Common use of Production Increase Clause in Contracts

Production Increase. (i) If the Plant exceeds a production capacity of 3,000 barrels per day at the Commercial Operations Date as determined by the ▇▇▇▇▇▇▇▇ Production Report, then the Seller shall be entitled to an increase in the Purchase Price by ONE HUNDRED AND FIFTY THOUSAND US DOLLARS ($150,000.00) for each barrel per day the Plant exceeds a production capacity of 3,000 barrels per day, up to 3,500 barrels per day (or a maximum increase of $75,000,000.00) (such amount, if any, the “Production Increase”). (ii) The amount of any Production Increase shall be based upon the ▇▇▇▇▇▇▇▇ Production Report and shall be rounded down to the nearest whole barrel. Within five Business Days (5) days after the Commercial Operations Date, Buyer shall request that ▇▇▇▇▇▇▇▇ Engineers prepare a written analysis of the production capacity of the Plant for purposes of determining any Production Increase (the “▇▇▇▇▇▇▇▇ Production Report”). (iii) After receipt of the ▇▇▇▇▇▇▇▇ Production Report, Seller and Buyer shall have a Review Period of five (5) Business Days. During the Review Period, Seller and Buyer shall mutually cooperate in good faith to determine if any adjustments to ▇▇▇▇▇▇▇▇ Production Report are necessary to accurately reflect any revisions to the Plant’s production capacity as provided in the ▇▇▇▇▇▇▇▇ Production Report. In the event that the Parties determine that an adjustment is necessary, the Parties shall request that ▇▇▇▇▇▇▇▇ Engineers make a revision to the report and any necessary recalculation of the Plant’s production capacity. (iv) Any payment of the Production Increase shall be paid, at Buyer’s option, in cash or shares of Viking Preferred Stock, or a combination of both. Any payment in shares of Viking Preferred Stock shall be paid within thirty (30) days from the final ▇▇▇▇▇▇▇▇ Production Report and any payment in cash shall be due within one hundred and twenty (120) days from the final ▇▇▇▇▇▇▇▇ Production Report, provided, however, that the Buyer shall be entitled to offset and deduct from the Production Increase any amount owed by Seller to Buyer pursuant to Section 2.03 or Article VIII of the MIPA. (v) Any payments made pursuant to Section 2.03(b) shall be treated as an adjustment to the Purchase Price by the Parties for Tax purposes, unless otherwise required by Law.