Common use of Performance Incentives Clause in Contracts

Performance Incentives. (a) The Operator may be entitled to receive an Incentive Fee or obligated to pay a Penalty, as specified in Appendix A. (b) The Incentive Fee or Penalty will be due each August 1, and will be based on the preceding twelve month period ending July 1. Penalties, if any, may be recouped or set-off against the next due and payable Operator Fee or Incentive Fee and adjusted for any partial operating year following the date of this Agreement.