Common use of Discount for Initial Term Clause in Contracts

Discount for Initial Term. For the initial term of the Equipment Schedule(s) to the Support Agreement, the price of Services to Integrator is the then-current service list price less the applicable discount based on Integrator’s penetration rate calculated as follows: 5.1.1. Determination of Service Penetration Rate. Service penetration rate is calculated by Integrator’s total number of Products covered by Cisco brand services (per Attachment 1) as a percentage of the total number of Products purchased over a period of twelve (12) months, starting from fourteen (14) months prior to the Effective Date of the Agreement. Penetration Rate Discount 0% - 35% [***]% 36% - 55% [***]% 56% - 74% [***]% 75%+ [***]% 5.1.2. Integrator’s resale discount is listed in Attachment 3 to this Exhibit. Cisco will review Integrator’s actual service sales penetration at six month intervals and reserves the right to adjust Integrator’s resale discount at the time of review. 5.1.3. Integrator must have purchased Product for a minimum of twelve months in order to determine the penetration rate. If Integrator has less than twelve months of Product purchases, Integrator’s discount will be [***] percent ([***]%). 5.1.4. Integrator’s discount on Services shall be determined by calculating the rate of Services penetration solely on Product purchased by Integrator under this Agreement.

Discount for Initial Term. For the initial term of the Equipment Schedule(s) to the Support Agreement, the price of Services to Integrator is the then-current service list price less the applicable discount based on Integrator’s 's penetration rate calculated as follows: 5.1.1. 5.1.1 Determination of Service Penetration Rate. Service penetration rate is calculated by Integrator’s 's total number of Products covered by Cisco brand services (per Attachment 1) as a percentage of the total number of Products purchased over a period of twelve (12) months, starting from fourteen (14) months prior to the Effective Date of the Agreement. Penetration Rate Discount 0---------------- -------- 0%-35% - 3510% [***]36%-55% 3615% - 5556%-74% [***]% 56% - 74% [***]20% 75%+ [***]25% 5.1.2. 5.1.2 Integrator’s 's resale discount is listed in Attachment 3 Appendix B to this Exhibit. Cisco will review Integrator’s 's actual service sales penetration at six month intervals and reserves the right to adjust Integrator’s 's resale discount at the time of review. 5.1.3. 5.1.3 Integrator must have purchased Product for a minimum of twelve months in order to determine the penetration rate. .If Integrator has less than twelve months of Product purchases, Integrator’s 's discount will be [***] ten percent ([***]10%). 5.1.4. 5.1.4 Integrator’s 's discount on Services shall be determined by calculating the rate of Services penetration solely on Product purchased by Integrator under this Agreement.