Replacements and Substitutions Clause Samples

Replacements and Substitutions. (a) In addition to the rights of Lessee under Section 8.4, Lessee shall have the option at any time to replace any Item or Items of Equipment (a “Replaced Item” or “Replaced Items”) with a substitute Item or Items of Equipment (a “Replacement Item” or “Replacement Items”), subject to the following conditions: (i) No Lease Default or Lease Event of Default shall have occurred and be continuing and Lessee shall represent in writing to Agent to such effect; (ii) The Replacement Item or Replacement Items shall be located in a location permitted by Section 8.1 and Lessee shall represent in writing to Agent to such effect; (iii) The Replacement Item or Replacement Items shall have a function and utility comparable to or better than the Replaced Item or Replaced Items and Lessee shall represent in writing to Agent to such effect; (iv) The Replacement Item or Replacement Items shall have a value, useful life, and operating condition equal to or greater than the Replaced Item or Replaced Items and Lessee shall represent in writing to Agent to such effect, which shall be confirmed by an appraisal reasonably satisfactory in scope and form to Lessor and Agent and performed by an appraiser selected by the Lessor and Agent and approved by Lessee (such approval not to be unreasonably withheld) for each Replaced Item being substituted pursuant to this Section 8.7 in which the Purchase Price, or for each series of substitutions pursuant to this Section 8.7 in which the aggregate Purchase Price, is equal to or greater than $5,000,000; (v) The aggregate Purchase Price of all Replaced Items leased hereunder and substituted pursuant to this Section 8.7 from and after the Delivery Date to and including the date of substitution and after giving effect thereto, shall not exceed 25% of the aggregate Purchase Price of all Items of Equipment subject to this Lease as of the Delivery Date; and (vi) Prior to the date of any such substitution, Lessee shall replace such Replaced Item or Replaced Items by complying with the applicable terms of Section 9.1 to the same extent as if a Casualty or a series of Casualties had occurred with respect to such Replaced Item or Replaced Items, and the Lessor shall transfer title to the Replaced Item or Replaced Items to Lessee in the same manner as provided in the applicable provisions of Section 9.1. Items of Equipment replaced pursuant to Section 9.1(b) following a Casualty shall not be included for purposes of the calculations set forth above. (b)...