Augmentation of Penalty Payments Clause Samples
The Augmentation of Penalty Payments clause establishes that penalty payments owed under the contract may be increased under certain conditions. Typically, this clause outlines specific triggers or circumstances—such as repeated breaches, inflation adjustments, or delays—that result in higher penalty amounts. Its core practical function is to incentivize compliance and deter repeated or prolonged violations by making non-compliance progressively more costly for the breaching party.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon PEM and its counsel for accurate, good faith reporting to Davia of the nature and amounts of relevant sales activity. If within nine (9) months of the Effective Date, Davia discovers and presents to PEM evidence that the Covered Products have been distributed by PEM in sales volumes materially different (more than 25%) than those identified by PEM prior to execution of this Agreement, then PEM shall be liable for an additional penalty amount of up to $10,000.00. PEM shall also be liable, in accordance with the requirements of Code of Civil Procedure section 1021.5 for any reasonable, additional attorney fees expended by Davia in discovering such additional retailers or sales. Davia agrees to provide PEM with a written demand for all such additional penalties and attorney fees under this Section. After service of such demand, PEM shall have thirty (30) days to meet and confer with plaintiff and either (1) agree to the amount of fees and penalties owing by PEM and submit such payment to Davia in accordance with the method of payment of penalties and fees identified in Section 4.1 and 4.4 or (2) provide any evidence and argument against additional civil penalties to plaintiff. Should this thirty (30) day period pass without any resolution between the parties and payment of such additional penalties and fees, Davia shall be entitled to file a formal legal claim for additional civil penalties pursuant to this Section. The prevailing party on any claim filed for additional civil penalties pursuant to this Section shall be entitled to all reasonable attorney fees and costs, in accordance with the requirements of Code of Civil Procedure section 1021.5, relating to such claim.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon PPI for accurate, good faith reporting to Davia of the nature and amounts of relevant sales activity. If within nine (9) months of the Effective Date, ▇▇▇▇▇ discovers and presents evidence to counsel for PPI that the Covered Products have been distributed in California in sales volumes materially different (more than 25%) than those identified by PPI prior to execution of this Agreement, and PPI does not provide Davia with competent and credible evidence to dispute this claim, then PPI shall be liable for an additional penalty amount of $10,000.00. Davia agrees to provide counsel for PPI with a written demand for all such additional penalties and attorney fees under this Section. After service of such demand, PPI shall have thirty (30) days to either present evidence to counter this claim or to agree to the amount of fees and penalties owed by PPI and submit such payment to Davia in accordance with the method of payment of penalties and fees identified in Sections 4.1 and 4.4. Should this thirty (30) day period pass without any such resolution between the parties and payment of such additional penalties and fees, Davia shall be entitled to file a formal legal claim for the additional civil penalties pursuant to this Section and the prevailing party to such action shall be entitled to all reasonable attorney fees and costs relating to such claim.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon Gammonvillage for accurate, good faith reporting to Davia of the nature and amounts of relevant sales activity. If within nine (9) months of the Effective Date, ▇▇▇▇▇ discovers and presents evidence to counsel for Gammonvillage that the Covered Products have been distributed in California in sales volumes materially different (more than 25%) than those identified by Gammonvillage prior to execution of this Agreement, and Gammonvillage does not provide Davia with competent and credible evidence to dispute this claim, then Gammonvillage shall be liable for an additional penalty amount of $10,000.00. ▇▇▇▇▇ agrees to provide counsel for Gammonvillage with a written demand for all such additional penalties and attorney fees under this Section. After service of such demand, Gammonvillage shall have thirty (30) days to either present evidence to counter this claim or to agree to the amount of fees and penalties owing by Gammonvillage and submit such payment to Davia in accordance with the method of payment of penalties and fees identified in Section 4.1 and 4.4. Should this thirty (30) day period pass without any such resolution between the parties and payment of such additional penalties and fees, Davia shall be entitled to file a formal legal claim for the additional civil penalties pursuant to this Section and the prevailing party to such action shall be entitled to all reasonable attorney fees and costs relating to such claim.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon Meridian and its counsel for accurate, good faith reporting to Davia of the nature and amounts of sales activity of the Covered Products. If within nine (9) months of the Effective Date, Davia discovers and presents to Meridian evidence that the Covered Products have been distributed in California by Meridian in sales volumes materially different (more than 25%) than those identified by Meridian prior to execution of this Agreement, then Meridian shall be liable for an additional penalty amount of $10,000.00. Meridian shall also pay reasonable, additional attorney fees expended by Davia in discovering such additional sales and reporting them to Meridian in accordance with this section. Davia agrees to provide Meridian with a written demand for such additional penalties and attorney fees under this Section. After service of such demand, Meridian shall have thirty (30) days to pay the additional civil penalties amount demanded or negotiate with Davia as to an agreed amount of fees and penalties to be paid in accordance with the method of payment of penalties and fees identified in Section 4.4. Should the parties dispute whether Davia has provided appropriate evidence of “sales volumes materially different (more than 25%) than those identified by Meridian prior to execution of this Agreement”, then the parties shall have the issued decided by a mutually agreed upon Mediator, each side to bear its own costs of the mediation. Should mediation not be successful in resolving the matter then, within thirty (30) days of the mediation, Davia shall be entitled to file an action for breach of this Agreement in which the sole issues for resolution by the Court shall be: (1) whether Covered Products were distributed in California by Meridian in sales volumes materially different (more than 25%) than those identified by Meridian prior to execution of this Agreement; and (2) if the Court finds in favor of Davia on issue no. 1, the amount of legal fees, if any, Davia is entitled to recover for discovering the additional sales and reporting them to Meridian in accordance with this section. In any action brought under this Section 4.2, the prevailing party shall be entitled to recover its attorney’s and other fees and costs.
