23a FEE Clause Samples
The '23a FEE' clause defines the payment obligations related to fees under the agreement. It typically outlines the amount, timing, and method of fee payments, specifying whether fees are fixed, recurring, or contingent on certain events. For example, it may require the client to pay a service fee monthly or upon completion of specific milestones. This clause ensures both parties have a clear understanding of financial expectations, reducing the risk of disputes over payment terms.
23a FEE. (a) Company shall pay Seller the fee as specified for performing this Agreement.
(b) Payment of the fee shall be made as specified in the Agreement; provided, that after payment of 85 percent of the fee, Company may withhold further payment of fee until a reserve is set aside in an amount that Company considers necessary to protect the Government's interest. This reserve shall not exceed 15 percent of the total fixed fee or $100,000, whichever is less.