Common use of ANNUAL CHARGE Clause in Contracts

ANNUAL CHARGE. As compensation for the delivery of Contract Quantity to Customer, Customer agrees to pay ECS an Annual Charge in the amount equal to $____________. Commencing on the first month after the Start Date, the Annual Charge shall be payable in twelve equal monthly installments, in accordance with Section 4.1(b) hereunder. If the Start Date is on a day other than the first day of a month, then, for such month only, Customer shall pay ECS an amount equal to one-twelfth of the first Contract Year's Annual Charge, prorated for the number of days in such month from and after the Start Date. The Annual Charge includes all local, state and federal taxes.

ANNUAL CHARGE. As compensation for the delivery of Contract Quantity to Customer, Customer agrees to pay ECS an Annual Charge in the amount equal to $____________1,968,750. Commencing on the first month after the Start Date, the Annual Charge shall be payable in twelve equal monthly installments, in accordance with Section 4.1(b) hereunder. If the Start Date is on a day other than the first day of a month, then, for such month only, Customer shall pay ECS an amount equal to one-twelfth of the first Contract Year's Annual Charge, prorated for the number of days in such month from and after the Start Date. The Annual Charge includes all local, state and federal taxes.