{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "offtake-agreements", "type": "clause", "offset": [19, 37]}, {"key": "where-a-project", "type": "clause", "offset": [65, 80]}, {"key": "source-of", "type": "definition", "offset": [175, 184]}, {"key": "legal-contract", "type": "clause", "offset": [236, 250]}, {"key": "one-party", "type": "definition", "offset": [328, 337]}, {"key": "oil-and-gas", "type": "definition", "offset": [446, 457]}, {"key": "transportation-facilities", "type": "clause", "offset": [507, 532]}, {"key": "for-example", "type": "clause", "offset": [534, 545]}, {"key": "purchase-of", "type": "clause", "offset": [625, 636]}, {"key": "to-divert", "type": "definition", "offset": [682, 691]}, {"key": "market-risk", "type": "clause", "offset": [692, 703]}, {"key": "the-project-company", "type": "clause", "offset": [714, 733]}, {"key": "in-this-agreement", "type": "definition", "offset": [752, 769]}, {"key": "pay-for", "type": "definition", "offset": [800, 807]}, {"key": "project-service", "type": "definition", "offset": [821, 836]}, {"key": "certain-amount", "type": "definition", "offset": [850, 864]}, {"key": "project-output", "type": "clause", "offset": [868, 882]}, {"key": "required-product", "type": "definition", "offset": [947, 963]}, {"key": "to-sell", "type": "clause", "offset": [994, 1001]}, {"key": "payment-stream", "type": "clause", "offset": [1039, 1053]}, {"key": "types-of", "type": "clause", "offset": [1079, 1087]}, {"key": "take-or-pay", "type": "clause", "offset": [1174, 1185]}, {"key": "agreement-between", "type": "clause", "offset": [1230, 1247]}, {"key": "a-facility", "type": "definition", "offset": [1263, 1273]}, {"key": "agrees-to", "type": "clause", "offset": [1331, 1340]}, {"key": "payments-to-the", "type": "clause", "offset": [1379, 1394]}, {"key": "to-maintain", "type": "clause", "offset": [1435, 1446]}, {"key": "payment-obligation", "type": "definition", "offset": [1648, 1666]}, {"key": "payments-may-be", "type": "clause", "offset": [1743, 1758]}, {"key": "costs-of-the-project", "type": "definition", "offset": [1782, 1802]}, {"key": "fixed-operating-costs", "type": "definition", "offset": [1804, 1825]}, {"key": "maintenance-costs", "type": "clause", "offset": [1830, 1847]}, {"key": "debt-service", "type": "definition", "offset": [1849, 1861]}, {"key": "equity-return", "type": "definition", "offset": [1873, 1886]}, {"key": "the-payment", "type": "clause", "offset": [2045, 2056]}, {"key": "number-of", "type": "definition", "offset": [2201, 2210]}, {"key": "basis-of", "type": "clause", "offset": [2266, 2274]}, {"key": "obligations-to-pay", "type": "clause", "offset": [2340, 2358]}, {"key": "in-certain-circumstances", "type": "clause", "offset": [2359, 2383]}, {"key": "price-basis", "type": "clause", "offset": [2689, 2700]}, {"key": "in-this-contract", "type": "clause", "offset": [2702, 2718]}, {"key": "for-the-purchaser", "type": "clause", "offset": [2735, 2752]}, {"key": "capacity-charge", "type": "definition", "offset": [2787, 2802]}, {"key": "the-charge", "type": "clause", "offset": [2804, 2814]}, {"key": "the-producer", "type": "definition", "offset": [2824, 2836]}, {"key": "and-the-purchaser", "type": "clause", "offset": [2851, 2868]}, {"key": "is-not-required-to", "type": "clause", "offset": [2869, 2887]}], "snippet": "Agreements such as offtake agreements become of vital importance where a project is dependent on guaranteed offtake for its products3 because offtake agreements represent the source of revenue for the project. An Offtake agreement is a legal contract between two parties regarding specific amounts of goods to be delivered from one party to the other. It is usually used by energy producers like coal mines, power plants4 and also for extracting oil and gas. However, it has been used in some cases of toll transportation facilities, for example the Channel Tunnel.5 An offtake agreement may be made with a purchaser for the purchase of any output produced by the project, in order to divert market risk away from the project company and the lenders.6 In this agreement, the offtake purchaser has to pay for an amount of project service or procure a certain amount of project output over a given time. It therefore provides a secure supply of the required product for offtaker, and the ability to sell its