Aggregate Payout Amount Clause Samples
The Aggregate Payout Amount clause sets a maximum limit on the total amount that can be paid out under a contract, regardless of the number or size of individual claims. In practice, this means that if multiple claims are made, the combined payments to all claimants cannot exceed the specified aggregate cap. This clause is commonly used in insurance and indemnity agreements to control the financial exposure of the party providing coverage. Its core function is to allocate and limit risk by ensuring that the total liability remains predictable and manageable for the responsible party.
Aggregate Payout Amount. If you reach the Aggregate Payout Amount, you will no longer be eligible to receive a Payout Amount until the aggregate Payout Amounts paid for covered Service Requests during any rolling twelve (12) month period, as measured by the date you filed your first covered Service Request, during the applicable period are less than the Aggregate Payout Amount for that rolling twelve (12) month period. During this time period, you will still be eligible to submit a Service Request for a Covered Item(s), subject to the Repair Maximum and the Post Payout Repair Limitation. If the repair of your Covered Item will exceed the Repair Maximum or cannot be repaired as determined by us in our sole discretion as described in this Plan Agreement, you will be responsible for any costs necessary to complete the repair or replacement of your Covered Item. In order to continue to receive coverage on the Covered Item during the Plan Agreement Term, you may be required to provide Frontdoor with proof of repair or replacement upon our request. Payout Amounts received for Additional Covered Options Covered Items are not included in the calculation of the Aggregate Payout Amount.
Aggregate Payout Amount. (a) If the Company’s Pre-Tax Margin for a Plan Year is less than or equal to ten percent (10%), the Aggregate Payout Amount for such Plan Year shall be equal to ten percent (10%) of Income for such Plan Year, provided such amount is in excess of $1,000,000.00.
(b) If the Company’s Pre-Tax Margin for a Plan Year is greater than ten percent (10%), the Aggregate Payout Amount for such Plan Year shall be equal to the sum of (i) ten percent (10%) of that portion of Income for such Plan Year which portion would have resulted in the Pre-Tax Margin being equal to ten percent (10%) (the “10% Margin Portion”) and (ii) fifteen percent (15%) of Income for such Plan Year in excess of the 10% Margin Portion, provided the sum of (i) and (ii) is in excess of $1,000,000.00.
(c) If the amount determined under (a) or (b) is less than $1,000,000.00, the Aggregate Payment Amount shall be zero.
Aggregate Payout Amount. The amount determined under the provisions of Section 4.1 below for any Plan Year.