Common use of Bundled Service Clause in Contracts

Bundled Service. Other than for [*****], in the event that Sprint offers other applications and/or Sprint services and/or services and products offered through Sprint in conjunction with the Application as a “bundled service” and those “bundled services” are offered at a discounted price, Company will receive the Payment Percent calculated from a price, which for the purpose of calculation is the set price for the Application minus the discount, which discount is the overall discount of the bundle equally spread across each component of the bundle; provided however, in no event will the Company ever receive less than the Minimum Payment. For example, if the Application is priced at $50.00 and a customer purchases another application with a stand-alone price of $30.00, Sprint may price the bundled services (Application and the other $30 stand-alone application) at $72.00 (a 10% discount on the bundle). For purposes of calculating the Payment Percent, the price of each service billed to the Sprint User would be reduced by the rate of discount for the bundle as a whole (10% discount). Hence, the allocation for the individual components of the bundle would be $45.00 for the Application ($50.00 minus 10%) and $27.00 for the other stand-alone application ($30.00 minus 10%). [*****] Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Appears in 2 contracts

Sources: Application and Services Agreement (TNAV Holdings, Inc.), Application and Services Agreement (TNAV Holdings, Inc.)