Common use of Quality and Specifications Clause in Contracts

Quality and Specifications. a. All coal delivered under this contract shall conform to the following Typical Analyses on a quarterly average as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis: TYPICAL REJECTION/SUSPENSION ANALYSIS (1) SPECIFICATIONS (3) ------------ -------------------- Lbs of SO(2) per million Btu (2) ****** lbs Not more than ****** lbs Total Moisture ****** % Not more than ****** % Sulfur (as-received max.) ****** % Not more than ****** % Sulfur (as received min.) ****** % Not less than ****** % Ash (as-received) ****** % Not more than ****** % Ash (dry basis) ****** % Not more than ****** % Btu/lb (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial ****** degree F Not [more/less] than ****** degree F Softening (Hemispherical) ****** degree F Not [less] than ****** degree F Fluid ****** degree F Not [more/less] than ****** degree F Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Hardxxxxx Xxxex) ****** Not less than ****** Chlorine (dry basis) ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustment under Section 8. (2) At ******. (3) Failure to comply with any of these specifications shall be basis for rejections and suspensions or termination pursuant Subsections 9.c. and 9.d. b. The coal as-received shall have a top size not greater than ****** or less than ******, with at least ****** of the product larger than ******, and with at least ****** of the product larger than ******. Such sizes shall be determined by using screens with square openings. Coal shall not exhibit a temperature in excess of ******, and it shall be substantially free from milling impurities and scrap such as drill bits, pieces of scrap metal or plate, plastic, rubber, rope, cloth, wire, cable, bone, slate, earth, rock, pyrite, wood or water, which can be kept out or removed with the exercise of reasonable care during mining, preparation, and loading. It shall be loaded in a manner that will ensure reasonably uniform consistency as to size and quality and shall not contain slurry pond material (washer tailings), gob pile material (mine refuse), petroleum-coke, oxidized coal, or blends of such materials, or create excessive amounts of dust during the unloading and transferring to storage. c. If any coal delivered fails to meet any of the Rejection/Suspension Specifications on the basis of visual inspection or laboratory, analysis. TVA may reject the coal at the source, loading point, any transloading or Destination Plant. TVA's acceptance of any amount of coal which does not meet these requirements shall not constitute a waiver of any right which TVA may have under this contract or as provided by law on account of the delivery of such coal. In case of rejection of any coal in accordance with this section, TVA will immediately notify Contractor of the rejection and of the cause of rejection. In the case of coal rejected after loading, unless the cause for rejection is corrected, Contractor shall promptly remove the coal from the carrier's equipment or from TVA premises, as the case may be at Contractor's expense. Contractor shall reimburse TVA for any additional transportation costs, demurrage, equipment repair costs, or handling expenses incurred by TVA in connection with any such rejection. TVA shall not be under any obligation or liability to assist Contractor in any corrective actions required to remedy the cause for rejection. d. If any coal delivered fails to meet the Rejection/Suspension Specifications stated in Subsection 9.a. or the requirements of Subsection 9.b., TVA shall have the right to refuse to accept further deliveries from any or all mine sources authorized under the contract until Contractor provides assurance satisfactory to TVA that Contractor will comply with the Rejection/Suspension Specifications and the Subsection 9.b. requirements. Such assurance must be given in writing within seven (7) days after the beginning of such suspension. If Contractor fails to provide such assurance within the time specified or provides such assurance but does not correct the deficiencies that resulted in the breach of Subsection 9.a. or Subsection 9.b. within seven (7) days after giving such assurance, TVA may then terminate Contractor's right to make further deliveries under this contract. However, if TVA has suspended Contractors' right to make further deliveries under the above provision two (2) times during any twelve-month period of the contract term, TVA shall have the immediate right, at its option, upon the third such violation, to terminate Contractors' right to make further deliveries under this contract. Contractor shall be responsible for all costs or damages incurred by TVA resulting from Contractor's failure to comply with the contract requirements. Damages or excess reprocurement cost may be determined in accordance with Section 11, Remedies. e. If the normal operations in conformance with the design capabilities of the Destination Plant cannot be accomplished with the coal delivered hereunder, although the coal complies with the quality and size requirements of this Section 9, TVA may then terminate Contractor's right to make further deliveries, and this contract shall be canceled without further obligation or liability to either party. In the event of such a termination. the Contractor may be given a reasonable opportunity to remedy the cause for termination, which may include the offer of replacement coal. However, TVA is not obligated to accept offers of replacement coal for the Destination Plants. In the case of multiple Destination Plants, a termination under this subsection e. shall be effective only and to the tonnage scheduled for the affected plant at the time it is determined that normal operations cannot be accomplished.

