Common use of Termination for an Insolvency Event Clause in Contracts

Termination for an Insolvency Event. Each Party acknowledges that the Agreement is a “Forward Contract” as defined in United States Bankruptcy Code (11 U.S.C. Sec. 101(25)). If a Party (the “Non-Defaulting Party”) terminates the Agreement by reason of one or more events of default of the other Party (the “Defaulting Party”), (a) the Defaulting Party shall have no right to recover damages or other compensation from the Non-Defaulting Party and (b) the Non-Defaulting Party, in addition to any rights or remedies it may have under the Agreement or otherwise, shall have the right to recover damages or other compensation from the Defaulting Party in respect of the quantities of Oil that would have been sold or purchased, as the case may be, under the Agreement in the absence of a termination.

Termination for an Insolvency Event. Each Party acknowledges that the this Agreement is a “Forward Contract” as defined in United States Bankruptcy Code (11 U.S.C. Sec. 101(25)). If a Party (the “Non-Defaulting Party”) terminates the this Agreement pursuant to Article 16.1 by reason of one or more events of default of the other Party (the “Defaulting Party”), (ai) the Defaulting Party shall have no right to recover damages or other compensation from the Non-Defaulting Party and (bii) the Non-Defaulting Party, in addition to any rights or remedies it may have under the this Agreement or otherwise, shall have the right to recover damages or other compensation from the Defaulting Party in respect of the quantities of Oil that would have been sold or purchased, as the case may be, under the Agreement hereunder in the absence of a termination.