Common use of Sale Contracts Clause in Contracts

Sale Contracts. Notwithstanding anything that may be inferred to the contrary or as inconsistent with the credit provisions of Section 12, DCRC shall indemnify MSCG for all costs and expenses which may be incurred as a result of a payment default by any Customer under a Sale Contract for delivery of Slurry or as a result of a payment default by Premcor under the Assigned Offtake Agreement (the contract governing any such sale, a “Covered Sale Contract”), any such costs and expense to be reimbursed by DCRC to MSCG as part of the Monthly True-Up Payment. 6.3.1 If MSCG becomes aware of any non-payment breach under a Covered Sale Contract or any proceeding, action or claim which may be instituted, taken or made by MSCG (other than an insurance claim) against a Customer in relation to a Covered Sale Contract (“Third Party Action”), MSCG shall as soon as reasonably practicable give written notice thereof to DCRC providing, in reasonable detail, such available information as may enable DCRC to assess the merits of such Third Party Action.