Common use of PENALTY POINTS Clause in Contracts

PENALTY POINTS. If: (i) the Borrower is awarded a total of 100 or more Penalty Points (after taking into account the reduction (if any) in Penalty Points pursuant to the proviso to Clause 24.2.1 of the DBFO Contract) in one year; or (ii) having already received one Warning Notice, the Borrower is awarded a total of 200 or more Penalty Points (after taking into account the reduction (if any) in Penalty Points pursuant to the proviso to Clause 24.2.1 of the DBFO Contract) in any subsequent three year period, and in either case: (a) the Borrower is unable to demonstrate within 7 days thereof to the reasonable satisfaction of the Agent that the level of Penalty Points is a direct result only of management difficulties and it has taken measures which have corrected the management difficulties which have given rise to such a level of Penalty Points being awarded at such a rate; or (b) if the Borrower does demonstrate the above, but a further 25 or more Penalty Points are awarded within the immediately following 60 day period, Provided that any Penalty Points which are being disputed in good faith pursuant to Clause 24.2.3 or 24.2.4 of the DBFO Contract shall only be taken into account to the extent they are taken into account in the DBFO Contract.

PENALTY POINTS. If: (ia) the Borrower is awarded a total of 100 or more Penalty Points (after taking into account the reduction (if any) in Penalty Points pursuant to the proviso to Clause clause 24.2.1 of the DBFO Contract) in one year; or (iib) having already received one Warning Notice, the Borrower is awarded a total of 200 or more Penalty Points (after taking into account the reduction (if any) in Penalty Points pursuant to the proviso to Clause clause 24.2.1 of the DBFO Contract) in any subsequent three year period, and in either case: (ai) the Borrower is unable to demonstrate within 7 days thereof to the reasonable satisfaction of the Agent Lenders (after consultation with the Traffic Adviser) that the level of Penalty Points is a direct result only of management difficulties and it has taken measures which have corrected the management difficulties which have given rise to such a level of Penalty Points being awarded at such a rate; or (bii) if the Borrower does demonstrate the above, but a further 25 or more Penalty Points are awarded within the immediately following 60 day period, Provided that any Penalty Points which are being disputed in good faith pursuant to Clause clause 24.2.3 or 24.2.4 of the DBFO Contract shall only be taken into account to the extent they are taken into account in the DBFO Contract.