Common use of Compensation Reduction Clause in Contracts

Compensation Reduction. 15.1 Before applying the Compensation Reduction set out below, the Supplier shall take all necessary efforts to achieve the Performance Guarantees. The Compensation Reduction shall only apply once it becomes clear that notwithstanding these efforts the Performance Guarantees cannot be reasonably achieved within the (6) six-month period in accordance with Section 8.2. Any non-compliance of the System included in Section 15.2 will only be compensated once in accordance with the Compensation Reduction set out below. 15.2 Non-compliance of the System with the Performance Guarantees, (i) following expiry of the (6) six-month period in accordance with Section 8.2, shall result in compensation by the Supplier in the form of a reduction of the final instalment of the Compensation of the respective System to be paid in accordance with Section 13.4, as follows (the “Compensation Reduction”): i. [***] 15.3 Non-compliance with the Performance Guarantees within the range set out above can only result in a Compensation Reduction and will not result in or be regarded as a Defect or Material Default and therefore can in no event be invoked nor lead to a termination or right of Rescission of the Agreement. Non-compliance with the Performance Guarantees under the range set out above shall result in a Compensation Reduction and Shall also result in or be regarded as a Defect or Material Default and therefore can be invoked or lead to termination or right of Rescission of the Agreement.

Compensation Reduction. 15.1 Before applying the Compensation Reduction set out below, the Supplier shall take all necessary efforts to achieve the Performance Guarantees. The Compensation Reduction shall only apply once it becomes clear that notwithstanding these efforts the Performance Guarantees cannot be reasonably achieved within the eight (6) six-month 8) week period in accordance with Section 8.2. Any non-compliance of the System included in Section 15.2 will only be compensated once per installation in accordance with the Compensation Reduction set out below. 15.2 Non-compliance of the System with the Performance Guarantees, (i) following expiry of the eight (6) six-month 8) week period in accordance with Section 8.2, shall result in compensation by the Supplier in the form of a reduction of the final instalment of the Compensation of the respective System to be paid in accordance with Section 13.4, as follows (the “Compensation Reduction”): i. a) [***] b) [***] 15.3 Non-compliance with the Performance Guarantees within the range set out above can only result in a Compensation Reduction and will not result in or be regarded as a Defect or Material Default and therefore can in no event be invoked nor lead to a termination or right of Rescission of the Agreement. Non-compliance with the Performance Guarantees under the range set out above shall result in a Compensation Reduction and Shall also result in or be regarded as a Defect or Material Default and therefore can be invoked or lead to termination or right of Rescission of the Agreement.