(a) (Termination if Major Loss or Damage): If the loss or damage is Major Loss or Damage and the State notifies Project Co not to repair or reinstate the Project Assets under clause 42.2(b)(iv) in respect of that Major Loss or Damage and the Major Loss or Damage was caused by:
(i) a Major Default or a Project Co Act or Omission, a Day 1 Uninsurable Risk or an Uninsurable Risk, which was caused by a Major Default or a Project Co Act or Omission, this will be deemed to be a Default Termination Event and the State must issue a notice to terminate this Deed under clause 46.4(a);
(ii) a Force Majeure Event or an Uninsurable Risk, (which is not caused by a Major Default or a Project Co Act or Omission), the State must issue a notice to terminate this Deed under clause 46.3 as if for a Force Majeure Termination Event; or
(iii) any other event, the State must issue a notice to terminate this Deed for convenience under clause 46.2.
(b) (Deemed State Initiated Modification): If the loss or damage is not Major Loss or Damage or Minor Damage and the State notifies Project Co under clause 42.2(b)(iv) that it does not require Project Co to repair or reinstate any part of the Project Assets the subject of any loss or damage, the State may:
(i) omit that part of the Project Assets from the Project as a Modification in accordance with clause 35; or
(ii) take such other action as it sees fit, and to the extent that such action gives rise to a Modification, subject to clause 42.4, Project Co may issue a Modification Proposal in accordance with clause 35.2(a)(vi) and Project Co's and the State's entitlements will be determined in accordance with clause 35 and the Change Compensation Principles as if the relevant act or omission was a State Initiated Modification.