Common use of Business Rules Clause in Contracts

Business Rules. The following describes the business rules AREI will follow and the methodology AREI will employ to measure its performance against the commercial objective set forth above with contracts beginning effective October 1, 2003. A. To the extent commercially feasible, AREI will attempt to maintain its total mix of Alliance Partner sales contracts, as follows: Fixed Price 20% 33% 45% Gas Plus 20% 33% 45% Spot 20% 33% 45% B. Prior to entering into a contract for the sale of ethanol of a Contract Segment type specified in 3.A. above originating from the Purchase/Resale Program (a "New Resale Contract") AREI will compare the average netback price (on a cents per gallon basis) being realized from the sale of that portion of the Pooled Market Alliance Volumes being sold under then existing contracts of the same Contract Segment (with such average netback price to be calculated on the same basis as the Net Pooled Price, except limited to the specific Contract Segment type at issue) (herein the "Alliance Contract Segment Net Pooled Price") against the average net back price (on a cents per gallon basis before purchase/resale margin) being realized from the sale of that portion of the quantities of ethanol being purchased under the Purchase/Resale Program and being sold under then existing contracts of the same Contract Segment under the Purchase/Resale Program (with such average netback price to be calculated on a basis similar to that used in calculating the Net Pooled Price except using Purchase/Resale Program volumes rather than Pooled Market Alliance Volumes). Where a New Resale Contract will be a Gas Plus Contract Segment type, only contracts having the same gasoline index will be used in making the above comparison. Whenever possible and to the extent commercially feasible, AREI will only enter into a New Resale Contract of a particular Contract Segment type when the then existing Purchase/Resale Contract Segment Net Pooled Price before purchase/resale margin (after including such New Resale Contract) will be less than or equal to the then existing Alliance Contract Segment Net Pooled Price, both as determined on the basis of then existing contracts of the same Contract Segment type. C. AREI may still enter into Purchase/Resale Program contracts for good commercial reasons.

Appears in 2 contracts

Samples: Ethanol Marketing Agreement (Aventine Renewable Energy Holdings Inc), Ethanol Marketing Agreement (Aventine Renewable Energy Holdings Inc)

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Business Rules. The following describes the business rules AREI will follow and the methodology AREI will employ to measure its performance against the commercial objective set forth above with contracts beginning effective October 1, 2003in effect and established after the date of this Agreement. A. To the extent commercially feasible, AREI will attempt to maintain its total mix of Alliance Partner sales contracts, as follows: Fixed Price 20% 33% 4555% Gas Plus 20% 33% 45% Spot 20% 33% 45% B. Prior to entering into a contract for the sale of ethanol of a Contract Segment type specified in 3.A. above originating from the Purchase/Resale Program (a "New Resale Contract") AREI will compare the average netback price (on a cents per gallon basis) being realized from the sale of that portion of the Pooled Market Alliance Volumes being sold under then existing contracts of the same Contract Segment (with such average netback price to be calculated on the same basis as the Net Pooled Price, except limited to the specific Contract Segment type at issue) (herein the "Alliance Contract Segment Net Pooled Price") against the average net back price (on a cents per gallon basis before purchase/resale margin) being realized from the sale of that portion of the quantities of ethanol being purchased under the Purchase/Resale Program and being sold under then existing contracts of the same Contract Segment under the Purchase/Resale Program (with such average netback price to be calculated on a basis similar to that used in calculating the Net Pooled Price except using Purchase/Resale Program volumes rather than Pooled Market Alliance Volumes). Where a New Resale Contract will be a Gas Plus Contract Segment type, only contracts having the same gasoline index will be used in making the above comparison. Whenever possible and to the extent commercially feasible, AREI will only enter into a New Resale Contract of a particular Contract Segment type when the then existing Purchase/Resale Contract Segment Net Pooled Price before purchase/resale margin (after including such New Resale Contract) will be less than or equal to the then existing Alliance Contract Segment Net Pooled Price, both as determined on the basis of then existing contracts of the same Contract Segment type. C. AREI may still enter into Purchase/Resale Program contracts for good commercial reasons.

Appears in 2 contracts

Samples: Ethanol Marketing Agreement (Aventine Renewable Energy Holdings Inc), Ethanol Marketing Agreement (Aventine Renewable Energy Holdings Inc)

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