Common use of INVOICES AND TERMS OF PAYMENT Clause in Contracts

INVOICES AND TERMS OF PAYMENT. (a) Payment for Products, Licensed Materials and Services (including transportation charges and taxes, if applicable) will be due in accordance with the payment schedule described below. Upon acceptance of the purchase order and initial payment required below, Seller will commence the order fulfillment process. Seller shall notify Customer when the Products and/or Licensed Materials are ready for shipment. Upon such notification, Customer shall arrange the electronic transfer of funds for the second payment in accordance with subsection (c) below. Upon receipt of the second scheduled payment, Seller will release the shipment for delivery to Customer. Seller will provide Customer a "record only" invoice after receipt of the second payment. Such invoice will reflect the amount due and payments received through the date of the invoice. If Seller is responsible for installation, the final payment will be invoiced upon Turnover or as soon thereafter as practical. For furnish only orders the final payment will be invoiced upon shipment or as soon as practical thereafter. In either case the payment is due for receipt by Seller within thirty (30) days of the date of the invoice. ---------------------------------------------------------------------------------------------- Payment Milestone Schedule Percent of Total Amount of Purchase Order Due ---------------------------------------------------------------------------------------------- To Accompany Purchase Order (Initial [***]% Payment) ---------------------------------------------------------------------------------------------- Prior to Shipment of Products (Second [***]% Payment) ---------------------------------------------------------------------------------------------- Due to Seller within thirty (30) days of date of [***]% invoice (Final Payment) ----------------------------------------------------------------------------------------------

INVOICES AND TERMS OF PAYMENT. (a) Payment for Products, Licensed Materials Materials, and Services (including transportation charges and taxes, if applicable) will be due billed by Seller as hereinafter set forth: (a) With respect to Products, Licensed Materials, and Services deployed in accordance with the payment schedule described below. Upon acceptance Initial BTAs other than the *_____________________________*: * CONFIDENTIAL TREATMENT REQUESTED 12 (i) and (b) With respect to Products, Licensed Materials, and Services deployed in the *________________________* for purposes of the purchase order trial and initial payment required below, Seller will commence the order fulfillment process. Seller shall notify Customer when the Products and/or Licensed Materials are ready for shipment. Upon such notification, Customer shall arrange the electronic transfer of funds for the second payment in accordance with subsection not Gap Purchases: (i) and (ii) and (c) belowWith respect to GAP Purchases: (i) and (ii) Notwithstanding anything herein contained to the contrary, the parties acknowledge and agree that the invoicing procedure set forth above shall apply only to Initial Products which are generally available. Upon receipt Products, Licensed Materials, and Services procured by Customer under this Agreement which are not generally available Initial Products shall be subject to such invoicing terms as are mutually agreed to by the parties in writing. *______________________________________________________________________________ ________________________________________________________________________________ __________________________________________*. Delinquent payments are subject to a late payment charge at the rate of the second scheduled paymentone and one-half percent (1-1/2%) per month, Seller will release the shipment for delivery to Customer. Seller will provide Customer a "record only" invoice after receipt or portion thereof, of the second payment. Such invoice will reflect the amount due (but not to exceed the maximum lawful rate). Any disputed items remaining after the resolution of such dispute will be subject to a retroactive late payment * CONFIDENTIAL TREATMENT REQUESTED 13 charge based upon the original invoice date. Customer agrees to pay Seller's reasonable attorneys fees and payments received through other costs incurred by Seller in collection of any amounts invoiced hereunder and past due. Customer shall notify Seller of any disputed invoice amounts within thirty (30) days from the date of the invoice. If Seller is responsible for installation, may apply any credit which remains outstanding in favor of Customer to the final payment will be invoiced upon Turnover or as soon thereafter as practical. For furnish only orders the final payment will be invoiced upon shipment or as soon as practical thereafter. In either case the payment is due for receipt by Seller within thirty (30) days of the date of the invoice. ---------------------------------------------------------------------------------------------- Payment Milestone Schedule Percent of Total Amount of Purchase Order Due ---------------------------------------------------------------------------------------------- To Accompany Purchase Order (Initial [***]% Payment) ---------------------------------------------------------------------------------------------- Prior to Shipment of Products (Second [***]% Payment) ---------------------------------------------------------------------------------------------- Due to Seller within thirty (30) days of date of [***]% oldest undisputed invoice (Final Payment) ----------------------------------------------------------------------------------------------which remains in Customer's portfolio.