Quality and Specifications. a. All Contractor guarantees that all coal delivered under this contract shall conform to the following Typical Analyses on a quarterly average specifications as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis: TYPICAL REJECTIONGUARANTEED SUSPENSION/SUSPENSION ANALYSIS (1) REJECTION SPECIFICATIONS (3) ------------ -------------------- Lbs of SO(2) per million Btu (2) ****** lbs SPECIFICATIONS Total Moisture Not more than ****** lbs Total Moisture *% ****** *% ---------- ---------------- Sulfur (as-received) Not more than ****** *% Sulfur (as-received max.) ****** *% ---------- ---------------- Sulfur (as -received) Not less than ******% ******% ---------- ---------------- Ash (dry basis) Not more than ****** *% Sulfur (as received min.) ****** *% ---------- ---------------- Btu/lb (as-received) Not less than ****** % Ash (as-received) ****** % Not more than ****** % Ash (dry basis) ****** % Not more than ****** % Btu/lb (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial ****** degree F Not [more/less] than ****** degree F Softening (Hemispherical) ****** degree F Not [less] than ****** degree F Fluid ****** degree F Not [more/less] than ****** degree F Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Hardxxxxx Xxxex) ****** Not less than ****** Chlorine (dry basis) ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustment under Section 8. (2) At ******. (3) Failure to comply with any of these specifications shall be basis for rejections and suspensions or termination pursuant Subsections 9.c. and 9.d.---------- ---------------- b. The coal as-received shall have a top size not greater than two ****** or less than ******, with at least ****** of the product larger than ******, and with at least ****** of the product larger than ******. Such sizes shall be determined by using screens with square openings. Coal shall not exhibit a temperature in excess of ******, and it it, for a raw coal prior to washing, shall be substantially free from milling mining impurities and scrap such as drill bits, pieces of scrap metal or plate, plastic, rubber, rope, cloth, wire, cable, bone, slate, earth, rock, pyrite, wood wood, or water, which can be kept out or removed with the exercise of reasonable care during mining, preparation, mining and loading. It shall be loaded in a manner that will ensure reasonably uniform consistency as to size and quality and shall not contain slurry pond material (washer tailings), gob pile material (mine refuse), petroleum-coke, oxidized coal, or blends of such materials, or create excessive amounts of dust during the unloading and transferring to storage. c. Contractor guarantees that all coal delivered under this contract shall conform to the following Washability Specifications determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis: WASHABILITY SPECIFICATIONS Lbs. of SO2 per million Btu (1) Not more than ****** ------------------- Sulfur (dry) Not more than ******% ------------------- Sulfur (dry) Not less than ******% ------------------- Ash (dry) Not more than ******% ------------------- Btu/lb (dry) Not less than ****** ------------------- Volatile Matter (dry) Not less than ******% ------------------- Chlorine (dry) Not more than ******% ------------------- Btu Recovery Not less than ******% ------------------- Product Yield Not less than ******% ------------------- Grindability (Hardxxxxx Xxxex) Not less than ****** ------------------- Add fusion temperature reducing atmosphere Initial Not less than ******o ------------- Softening Not less than ******o ------------- Hemispherical Not less than ******o ------------- Fluid Not less than ******o ------------- Fluid Not more than ******o ------------- Specific Gravity ****** (1) at ****** d. If any coal (barge, trainlot, or daily delivery for trucks) delivered fails to meet any the Suspension/Rejection Specifications of Subsections 9.a., or the Rejection/Suspension Specifications requirements of Subsection 9.b. on the basis of visual inspection or laboratorylaboratory analysis, analysis. TVA may reject the coal at the source, loading point, any transloading or Destination Plant. TVA's acceptance of any amount of coal which does not meet these requirements shall not constitute a waiver of any right which TVA may have under this contract or as provided by law on account of the delivery of such coal. Any such coal accepted shall be assessed liquidated damages at the rate of ****** per ton plus any additional adjustments resulting from its inclusion in determining the quarterly average values. In case of rejection of any coal in accordance with this section, TVA will immediately notify Contractor of the rejection and of the cause of rejection. In the case of coal rejected after loading, unless the cause for rejection is corrected, Contractor shall promptly remove the coal from the carrier's equipment