2.2  Indemnity

In respect of:

2.2.1  loss of anticipated Revenue during the Indemnity Period arising from an interruption or interference in the operation the Project as a result of loss or damage covered under Property Damage Insurance effected in accordance with Item 1 of Part 2 of this Schedule including physical loss or damage which would be indemnifiable but for the application of any deductible;

2.2.2  the economic additional expenditure necessarily and reasonably incurred for the purpose of avoiding or reducing the loss of unavoidable fixed costs and senior debt service costs of the Contractor which without such expenditure would have taken place, during the Indemnity Period.

Revenue is defined as the projected Unavoidable fixed costs and senior debt service costs of the Contractor.

Debt service shall mean interest and debt service costs incurred in respect of the Senior Financing Agreements less:

(a)  sums which are in arrears;

(b)  all sums reserved by the Contractor and which the Contractor is entitled to use to make such payments, without breaching the Senior Financing Agreements.

Unavoidable Fixed Costs shall mean the fixed costs incurred by the Contractor which first fall due for payment by the Contractor during the period of indemnity but excluding:

(a)  costs which could have reasonably been mitigated or avoided by the Contractor;

(b)  payments to the Contractor's Associated Companies;

(c)  payments which are not made under arms length contracts on commercial terms;

(d)  payments to holders of equity in the Contractor, subordinated debt holders and any other financing costs other than senior debt service;

(e)  indirect losses suffered or allegedly suffered by any person;

(f)  fines, penalties or damages for unlawful acts, breaches of contract or other legal obligations;

(g)  payments the Contractor can recover under contract or in respect of which the Contractor has a remedy against another person in respect of the same liability;

(h)  payments to the extent that the Contractor has available to it:

(i)  reserves which the Contractor can draw upon without breaching the Senior Financing Agreement;

(ii)  standby or contingent Stations or funds of senior debt or equity which the Contractor is entitled to have available;

(i)  payments representing any profits of the Project (to the extent not already excluded in (e) above).