INVOICES AND TERMS OF PAYMENT. (a) Payment for Products, Licensed Materials and Services (including transportation charges and taxes, if applicable) will be due in accordance with the payment schedule described below. Upon acceptance of the purchase order and initial payment required below, Seller will commence the order fulfillment process. Seller shall notify Customer when the Products and/or Licensed Materials are ready for shipment. Upon such notification, Customer shall arrange the electronic transfer of funds for the second payment in accordance with subsection (c) below. Upon receipt of the second scheduled payment, Seller will release the shipment for delivery to Customer. Seller will provide Customer a "record only" invoice after receipt of the second payment. Such invoice will reflect the amount due and payments received through the date of the invoice. If Seller is responsible for installation, the final payment will be invoiced upon Turnover or as soon thereafter as practical. For furnish only orders the third and final payment payments will be invoiced upon shipment or as soon as practical thereafter. In either case the payment is due for receipt by Seller within thirty (30) days of the date of the invoice. ---------------------------------------------------------------------------------------------- With respect to the payment for Products, Licensed Materials and Services specified in this General Agreement, in the event that Customer enters into a loan agreement with a third party lender to finance the procurement of the Products, Licensed Materials and Services, under this Agreement, the "Loan Agreement" between Customer and lender may authorize lender to pay proceeds directly to Seller. Seller agrees to accept payment from lender in satisfaction of Customer's payment obligation hereunder; however, that the Terms of Payment set forth in this Section shall be complied with in full. ---------------------------------------------------------------------------------------------------------------------- Payment Milestone Schedule Percent of Total Amount of Purchase Order Due ---------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- To Accompany Purchase Order (Initial [***]% Payment) ---------------------------------------------------------------------------------------------- 15% ---------------------------------------------------------------------------------------------------------------------- Prior to Shipment of Products (Second [***]% Payment) ---------------------------------------------------------------------------------------------- 40% ---------------------------------------------------------------------------------------------------------------------- Due to Seller within thirty (30) days of Shipment of 30% Products (Third Payment) ---------------------------------------------------------------------------------------------------------------------- Due to Seller within thirty (30) days of date of [***]invoice 15% invoice (Final Payment) -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (b) For Products, Licensed Materials and Services (including transportation charges and taxes, if applicable) that are not required to be paid in advance, Seller will invoice Customer, all amounts due for Products and Licensed Materials upon shipment and all amounts due for Services, upon completion of Services or, in either event, as soon as practical thereafter Customer shall pay such invoiced amounts for receipt by Lucent within thirty (30) days of the invoice date. Xxxx and Hold Products will be invoiced by Seller upon the earlier of (i) completion of assembly at Seller's facility or (ii) upon stocking at Customer's designated location. Such invoice will serve as Seller's notification that Xxxx and Hold Products are complete and ready to be released by Customer for final shipment. A sample invoice is provided in Exhibit 2 for informational purposes only. (c) Customer shall pay all amounts due Seller hereunder using Electronic Funds Transfer ("EFT") whether amounts have been invoiced by Seller or are due as advance payments. EFT payments by Customer shall be made to the following account of Seller or such other account as is subsequently designated by Seller in writing and, concurrent with the EFT payment, Customer shall fax a copy of the remittal to Seller's Manager Cash Operations at 000-000-0000. Chase Manhattan Bank New York, New York Account Name: Lucent Technologies Inc. ACCT. 910144-9099 ABA 000000000 (d) If Customer fails to pay any invoiced amount when due, the invoiced amount will be subject to a late payment charge at the rate of one and one half percent (1-1/2%) per month, or portion thereof, of the amount due (but not to exceed the maximum lawful rate). Customer agrees to pay Sellers attorneys fees and other costs incurred by Seller in the collection of any amounts invoiced hereunder. (e) Customer agrees to review all invoices furnished by Seller hereunder upon receipt and, notify Seller of any billing discrepancies within ten (10) days of receipt of the applicable invoice. Such inquiries can be directed to Seller in writing or by telephone. Inquiries shall be made to the telephone number or, if in writing, to the address identified on the invoice.

