Common use of Reconciliation to the Actual Netback Price Clause in Contracts

Reconciliation to the Actual Netback Price. At the end of each calendar month, promptly after the information necessary to calculate the Netback Price becomes available, RPMG will calculate the actual Netback Price for the preceding month under the Quarter Model by adjusting the Variable Components to reflect the actual selling price for all ethanol sold during the month and the actual expenses incurred during the period (the “Actual Netback Price”). Within fifteen days after the end of each month, RPMG shall furnish to Member a reconciliation of the Estimated Netback Price to the Actual Netback Price for the preceding month. If the Estimated Netback Price paid to Member exceeded the Actual Netback Price, Member will refund to RPMG the overpayment within ten (10) days after receipt of the reconciliation. On the other hand, if the Estimated Netback Price paid was less than the Actual Netback Price owed to Member, then RPMG will pay Member the additional amount owed to Member within ten (10) days after the completion of the reconciliation. In lieu of Member directly refunding any amounts to RPMG by separate payment, and RPMG directly refunding any amounts to Member by separate payment, under this Section 7 the parties may offset or apply the such amounts to subsequent payments.

Reconciliation to the Actual Netback Price. At the end of each calendar month, promptly after the information necessary to calculate the Netback Price becomes available, RPMG will calculate the actual Netback Price for the preceding month under the Quarter Model by adjusting the Variable Components to reflect the actual selling price for all ethanol gallons sold during the month and the actual expenses incurred during the period (the “Actual Netback Price”). Within fifteen ten (10) business days after the end of each month, RPMG shall furnish to Member a reconciliation of the Estimated Netback Price Advance Rate to the Actual Netback Price for the preceding monthPrice. If the Estimated Netback Price Advance Rate paid to Member exceeded the applicable Actual Netback Price, Member will refund to RPMG the overpayment within ten (10) days after receipt of the reconciliation. On the other hand, if the Estimated Netback Price Advance Rate paid was less than the applicable Actual Netback Price owed to Member, then RPMG will pay Member the additional amount owed to Member within ten (10) days after the completion of the reconciliation. In lieu of Member directly refunding any amounts to RPMG by separate payment, and RPMG directly refunding any amounts to Member by separate payment, under this Section 7 the parties by mutual agreement may offset or apply the such amounts to subsequent paymentspayments to be made within RPMG’s standard billing and payment cycle.