products and secures the project payment stream for the project company. Types of Offtake Agreements: There are various forms, which offtake agreements can take:\n2.1.1 Take or Pay Contract: A take or pay contract is a legal agreement between an offteker of a facility\u2019s output and a project company, under which the offtaker agrees to take the project\u2019s product or to make payments to the project company for its good or service to maintain its capacity to produce and deliver the good or service. Moreover, the offtake purchaser makes payments whether or not the good or service is generated at the purchaser\u2019s request. Therefore, the buyer payment obligation for the capacity component is unconditional. 7 Under take-or-pay contracts, payments may be set to cover all fixed costs of the project, fixed operating costs and maintenance costs, debt service, after-tax equity return, or may cover only part of the project\u2019s available capacity.8 It should be noted that, sometimes, these contracts are on a \u201chell-or-high water\u201d basis9 where, the payment obligation exists even if the project company produces nothing or it is incapable of producing anything. Additionally, in the 1950s and 1960s,a number of so-called \u201cpromotional pipelines\u201d were financed on the basis of take-or-pay contracts, which freed the gas purchasers from their obligations to pay in certain circumstances of force majeure.10\n2.1.2 Take and Pay Contract: Sometimes, this is called a \u2018take-if-offered\u2019 contract. It is requires the offtaker to take and pay for the project output or to pay the project company as if it did take the output. Inother words, the offtaker pays only for whatever is taken on an agreed price basis. In this contract, it is optional for the purchaser to refuse deliveries if it pays a capacity charge. The charge reflects the producer's fixed costs and the purchaser is not required to buy 1ibid., p. 69.", "size": 1, "samples": [{"hash": "9QGCNXoeCRl", "uri": "/contracts/9QGCNXoeCRl#offtake-agreement", "label": "Offtake and Concession Agreements Comparison", "score": 22.529088974, "published": true}], "hash": "2373901389afc6e1b93cefb6304289ee", "id": 7}, {"snippet_links": [{"key": "by-the-agent", "type": "clause", "offset": [13, 25]}, {"key": "commercially-reasonable-best-efforts", "type": "definition", "offset": [35, 71]}, {"key": "teck-cominco", "type": "definition", "offset": [96, 108]}, {"key": "with-respect-to", "type": "clause", "offset": [109, 124]}, {"key": "assignment-of-the", "type": "clause", "offset": [129, 146]}, {"key": "agreement-to", "type": "clause", "offset": [155, 167]}, {"key": "the-finance-parties", "type": "clause", "offset": [168, 187]}], "snippet": "if requested by the Agent, use its commercially reasonable best efforts to procure consent from Teck Cominco with respect to the assignment of the Offtake Agreement to the Finance Parties.", "size": 2, "samples": [{"hash": "jrUv8wpNgKH", "uri": "/contracts/jrUv8wpNgKH#offtake-agreement", "label": "Facility Agreement (Apollo Gold Corp)", "score": 21.0, "published": true}, {"hash": "59Jo6rZ9JLH", "uri": "/contracts/59Jo6rZ9JLH#offtake-agreement", "label": "Facility Agreement (Apollo Gold Corp)", "score": 21.0, "published": true}], "hash": "6c5ad2b88aaa107aa541c04418bd48bf", "id": 2}, {"snippet_links": [{"key": "within-thirty", "type": "clause", "offset": [0, 13]}, {"key": "date-hereof", "type": "clause", "offset": [31, 42]}, {"key": "the-company-shall", "type": "clause", "offset": [44, 61]}, {"key": "deliver-to", "type": "definition", "offset": [62, 72]}, {"key": "executed-by", "type": "definition", "offset": [109, 120]}, {"key": "each-of-the-parties", "type": "clause", "offset": [121, 140]}], "snippet": "Within thirty (30) days of the date hereof, the Company shall deliver to Acquiror the Offtake Agreement duly executed by each of the parties thereto.", "size": 1, "samples": [{"hash": "ijEysEMwL58", "uri": "/contracts/ijEysEMwL58#offtake-agreement", "label": "Merger Agreement (10X Capital Venture Acquisition Corp. II)", "score": 33.8377838135, "published": true}], "hash": "c5d6e8d3f9dd8c8b689ac10e9b8da38a", "id": 5}, {"snippet_links": [{"key": "prior-to", "type": "clause", "offset": [19, 27]}, {"key": "expenditure-of-funds", "type": "clause", "offset": [28, 