INVOICES AND TERMS OF PAYMENT. (a) Payment for Products, Licensed Materials and Services (including transportation charges and taxes, if applicable) will be due in accordance with the payment schedule described below. Upon Seller's acceptance of the a Customer purchase order, Seller shall issue to Customer a written notice of purchase order acceptance and initial payment required belowrequest for payment, and Customer thereafter shall have five (5) business days to pay to Seller, by EFT, twenty percent (20%) of the value of such purchase order. Subject to Seller's right to discontinue processing such order in the event Customer fails to timely pay such twenty percent (20%) amount, Seller will commence the order fulfillment processprocess with respect to such purchase order. Seller shall notify issue notice of readiness for shipment and request for payment to Customer when not more than two (2) weeks prior to the date on which the Products and/or Licensed Materials are ready for shipment. Upon will be shipped by Seller, and Customer thereafter shall have five (5) business days to pay Seller, by EFT, sixty percent (60%) of the value of such notification, Customer shall arrange the electronic transfer of funds for the second payment in accordance with subsection (c) belowpurchase order. Upon receipt of the second scheduled payment, Seller will release the shipment for delivery to Customer. Seller Customer and will provide to Customer a "record only" invoice after receipt of the second payment. payment Such invoice will reflect the amount due and payments received through the date of the invoice. If Seller is responsible for installation, the For switch Products: (i) final payment will be invoiced upon Turnover or as soon thereafter as practicalthe earlier of: (x) Cutover; and (y) sixty (60) days after Turnover, provided that there are no identified deficiencies, in which case the sixty (60) day period shall be extended, on a day-by-day basis, until there are no outstanding deficiencies; and (ii) payment shall be made by Customer by EFT within five (5) days of receipt of such invoice by Customer. For furnish only orders orders, the final payment will be invoiced upon shipment or as soon as practical thereafter. In either case the , and payment is due for receipt by Seller within thirty (30) days of the date of the invoice. ---------------------------------------------------------------------------------------------- Payment Milestone Schedule Percent A sample invoice is provided in EXHIBIT 1 for informational purposes only. --------------------------------------------------------------- ---------------------------------------------------------- 5ESS(R)-2000 PRODUCTS PERCENT OF TOTAL AMOUNT OF PAYMENT MILESTONE SCHEDULE PURCHASE ORDER DUE --------------------------------------------------------------- ---------------------------------------------------------- Seller's Receipt and Acceptance of Total Amount of Purchase Order Due ---------------------------------------------------------------------------------------------- To Accompany Purchase Order (Initial [***]20% Payment) ---------------------------------------------------------------------------------------------- Prior to --------------------------------------------------------------- ---------------------------------------------------------- Upon Shipment of Products (Second [***]Payment) 60% --------------------------------------------------------------- ---------------------------------------------------------- Upon Cutover (Final Payment) 20% --------------------------------------------------------------- ---------------------------------------------------------- -------------------------------------------------------------- ------------------------------------------------------------- TRANSMISSION/ACCESS PRODUCTS PERCENT OF TOTAL AMOUNT OF PAYMENTS MILESTONE SCHEDULE PURCHASE ORDER DUE -------------------------------------------------------------- ------------------------------------------------------------- Seller's Receipt and Acceptance of Purchase Order (Initial 25% Payment) ---------------------------------------------------------------------------------------------- Due to -------------------------------------------------------------- ------------------------------------------------------------- Upon Shipment of Products 75% -------------------------------------------------------------- ------------------------------------------------------------- (b) For Products, Licensed Materials and Services not included in SUBSECTION (A) above (including transportation charges and taxes, if applicable), Seller will invoice Customer all amounts due for Products and Licensed Materials upon shipment and all amounts due for Services upon completion of Services or, in either event, as soon as practical thereafter. Customer shall pay such invoiced amounts for receipt by Lucent within thirty (30) days of the date of [***]% the invoice. Bill xxx Hold Products will be invoiced by Seller upon the earlier of: (i) completion of assembly at Seller's facility; or (ii) upon stocking at Customer's designated location. Such invoice will serve as Seller's notification that Bill xxx Hold Products are complete and ready to be released by Customer for final shipment. (Final Paymentc) ----------------------------------------------------------------------------------------------Customer shall pay or cause to be paid all amounts invoiced by Seller (or amounts requested to be paid) hereunder using Electronic Funds Transfer ("EFT"). EFT payments by Customer shall be made to the following account of Seller or such other account as is subsequently designated by Seller in writing and, concurrent with the EFT payment, Customer shall fax a copy of the remittal to Seller's Manager Cash Operations at 770-000-0000. SSUH2-37635-4 Lucent Technologies/Allegiance Telecom Confidential 9 13 Xxxxx Xxxxxxxxx Xxxx Xxx Xxxx, Xxx Xxxx Account Name: Lucent Technologies Inc. ACCT. 910144-9099 ABA 021000000 (d) If Customer fails to pay any invoiced amount when due, the invoiced amount, excluding any amounts disputed by Customer in good faith, will be subject to a late payment charge at the rate of one and one half percent (1-1/2%) per month, or portion thereof, of the undisputed amount due (but not to exceed the maximum lawful rate). (e) Customer agrees to review all invoices furnished by Seller hereunder upon receipt and notify Seller of any billing discrepancies within a reasonable time from Customer's receipt of the applicable invoice. Such inquiries can be directed to Seller in writing or by telephone. Inquiries shall be made to the telephone number or, if in writing, to the address identified on the invoice.