A Licensee crossing into a Tier can opt to pay the rate of the lower Tier plus an incremental adjustment.

The adjustment is calculated by multiplying the Per User/Subscriber/Revenue % rate of the lower Tier (below) by the amount of Users/Subscribers/Revenue exceeding the Tier threshold

For example, if a Licensee has 1.01 billion Monthly Active Video Users, it would be subject to Tier 3 and owe $16 million semi-annually. However, this Licensee can opt to pay the lower Tier 2 semi-annual royalty of $12 million, plus the number of users over 1 billion times the Tier 2 rate (10 million x 0.025 = $0.25 million).  Instead of $16M, the Licensee would instead owe $12.25M.