Common use of RATE AGREEMENT TERMS AND METHOD OF PAYMENT Clause in Contracts

RATE AGREEMENT TERMS AND METHOD OF PAYMENT. A. Rate Agreement Term 1. This Rate Agreement shall begin on (start date), or upon full execution, whichever is later, and shall end at 11:59 P.M. on (end date). In the event the parties sign this Rate Agreement on different dates, the latter date shall be the effective date. 2. The Department may renew this Rate Agreement upon the same terms and conditions, the duration(s) of which may not exceed the term of the original agreement, or three years, whichever is longer. Exercise of the renewal option is at the Department’s sole discretion and shall be contingent, at a minimum, upon satisfactory performance, subject to the availability of funds and other factors deemed relevant by the Department. Any costs incurred by the Provider for the renewal of this agreement shall not be charged to the Department. 3. Modifications or amendments of provisions of this Rate Agreement shall only be valid when they have been reduced to writing and duly signed by all parties observing all the formalities of the original Rate Agreement, with the exception of the Provider and Department contacts identified in Attachment I, Section VII, D Reports. Changes to the contacts will be provided to the other party in writing and a copy of the written notification shall be maintained in the official Rate Agreement file.