Common use of Excess Inventory Levels Clause in Contracts

Excess Inventory Levels. (a) If, at any time, either Party determines, with respect to any Product Group, that the aggregate quantity of such Product Group being held in the Included Locations exceeds the Maximum Inventory Level for such Product Group (such excess, an “Excess Quantity”), such Party shall promptly notify the other Party of the existence and volume of such Excess Quantity. Within three (3) Business Days after such notice is given, Xxxx shall advise the Company as to whether Xxxx accepts such Excess Quantity (in which case Section 7.10(b) shall apply) or rejects such Excess Quantity (in which case Section 7.10(c) shall apply). (b) If Xxxx accepts an Excess Quantity then, for all purposes of this Agreement, such Excess Quantity shall constitute the Maximum Inventory Level for the relevant Product Group for the balance of the month in which such Excess Quantity was first identified and, at Aron’s option, for such additional month or months as Xxxx may specify; provided that if Xxxx does not accept such Excess Quantity for any additional month or months, such Excess Quantity shall only be in effect for the then current month and if such Excess Quantity remains after the end of such current month, the provisions of this Section 7.10 shall apply anew as of the beginning the following month. (c) If Xxxx rejects an Excess Quantity then, for purposes of determining amounts due under Sections 10.1 and 10.2 of this Agreement, such Excess Quantity shall not be counted as Crude Oil or Products being held at an Included Location. In such case, if the Company is able to segregate in one or more Included Tanks a quantity of the relevant Product Group at least equal to such Excess Quantity, the Company may, at its option, elect to designate such Included Tanks and purchase from Xxxx the segregated quantity of such Product Group held in such designated Included Tanks so that the quantity of such Product Group owned by Xxxx would not exceed the Maximum Inventory Level for the relevant Product Group after giving effect to such purchase, at a price equal to the product of (a) the volume of such Product Group held in such Included Tanks and (b) the Current Month Pricing Benchmark for the applicable Product Group. After settlement of such purchase, such Included Tanks shall no longer constitute Included Locations for purposes hereof unless and until Xxxx determines, in its reasonable discretion, that Aron’s ownership of the quantities held in such tanks would not result, as of the time of such determination, in the aggregate quantity of the relevant Product Group owned by Xxxx exceeding the applicable Maximum Inventory Level. If and when such determination is made, the Parties shall confirm the sale by the Company to Xxxx of the quantities held in such Included Tanks at a price equal to the product of (a) such quantity and (b) the Current Month Pricing Benchmark for the applicable Product Group and upon the settlement of such purchase, such Included Tanks shall thereafter again constitute Included Locations for all purposes hereof.

Excess Inventory Levels. (a) IfThe Company shall promptly notify Xxxx if, at any time, either Party determines, with respect to any Product Group, that the aggregate quantity of such Product Group being held in the Included Locations exceeds the Maximum Inventory Level for such Product Group (such excess, an “Excess Quantity”), such Party . Such notice shall promptly notify contain the other Party of the existence and applicable volume of such Excess Quantity. Within three (3) Business Days after such notice is given, Xxxx shall advise the Company as to whether Xxxx accepts such Excess Quantity (in which case Section 7.10(b) shall apply) or rejects such Excess Quantity (in which case Section 7.10(c) shall apply). (b) If Xxxx accepts an Excess Quantity then, then the Maximum Inventory Level for all purposes the relevant Product Group shall be automatically temporarily adjusted (on a one-time basis) by the amount of this Agreement, such Excess Quantity Quantity, and such adjusted Maximum Inventory Level shall temporarily constitute the Maximum Inventory Level for the relevant Product Group for the balance of the month day in which such Excess Quantity was first identified until and including the day Xxxx accepts such Excess Quantity and, at Aron’s option, for such additional month day or months days as Xxxx may specifyspecify in writing; provided that if Xxxx does not accept such Excess Quantity for any additional month day or monthsdays, such Excess Quantity shall only be in effect for the then current month day in which such Excess Quantity was first identified until and including the day Xxxx accepts such Excess Quantity and if such Excess Quantity remains after the end of such current monthperiod, the provisions of this Section 7.10 shall apply anew as of the beginning on the following monthday. (c) If Xxxx rejects an Excess Quantity then, for purposes of determining amounts due under Sections 10.1 and 10.2 of this Agreement, such Excess Quantity shall not be counted as Crude Oil or Products being held at an Included Location. So long as such Excess Quantity remains in an Included Tank which contains any other quantity of the relevant Product Group that is Aron’s Property, then Xxxx shall have exclusive right, title and interest to such Excess Quantity. In such case, if the Company is able to segregate in one or more Included Tanks a quantity of the relevant Product Group at least equal to such Excess QuantityQuantity in which no other Aron’s Property is held, the Company may, at its option, elect to designate such Included Tanks and purchase from Xxxx the segregated quantity of such Product Group held in such designated Included Tanks so that the quantity of such Product Group owned by Xxxx would not exceed the Maximum Inventory Level for the relevant Product Group after giving effect to such purchase, at a price value equal to the product of (a) the volume of such Product Group held in such Included Tanks and (b) the Current Month Pricing Benchmark Value for the applicable Product Group. After settlement of such purchase, such Included Tanks shall no longer constitute Included Locations for purposes hereof unless and until Xxxx determines, in its reasonable discretion, that Aron’s ownership of the quantities held in such tanks would not result, as of the time of such determination, in the aggregate quantity of the relevant Product Group owned by Xxxx exceeding the applicable Maximum Inventory Level. If and when such determination is made, the Parties shall confirm the sale by the Company to Xxxx of the quantities held in such Included Tanks at a price value equal to the product of (a) such quantity and (b) the Current Month Pricing Benchmark Value for the applicable Product Group and upon the settlement of such purchase, such Included Tanks shall thereafter again constitute Included Locations for all purposes hereof.

