Supply Shortfall Payment Clause Samples
Supply Shortfall Payment. Subject to subsection 4.2.2 below, if GF fails to meet its Supply Commitment for any calendar quarter, GF will credit to Customer’s account an amount that is equal to [***] (the “Supply Shortfall Fee”). Supply Shortfall Fees incurred during a calendar year, if any, shall be summed at the end of a calendar year and credited in the first quarter of the next year.
Supply Shortfall Payment. If GF fails to supply at least [***] percent ([***]%) of its Supply Commitment for any calendar year set forth in the Commit Table with respect to quantities timely ordered by Customer in accordance with this Agreement, GF will, during the subsequent calendar quarter, credit to Customer an amount equal to (a) the Supply Shortfall (as defined below), multiplied by (b) the Average Quarterly Sales Price (the “Supply Shortfall Fee”). For clarity, the Supply Shortfall Fee applies only to the portion of the Supply Commitment necessary to achieve the [***]% threshold, and will not be calculated based on [***]% of the Supply Commitment.