Gross Incentive Amount definition
Gross Incentive Amount which shall mean, for a Hedge Year, the sum of the following differences for each month in the Hedge Year: (a) the Aggregate Benchmark Cost of Supply for the month, minus (b) the Aggregate Actual Cost of Supply plus the monthly payment received by Energy Manager as set forth in Section 8.1 hereof for the month. For the first Hedge Year (i.e., July 1, 2006 through June 30, 2007), Dover shall pay Energy Manager an incentive fee equal to Nine Hundred Seventy-Eight Thousand Dollars ($978,000.00). For each Hedge Year thereafter, if the Gross Incentive Amount for the Hedge Year is a positive value, Dover shall pay Energy Manager an amount equal to thirty-five percent (35%) of such Gross Incentive Amount, but not to exceed One Million Dollars ($1,000,000.00). If the Gross Incentive Amount for the Hedge Year is a negative value, no incentive fee shall be payable to Energy Manager. An example of such calculation of the Gross Incentive Amount is set forth in Appendix D hereto. Any amounts due pursuant to this Section 8.2(b), may be paid, at the sole option of the payor, in either a lump sum or twelve (12) equal monthly installments; provided, however, that upon expiration or Dover’s termination of this Agreement as set forth in Section 2.2 hereof, any amounts due by a Party, or any unpaid portion thereof, shall be immediately due and payable. The lump sum or the first installment shall be due by the end of the month immediately following the end of the applicable Hedge Year.
Examples of Gross Incentive Amount in a sentence
Gross Incentive Amount – Calculated gross earned incentive according to above table for a specific fiscal year of operation based on audited financial results.