Common use of Removal of Components Clause in Contracts

Removal of Components. (a) In the ordinary course of repairing, maintaining, preserving or testing the Leased Facility or any component thereof, Lessee shall have the right to remove or cause to be removed any component of such Leased Facility; provided, however, that: (i) Lessee shall cause any such component to be replaced by a replacement component; (ii) Lessee shall cause such replacement component to be free and clear of all Liens (other than Permitted Encumbrances) and in as good an operating condition as that of the component replaced and with a residual value, utility and remaining useful life at least equal to that of the component replaced (in each case, assuming that the replaced component was maintained in accordance with the terms of this Facility Lease); (iii) the use of such replacement component as part of the Leased Facility shall not, other than in a de minimis respect, diminish the Fair Market Value, utility, remaining useful life or residual value of the Leased Facility; and (iv) all Improvements shall be paid for in accordance with Article 8. Each component (other than an Obsolete Component) removed from the Leased Facility will remain subject to this Facility Lease, wherever located, until such time as such component is replaced by a replacement component which has been incorporated in the Leased Facility and which meets the requirements for replacement components specified in this Section 7.3(a). Lessee shall take all actions reasonably requested by Lessor to cause such removed component to remain subject to this Facility Lease. (b) Notwithstanding anything to the contrary contained in Section 7.3(a), Lessee shall not be required to replace a particular component if such component is obsolete and its removal without replacement could not reasonably be expected to diminish, other than in a de minimis respect, the residual value, utility or remaining useful life of the Leased Facility (“Obsolete Component”). (c) Immediately upon removal of an Obsolete Component or removal of any other component from the Leased Facility pursuant to Section 7.3(a) and the replacement component becoming incorporated in the Leased Facility in accordance with Section 7.3(a), and without further act and with no adjustment to the Rent, the Termination Value or the Fair Market Value, as the case may be: (i) the removed component shall no longer be subject to this Facility Lease; (ii) title to the removed component shall thereupon vest in Lessee or such other Person as shall be designated by Lessee, free and clear of all rights of Lessor; and (iii) in the case of any replacement component, title to the replacement component shall thereupon vest with Lessor and such replacement component shall (A) become subject to this Facility Lease and (B) be deemed a part of the Leased Facility for all purposes of this Facility Lease.

Appears in 3 contracts

Samples: Facility Lease Agreement (Madison Gas & Electric Co), Facility Lease Agreement (Madison Gas & Electric Co), Facility Lease Agreement (Mge Energy Inc)

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Removal of Components. (a) In the ordinary course of repairing, maintaining, preserving or testing the Leased Facility or any component thereof, Lessee shall have the right to remove or cause to be removed any component of such Leased Facility; provided, however, that: (i) Lessee shall cause any such component to be replaced by a replacement component; (ii) Lessee shall cause such replacement component to be free and clear of all Liens (other than Permitted Encumbrances) and in as good an operating condition as that of the component replaced and with a residual value, utility and remaining useful life at least equal to that of the component replaced (in each case, assuming that the replaced component was maintained in accordance with the terms of this Facility Lease); and (iii) the use of such replacement component as part of the Leased Facility shall not, other than in a de minimis respect, diminish the Fair Market Value, utility, remaining useful life or residual value of the Leased Facility; and (iv) all Improvements shall be paid for in accordance with Article 8. Each component (other than an Obsolete Component) removed from the Leased Facility will remain subject to this Facility Lease, wherever located, until such time as such component is replaced by a replacement component which has been incorporated in the Leased Facility and which meets the requirements for replacement components specified in this Section 7.3(a9.3(a). Lessee shall take all actions reasonably requested by Lessor to cause such removed component to remain subject to this Facility Lease. (b) Notwithstanding anything to the contrary contained in Section 7.3(a9.3(a), Lessee shall not be required to replace a particular component in accordance with Section 9.3(a) if such component is obsolete and its removal without replacement could not reasonably be expected to diminish, other than in a de minimis respect, the residual value, utility or remaining useful life of the Leased Facility ("Obsolete Component"). (c) Immediately upon removal of an Obsolete Component or removal of any other component from the Leased Facility pursuant to Section 7.3(a9.3(a) and the replacement component becoming incorporated in the Leased Facility in accordance with Section 7.3(a9.3(a), and without further act and with no adjustment to the Rent, the Termination Value or the Fair Market ValueValue Purchase Price, as the case may be: (i) the removed component shall no longer be subject to this Facility Lease; , (ii) title to the removed component shall thereupon vest in Lessee or such other Person as shall be designated by Lessee, free and clear of all rights of Lessor; , and (iii) in the case of any replacement component, title to the replacement component shall thereupon vest with Lessor and such replacement component shall (A) become subject to this Facility Lease and (B) be deemed a part of the Leased Facility for all purposes of this Facility Lease.

