Flexible Payment Plan Clause Samples

Flexible Payment Plan. During the term of the Agreement, payments by the Town may be made to Contractor under a Flexible Payment Plan if the total funds collected for all Cameras are insufficient to cover the Fees due Contractor for the Cameras. Under the Flexible Payment Plan, the Town may defer certain payments due and owing to Contractor during each twelve (12) month period (the “Cost Neutrality Period”). The first Cost Neutrality Period shall be calculated from the date of installation of the first Camera, such that twelve (12) full months of billing are included in the first Cost Neutrality Period. Should a warning period be required as specified in Appendix A of this Agreement, the Cost Neutrality Period shall commence upon completion of the 30-day warning period. If at the end of each Cost Neutrality Period, sufficient funds have not been collected by the Town to pay the deferred balance then due to Contractor, Contractor agrees to waive its right to recovery with respect to any balances owed to Contractor for the entire Cost Neutrality Period. This Flexible Payment Plan will be applied as follows: Contractor will maintain an accounting of any net balances owed Contractor each month during the Cost Neutrality Period. If the total amount of funds collected during a month exceeds the amount of the Contractor invoice for the same month, the Town shall pay Contractor the total amount due on the invoice. If the amount of funds collected during a month is less than the amount of the Contractor invoice for the same month, the Town shall pay Contractor only the amount collected during the same month and Town may defer payment of the remaining balance. If opting to use a Flexible Payment Plan, Town will provide Contractor with sufficient information about payments received directly by the Town or by the Courts to accurately determine the total amount of funds collected. Payments due Contractor shall be reconciled by applying future funds collected in subsequent months during the same Cost Neutrality Period, first to the deferred balance and then to the subsequent monthly invoice during the same Cost Neutrality Period. If at any time the Contractor invoices including any deferred balance are fully repaid, the Town will retain all additional funds collected during the Cost Neutrality Period. Such additional funds (whether or not reserved in cash by the Town) will be available to offset future Contractor invoices during the same Cost Neutrality Period. Town agrees and understands tha...