Cancellation / Kill Fee Sample Clauses
A Cancellation or Kill Fee clause establishes the financial obligations that arise if one party decides to terminate a contract before its completion. Typically, this clause specifies a predetermined fee or percentage of the contract value that must be paid by the party initiating the cancellation, compensating the other party for work performed, resources allocated, or lost opportunities. Its core practical function is to provide a clear and fair mechanism for handling early termination, ensuring both parties understand the costs involved and reducing disputes over compensation.
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Cancellation / Kill Fee. In the event of cancellation by the Client, the following cancellation payment shall be paid by the Client: Cancellation prior to the Deliverables of this Agreement being turned in: payment for services rendered as of date of Cancellation plus 35% of the total fee (not to exceed total cost of project). In the event of cancellation, the Agency shall own all rights to Deliverables outlined on Schedule A. The billing upon cancellation shall be payable within thirty days of the Client’s notification to stop work. The Cancellation Fee shall be payable in addition to any collected fees associated with the Deliverables of this Agreement including but not limited to Advances, Deposits, and Expense Reimbursements.