Reduction Cap Sample Clauses
A Reduction Cap clause sets a maximum limit on the amount by which certain obligations, such as payments or liabilities, can be reduced under a contract. For example, if a party is entitled to reduce payments due to defects or delays, the reduction cap ensures that these reductions cannot exceed a specified percentage or dollar amount. This clause provides predictability and protects parties from excessive financial exposure, ensuring that reductions remain within agreed boundaries and do not undermine the overall value of the contract.
Reduction Cap. In no event may the aggregate reduction on the royalty rate under Section 4.2.2 and the Combination Product Reduction reduce the applicable royalty rate to less than fifty percent (50%) of the royalty rate that would otherwise have applied.