Unit Appraisal Clause Samples

Unit Appraisal. (a) No later than ninety (90) days and no earlier than one hundred twenty (120) days prior to the Lease Effective Date, Lessor shall submit to Lessee, with a copy to the PSCW, a written list of proposed Appraisers. Lessee shall select one (1) of the Appraisers from Lessor's list and give written notice thereof to Lessor and the PSCW. The PSCW shall either approve the Appraiser selected by Lessee or choose a different Appraiser from Lessor's list. The Appraiser selected in accordance with this Section 4.6(a) (the "Unit Appraiser") shall appraise Unit 2 (excluding the Site Improvements) in accordance with Section 4.6(b). (b) Within ninety (90) days of appointment, the Unit Appraiser shall deliver to Lessor and Lessee a written report, with a copy to the PSCW, in form and substance satisfactory to Lessor and the PSCW (the "Unit Appraisal Report"), which shall certify as to (i) the economic useful life (the "Economic Useful Life") of Unit 2 at the end of each of the Base Term and the First Renewal Term, (ii) the expected fair market value (the "Appraised FMV") of Unit 2 (excluding the Site Improvements) and the Transferred Assets at the end of each of the Base Term and the First Renewal Term; provided, however, that the Appraised FMV shall be determined without taking into account inflation or deflation occurring after the Lease Effective Date (including any inflation or deflation occurring during the Base Term or First Renewal Term) and (iii) the estimated demolition and removal costs expected to be incurred by or on behalf of Lessor at the end of Unit 2's Economic Useful Life (the "Demolition and Removal Costs").