Maximum Volumes Sample Clauses
Maximum Volumes. In no event will the volumes of Committed Gas that Seller is obligated to sell and deliver to Buyer or that Buyer is obligated to purchase and receive from Seller under the terms of this Agreement ever exceed the volumes of Gas that can be legally produced or purchased under the applicable rules and regulations of the Railroad Commission of Texas.
Maximum Volumes. (a) Upon the terms set forth herein, ▇▇▇▇▇▇ agrees that for each year during the term of this Agreement, ▇▇▇▇▇▇ shall supply TIMET or its designee(s) with Titanium Conversion Services on the Operating Assets of up to ten (10) million output pounds annually (as it may be increased as set forth in Section 2.1(b) below, the “Maximum Annual Volume”). The foregoing represents a capacity guarantee and ▇▇▇▇▇▇ agrees that at all times during the term of this Agreement it shall dedicate to TIMET adequate capacity for the performance of Titanium Conversion Services on a timely basis as required herein subject to the Maximum Annual Volume and Maximum Monthly Volume. ▇▇▇▇▇▇ shall be responsible for all capital equipment, trained personnel, maintenance, utilities and other expenses incurred to produce the products identified on Exhibit A.
(b) TIMET shall have the option (the “Option”), exercisable by written notice (the “Option Notice”) from TIMET to ▇▇▇▇▇▇, to order Titanium Conversion Services of up to an additional ten (10) million output pounds annually (such that the Maximum Annual Volume shall be up to twenty (20) million output pounds annually); provided, however, that the Maximum Annual Volume shall not increase unless and until the occurrence of one of the events set forth in Section 2.1(c)(i) or (ii). After the Loan Date (as defined below), the increased volumes will be staged into ▇▇▇▇▇▇’ production schedule in mutually agreeable increments, provided that (i) no later than eighteen (18) months after the Loan Date, the Maximum Annual Volume shall be up to fifteen (15) million output pounds, and (ii) not later than thirty (30) months after the Loan Date and in all subsequent years, the Maximum Annual Volume shall be up to twenty (20) million output pounds.
(c) Upon the delivery of the Option Notice, ▇▇▇▇▇▇ and TIMET shall promptly form a steering committee consisting of two (2) representatives of each of ▇▇▇▇▇▇ and TIMET (the “Steering Committee”). The Steering Committee will determine and approve any capital expenditures necessary to achieve the additional capacity. At TIMET’s option, TIMET may either (i) follow the Steering Committee’s determination, approve the necessary capital expenditures and offer to lend ▇▇▇▇▇▇ up to an aggregate of Twelve Million Dollars ($12,000,000) for such capital investments; or (ii) without seeking Steering Committee approval, offer to lend ▇▇▇▇▇▇ Twelve Million Dollars ($12,000,000) to use for capital investments that are requi...