Common use of Minimum Performance Requirement Clause in Contracts

Minimum Performance Requirement. During the Services Term, Seller shall be required to deliver to Buyer Delivered Energy annually in each Contract Year in an amount equal to at least fifty-two percent (52%) of the MPR Base Amount of the Project (“Minimum Performance Requirement”). In each Contract Year of the Services Term if the amount of Delivered Energy delivered to Buyer at the Delivery Point from the Project pursuant to the terms of the Agreement (and giving credit to Seller for Deemed Generated Energy attributable for such Contract Year) is less than the Minimum Performance Requirement, Seller shall pay to Buyer an amount equal to $25 total per MWh for the deficit amount of Energy and associated RECs below the Minimum Performance Requirement. Damages payable by Seller to Buyer pursuant to the terms of this Section 3.15 for failure to meet the Minimum Performance Requirement shall be capped at $1,500,000 per year and $10,000,000 in the aggregate over the Services Term. Buyer shall have the right to terminate the Agreement pursuant to Section 12.2 in the event the amount of damages payable by Seller to Buyer pursuant to this Section 3.15 reaches the cumulative limit of $10,000,000 prior to the end of the Services Term, which such occurrence shall be deemed a Seller’s Event of Default.

Minimum Performance Requirement. During the Services Term, Seller shall be required to deliver to Buyer Delivered Energy annually in each Contract Year in an amount equal to at least fifty-two percent (52%) of the MPR Base Amount of the Project (“Minimum Performance Requirement”). In each Contract Year of the Services Term if the amount of Delivered Energy delivered to Buyer at the Delivery Point from the Project pursuant to the terms of the Agreement (and giving credit to Seller for Deemed Generated Delivered Energy attributable for such Contract Year) is less than the Minimum Performance Requirement, Seller shall pay to Buyer an amount equal to $25 total per MWh for the deficit amount of Energy and associated RECs below the Minimum Performance Requirement. “MPR Base Amount” shall mean 1,357,402 MWh per year, subject to adjustment in accordance with Section 5.4. Damages payable by Seller to Buyer pursuant to the terms of this Section 3.15 for failure to meet the Minimum Performance Requirement shall be capped at $1,500,000 3,000,000 per year and $10,000,000 20,000,000 in the aggregate over the Services Term. Buyer shall have the right to terminate the Agreement pursuant to Section 12.2 in the event the amount of damages payable by Seller to Buyer pursuant to this Section 3.15 reaches the cumulative limit of $10,000,000 20,000,000 prior to the end of the Services Term, which such occurrence shall be deemed a Seller’s Event of Default.