Common use of System Damage Clause in Contracts

System Damage. If the System is damaged or destroyed other than by the Using Agency’s gross negligence or willful misconduct, the Vendor {Contractor} shall promptly repair and restore the System to its pre-existing condition; provided, however, that if more than fifty percent (50%) of the System is destroyed during the last five (5) years of the PPA Term or during any Additional PPA Term (as permitted by law, if any), the Vendor {Contractor} shall not be required to restore the System, but may instead terminate this PPA, unless the Using Agency agrees (A) to pay for the cost of such restoration of the System or (B) to purchase the System “AS-IS” at the greater of (1) the Fair Market Value of the System and (2) for any given Contract Year, the amount set forth on Exhibit 5 attached hereto.