Performance Guarantee Damages Sample Clauses

Performance Guarantee Damages. 5.1 If the Actual Generation is less than the Guaranteed Level, then the EPC Contractor shall pay to the Client as liquidated damages and not as a penalty, an amount (“Performance Guarantee Damages”) equal to the shortfall in kWh (“Performance Shortfall”) multiplied by [ ]10. The Performance Shortfall shall be the difference between (a) the Guaranteed Level, and (b) Actual Generation. 5.2 The Parties agree that it would be extremely difficult to precisely determine the amount of actual damages that would be suffered by the Client in the event that the EPC Contractor fails to achieve the Guaranteed Level. The Parties agree that the Performance Guarantee Damages are a fair and reasonable determination of the amount of actual damages that would be suffered by the Client for the EPC Contractor’s failure to meet the Guaranteed Level, and the Parties agree that these liquidated damages do not constitute a penalty. 5.3 Performance Guarantee Damages shall be payable within twenty (20) days of the date and verification of the invoice submitted to the EPC Contractor.