Reduction Floor Clause Samples
A Reduction Floor clause sets a minimum limit on how much a particular value, such as rent, royalties, or payments, can be reduced under a contract. In practice, this means that even if certain conditions trigger a reduction—like a decrease in sales or a change in market rates—the amount payable cannot fall below the specified floor. This clause ensures that the recipient is guaranteed a baseline level of compensation, protecting them from excessive reductions and providing financial stability.
Reduction Floor. In no event shall the reduction made pursuant to Section 8.3.3 in aggregate reduce the royalty rate below [***] of the royalty rate set forth in Section 8.3.1 in any Calendar Quarter. Credits for reductions pursuant to Section 8.3.3 not exhausted in any Calendar Quarter may be carried into future Calendar Quarters, subject to the preceding sentence.
Reduction Floor. Effective 6/30/06: Notwithstanding the ability to reduce staff under Section 6.081 a., members of the bargaining unit may not be reduced below an absolute floor of 380.
Reduction Floor. In no circumstances will the royalties payable to XENCOR under Section 9.3.1 in any [***] be reduced to, as a result of Section 9.3.4 (a)–(c) below [***] of the royalties otherwise payable under Section 9.3.1 with respect to Net Sales of any Product in any Region. Licensee may not carry forward to subsequent [***] any deductions that it was not able to deduct as a result of the foregoing proviso.
Reduction Floor. In no circumstances will the royalties payable to Zenas under Section 8.3.1 in any [***] be reduced to, as a result of Section 8.4.1–8.4.3 below [***] of the royalties otherwise payable under Section 8.3.1 with respect to Net Sales of any Product in the Territory. Licensee may not carry forward to subsequent [***] any deductions that it was not able to deduct as a result of the foregoing proviso.
Reduction Floor. Notwithstanding the foregoing, subject to [**], in no event will: (a) [**]; or (b) the Royalty Payments payable to Lexicon under Section 7.4 (Royalties) with respect to such Licensed Product in such country be reduced by more than [**]% in each Calendar Quarter as a result of the deductions or reductions in Section 7.6.1 (Lack of Valid Claims), Section 7.6.2 (Generic Products), and Section 7.6.4 ([**]), provided that if any deductions or reductions in Section 7.6.1 (Lack of Valid Claims), Section 7.6.2 (Generic Products), or Section 7.6.4 ([**]) reduce the Royalty Payments, then the reduction floor shall be [**] solely to permit deductions pursuant to Section 7.6.3 (Third Party Payments) (i.e., [**]); and provided further that, in each case ((a) and (b)), [**]. Novo Nordisk will be permitted to carry forward into any subsequent Calendar Quarters during the Term the portion of any otherwise permitted deduction or reduction that is not permitted to be applied due to the reduction floor set forth in this Section 7.6.5 (Reduction Floor), as offsets against any future [**] with respect to such Licensed Product, in each case subject to the reduction floor set forth in this Section 7.6.5 (Reduction Floor), for as many Calendar Quarters during the Term as needed to fully draw down and until credited.
Reduction Floor. Notwithstanding the foregoing, in no event will the Net Sales Payments payable to Omeros under Section 7.4 (Net Sales Payments) with respect to an Anticipated Product in a country be reduced in each Calendar Quarter as a result of the cumulative applicable deductions in Section 7.6.1 (Lack of Valid Claims), Section 7.6.2 (Biosimilar Products), Section 7.6.3 (Third Party Payments), to less than [***]% [***]; provided that, no such floor will apply [***].