Common use of Extension of a Term Clause in Contracts

Extension of a Term. In the event that any Service is required beyond its Term, Service Recipient shall provide Service Provider with a written notice of extension no later than sixty (60) days prior to the expiration of the Term of such Service; provided, that Service Recipient shall only be allowed one three (3)-month extension of any Term; provided, further, that in no event shall any Term be extended beyond the date that is fifteen (15) months after the Distribution Date. Such notice shall indicate the period during which Service Recipient wishes to receive such Service after the date of expiration of the Term for such Service; provided, that Service Provider shall not be obligated to provide such extended Service if (x) Service Provider does not, in its reasonable judgment, have the capability and existing capacity to provide such Service or if the provision of such Service would significantly disrupt the operation of its or any member of its Group’s business, or (y) there are interdependencies among such Service and any other Services, for which the Term will expire prior to the end of such extension, and such interdependencies cannot be addressed despite good-faith negotiations between the Parties. Subject to obtaining any necessary Third Party consents in accordance with Section 2.9, Service Provider shall provide, or cause to be provided, the Service to Service Recipient for such period, it being understood and agreed that the Service Fees for each applicable Service shall be subject to a 20% increase from the original Service Fees during any Extension Period. In addition, Service Recipient shall reimburse Service Provider for any reasonable and documented incremental fees charged by Third Party service providers in connection with granting any consent or otherwise extending the Service, in each case, solely with respect to an extension of the Term.