Split-savings agreement

• Equating benefits yields:

• (lSALE - lS) x DP x T = (lB - lSALE) x DP x T

• \ lSALE = (lB + lS) / 2

• This result is known as a split-savings agreement since each party evenly “splits” the total savings of (lB - lS) x DP x T.

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