Common use of Removal of Leased Equipment Clause in Contracts

Removal of Leased Equipment. The Issuer shall not be under any obligation to renew, repair or replace any inadequate, obsolete, worn out, unsuitable, undesirable, inappropriate or unnecessary Leased Equipment to the extent any Leased Equipment exists at the Project. If the Lessee in its sole discretion determines that any such items of Leased Equipment have become inadequate, obsolete, worn out, unsuitable, undesirable, inappropriate or unnecessary for its purposes at such time, the Lessee may remove such items from the Building and the Leased Land and (on behalf of the Issuer) sell, trade-in or otherwise dispose of them (as a whole or in part) without any responsibility or accountability to the Issuer or the Trustee therefor, provided that the Lessee shall either: (a) substitute (either by direct payment of the costs thereof or by advancing to the Issuer the moneys necessary therefor) and install anywhere in the Building or on the Leased Land other machinery, equipment or related property having similar utility (but not necessarily having the same function or value) in the operation of the Building as a modern industrial facility (provided such removal and substitution shall not impair operating unity), all of which substituted machinery, equipment or related property shall be free of all liens and encumbrances (other than Permitted Exceptions) but shall become a part of the Leased Equipment; or (b) not make any such substitution and installation, provided (i) that in the case of the sale of any such machinery, equipment or related property to anyone other than itself or in the case of the scrapping thereof, the Lessee shall pay into the Bond Fund the proceeds from such sale or the scrap value thereof, as the case may be, (ii) that in the case of the trade-in of such machinery, equipment or related property for other machinery, equipment or related property not to be installed in the Building or on the Leased Land, the Lessee shall pay into the Bond Fund the amount of the credit received by it in such trade-in, and (iii) that in the case of the sale of any such machinery, equipment or related property to the Lessee or in the case of any other disposition thereof, the Lessee shall pay into the Bond Fund an amount equal to the original cost thereof less depreciation at rates calculated in accordance with generally accepted accounting principles. The removal from the Project of any portion of the Leased Equipment pursuant to the provisions of this Section shall not entitle the Lessee to any diminution in or postponement or abatement of the amount of the rents payable under Section 4.2 hereof. The Lessee shall report to the Trustee and the Board of Assessors of the County each such removal, substitution, sale, trade-in or other disposition of Leased Equipment and shall pay to the Trustee such amounts as are required by the provisions of the preceding subsection (b) of this Section to be paid into the Bond Fund promptly after the sale, trade-in or other disposition requiring such payment; provided, however, that no such payment or report need be made until the amount with respect to items not replaced on account of all such sales, trade-ins or other dispositions and not previously paid aggregates at least $2,000,000. The Lessee shall not remove or permit the removal of any item of Leased Equipment except in accordance with the provisions of this Section. The Lessee shall deliver to the Issuer appropriate documents, including, but not limited to bills of sale, conveying to the Issuer title to any machinery, equipment or related property installed or placed in the Building or on the Leased Land pursuant to this Section, and upon request of the Lessee, the Issuer shall deliver and cause or direct the Trustee to deliver to the Lessee appropriate documents conveying to the Lessee title to any property removed from the Building or the Leased Land pursuant to this Section and releasing the same from the lien of the Indenture and canceling any security interest with respect thereto. The Lessee shall take or cause to be taken such action, if any, as may be necessary to perfect a security interest with respect to any property placed in the Building or on the Leased Land pursuant to this Section.

