DEMAND UNDERPERFORMANCE CHARGES Sample Clauses
The Demand Underperformance Charges clause establishes financial penalties or charges that apply when a party fails to meet specified demand or performance levels outlined in the agreement. Typically, this clause details the metrics or thresholds for acceptable performance, the method for calculating underperformance, and the amount or formula for the resulting charges. Its core practical function is to incentivize compliance with agreed-upon performance standards and to compensate the non-breaching party for losses or inefficiencies caused by underperformance.
DEMAND UNDERPERFORMANCE CHARGES. If Company’s IP Product Agreement provides for IP5, for any Interruption (not applicable to functional test) in which Company does not achieve a Performance Factor equal to 100 percent, a charge will be applied to Company’s power ▇▇▇▇, and the charge will be calculated as follows: For any Interruption with a Performance Factor greater than or equal to 97 percent: For any Interruption with a Performance Factor less than 97 percent: Where:
DEMAND UNDERPERFORMANCE CHARGES. 6.6.1 Underperformance Equation Definitions. As used in subsections 6.6.2 and 6.6.3 below:
DEMAND UNDERPERFORMANCE CHARGES