Transition and Transformation Charges Clause Samples

Transition and Transformation Charges. ‌ The Charges include certain Transition and Transformation Charges set forth in Attachment 4-A that are payable in the amounts set forth and so billed to DIR in accordance with the schedule set forth in Attachment 4-A provided that Service Provider has obtained DIR’s Acceptance of the applicable Transition Milestones and Transformation Milestones. If the completion and acceptance date of the Transition and Transformation Milestone varies from the date in Attachment 4-A, the amortization of the Transition and Transformation Charges will be recalculated based on the remaining months in the initial Term of the Agreement from the date of DIR acceptance. The calculation will factor in the discounted value of the milestone amortized in equal monthly amounts over the remaining Term. DIR reserves the option to make a lump sum payment of the Transition and Transformation Charges upon Acceptance of the related Milestones (with the appropriate discount applied accordingly). Transition and Transformation Charges consist of Charges for performance of all Transition Services and Transformation Services and must be set forth in Attachment 4-A. Such Transition and Transformation Charges will be itemized on the applicable Monthly Invoices to DIR in sufficient detail to delineate the specific nature of the Charges and the applicable percentage thereof then payable. The invoice will clearly identify each Transition and Transformation Charges (e.g. Transition Charges will be clearly identified as “Charges for Transition Services” or “Charges for Transformation Services”, as applicable, as well as the relevant Transition Milestone or Transformation Milestone with which it is associated).