Failure to Meet Performance Requirements. (a) In the event any of the Operations Tests, the Systems Acceptance Test or the Monthly Operations and Maintenance Reports of ongoing operating performance do not yield results which meet or are better than a Guaranteed Performance Requirement, TSP shall become obligated hereunder to pay Performance Liquidated Damages in the amounts set forth in Exhibit N for any shortfall in performance below the Performance Requirements based upon such test results. (b) TSP’s obligation to pay Performance Liquidated Damages for failure to meet Guaranteed Performance Requirements shall apply from and after the first Revenue Service Date. If TSP becomes obligated to pay Performance Liquidated Damages, such Performance Liquidated Damages shall be due and payable directly to the Joint Board or to such other person as directed by the Joint Board in writing, without notice or demand, on the tenth day of the following month and if not paid when due shall thereafter accrue interest as provided in Section 12.7. The Joint Board may, in its sole discretion, offset such Performance Liquidated Damages against amounts otherwise payable by the Joint Board to the TSP.
Appears in 5 contracts
Samples: Toll Services Agreement, Toll Services Agreement, Toll Services Agreement
