The Contract details the compensation (if any) which will become payable to the Contractor on termination. The basis on which such compensation is calculated depends on the reason for the termination. For example, if the Contract is terminated for Board Default (see paragraph 25), the premise is that the Contractor and its Funders are no worse off because of the termination that they would have been if the Contract had run full course. If the Contract is terminated for Contractor Default) see paragraph 24) the compensation payable is calculated to represent a balance between the Board being unfairly benefited (by retaining a Facility for which it has paid only a fraction of its worth) and not unfairly penalising the Contractor for its default.
More detail regarding the compensation termination provisions is contained in Appendix 2.