Common use of Additional Releases Clause in Contracts

Additional Releases. (a) Within three (3) business days of the Bankruptcy Court issuing an order approving the terms of the Amendment, MESC shall deliver to the Southern Parties releases, substantially in the form attached hereto as Attachment A, by MESC, MESH, the Taxable Bond Indenture Trustee, the Tax Exempt Bond Trustee, the Collateral Agent for the Senior Debt, Franklin Advisors, Inc. and CS First Boston, in favor of the Southern Parties (such releases, the "Releases of Southern Parties"). The Releases of Southern Parties shall be effective upon the Amendment Effective Date. (b) Within three business days of the Bankruptcy Court issuing an order approving the terms of the Amendment, SERI shall deliver to MESC, MESH, the Taxable Bond Indenture Trustee, the Tax Exempt Bond Indenture Trustee, the Collateral Agent, Franklin Advisors, Inc. and CS First Boston (collectively, the "MESC/Bondholder Parties") a release, substantially in the form attached hereto as Attachment B, by the Southern Parties in favor of the MESC/Bondholder Parties (such release, the "Releases of MESC/Bondholder Parties"). The Releases of MESC/Bondholder Parties shall be effective upon the Amendment Effective Date. After the Releases of MESC/Bondholder Parties become effective, SEI and SERI hereby acknowledge and agree that they do not have and will not assert any claims against MESC or MESH in the bankruptcy proceeding (except claims arising out of or under the terms of the Development Agreement, as amended by this Amendment, the MESC O&M Agreement, or the LC Procurement Agreement). (c) The changes made to the terms of the Development Agreement by this Amendment do not affect the validity of the releases delivered to Southern, SERI and SEI under the terms of Article XI of the Development Agreement prior to its amendment by this Amendment. MESH and MESC acknowledge and agree that (i) SEI and SERI have satisfied their obligations under Section 4.3 and Section 4.5(b) of the Development Agreement as those sections were in effect prior to the Amendment Effective Date and (ii) the Releases are valid and enforceable according to their terms.