Common use of Tier Payments for the Sale of CDs Clause in Contracts

Tier Payments for the Sale of CDs. Upon the sale of the 15,001st CD unit, each Musician will receive a tier payment of $10. Thereafter, each Musician will receive a $10 tier payment for every additional 1000 units sold, without limit. Tier payments shall be made annually or on some other mutually agreed-upon periodic basis. For the purpose of calculating tier payments when both CDs and downloads are sold: One full-album digital download shall count as one CD unit sale. Revenue from partial album downloads shall be aggregated by album and divided by the full album download price of the relevant service to determine the equivalent number of CD unit sales to be counted when calculating tier payments.

Tier Payments for the Sale of CDs. Upon the sale of the 15,001st CD unit, each Musician will receive a tier payment of $10. Thereafter, each Musician will receive a $10 tier payment for every additional 1000 units sold, without limit. Tier payments shall be made annually or on some other mutually agreed-upon periodic basis. For the purpose of calculating tier payments when both CDs and downloads are sold: : i. One full-album digital download shall count as one CD unit sale. ii. Revenue from partial album downloads shall be aggregated by album and divided by the full album download price of the relevant service to determine the equivalent number of CD unit sales to be counted when calculating tier payments.