Performance Compensation Payments Clause Samples

Performance Compensation Payments. In the event of any Company failure to comply with Section 1.2.7.1 above, Verizon Wireless may elect to receive Performance Compensation Payments. Verizon Wireless shall assess such Payments as set forth hereinafter, and Company shall make such Payments to Verizon Wireless in the form of a credit to the next monthly invoice or, at Verizon Wireless’ option, direct payment to Verizon Wireless. The sole purpose of such Performance Compensation Payments is to provide a mechanism within the context of the ongoing performance of the Agreement under which Verizon Wireless would determine and receive compensation, should Company fail in its performance, without immediate resort to Section 10 (“Termination”) of the Agreement. Accordingly, under normal circumstances, resort to and utilization of the Performance Compensation Payments would preclude the subsequent exercise of default provisions in the Agreement for the specific Company failures for which payments under this Section have been assessed (by Verizon Wireless) and credited (or paid) by Company in accordance Section 1.2. 7.1. Notwithstanding such assessment and credit or payment, any failure or failures shall, nevertheless, be counted in determining the repeated, consistent or cumulative failure of Company to meet these performance requirements of this Agreement (or any amendments thereto). Matter #7▇▇-▇▇▇▇▇-▇▇▇▇ iManage#168918 Cello Partnership d/b/a Verizon Wireless — Proprietary and Confidential In all events, this Section, including any assessment for any failure or failures, shall not be construed to limit Company’s obligation to cure the specific failure or failures to perform. Moreover, Verizon Wireless reserves the right and shall have the option to invoke default should Company at any time fail to meet any performance requirements of this Agreement or any amendment(s) thereto. In addition to removing the Company employee and/or approved subcontractor promptly from the Verizon Wireless account the Performance Compensation Payments shall be calculated as follows: The Performance Compensation Payment from Company to Verizon Wireless shall be a dollar amount equal to one percent (1%) of the average monthly b▇▇▇▇▇▇▇ calculated over the prior six (6) months for the applicable Authorization Letter for each failure to comply with Section 1.2.7 above.”