On-Ground Storage. If after Satellite Pre-Shipment Review of the Satellite, Purchaser places the Satellite in on-ground storage, Contractor shall not be entitled to any Scheduled Orbital Performance Incentives or any Quarterly Orbital Performance Incentives during the initial nine (9) months of such on-ground storage. If Purchaser places the Satellite in on-ground storage (other than due to causes substantially attributable to Contractor and to the extent not otherwise excused under Articles 17 or 18; for clarification, Contractor shall not be liable hereunder for any delay in delivery of the SBAS Operational Component (as defined in the SBN/SBAS Contract)) for more than nine (9) months, Contractor shall be paid the Scheduled Orbital Performance Incentive and the Quarterly Orbital Performance Incentives at the same rate as Contractor would be earning such incentives if the Satellite were in service, commencing at the end of such nine (9) month period (with the initial Scheduled Orbital Performance Incentive payment to be made at the end of month ten (10) and the initial Quarterly Orbital Performance Incentives payment to be made at the end of month twelve (12)); provided, however, such amounts shall be subject to a refund as described below. During each month of the initial nine (9) month storage period, unless Purchaser’s placement of the Satellite in storage is due to causes substantially attributable to Contractor and not otherwise excused under Articles 17 or 18; for clarification, Contractor shall not be liable hereunder for any delay in the delivery of the SBAS Operational Component), in addition to other customary storage charges to be agreed, Purchaser shall pay Contractor the non-refundable sum of [***] [***] U.S. Dollars (US$[***]) per month of storage, representing interest on the unpaid Orbital Performance Incentives. Once the Satellite is taken out of on-ground storage, (i) Purchaser’s obligation to pay interest pursuant to this Article 13.2.5.B shall terminate, and (ii) Purchaser shall not be obligated to pay any Orbital Performance Incentives, unless or until (i) the Satellite is subsequently placed into on-ground storage (other than due to causes substantially attributable to Contractor), in which case this clause shall apply as if the Satellite had remained in storage and/or (ii) Contractor has earned such Orbital Performance Incentives following the actual Acceptance of the Satellite. If the Satellite is Launched after Purchaser has paid any Orbital Performance Incentives under this Article 13.2.5.B, such amounts shall be deemed a pre-payment of the corresponding Orbital Performance Incentives due after actual Acceptance in accordance with Article 10.2. To the extent that, after actual Acceptance, Contractor does not earn the Orbital Performance Incentives pre-paid by Purchaser under this Article 13.2.5.B, Contractor shall refund all or a portion of the pre-paid Orbital Performance Incentives, as applicable, plus interest on such refund, calculated at a rate of eight percent (8%) per annum, compounded annually, from the time such corresponding Orbital Performance Incentives were pre-paid by Purchaser. Contractor shall pay such refund and interest on the earliest date upon which the invoices for such Orbital Performance Incentive would have been issued.
Appears in 1 contract
On-Ground Storage. If after Satellite Pre-Shipment Review of the Satellite, Purchaser places the Satellite in on-ground storage, Contractor shall not be entitled to any Scheduled Orbital Performance Incentives or any Quarterly Orbital Performance Incentives during the initial nine (9) months of such on-ground storage. If Purchaser places the Satellite in on-ground storage (other than due to causes substantially attributable to Contractor and to the extent not otherwise excused under Articles 17 or 18; for clarification, Contractor shall not be liable hereunder for any delay in delivery of the SBAS Operational Component (as defined in the SBN/SBAS Contract)) for more than nine (9) months, Contractor shall be paid the Scheduled Orbital Performance Incentive and the Quarterly Orbital Performance Incentives at the same rate as Contractor would be earning such incentives if the Satellite were in service, commencing at the end of such nine (9) month period (with the initial Scheduled Orbital Performance Incentive payment to be made at the end of month ten (10) and the initial Quarterly Orbital Performance Incentives payment to be made at the end of month twelve (12)); provided, however, such amounts shall be subject to a refund as described below. During each month of the initial nine (9) month storage period, unless Purchaser’s placement of the Satellite in storage is due to causes substantially attributable to Contractor and not otherwise excused under Articles 17 Articles17 or 18; for clarification, Contractor shall not be liable hereunder for any delay in the delivery of the SBAS Operational Component), in addition to other customary storage charges to be agreed, Purchaser shall pay Contractor the non-refundable sum of [***] [***] U.S. Dollars (US$[***]) per month of storage, representing interest on the unpaid Orbital Performance Incentives. Once the Satellite is taken out of on-ground storage, (i) Purchaser’s obligation to pay interest pursuant to this Article 13.2.5.B shall terminate, and (ii) Purchaser shall not be obligated to pay any Orbital Performance Incentives, unless or until (i) the Satellite is subsequently placed into on-ground storage (other than due to causes substantially attributable to Contractor), in which case this clause shall apply as if the Satellite had remained in storage and/or (ii) Contractor has earned such Orbital Performance Incentives following the actual Acceptance of the Satellite. If the Satellite is Launched after Purchaser has paid any Orbital Performance Incentives under this Article 13.2.5.B, such amounts shall be deemed a pre-payment of the corresponding Orbital Performance Incentives due after actual Acceptance in accordance with Article 10.2. To the extent that, after actual Acceptance, Contractor does not earn the Orbital Performance Incentives pre-paid by Purchaser under this Article 13.2.5.B, Contractor shall refund all or a portion of the pre-paid Orbital Performance Incentives, as applicable, plus interest on such refund, calculated at a rate of eight percent (8%) per annum, compounded annually, from the time such corresponding Orbital Performance Incentives were pre-paid by Purchaser. Contractor shall pay such refund and interest on the earliest date upon which the invoices for such Orbital Performance Incentive would have been issued.
Appears in 1 contract