Common use of On-Time Performance Clause in Contracts

On-Time Performance. During the Term, Gulfstream agrees to use its reasonable best efforts to achieve and maintain on a monthly basis at least a seventy five percent (75%) on-time performance level. For purposes of this Agreement, “On-Time Performance” shall mean for each calendar month during the Term the quotient (expressed as a percentage) equal to the number of arrivals no later than 14 minutes, 59 seconds after its scheduled arrival divided by the number of scheduled arrivals, excluding in both the numerator and the denominator any flights that are late as a result of weather or Air Traffic Control. At a minimum, however, Gulfstream shall maintain on a monthly basis a minimum On-Time Performance rating of at least seventy percent (70%) (the “Minimum On-Time Performance Rating”), and Northwest shall be entitled to terminate this Agreement pursuant to Section 18(b)(iii) hereof in the event Gulfstream fails to achieve the Minimum On-Time Performance Rating for any six (6) month period during the Term.