Common use of Compensation for short delivery/lifting Clause in Contracts

Compensation for short delivery/lifting. 1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: 1 Less than 100% but upto 50% of ACQ Nil NIL 2 Below 50% of ACQ 10% 0.1 x P x [((100-LD or LL) – 50)/100] x ACQ) Where P shall be the simple average of base prices grades as shown in the Schedule III. * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement The Level of Delivery/ Level of Lifting that would cause compensation for the Failed Quantity payable by the defaulting Party, as mentioned in the table above, may be reviewed by the Seller in light of its Coal availability and Coal commitments, and amended accordingly on year-to-year basis at the sole discretion of the Seller during the term of the Agreement.

Compensation for short delivery/lifting. 1 3.6.1 If for a Year, the Level of Delivery by the bythe Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: 1 Less than 100% but upto 50% of ACQ Nil NIL 2 Below 50% of ACQ 10% 0.1 x P x [((100-LD or LL) – 50)/100] x ACQ) Where )* Where, P shall be the simple = Simple average of base prices grades the Base Prices of Grades, as shown in the Schedule III. II * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement The Level of Delivery/ Level of Lifting that would cause compensation for the Failed Quantity payable by the defaulting Party, as mentioned in the table above, may be reviewed by the Seller in light of its Coal availability and Coal commitments, and amended accordingly on year-to-year basis at the sole discretion of the Seller during the term of the Agreement.