Monthly Fixed Fee Clause Samples
The Monthly Fixed Fee clause establishes a set, recurring payment amount that one party agrees to pay another each month for specified services or deliverables. This fee remains constant regardless of the actual volume of work performed or expenses incurred during the month, providing predictability for both parties. By defining a fixed monthly payment, the clause simplifies budgeting and invoicing, and helps avoid disputes over variable costs or fluctuating workloads.
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Monthly Fixed Fee. (1) Commencing on the Effective Date and continuing through the expiration or earlier termination of the STS Agreement, District shall pay to Contractor a monthly fixed fee to address Contractor’s fixed costs in performing the Student Transportation Services (the “Monthly Fixed Fee”). The Monthly Fixed Fee shall be dependent on the number of Routes for which Contractor’s Drivers are providing Student Transportation Services, determined in accordance with the following table:
(2) For purposes of determining which Tier set forth in Section 5(a)(1) of this Amendment No. 2 applies, Contractor will be deemed to be providing Student Transportation Services to Routes with a Contractor Driver in the following manner:
i. Current and Ongoing Routes: Contractor will receive credit for the number of Routes assigned to Contractor for which Contractor Drivers (or their Contractor-provided substitute) provides the Student Transportation Services at a rate greater than or equal to the Minimum Coverage Rate (defined below).
Monthly Fixed Fee. The fixed component of the Operation Fee (“Monthly Fixed Fee”) shall be calculated as per the following: [OPTION A – Term of this Agreement corresponding to 16 (sixteen) years] (a) [***] Brazilian Reais (R$ [***]) for each calendar month of the Operation Phase from the beginning of Operation Phase up to and including the tenth (10th) year of Operation Phase; and