Cancellation. A Party shall have the right to cancel this Framework Agreement in the event of an essential breach of agreement by the other Party, including repeated essential breaches of Capacity Agreements. The Transmission System Operator with System Responsibility shall have the right to cancel this Framework Agreement with immediate effect if the Shipper or Trader, despite a written reminder of the Transmission System Operator with System Responsibility, essentially defaults its payment obligation to the Transmission System Operator with System Responsibility or the Shipper or Trader has been declared bankrupt or placed into liquidation or been declared insolvent by an authority. The cancellation of this Framework Agreement shall not, however, be implemented if the Shipper or Trader provides the Transmission System Operator with System Responsibility with sufficient security. #16409964v14 In addition to the above, a Party shall have the right to cancel this Framework Agreement if the other Party otherwise causes a situation that is essentially in violation of this Framework Agreement and fails to rectify the situation within a reasonable period of time after the other Party’s written notification. In that case security is released within seven (7) days of the Shipper or Trader or its bankruptcy estate having made its payments to the Transmission System Operator with System Responsibility and this Framework Agreement having been terminated.
