Variable Rate Fee Clause Samples

Variable Rate Fee. REG and/or its Party Affiliates shall pay to Bunge a fee (“Variable Rate Fee”) on the from time to time Aggregate Outstanding Amount for all Facilities for which Services are provided at a rate per annum equal to the greater of (determined daily) (a) Seven and One-Half Percent (7- 1/2%) per annum over and above the LIBOR Rate (which rate shall fluctuate as and when the LIBOR Rate shall change) or (b) Ten Percent (10%) per annum (“Variable Rate”). “LIBOR Rate” means the daily average of interbank offered rates for US Dollar deposits in the London market based on quotations at major banks, as published under the heading “London Interbank Offered Rates (LIBOR)” in the “Money Rates” column of the most recent edition of The Wall Street Journal for the one month maturity. So long as any Event of Default shall occur or be continuing, the Variable Rate shall increase to the greater of (determined daily) (a) Ten and One-Half Percent (10- 1/2%) per annum over and above the LIBOR Rate (which rate shall fluctuate as and when the LIBOR Rate shall change) or (b) Thirteen Percent (13%) per annum. The LIBOR Rate and the Variable Rate will be determined and reset daily on each business day. The term “Aggregate Outstanding Amount” shall mean (a) with respect to all Feedstock Agreements, all amounts paid by Bunge to purchase Feedstock from Feedstock producers for resale to REG or a Party Affiliate and for which Bunge has not received payment from REG and/or its Party Affiliates for its purchase of such Feedstock from Bunge, and (b) with respect to all Biodiesel Agreements, all amounts paid by Bunge to REG and/or its Party Affiliates for the purchase of Biodiesel until the earlier of (i) the due date for payment for such Biodiesel from the third party purchaser under the applicable Contract has occurred, or (ii) Bunge has received actual payment for such Biodiesel from the third party purchaser under the applicable Contract. As used herein, the term “Contract” shall have the meaning given such terms in the forms of Biodiesel Agreement attached hereto. The Variable Rate Fee for each Facility shall be (i) calculated on a daily basis, (ii) computed on an actual day, 360-day year basis and (iii) payable monthly in arrears by the fifteenth (15th) day after the end of each month.