Payment Terms Agreement: Definition, Terms, Example
Jump to Section
What is a Payment Terms Agreement?
A payment terms agreement is a legal contract between a buyer and seller that outlines how payments will be made. It can also outline what happens if the customer does not pay on time and what interest rates and late fees may apply.
This type of agreement is beneficial for both parties. Customers appreciate having clear expectations when it comes to paying invoices, while companies like to know how they will be compensated if their customers default on their bills.
Common Sections in Payment Terms Agreements
Below is a list of common sections included in Payment Terms Agreements. These sections are linked to the below sample agreement for you to explore.
Payment Terms Agreement Sample
Exhibit 10.11
Confidential Treatment Requested. Confidential portions of this document have been redacted
and have been separately filed with the Commission.
EXTENDED PAYMENT TERMS AGREEMENT
This Extended Payment Terms Agreement (the “Agreement”) is dated June 29, 2009, and is between WEST CENTRAL COOPERATIVE, an Iowa cooperative association (“West Central”), and REG RALSTON, LLC, an Iowa limited liability company (“REG Ralston”).
West Central has been supplying soybean oil produced by it to REG Ralston for use in REG Ralston’s biodiesel production facility (the “Facility”) located next to West Central’s grain cooperative and soybean crushing facilities at Ralston, Iowa.
The parties may agree in the future to have West Central purchase supplies of animal fat, corn oil and other products as feedstock for resale to REG Ralston for use in the Facility (soybean oil, corn oil, animal fat and such other feedstocks are collectively referred to in this Agreement as “Feedstock”).
The parties desire to set forth their understanding as to the terms of payment that will apply for soybean oil that West Central sells to REG Ralston as well as for any other Feedstock that West Central may agree in the future to purchase and resell to REG Ralston.
Therefore, the parties agree as follows:
1. Time of Payment. All payments for Feedstock delivered by or for West Central to REG Ralston shall be paid by wire transfer to an account designated by West Central on or before the 45th day after West Central delivers an invoice for such Feedstock to REG Ralston.
2. Interest. Interest will accrue on amounts due for Feedstock beginning on the 5th day after West Central delivers an invoice for such Feedstock until paid at a rate per annum equal to the lesser of (a) a rate per annum equal to the greater of (determined monthly): (i) *** percent (***%) per annum over and above the LIBOR Rate (which rate of interest shall fluctuate monthly as provided below) or (ii) *** percent (***%) per annum, and (b) the highest rate permitted by law. Said interest shall be computed on an actual day, three hundred sixty day year basis and be payable monthly in arrears by the 15th day after the end of each month. So long as any Event of Default (as defined below) shall occur or be continuing, the interest rate shall increase to the lesser of (a) a rate per annum equal to the greater of (determined monthly): (i) *** percent (***%) per annum over and above the LIBOR Rate (which rate of interest shall fluctuate monthly as provided below) or (ii) *** percent (***%) per annum, and (b) the highest rate permitted by law. “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 “Monthly Rates” column of The Wall Street Journal for the one month maturity as of the date which is two business days before the first day of the month for which interest is to be computed. The LIBOR Rate and the interest rate under this Agreement will be determined and reset for each calendar month as provided above.
3. Maximum Credit. At no time during the term of this Agreement shall the Aggregate Outstanding Amount exceed *** Dollars ($***). The term “Aggregate Outstanding Amount” shall mean the total invoice price from West Central to REG
*** Confidential material redacted and filed separately with the Commission.
Ralston of all Feedstock delivered by or for West Central to REG Ralston plus accrued interest thereon for which West Central has not received payment. If at any time during the term of this Agreement the Aggregate Outstanding Amount shall equal or exceed $***, West Central may immediately suspend deliveries of Feedstock until the Aggregate Outstanding Amount has been reduced below $***.
4. Application and Term of Agreement. The extended payment terms of this Agreement, including without limitation the due dates for payments, the accrual of and calculation of interest and maximum credit, shall apply to all Feedstock delivered by or for West Central to REG Ralston on or after February 12, 2009. Unless earlier terminated in accordance with the terms of this Agreement, West Central's agreement to provide the extended payment terms under this Agreement will expire on February 11, 2010. Notwithstanding the foregoing, West Central may terminate this Agreement at any time, with or without cause, upon at least fifteen (15) days prior written notice to REG Ralston.
