Common use of Guaranty Fee Clause in Contracts

Guaranty Fee. In consideration of Royal providing the Royal Guaranty for the benefit of Rhino, Rhino hereby agrees to pay Royal a guaranty fee (the “Guaranty Fee”) equal to one percent (1%) per year of the face amount of any Surety Bond issued under the Surety Agreement for the benefit of Rhino or its subsidiaries for as long as the Royal Guaranty applies to such Surety Bond. The Guaranty Fee shall be paid as follows: a. Upon initial issuance of a Surety Bond, an amount equal to one percent (1%) of the face amount of such Surety Bond per year for the period from the date of issuance of the Surety Bond to the last day of the Term. b. If the Royal Guaranty is still in place at the start of any Term, beginning with the Term that would start on the third anniversary of the execution of the Surety Agreement, an amount equal to one percent (1%) of the face amount of all Surety Bond’s in place at that time.