48]}, {"key": "for-equipment", "type": "clause", "offset": [49, 62]}, {"key": "production-facility", "type": "definition", "offset": [71, 90]}, {"key": "supply-and-offtake-agreement", "type": "definition", "offset": [102, 130]}, {"key": "exhibit-4", "type": "definition", "offset": [188, 197]}, {"key": "purchase-of-the", "type": "clause", "offset": [233, 248]}, {"key": "monthly-production", "type": "definition", "offset": [256, 274]}, {"key": "the-percentage", "type": "definition", "offset": [278, 292]}, {"key": "by-ics", "type": "clause", "offset": [319, 325]}, {"key": "in-florida", "type": "clause", "offset": [374, 384]}, {"key": "current-market", "type": "definition", "offset": [398, 412]}, {"key": "wholesale-rate", "type": "definition", "offset": [413, 427]}, {"key": "agreed-by", "type": "clause", "offset": [514, 523]}, {"key": "term-of", "type": "clause", "offset": [576, 583]}, {"key": "upon-signing", "type": "clause", "offset": [641, 653]}, {"key": "commencement-of-operations", "type": "definition", "offset": [697, 723]}, {"key": "end-product", "type": "clause", "offset": [805, 816]}, {"key": "event-of-failure", "type": "definition", "offset": [874, 890]}, {"key": "performance-of-the-parties", "type": "clause", "offset": [894, 920]}, {"key": "agreed-between-the-parties", "type": "clause", "offset": [959, 985]}, {"key": "right-to-substitute", "type": "clause", "offset": [1014, 1033]}, {"key": "other-parties", "type": "clause", "offset": [1034, 1047]}, {"key": "same-terms-and-conditions", "type": "definition", "offset": [1055, 1080]}, {"key": "the-terms-of-the-agreement", "type": "clause", "offset": [1137, 1163]}], "snippet": "CBD Biotech shall, prior to expenditure of funds for equipment for the Production Facility, deliver a Supply and Offtake Agreement (the \u201cOfftake Agreement\u201c) in the form attached hereto as Exhibit 4, from one or more parties, for the purchase of the entire monthly production or the percentage of production as required by ICS, of the CBD produced by the Production Facility in Florida, at the then current market wholesale rate for CBD concentrate. Said Offtake Agreement shall be on terms and conditions mutually agreed by ICS and the respective purchasers and for a minimum term of 24 months. Said Offtake Agreement shall become effective upon signing and shall commence upon the completion and commencement of operations of the Production Facility with the initial successful monthly production of CBD end product concentrate utilizing the Bakhu Licensed Science. In the event of failure or performance of the parties to purchase the monthly production as agreed between the parties, CBD Biotech shall have the right to substitute other parties on the same terms and conditions, and such substitution shall not constitute a breach of the terms of the agreement.", "size": 1, "samples": [{"hash": "40Z9h8hLl9M", "uri": "/contracts/40Z9h8hLl9M#offtake-agreement", "label": "Strategic Alliance Agreement (Bakhu Holdings, Corp.)", "score": 31.3189601898, "published": true}], "hash": "40b7843ed955dc20af09cd820594ed9c", "id": 6}, {"snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [0, 11]}, {"key": "credit-party", "type": "clause", "offset": [15, 27]}, {"key": "in-default", "type": "clause", "offset": [31, 41]}, {"key": "subject-to", "type": "definition", "offset": [90, 100]}, {"key": "cure-periods", "type": "clause", "offset": [116, 128]}], "snippet": "At any time, a Credit Party is in default of its obligations under any Offtake Agreement, subject to any applicable cure periods contained therein.", "size": 1, "samples": [{"hash": "7pSSTn9kbBk", "uri": "/contracts/7pSSTn9kbBk#offtake-agreement", "label": "Credit and Guarantee Agreement (Lithium Americas Corp.)", "score": 29.0465431213, "published": true}], "hash": "889e768189a7fc390880afdcb6dd150c", "id": 3}, {"snippet_links": [{"key": "agreement-to-be", "type": "clause", "offset": [12, 27]}, {"key": "entered-into", "type": "clause", "offset": [28, 40]}, {"key": "the-closing-date", "type": "clause", "offset": [44, 60]}, {"key": "acquired-company", "type": "definition", "offset": [91, 107]}, {"key": "the-stock-purchase-agreement", "type": "clause", "offset": [141, 169]}, {"key": "ordinary-course-of-business", "type": "clause", "offset": [171, 198]}, {"key": "business-of-the-company", "type": "definition", "offset": [223, 