Annual Option Payments. Commencing , PEF shall pay an “Annual Option Payment” equal to the product of 30% of 2,000 AF (representing the maximum Annual Volume discussed in [Section 3.1] above) multiplied by that year’s Unit Volume Charge (discussed in [Section 7.2] below). On or after , if PEF elects to increase the maximum Annual Volume in accordance with [Section 3.2] above, the Annual Option Payment shall be increased for the remainder of the Term of the Agreement such that PEF shall pay an Annual Option Payment equal to the product of 30% of 3,500 AF (representing the maximum increased Annual Volume discussed in [Section 3.2] above) multiplied by that year’s Unit Volume Charge (discussed in [Section 7.2] below). By way of example:
Unit Volume Payments. Commencing , PEF shall pay an “Annual Option Payment” equal“Unit Volume Payments” of per AF of Annual Volume and Additional Supply delivered to the productPoints of 30% of 2,000 AF (representing the maximumDelivery, with a 3% annual escalator to this fixed fee commencing . The Annual Volume discussed in [Section 3.1] above) multiplied by that year’s Unit Volume ChargeOption Payment (discussed in [Section 7.2] below). On or after , if PEF elects to increase1] above) will be credited toward the maximum Annual Volume in accordance with [Section 3.2] above, the Annual Option Payment shall be increased for the remainder of the Term of the Agreement such that PEF shall pay an Annual Option Payment equal to the product of 30% of 3,500 AF (representing the maximum increased Annual Volume discussed in [Section 3.2] above) multiplied by that year’s Unit Volume Charge (discussed in [Section 7.2] below). By way of example:Payments.
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