Common use of Calculation of Termination Payment Clause in Contracts

Calculation of Termination Payment. On the effective date for termination of the Agreement, the residential telephone distribution System and security system will be surrendered to and belong to Owner, and Owner will pay to FirstLink as consideration therefor and in compensation for the early termination of this Agreement the following as a termination fee: (a) the ad1usted book value of the residential telephone distribution network assuming amortization on a straight line basis over a ten (10) year term from the date of installation of such network (except that the security system shall be amortized over a fifteen (15) year term on a straight line basis); and (b) the present value of the Net Operating Income (as defined below) that FirstLink would reasonably have received for the remaining term of this Agreement, calculated as provided in Section 22(c) below.