PRICING SERVICE Clause Samples
The PRICING SERVICE clause defines how the costs for services provided under the agreement will be determined and communicated. Typically, this clause outlines the method for calculating service fees, such as fixed rates, hourly charges, or usage-based pricing, and may specify when and how price adjustments can occur. By clearly establishing the pricing structure, this clause ensures transparency and helps prevent disputes over payment amounts, thereby facilitating smooth financial transactions between the parties.
PRICING SERVICE. 4.1 As soon as is reasonably practicable, the Customer and Bank shall agree upon a procedure for pricing any OTC Derivative Contract that may be entered into by the Customer. The Customer may request that Bank price any OTC Derivative Contract as follows:
(a) The Customer may request that Bank provides a Calculated Price from its Supported Pricing Models;
(b) The Customer may request that Bank sources the price of the OTC Derivative Contract from brokers, counterparties or from third-party vendors agreed upon with the Customer;
(c) The Customer may provide the price of the OTC Derivative Contract; or
(d) any reasonable combination of (a), (b) or (c).
4.2 If Bank and the Customer have agreed to price the OTC Derivative Contract under Clause 4.1(a) then the following shall apply:
(a) Bank shall notify the Customer of the relevant Supported Pricing Models;
(b) The Customer shall review and agree upon the Supported Pricing Models with Bank. Bank shall supply to the Customer such reasonable information relating to the Supported Pricing Models as the Customer requests. The Customer acknowledges and agrees that some information relating to the Supported Pricing Models may contain proprietary information and that Bank shall, in such case, not be required to provide such information. To the extent that Bank provides information relating to the Supported Pricing Models to the Customer, the Customer shall treat any Supported Pricing Model information as confidential information and shall not disclose it to any person without the prior written consent of Bank;
(c) If after reviewing the Supported Pricing Models the Customer does not wish any OTC Derivative Contract to be priced using the Supported Pricing Models, the Customer shall notify Bank and the Customer and Bank shall agree the alternative method to be used under Clause 4.1(b) or (c);
(d) Bank and the Customer shall review, and modify as agreed between the parties, the Supported Pricing Models from time to time;
(e) If the Customer enters into a Non-Supported OTC, Bank shall notify the Customer that the OTC Derivative Contract is a Non-Supported OTC as soon as is reasonably practicable and the Customer and Bank shall agree the alternative method to be used under Clause 4.1(b) or (c).
4.3 Bank shall use the method agreed under Clause 4.1 for determining the price of any OTC Derivative Contract for the purpose of inputting such price in the net asset calculation.
4.4 Bank and the Customer shall agree upon a Back-...