Common use of Reliability Bonus Clause in Contracts

Reliability Bonus. If, during the EPC Reliability Bonus Test, the Project functions so that the EPC Contractor is entitled to an “Increased Throughput Bonus,” as such term is defined in the EPC Contract, then Seller shall be entitled to a bonus under this Contract in an amount equal to * dollars ($*) for an aggregate average production level of at least * per day across all four (4) MHFs and an additional * dollars ($*) for each additional whole * per day produced above an aggregate average production level of * per day across all four (4) MHFs; provided, however, that during such EPC Reliability Bonus Test, no MHF shall produce less than * per day (and if any MHF falls below this minimum amount no Reliability Bonus can be earned as a result of such EPC Reliability Bonus Test); provided further, that no production by any MHF above * per day shall be included in the production calculation; provided further that activated carbon produced must meet the Iodine Number Performance Guarantee specified in Table 1-1 and have a yield * in order to be included in determining the production amounts; and provided further, that for purposes of Seller’s eligibility for the bonus under this Article 11, the full Project (including the balance of plant for which EPC Contractor is responsible) shall be included in determining entitlement to such bonus, and Seller shall not be entitled to relief, credit or adjustment based upon performance failures or other performance problems due in whole or in part to the Project provided under the EPC Contract or which is otherwise part of EPC Contractor’s scope of work, it being the intent of the Parties that such bonus shall only be earned if the complete Project demonstrates such increased reliability (the “Reliability Bonus”). Seller shall invoice Purchaser for any Reliability Bonus earned by it pursuant to this Article 11 upon completion of the EPC Reliability Bonus Test. Upon verification by Purchaser that Seller is entitled to the Reliability Bonus amount so invoiced, Purchaser shall pay the Performance Bonus amount in accordance with the payment procedures and protocol set forth in Article 4 (“Payments and Liens”), excepting only that no retainage on such Reliability Bonus amount shall be withheld.

Reliability Bonus. If, during the EPC Reliability Bonus Test, the Project functions so that the EPC Contractor is entitled to an “Increased Throughput Bonus,” as such term is defined in the EPC Contract, then Seller shall be entitled to a bonus under this Contract in an amount equal to * dollars ($*) for an aggregate average production level of at least * per day across all four (4) MHFs and an additional * dollars ($*) for each additional whole * per day produced above an aggregate average production level of * per day across all four (4) MHFs; provided, however, that during such EPC Reliability Bonus Test, no MHF shall produce less than * per day (and if any MHF falls below this minimum amount no Reliability Bonus can be earned as a result of such EPC Reliability Bonus Test); provided further, that no production by any MHF above * per day shall be included in the production calculation; provided further that activated carbon produced must meet the Iodine Number Performance Guarantee specified in Table 1-1 and have a yield (*) of at least * in order to be included in determining the production amounts; and provided further, that for purposes of Seller’s eligibility for the bonus under this Article 11, the full Project (including the balance of plant for which EPC Contractor is responsible) shall be included in determining entitlement to such bonus, and Seller shall not be entitled to relief, credit or adjustment based upon performance failures or other performance problems due in whole or in part to the Project provided under the EPC Contract or which is otherwise part of EPC Contractor’s scope of work, it being the intent of the Parties that such bonus shall only be earned if the complete Project demonstrates such increased reliability (the “Reliability Bonus”). Seller shall invoice Purchaser for any Reliability Bonus earned by it pursuant to this Article 11 upon completion of the EPC Reliability Bonus Test. Upon verification by Purchaser that Seller is entitled to the Reliability Bonus amount so invoiced, Purchaser shall pay the Performance Bonus amount in accordance with the payment procedures and protocol set forth in Article 4 (“Payments and Liens”), excepting only that no retainage on such Reliability Bonus amount shall be withheld.