Removal of Leased Equipment. The Issuer shall not be under any obligation to renew, repair repair, or replace any inadequate, obsolete, worn worn-out, unsuitable, undesirable, inappropriate or unnecessary Leased Equipment to Equipment. In any instance where the extent any Leased Equipment exists at the Project. If the Lessee Company in its sole sound discretion determines that any such items of Leased Equipment have become inadequate, obsolete, worn worn-out, unsuitable, undesirable, inappropriate or unnecessary for its purposes at such timeunnecessary, the Lessee Company may remove such items of Leased Equipment from the Building Buildings and the Leased Land Real Property and (on behalf of the Issuer) sell, trade-in in, exchange, or otherwise dispose of them (as a whole or in part) without any responsibility or accountability to the Issuer or the Bond Trustee therefor, provided that the Lessee shall eitherCompany shall: (a) substitute Substitute (either by direct payment of the costs thereof or by advancing to the Issuer the moneys funds necessary therefor) and install anywhere in the Building Buildings or on the Leased Land Real Property other machinery, machinery or equipment having equal or related property having similar greater utility (but not necessarily having the same function or valuefunction) in the operation of the Building Buildings as a modern industrial manufacturing facility (provided such removal and substitution shall not impair the operating unityunity of the remaining property), all of which substituted machinery, machinery or equipment or related property shall be free of all liens and encumbrances (other than Permitted ExceptionsEncumbrances) but shall become a part of the Leased Equipment; or (b) not Not make any such substitution and installationinstallation unless, provided (i) that in the case of the sale of any such machinery, machinery or equipment or related property to anyone other than itself or in the case of the scrapping thereof, the Lessee Company shall pay into the Bond Debt Service Fund the proceeds from such sale or the scrap value thereof, as the case may be, (ii) that in the case of the trade-in of any such machinery, machinery or equipment or related property for other machinery, machinery or equipment or related property not to be installed in the Building Buildings or on the Leased LandReal Property, the Lessee Company shall pay into the Bond Debt Service Fund the amount of the credit received by it in such trade-in, and (iii) that in the case of the sale of any such machinery, machinery or equipment or related property to the Lessee Company or in the case of any other disposition thereof, thereof the Lessee Company shall pay into the Bond Debt Service Fund an amount equal to the original cost thereof less depreciation at rates calculated in accordance with generally accepted accounting principlespractice; provided, however, that no such payment into the Debt Service Fund need be made until the amount to be paid into the Debt Service Fund on account of all such dispositions not previously reported aggregates at least $100,000 in any calendar year; provided further, that the Company may not fail to make any such substitution and installation if such failure would impair the operating unity of the remaining property. The removal from the Project of any portion of the Leased Equipment pursuant to the provisions of this Section shall not entitle the Lessee Company to any abatement or diminution in or postponement or abatement of the amount of the rents payable under Section 4.2 hereof5.3. The Lessee shall Company will promptly report to the Bond Trustee and the Board of Assessors of the County each such removal, substitution, sale, trade-in or and other disposition of Leased Equipment and shall will pay to the Bond Trustee such amounts amounts, if any, as are required by the provisions provision of the preceding subsection (b) of this Section to be paid into the Bond Debt Service Fund promptly after the sale, trade-in in, scrapping, or other disposition requiring such payment; provided, however, that no such payment or report need be made until the amount with respect to items not replaced on account of all such sales, trade-ins or other dispositions and not previously paid aggregates at least $2,000,000. The Lessee shall not remove or permit the removal of any item of Leased Equipment except in accordance with the provisions of this Section. The Lessee shall deliver to the Issuer appropriate documents, including, but not limited to bills of sale, conveying to the Issuer title to any machinery, equipment or related property installed or placed in the Building or on the Leased Land pursuant to this Section, and upon request of the Lessee, the Issuer shall deliver and cause or direct the Trustee to deliver to the Lessee appropriate documents conveying to the Lessee title to any property removed from the Building or the Leased Land pursuant to this Section and releasing the same from the lien of the Indenture and canceling any security interest with respect thereto. The Lessee shall take or cause to be taken such action, if any, as may be necessary to perfect a security interest with respect to any property placed in the Building or on the Leased Land pursuant to this Section.

Removal of Leased Equipment. The Issuer shall not be under any obligation to renew, repair repair, or replace any inadequate, obsolete, worn worn-out, unsuitable, undesirable, inappropriate or unnecessary Leased Equipment to the extent Equipment. In any Leased Equipment exists at the Project. If the Lessee instance where Company in its sole sound discretion determines that any such items of Leased Equipment have become inadequate, obsolete, worn worn-out, unsuitable, undesirable, inappropriate or unnecessary for its purposes at such timeunnecessary, the Lessee Company may remove such items of Leased Equipment from the Building Buildings and the Leased Land and (on behalf of the Issuer) sell, trade-in in, exchange, or otherwise dispose of them (as a whole or in part) without any responsibility or accountability to the Issuer or the Trustee therefor, provided that the Lessee shall eitherCompany shall: (a) substitute Substitute (either by direct payment of the costs thereof or by advancing to the Issuer the moneys funds necessary therefor) and install anywhere in the Building Buildings or on the Leased Land other machinery, machinery or equipment having equal or related property having similar greater utility (but not necessarily having the same function or valuefunction) in the operation of the Building Buildings as a modern industrial manufacturing facility (provided such removal and substitution shall not impair the operating unity)unity of the remaining property) , all of which substituted machinery, machinery or equipment or related property shall be free of all liens and encumbrances (other than Permitted ExceptionsEncumbrances) but shall become a part of the Leased Equipment provided, however, during the first three (3) years commencing from and after April 27, 1995, the Company may substitute Equipment (as defined in the Indenture) , or any other equipment leased by the Company from any lessor other than the Issuer in place of any Leased Equipment (collectively, the “Replacement Equipment”) removed from the Mortgaged Property, which Replacement Equipment shall not be or be deemed to be part of the Leased Equipment; or (b) not Not make any such substitution and installationinstallation unless, provided (i) that in the case of the sale of any such machinery, machinery or equipment or related property to anyone other than itself or in the case of the scrapping thereof, the Lessee Company shall pay into the Bond Fund the proceeds from such sale or the scrap value thereof, as the case may be, (ii) that in the case of the trade-in of any such machinery, machinery or equipment or related property for other machinery, machinery or equipment or related property not to be installed in the Building Buildings or on the Leased Land, the Lessee Company shall pay into the Bond Fund the amount of the credit received by it in such trade-in, and (iii) that in the case of the sale of any such machinery, machinery or equipment or related property to the Lessee Company or in the case of any other disposition thereof, the Lessee thereof Company shall pay into the Bond Fund an amount equal to the original cost thereof less depreciation at rates calculated in accordance with generally accepted accounting principlespractice; provided, however, that no such payment into the Bond Fund need be made until the amount to be paid into the Bond Fund on account of all such dispositions not previously reported aggregates at least $100,000 in any calendar year; provided further, that Company may not fail to make any such substitution and installation if such failure would impair the operating unity of the remaining property. The removal from the Project Mortgaged Property of any portion of the Leased Equipment pursuant to the provisions of this Section shall not entitle the Lessee Company to any abatement or diminution in or postponement or abatement of the amount of the rents payable under Section 4.2 5.3 hereof. The Lessee shall Company will promptly report to the Trustee and the Board of Assessors of the County each in writing such removal, substitution, sale, trade-in or and other disposition of Leased Equipment and shall will pay to the Trustee such amounts amounts, if any, as are required by the provisions provision of the preceding subsection (b) of this Section to be paid into the Bond Fund promptly after the sale, trade-in in, scrapping, or other disposition requiring such payment; provided, however, that no such payment or report need be made until the amount with respect to items not replaced be paid into the Bond Fund on account of all such sales, trade-ins or other dispositions and not previously paid disposition aggregates at least $2,000,000. The Lessee shall not remove or permit the removal of 100,000 in any item of Leased Equipment except in accordance with the provisions of this Section. The Lessee shall deliver to the Issuer appropriate documents, including, but not limited to bills of sale, conveying to the Issuer title to any machinery, equipment or related property installed or placed in the Building or on the Leased Land pursuant to this Section, and upon request of the Lessee, the Issuer shall deliver and cause or direct the Trustee to deliver to the Lessee appropriate documents conveying to the Lessee title to any property removed from the Building or the Leased Land pursuant to this Section and releasing the same from the lien of the Indenture and canceling any security interest with respect thereto. The Lessee shall take or cause to be taken such action, if any, as may be necessary to perfect a security interest with respect to any property placed in the Building or on the Leased Land pursuant to this Sectioncalendar year.