Excess Inventory Levels. (a) IfThe Company shall promptly notify Aron if, at any time, either Party determines, with respect to any Product Group, that the aggregate quantity of such Product Group being held in the Included Locations exceeds the Maximum Inventory Level for such Product Group (such excess, an “Excess Quantity”), such Party . Such notice shall promptly notify contain the other Party of the existence and applicable volume of such Excess Quantity. Within three (3) Business Days after such notice is given, Xxxx Aron shall advise the Company as to whether Xxxx Aron accepts such Excess Quantity (in which case Section 7.10(b) shall apply) or rejects such Excess Quantity (in which case Section 7.10(c) shall apply). (b) If Xxxx Aron accepts an Excess Quantity then, then the Maximum Inventory Level for all purposes the relevant Product Group shall be automatically temporarily adjusted (on a one-time basis) by the amount of this Agreement, such Excess Quantity Quantity, and such adjusted Maximum Inventory Level shall temporarily constitute the Maximum Inventory Level for the relevant Product Group for the balance of the month day in which such Excess Quantity was first identified until and including the day Aron accepts such Excess Quantity and, at Aron’s option, for such additional month day or months days as Xxxx Aron may specifyspecify in writing; provided that if Xxxx Aron does not accept such Excess Quantity for any additional month day or monthsdays, such Excess Quantity shall only be in effect for the then current month day in which such Excess Quantity was first identified until and including the day Aron accepts such Excess Quantity and if such Excess Quantity remains after the end of such current monthperiod, the provisions of this Section 7.10 shall apply anew as of the beginning on the following monthday. (c) If Xxxx Aron rejects an Excess Quantity then, for purposes of determining amounts due under Sections 10.1 and 10.2 of this Agreement, such Excess Quantity shall not be counted as Crude Oil or Products being held at an Included Location. So long as such Excess Quantity remains in an Included Tank which contains any other quantity of the relevant Product Group that is Aron’s Property, then Aron shall have exclusive right, title and interest to such Excess Quantity. In such case, if the Company is able to segregate in one or more Included Tanks a quantity of the relevant Product Group at least equal to such Excess QuantityQuantity in which no other Aron’s Property is held, the Company may, at its option, elect to designate such Included Tanks and purchase from Xxxx Aron the segregated quantity of such Product Group held in such designated Included Tanks so that the quantity of such Product Group owned by Xxxx Aron would not exceed the Maximum Inventory Level for the relevant Product Group after giving effect to such purchase, at a price value equal to the product of (a) the volume of such Product Group held in such Included Tanks and (b) the Current Month Pricing Benchmark Value for the applicable Product Group. After settlement of such purchase, such Included Tanks shall no longer constitute Included Locations for purposes hereof unless and until Xxxx Aron determines, in its reasonable discretion, that Aron’s ownership of the quantities held in such tanks would not result, as of the time of such determination, in the aggregate quantity of the relevant Product Group owned by Xxxx Aron exceeding the applicable Maximum Inventory Level. If and when such determination is made, the Parties shall confirm the sale by the Company to Xxxx Aron of the quantities held in such Included Tanks at a price value equal to the product of (a) such quantity and (b) the Current Month Pricing Benchmark Value for the applicable Product Group and upon the settlement of such purchase, such Included Tanks shall thereafter again constitute Included Locations for all purposes hereof.