(a) (Step-in caused by Project Co): Subject to clause 38.5(c), if the State has exercised its rights under clause 38.2 as a consequence of any Step-In Event contemplated by:
(i) clauses 38.2(a)(i), 38.2(a)(ii) or 38.2(a)(iii); or
(ii) clauses 38.2(a)(iv), 38.2(a)(v) or 38.2(a)(vi) and that Step-In Event is the result of a Project Co Act or Omission,
then:
(iii) if the State exercises its rights during the Operational Phase, the Service Payment will be subject to Abatement in accordance with the Payment Schedule to the extent the Services are not being provided in accordance with this Deed; and
(iv) if the State exercises its rights at any time during the Term, any Liability suffered or incurred by the State or any State Associate in connection with the exercise by the State of those rights (provided that during the Operational Phase, the Liability is in excess of the Service Payments that are Abated under clause 38.5(a)(iii)), will be a debt due and payable by Project Co to the State, except to the extent that the State's Liability is suffered or incurred as a consequence of a breach of the State Project Documents by the State or any State Associate.
(b) (Step-in not caused by Project Co): If the State has exercised its rights under clause 38.2 other than for the reasons set out in clause 38.5(a) or clause 38.5(c), the exercise by the State of those rights will be:
(i) in relation to any Development Activities, a Compensable Extension Event; and
(ii) in relation to any Services or other obligations under this Deed (which are not Development Activities) in each case during the Operational Phase, an Intervening Event.
(c) (Force Majeure Event): Where the State has exercised its rights under clause 38.2 as a consequence of any Step-In Event contemplated by clause 38.2(a)(iv), clause 38.2(a)(v) or clause 38.2(a)(vi) and that Step-In Event is the result of a Force Majeure Event, the exercise by the State of those rights will be a Force Majeure Event.