Common use of Breach and Default Clause in Contracts

Breach and Default. 36 5.1 Events of Default 36 5.2 Rights upon Default 40 5.3 Damages Resulting From an Event of Default 41 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 5.5 Step-Up Provision 48 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 5.7 Preservation of Rights of Non-Defaulting Party 51 ARTICLE 6 CREDITWORTHINESS 52 6.1 Applicability 52 6.2 Creditworthiness Determination 52 6.3 Credit Exposure 53

Breach and Default. 36 23 5.1 Events of Default 36 23 5.2 Rights upon Default 40 5.3 Damages Resulting From Upon an Event of Default 41 5.4 Declaration of an Early Termination Date and Calculation of 25 5.3 Default Damages; Settlement Amount and Amount; Termination Payment 45 5.5 26 5.4 Step-Up up Provision 48 5.6 29 5.5 Setoff of Payment Obligations of the Non-Defaulting Party 50 5.7 30 5.6 Preservation of Rights of Non-Defaulting Party 51 30 ARTICLE 6 CREDITWORTHINESS 52 6: CREDITWORTHINESS; PERFORMANCE ASSURANCE 31 6.1 Applicability 52 31 6.2 Creditworthiness Determination 52 31 6.3 Independent Credit Exposure 53Requirement 32 6.4 Independent Credit Threshold 32

Breach and Default. 36 23 5.1 Events of Default 36 23 5.2 Rights upon Upon Default 40 26 5.3 Damages Resulting From an Event of Of Default 41 26 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 29 5.5 Step-Up up Provision 48 33 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 33 5.7 Preservation of Rights of Non-Defaulting Party 51 34 ARTICLE 6 6: CREDITWORTHINESS 52 6.1 Applicability 52 6.2 Creditworthiness Determination 52 6.3 Credit Exposure 5334

Breach and Default. 36 26 5.1 Events of Default 36 26 5.2 Rights upon Default 40 29 5.3 Damages Resulting From an Event of Default 41 30 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 33 5.5 Step-Up up Provision 48 36 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 37 5.7 Preservation of Rights of Non-Defaulting Party 51 37 ARTICLE 6 6: CREDITWORTHINESS 52 38 6.1 Applicability 52 38 6.2 Creditworthiness Determination 52 38 6.3 Credit Exposure 53Methodology 39

Breach and Default. 36 5.1 Events of Default 36 5.2 Rights upon Default 40 5.3 Damages Resulting From an Event of Default 41 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 44 5.5 Step-Up Provision 48 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 49 5.7 Preservation of Rights of Non-Defaulting Party 51 50 ARTICLE 6 CREDITWORTHINESS 52 51 6.1 Applicability 52 51 6.2 Creditworthiness Determination 52 51 6.3 Credit Exposure 5352

Breach and Default. 36 35 5.1 Events of Default 36 35 5.2 Rights upon Default 40 39 5.3 Damages Resulting From from an Event of Default 41 39 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 42 5.5 Step-Up up Provision 48 46 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 46 5.7 Preservation of Rights of Non-Defaulting Party 51 47 ARTICLE 6 6: CREDITWORTHINESS 52 6.1 Applicability 52 6.2 Creditworthiness Determination 52 6.3 Credit Exposure 5347

Breach and Default. 36 5.1 Events of Default 36 5.2 Rights upon Default 40 5.3 Damages Resulting From an Event of Default 41 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 5.5 Step-Up Provision RESERVED 48 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 48 5.7 Preservation of Rights of Non-Defaulting Party 51 49 ARTICLE 6 CREDITWORTHINESS 52 50 6.1 Applicability 52 50 6.2 Creditworthiness Determination 52 50 6.3 Credit Exposure 5351

Breach and Default. 36 39 5.1 Events of Default 36 39 5.2 Rights upon Default 40 44 5.3 Damages Resulting From an Event of Default 41 45 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 48 5.5 Step-Up Provision 48 52 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 54 5.7 Preservation of Rights of Non-Defaulting Party 51 55 ARTICLE 6 CREDITWORTHINESS 52 55 6.1 Applicability 52 55 6.2 Creditworthiness Determination 52 56 6.3 Credit Exposure 5357

Breach and Default. 36 35 5.1 Events of Default 36 35 5.2 Rights upon Default 40 39 5.3 Damages Resulting From from an Event of Default 41 39 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 43 5.5 Step-Up up Provision 48 46 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 46 5.7 Preservation of Rights of Non-Defaulting Party 51 47 ARTICLE 6 6: CREDITWORTHINESS 52 6.1 Applicability 52 6.2 Creditworthiness Determination 52 6.3 Credit Exposure 5348

Breach and Default. 36 26 5.1 Events of Default 36 26 5.2 Rights upon Default 40 29 5.3 Damages Resulting From an Event of Default 41 30 5.4 Declaration of an Early Termination Date and Calculation of Settlement Amount and Termination Payment 45 33 5.5 Step-Up up Provision 48 36 5.6 Setoff of Payment Obligations of the Non-Defaulting Party 50 36 5.7 Preservation of Rights of Non-Defaulting Party 51 37 ARTICLE 6 6: CREDITWORTHINESS 52 38 6.1 Applicability 52 38 6.2 Creditworthiness Determination 52 38 6.3 Credit Exposure 53Methodology 39