Common use of BOP Benchmark and Liquidated Damages Clause in Contracts

BOP Benchmark and Liquidated Damages. For each Contract Year, Seller shall achieve a BOP Efficiency Ratio, as calculated as provided in Section 2.7(a) (Calculation of Annual BOP Efficiency Ratio) of this Agreement, of not less than the BOP Benchmark. If the BOP Efficiency Ratio for a Contract Year is less than the BOP Benchmark, Seller shall pay, and Company shall accept, as liquidated damages for Seller's failure to achieve the BOP Benchmark for such Contract Year, an amount calculated in accordance with the following formula: Amount of Liquidated Damages Per Contract Year For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below the BOP Benchmark up to and including a BOP Efficiency Ratio of three percentage points below the BOP Benchmark ("BOP Benchmark Minus 3"), one-tenth of one percent (0.001) of the Applicable Period Lump Sum Payment for such Contract Year; plus For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below BOP Benchmark Minus 3 up to an including a BOP Efficiency Ratio of six percentage points below the BOP Benchmark ("BOP Benchmark Minus 6", two-tenths of one percent (0.002) of the Applicable Period Lump Sum Payment for such Contract Year; plus For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below BOP Benchmark Minus 6, four-tenths of one percent (0.004) of the Applicable Period Lump Sum Payment for such Contract Year. For purposes of determining liquidated damages under the preceding formula, the amount by which the BOP Efficiency Ratio for the Contract Year in question falls below the applicable threshold shall be rounded to the nearest one-tenth of one percent (0.001). Each Party agrees and acknowledges that (i) the damages that Company would incur if the Seller fails to achieve the BOP Benchmark for a Contract Year would be difficult or impossible to calculate with certainty and (ii) the aforesaid liquidated damages are an appropriate approximation of such damages.

BOP Benchmark and Liquidated Damages. For each Contract Year, Seller shall achieve a BOP Efficiency Ratio, as calculated as provided in Section 2.7(a2.6(a) (Calculation of Annual BOP Efficiency Ratio) of this Agreement, of not less than the BOP Benchmark. If the BOP Efficiency Ratio for a Contract Year is less than the BOP Benchmark, Seller shall pay, and Company shall accept, as liquidated damages for Seller's failure to achieve the BOP Benchmark for such Contract Year, an amount calculated in accordance with the following formula: Amount of Liquidated Damages Per Contract Year For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below the BOP Benchmark up to and including a BOP Efficiency Ratio of three percentage points below the BOP Benchmark ("BOP Benchmark Minus 3"), one-tenth of one percent (0.001) of the Applicable Period Lump Sum Payment for such Contract Year; plus For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below BOP Benchmark Minus 3 up to an including a BOP Efficiency Ratio of six percentage points below the BOP Benchmark ("BOP Benchmark Minus 6", two-tenths of one percent (0.002) of the Applicable Period Lump Sum Payment for such Contract Year; plus For each one-tenth of one percent (0.001) by which the BOP Efficiency Ratio for such Contract Year falls below BOP Benchmark Minus 6, four-four- tenths of one percent (0.004) of the Applicable Period Lump Sum Payment for such Contract Year. For purposes of determining liquidated damages under the preceding formula, the amount by which the BOP Efficiency Ratio for the Contract Year in question falls below the applicable threshold shall be rounded to the nearest one-tenth of one percent (0.001). Each Party agrees and acknowledges that (i) the damages that Company would incur if the Seller fails to achieve the BOP Benchmark for a Contract Year would be difficult or impossible to calculate with certainty and (ii) the aforesaid liquidated damages are an appropriate approximation of such damages.