Common use of Unit Discounts Clause in Contracts

Unit Discounts. Publisher is eligible for a discount to the Base Royalty applicable to FPUs manufactured for a particular Sales Territory (a "Unit Discount") based on the number of Standard FPUs that have been manufactured for sale in that Sales Territory as described in Table 3 below. Note that units manufactured for sale in a Sales Territory are aggregated only towards a discount on FPUs manufactured for that Sales Territory; there is no worldwide or cross-territorial aggregation of units. The discount will be rounded up to the nearest Cent, Yen or hundredth of a Euro. Microsoft may revise the discount schedule upon written notice to Publisher [*], which revised discount schedule will become effective [*]. Unit North American Sales European Sales Japan Sales Discount Territory Territory Territory Asian Sales Territory -------- -------------------- ------------------- ------------------ --------------------- [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] Example I (under worldwide billing election): Publisher manufactures a Software Title for sale in the North American Sales Territory with a wholesale price between [*] and an initial order quantity of [*] Standard FPUs. Publisher manufactures the same Software Title for sale in the European Sales Territory with a wholesale price between [*] and an initial order quantity of [*] Standard FPUs. The actual applied royalty rates for this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] ([*]% discount) b. [*] for [*] ([*]% discount) ii. For European Sales Territory: a. [*] for units [*] ([*]% discount) Example 2 (under regional billing election): Publisher manufactures [*] Standard FPUs of a Software Title in the North American Manufacturing Region for sale in the North American Sales Territory with a wholesale price between [*]. Publisher then manufactures [*] Standard FPUs in the European Manufacturing Region for sale in the North American Sales Territory with that same wholesale price (total FPUs for North American Sales Territory: [*]). Finally, Publisher manufactures [*] Standard FPUs of the same Software Title in the European Manufacturing Region for sale in the Japan Sales Territory at a suggested retail price below [*]. The actual applied royalty rates for this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] ([*]% discount) b. [*] for units [*] ([*]% discount) c. [*] for units [*] ([*]% discount) ii. For Japan Sales Territory: a. [*] for units [*] ([*]% discount)

Unit Discounts. Publisher is eligible for a discount to the Base Royalty applicable to FPUs manufactured for a particular Sales Territory (a "“Unit Discount"”) based on the number of Standard FPUs that have been manufactured for sale in that Sales Territory as described in Table 3 below. Note that units manufactured for sale in a Sales Territory are aggregated only towards a discount on FPUs manufactured for that Sales Territory; there is no worldwide or cross-territorial aggregation of units. The discount will be rounded up to the nearest Cent, Yen or hundredth of a Euro. Microsoft may revise the discount schedule upon written notice to Publisher [*]***, which revised discount schedule will become effective [*]***. Unit North American Sales European Sales Japan Sales Discount Territory Territory Territory Asian Sales Territory -------- -------------------- ------------------- ------------------ --------------------- [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] Example I 1 (under worldwide billing election): Publisher manufactures a Software Title for sale in the North American Sales Territory with a wholesale price between [*] *** and an initial order quantity of [*] *** Standard FPUs. Publisher manufactures the same Software Title for sale in the European Sales Territory with a wholesale price between [*] *** and an initial order quantity of [*] *** Standard FPUs. The actual applied royalty rates for this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] *** ([*]***% discount) b. [for units *] for [*] ** ([*]***% discount) ii. For European Sales Territory: a. [*] for units [*] *** ([*]***% discount) Example 2 (under regional billing election): Publisher manufactures [*] *** Standard FPUs of a Software Title in the North American Manufacturing Region for sale in the North American Sales Territory with a wholesale price between [*]***. Publisher then manufactures [*] *** Standard FPUs in the European Manufacturing Region for sale in the North American Sales Territory with that same wholesale price (total FPUs for North American Sales Territory: [*]***). Finally, Publisher manufactures [*] *** Standard FPUs of the same Software Title in the European Manufacturing Region for sale in the Japan Sales Territory at a suggested retail price below [*]***. The actual applied royalty rates for this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] *** ([*]***% discount) b. [*] for units [*] *** ([*]***% discount) c. [(i.e., *] ***) for units [*] **** ([*]***% discount) ii. For Japan Sales Territory: a. [*] for units [*] *** ([*]***% discount)

Unit Discounts. Publisher is Regardless of whether Licensee has chosen the Worldwide or Regional Billing option, Licensee shall be eligible for a discount to the Base Royalty applicable to FPUs manufactured for a particular Sales Territory (a "Unit Discount") on the applicable Base Royalty based on the aggregate number of Standard FPUs that have been manufactured for sale in that Sales Territory as described in Table 3 below. Note that units manufactured for sale in a Sales Territory are aggregated only towards a discount on FPUs manufactured for that each Sales Territory; there is no worldwide or cross-territorial aggregation , regardless of unitsManufacturing Region. The discount will be rounded up to the nearest Cent, Yen or hundredth hundreth of a Euro. Microsoft may revise the The discount schedule upon written notice to Publisher will be updated and revised in the first calendar quarter each year and will be effective starting the following July. The following discount grid is the first of such discount schedules and will be effective immediately but only for Software Titles that Commercially Release on or after March 1, 2003. [*] [*], which revised discount schedule will become effective -[*] [*]. Unit North American Sales European Sales Japan Sales Discount Territory Territory Territory Asian Sales Territory -------- -------------------- ------------------- ------------------ --------------------- -[*] [*]-[*] [*] [*] [*]-[*] [*]-[*] [*]-[*] [*] [*] [*]-[*] [*]-[*] [*]-[*] [*] [*] [*]-[*] [*]-[*] [*]-[*] [*] [*] [*] ]+ [*]+ [*]+ [*] [*] [*] [*] [*] [*] [*] [*] [*] Example I (under worldwide billing election): Publisher manufactures a Software Title * Until further notice from Microsoft, Standard FPUs manufactured for sale in the Asian Sales Territory Excluding Japan shall be aggregated with the Standard FPUs manufactured for sale in the North American Sales Territory with a wholesale price between [*] and an initial order quantity for purposes of [*] Standard FPUs. Publisher manufactures determining the same Software Title Unit Discount for sale in both the European Sales Territory with a wholesale price between [*] and an initial order quantity of [*] Standard FPUs. The actual applied royalty rates for this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] ([*]% discount) b. [*] for [*] ([*]% discount) iiTerritory and the Asian Sales Territory Excluding Japan. For European Sales Territory: a. [*] for units [*] ([*]% discount) Example 2 (under regional billing election): Publisher manufactures example, if [*] Standard FPUs of a Software Title A are manufactured for sale in the North American Manufacturing Region Asian Sales Territory Excluding Japan, and [*] Standard FPUs of Software Title A are manufactured for sale in the North American Sales Territory with a wholesale price between [*]. Publisher Territory, then manufactures the [*] Unit Discount shall apply to all future Standard FPUs in the European Manufacturing Region manufactured for sale in the North American Sales Territory with that same wholesale price (total FPUs for North American either respective Sales Territory: [*]). Finally, Publisher manufactures [*] Standard FPUs For purposes of the same Software Title following examples, it is assumed that Licensee has chosen the Regional billing option and has properly selected the applicable Base Royalty in accordance with the European Manufacturing Region for sale in the Japan Sales Territory at a suggested retail price below [*]. The actual applied royalty rates for provisions of this Software Title would be: i. For North American Sales Territory: a. [*] for units [*] ([*]% discount) b. [*] for units [*] ([*]% discount) c. [*] for units [*] ([*]% discount) ii. For Japan Sales Territory: a. [*] for units [*] ([*]% discount)Section.