or from TVA premises, as the case may be be, at Contractor's expense. Contractor shall reimburse TVA for any additional transportation costs, demurrage, equipment repair costs, or handling expenses incurred by TVA in connection with any such rejection. TVA shall not be under any obligation or liability to assist Contractor in any corrective actions required to remedy the cause for rejection. d. e. If any coal (barge, trainlot, or daily delivery for trucks) delivered fails to meet the RejectionSuspension/Suspension Rejection Specifications stated in Subsection 9.a. or , the requirements of Subsection 9.b., or the Washability Specifications in Subsection 9.c, TVA shall have the right to refuse to accept further deliveries from any or all mine sources authorized under the contract until Contractor provides assurance satisfactory to TVA that Contractor will comply with the Rejection/Suspension Specifications requirements of Subsection 9.a, b, and the Subsection 9.b. requirements. c. Such assurance must be given in writing within seven (7) days after the beginning of such suspension. If Contractor (1) fails to provide such assurance within the time specified or specified, (2) provides such assurance but does not correct the deficiencies that resulted in the breach of Subsection 9.a. or Subsection 9.b. within seven (7) days after giving such assurance, or (3) fails on two (2) occasions in any twelve (12) month period to meet the Washability Specifications set forth in Subsection 9.c, TVA may then terminate Contractor's right to make further deliveries under this contract. However, if TVA has suspended Contractors' right to make further deliveries under the above provision two (2) times during any twelve-month period of the contract term, TVA shall have the immediate right, at its option, upon the third such violation, to terminate Contractors' right to make further deliveries under this contract. Contractor shall be responsible for all costs or damages incurred by TVA resulting from Contractor's failure to comply with the contract requirements. Damages or excess reprocurement cost may be determined in accordance with Section 11, Remedies. e. f. If the normal operations in conformance with the design capabilities of the Destination Plant cannot be accomplished with the coal delivered hereunder, although the coal complies with the quality and size requirements of this Section 9, TVA may then terminate Contractor's right to make further deliveries, and this contract shall be canceled without further obligation or liability to either party. In the event of such a termination. , the Contractor may be given a reasonable opportunity to remedy the cause for termination, which may include the offer of replacement coal. However, TVA is not obligated to accept offers of replacement coal for the Destination Plants. In the case of multiple Destination Plants, a termination under this subsection e. shall be effective only and to the tonnage scheduled for the affected plant at the time it is determined that normal operations cannot be accomplishedcoal.

Quality and Specifications. a. All Contractor guarantees that all coal delivered under this contract shall conform to the following Typical Analyses on a quarterly average specifications as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis: TYPICAL REJECTIONGuaranteed Suspension/SUSPENSION ANALYSIS (1) SPECIFICATIONS (3) ------------ Rejection Specifications Specifications -------------- -------------------- Lbs of SO(2) per million Btu (2) ****** lbs Not more than ****** lbs Total Moisture ****** % Not more than ****** % Sulfur (as-received max.) ****** % -------------- -------------------- Sulfur (as-received) Not more than ****** % Sulfur (as received min.) ****** % -------------- -------------------- Sulfur (as-received) Not less than ****** % Ash (as-received) ****** % -------------- -------------------- Ash (dry) Not more than ****** % Ash (dry basis) ****** % Not more than ****** % -------------- -------------------- Btu/lb (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial ****** degree F Not [more/less] than ****** degree F Softening (Hemispherical) ****** degree F Not [less] than ****** degree F Fluid ****** degree F Not [more/less] than ****** degree F Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Hardxxxxx Xxxex) ****** Not less than ****** Chlorine (dry basis) ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustment under Section 8. (2) At ******. (3) Failure to comply with any of these specifications shall be basis for rejections and suspensions or termination pursuant Subsections 9.c. and 9.d.-------------- -------------------- b. The coal as-received shall have a top size not greater than ****** or less than ******, with at least ****** of the product larger than ******, and with at least ****** of the product larger than ******. Such sizes shall be determined by using screens with square openings. Coal shall not exhibit a temperature in excess of ******, and it shall be substantially free from milling mining impurities and scrap such as drill bits, pieces of scrap metal or plate, plastic, rubber, rope, cloth, wire, cable, bone, slate, earth, rock, pyrite, wood wood, or water, which can be kept out or removed with the exercise of reasonable care during mining, preparation, mining and loading. It shall be loaded in a manner that will ensure reasonably uniform consistency as to size and quality and shall not contain slurry pond material (washer tailings), gob pile material (mine refuse), petroleum-coke, oxidized coal, coal or blends of such materials, or create excessive amounts of dust during the unloading and transferring to storage. c. If any Contractor guarantees that all coal delivered fails to meet any of the Rejection/Suspension Specifications on the basis of visual inspection or laboratory, analysis. TVA may reject the coal at the source, loading point, any transloading or Destination Plant. TVA's acceptance of any amount of coal which does not meet these requirements shall not constitute a waiver of any right which TVA may have under this contract or as provided shall conform to the following Washability Specifications determined by law on account of the delivery of such coal. In case of rejection of any coal in accordance with this section, TVA will immediately notify Contractor of the rejection sampling and of the cause of rejection. In the case of coal rejected after loading, unless the cause for rejection is corrected, Contractor shall promptly remove the coal from the carrier's equipment or from TVA premises, as the case may be at Contractor's expense. Contractor shall reimburse TVA for any additional transportation costs, demurrage, equipment repair costs, or handling expenses incurred by TVA in connection with any such rejection. TVA shall not be under any obligation or liability to assist Contractor in any corrective actions required to remedy the cause for rejection. d. If any coal delivered fails to meet the Rejection/Suspension Specifications stated in Subsection 9.a. or the requirements of Subsection 9.b., TVA shall have the right to refuse to accept further deliveries from any or all mine sources authorized under the contract until Contractor provides assurance satisfactory to TVA that Contractor will comply with the Rejection/Suspension Specifications and the Subsection 9.b. requirements. Such assurance must be given in writing within seven (7) days after the beginning of such suspension. If Contractor fails to provide such assurance within the time specified or provides such assurance but does not correct the deficiencies that resulted in the breach of Subsection 9.a. or Subsection 9.b. within seven (7) days after giving such assurance, TVA may then terminate Contractor's right to make further deliveries under this contract. However, if TVA has suspended Contractors' right to make further deliveries under the above provision two (2) times during any twelve-month period of the contract term, TVA shall have the immediate right, at its option, upon the third such violation, to terminate Contractors' right to make further deliveries under this contract. Contractor shall be responsible for all costs or damages incurred by TVA resulting from Contractor's failure to comply with the contract requirements. Damages or excess reprocurement cost may be determined analyses performed in accordance with Section 117, Remedies. e. If the normal operations in conformance with the design capabilities of the Destination Plant cannot be accomplished with the coal delivered hereunder, although the coal complies with the quality Sampling and size requirements of this Section 9, TVA may then terminate Contractor's right to make further deliveries, and this contract shall be canceled without further obligation or liability to either party. In the event of such a termination. the Contractor may be given a reasonable opportunity to remedy the cause for termination, which may include the offer of replacement coal. However, TVA is not obligated to accept offers of replacement coal for the Destination Plants. In the case of multiple Destination Plants, a termination under this subsection e. shall be effective only and to the tonnage scheduled for the affected plant at the time it is determined that normal operations cannot be accomplished.Analysis:

