Common use of Performance Regime Clause in Contracts

Performance Regime. (a) Without limiting the Operator's obligations under clause 4, the Operator must perform its obligations under this Agreement in order to meet the Performance Measures. (b) The parties acknowledge and agree that the Performance Measures are only agreed target levels of performance against which the Operator will be assessed by the Principal and the existence of the Performance Measures does not limit the Operator's obligation to meet any other obligations in this Agreement, (c) This clause 7.7(c) only applies where the Operator is a Major Operator. (i) A Performance Abatement may apply in respect of a Performance Failure, in accordance with the Performance Regime to reflect the agreed principle that the Principal will only pay for the quantum and quality of the Services actually provided. (ii) The Operator agrees that the Performance Abatement regime under this Agreement reflects a genuine pre-estimate of the diminished value to the Principal if the Service Provider does not provide the Services in accordance with this Agreement. (iii) Any Performance Abatement payable for any Performance Failure will be a debt due and payable by the Operator to the Principal in accordance with this Agreement and may be set-off against the Fee that is otherwise payable by the Principal to the Operator.