Appears in 2 contracts

Samples: Facility Lease Agreement (Wisconsin Electric Power Co), Facility Lease Agreement (Wisconsin Electric Power Co)

Removal of Components. (a) In the ordinary course of repairing, maintaining, preserving or testing the Leased Unit 1 Facility or any component thereof, Lessee shall have the right to remove or cause to be removed any component of such Leased Unit 1 Facility; provided, however, that: (i) Lessee shall cause any such component to be replaced by a replacement component; (ii) Lessee shall cause such replacement component to be free and clear of all Liens (other than Permitted Encumbrances) and in as good an operating condition as that of the component replaced and with a residual value, utility and remaining useful life at least equal to that of the component replaced (in each case, assuming that the replaced component was maintained in accordance with the terms of this Facility Lease); and (iii) the use of such replacement component as part of the Leased Unit 1 Facility shall not, other than in a de minimis respect, diminish the Fair Market Value, utility, remaining useful life or residual value of the Leased Unit 1 Facility; and (iv) all Improvements shall be paid for in accordance with Article 8. Each component (other than an Obsolete Component) removed from the Leased Unit 1 Facility will remain subject to this Facility Lease, wherever located, until such time as such component is replaced by a replacement component which has been incorporated in the Leased Unit 1 Facility and which meets the requirements for replacement components specified in this Section 7.3(a9.3(a). Lessee shall take all actions reasonably requested by Lessor to cause such removed component to remain subject to this Facility Lease. (b) Notwithstanding anything to the contrary contained in Section 7.3(a9.3(a), Lessee shall not be required to replace a particular component in accordance with Section 9.3(a) if such component is obsolete and its removal without replacement could not reasonably be expected to diminish, other than in a de minimis respect, the residual value, utility or remaining useful life of the Leased Unit 1 Facility (“Obsolete Component”). (c) Immediately upon removal of an Obsolete Component or removal of any other component from the Leased Unit 1 Facility pursuant to Section 7.3(a9.3(a) and the replacement component becoming incorporated in the Leased Unit 1 Facility in accordance with Section 7.3(a9.3(a), and without further act and with no adjustment to the Rent, the Termination Value or the Fair Market ValueValue Purchase Price, as the case may be: (i) the removed component shall no longer be subject to this Facility Lease; , (ii) title to the removed component shall thereupon vest in Lessee or such other Person as shall be designated by Lessee, free and clear of all rights of Lessor; , and (iii) in the case of any replacement component, title to the replacement component shall thereupon vest with Lessor and such replacement component shall (A) become subject to this Facility Lease and (B) be deemed a part of the Leased Unit 1 Facility for all purposes of this Facility Lease.

Appears in 1 contract

Samples: Facility Lease Agreement (Wisconsin Energy Corp)

Removal of Components. (a) In the ordinary course of repairing, maintaining, preserving or testing the Leased Unit 2 Facility or any component thereof, Lessee shall have the right to remove or cause to be removed any component of such Leased Unit 2 Facility; provided, however, that: (i) Lessee shall cause any such component to be replaced by a replacement component; (ii) Lessee shall cause such replacement component to be free and clear of all Liens (other than Permitted Encumbrances) and in as good an operating condition as that of the component replaced and with a residual value, utility and remaining useful life at least equal to that of the component replaced (in each case, assuming that the replaced component was maintained in accordance with the terms of this Facility Lease); and (iii) the use of such replacement component as part of the Leased Unit 2 Facility shall not, other than in a de minimis respect, diminish the Fair Market Value, utility, remaining useful life or residual value of the Leased Unit 2 Facility; and (iv) all Improvements shall be paid for in accordance with Article 8. Each component (other than an Obsolete Component) removed from the Leased Unit 2 Facility will remain subject to this Facility Lease, wherever located, until such time as such component is replaced by a replacement component which has been incorporated in the Leased Unit 2 Facility and which meets the requirements for replacement components specified in this Section 7.3(a9.3(a). Lessee shall take all actions reasonably requested by Lessor to cause such removed component to remain subject to this Facility Lease. (b) Notwithstanding anything to the contrary contained in Section 7.3(a9.3(a), Lessee shall not be required to replace a particular component in accordance with Section 9.3(a) if such component is obsolete and its removal without replacement could not reasonably be expected to diminish, other than in a de minimis respect, the residual value, utility or remaining useful life of the Leased Unit 2 Facility (“Obsolete Component”). (c) Immediately upon removal of an Obsolete Component or removal of any other component from the Leased Unit 2 Facility pursuant to Section 7.3(a9.3(a) and the replacement component becoming incorporated in the Leased Unit 2 Facility in accordance with Section 7.3(a9.3(a), and without further act and with no adjustment to the Rent, the Termination Value or the Fair Market ValueValue Purchase Price, as the case may be: (i) the removed component shall no longer be subject to this Facility Lease; , (ii) title to the removed component shall thereupon vest in Lessee or such other Person as shall be designated by Lessee, free and clear of all rights of Lessor; , and (iii) in the case of any replacement component, title to the replacement component shall thereupon vest with Lessor and such replacement component shall (A) become subject to this Facility Lease and (B) be deemed a part of the Leased Unit 2 Facility for all purposes of this Facility Lease.

