Common use of Effect of Step-In Undertaking Clause in Contracts

Effect of Step-In Undertaking. During any Step-in Period, the Material Project Contractor will continue to observe and perform its duties and obligations under the Material Contract and will only be entitled to exercise its rights of termination under the Material Contract: (a) by reference to a default under the Material Contract arising during the Step-in Period (other than to the extent that a Project Co Insolvency Event constitutes such a default) provided that no event of default by Project Co under the Project Agreement will entitle the Material Project Contractor to exercise such rights of termination during the Step-in Period; (b) if the Authority fails to pay when due any amount owed to the Material Project Contractor or fails to perform or discharge when falling due for performance or discharge any obligation under the Step-in Undertaking; or (c) if such rights of termination arise in circumstances where there is no default under the Material Contract by the Authority or the Material Project Contractor.

Effect of Step-In Undertaking. During any Step-in Period, the Material Project Contractor Design-Builder will continue to observe and perform its duties and obligations under the Material Contract and will only be entitled to exercise its rights of termination under the Material Contract: (a) by reference to a default under the Material Contract arising during the Step-in Period (other than to the extent that a Project Co Insolvency Event constitutes such a default) provided that no event of default by Project Co under the Project Agreement will entitle the Material Project Contractor Design-Builder to exercise such rights of termination during the Step-in Period; (b) if the Authority Owner fails to pay when due any amount owed to the Material Project Contractor Design-Builder or fails to perform or discharge when falling due for performance or discharge any obligation under the Step-in Undertaking; or (c) if such rights of termination arise in circumstances where there is no default under the Material Contract by the Authority Owner or the Material Project ContractorDesign-Builder.