Average Shortfall definition

Average Shortfall shall equal one sixth of the sum of the Actual Shortfall for each of the six Months in which Buyer purchased less than the Minimum Monthly quantity. The “Actual Shortfall” shall be calculated for each Month in which Buyer purchased less than the Minimum Monthly quantity and shall equal the Minimum Monthly quantity less the actual quantity of Product purchased by Buyer during such Month. Seller must exercise this right, if at all, by sending written notice (“Reduction Notice”) to Buyer within ninety (90) days after the occurrence of the Shortfall Event. Within ten (10) days after receipt of the Reduction Notice, the Parties shall enter into an amendment to this Agreement reflecting the reduction to the Minimum and Maximum Monthly quantity. Such amendment shall also reflect that the “Permitted Reduction” as set forth above shall also be reduced by the quantity set out in the Reduction Notice. Under no circumstances can the Minimum Monthly quantity as provided for in this Contract ever be reduced below 27,500,000 pounds. For the purposes of this paragraph and the calculations provided for herein, the Minimum Monthly quantity used for calculating the “Actual Shortfall” for each Month shall be reduced by an amount equal to the Excluded Quantities, if any, applicable to such Month. The Monthly quantity will be comprised of quantities of CGP and/or quantities of PGP (as combined, “Combined Propylene”) as specified by Buyer totaling the respective required quantities; provided, however, Buyer shall purchase at least 100,000,000 pounds of PGP per calendar year. The Quantity of Product for the month in which the Start-Up Period ends will be prorated for that month based on the number of days remaining in the month, from the end of the Start-Up Period divided by the number of days in such month. All quantities of Product shall be purchased and paid for on a stream basis.
View Source

Examples of Average Shortfall in a sentence

  • Such notice of termination shall not be effective for one (1) year from the date of delivery and shall be null and void if Importer Purchases, during the fourth Operational Year of such Renewal Term, a number of Cases equal to or greater than the sum of (A) the Purchase Target for such fourth Operational Year of such Renewal Term and (B) the product obtained by multiplying (I) the Renewal Term Average Shortfall, by (II) three (3).

Related to Average Shortfall

  • Finance Charge Shortfall shall have the meaning specified in Section 4.09.

  • Available Funds Shortfall means, for any Payment Date and the related Collection Period, the positive difference, if any, of (i) the amount necessary to make all distributions required to be made pursuant to clauses (i) through (iii) of Section 2.08 over (ii) Collections on deposit in the Collection Account, to the extent received during or in respect of such Collection Period.

  • Daily Principal Shortfall means, on any date of determination, the excess of the Group One Monthly Principal Payment for the Monthly Period relating to such date over the month to date amount of Collections processed in respect of Principal Receivables for such Monthly Period allocable to investor certificates of all outstanding Series in Group One, not subject to reallocation, which are on deposit or to be deposited in the Principal Account on such date.

  • Working Capital Shortfall means the amount (if any) by which the Actual Working Capital Amount is less than the June Working Capital Amount.

  • Principal Shortfall For any Distribution Date, the amount, if any, by which (i) the Principal Distribution Amount for the preceding Distribution Date exceeds (ii) the aggregate amount actually distributed with respect to principal on the Non-Vertically Retained Principal Balance Certificates on such preceding Distribution Date in respect of such Principal Distribution Amount.