Storage Efficiency Clause Samples
The Storage Efficiency clause sets standards or requirements for how efficiently storage resources must be used or managed within a given context, such as data storage or physical inventory. It typically outlines metrics or benchmarks for minimizing wasted space, optimizing capacity, or improving retrieval times, and may require regular reporting or audits to ensure compliance. By establishing clear expectations for storage utilization, this clause helps organizations reduce costs, maximize resource use, and prevent inefficiencies that could hinder operations.
Storage Efficiency. (a) During each Contract Year of the Delivery Term, Seller shall maintain a Storage Efficiency of not less than the applicable guaranteed storage efficiency set forth on Schedule 6.4 (the “Guaranteed Storage Efficiency”). In the event that at the end of any such Contract Year the Storage Efficiency is less than the applicable Guaranteed Storage Efficiency, Seller shall pay to Buyer the Storage Efficiency Liquidated Damages, as calculated pursuant to Schedule 6.4. Such Storage Efficiency Liquidated Damages shall be Buyer’s sole and exclusive remedy for any failure of the Storage Facility to meet the Guaranteed Storage Efficiency. The Parties agree that the damages Buyer would incur due to Seller’s failure to meet the Guaranteed Storage Efficiency would be difficult or impossible to predict with certainty and the Storage Efficiency Liquidated Damages amount is a reasonable approximation of such damages.
(b) On or before the tenth (10th) Day after the end of each Contract Year, Seller shall provide to Buyer the calculation of the Storage Efficiency and associated Storage Efficiency Liquidated Damages, if any, for such Contract Year, including all data used by Seller to arrive at its calculations. Seller shall, upon written request, provide to Buyer any supplemental information reasonably required by Buyer to evaluate the calculations. The Storage Efficiency Liquidated Damages, if any, shall be reflected as a credit to Buyer on the Monthly Invoice issued with respect to the last month of the applicable Contract Year. Any disputes regarding the calculation of the Storage Efficiency or Storage Efficiency Liquidated Damages shall be resolved pursuant to Article 18.