NPI Calculation definition
Examples of NPI Calculation in a sentence
Grantor shall maintain true and correct books, records and accounts of (a) all transactions required or permitted by this Conveyance (including all financial information necessary to reflect such transactions), and (b) the financial information necessary to make the Developed Properties NPI Calculation, the Remaining Properties NPI Calculation and the calculation of the Overriding Royalty Interest Proceeds with respect to any Payment Period.
For each Payment Period, Grantor shall deliver to Grantee a statement (“Monthly Statement”) showing the NPI Calculation with respect to the Payment Period on or before the last day of the month that follows such period.
Grantor shall maintain true and correct books, records and accounts of (a) all transactions required or permitted by this Conveyance (including all financial information necessary to reflect such transactions), and (b) the financial information necessary to make the NPI Calculation with respect to any Payment Period.
Additionally, the Monthly Statement delivered in July shall also show the computation of the NPI Calculation for the preceding calendar year.
If the NPI Calculation results in a positive amount with respect to the Payment Period (the “Net Profits”), then (i) that positive amount shall be subtracted from the balance of the Net Profits Account to cause the Net Profits Account to have a zero balance immediately following the end of such Payment Period, (ii) that positive amount shall be multiplied by the Proceeds Percentage, and (iii) the resulting product thereof (the “NPI Payout”) shall be payable to Grantee as specified in Section 4.3.