Tier Payments Clause Samples

The Tier Payments clause establishes a payment structure where amounts owed are divided into different levels or 'tiers' based on specific criteria, such as performance milestones, sales volume, or time periods. In practice, this means that as certain thresholds are met—like reaching a particular sales target or completing a project phase—the payment amount may increase or change according to the agreed-upon tiers. This clause ensures that compensation is aligned with measurable achievements or usage, providing a clear and fair method for adjusting payments as circumstances evolve.