Augmentation of Penalty Payments. 11 For purposes of the penalty assessment under this Agreement, Plaintiff is relying entirely 12 upon Defendant for accurate, good faith reporting to Plaintiff of the nature and amounts of relevant 13 sales activity and retailer BevMo’s compliance with the warning obligations of this Agreement. If 14 within nine (9) months of the Effective Date, Plaintiff discovers and presents to Defendant either (1) 15 evidence that any type of Covered Product has been distributed by Defendant in sales volumes 16 materially different (more than 15%) than those identified by Defendant prior to execution of this 17 Agreement or (2) that after completion of the actions set forth in Section 3.2, BevMo is selling the 18 Covered Product in California without a warning pursuant to this Agreement, then Formation shall 19 be liable for an additional penalty amount of up to $65.00 for each unit of Covered Product sold in 20 California prior to execution of this Agreement but not identified by Formation to Plaintiff or for each 21 unit of Covered Product sold by BevMo in California without a warning after more than five (5) units 22 are found without the requisite warning. Defendant shall also be liable for any reasonable, additional 23 attorney fees expended by Plaintiff in discovering applicable California sales without warning. 24 Plaintiff agrees to provide Defendant with a written demand for all such additional penalties and 25 attorney fees under this Section. After service of such demand, the Parties shall meet and confer in 26 good faith to assess the information. If within twenty (20) days Defendant agrees Plaintiff has 27 documented a violation of this Section, the Parties shall have and additional ten (10) days to agree to 28 the amount of fees and penalties owing. Thereafter, Defendant shall have five (5) days to submit such 1 payment to Plaintiff in accordance with the method of payment of penalties and fees identified in
Augmentation of Penalty Payments. 21 For purposes of the penalty assessment under this Agreement, ▇▇▇▇▇ is relying entirely 22 upon ▇▇▇▇▇▇ and its counsel for accurate, good faith reporting to Davia of the nature and 23 amounts of relevant sales activity. If within nine (9) months of the Effective Date, Davia 24 discovers and presents to ▇▇▇▇▇▇ evidence that the Covered Products have been distributed 25 by ▇▇▇▇▇▇ in sales volumes to California materially different than those identified by 26 ▇▇▇▇▇▇ prior to execution of this Agreement, then the Parties shall have a period of 30 days to 27 meet and confer concerning such evidence, and ▇▇▇▇▇▇ shall have the opportunity to present to 1 Plaintiff any evidence to the contrary. If the Parties can agree on an appropriate disposition, 2 then ▇▇▇▇▇▇ shall submit payment of any agreed additional civil penalties and attorney’s fees 3 related to investigating and alleging sales activity materially different from that disclosed by 4 ▇▇▇▇▇▇ prior to the execution of this Agreement within 30 days in accordance with the method
Augmentation of Penalty Payments. 10 For purposes of the penalty assessment under this Agreement, Davia is relying upon 11 ▇▇▇▇▇▇▇▇▇ and their counsel for accurate, good faith reporting to Davia of the nature and amounts of 12 sales activity of the Covered Products during the relevant period. If within nine (9) months of the 13 Effective Date, ▇▇▇▇▇ discovers and presents to ▇▇▇▇▇▇▇▇▇ evidence that ▇▇▇▇▇▇▇▇▇ materially 14 misrepresented its quantity of sales of Covered Products to California Customers during the 15 relevant period, and ▇▇▇▇▇▇▇▇▇ does not provide Davia with evidence to dispute this claim, then 16 ▇▇▇▇▇▇▇▇▇ shall be liable for an additional penalty amount of $10,000.00. ▇▇▇▇▇▇▇▇▇ shall also pay 17 reasonable, additional attorney fees expended by ▇▇▇▇▇ in discovering such additional sales and 18 reporting them to ▇▇▇▇▇▇▇▇▇ in accordance with this section. ▇▇▇▇▇ agrees to provide ▇▇▇▇▇▇▇▇▇ with
19 a written demand for such additional penalties and attorney fees under this Section. After service 20 of such demand, ▇▇▇▇▇▇▇▇▇ shall have 45 days to either present evidence to counter this claim or 21 agree to the amount demanded or negotiated with ▇▇▇▇▇, to be paid in accordance with the method 22 of payment of penalties and fees identified in Section 4.4. Should the parties dispute whether ▇▇▇▇▇ 23 has provided appropriate evidence to support her claim, then the parties shall have the issue 24 decided by a mutually agreed upon Mediator, each side to bear its own costs of the mediation.