Common use of Additional Contract Security Clause in Contracts

Additional Contract Security. Seller shall provide additional Contract Security in an amount equal to the product of the Uncompleted Offer Capacity (in MW) (less any Offer Capacity Reduction as defined in Section 15.07(b)) and twenty-thousand dollars ($20,000) on or before January 1, 2026. Every twelve (12) months thereafter, Seller shall provide incremental additional Contract Security in an amount equal to the product of the Uncompleted Offer Capacity (in MW) (less any Offer Capacity Reduction as defined in Section 15.07(b)) and ten-thousand dollars ($10,000), for amounts due on January 1, 2027 and twenty-five thousand dollars ($25,000) for amounts due on or after January 1, 2028, until such time as the Operational Installed Capacity equals or exceeds the product of 0.95 and the Offer Capacity (less any Offer Capacity Reduction as defined in Section 15.07(b)). If prior to the time additional Contract Security is due NYSERDA, in its sole discretion, confirms in writing that in the time period following Seller’s prior provision of Contract Security Seller has provided information to NYSERDA in a timely and responsive manner and has otherwise performed at a high standard, the amount of additional Contract Security required at that time shall be reduce by ten percent (10%).