Common use of Takeback Clause in Contracts

Takeback. If the AD received commission for a Product subject to this Section 12.0, and the customer discontinues the Product for any reason, Takeback applies. The amount of Takeback is based upon the length of time the customer retained the service and if the sale was a term contract: a) if the customer discontinues the Product during the first fifty percent (50%) of the contract term, the Takeback amount will be prorated to the length of time remaining on the customer's contract; b) if the customer discontinues a month-to-month subscription of the Product within sixty (60) days of installation, the Takeback will equal one-hundred percent (100%) of the Upfront Commission Payment. Residual Commission Payments cease when a contract is discontinued.

Takeback. If the AD Sales Representative received commission for a Product subject to this Section 12.06.0, and the customer discontinues the Product for any reason, Takeback applies. The amount of Takeback is based upon the length of time the customer retained the service and if the sale was a term contract: a) if the customer discontinues the Product during the first fifty percent (50%) of the contract term, the Takeback amount will be prorated to the length of time remaining on the customer's contract; b) if the customer discontinues a month-to-month subscription of the Product within sixty (60) days of installation, the Takeback will equal one-hundred percent (100%) of the Upfront Commission Payment. Residual Commission Payments cease when a contract is discontinued.