Common use of Default and Force Majeure Clause in Contracts

Default and Force Majeure. 9.01 Provider Defaults • The developer will have defaulted on the PPA contract if it: o Breaches a material term (i.e., does not do something important called for in the PPA) and does not remedy that breach. o Goes bankrupt. o Does not provide the insurance required under the PPA o Does not produce electricity for more than 90 days in any year, unless the lack of production is caused by an action of the Town or an Act of God. • If the developer defaults, the Town may terminate the PPA and buy the solar array. • If the developer’s default might cause injury to anyone or to anyone’s property, the Town may intervene to remedy the situation. 9.02 Customer Defaults • The Town will have defaulted on the PPA contract if it: o Breaches a material term (i.e., does not do something important called for in the PPA) and does not remedy that breach. o Goes bankrupt. • If the Town is in an unremedied default, the developer may terminate the PPA and remove the solar array at the Town’s expense.