Common use of Surety Bonds; Lessee to Pursue Remedies Against Contractors Clause in Contracts

Surety Bonds; Lessee to Pursue Remedies Against Contractors. and Sub-Contractors and Their Sureties. Lessee shall secure from the Vendor under each Vendor Agreement and any successor, assignee or replacement thereto, directly employed by Lessee in connection with the acquisition, construction, installation, improvement or equipping of the Equipment from the proceeds of this Agreement, a Surety Bond executed by a surety company authorized to do business in the State, having a financial strength rating by A.M. Best Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor as a co-obligee in a sum equal to the entire amount to become payable under each Vendor Agreement. Each bond shall be conditioned on the completion of the work in accordance with the plans and specifications for the Equipment and upon payment of all claims of subcontractors and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promptly upon receipt thereof by Xxxxxx. Any proceeds from a Surety Bond (“Surety Bond Proceeds”) shall be applied in accordance with such Surety Bond to the payment and performance of the Vendor’s obligations in accordance with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, then first to amounts due to Lessor under this Agreement pursuant to Section 4.05 hereof, and any remaining amounts shall be payable to Lessee. In the event of a material default of any Vendor under any Vendor Agreement in connection with the acquisition, construction, maintenance and/or servicing of the Equipment or in the event of a material breach of warranty with respect to any material workmanship or performance guaranty with respect to the Equipment, Lessee will promptly proceed to exhaust its remedies against the Vendor in default, as applicable (although all such remedies shall be exercised by Lessee, the order of exercising remedies may be prioritized in the most efficient manner). Lessee shall advise Lessor of the steps it intends to take in connection with any such default. Any amounts received by Lessee in respect of damages, refunds and adjustments or otherwise in connection with the foregoing (“Vendor Proceeds”) shall be paid to Lessor and applied against Xxxxxx’s obligations hereunder pursuant to the prepayment provisions in Section 10.01(b), unless otherwise approved in writing by Lessor.

Surety Bonds; Lessee to Pursue Remedies Against Contractors. and Sub-Sub- Contractors and Their Sureties. Lessee shall secure from the Vendor under each Vendor Agreement and any successor, assignee or replacement thereto, directly employed by Lessee in connection with the acquisition, construction, installation, improvement or equipping of the Equipment from the proceeds of this AgreementEquipment, a payment and performance bond (“Surety Bond Bond”) executed by a surety company authorized to do business in the State, having a financial strength rating by A.M. Best Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor as a co-co- obligee in a sum equal to the entire amount to become payable under each Vendor Agreement. Each bond shall be conditioned on the completion of the work in accordance with the plans and specifications for the Equipment and upon payment of all claims of subcontractors and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promptly upon receipt thereof by XxxxxxLessee. Any proceeds from a Surety Bond (“Surety Bond Proceeds”) shall be applied in accordance with such Surety Bond to the payment and performance of the Vendor’s obligations in accordance with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, then first to amounts due to Lessor under this Agreement pursuant to Section 4.05 hereofAgreement, and any remaining amounts shall be payable to Lessee. In the event of a material default of any Vendor under any Vendor Agreement in connection with the acquisition, construction, maintenance and/or servicing of the Equipment or in the event of a material breach of warranty with respect to any material workmanship or performance guaranty with respect to the Equipment, Lessee will promptly proceed to exhaust its remedies against the Vendor in default, as applicable (although all such remedies shall be exercised by Lessee, the order of exercising remedies may be prioritized in the most efficient manner). Lessee shall advise Lessor of the steps it intends to take in connection with any such default. Any amounts received by Lessee in respect of damages, refunds and adjustments or otherwise in connection with the foregoing (“Vendor Proceeds”) shall be paid to Lessor and applied against XxxxxxLessee’s obligations hereunder pursuant to the prepayment provisions in Section 10.01(b), unless otherwise approved in writing by Lessorhereunder.

Surety Bonds; Lessee to Pursue Remedies Against Contractors. and Sub-Contractors and Their Sureties. Lessee shall secure from the Vendor under each Vendor Agreement and any successor, assignee or replacement thereto, directly employed by Lessee in connection with the acquisition, construction, installation, improvement or equipping of the Equipment from the proceeds of this AgreementEquipment, a payment and performance bond (“Surety Bond Bond”) executed by a surety company authorized to do business in the State, having a financial strength rating by A.M. Best Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor as a co-obligee in a sum equal to the entire amount to become payable under each Vendor Agreement. Each bond shall be conditioned on the completion of the work in accordance with the plans and specifications for the Equipment and upon payment of all claims of subcontractors and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promptly upon receipt thereof by Xxxxxx. Any proceeds from a Surety Bond (“Surety Bond Proceeds”) shall be applied in accordance with such Surety Bond to the payment and performance of the Vendor’s obligations in accordance with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, then first to amounts due to Lessor under this Agreement pursuant to Section 4.05 hereofAgreement, and any remaining amounts shall be payable to Lessee. In the event of a material default of by any Vendor under any Vendor Agreement in connection with the acquisition, construction, maintenance and/or servicing of the Equipment or in the event of a material breach of warranty with respect to any material workmanship or performance guaranty with respect to the Equipment, Lessee will promptly proceed to exhaust its remedies against the Vendor in default, as applicable (although all such remedies shall be exercised by Lessee, the order of exercising remedies may be prioritized in the most efficient manner). Lessee shall advise Lessor of the steps it intends to take in connection with any such default. Any amounts received by Lessee in respect of damages, refunds and refunds, adjustments or otherwise in connection with the foregoing (“Vendor Proceeds”) shall be paid to Lessor and applied against Xxxxxx’s obligations hereunder pursuant to the prepayment provisions in Section 10.01(b), unless otherwise approved in writing by Lessorhereunder.

