Common use of Penalty Amount Clause in Contracts

Penalty Amount. In the event that a Completion does not occur on or before the applicable Milestone Date specified in Section 2.1(e), then each calendar day until such Completion has occurred, the Penalty Amount will be increased by Three Hundred Dollars ($300.00) for each Megawatt for which Megawatt Space has not been made available and passed its Electrical Testing Inspection; provided, however, that the Penalty Amount shall under no circumstances exceed One Million Seven Hundred Thousand Dollars ($1,700,000). Notwithstanding anything in Section 2.1(b) or Exhibit D to the contrary, in the event that the Penalty Amount is greater than Zero Dollars ($0.00), Purchaser may, by written notice delivered to Seller, reduce the aggregate amount of the Cash Payments payable in one or more future Installments by an amount equal to such Penalty Amount (with such reduction to be allocated among such Installments in the discretion of Purchaser as notified to Seller in writing). The Warrantors acknowledge and agree that the Warrantors (excluding Company) shall be jointly and severally liable for the Penalty Amount.

Penalty Amount. In the event that a Completion does not occur on or before the applicable Milestone Date specified in Section 2.1(e), then each calendar day until such Completion has occurred, the Penalty Amount will be increased by Three Hundred Dollars ($300.00) for each Megawatt for which Megawatt Space has not been made available and passed its Electrical Testing Inspection; provided, however, that the Penalty Amount shall under no circumstances exceed One Million Seven Three Hundred Thousand Dollars ($1,700,0001,300,000). Notwithstanding anything in Section 2.1(b) or Exhibit D to the contrary, in the event that the Penalty Amount is greater than Zero Dollars ($0.00), Purchaser may, by written notice delivered to Seller, reduce the aggregate amount of the Cash Payments payable in one or more future Installments by an amount equal to such Penalty Amount (with such reduction to be allocated among such Installments in the discretion of Purchaser as notified to Seller in writing). The Warrantors acknowledge and agree that the Warrantors (excluding Company) shall be jointly and severally liable for the Penalty Amount.