Additional Production Payment Terms Clause Samples

Additional Production Payment Terms. The following provisions apply to all Production Payments: (a) If and for so long as the Project Company is subject to the Restricted Payment Limitations and in such case, the Supplier does not otherwise have sufficient cash on hand from other sources (or readily available to it), the Supplier shall not be obligated to pay the Purchaser any Production Payments in whole or in part arising under this Agreement (any such payment, a “Deferred Production Payment”) until such Deferred Production Payment becomes payable pursuant to Section 3.3(b). Each Deferred Production Payment shall bear interest at a rate per annum equal to the Default Rate until paid by the Supplier. (b) Each applicable Deferred Production Payment together with accrued interest at the Default Rate shall be paid within 15 Calendar Days after the date on which the Restricted Payment Limitations cease to apply to the Project Company. (c) Notwithstanding the provisions of Section 3.3(a) and Section 3.3(b), interest at the Default Rate shall not accrue on any Deferred Production Payments until the First Possible Restricted Payment Date (the “Non Accrual Period”). At the expiration of the Non Accrual Period, interest at the Default Rate shall start to accrue from day to day thereafter, both before and after default, demand, maturity and judgment, on each Deferred Production Payment commencing on and as of the First Possible Restricted Payment Date. (d) The Purchaser shall not be responsible for any refining, treatment, conversion or other charges, penalties, insurance, deductions, transportation, settlement, financing, price participation charges or other charges, penalties, deductions, set-offs, Taxes (other than any Excluded Taxes imposed on the Purchaser as a result of the Production Payments) or expenses pertaining to and/or in respect of the production of any products processed from Minerals, all of which shall be for the sole account of the Project Company. (e) The Supplier covenants and agrees to and in favour of Purchaser that during the Term, the Supplier shall not declare or pay any dividends or distributions to the Supplier’s equity holders during any period while there exists any unpaid Deferred Production Payments together with interest thereon at the Default Rate. (f) Any and all payments made pursuant to this Agreement shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion ...