Common use of Takeback Clause in Contracts

Takeback. The Upfront Commission Payment is subject to Takeback in the event the customer discontinues a service (for any or no reason) for which AD received commission in the past. The Takeback amount will be based upon the length of time the customer retained the service and whether the sale was under a term contract: a) If the sale is a term contract, and the service is discontinued within the first fifty percent (50%) of the contract term, the amount of Takeback will be prorated to the length of time remaining on the customer's contract. b) If the sale was a month-to-month subscription, and the customer discontinues the service within sixty (60) days of the Completed Order date, the Takeback amount will equal one hundred percent (100%) of the commission paid. Residual Commission Payments cease when a service is discontinued.