Common use of Priority Distributions Clause in Contracts

Priority Distributions. During each Fiscal Year within the Priority Period, if the Management Committee determines that the Company has cash available after payment of the Special Distribution, required operating expenses and liabilities of the Company, Reimbursable Member Expenses and Project Management Expenses, the Company shall distribute to Acadia Holdings cash in the amount of the Accumulated Priority Amount and the Priority Amount ("Priority Distributions"). To support the performance of Calpine Energy under the PPAs, Calpine Parent is providing three letters of credit for the benefit of Acadia Holdings (the "Calpine LCs"). If Acadia Holdings draws any Demand Amount (as defined in the applicable Calpine LC) under any Calpine LC, such Demand Amount shall be deemed to have been distributed by the Company to Acadia Holdings. If the stated amount of such Calpine LC is reinstated within five (5) Business Days after the date of payment of such Demand Amount, then (a) the amount paid shall be deemed a distribution to Acadia Holdings and shall be treated as a Priority Distribution hereunder and (b) the Accumulated Priority Amount and the Priority Amount otherwise owed to Acadia Holdings shall be reduced accordingly by the amount of the Demand Amount.