Project Adverse Events Clause Samples
The Project Adverse Events clause defines how unexpected negative incidents or conditions affecting the project are identified, reported, and managed. Typically, this clause requires parties to promptly notify each other of any adverse events that could impact project timelines, costs, or outcomes, such as accidents, regulatory violations, or significant delays. Its core function is to ensure transparency and enable timely responses to mitigate risks, thereby protecting the interests of all parties involved and maintaining project continuity.
Project Adverse Events. DOE shall have received a certification from the Borrower that no PAE has occurred for which at least 90% of the Ownership Interests in the Project have not been voted in favor of continuing the construction, completion, testing, startup and pre-operational turnover of the Project.
Project Adverse Events. DOE shall have received a certification from the Borrower that as of the Advance Notice Date and the Advance Date either (a) no PAE has occurred or (b) a PAE has occurred and (i) at least 90% of the Ownership Interests in the Project have been voted in favor of continuing the construction, completion, testing, startup and pre-operational turnover of the Project, (ii) no Deferral Period has occurred and is continuing, and (iii) the Borrower has provided DOE with the information required by clause (A) of the first sentence of Section 6.15 (Project Adverse Events) in connection with such PAE. In addition, if the Borrower determines that a material change to the Construction Budget or Summary Project Milestone Schedule — Regulatory Based has occurred, or is reasonably expected to occur, as a result of such PAE, the Borrower shall have delivered to DOE an updated Advance Schedule, Project Milestone Schedule, Summary Project Milestone Schedule — Working Plan, Summary Project Milestone Schedule — Regulatory Based and Construction Budget. Any change in the Summary Project Milestone Schedule — Regulatory Based that would constitute a PAE pursuant to Section 2.1(a)(iv) of the Owners’ Continuation Agreement and Amendment shall be deemed to be a material change to the Summary Project Milestone Schedule — Regulatory Based.
Project Adverse Events. If (i) a PAE has occurred and at least 90% of the Ownership Interests in the Project have been voted in favor of continuing construction, completion, testing, startup and pre-operational turnover of the Project, and (ii) if the Borrower determines that a material change to the Construction Budget or Summary Project Milestone Schedule — Regulatory Based has occurred, or is reasonably expected to occur, as a result of such PAE, the Borrower shall (A) promptly inform DOE of how the Borrower expects to fund any Overrun Project Costs and (B) when finalized, provide DOE with an updated Construction Budget, Summary Project Milestone Schedule — Working Plan, Summary Project Milestone Schedule — Regulatory Based and Project Milestone Schedule. The obligations of the Borrower in clause (A) may be satisfied by identifying general sources of funding (such as capital or bank finance markets or other sources of funding) the Borrower reasonably expects to be available to the Borrower, it being understood and agreed that the specific sources of funding that may be used by the Borrower in the future will be dependent on market conditions and other factors existing at the time such funding is obtained. Any change in the Summary Project Milestone Schedule — Regulatory Based that would constitute a PAE pursuant to Section 2.1(a)(iv) of the Owners’ Continuation Agreement and Amendment shall be deemed to be a material change to the Summary Project Milestone Schedule — Regulatory Based.