246]}, {"key": "consistent-with-past-practices", "type": "definition", "offset": [266, 296]}, {"key": "the-company-and-the", "type": "clause", "offset": [300, 319]}, {"key": "in-good-faith", "type": "clause", "offset": [352, 365]}, {"key": "organic-documents", "type": "definition", "offset": [367, 384]}, {"key": "with-respect-to", "type": "clause", "offset": [386, 401]}, {"key": "any-person", "type": "definition", "offset": [402, 412]}, {"key": "articles-of-incorporation", "type": "definition", "offset": [442, 467]}, {"key": "articles-of-organization", "type": "definition", "offset": [477, 501]}, {"key": "limited-liability-agreement", "type": "clause", "offset": [503, 530]}, {"key": "operating-agreement", "type": "clause", "offset": [532, 551]}, {"key": "members-agreement", "type": "definition", "offset": [553, 570]}, {"key": "shareholders-agreement", "type": "definition", "offset": [572, 594]}, {"key": "partnership-agreement", "type": "definition", "offset": [596, 617]}, {"key": "certificate-of-formation", "type": "definition", "offset": [647, 671]}, {"key": "voting-trust-agreement", "type": "definition", "offset": [673, 695]}, {"key": "agreement-or", "type": "definition", "offset": [708, 720]}, {"key": "the-formation", "type": "clause", "offset": [742, 755]}, {"key": "operation-of", "type": "clause", "offset": [759, 771]}, {"key": "occupational-safety-and-hazard", "type": "clause", "offset": [795, 825]}, {"key": "act-of-1970", "type": "definition", "offset": [826, 837]}], "snippet": "the Offtake Agreement to be entered into on the Closing Date by and among the Company, the Acquired Company and Valero Marketing pursuant to the Stock Purchase Agreement. Ordinary Course of Business: the ordinary course of business of the Company or its Subsidiary, consistent with past practices of the Company and the Acquired Company and undertaken in good faith. Organic Documents: with respect to any Person, its charter, certificate or articles of incorporation, bylaws, articles of organization, limited liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership, certificate of formation, voting trust agreement, or similar agreement or instrument governing the formation or operation of such Person. OSHA: the Occupational Safety and Hazard Act of 1970.", "size": 1, "samples": [{"hash": "fnSsSN6A4Qn", "uri": "/contracts/fnSsSN6A4Qn#offtake-agreement", "label": "Loan and Security Agreement (Alon USA Energy, Inc.)", "score": 21.0, "published": true}], "hash": "d087a0ec29f58a23443a0643495885f4", "id": 4}, {"snippet_links": [{"key": "confirmation-of", "type": "clause", "offset": [5, 20]}, {"key": "quality-of-the", "type": "clause", "offset": [21, 35]}, {"key": "defined-above", "type": "clause", "offset": [66, 79]}, {"key": "acting-reasonably", "type": "clause", "offset": [91, 108]}, {"key": "to-enter", "type": "definition", "offset": [131, 139]}, {"key": "in-respect-of", "type": "clause", "offset": [166, 179]}, {"key": "customary-provisions", "type": "clause", "offset": [271, 291]}, {"key": "supply-provisions", "type": "clause", "offset": [310, 327]}, {"key": "default-provisions", "type": "clause", "offset": [382, 400]}, {"key": "rights-of-termination", "type": "clause", "offset": [402, 423]}, {"key": "requirements-and-provisions", "type": "clause", "offset": [440, 467]}, {"key": "conflict-of-interest", "type": "clause", "offset": [483, 503]}, {"key": "the-obligations", "type": "clause", "offset": [531, 546]}, {"key": "pay-for", "type": "definition", "offset": [562, 569]}, {"key": "this-clause", "type": "clause", "offset": [643, 654]}, {"key": "satisfaction-of", "type": "clause", "offset": [673, 688]}, {"key": "conditions-precedent", "type": "definition", "offset": [699, 719]}, {"key": "the-parties", "type": "clause", "offset": [751, 762]}, {"key": "commercial-production", "type": "definition", "offset": [815, 836]}, {"key": "based-on", "type": "clause", "offset": [866, 874]}, {"key": "the-principles", "type": "clause", "offset": [875, 889]}], "snippet": "Upon confirmation of quality of the Vanadium Product for the VBs (defined above) by StorEn acting reasonably, MCR and StorEn agree to enter into an offtake agreement in respect of prescribed Vanadium Product to be supplied to StorEn (Offtake Agreement) that will contain customary provisions including