Sales Cap definition
Examples of Sales Cap in a sentence
If the Net Sales Threshold applicable to a Net Sales Period is achieved during such Net Sales Period, Purchaser shall pay to FLH, as additional consideration for the Acquired Assets transferred by FLH, a royalty of [***] of the lesser of (x) the Net Sales during such Net Sales Period in excess of the applicable Net Sales Threshold, if any, and (y) the difference between the Net Sales Cap and the applicable Net Sales Threshold for such Net Sales Period (the “Net Sales Royalty”).
The LCHA Sales Cap will then be readjusted in a similar manner if/when the Start Date occurs and again if/when the Final Installed Capacity is determined (see item 3.2 (Final Installed Capacity)).
No general meeting will be held to approve the Master Sales Agreement (and the Sales Cap) and the transactions contemplated thereunder.
A Non-Qualifying Volume is: (a) an Invoiced Volume to Relevant Offtaker which is not a Qualifying Volume pursuant to limb (a) and/or (b) of such definition and is not a RTFO Volume; (b) Excess Sales Volumes that are deemed to be Non- Qualifying Volumes (see item 4.12 (LCHA Sales Cap and Annual Sales Cap)); and (c) any other volumes which are deemed to be Non- Qualifying Volumes pursuant to any provision of the LCHA.
However, the LCHA Sales Cap will be reduced in proportion to the reduced Installed Capacity Estimate.
Once the Final Installed Capacity is determined in accordance with the above, the LCHA Sales Cap will be adjusted in proportion to the Final Installed Capacity compared to the Installed Capacity as at the Start Date.
The Royalty Payment to be paid by Kos following the fourth calendar quarter of each Year shall be calculated by multiplying the Net Sales of the entire Year, up to the amount of the applicable Annual Net Sales Cap, by the applicable Royalty Rate and subtracting from such amount the aggregate amount of all Royalty Payments paid by Kos following the first three calendar quarters during such Year.