Exhibit A (Payment Terms)

These payment terms define how a customer shall pay a developer or consultant for services provided. It offers clear options. One plan takes a 90% deposit upon execution, with the balance tied to delivery.

Another divides the principal amount into thirds at key milestones. A third plan is hourly, with a 10% advance and a cap so the buyer is not liable beyond approved sums. A credit card authorization section covers charges as each milestone is accepted. The form can also support a general pricing plan for a VAR/reseller arrangement.

Payment is due and payable within fifteen days of the invoice date. If any principal remains unpaid after the due date, a late payment penalty of 1. 5% per calendar month applies on a monthly basis.

In practice, many corporations align issuance and receipt of invoices with their accounts payable cycles; some are invoiced monthly for the preceding month's services rendered. The template can be adapted to acceptable payment methods, such as credit card, bank transfer, wire transfer, or cash equivalents, with funds paid in U. S. dollars in accordance with the parties' method selections.

Expenses in connection with the project are reimbursed, including license fees, outsourced services, film and developing, shipping, domain name registration, host costs, hardware and software, and travel. To ensure clarity and avoid disputes, the other party may pre-approve reasonable out-of-pocket costs and submit receipts.

Changes to the scope may alter estimates. Extra time beyond the specification is immediately billed at the stated hourly rate; yearly maintenance is only an estimate and not included in the quoted compensation. These provisions help manage risk, define consideration, and set expectations for performance and milestone acceptance. If delivery timing shifts, the parties can make adjustments to schedules and other amounts by mutual notice to the extent required.

Use cases include a software build where milestones trigger payment, a media project with reimbursed filming costs, a web rollout with domain and hosting fees, or a reseller pricing plan between a seller and a buyer.

Proposal Kit helps teams assemble these terms quickly with document assembly, automated line-item quoting, and an AI Writer to build supporting documents. Its extensive template library and ease of use make it straightforward to tailor schedules, methods, and sums so both parties are compensated fairly and the process remains clear.

Expanding on the business impact, these terms help finance teams forecast cash flow and pay consultant and developer invoices in a predictable cadence. A corporation can align the milestone plan to its internal approvals so fees tied to work delivered are released only after acceptance, while the hourly option with a cap manages exposure on open-ended assignments. Although this exhibit specifies payment within fifteen days, many organizations operate on thirty or forty-five-day cycles; the template can be configured to reflect the agreed cycle without changing the core rules on interest when an amount remains unpaid after the due date.

It is also prudent in practice to connect payment triggers to objective evidence, such as a milestone acceptance form or delivery log stating when specific components were delivered and approved. For scope changes, pairing change orders with rate tables and clear notice steps reduces disputes and clarifies when extra time is due and payable. If nonpayment persists, parties commonly include related suspension or termination conditions elsewhere in the agreement to define the risk, the timing, and what happens to work in progress; this exhibit dovetails with those provisions by defining when sums become due.

Proposal Kit supports this process by letting teams assemble consistent schedules, fee breakdowns, expense categories, and credit card authorization inserts quickly. Its automated line-item quoting and AI Writer help produce matching statements of work and milestone lists, keeping method, consideration, and compensation aligned so both sides know what is payable, when, and on what basis.

Further considerations help teams operationalize these terms. Define when the payment clock starts-on the invoice date, on receipt, or on acceptance- so that the due date and when amounts become due and payable are unambiguous. Many businesses set an undisputed principal amount and other amounts to be invoiced monthly for the preceding month's services rendered or services provided, with aging tracked on a calendar month basis. If any balance remains unpaid, apply late payment rules consistently and document any adjustments or credits by mutual notice.

Specify acceptable payment methods with clear remittance details so funds are applied correctly: bank transfer or wire transfer for larger sums, corporate card for milestone charges, and, where appropriate, cash equivalents, all in dollars and in accordance with the agreed method. Procurement can require a purchase order issuance before milestones are billed, ensuring the buyer and seller align on consideration and compensation before work is delivered.

Strengthen expense controls by setting reasonable pre-approval thresholds, requiring the consultant to submit itemized receipts to be reimbursed, and tying approvals to performance and delivery evidence. To reduce disputes, connect milestones to an acceptance form, define what is approved, and clarify how extra time is billed immediately at the hourly rate.

If termination occurs, many agreements reconcile fees for services rendered to date, applying any deposit or advance against outstanding principal while addressing risk and handover of work in connection with open deliverables. For a corporation with thirty or forty-five-day cycles, reflect that timing while keeping penalty terms intact.

Proposal Kit can streamline this by assembling aligned exhibits, milestone lists, expense categories, and pricing plans, and by generating matching line-item quotes and supporting documents with its AI Writer, helping teams ensure clarity so both parties are compensated accurately and on time.

How do you write a Exhibit A (Payment Terms) document? - The Narrative

How to Build a Legal Contract with Proposal Kit

This video illustrates how to create a legal contract using the Proposal Pack Wizard software. It also shows how to create a proposal with an invoice and contract at the same time.