Common use of Compensation for short delivery/lifting Clause in Contracts

Compensation for short delivery/lifting. 4.6.1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: X.Xx. Level of Delivery / Lifting of Coal in a Year Rate of compensation for the Failed Quantity (at the rate of simple average of Base Prices of Grades, as shown in Schedule III) Formula for calculation of compensation 1 Less than 100% but up to 80% NIL 2 Less than 80% 0.01% # 0.0001 x P x ((80-LD or LL)/100) x ACQ # to be operative after a period of three years from the date of signing of the FSA Where P shall be the simple average of base prices of grades as shown in the Schedule III. * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement

Compensation for short delivery/lifting. 4.6.1 3.6.1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: X.XxX.Xx . Level of Delivery / Lifting of Coal in a Year Rate of compensation for the Failed Quantity (at the rate of simple average of Base Prices of Grades, as shown in Schedule IIIII) Formula for calculation of compensation 1 Less than 100% but up to 80% NIL 2 Less than 80% 0.01% %# 0.0001 x P x ((80-LD or LL)/100) x ACQ # to be operative after a period of three years from the date of signing of the FSA Where Where, P shall be the simple = Simple average of base prices the Base Prices of grades Grades, as shown in the Schedule III. II * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement