Monthly Calculation Clause Samples
The Monthly Calculation clause defines how certain amounts, such as payments, fees, or performance metrics, are determined on a monthly basis within an agreement. Typically, this clause outlines the specific formula, data sources, or timeframes used to calculate the relevant figures each month, ensuring both parties understand the process and timing for these calculations. Its core practical function is to provide a clear, consistent method for determining monthly obligations or entitlements, thereby reducing the risk of disputes and ensuring transparency in ongoing contractual relationships.
POPULAR SAMPLE Copied 1 times
Monthly Calculation. Each month of the calendar year, the Parties undertake to carry out the following acts for the purposes of calculating expenses related to Shared Resources actually used in the immediately preceding month:
7.1.1. By the fifth (5th) business day of each month, each Party will close accounting of the expenses related to the Shared Resources actually used in the immediately preceding month ("Monthly Closing").
7.1.2. By the eighth (8th) business day of each month, each Party shall submit to CBD the respective expense reports referring to the Shared Resources actually used in the immediately previous month, as determined in the respective Monthly Closing ("Preliminary Reports").
7.1.3. By the fifteenth (15th) day of each month, CBD shall process the information contained in the Preliminary Reports received and prepare a consolidated expense report, considering the Shared Resources actually used by the Parties, with an indication of the net amounts to be reimbursed by each of the Parties, based on the sharing criteria established in Section 2 ("Monthly Consolidated Report").
7.1.4. By the twentieth (20th) day of each month, CBD must submit the Monthly Consolidated Report to the Management Committee for validation.
7.1.5. By the twenty-fifth (25th) day of each month, the Management Committee will approve the respective Monthly Consolidated Report to be accounted for by the Parties.
Monthly Calculation. Section 2.43 of the Lease is hereby amended to add the following sentence at the end of the Section:
Monthly Calculation. Licensor’s share shall be calculated and paid on a monthly basis, (the “Accounting Period”) and then reconciled on an annual basis corresponding to Licensee’s fiscal year which runs from April 1 to March 31 of the following year. At Licensor’s request Licensee shall pay to Licensor advances against and in reduction of Licensor’s Share for the applicable Accounting Period. The amount of each advance shall be subject to the mutual agreement of Licensor and Licensee.