Common use of DEFAULT MANAGEMENT CHARGE Clause in Contracts

DEFAULT MANAGEMENT CHARGE. 6.1 If: 6.1.1 Two (2) MI Failures occur in any rolling six (6) Month period; 6.1.2 Two (2) consecutive MI Failures occur; then a "MI Default" shall be deemed to have occurred. 6.2 If an MI Default occurs the Authority shall (without prejudice to any other rights or remedies available to it under this Framework Agreement) be entitled to determine the level of Management Charge in accordance with paragraph 6.3, which the Supplier shall be required to pay to the Authority ("Default Management Charge") and/or to terminate this Framework Agreement. 6.3 The Default Management Charge shall be calculated as the higher of: 6.3.1 the average Management Charge paid or payable by the Supplier to the Authority based on any Management Information submitted in the six (6) Month period preceding the date on which the MI Default occurred or, if the MI Default occurred within less than six (6) Months from the commencement date of the first Call Off Agreement, in the whole period preceding the date on which the MI Default occurred; or 6.3.2 the sum of five hundred pounds (£500).