5. Security. Subject to the prior written consent of CoBank, ACB, if required under the Reimbursement Agreement dated November 15, 2001, signed in connection with a letter of credit issued by CoBank, ACB for certain IDR Bonds (the “Reimbursement Agreement”), or documents related thereto, as security for all amounts due under this Agreement, REG Ralston hereby grants to West Central a security interest in all of the personal property of REG Ralston, wherever located and whether now existing or hereafter acquired, together with all accessions and additions thereto, and all products and proceeds thereof, including without limiting the generality thereof, cash, deposit accounts, inventories and accounts receivable (the “Collateral”). In addition, REG Ralston hereby grants to West Central an irrevocable power, coupled with an interest, to file any financing statement, continuation statement or amendment necessary to perfect, or maintain perfection of the security interest granted hereby. REG Ralston agrees that such security interest shall be a lien on the Collateral, subject only to the security interest given by REG Ralston to CoBank, ACB pursuant to that Security Agreement dated November 15, 2007 (the “CoBank Security Agreement”).
6. No Liens or Encumbrances. REG Ralston hereby covenants that so long as any amount is due to West Central for Feedstock, or any interest thereon, it will not create, incur, assume, or allow to exist any mortgage, deed of trust, pledge, lien (including the lien of an attachment, judgment, or execution), security interest or other encumbrance of any kind upon any of its real or personal property (including its leasehold interest where the Facility is located), except this covenant shall not apply to (i) the mortgage lien held by CoBank, ACB, as security for the Reimbursement Agreement, (ii) the security interest given by REG Ralston to CoBank, ACB pursuant to the CoBank Security Agreement, and (iii) the security interest given by REG Ralston to West Central as security for this Agreement.
7. Priority. REG Ralston hereby covenants that upon written request by West Central, and in any event upon the occurrence of an Event of Default in the performance by REG Ralston of its obligations hereunder, until the Aggregate Outstanding Amount has been satisfied in full to West Central, REG Ralston will not directly or indirectly make any payments to any Affiliates of REG Ralston, and including payments upon any liabilities (including accounts payable) owing to Affiliates of REG Ralston (“Affiliate Obligations”).
- 2 -
8. Events of Default. The term “Event of Default” shall mean the occurrence of any of the following events:
| (a) | REG Ralston shall fail to make any payment required under this Agreement within three (3) days of when due; |
| (b) | REG Ralston shall fail to perform or observe any covenant contained in this Agreement; |
| (c) | either REG Ralston or any Affiliate (defined below) of REG Ralston shall (i) voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the United States Code or any other federal, state or foreign bankruptcy, insolvency, receivership, liquidation or similar law, (ii) consent to the institution of, or fail to contravene in a timely and appropriate manner, any such proceeding or the filing of any such petition, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator or similar official of itself or a substantial part of its property or assets, (iv) file an answer admitting the material allegations of a petition filed against itself in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due, or (vii) take any corporate or limited liability company action for the purpose of effecting any of the foregoing; |
| (d) | an involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief in respect of REG Ralston or any Affiliate of REG Ralston, or of a substantial part of the property or assets of REG Ralston or any Affiliate of REG Ralston under Title 11 of the United States Code or any other federal, state or foreign bankruptcy, insolvency, receivership, liquidation or similar law, (ii) the appointment of a receiver, trustee, custodian, sequestrator or similar official of REG Ralston or any Affiliate of REG Ralston or of a substantial part of the property or assets of REG Ralston or any Affiliate of REG Ralston, or (iii) the winding up of or liquidation of REG Ralston or any Affiliate of REG Ralston, and such proceeding or petition shall continue undismissed for thirty (30) consecutive days or an order or decree approving or ordering any of the foregoing shall continue unstayed and in effect for thirty (30) consecutive days; |
| (e) | REG Ralston or any Affiliate of REG Ralston shall become insolvent in either the equity or bankruptcy sense of the term; |