Quality and Specifications. a. All coal delivered under this contract will be ****** # SO2 coal, except that TVA shall have the right, by providing Contractor at least 180 days prior written notice, to require that up to ****** tons of the quantity during a designated twelve month period be ****** # SO2 coal, which shall be delivered on a monthly ratable basis during such twelve month period. TVA may give such notice on more than one occasion during the term of the contract, but no part of the affected twelve month periods may overlap. ****** INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. b. All ******# SO2 coal delivered under this contract from the Xxxxxxx County Coal, LLC Mine, Warrior Coal, LLC Mine, or Xxxxxxx County Coal, LLC Mine shall conform to the following Typical Analyses Analysis on a quarterly average as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis: . GUARANTEE AND TYPICAL ANALYSIS1 REJECTION/SUSPENSION ANALYSIS (1) SPECIFICATIONS (3) ------------ -------------------- Lbs SPECIFICATIONS3 Lbs. of SO(2) SO2 per million Btu (2) Btu2 ****** lbs lbs. Not more than ****** lbs Lbs. Total Moisture ****** % Not more than ****** % Sulfur (as-received max.) ****** % Not more than ****** % Sulfur (as received min.) ****** % Not less than ****** % Ash (as-received) ****** % Not more than ****** % Ash (dry basis) ****** % Not more than ****** % Btu/lb lb. (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial ****** degree F ºF Not [more/less] less than ****** degree F Softening (HemisphericalH=W)) ****** degree F ºF Not [less] less than ****** degree F ºF Hemispherical (H= 1/2W) ****** ºF Not less than ****** ºF Fluid ****** degree F ºF Not [more/less] less than ****** degree F ºF Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Hardxxxxx XxxexXxxxxxxxx Index) ****** Not less than ****** Chlorine (dry basis)4 ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustments under Section 8. (2) At 97.5%. (3) Failure to comply with any of these specifications, other than the Chlorine specification, shall be a basis for rejections and suspensions or termination pursuant to Subsections 9.f. and 9.g. (4) Determination of Chlorine, for Guarantee and Typical Analysis and for Rejection/Suspension Specifications, shall be on a monthly weighted average basis of all ******# SO2 ****** INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. coal delivered, provided, however, TVA may reject any individual shipment for which the chlorine (dry basis) exceeds ******% for shipments to any plants other than Widows Creek, and for shipments to Widows Creek TVA may reject any individual shipment for which the chlorine (dry basis) exceeds ******%. c. All ******# SO2 coal delivered under this contract from the White County Coal, LLC Mine shall conform to the following Typical Analysis on a quarterly average as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis. GUARANTEE AND TYPICAL ANALYSIS1 REJECTION/SUSPENSION SPECIFICATIONS3 Lbs. of SO2 per million Btu2 ****** lbs. Not more than ****** Lbs. Total Moisture ****** % Not more than ****** % Sulfur (as-received max.) ****** % Not more than ****** % Ash (as-received) ****** % Not more than ****** % Btu/lb. (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial ****** ºF Not less than ****** Softening (H=W)) ****** ºF Not less than ****** ºF Hemispherical (H= 1/2W) ****** ºF Not less than ****** ºF Fluid ****** ºF Not less than ****** ºF Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Xxxxxxxxx Index) ****** Not less than ****** Chlorine (dry basis)4 ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustments under Section 8. (2) At 97.5%. (3) Failure to comply with any of these specifications, other than the Chlorine specification, shall be a basis for rejections and suspensions or termination pursuant to Subsections 9.f. and 9.g. ****** INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. (4) Determination of Chlorine, for Guarantee and Typical Analysis and for Rejection/Suspension Specifications, shall be on a monthly weighted average basis of all ******# SO2 coal delivered, provided, however, TVA may reject any individual shipment for which the chlorine (dry basis) exceeds ******% for shipments to any plants other than Widows Creek, and for shipments to Widows Creek TVA may reject any individual shipment for which the chlorine (dry basis) exceeds ******%. d. All ******# SO2 coal delivered under this contract shall conform to the following Typical Analysis on a quarterly average as determined by sampling and analyses performed in accordance with Section 7, Sampling and Analysis. GUARANTEE AND TYPICAL ANALYSIS1 REJECTION/SUSPENSION SPECIFICATIONS3 Lbs. of SO2 per million Btu2 ****** lbs. Not more than ****** Lbs. Total Moisture ****** Not more than ****** % Sulfur (as-received max.) ****** % Not more than ****** % Ash (as-received) ****** % Not more than ****** % Btu/lb. (as-received) ****** Not less than ****** Ash fusion temperature reducing atmosphere Initial Deformation ****** ºF Not less than ****** Softening (H=W) ****** ºF Not less than ****** ºF Hemispherical (H= 1/2W) ****** ºF Not less than ****** ºF Fluid ****** ºF Not less than ****** ºF Volatile Matter (dry basis) ****** % Not less than ****** % Grindability (Xxxxxxxxx Index) ****** Not less than ****** Chlorine (dry basis) ****** % Not more than ****** % (1) The Typical Analysis shall be used for the quality adjustment adjustments under Section 8. (2) At 97.5%. ******* INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. (3) Failure to comply with any of these specifications shall be a basis for rejections and suspensions or termination pursuant to Subsections 9.c9.f. and 9.d9. b. The coal as-received shall have a top size not greater than ****** or less than ******, with at least ****** of the product larger than ******, and with at least ****** of the product larger than ******. Such sizes shall be determined by using screens with square openings. Coal shall not exhibit a temperature in excess of ******, and it shall be substantially free from milling impurities and scrap such as drill bits, pieces of scrap metal or plate, plastic, rubber, rope, cloth, wire, cable, bone, slate, earth, rock, pyrite, wood or water, which can be kept out or removed with the exercise of reasonable care during mining, preparation, and loading. It shall be loaded in a manner that will ensure reasonably uniform consistency as to size and quality and shall not contain slurry pond material (washer tailings), gob pile material (mine refuse), petroleum-coke, oxidized coal, or blends of such materials, or create excessive amounts of dust during the unloading and transferring to storage. c. If any coal delivered fails to meet any of the Rejection/Suspension Specifications on the basis of visual inspection or laboratory, analysis. TVA may reject the coal at the source, loading point, any transloading or Destination Plant. TVA's acceptance of any amount of coal which does not meet these requirements shall not constitute a waiver of any right which TVA may have under this contract or as provided by law on account of the delivery of such coal. In case of rejection of any coal in accordance with this section, TVA will immediately notify Contractor of the rejection and of the cause of rejection. In the case of coal rejected after loading, unless the cause for rejection is corrected, Contractor shall promptly remove the coal from the carrier's equipment or from TVA premises, as the case may be at Contractor's expense. Contractor shall reimburse TVA for any additional transportation costs, demurrage, equipment repair costs, or handling expenses incurred by TVA in connection with any such rejection. TVA shall not be under any obligation or liability to assist Contractor in any corrective actions required to remedy the cause for rejection. d. If any coal delivered fails to meet the Rejection/Suspension Specifications stated in Subsection 9.a. or the requirements of Subsection 9.b., TVA shall have the right to refuse to accept further deliveries from any or all mine sources authorized under the contract until Contractor provides assurance satisfactory to TVA that Contractor will comply with the Rejection/Suspension Specifications and the Subsection 9.b. requirements. Such assurance must be given in writing within seven (7) days after the beginning of such suspension. If Contractor fails to provide such assurance within the time specified or provides such assurance but does not correct the deficiencies that resulted in the breach of Subsection 9.a. or Subsection 9.b. within seven (7) days after giving such assurance, TVA may then terminate Contractor's right to make further deliveries under this contract. However, if TVA has suspended Contractors' right to make further deliveries under the above provision two (2) times during any twelve-month period of the contract term, TVA shall have the immediate right, at its option, upon the third such violation, to terminate Contractors' right to make further deliveries under this contract. Contractor shall be responsible for all costs or damages incurred by TVA resulting from Contractor's failure to comply with the contract requirements. Damages or excess reprocurement cost may be determined in accordance with Section 11, Remedies. e. If the normal operations in conformance with the design capabilities of the Destination Plant cannot be accomplished with the coal delivered hereunder, although the coal complies with the quality and size requirements of this Section 9, TVA may then terminate Contractor's right to make further deliveries, and this contract shall be canceled without further obligation or liability to either party. In the event of such a termination. the Contractor may be given a reasonable opportunity to remedy the cause for termination, which may include the offer of replacement coal. However, TVA is not obligated to accept offers of replacement coal for the Destination Plants. In the case of multiple Destination Plants, a termination under this subsection e. shall be effective only and to the tonnage scheduled for the affected plant at the time it is determined that normal operations cannot be accomplished.