Common use of Performance Incentive Clause in Contracts

Performance Incentive. 4.11.1 If the Seller delivers Coal to the Purchaser in excess of 90 (ninety) percent of the ACQ for a Year, the Purchaser shall pay the Seller an incentive (“Performance Incentive”) for the excess Coal supplied: Above 90% but up to 95% of ACQ 0-10 Above 95% but up to 100% of ACQ 10-20 Above 100% of ACQ 40 Actual Deliveries = Actual Quantity [in tonnes] of Coal delivered by the Seller for the relevant Year. 4.11.2 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. 4.11.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.11.1, shall apply pro-rata. 4.11.4 In case of supply of coal beyond the ACQ, the Purchaser would be required to furnish a certificate from CEA regarding use of such coal within its Power Station. 5.1 The quality of Coal delivered/to be delivered shall be of the grade(s)/size(s)as per the SCHEDULE III. 5.2 The Seller shall make adequate arrangements to assess the quality and monitor the same to endeavour that un-graded coal (GCV of less than 1500 Kcal/kg for non-coking coal) is not loaded into the Purchaser’s Containers. If the Seller sends any quantity of such Coal, the Purchaser shall limit the payment of cost of Coal to Re.1/- (Rupee one only) per tonne. Statutory Charges shall, however, be paid as per the Declared Grade. In this regard, any credit in respect of the Statutory Charges, if and when received by the Seller, shall be adjusted through issuance of credit note(s). Railway freight shall be borne by the Purchaser. 5.3 The Seller shall endeavor to deliver Coal with size conforming to specifications set out in SCHEDULE III and shall make reasonable efforts to remove stones/extraneous material from the Coal. 5.4 Re-declaration of Grade by the Seller If the Grade analysed pursuant to Clause 5.6 shows variation from the Declared Grade, consistently over a period of three (3) Months, the Purchaser shall request the Seller for re- declaration of Grade, which shall be duly considered by the Seller for applying to Coal Controller for approval of re-gradation. 5.5 Oversized Coal/stones In the unlikely event of supply of any oversized Coal/stones beyond the specifications set out in SCHEDULE III, the Purchaser shall inform the Seller of such incident(s) in any specific consignment(s), immediately on its detection at the Delivery Point and/or Unloading Point and the Seller shall take all reasonable steps to prevent such ingress at its end. If, in the Purchaser’s reasonable assessment, the incidents of oversized Coal and/or stones are causing operating or maintenance problems at the Power Station, then, upon the request of the Purchaser, the Purchaser and the Seller shall meet and prepare a mutually acceptable plan for effectiveness of the Seller’s endeavours to avoid such instances. 5.6 Assessment of Quality of Coal at the loading end 5.6.1 Sample collection 5.6.1.1 Samples of Coal shall be collected by the Third Party either manually or through any suitable mechanical sampling arrangement, including Augur Sampling method, if physically operable at each of the Delivery Points for determining the quality of Coal in the presence of representatives of the Seller and the Purchaser. 5.6.1.2 For the purpose of sampling, each rake of Coal supplied from one Delivery Point shall be considered as a lot. However, if a rake comprises Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.1.3 Each day’s supply (24 Hrs during a day i.e. 0:00 hrs to 24:00 hrs of the day) to the Purchaser from a Delivery Point shall be considered as 1 (one) lot for the purpose of sampling in case of Coal supplies by road, ropeways, belt and MGR system etc. However, if such Coal supplies comprise Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.2 Detailed modalities for collection, handling, storage, preparation and analysis of samples by Third Party shall be as per SCHEDULE V. 5.6.3 Each sample shall be assigned with a code number and will be identified by such code only and no other particulars will be indicated or written on the tag attached with the relevant bag containing the sample. Detailed modalities of coding/de-coding for the purpose of sampling and analysis may be worked out separately by the Parties to facilitate confidentiality and reliability of the process. 5.6.4 (i) In the event, for any reason whatsoever, Third Party sampling and analysis could not be conducted, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the loading end.; and

