Common use of Termination for Developer Default Clause in Contracts

Termination for Developer Default. Following the required notice to Developer and the lenders and expiration of the applicable cure period without cure of Developer’s default: • During the construction period, TxDOT will be entitled to terminate the CDA for material default, without compensation to Developer. • During the operations and maintenance period, TxDOT will be entitled to terminate the CDA for material default, and Developer will be entitled to compensation equal to the lesser of (a) the fair market value of the concession minus damages owing to TxDOT or (b) a percentage of the outstanding principal amount of original senior debt minus damages owing to TxDOT. However, no compensation will be owing if termination follows rejection of the CDA by Developer in bankruptcy.