Common use of Volume Reduction Clause in Contracts

Volume Reduction. Earned royalties determined according to Section 4.5 in a single calendar year shall be subject to a stepped volume discount as follows: Example: If the calculated royalty under Section 4.5 is $2,400,000, the discounted royalty is $1,000,000 x 1.000 plus $1,000,000 x 0.917 plus $400,000 x 0.833.

Volume Reduction. Earned royalties determined according to Section 4.5 in a single calendar year shall be subject to a stepped volume discount as follows: Example: If the calculated royalty under Ranges of Royalties Determined Under Section 4.5 is $2,400,000, the discounted royalty is $Multiplication Factor to Arrive at Discounted Royalty $ 0 - 1,000,000 x 1.000 plus $1,000,000 x 0.917 plus $400,000 x 0.833.[*] $ 1,000,001 - 2,000,000 [*] $ 2,000,001- 3,500,000 [*] $ 3,500,001- 4,000,000 [*] $ 4,000,0001 and above [*] [*]