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon Exclusive Imports and its counsel for accurate, good faith reporting to Davia of the nature and amounts of relevant sales activity. If within nine (9) months of the Effective Date, Davia discovers and presents to Exclusive Imports evidence that the Covered Products have been distributed by Exclusive Imports in sales volumes materially (greater than 15%) different than those identified by Exclusive Imports prior to execution of this Agreement, then Exclusive Imports shall be liable for an additional penalty amount of $10,000 or any other amount ordered by the Court. Exclusive Imports shall also be liable for any reasonable, additional attorney fees, up to a limit of $10,000 or other amount set by the Court, expended by Davia in discovering such additional retailers or sales. Davia agrees to provide Exclusive Imports with a written demand for all such additional penalties and attorney fees under this Section. After service of such demand, Exclusive Imports shall have thirty (30) days to agree to the amount of fees and penalties owing by Exclusive Imports and submit such payment to Davia in accordance with the method of payment of penalties and fees identified in Section 4.1 and 4.4. Should this thirty (30) day period pass without any such resolution between the parties and payment of such additional penalties and fees, Davia shall be entitled to file a formal legal claim for additional civil penalties pursuant to this section. The prevailing party on any claim filed pursuant to this section shall be entitled to its reasonable attorney’s fees and costs.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon Berkshire Blanket and its counsel for accurate, good faith reporting to Davia of the nature and amounts of relevant sales activity. If within nine (9) months of the Effective Date, Davia discovers and presents to Berkshire Blanket evidence that the Covered Products have been distributed by Berkshire Blanket to Bed, Bath and Beyond in sales volumes materially (more than 25%) different than those identified by Berkshire Blanket prior to execution of this Agreement, then Berkshire Blanket shall be liable for an additional penalty amount of $10,000.00. Berkshire Blanket shall also be liable, in accordance with the requirements of Code of Civil Procedure section 1021.5 for any reasonable, additional attorney fees expended by Davia in discovering such additional retailers or sales. Davia agrees to provide Berkshire Blanket with a written demand for all such additional penalties and attorney fees under this Section, including Davia’s evidence supporting any claim for a materially different sales volume. After service of such demand, Berkshire Blanket shall have thirty (30) days to agree to the amount of fees and penalties owing by Berkshire Blanket and submit such payment to Davia in accordance with the method of payment of penalties and fees identified in Section 4.1 and 4.4. Should this thirty (30) day period pass without any such resolution between the parties and payment of such additional penalties and fees, Davia shall be entitled to file a formal legal claim for additional civil penalties pursuant to this Section. The prevailing party on any claim filed pursuant to this section shall be entitled to its reasonable fees and costs.
Augmentation of Penalty Payments. For purposes of the penalty assessment under this Agreement, Davia is relying entirely upon West Pacific and its counsel for accurate, good faith reporting to Davia of the nature and amounts of sales activity of the Covered Products. If within nine (9) months of the Effective Date, Davia discovers and presents to West Pacific evidence that the Covered Products have been distributed in California by West Pacific in sales volumes materially different (more than 25%) than those identified by West Pacific prior to execution of this Agreement, then West Pacific shall be liable for an additional penalty amount of $10,000.00. West Pacific shall also pay reasonable, additional attorney fees expended by Davia in discovering such additional sales and reporting them to West Pacific in accordance with this section. Davia agrees to provide West Pacific with a written demand for such additional penalties and attorney fees under this Section. After service of such demand, West Pacific shall have thirty (30) days to pay the additional civil penalties amount demanded or negotiate with Davia as to an agreed amount of fees and penalties to be paid in accordance with the method of payment of penalties and fees identified in Section 4.4. Should the Parties fail to reach an agreement within thirty (30) days, Davia shall be entitled to file an action for breach of this Agreement in which the sole issues for resolution by the Court shall be: (1) whether Covered Products were distributed in California by West Pacific in sales volumes materially different (more than 25%) than those identified by West Pacific prior to execution of this Agreement; and (2) if the Court finds in favor of Davia on issue no. 1, the amount of legal fees Davia is entitled to recover for discovering the additional sales and reporting them to West Pacific in accordance with this section. In any action brought under this Section 4.2, the prevailing party shall be entitled to recover its attorney’s and other fees and costs.