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Credit for Shortfall
Credit for Shortfall contract clause examples

In the event that INIS fails to deliver to Nordion the Cobalt-60 Pellets in accordance with the supply commitment set out in Modified [Appendix B] for any given Contract Year (“Shortfall Quantity”), then Nordion, at its sole discretion may, within sixty (60) days following the end of such Contract Year, a) request (and shall be entitled to) a refund of the applicable commitment fee paid pursuant to [section 4.3] corresponding to such Shortfall Quantity and a refund of the progress payments paid pursuant to [section 4.4], corresponding to such Shortfall Quantity for that Contract Year, and a corresponding reduction in the quantity of Cobalt-60 Pellets to be purchased by Nordion in such Contract Year or b) permit all or part of such Shortfall Quantity to be delivered in the Contract Year immediately following the Contract Year in which the Shortfall Quantity occurred. For the purpose of clarity, should Nordion choose to take delivery of a Shortfall Quantity in the immediately following Contract Year, INIS, in addition to the quantity of Cobalt-60 Pellets that are required to be delivered in such Contract Year pursuant to Modified [Appendix B], shall also deliver the Shortfall Quantity in such Contract Year. If Nordion elects to receive a refund, INIS shall pay such refund to Nordion within sixty (60) days of receipt by INIS of Nordion’s election to receive such refund, provided further, that Nordion may, in its unfettered discretion, elect to apply such refund and offset against future progress payments pursuant to [section 4.4].

Notwithstanding anything to the contrary, in the event INIS fails to meet at least 50% of its Cobalt-60 Pellet supply commitment to Nordion in each of any two (2) consecutive Contract Year periods for any reason whatsoever, Nordion shall in addition to any other remedies available, including but not limited to payment by INIS of any amounts (and refunds) owing to Nordion hereunder, shall be entitled to terminate this Agreement upon written notice to INIS.

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