It is an event of default under the contract if: (i) Seller fails to meet the Delivery Year Requirement for three (3) or more years, AND (ii) the Shortfall Amounts (as the term is defined in the REC Contract) cumulatively equals or exceeds the annual quantity. Both conditions must be triggered for such event of default to occur. If the Shortfall Amounts are less than the Annual Quantity, there is no event of default.  However, payment to the Seller is based on the RECs delivered, so shortfalls would lead to missed revenue under the REC Contract.