Take or Pay Term Sample Clauses
A Take or Pay Term is a contractual provision that obligates the buyer to either take delivery of a specified quantity of goods or services or, if they do not, to pay the seller as if they had. In practice, this means that even if the buyer does not need or use the full amount agreed upon, they are still required to pay for it, such as in long-term supply agreements for commodities or utilities. The core function of this clause is to provide revenue certainty for the seller and allocate the risk of fluctuating demand to the buyer, ensuring the seller is compensated for reserving capacity or resources.
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Take or Pay Term. For each Contract Year transpiring during the Take or Pay Term, the Coke Supply and Purchase Obligation for the Base Case Coal Blend shall be not less than ninety eight percent (98%), nor more than one hundred two percent (102%), of five hundred fifty thousand (550,000) Tons of Coke. The Coke Supply and Purchase Obligation for Coal Blends containing volatile matter content percentages that differ from the Base Case Coal Blend shall be not less than ninety eight percent (98%) nor more than one hundred two percent (102%) of the Coke Tonnage set forth in the attached and incorporated Schedule 6.1(b).
Take or Pay Term. The Take or Pay Term of this Agreement shall commence as of the Full Production Date and subject to earlier termination in accordance with this Agreement, shall continue in effect until the last day of the month immediately following the date which is seven (7) years from the Full Production Date.
Take or Pay Term. (a) The Parties agree that the Take or Pay Term shall extend through the full term of the Coke Purchase Agreement. Effective on and as of the Amendment Effective Date, Sections 2.2 and 2.3 of the Coke Purchase Agreement are hereby deleted in their entirety and replaced by the following:
Take or Pay Term. Unless sooner terminated pursuant to the provisions of Article VI, the “Take or Pay Term” under this Agreement commences as of the date of this Agreement, and shall expire as of the conclusion of the “Take or Pay Term” set forth in the Haverhill Agreement.
Take or Pay Term. The Take or Pay Term of this Agreement shall commence as of the Full Production Date and, subject to earlier termination in accordance with this Agreement, shall continue in full force and effect through the full Term as set forth in Section 2.1.
(b) Effective on and as of the Amendment Effective Date, the following sections are hereby deleted in their entirety and replaced as set forth below each such section reference:
(i) Section 1.2(c):
Take or Pay Term. This Agreement shall be effective as of the date of execution hereof and shall continue in full force and effect through December 31, 2020 (the “Take or Pay Term”), unless terminated earlier in accordance with other provisions of this Agreement.