Prorated Contract Year Clause Samples
A Prorated Contract Year clause defines how obligations, payments, or benefits are calculated when a contract year is shorter than a full twelve-month period, typically due to the contract starting or ending partway through a calendar year. In practice, this means that annual fees, quotas, or service levels are adjusted proportionally based on the actual number of days or months the contract is in effect during that partial year. This clause ensures fairness and accuracy in financial and performance calculations, preventing over- or under-charging when the contract does not cover a complete year.
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Prorated Contract Year. The Annual Minimum Tonnage shall be prorated based on the number of months, or fractions thereof, that have elapsed during the Kosse Product Supply Period, the Transition Period and the Wisconsin Product Supply Period, as applicable, in any Contract Year. The Monthly Minimum Tonnage and Monthly Maximum Order amounts shall each be prorated based on the fraction of each such month that has elapsed during the Kosse Product Supply Period, the Transition Period and the Wisconsin Product Supply Period, as applicable. *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
Prorated Contract Year. The Annual Minimum Tonnage shall be prorated based on the number of months, or fractions thereof, that have elapsed during the Kosse Product Supply Period, the Transition Period and the Wisconsin Product Supply Period, as applicable, in any Contract Year. The Monthly Minimum Tonnage and Monthly Maximum Order amounts shall each be prorated based on the fraction of each such month that has elapsed during the Kosse Product Supply Period, the Transition Period and the Wisconsin Product Supply Period, as applicable.