Removal of Leased Equipment. The Issuer shall not be under any obligation to renew, repair or replace any inadequate, obsolete, worn out, unsuitable, undesirable, inappropriate or unnecessary Leased Equipment to the extent Equipment. In any Leased Equipment exists at the Project. If instance where the Lessee in its sole discretion determines that any such items of Leased Equipment have become inadequate, obsolete, worn out, unsuitable, undesirable, inappropriate or unnecessary for its their purposes at such time, the Lessee may remove such items from the Building and the of Leased Land Equipment and (on behalf of the Issuer) sell, trade-in trade in, exchange or otherwise dispose of them (as a whole or in part) without any responsibility or accountability to the Issuer or the Trustee therefor, provided that the Lessee shall either: (a) substitute (either by direct payment of the costs thereof certify that such removal or by advancing to the Issuer the moneys necessary therefor) and install anywhere in the Building or on the Leased Land other machinery, equipment or related property having similar utility (but substitution shall not necessarily having the same function or value) in impair the operation of the Building as a modern industrial facility (provided Project. At the option of the Lessee, at any time prior to the Completion Date, the Lessee may pay the proceeds of any such removal and substitution shall not impair operating unity)sale, all trade-in or other disposition of which substituted machinery, equipment or related property shall be free such items of all liens and encumbrances (other than Permitted Exceptions) but Leased Equipment to the Trustee with written instructions to deposit such moneys into the Project Fund whereupon such moneys shall become a part of the Leased Equipment; or (b) not make any such substitution Project Fund and installation, provided (i) that used in the case of the sale of any such machinery, equipment or related property to anyone other than itself or manner set forth in the case of the scrapping thereof, the Lessee shall pay into the Bond Fund the proceeds from such sale or the scrap value thereof, as the case may be, (ii) that in the case of the trade-in of such machinery, equipment or related property for other machinery, equipment or related property not to be installed in the Building or on the Leased Land, the Lessee shall pay into the Bond Fund the amount of the credit received by it in such trade-in, and (iii) that in the case of the sale of any such machinery, equipment or related property to the Lessee or in the case of any other disposition thereof, the Lessee shall pay into the Bond Fund an amount equal to the original cost thereof less depreciation at rates calculated in accordance with generally accepted accounting principlesArticle IV hereof. The removal from the Project of any portion of the Leased Equipment pursuant to the provisions of this Section shall not entitle the Lessee to any abatement or diminution in or postponement or abatement of the amount of the rents payable under Section 4.2 5.3 hereof. The Lessee shall report to Upon the Trustee and the Board of Assessors of the County each such removal, substitution, sale, trade-in or other disposition of Leased Equipment and shall pay to the Trustee such amounts as are required by the provisions of the preceding subsection (b) of this Section to be paid into the Bond Fund promptly after the sale, trade-in or other disposition requiring such payment; provided, however, that no such payment or report need be made until the amount with respect to items not replaced on account of all such sales, trade-ins or other dispositions and not previously paid aggregates at least $2,000,000. The Lessee shall not remove or permit the removal of any item of Leased Equipment except in accordance with the provisions of this Section. The Lessee shall deliver to the Issuer appropriate documents, including, but not limited to bills of sale, conveying to the Issuer title to any machinery, equipment or related property installed or placed in the Building or on the Leased Land pursuant to this Section, and upon request of the Lessee, the Issuer shall deliver and cause or direct the Trustee to deliver to the Lessee an Amendment to Lease Agreement in substantially the form of Exhibit “E” hereto or other appropriate documents conveying to the Lessee title to any property removed from the Building or the Leased Land Project pursuant to this Section 6.2 and releasing the same from the lien provisions of this Lease. The preceding provisions of this Section 6.2 shall apply only so long as any part of the Indenture principal of or the interest on any of the Bonds remains unpaid. After full payment of the principal of and canceling any security the interest with respect thereto. The on the Bonds, neither the Issuer nor the Lessee shall take be under any obligation to renew, repair or cause to be taken replace any of the Leased Equipment that may become inadequate, obsolete, worn out, unsuitable, undesirable or unnecessary in the operation of the Project, and after such actionfull payment the Lessee may, if anyin its sole discretion any item of the Leased Equipment has become inadequate, as may be necessary to perfect a security interest with respect to any property placed obsolete, worn out, unsuitable, undesirable or unnecessary in the Building operation of the Project, remove such item of Leased Equipment from the Project and (on behalf of the Issuer) sell, trade in, exchange or on otherwise dispose of it, without any responsibility or accountability to the Issuer therefor and without being required to substitute and install in the Project other equipment in substitution therefor, and may retain any money or other consideration received by it upon any disposition of any such item of Leased Land pursuant to this SectionEquipment.