PAYMENTS AND ESCALATIONS Clause Samples
The "Payments and Escalations" clause defines the terms under which payments are made and how those payments may increase over time. Typically, this clause outlines the schedule, method, and amount of payments due, and specifies the conditions or formulas for periodic increases, such as annual percentage escalations or adjustments tied to inflation indices. Its core function is to provide a clear framework for financial obligations and to ensure that payment amounts remain fair and predictable over the duration of the agreement, thereby reducing disputes and accommodating changes in economic conditions.
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PAYMENTS AND ESCALATIONS. Client agrees to pay to HQ the Monthly Base Services Fee plus applicable sales or use taxes, in advance, on the first day of each calendar month during the initial Term and all extensions thereof, without any deduction, offset, notice o demand. If the Commencement Date shall be other than the first day of a month, fees for any such month shall be prorated. Charges for any Schedule "B' service purchased by Client from HQ shall be due and payable on the 10th of the month following the order for any such service. One year after the Commencement Date of an Office Agreement and each and every anniversary date thereafter, the Monthly Base Services Fee will automatically increase by an agreed upon percentage of the Monthly Base SERVICES Fee due for the month preceding such anniversary date. All Monthly Base Services Fees and other sums payable hereunder shall be payable at the office of HQ or at such other location or to any agent designated in writing by HQ. In addition to any other sums due, Client shall pay monthly late charges equal to five (5%) of all amounts that have not ben paid to HQ within five (5) days of their respective due dates. The parties agree that such late charges are fair and reasonable compensation for costs incurred by HQ where there is default in any payment due under this Master Agreement or an Office Agreement. Upon the execution of an Office Agreement, Client s hall pay HQ or its agent the Refundable services Retainer. The Refundable SERVICES Retainer need not be kept separate and apart from other funds of HQ, no interest shall be paid thereon, and may be used by HQ to provide Schedule "A" and "B" services under this Agreement. In addition to the Refundable SERVICES Retainer, Client will, upon execution of an Office Agreement, pay to HQ the Monthly Base Services Fee for the first full month of the Initial Term. Client agrees that the Refundable Services Retainer shall not be used by Client as payment for the Monthly Base Services Fee for the last month of the Initial Term, or any extension thereof.. In the event Client defaults in the performance of any of the terms hereof, HQ may terminate this Agreement and the license herein granted and may also use, apply or retain the whole, or any part, of the Refundable Services Retainer for the payment of any service fee or any other payment due hereunder, or for payment of any other sum that HQ may spend by reason of Client's default. If Client shall, at the end of the term of this Agreement, h...