Common use of Performance Incentive Clause in Contracts

Performance Incentive. 4.12.1 If the Seller delivers Coal to the Purchaser in excess of ninety (90%) of the ACQ for a Year, the Purchaser shall pay the Seller an incentive (“Performance Incentive”) for the excess Coal supplied: Percentage of actual deliveries Percentage of Incentive at the rate of weighted average Notified Price of Grades of Coal supplied Above 90% but up to 95% of ACQ 0 - 10 Above 95% but up to 100% of ACQ 10 - 20 Actual Deliveries = Actual Quantity [in tonnes] of Coal delivered by the Seller for the relevant Year. 4.12.2 The incentive payable shall be calculated in the same manner as done slab-wise for computation of income-tax. However, unlike income tax, the percentage of incentive shall grow on linear basis within each slab. 4.12.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.12.1, shall apply pro-rata.