Common use of Other Quality Price Reductions Clause in Contracts

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 LB/MMBTU 12.75 LB/MMBTU MOISTURE Max. 12.73 LB/MMBTU 13.10 LB/MMBTU SULFUR Max. 3.00 LB/MMBTU 3.10 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 lb/MMBTU, then the applicable discount would be (3.14 lb. – 3.00 lb.) X .1232/lb/MMBTU = $0.017248/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA TMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU /LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA TMWA for such specification. XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Typical Monthly Weighted Average Discount Point BTU Min. 11,000 12,900 BTU/LB 10,900 12,700 BTU/XX XXX Max. 11.82 LB6.98 LBS/MMBTU 12.75 LB7.75 LBS/MMBTU MOISTURE Max. 12.73 LB5.38 LBS/MMBTU 13.10 LB6.92 LBS/MMBTU SULFUR Max. 3.00 LB2.575 LBS/MMBTU 3.10 LB2.75 LBS/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 lb3.15 LBS/MMBTU, then the applicable discount would be (3.14 lb. 3.15 – 3.00 lb.2.575) X .1232/lbLBS/MMBTU = $0.0172480.07084/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $$ /MMBTU BTU/LB. 0.2604 $$ /LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 LB/MMBTU 12.75 LB/MMBTU MOISTURE Max. 12.73 LB/MMBTU 13.10 LB/MMBTU SULFUR Max. 3.00 3.10 LB/MMBTU 3.10 3.15 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 3.18 lb/MMBTU, then the applicable discount would be (3.14 lb. – 3.00 3.18 lb.—3.10 lb.) X .1232/lb/MMBTU = $0.0172480.0099/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU /MMBTU per LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 11,200 BTU/LB 10,900 11,100 BTU/XX XXX Max. 11.82 8.40 LB/MMBTU 12.75 9.00 LB/MMBTU MOISTURE Max. 12.73 11.70 LB/MMBTU 13.10 12.10 LB/MMBTU SULFUR Max. 3.00 2.68 LB/MMBTU 3.10 3.00 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 lb3.15 LBS/MMBTU, then the applicable discount would be (3.14 lb. 3.15 – 3.00 lb.2.68) X x .1232/lbLBS/MMBTU = $0.0172480.05790/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 9.20 LB/MMBTU 12.75 9.70 LB/MMBTU MOISTURE Max. 12.73 14.00 LB/MMBTU 13.10 14.50 LB/MMBTU SULFUR Max. 3.00 LB/MMBTU 3.10 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 3.15 lb/MMBTU, then the applicable discount would be (3.14 3.15 lb. – 3.00 lb.) X .1232/lb/MMBTU = $0.0172480.0185/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX COAL COMPANYPeabody COALSALES, INC. LG&ELLC LGE&E/KU Xxxxxxxx XxContract No. X00000 J23003 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 9.00 LB/MMBTU 12.75 9.50 LB/MMBTU MOISTURE Max. 12.73 14.50 LB/MMBTU 13.10 15.00 LB/MMBTU SULFUR Max. 3.00 2.75 LB/MMBTU 3.10 2.85 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 3.15 lb/MMBTU, then the applicable discount would be (3.14 3.15 lb. – 3.00 2.75 lb.) X .1232/lb/MMBTU = $0.0172480.0493/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. 27 XXXXXXXXX COAL COMPANY, INC. LG&E/KU Xxxxxxxx Xx. X00000 Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 LB/MMBTU 12.75 LB/MMBTU MOISTURE Max. 12.73 LB/MMBTU 13.10 LB/MMBTU SULFUR Max. 3.00 3.10 LB/MMBTU 3.10 3.15 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.14 3.18 lb/MMBTU, then the applicable discount would be (3.14 3.18 lb. – 3.00 - 3.10 lb.) X .1232/lb/MMBTU = $0.0172480.0099/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/LB./MMBTU /MMBTU PER LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the GMWA for such specification. XXXXXXXXX ACNR COAL COMPANYSALES, INC. LG&E/KU Xxxxxxxx XxContract No. X00000 Guaranteed Monthly Weighted Average Discount Point J24006 GUARANTEED MONTHLY WEIGHTED AVERAGE DISCOUNT POINT BTU Min. 11,000 12,500 BTU/LB 10,900 12,300 BTU/XX XXX Max. 11.82 8.0 LB/MMBTU 12.75 9.0 LB/MMBTU MOISTURE Max. 12.73 7.20 LB/MMBTU 13.10 7.60 LB/MMBTU SULFUR Max. 3.00 2.75 LB/MMBTU 3.10 3.0 LB/MMBTU For example, if the Actual Monthly Weighted Average AMWA of sulfur equals 3.14 lb/MMBTUlb./MMBTU, then the applicable discount would be (3.14 lb. – 3.00 3 lb.) X .1232/lb× $0.1232/MMBTU per lb./MMBTU = $0.017248/0.01725 per MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.