| (f) | a judgment or order is rendered against REG Ralston or any Affiliate of REG Ralston and either (i) enforcement proceedings have been commenced by any creditor upon any such judgment or order or (ii) within thirty (30) days after entry thereof, such judgment or order is not paid or otherwise discharged or execution thereof stayed pending appeals, or within thirty (30) days after the expiration of any such stay, such judgment or order is not paid or otherwise discharged; or a judgment or order in an amount in excess of $500,000.00 is rendered against REG Ralston or any Affiliate of REG Ralston, irrespective of whether such judgment or order is paid or otherwise discharged or stayed pending appeal; |
- 3 -
| (g) | any default or event of default shall occur under or within the meaning of any agreement, document or instrument evidencing, securing, guaranteeing the payment of or otherwise relating to any outstanding indebtedness of REG Ralston or an Affiliate of REG Ralston for borrowed money in a principal amount in excess of $500,000.00; (i) any material default or material event of default shall occur under or within the meaning of any material agreement, document or instrument heretofore, now or hereafter executed by REG Ralston or any Affiliate of REG Ralston with or in favor of West Central which is not cured within any applicable grace or cure period (if any); |
| (h) | REG Ralston shall undergo a Change of Control, or REG Ralston enters into any merger or consolidation transaction, or liquidates or dissolves itself (or suffers any liquidation or dissolution), or proceedings are initiated, voluntarily or involuntarily, against REG Ralston or its biodiesel facility for foreclosure or appointment of receiver, or REG Ralston conveys, sells, leases, transfers or otherwise disposes of, in one transaction or a series of related transactions, its biodiesel facility, unless the prior written consent of West Central is first obtained. A “Change of Control” occurs upon any issuance and/or acquisition of voting equity interests of REG Ralston that results in a person or entity other than Renewable Energy Group, Inc. or REG Newco, Inc. holding 50% or more of the outstanding voting equity interests of REG Ralston; |
| (i) | The termination or breach by Bunge North America, Inc. of the Master Services Agreement between Renewable Energy Group, Inc. and Bunge North America, Inc. dated May 9, 2009. |
REG Ralston and each Affiliate shall notify West Central of any Event of Default as soon as possible after the occurrence of any such Event of Default. For purposes of this Agreement the term “Affiliate” means, with respect to a party, any other entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the party specified, with “control” or “controlled” meaning the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities or voting interests, by contract or otherwise.
9. West Central Remedies. Upon the occurrence and during the continuance of any Event of Default, West Central may, at its option, exercise one or more of the following rights and remedies (and any other rights and remedies available to it): (a) West Central may immediately discontinue supplying or delivering any Feedstock to REG Ralston, (b) West Central may declare immediately due and payable all amounts payable by REG Ralston to West Central for Feedstock for which West Central has not received payment and interest thereon as provided in this Agreement, and the same shall thereupon be immediately due and payable, (c) West Central may bring a suit or suits against REG Ralston for specific performance or damages, or both, and (d) West Central may exercise such other rights as it may have as a secured creditor. In any action or proceeding arising out of this Agreement, West Central shall be entitled to recover attorney’s fees and court costs incurred in enforcing its rights hereunder.
- 4 -
10. Effect of Agreement. Except as expressly amended and modified by the terms of this Agreement all other terms and provisions relating to any agreement or course of dealing for the delivery and sale of Feedstock to REG Ralston shall remain unchanged.
11. Notices. All notices required or permitted under this Agreement will be in writing and will be deemed given and made: (i) if by personal delivery, on the date of such delivery, (ii) if by facsimile, on the date sent (as evidenced by confirmation of transmission by the transmitting equipment), (iii) if by nationally recognized overnight courier, on the next business day following deposit, and (iv) if by certified mail, return receipt requested, postage prepaid, on the third business day following such mailing; in each case addressed to the address or facsimile number shown below for such party, or such other address or facsimile number as such party may give to the other party by notice:
| If to West Central: | West Central Cooperative | |
| 406 1st St. P.O. Box 68 | ||
| Ralston, IA 51459 | ||
| Attn: | ||
| Fax: 712-667-3215 | ||
| If to REG Ralston: | REG Ralston, LLC | |
| 416 S. Bell Ave. P.O. Box 888 | ||
| Ames, IA 50010 | ||
| Attn: President | ||
| Fax: 515-239-8019 | ||
12. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and may be executed and delivered by facsimile signature, which shall be considered an original.
