Upfront Discount Clause Samples
An Upfront Discount clause provides a buyer with a price reduction at the beginning of a contract or transaction. Typically, this discount is applied immediately to the initial invoice or purchase, reducing the amount payable by the buyer from the outset. Such clauses are often used to incentivize early commitment or bulk purchases, and may be contingent on meeting certain conditions, such as minimum order quantities or prompt payment. The core function of this clause is to encourage sales and foster customer loyalty by offering immediate financial benefits, while also providing clarity on pricing terms.
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Upfront Discount. Each year Buyer shall be entitled to an annual upfront discount (the "UPFRONT DISCOUNT") in the amount of $[***], which shall be provided by Cardinal Health to Buyer upon the first day of each Contract Year during the Initial Term of this Agreement, in the form of a check. If this Agreement is terminated before the end of any Contract Year, Buyer shall repay to Cardinal Health the unearned portion of the annual Upfront Discount, which shall be repaid prorata based on the number of months remaining until the end of such Contract Year. Such repayment amount will be calculated as follows: ------------------------------------------------------------------------------------------------------- Amount to be (12 minus number of months elapsed since x ($[***]) Repaid = the Commencement Date /12) (multiplied by) ------------------------------------------------------------------------------------------------------- Payment of the Upfront Discounts will be contingent on Buyer meeting its minimum purchase requirement of $[***] in Qualified Purchases per Contract Year, and remaining in compliance with all payment terms as set forth in this Agreement.