Common use of Default Penalty Clause in Contracts

Default Penalty. 12.1 Partner acknowledges that Partner shall pay default penalty for breaching the Agreement for any reason attributable to Partner. Partner shall pay default penalty for any delay, non-contractual performance and/or non- performance, violation of HSE rules, failure to provide information and breach of confidentiality obligations. 12.2 The default penalty shall be due when: a) if the delay is over or the new deadline (extended deadline) for performance provided due to the delay elapsed (whichever occurs earlier), in case of late performance; b) a notice is communicated, in case of non- contractual performance: c) Customer exercises its right to rescind or terminate the Agreement with immediate effect, in case of non-performance; d) a notice is communicated, in case of violation of HSE rules, failure to provide information and breach of confidentiality obligations. 12.3 Partner shall pay default penalty for any delay in performance, i.e. if not keeping deadline(s) (including interim and final deadlines) is attributable to Partner; amount of the default penalty shall be equal to 1% (one per. cent) of the net contractual fee but shall not exceed 10% (10 per. cent) in total for the given delay. 12.4 Customer may claim cancellation penalty for any unfeasibility attributable to Partner, for Partner denying performance without proper reasoning and for Customer lawfully terminating or withdrawing from the Agreement due to any wrongful conduct of Partner. The amount of the cancellation penalty shall be 20% (20 percent), the net contractual fee of the affected work shall be the basis for calculation. In case of Customer terminating or withdrawing from the Agreement, Partner shall receive remuneration for partial performance accepted beforehand in terms of quality and quantity requirements. Customer shall pay such remuneration as agreed before as set out in Clause 4.12. 12.5 In case of any non-contractual performance by Partner and if Customer does not request correction, Partner shall pay default penalty, the amount of which shall be 10% (ten percent) of the contractual net price of the work affected by such non-contractual performance. If Customer requests correction, the rules of delay shall apply to the extent of default penalty. 12.6 If Partner foresees that his performance will not be in accordance with the Agreement (delayed or non- contractual and/or non-performance) but does not inform the Customer thereof, Partner is obliged to pay a penalty of 10% (ten percent) of the penalty otherwise payable. 12.7 If Partner violates the confidentiality obligation set in the Agreement, SPartner is obliged to pay a penalty, the amount of which shall be 5% (five percent) of the contractual net price of the goods. 12.8 If Partner violates its obligation arising from the HSE rules, Partner is obliged to pay to the Customer a penalty according to the provisions of the Agreement, in lack thereof penalty equal to 10% (ten percent) of the contractual net price of the goods affected by the violation. 12.9 Customer may claim reimbursement of its damages exceeding the amount of the default penalty, also any other claim of Customer may be enforced. 12.10 Customer shall charge the amount of the deafult penalty that cannot be set off in a separate letter which Partner is obliged to pay by bank transfer within 15 days of receipt thereof.