Performance Incentive. 4.11.1 If the Seller delivers Coal to the Purchaser in excess of 90 (ninety) percent of the ACQ for a Year, Percentage of actual deliveries* Percentage of Incentive at the Purchaser shall pay the Seller an incentive (“Performance Incentive”) for the excess 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 Above 100% of ACQ 40 Actual Deliveries = Actual Quantity [in tonnes] of Coal delivered by the Seller for the relevant Year. 4.11.2 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. 4.11.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.11.1, shall apply pro-rata. 4.11.4 In case of supply of coal beyond the ACQ, the Purchaser would be required to furnish a certificate from CEA regarding use of such coal within its Power Station. 5.1 The quality of Coal delivered/to be delivered shall be of the grade(s)/size(s)as per the SCHEDULE III. 5.2 The Seller shall make adequate arrangements to assess the quality and monitor the same to endeavour that un-graded coal (GCV of less than 1500 Kcal/kg for non-coking coal) is not loaded into the Purchaser’s Containers. If the Seller sends any quantity of WKH 3XUFKDVHIfUth¶e VSe lle&r sRenQdsWanDy LquQanHtitUy oVf such Coal, the Purchaser shall limit the payment of cost of Coal to Re.1/- (Rupee one only) per tonne. Statutory Charges shall, however, be paid as per the Declared Grade. In this regard, any credit in respect of the Statutory Charges, if and when received by the Seller, shall be adjusted through issuance of credit note(s). Railway freight shall be borne by the Purchaser. 5.3 The Seller shall endeavor to deliver Coal with size conforming to specifications set out in SCHEDULE III and shall make reasonable efforts to remove stones/extraneous material from the Coal. 5.4 Re-declaration of Grade by the Seller If the Grade analysed pursuant to Clause 5.6 shows variation from the Declared Grade, consistently over a period of three 3 (3three) Months, the Purchaser shall request the Seller for re- declaration of Grade, which shall be duly considered by the Seller for applying to Coal Controller for approval of re-gradation. 5.5 Oversized Coal/stones In the unlikely event of supply of any oversized Coal/stones beyond the specifications set out in SCHEDULE III, the Purchaser shall inform the Seller of such incident(s) in any specific consignment(s), immediately on its detection at the Delivery Point and/or Unloading Point and the Seller shall take all reasonable steps to prevent such ingress at its end. If, in the Purchaser’s DOO UHDVRQDEOH VWHSV WR SUHYHQW VXFK reasonable assessment, the incidents of oversized Coal and/or stones are causing operating or maintenance problems at the Power Station, then, upon the request of the Purchaser, the Purchaser and the Seller shall meet and prepare a mutually acceptable plan for effectiveness of the Seller’s endeavours to avoid such instances.WKH 6HOOHU¶V HQGHDYRXUV WR DYRLG VXFK LQVWDQF 5.6 Assessment of Quality of Coal at the loading end 5.6.1 Sample collection 5.6.1.1 Samples of Coal shall be collected by the Third Party either manually or through any suitable mechanical sampling arrangement, including Augur Sampling method, if physically operable at each of the Delivery Points for determining the quality of Coal in the presence of representatives of the Seller and the Purchaser. 5.6.1.2 For the purpose of sampling, each rake of Coal supplied from one Delivery Point shall be considered as a lot. However, if a rake comprises Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.1.3 Each day’s supply (24 Hrs during a day i.e. 0:00 hrs to 24:00 hrs of the day) to the Purchaser from a Delivery Point shall be considered as 1 (one) lot for the purpose of sampling in case of Coal supplies by road, ropeways, belt and MGR system etc. However, if such Coal supplies comprise Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.2 Detailed modalities for collection, handling, storage, preparation and analysis of samples by Third Party shall be as per SCHEDULE V. 5.6.3 Each sample shall be assigned with a code number and will be identified by such code only and no other particulars will be indicated or written on the tag attached with the relevant bag containing the sample. Detailed modalities of coding/de-coding for the purpose of sampling and analysis may be worked out separately by the Parties to facilitate confidentiality and reliability of the process. 5.6.4 (i) In the event, for any reason whatsoever, Third Party sampling and analysis could not be conducted, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the loading end.; and

Performance Incentive. 4.11.1 4.12.1 If the Seller delivers Coal to the Purchaser in excess of 90 ninety (ninety90%) percent 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 0-0 - 10 Above 95% but up to 100% of ACQ 10-10 - 20 Above 100% of ACQ 40 Actual Deliveries = Actual Quantity [in tonnes] of Coal delivered by the Seller for the relevant Year. 4.11.2 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. 4.11.3 4.12.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.11.14.12.1, shall apply pro-rata. 4.11.4 In case of supply of coal beyond the ACQ, the Purchaser would be required to furnish a certificate from CEA regarding use of such coal within its Power Station. 5.1 The quality of Coal delivered/to be delivered shall be of the grade(s)/size(s)as as per the SCHEDULE IIIspecifications given in Schedule II. 5.2 The Seller shall make adequate arrangements to assess the quality and monitor the same to endeavour that un-graded coal Coal (GCV of less than 1500 2200 Kcal/kg Kg for non-coking coal) is not loaded into the Purchaser’s Containers. If the Seller sends any quantity of such Coal, the Purchaser shall limit the payment of cost of Coal to Re.1/- Re. 1/- (Rupee one only) per tonne. Statutory Charges shall, however, be paid as per the Declared Grade. In this regard, any credit in respect of the Statutory Charges, if and when received by the Seller, shall be adjusted through issuance of credit note(s). Railway freight shall be borne by the Purchaser. 5.3 The Seller shall endeavor endeavour to deliver Coal with size conforming to specifications set out in SCHEDULE III Schedule II and shall make reasonable efforts to remove stones/extraneous material from the Coal. 5.4 Re-declaration of Grade by the Seller If the Grade analysed pursuant to Clause 5.6 shows variation from the Declared Grade, consistently over a period of three (3) Months, the Purchaser shall request the Seller for re- declaration of Grade, which shall be duly considered by the Seller for applying to Coal Controller for approval of re-gradation. 5.5 Oversized Coal/stones In the unlikely event of supply of any oversized Coal/stones beyond the specifications set out in SCHEDULE III, the Purchaser shall inform the Seller of such incident(s) in any specific consignment(s), immediately on its detection at the Delivery Point and/or Unloading Point and the Seller shall take all reasonable steps to prevent such ingress at its end. If, in the Purchaser’s reasonable assessment, the incidents of oversized Coal and/or stones are causing operating or maintenance problems at the Power Station, then, upon the request of the Purchaser, the Purchaser and the Seller shall meet and prepare a mutually acceptable plan for effectiveness of the Seller’s endeavours to avoid such instances. 5.6 Assessment of Quality of Coal at the loading end 5.6.1 Sample collection 5.6.1.1 Samples of Coal shall be collected by the Third Party either manually or through any suitable mechanical sampling arrangement, including Augur Sampling method, if physically operable at each of the Delivery Points for determining the quality of Coal in the presence of representatives of the Seller and the Purchaser. 5.6.1.2 For the purpose of sampling, each rake of Coal supplied from one Delivery Point shall be considered as a lot. However, if a rake comprises Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.1.3 Each day’s supply (24 Hrs during a day i.e. 0:00 hrs to 24:00 hrs of the day) to the Purchaser from a Delivery Point shall be considered as 1 (one) lot for the purpose of sampling in case of Coal supplies by road, ropeways, belt and MGR system etc. However, if such Coal supplies comprise Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.2 Detailed modalities for collection, handling, storage, preparation and analysis of samples by Third Party shall be as per SCHEDULE V. 5.6.3 Each sample shall be assigned with a code number and will be identified by such code only and no other particulars will be indicated or written on the tag attached with the relevant bag containing the sample. Detailed modalities of coding/de-coding for the purpose of sampling and analysis may be worked out separately by the Parties to facilitate confidentiality and reliability of the process. 5.6.4 (i) In the event, for any reason whatsoever, Third Party sampling and analysis could not be conducted, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the loading end.; and

