Fixed Operating Fee Clause Samples

Fixed Operating Fee. As reimbursement for performing the Fixed Fee Billable Items with respect to the Renewable Diesel Facility (including whether performed directly by Operator or any of its Affiliates), Owner shall pay to Operator a fee (the “Fixed Operating Fee”). From and after the Effective Date until the Commercial Operation Date for the first Phase, Owner shall pay to Operator a Fixed Operating Fee of $[●]1. From and after the Commercial Operation Date for the first Phase, Owner shall pay to Operator a Fixed Operating Fee of $[●], as the same may be adjusted pursuant to this Agreement (including this Section 7.2). Owner shall pay a ratable amount of the Fixed Operating Fee (being the annual Fixed Operating Fee divided by twelve (12) months) to Operator on or before the 1st Business Day of each Calendar Month. Such Fixed Operating Fee will be (a) increased (annually, on the first day of each subsequent Calendar Year) by an amount equal to a percentage equal to the greater of zero and the positive change in the Producer Price Index for Finished Goods (Series ID WPUSOP3000) (the “PPI-FG”), as reported during the October immediately before the effective date of the adjustment, with respect to the twelve (12) Calendar Month period ending at the end of the September immediately preceding such publication, and (b) adjusted upward by the agreement of Owner and Operator hereunder, including, for example, relating to a Required Upgrade or an expansions of the Renewable Diesel Facility pursuant to any Approved Capital Project. With respect to the first payment of the Fixed Operating Fee, such fee shall be deposited into the Operating Account by Owner no later than thirty (30) Business Days following the Effective Date.