MSP Payments Clause Samples
The MSP Payments clause defines the terms and conditions under which payments are made to a Managed Service Provider (MSP) for services rendered. It typically outlines the payment schedule, acceptable methods of payment, invoicing requirements, and any penalties for late payments. For example, it may specify that the MSP will invoice monthly and that payment is due within 30 days of receipt. This clause ensures both parties have a clear understanding of financial obligations, reducing the risk of disputes and ensuring timely compensation for services provided.
MSP Payments. In addition to the payment of Basic Rent, Lessee shall pay "MSP Payments", if any are required pursuant to an existing maintenance support program for the engines, as follows: upon the Delivery Date, Lessor shall, in addition to lease of the Aircraft to Lessee, transfer to Lessee, but only for the duration of the Lease, Lessor's agreement with the manufacturer of the Engines for maintenance of the Engines pursuant to which Lessee shall pay such manufacturer a usage fee on a per-cycle or per-hour basis in exchange for maintenance by the manufacturer (such agreement shall herein be referred to as the "MSP Agreement"). Payments required to be made to the manufacturer under the MSP Agreement shall be sometimes referred to herein as "MSP Payments". Lessee shall supply to Lessor, on a monthly basis, a copy of each of the reports on Engine usage for the prior month that Lessee shall supply (and is required to supply) to the manufacturer under the MSP Agreement, including, without limitation, evidence of the payment of all MSP Payments. Failure of Lessee to comply in any way with the terms and conditions of the MSP Agreement shall constitute an Event of Default under the Lease. The MSP Payments shall constitute supplemental Rent under the terms of the Lease. Lessee shall bear and pay all costs, expenses, charges, fees, assessments, and payments that accrue under the MSP Agreement during the term of the Lease and Lessee shall bear any repair or maintenance costs with respect to the Engines not covered by the MSP Agreement. Lessee shall comply with all terms and conditions of the MSP Agreement such that there shall not occur during the term of the Lease any default or event that would allow the manufacturer to terminate the MSP Agreement for any reason