Common use of Monthly Shortfall Payment Clause in Contracts

Monthly Shortfall Payment. If, in any Billing Month of a Contract Year during the Initial Term and the Renewal Term, if applicable (but in no event during the Extended Term), the Jurisdictions together do not deliver, or caused to be delivered, Acceptable Waste in an aggregate amount of at least eighty percent (80%) of the Minimum Monthly Tonnage set forth in Schedule 1 in effect for such Billing Month, then the Jurisdictions shall pay the Company a shortfall fee (the “Monthly Shortfall Fee”) equal to the greater of (A) zero (0); and (B) the product of (i) the difference between (A) the Minimum Monthly Tonnage in effect for such Billing Month, and (B) for such Billing Month the sum of (1) the Tons of Acceptable Waste delivered by or on behalf of the Jurisdictions to the Facility and accepted by the Company; (2) the Tons of Acceptable Waste delivered by or on behalf of the Jurisdictions to any Alternate Facility(ies); (3) the Tons which are not delivered to or accepted at the Facility or an Alternate Facility and which are described in Section 10.1; and (4) the Tons of Diverted Waste in accordance with Sections 3.2(b) and 9.1 (such amount, the “Monthly Shortfall Tonnage”); multiplied by (ii) the sum of (x) the Base Tipping Fee and (y) the Unit Change in Law Cost, each in effect for such pertinent Billing Month.