Performance Incentive. 4.11.1 If ‌ Percentage of actual deliveries* Percentage of Incentive at the Seller delivers Coal to the Purchaser in excess rate of 90 (ninety) percent weighted average Notified Price of the ACQ for a Year, the Purchaser shall pay the Seller an incentive (“Performance Incentive”) for the excess Coal supplied: Above 90% but up to 95% of ACQ 0-10 Above 95% but up to 100% of ACQ 10-20 Above 100% of ACQ 40 Actual Deliveries = Actual Quantity [in tonnes] Grades of Coal delivered by the Seller for the relevant Year. 4.11.2 supplied 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. 4.11.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.11.1, shall apply pro-rata. 4.11.4 . In case of supply of coal beyond the ACQ, the Purchaser would be required to furnish a certificate from CEA regarding use of such coal within its Power Station. 5.1 The quality of Coal delivered/to be delivered shall be of the grade(s)/size(s)as per the SCHEDULE III. 5.2 The Seller shall make adequate arrangements to assess the quality and monitor the same to endeavour that un-graded coal (GCV of less than 1500 Kcal/kg for non-coking coal) is not loaded into the Purchaser’s Containers. If the Seller sends any quantity of such Coal, the Purchaser shall limit the payment of cost of Coal to Re.1/- (Rupee one only) per tonne. Statutory Charges shall, however, be paid as per the Declared Grade. In this regard, any credit in respect of the Statutory Charges, if and when received by the Seller, shall be adjusted through issuance of credit note(s). Railway freight shall be borne by the Purchaser. 5.3 The Seller shall endeavor to deliver Coal with size conforming to specifications set out in SCHEDULE III and shall make reasonable efforts to remove stones/extraneous material from the Coal. 5.4 Re-declaration of Grade by the Seller If the Grade analysed pursuant to Clause 5.6 shows variation from the Declared Grade, consistently over a period of three (3) Months, the Purchaser shall request the Seller for re- declaration of Grade, which shall be duly considered by the Seller for applying to Coal Controller for approval of re-gradation. 5.5 Oversized Coal/stones In the unlikely event of supply of any oversized Coal/stones beyond the specifications set out in SCHEDULE III, the Purchaser shall inform the Seller of such incident(s) in any specific consignment(s), immediately on its detection at the Delivery Point and/or Unloading Point and the Seller shall take all reasonable steps to prevent such ingress at its end. If, in the Purchaser’s reasonable assessment, the incidents of oversized Coal and/or stones are causing operating or maintenance problems at the Power Station, then, upon the request of the Purchaser, the Purchaser and the Seller shall meet and prepare a mutually acceptable plan for effectiveness of the Seller’s endeavours to avoid such instances. 5.6 Assessment of Quality of Coal at the loading end 5.6.1 Sample collection 5.6.1.1 Samples of Coal shall be collected by the Third Party either manually or through any suitable mechanical sampling arrangement, including Augur Sampling method, if physically operable at each of the Delivery Points for determining the quality of Coal in the presence of representatives of the Seller and the Purchaser. 5.6.1.2 For the purpose of sampling, each rake of Coal supplied from one Delivery Point shall be considered as a lot. However, if a rake comprises Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.1.3 Each day’s supply (24 Hrs during a day i.e. 0:00 hrs to 24:00 hrs of the day) to the Purchaser from a Delivery Point shall be considered as 1 (one) lot for the purpose of sampling in case of Coal supplies by road, ropeways, belt and MGR system etc. However, if such Coal supplies comprise Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.2 Detailed modalities for collection, handling, storage, preparation and analysis of samples by Third Party shall be as per SCHEDULE V. 5.6.3 Each sample shall be assigned with a code number and will be identified by such code only and no other particulars will be indicated or written on the tag attached with the relevant bag containing the sample. Detailed modalities of coding/de-coding for the purpose of sampling and analysis may be worked out separately by the Parties to facilitate confidentiality and reliability of the process. 5.6.4 (i) In the event, for any reason whatsoever, Third Party sampling and analysis could not be conducted, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the loading end.; and