typical supply provisions, representations, warranties, covenants, indemnities, default provisions, rights of termination, record keeping requirements and provisions to address any conflict of interest. MCR and StorEn agree that the obligations to deliver and pay for Vanadium Product under the Offtake Agreement (and the remaining parts of this clause) will commence on satisfaction of customary conditions precedent in 2020 (or such later date as the parties may agree, including that MCR\u2019s project has reached commercial production) and be drafted in long-form based on the principles outlined below:", "size": 1, "samples": [{"hash": "EQCvVfAjAb", "uri": "/contracts/EQCvVfAjAb#offtake-agreement", "label": "Agreement to Vertically Integrate (StorEn Technologies Inc.)", "score": 29.4613285065, "published": true}], "hash": "4516397009a244db7b13030d702dceae", "id": 10}, {"snippet_links": [], "snippet": "(See Attached)", "size": 3, "samples": [{"hash": "gXwaqRU2GqR", "uri": "/contracts/gXwaqRU2GqR#offtake-agreement", "label": "Master Purchase Agreement (1397468 B.C. 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If any Event of Default shall have occurred and be continuing, the Collateral Agent may apply the balance from the Collateral Account or instruct the bank at which the Collateral Account is maintained to pay the balance of the Collateral Account to or for the benefit of the Collateral Agent.", "size": 1, "samples": [{"hash": "3Ly31RqPzDq", "uri": "/contracts/3Ly31RqPzDq#offtake-agreement", "label": "Reimbursement and Guaranty Agreement (Delek US Holdings, Inc.)", "score": 22.5906906128, "published": true}], "hash": "dbc76f0688962537b91a64c2f7f1ad79", "id": 9}], "next_curs": "CloSVGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjYLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhpvZmZ0YWtlLWFncmVlbWVudCMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Offtake Agreement", "parents": [["whereas", "WHEREAS"], ["conditions-precedent", "Conditions Precedent"], ["miscellaneous", "MISCELLANEOUS"], ["no-fiduciary-duty", "No Fiduciary Duty"], ["supply-paths-for-foreign-and-domestic-offshore-crudes", "Supply Paths for Foreign and Domestic Offshore Crudes"]], "children": [["long-term-sales-contract", "Long-Term Sales Contract"], ["blended-contract", "Blended Contract"], ["throughput-agreement", "Throughput Agreement"], ["notice", "Notice"], ["ownership-of-collateral-and-absence-of-other-liens", "Ownership of Collateral and Absence of Other Liens"]], "size": 26, "id": "offtake-agreement", "related": [["supply-agreement", "Supply Agreement", "Supply Agreement"], ["supply-agreements", "Supply Agreements", "Supply Agreements"], ["master-services-agreement", "Master Services Agreement", "Master Services Agreement"], ["interconnection-agreement", "Interconnection Agreement", "Interconnection Agreement"], ["no-strike-agreement", "No Strike Agreement", "No Strike Agreement"]], "related_snippets": [], "updated": "2025-09-12T04:24:41+00:00", "also_ask": ["What are the most negotiable terms in offtake agreements to maximize client leverage?", "Which essential provisions must be included to ensure enforceability and minimize performance risk?", "What are the most common fatal flaws or ambiguities that lead to disputes in offtake agreements?", "How do offtake agreement standards differ across key jurisdictions or industries?", "What are the main legal tests courts apply to determine enforceability of offtake obligations?"], "drafting_tip": "Specify product quantity and quality standards to prevent disputes; define delivery terms to ensure timely performance; set clear payment terms to facilitate smooth transactions.", "explanation": "An Offtake Agreement is a contractual arrangement in which a buyer commits to purchasing a specified quantity of goods or resources from a seller, often over a set period. Typically used in industries such as energy, mining, or agriculture, these agreements outline the terms of purchase, including price, delivery schedules, and quality standards. The core practical function of an Offtake Agreement is to provide certainty for both parties: the seller secures a guaranteed market for their product, while the buyer ensures a reliable supply, thereby reducing market and financial risks for both sides."}, "json": true, "cursor": ""}}