Backdown Sample Clauses
The Backdown clause allows one or both parties to withdraw from a transaction or agreement under certain predefined circumstances. Typically, this clause outlines the specific conditions under which a party may exercise the right to back out, such as failure to meet due diligence requirements or the occurrence of material adverse events, and may specify any penalties or procedures associated with such withdrawal. Its core practical function is to provide a clear and agreed-upon mechanism for exiting the agreement without breaching contract, thereby managing risk and offering flexibility if key conditions are not met.
Backdown. (a) Cogenerator will, upon request of Company, reduce the level of generation of the Plant as requested by Company, which reduction may be accomplished, at Cogenerator's option, either by taking a unit or units off-line or by reducing the operating level of the unit or units on-line ("Backdowns"). Backdowns pursuant to this subsection shall not reduce generation of the Plant below 38% of Firm Capacity after Commercial Operation or below 50% of Firm Capacity prior to Commercial Operation. In any twelve (12) consecutive months the aggregate amount of all such Backdowns shall not exceed that number of megawatthours (MWH) equal to fifty percent (50%) of Firm Capacity times 2000 hours.