Compensation Plan Terms Clause Samples

Compensation Plan Terms. 7.1 The maximum amount payable for all products and services provided under this Agreement shall not exceed $ $3,980,684 for the five-year term. Included in the total is $80,000 of contingency fees which are not guaranteed to the vendor. At County’s option, the contingency fees may be used to purchase additional goods and services listed in Exhibit B and Appendix B-1. Additional purchases shall be made via a Contract Release Purchase Order to the Contractor. Any additional goods and services requested by the County that is not included in the Agreement shall be added via an Amendment to the Agreement with goods, services and pricing negotiated and agreed upon by both parties. 7.2 Progress payments shall be made to Contractor by County based on net forty-five (45) days payment terms, following receipt of invoices that may be issued after acceptance of designated milestones as shown below in Compensation Plan Table. All payments are based upon County’s acceptance of Contractor’s performance as evidenced by successful completion of all of the deliverables as set forth for each milestone. County shall have no obligation to pay unless Contractor has successfully completed and County has approved the Milestone for which payment is due. 7.3 Payment for any part or parts of the System provided hereunder, or inspection or testing thereof by County, shall not constitute acceptance or relieve Contractor of its obligations under this Agreement. County may inspect the components of the System when delivered and reject upon notification to Contractor any and all the System, which does not conform to the Specifications or other requirements of this Agreement. Components of the System, which are rejected shall be promptly corrected, repaired or replaced by Contractor. If County receives components of the System with defects or nonconformities not reasonably apparent on inspection, then County reserves the right to require prompt correction, repair or replacement by Contractor in accordance with Contractor’s warranty obligations. 7.4 Work shall commence immediately upon execution of the Agreement.