Common use of Decrease Clause in Contracts

Decrease. If the RISI average transaction price for Northern Bleached Softwood Kraft Pulp (NBSK) delivered to the United States as published in the RISI World Pulp Monthly Report is less than $570 per metric tonne for the most recent previous calendar quarter, then the price of basestock set forth in Schedule 2 for the ensuing quarter will be decreased by 50% of the difference between $570 and the RISI average transaction price for the previous calendar quarter. . Example: The average price of NBSK for Q1 2003 is $540. A price reduction applied to basestock purchases in the second quarter would be equal to $15 per tonne ($13.64 per ton). If the average price of NBSK for Q2 2003 were to fall to $530, there would be an additional $5/tonne price decrease for the third quarter ($20/tonne total price increase as compared to Schedule 2 pricing).

Appears in 2 contracts

Sources: Basestock Supply Agreement (Appleton Papers Inc/Wi), Basestock Supply Agreement (Paperweight Development Corp)