A True-Up Calculation

The true-up calculation in this chart assumes that a hypothetical product or bundle of products costs US$330 in an Enterprise Agreement and that upgrade rights cost US$100 each year. Total cost over three years would be US$630-US$330 for the license and US$300 for upgrade rights. The annual payment for a PC included in the initial count would be US$210, or one third of US$630, for each of the three years. A PC added as part of the true up at the first anniversary would cost US$330 for the license plus 2.5 times the annual US$100 upgrade fee, or US$250, for a total true-up cost of US$580. Using the same formula, the customer would pay US$480 for a trued-up PC at the second anniversary, and US$380 for a PC trued up at the final anniversary.

	License	Upgrade Rights	Total	Payment
Initial Price per PC	$330	3 years @ $100	$630	$210 each year for three years
True Up for PC Added Within 1st Year	$330	2.5 years @ $100