Common use of Adjustment Date Settlements Clause in Contracts

Adjustment Date Settlements. (a) In connection with the adjustments contemplated hereunder to occur on and as of the Adjustment Date, Aron shall determine in a commercially reasonable manner any payments required to be made by one party to the other to compensate for the change in certain terms on and as of the Adjustment Date and, promptly after making such determination, Aron shall prepare and issue an invoice reflecting all such payments and the net payment resulting therefrom which shall be due from one party to the other as provided in Section 10.6(b) below or for amounts not covered under Section 10.6(b), no later than the second Business Day following the date on which such invoice is issued. (b) Without limiting the generality of Section 10.6(a), it is agreed that, in connection with the Adjustment Date, Aron shall in a commercially reasonable manner calculate, and either Aron or the Company (as appropriate) shall be obligated to make, the payments provided for below: (i) With respect to each Product Group, a Provisional Step-Out amount (as defined in Schedule B-1) and a Provisional Step-In amount (as defined in Schedule B-2) shall each be calculated based on the end-of-day inventories reported for June 23, 2021 and the difference between such amounts (the “Net Provisional Adjustment Amount”) shall be due from the Company to Aron if the Provisional Step-Out amount is greater than the Provisional Step-In Amount and otherwise from Aron to the Company; (ii) The Net Provisional Adjustment Amounts shall be included in the invoice issued by Aron on June 30, 2021 and shall be included in the Interim Payment due on July 1, 2021; (iii) In connection with the calculation of each Net Provisional Adjustment Amount, Aron shall calculate any additional amount due from one party to the other as a result of provisionally closing out and reestablishing the related FIFO balance based on the Target Month End Crude Volume or Target Month End Product Volume (as applicable) for the June 2021 Delivery Month (subject to clause (vii) below). If any such amount is determined to be due, it will be invoiced and payable concurrently with the related Net Provisional Adjustment Amount; (iv) With respect to each Product Group, a Step-Out amount (as defined in Schedule B-1) and a Step-In amount (as defined in Schedule B-2) shall be calculated based on the end-of-day inventories reported for June 30, 2021 and the difference between such amounts (the “Net Adjustment Amount”) shall be due from the Company to Aron if the Step-Out amount is greater than the Step-In Amount and otherwise from Aron to the Company; provided that if the Net Adjustment Amount for a Product Group is due from the same Party that paid the Net Provisional Adjustment Amount for such Product Group, then the amount due pursuant to this clause (iv) for such Product Group shall equal the difference between such amounts and be due from such Party if such Net Provisional Adjustment Amount is less than such Net Adjustment Amount and otherwise from the other Party, and if the Net Adjustment Amount for a Product Group is not due from the Party that paid the Net Provisional Adjustment Amount for such Product Group, then the amount due pursuant to this clause (iv) for such Product Group shall equal the sum of such amounts and shall be due from the Party that did not pay such Net Provisional Adjustment Amount; (v) The amounts determined under clause (iv) above shall be included in the invoice issued by Aron on July 7, 2021 and shall be included in the Interim Payment due on July 8, 2021; (vi) In connection with the calculation of each Net Adjustment Amount, Aron shall calculate any additional amount due from one party to the other as a result of closing out and reestablishing the relevant FIFO balance based on the Target Month End Crude Volume or Target Month End Product Volume (as applicable) for the June 2021 Delivery Month (subject to clause (vii) below). If any such amount is determined to be due, it will be invoiced and payable concurrently with the related Net Adjustment Amount; provided that such amount shall be netted against or aggregated with any amount paid under clause (iii) above so that, as a result, the Party obligated to pay such amount shall have done so after giving effect to such netting or aggregation; and (vii) For purposes of calculating the payments under clauses (iii) and (vi) above with respect to the Gasoline Product Group, the calculation for the reestablishing of the FIFO position shall be based on the sum of the volumes for the Gasoline Product Group and the Naphtha Product Group, which shall equal the Target Month End Product Volume of the Gasoline Product Group for the June 2021 Delivery Month and shall be allocated 224,000 Barrels to the Gasoline Product Group and 198,000 Barrels to the Naphtha Product Group.