Technical Service Fee Clause Samples
The Technical Service Fee clause defines the charges payable for technical services provided under the agreement. Typically, this clause outlines the basis for calculating the fee, such as a fixed amount, hourly rate, or percentage of project costs, and may specify payment schedules or invoicing procedures. Its core function is to ensure both parties have a clear understanding of the costs associated with technical support or services, thereby preventing disputes over payment and clarifying financial obligations.
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Technical Service Fee. 3.1 The Parties agree that, with respect to the services provided by Party B to Party A under this Agreement, Party B shall be entitled to charge Party A on a quarterly basis the service fee in an amount equivalent to a certain percentage of Party A’s total operational income of such quarter (the "Technical Service Fee"). Both Parties will confirm in writing the specific consideration based on further consultations following the execution of this Agreement.
Technical Service Fee. (1) Without Party B’s prior written consent, Party A shall have no right to set off the technical service fees hereof against other amounts payable to Party A by Party B hereunder.
(2) The technical service fees hereunder shall be calculated and verified by the Parties on the basis of the actual technical services provided by Party B, and shall be the sum of the following:
a. the fee for using and servicing the computer hardware and software, which shall be a certain percentage of Party A’s annual sales revenue;
b. the fee for managing the technical service in connection with the brand-names, which shall be a certain percentage of Party A’s annual sales revenue;
c. the service charges for Party B’s technician employees’ services provided during their normal business hours, which shall be based on the actual time of service spent and the specific services provided, and which, for a specific technician employee, shall be the product of his particular hourly rate multiplied by the time he actually spent;
d. other fees, at rates agreed upon by the Parties in view of the actual circumstances; and
e. if party A does not have any profit in a given year, Party B will not charge any service fees for the year.
(3) The technical service fees hereunder shall be paid by Party A to Party B monthly (or quarterly / annually) in RMB. Party B may collect in advance annual service fees around mid-year or at other times agreed upon by the Parties.
(4) Party A shall be responsible for all the tax liabilities arising from the service fees hereunder.
(5) To guarantee the payment of the technical service fees hereunder, Party A’s shareholders will pledge to Party B all the equity interests they hold in Party A. A separate equity interest pledge agreement will be entered into among Party A’s shareholders and Party B.
Technical Service Fee. (1) Without Party B’s prior written consent, Party A shall have no right to set off against the technical service fees hereunder with other amounts payable from Party B to Party A.
(2) The technical service fees hereunder shall be calculated and verified by the Parties on the basis of the actual technical services provided by Party B, and shall be the sum of the following:
a. the fee for use and service of the computer hardware and software, which shall be a certain percentage of Party A’s annual sales revenue;
b. the fee for the technology branding service, which shall be a certain percentage of Party A’s annual sales revenue;
c. the service charges for Party B’s technicians’ services provided during their normal business hours, which shall be based on the actual time of service spent and the specific services provided, and which, for a specific technician, shall be the product of its particular hourly rate multiplied by the time it actually spent;
d. other fees, at rates agreed upon by the Parties in view of the actual circumstances; and
e. if party A does not have any profit in a given year, Party B will not charge any service fees for the year. The Parties shall initiate consultations in light of Party A’s actual business operations and enter into as soon as possible a supplementary agreement to specify the rates of technical service fees, provided that the terms of such supplementary agreement shall be subject to the prior approval of the investors of Party B’s parent company (SearchMedia International Limited),which includes Deutsche Bank AG, Hong Kong Branch, and China Seed Venture, L.P.
(3) The technical service fees hereunder shall be payable in RMB by Party A to Party B on a monthly (or quarterly, or annually) basis. Party B may collect in advance annual service fees around mid-year or at other times agreed upon by the Parties.
(4) Party A shall be responsible for all the taxes, duties and dues incurred in the payment of the service fees hereunder.
(5) To secure the payment in full of the technical service fees hereunder in a timely fashion, Party A’s shareholders are willing to pledge in favor of Party B all the equity interests they hold in Party A. A separate equity pledge agreement will be entered into by and among Party A, Party A’s shareholders, and Party B.
Technical Service Fee. 8.3.1 Party A will provide technical service for automatic settlement of escrow amounts for Party B. If the Consumer passes Party A’s review and satisfies the conditions for disbursement of the loan, Party A will disburse the loan proceeds to Party B’s escrow account in accordance with the Loan Contract and the provisions on entrusted payment, and Party B authorizes Party A to automatically remit [*%] of the loan proceeds in the escrow account (the “Amount of Automatic Settlement”) to Party B’s settlement account through the automatic settlement function. The remaining [*%] of the loan proceeds in the escrow account (the “Amount of Settlement upon Approval”) will be remitted in accordance with this Agreement upon approval by Party A.
8.3.2 Party A has the right to charge the technical service fee for the technical service for automatic settlement of escrow amounts on the basis of the Amount of Automatic Settlement and at a rate of [*%] per day, for the following period: [*].
8.3.3 Party A has the right to deduct such amount of technical service fee as specified in Clause 8.3.2 from Party B’s settlement account upon the expiry of the period of charging.
8.3.4 Upon receipt of the technical service fee paid by Party B, Party A shall issue the invoice satisfying the requirements of Party B’s finance department for the corresponding period of the underlying transaction (on a monthly basis) and mail the invoice to Party B within the first [*] working days of the next month.
Technical Service Fee. Party B shall provide Party A with the data service related to the Kuaidian Platforms hereunder, and based on the data service, Party B shall provide Party A with the transaction reconciliation and information verification services for the purpose of carrying out transaction reconciliation and expense settlement for the cooperating businesses related to the Kuaidian Platforms. Party A will pay Party B the corresponding consideration (“Technical Service Fee”), and both Parties agree to re-examine and re-negotiate the Technical Service Fee from time to time according to the cooperation status, and sign a specific reconciliation statement. After receiving the Technical Service Fee paid by Party A, Party B shall issue to Party B a valid special VAT invoice of the same amount (at the tax rate of [Redacted]%)