Performance Incentive. 4.11.1 If the Seller delivers Coal to the Purchaser in excess of 90 (ninety) percent of the ACQ for a Year, the Purchaser shall pay the Seller an incentive (“Performance Incentive”) for the excess Coal supplied: Above 90% but up to 95% of ACQ 0-10 Above 95% but up to 100% of ACQ 10-20 Above 100% of ACQ 40 Actual Deliveries = Actual Quantity [in tonnes] of Coal delivered by the Seller for the relevant Year. 4.11.2 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. 4.11.3 With respect to part of Year in which Term of this Agreement begins or ends, the relevant quantities in Clause 4.11.1, shall apply pro-rata. 4.11.4 . In case of supply of coal beyond the ACQ, the Purchaser would be required to furnish a certificate from CEA regarding use of such coal within its Power Station. 5.1 The quality of Coal delivered/to be delivered shall be of the grade(s)/size(s)as per the SCHEDULE III. 5.2 The Seller shall make adequate arrangements to assess the quality and monitor the same to endeavour that un-graded coal (GCV of less than 1500 Kcal/kg for non-coking coal) is not loaded into the Purchaser’s Containers. If the Seller sends any quantity of such Coal, the Purchaser shall limit the payment of cost of Coal to Re.1/- (Rupee one only) per tonne. Statutory Charges shall, however, be paid as per the Declared Grade. In this regard, any credit in respect of the Statutory Charges, if and when received by the Seller, shall be adjusted through issuance of credit note(s). Railway freight shall be borne by the Purchaser. 5.3 The Seller shall endeavor to deliver Coal with size conforming to specifications set out in SCHEDULE III and shall make reasonable efforts to remove stones/extraneous material from the Coal. 5.4 Re-declaration of Grade by the Seller If the Grade analysed pursuant to Clause 5.6 shows variation from the Declared Grade, consistently over a period of three 3 (3three) Months, the Purchaser shall request the Seller for re- declaration of Grade, which shall be duly considered by the Seller for applying to Coal Controller for approval of re-gradation. 5.5 Oversized Coal/stones In the unlikely event of supply of any oversized Coal/stones beyond the specifications set out in SCHEDULE III, the Purchaser shall inform the Seller of such incident(s) in any specific consignment(s), immediately on its detection at the Delivery Point and/or Unloading Point and the Seller shall take all reasonable steps to prevent such ingress at its end. If, in the Purchaser’s reasonable assessment, the incidents of oversized Coal and/or stones are causing operating or maintenance problems at the Power Station, then, upon the request of the Purchaser, the Purchaser and the Seller shall meet and prepare a mutually acceptable plan for effectiveness of the Seller’s endeavours to avoid such instances. 5.6 Assessment of Quality of Coal at the loading end 5.6.1 Sample collection 5.6.1.1 Samples of Coal shall be collected by the Third Party either manually or through any suitable mechanical sampling arrangement, including Augur Sampling method, if physically operable at each of the Delivery Points for determining the quality of Coal in the presence of representatives of the Seller and the Purchaser. 5.6.1.2 For the purpose of sampling, each rake of Coal supplied from one Delivery Point shall be considered as a lot. However, if a rake comprises Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.1.3 Each day’s supply (24 Hrs during a day i.e. 0:00 hrs to 24:00 hrs of the day) to the Purchaser from a Delivery Point shall be considered as 1 (one) lot for the purpose of sampling in case of Coal supplies by road, ropeways, belt and MGR system etc. However, if such Coal supplies comprise Coal from more than 1 (one) coal mine and/or Grade, then the number of lots for sampling will be coal mine/Grade wise, as the case may be. 5.6.2 Detailed modalities for collection, handling, storage, preparation and analysis of samples by Third Party shall be as per SCHEDULE V. 5.6.3 Each sample shall be assigned with a code number and will be identified by such code only and no other particulars will be indicated or written on the tag attached with the relevant bag containing the sample. Detailed modalities of coding/de-coding for the purpose of sampling and analysis may be worked out separately by the Parties to facilitate confidentiality and reliability of the process. 5.6.4 (i) In the event, for any reason whatsoever, Third Party sampling and analysis could not be conducted, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the loading end.; and