SME Contracts Clause Samples
The SME Contracts clause defines the specific terms and conditions that apply when one or more parties to the agreement are small or medium-sized enterprises (SMEs). This clause typically outlines eligibility criteria for SME status, such as employee count or annual turnover, and may provide for simplified procedures, reduced compliance requirements, or tailored dispute resolution mechanisms. Its core practical function is to ensure that SMEs are not unduly burdened by contractual obligations designed for larger organizations, thereby promoting fairness and accessibility in commercial relationships.
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SME Contracts. Unless this Agreement is terminated in accordance with Clause 7 of this Agreement, the V-▇▇▇ Group will have a first right of refusal to deliver, as primary sub-contractor, SME Services on the understanding that:
(a) the revenue earned by the V-▇▇▇ Group on each VSCE Sub-contract shall be equivalent to the Agreed Contract Costs divided by [*Confidential information omitted and filed separately with the Securities and Exchange Commission]%, providing the V-▇▇▇ Group with a gross margin equivalent to [*Confidential information omitted and filed separately with the Securities and Exchange Commission]%; and
(b) the V-▇▇▇ Group will undertake in each VSCE Sub-contract to deliver the specified sub-contracted SME Services to the relevant VSCE Group client in accordance with the service level agreements set forth in the relevant SME Contract, or if no service level agreements are specified in the relevant SME Contract, then as mutually agreed between the V-▇▇▇ Group and the VSCE Group. The V-▇▇▇ Group shall continue to have the first right of refusal to deliver the SME Services in the manner stipulated herein upon each successive renewal of such SME Contract.