Common use of Excess Capacity Clause in Contracts

Excess Capacity. In the event that XXXX determines during the Initial Production Period that the XXXX Facility has the capacity to produce more Biodiesel than the amount contained on Schedule 1, XXXX will notify MBF of such additional capacity and the revisions to the Biodiesel Delivery Dates on the applicable Schedule 1 that would result from such increased production and MBF shall have the option to agree to such increased production. In the event XXXX determines the XXXX Facility has the capacity to produce more Biodiesel for MBF in any future Renewal Production Period than the amount contained in Schedule 1, XXXX will notify MBF of such additional capacity, and MBF shall have the option to agree to such increased production (subject to the parties negotiating in good faith and agreeing to appropriate revisions to the Schedule 1 and other necessary terms of a such Renewal Production Option). In either case, if MBF acquires additional production capacity, XXXX will be compensated for such increased production at the Base Toll Fee agreed for such production period. If MBF does not elect to acquire such additional production capacity, XXXX shall be free to utilize such additional capacity as it deems appropriate, including contracting with third parties or producing for its own account.