Common use of Performance Penalties Clause in Contracts

Performance Penalties. The full Successful Performance Test Payment amount shall only be due and payable by BUYER to UTCP upon the occurrence of a Successful Performance Test. In the event that Facility performance is below the Contract Performance Benchmark, or the Adjusted Performance Benchmark, as applicable, the Successful Performance Test Payment shall be reduced in accordance with the performance penalty schedule attached hereto as Exhibit F (the “Performance Penalties”). The Parties agree that if a Performance Test has not occurred within one-hundred and eighty (180) days following the Guaranteed Mechanical Completion Date, the entire Successful Performance Test Payment shall be forfeited by UTCP.