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Term, escalation and early termination of rented generation
Can the data centre get out of a turbine rental early, and what does it pay?
Each turbine is rented for a fixed term from go-live. The customer cannot cancel an order without the lessor’s approval. If it terminates early, other than for the lessor’s default, it pays a termination payment: a percentage of the remaining rent, with a higher percentage in the first three years. The parties agree that payment is a genuine pre-estimate of loss, not a penalty. Rent rises with CPI from the third year.
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What the filed contracts say
Contract
What the filed wording says
Solaris turbine rental
The customer may cancel a rental order only with the lessor’s approval, in its sole discretion, and pays cancellation charges.
Solaris turbine rental
Early termination by the customer, or after its default, costs a redacted percentage of the remaining rent, higher in the first three years of each turbine’s term.
Solaris turbine rental
The parties agree the termination payment is a genuine pre-estimate of loss, not a penalty, recoverable as a debt.
Solaris turbine rental
Rent escalates each year with CPI, starting in the third year of each turbine’s term.
The filed wording
Any Rental Order may be cancelled by Customer only upon approval by an authorized officer of Lessor, said approval to be in Lessor’s sole discretion.
Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
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