Common use of Security for System Removal Clause in Contracts

Security for System Removal. Twelve (12) months prior to the expiration of the Term, Licensee shall provide Trustees with an estimate of the cost to remove the System and restore the Site and Licensed Area in accordance with the Section 13.1. Licensee and Trustees shall then meet and confer within thirty (30) calendar days after such estimate is provided to resolve any concerns regarding such removal and the amount of the estimated cost, and a revised estimate taking those concerns into account shall then constitute the final restoration cost estimate. Licensee shall then either provide a performance bond covering such final restoration cost estimate or establish a cash escrow account with an acceptable financial institution subject to approval of Trustees of the escrow instructions for accessing the funds into which a portion of payments under the Agreement necessary to equal the estimate of the cost to remove the System and restore the Site and Licensed Area in accordance with the Section 13.1 during the remainder of the Term shall be deposited by Trustees for amounts otherwise due to Licensee for Electricity delivered to Trustees until the escrow reaches the final restoration cost estimate. The escrow account shall serve as the security for the restoration of the Site, and such funds shall be released to Licensee when the Site and Licensed Area restoration are accepted by Trustees. In event that Licensee fails to fulfill its obligations under Section 13.1, Trustees shall have the right to all the funds in the escrow account for purposes of removing the System and restoring the Licensed Area and Site. Interest on the escrow account shall be retained in the escrow account for the benefit of whichever Party is entitled to the funds in the escrow account

Security for System Removal. Twelve No less than three (123) months years prior to the expiration of the Term, Licensee shall provide Trustees the Judicial Council with an estimate of the estimated cost to remove the System and restore the Site and Licensed Area in accordance with the Section 13.1section 11.1. Licensee and Trustees the Judicial Council shall then meet and confer within thirty (30) calendar days after such estimate estimated cost is provided to resolve any concerns regarding such removal and the amount of the estimated cost. If necessary, and a revised estimate after taking those concerns into account account, the estimated cost will be revised which shall then constitute the final restoration estimated cost estimateto restore the Licensed Area. Within thirty (30) days of agreeing on the final estimated cost of restoration, Licensee shall then notify the Judicial Council in writing that it will either (i) provide a payment and performance bond bonds covering such final restoration estimated cost estimate or (ii) establish a cash escrow account with an acceptable financial institution subject to approval of Trustees the Judicial Council of the escrow instructions for accessing the funds account with an acceptable financial institution into which a portion of payments under the Agreement necessary to equal the estimate of the cost to remove the System and restore the Site and Licensed Area in accordance with the Section 13.1 during the remainder of the Term SPPA shall be deposited by Trustees for amounts otherwise due the Judicial Council in an amount equal to Licensee for Electricity delivered to Trustees five percent (5%) of the estimated cost of such restoration until the balance in such escrow account reaches the final restoration estimated cost estimateof restoration. The escrow account shall serve as the security for the restoration of the SiteLicensed Area, and such funds shall be released to Licensee when the Site and Licensed Area restoration are accepted by Trusteeshas been restored as provided in section 11.1. In the event that Licensee fails to fulfill its obligations under Section 13.1section 11.1, Trustees the Judicial Council shall have the right to all either make claim on the payment and performance bonds or apply the funds in the escrow account as necessary for the purposes of removing the System and restoring the Licensed Area Area. The remaining balance in the escrow account, if any, shall be released to Licensee upon removal of the System and Siterestoration of the Licensed Area. Interest on the escrow account shall be retained in the escrow account for the benefit of whichever Party is entitled to the funds in the escrow account. In the event the Judicial Council purchases the System upon termination and Licensee is not in default under this SLA, the balance of the escrow account shall be paid to Licensee upon the Judicial Council’s purchase. 29