Surety Bonds; Lessee to Pursue Remedies Against Contractors. and Sub-Contractors and Their Sureties. Lessee shall secure from the Vendor under each Vendor Agreement and any successor, assignee or replacement thereto, directly employed by Lessee in connection with the acquisition, construction, installation, improvement or equipping of the Equipment from the proceeds of this AgreementEquipment, a Surety Bond executed by a surety company authorized to do business in the State, having a financial strength rating by A.M. Best Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor Xxxxxx as a co-obligee in a sum equal to the entire amount to become payable under each Vendor Agreement. Each bond Surety Bond shall be conditioned on the completion of the work in accordance with the plans and specifications for the Equipment and upon payment of all claims of subcontractors and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promptly upon receipt thereof by Xxxxxx. Any proceeds from a Surety Bond (“Surety Bond Proceeds”) shall be applied in accordance with such Surety Bond to the payment and performance of the Vendor’s obligations in accordance with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, then first to amounts due to Lessor under this Agreement pursuant to Section 4.05 hereofAgreement, and any remaining amounts shall be payable to Lessee. In the event of a material default of any Vendor under any Vendor Agreement in connection with the acquisition, construction, maintenance and/or servicing of the Equipment or in the event of a material breach of warranty with respect to any material workmanship or performance guaranty with respect to the Equipment, Lessee will promptly proceed to exhaust its remedies against the Vendor in default, as applicable (although all such remedies shall be exercised by Lessee, the order of exercising remedies may be prioritized in the most efficient manner). Lessee shall advise Lessor of the steps it intends to take in connection with any such default. Any amounts received by Lessee in respect of damages, refunds and adjustments or otherwise in connection with the foregoing (“Vendor Proceeds”) shall be paid to Lessor and applied against Xxxxxx’s obligations hereunder pursuant to the prepayment provisions in Section 10.01(b), unless otherwise approved in writing by Lessorhereunder.

Surety Bonds; Lessee to Pursue Remedies Against Contractors. and Sub-Sub- Contractors and Their Sureties. Lessee shall secure from the Vendor under each Vendor Agreement and any successor, assignee or replacement thereto, directly employed by Lessee in connection with the acquisition, construction, installation, improvement or equipping of the Equipment from the proceeds of this Agreementunder any Lease, a payment and performance bond (a “Surety Bond Bond”) executed by a surety company authorized to do business in the State, having a financial strength rating by A.M. Best Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor as a co-obligee in a sum equal to the entire amount to become payable under each Vendor Agreement. Each bond shall be conditioned on the completion of the work in accordance with the plans and specifications for the Equipment and upon payment of all claims of subcontractors and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promptly upon receipt thereof by XxxxxxLessee. Any proceeds from a Surety Bond (“Surety Bond Proceeds”) shall be applied in accordance with such Surety Bond to the payment and performance of the Vendor’s obligations in accordance with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, then first to amounts due to Lessor under this Agreement pursuant to Section 4.05 hereofAgreement, and any remaining amounts shall be payable to Lessee. In the event of a material default of any Vendor under any Vendor Agreement in connection with the acquisition, construction, maintenance and/or servicing of the Equipment under any Lease or in the event of a material breach of warranty with respect to any material workmanship or performance guaranty with respect to the EquipmentEquipment under any Lease, Lessee will promptly proceed to exhaust its remedies against the Vendor in default, as applicable (although all to the extent such exhaustion of remedies is financially reasonable, which determination shall be exercised made by Lesseethe Lessee with the consent of the Lessor, the order of exercising remedies may which consent shall not be prioritized in the most efficient manner)unreasonably withheld. Lessee shall advise Lessor of the steps it intends to take in connection with any such default. Any amounts received by Lessee in respect of damages, refunds and adjustments or otherwise in connection with the foregoing (“Vendor Proceeds”) shall be paid to Lessor and applied against XxxxxxLessee’s obligations hereunder pursuant under the applicable Lease in the event that Lessee is in arrears in its payment obligations to the prepayment provisions in Section 10.01(b), unless otherwise approved in writing by Lessor.