The parties are signing this Agreement on the date stated in the introductory clause.
| WEST CENTRAL COOPERATIVE | REG RALSTON, LLC | |||||||
| By | /s/ Jeffrey Stroburg |
By | /s/ Daniel J. Oh | |||||
| Name | Jeffrey Stroburg | Name | Daniel J. Oh | |||||
| Title | CEO | Title | President | |||||
- 5 -
Reference:
Security Exchange Commission - Edgar Database, EX-10.11 9 dex1011.htm EXTENDED PAYMENT TERMS AGREEMENT, Viewed January 27, 2022, View Source on SEC.
Who Helps With Payment Terms Agreements?
Lawyers with backgrounds working on payment terms agreements work with clients to help. Do you need help with a payment terms agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate payment terms agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Payment Terms Agreement Lawyers
Eric H.
I help startups, growth-stage companies, and middle market businesses navigate their most important legal moments, from early fundraising rounds to complex M&A transactions. I work with founders, investors, executives and their ecosystem partners who want exceptional client service without the overhead of a large firm. Whether you are raising capital, planning an acquisition, negotiating complex commercial agreements, or need an experienced general counsel in your corner on a fractional basis, I bring big law and Fortune 500 expertise, at a fraction of their rates. I'm based in Minneapolis and work with clients across Minnesota and nationally.
"Great Experience! Knowledgeable, Fast, and would use him 1000 times more."
Chaz G.
As a former corporate attorney at one of the world's premier global law firms and former in-house counsel at Texas Instruments, a Fortune 500 technology leader, I bring big-firm expertise and corporate-level sophistication to entrepreneurs, startups, and small business owners who deserve the same quality legal support as the largest companies in the world. As a lawyer and startup founder with products currently being sold in national retail chains, I've spent my career at the intersection of complex business transactions, corporate law, and policy. I know how deals get done, where contracts go wrong, and how to protect businesses before problems arise. Now, I put that experience to work for founders and business owners who need practical, straightforward legal guidance without the intimidating price tag of a major law firm. Whether you're signing your first vendor contract, structuring a partnership, protecting your intellectual property, or navigating a business dispute, I translate the law into plain language so you can make confident decisions and focus on growing your business. What I bring to the table: - Complex commercial transactions experience at an AmLaw 100 firm - 7+ years as in-house counsel at a Fortune 500 company - Deep understanding of how businesses actually operate day-to-day - Flat-fee, transparent pricing with no billing surprises - Fast turnaround and direct communication If you're building something, I want to help you protect it.
"Chaz was extremely helpful, thorough, and professional. I hired him for a cease and desist letter involving an unauthorized use of my company’s business identity, EIN, and credit. He took the time to review the documents carefully, explain the legal issues in plain English, and help me understand the strengths and challenges of my situation. What stood out most was how organized he was. He prepared a legal analysis memo before our call, walked me through the authority issues, and adjusted his approach after reviewing additional company documents. He was patient, clear, and never made me feel rushed, even though the situation involved several complicated details. The final work product was strong, detailed, and tailored to my specific facts rather than feeling like a generic template. I would definitely recommend Chaz to anyone who needs a knowledgeable attorney who communicates clearly and takes the time to understand the full picture."
Caroline N.
Caroline N.
Caroline K. Nam, Esq. is a solo attorney who provides legal counsel with a management-first mindset, combining legal expertise with proactive policy development. Prior to starting her own practice, Caroline gained extensive legal experience as a litigator defending and advising employers of all sizes, ranging from a single business owner, to a small family-owned winery, and major, nationwide corporations. Caroline also has experience on the plaintiffs' side representing survivors of sexual abuse against school districts and churches. With her unique litigation background and expertise representing both plaintiffs and defendants, Caroline understands that legal compliance is only a piece of the puzzle for business success. She is committed to leading with compassion to provide a personalized, approachable service for each client. Having safeguarded companies against a variety of business and employment disputes, Caroline is focused on preventative risk management, helping owners reduce potential employment litigation that she has defended firsthand in court. Caroline is dedicated to helping entrepreneurs spend less time worried about liability and more time focusing on business growth. Based in Los Angeles County, she provides accessible, actionable legal solutions throughout Southern California. During her free time, Caroline enjoys yoga and serving her Los Angeles community. In 2025, she partnered with NLSLA to provide pro bono legal services to individuals impacted by the Eaton Fire. Currently, she serves on the board of directors of a nonprofit organization based in Los Angeles.
