EBITDAB Clause Samples

The EBITDAB clause defines how Earnings Before Interest, Taxes, Depreciation, Amortization, and Bonuses are calculated for the purposes of a contract. It typically outlines which financial items are included or excluded in the calculation, ensuring that both parties have a clear and consistent method for determining this financial metric. This clause is essential for agreements where payments, valuations, or performance targets are tied to EBITDAB, as it prevents disputes by standardizing the calculation method and clarifying what constitutes bonuses in the context of the agreement.