Appears in 1 contract

Samples: Facility Lease Agreement (Wisconsin Energy Corp)

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Removal of Components. (a) In the ordinary course of repairing, maintaining, preserving servicing, repairing or testing the Leased Facility Property, or any component thereof, Lessee shall have the right right, at its own cost and expense, to remove or cause to be removed any component of such Leased Facilitythe Property; provided, however, that: that (i) Lessee shall cause any such component to be replaced by a replacement component; , (ii) Lessee shall cause such replacement component to be free and clear of all Liens (other than Permitted EncumbrancesLiens) and in as good an operating condition as that of the component replaced and with a residual value, utility and remaining useful life at least equal to that of the component replaced (in each case, assuming that the replaced component was maintained in accordance with the terms of this Facility Lease); , and (iii) the use of such replacement component as part of the Leased Facility Property shall not, other than in a de minimis respect, diminish the Fair Market Value, utility, utility or remaining useful life or residual value of the Leased FacilityFacility or Energy Assets (in each case taken as a whole); and (iv) all Improvements shall be paid for in accordance with Article 8. Each component (other than an Obsolete Component) removed from the Leased Facility will remain subject to this Facility Leaseprovided, wherever locatedfurther, until such time as such component is replaced by a replacement component which has been incorporated in the Leased Facility and which meets the requirements for replacement components specified in this Section 7.3(a). Lessee shall take all actions reasonably requested by Lessor to cause such removed component to remain subject to this Facility Lease. (b) Notwithstanding anything to the contrary contained in Section 7.3(a), that Lessee shall not be required to replace a particular component in accordance with this Section 7.3 if such component is obsolete and its removal without replacement could not reasonably be expected to diminish, other than in a de minimis respect, the residual value, utility or remaining useful life of the Leased Facility or the Energy Assets, in each case taken as a whole ("Obsolete Component") or otherwise have a material adverse effect on the operations of the Facility or the Energy Assets (as appropriate). Each component (other than an Obsolete Component) at any time removed from the Property shall remain subject to this Lease, wherever located, until such time as such component shall be replaced by a replacement component which has been incorporated in the Property and which meets the requirements for replacement components specified above, and Lessee shall take all actions, including the filing of financing statements, as reasonably requested by Lessor as a precaution to cause such removed component to remain subject to this Lease. (cb) Immediately upon (x) removal of an Obsolete Component or (y) removal of any other component (other than an Obsolete Component) from the Leased Facility Property pursuant to Section 7.3(a) and the replacement component becoming incorporated in the Leased Facility Property in accordance with Section 7.3(a), and without further act (and with no adjustment to the Basic Rent, Supplemental Rent or the Termination Value or the Fair Market Value, as the case may be: ), (i) the removed component shall no longer be subject to this Facility Lease; , (ii) title to the removed component shall thereupon vest in Lessee or such other Person as shall be designated by Lessee, free and clear of all rights of Lessor; , and (iii) in the case of any replacement component, title to the replacement component shall thereupon vest with Lessor and such replacement component shall (Ax) become subject to this Facility Lease and (By) be deemed a part of the Leased Facility Property for all purposes of this Facility Leasethe Operative Documents.

Appears in 1 contract

Samples: Lease Agreement (Weirton Steel Corp)

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