"I had Caroline create a liability waiver for my Sports Fencing Club. She was prompt in completing the task, helpful and courteous in answering my questions, and in every way professional. I would use her services again if required."
Nick G.
My name is Nick Gleason, and I’m an attorney licensed in California and a veteran of the United States Navy. While in law school, during my clerkship with Mob Entertainment, I worked under the General Counsel, drafting cease and desist letters, demand letters, and assignment and licensing agreements. I also worked with outside counsel on copyright infringement matters, helping to protect the interests of the company. Now in my professional practice, I continue to help clients like you protect your interests by offering affordable legal representation for all your contract and copyright needs. I can draft contracts, review proposed agreements for vulnerabilities, and negotiate terms on your behalf, as well as prepare effective cease and desist letters and demand letters tailored to your situation, including in copyright and DMCA-related matters. I will always be fair and transparent with my fees. I’d love to hear from you.
March 27, 2026
Michelle D.
My career experience has been varied. Although litigation has been a central focus, I’ve served as Of Counsel for a franchise law firm, negotiating contracts with franchisees and vendors to ensure the best terms possible for my client. I have demonstrated acumen in leading and supervising the work of others. As an associate attorney for Shulman Rogers, I oversaw the Summer Intern Program. Throughout my career I directed the work of paralegals and legal receptionists. As a solo practitioner I employed a junior attorney. At each phase I was responsible for the work and performance of another. In my transactional practice I regularly advise clients on agreements, negotiate favorable terms on their behalf, draft agreements, interpret contractual provisions in disputes, provide opinion letters, and represent clients in mediation and arbitration. I’m accustomed to working in high stress, high stakes environments with quick deadlines, demanding and often emotional clients, while performing work that requires great detail, accuracy, and advocacy.
June 22, 2026
Kristen O.
Fractional General Counsel with deep experience in contracts, employment, and operational compliance. I support companies as their day-to-day legal partner—handling agreements, managing risk, and advising leadership on practical business decisions. Whether you need a quick contract review or ongoing legal support, I provide clear, strategic guidance tailored to your business.
April 20, 2026
Fahad J.
Fahad Juneja is a transactional attorney with over 10 years of experience, admitted in California and Texas. His practice covers M&A, commercial contracts, and corporate governance, including drafting and negotiating purchase agreements and related transaction documents, NDAs, collaboration agreements, service agreements, consulting agreements, and other commercial contracts. Fahad began his career in the private equity M&A group of a large law firm (Sidley), then moved in-house to Paramount Pictures, and later advised technology and manufacturing clients at a Bay Area boutique. He now maintains a solo practice, where he supports a primary client and advises fintech and other emerging companies on commercial, corporate, and strategic matters. Fahad's approach emphasizes efficient negotiation, thoughtful drafting, and practical risk allocation. He is available to support M&A transactions, ancillary transaction documents, contract drafting and review, and general corporate matters.
Find the best lawyer for your project
Browse Lawyers Now
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewHow It Works
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
Payment Terms Agreement lawyers by city
- Austin Payment Terms Agreement Lawyers
- Boston Payment Terms Agreement Lawyers
- Chicago Payment Terms Agreement Lawyers
- Dallas Payment Terms Agreement Lawyers
- Denver Payment Terms Agreement Lawyers
- Houston Payment Terms Agreement Lawyers
- Los Angeles Payment Terms Agreement Lawyers
- New York Payment Terms Agreement Lawyers
- Phoenix Payment Terms Agreement Lawyers
- San Diego Payment Terms Agreement Lawyers
- Tampa Payment Terms Agreement Lawyers
Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.
View Trustpilot Review
I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.
View Trustpilot Review
I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.
View Trustpilot Review