Page 3 - Demo

Contents
1. Introduction ..............................................................................................................3
2. Overage Defined......................................................................................................5
3. Taxing the Overage .................................................................................................6
4. Overage Drafted ......................................................................................................9
5.1 Overage Triggered.................................................................................................11
5.2 The Trigger does not work? ...................................................................................14
6. What is payable? ...................................................................................................15
7. How secure are you? .............................................................................................20
8.1 Time Out ................................................................................................................24
8.2 Buy Out ..................................................................................................................25
9. Good Faith and Disclosure ....................................................................................26
Appendix 1 - Heads of terms for an overage clause .......................................................28 Appendix 2 - Other mechanisms which might be used to protect an overage payment .29
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