in excess of the Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of the builder’s risk proceeds paid directly to Contractor for safety, protection and salvagesalvage for the Liquefaction Facility (and upon notice to proceed under subsequent EPC Agreements, for the Liquefaction Facility). For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1A.9(g)(ii)(y) (a), (b) or (c) through no fault of Contractor, and Contractor satisfies all other conditions in Section 1A.9(g)(ii) for the payment of builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent), then Contractor shall be entitled to relief to the extent permitted under Section 6.2A.7 of the Agreement.

Payment of Insurance Proceeds. The property damage proceeds under the builder’s risk policy shall be paid as follows with respect to any one occurrence: (i) the first Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of amounts paid under the builder’s risk insurance policy for property damage to the Liquefaction Facility shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the loss or damage to the Liquefaction Facility; and (ii) any amounts in excess of Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) for property damage to the Liquefaction Facility shall (x) be paid by the insurance carrier directly to the Collateral Agent (or if there is no Collateral Agent, a mutually agreed upon escrow agent), and Owner shall pay such insurance proceeds to Contractor in accordance with Monthly Invoices submitted to Owner for the completion by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan prepared by Contractor and approved by Owner, the Administrative Agent, and the Independent Engineer and (y), provided that the conditions set forth in clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for the first Five Million U.S. Dollars (U.S.$5,000,000) of the builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent) for the Liquefaction Facility, Owner shall have five (5) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; (b) for the Forty Million U.S. Dollars (U.S.$40,000,000) in builder’s risk proceeds received by the Collateral Agent (or escrow agent) for the Liquefaction Facility in excess of the amounts referred to in clause (a) above, Owner shall have fifteen (15) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; and (c) and for any builder’s risk proceeds received by the Collateral Agent (or escrow agent) in excess of the amounts referred to in clause (b), Owner shall have thirty (30) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any builder’s risk insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the Liquefaction Facility, except to the extent Contractor has incurred costs in excess of the Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of the builder’s risk proceeds paid directly to Contractor for safety, protection and salvagesalvage for the Liquefaction Facility. For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1A.9(g)(ii)(y) (a), (b) or (c) through no fault of Contractor, and Contractor satisfies all other conditions in Section 1A.9(g)(ii) for the payment of builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent), then Contractor shall be entitled to relief to the extent permitted under Section 6.2A.7 of the Agreement.

Payment of Insurance Proceeds. The property damage proceeds under the builder’s risk policy shall be paid as follows with respect to any one occurrence: (i) the first Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of amounts paid under the builder’s risk insurance policy for property damage to the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, property damage to the Liquefaction Facility) shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the loss or damage to the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, damage to the Liquefaction Facility); and (ii) any amounts in excess of Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) for property damage to the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, property damage to the Liquefaction Facility) shall (x) be paid by the insurance carrier directly to the Collateral Agent (or if there is no Collateral Agent, a mutually agreed upon escrow agent), and Owner shall pay such insurance proceeds to Contractor in accordance with Monthly Invoices submitted to Owner for the completion by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan prepared by Contractor and approved by Owner, the Administrative Agent, and the Independent Engineer and (y), provided that the conditions set forth in clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for the first Five Million U.S. Dollars (U.S.$5,000,000) of the builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent) for the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, for the Liquefaction Facility), Owner shall have five (5) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; (b) for the Forty Million U.S. Dollars (U.S.$40,000,000) in builder’s risk proceeds received by the Collateral Agent (or escrow agent) for the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, for the Liquefaction Facility) in excess of the amounts referred to in clause (a) above, Owner shall have fifteen (15) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor; and (c) and for any builder’s risk proceeds received by the Collateral Agent (or escrow agent) in excess of the amounts referred to in clause (b), Owner shall have thirty (30) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of such proceeds to pay Contractor. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any builder’s risk insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, the Liquefaction Facility), except to the extent Contractor has incurred costs in excess of the Five Ten Million U.S. Dollars (U.S.$5,000,000U.S.$10,000,000) of the builder’s risk proceeds paid directly to Contractor for safety, protection and salvagesalvage for the Stage 1 Liquefaction Facility (and upon notice to proceed under the Stage 2 EPC Agreement, for the Liquefaction Facility). For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1A.9(g)(ii)(y) (a), (b) or (c) through no fault of Contractor, and Contractor satisfies all other conditions in Section 1A.9(g)(ii) for the payment of builder’s risk proceeds received by the Collateral AgentAgent (or escrow agent), then Contractor shall be entitled to relief to the extent permitted under Section 6.2A.7 of the Agreement.