Calculation Example Clause Samples
A Calculation Example clause provides a sample computation to illustrate how a specific formula or method in the contract should be applied. This clause typically presents a hypothetical scenario using assumed numbers to demonstrate the step-by-step process of reaching a result, such as calculating interest, penalties, or payment amounts. By offering a concrete example, the clause helps clarify complex calculations and ensures all parties have a shared understanding of how contractual terms will be implemented in practice, thereby reducing the risk of disputes over interpretation.
Calculation Example. The price will be based on the average delivery day to refinery in Dubai.
Calculation Example. An example of the calculation of the applicable revenue, commission and charges in a typical ClickThrough advertising proposal would be as follows: Item Cost Revenues From an Advertising Proposal $35.00 CPM Less Applicable Agency Commission @ 15% ($5.25) Less NetGravity Charges @ $0.50US ($0.80) Canadian Dollar equivalent Equals Net Advertising Sales $28.95 ClickThrough Commission @ 37.5% $10.86 Balance of Revenue to be paid to Company $18.09 8.
Calculation Example. Total number of hours worked for the four (4) weeks immediately preceding the holiday divided by twenty (20) days.
Calculation Example. In this example, Feb 2006 is the first year anniversary of the contract. Therefore, Old PPI: Jan 2006 PPI for Computer Printers = 129.4 New PPI: Jan 2007 PPI for Computer Printers = 125.5 New PPI / Old PPI = Price De-escalation Rate (rounded to four decimal points) “Old Price Discount %” ÷ “Price De-escalation Rate” = New Price Discount % (rounded to two decimal points) 125.5 ÷ 129.4 = .9699 which equates to a Price De-escalation Rate of 96.99% 50% ÷ 96.99% = 51% (New Price Discount Percent) Any decreases negotiated during the term of the contract shall become effective no later than thirty (30) days after approval of the request.
Calculation Example. For the sole purpose of illustrating the calculation of the Base Earnout Payment and the Additional Earnout Payment, the following examples are provided:
(i) Assuming EBIT for 1997 (prorated from the Effective Time) were $700,000, the Base Earnout Payment would be $225,000 and the Additional Earnout Payment would be $61,595 (31%) of $198,693 the difference between the EBIT Target and the EBIT Earnout Base for 1997.
(ii) Assuming EBIT for 1998 were $421,200, the Base Earnout Payment would be $185,112, or about 82.3% of $225,000; and the difference of $90,761 between the EBIT Earnout Base of $511,961 and EBIT of $421,200 would be added to the EBIT Earnout Base for 1999, thus increasing such base from $511,961 to $602,722.
(iii) Assuming EBIT for 1999 were $602,722, the Base Earnout Payment would be $264,888 (representing the base of $225,000 and a full recoupment of the $39,888 Shortfall for 1998); and no Additional Earnout Payment would be made since EBIT equalled the Adjusted EBIT Earnout Base. In this example, to the extent that EBIT were to fall between the original EBIT Earnout Base of $511,961 and the Adjusted EBIT Earnout Base of $602,722, only a
(iv) Assuming instead that EBIT for 1999 were $2,000,000, the Base Earnout Payment would be $264,888 (the $225,000 plus the recoupment of the $39,888 1998 Shortfall), and there would be an Additional Earnout Payment of $204,872 (equaling 31% of the difference between the EBIT Target of $1,263,600 and the Adjusted EBIT Earnout Base of $602,722).
Calculation Example. If AIXC contributes USD $10,000,000 as Principal, the Management Fee shall be USD $100,000 (1% of $10M). If AIXC subsequently contributes an additional USD $20,000,000, the Management Fee shall be USD $200,000 (1% of $20M), resulting in no additional fee on the initial USD $10,000,000.