Common use of Quality Adjustments Clause in Contracts

Quality Adjustments. If Coal delivered under a Transaction varies from the specifications in the Confirmation for such Transaction and Buyer does not exercise its rejection rights under Section 5.2, quality adjustments shall be calculated pursuant to the formulas set forth in the relevant Confirmation in addition to any negotiated price reduction. Within ten (10) Business Days after the end of each month during the Term for each Transaction, the quality adjustments for each Transaction as specified in the relevant Confirmation. if any, shall be netted against each other and the net quality adjustment, as appropriate, for all Shipments during such month shall be determined by Buyer, and Buyer shall pay Seller the net positive adjustment, if any, or Seller shall credit Buyer the net negative adjustment, if any, on the next invoice (or pay such amount to Buyer in the event no further invoices are due) in accordance with the billing and payment terms of Article 6. The adjustments provided in this Section 5.1 are in addition to Buyer’s other rights and remedies provided in this Master Agreement, by law or in equity. Any adjustment pursuant to this Section 5.1 with respect to any Shipment of Fuel under this Master Agreement shall not waive such other rights and remedies with respect to that Shipment of Fuel or any future Shipment of Fuel under this Master Agreement.