Common use of Overage Amounts Clause in Contracts

Overage Amounts. If Producer requires any Oil for biodiesel production at the Facility in excess of the Standard Monthly Amount for a given month, the following procedures will apply: (a) Producer must notify Bunge (an “Overage Request”) on a business day of the quantity of Oil in excess of the Standard Monthly Amount that Producer wishes to procure for the given month. (b) Within 24 hours after receiving an Overage Request, Bunge will notify Producer how much Oil (the “Proposed Quantity”) Bunge is willing to supply to Producer in response to such Overage Request. (c) Bunge will have the exclusive right to provide, and Producer will have the right to purchase from Bunge, the Proposed Quantity at a mutually agreed-upon Total Price (as defined in Section 4.1). If the Parties cannot mutually agree upon a Total Price for purposes of this Section 1.2, then Producer may obtain the Proposed Quantity of Oil from any third party at any price that it negotiates; provided that such third-party price may not be equal to or higher than the last price offered by Bunge during the Parties’ negotiations. (d) To the extent that the quantity specified by Producer in a specific Overage Request exceeds the applicable Proposed Quantity, then Producer may obtain a quantity of Oil equal to such excess amount from any third party at any price that it negotiates.