Common use of Taking in Kind Clause in Contracts

Taking in Kind. The Payee may, at its option elect, upon written notice to the Payor given prior to the commencement of any particular Fiscal Quarter, to receive payment in kind of the Royalty payable in respect of such Fiscal Quarter, by delivery of Refined Products, Other Refined Products or Intermediate Products having a Market Value equivalent to the cash value of such Royalty otherwise payable, but without deduction of those Permissible Deductions, if any, that might otherwise have been applied but may be avoided by the taking-in-kind. Any election hereunder by the Payee to receive payment in kind shall continue until the Payee delivers written notice to the Payor prior to the end of any Fiscal Quarter to cease such payment in kind.