Common use of Expansion Project Clause in Contracts

Expansion Project. Each of the parties hereto acknowledges that the Lessee expects to add the Expansion Project to the Project in 2006 or 2007. The Expansion Project is expected to increase the capability of the Project to generate additional power. The Expansion Project (i) will constitute a Severable Modification and an Optional Modification which, unless such Expansion Project is financed with Additional Senior Notes and/or an Additional Equity Investment pursuant to and in accordance with the terms and conditions of, the Operative Documents, will be financed by ONI (in which case the Expansion Project will not be subject to the Head Lease or the Project Lease), (ii) will not be undertaken unless and until a new power purchase agreement is entered into with respect to such additional capacity of the Expansion Project, (iii) will not be undertaken if the Improvement Conditions have not been satisfied and (iv) will not be undertaken if the implementation of the Expansion Project would reduce by more than a de minimis amount the rights and benefits of the Owner Lessor, and so long as the Lien of the Indenture shall not have been terminated and fully discharged, the Indenture Trustee, with respect to the Project. To the extent that additional resource rights are needed for the Expansion Project, and PGV-II is willing to provide such resource rights, the parties agree to reasonably cooperate with the Lessee in securing an assignment by PGV-II back to the Lessee of such portion of the rights in the Geothermal Resource assigned to PGV-II pursuant to the Resource Sublease Partial Assignment as may be required for the Expansion Project.