A "Contract Year" is a defined term referring to a consecutive 12-month period starting on a specified date, often the effective date of a contract, and repeating annually throughout the contract's duration. It is used to structure time-based obligations, such as payments, performance milestones, or renewals, within the agreement.
“Annual Withdrawal Amount” (“AWA”) for each Contract Year is equal to (i) the GMIB Benefit Base at the beginning of the Contract Year multiplied by (ii) the Annual Rollup Rate in effect for the first day of the Contract Year. There is an AWA beginning in the Contract Year in which your PBA First Funding Date occurs. If your PBA First Funding Date is a date other than either your Contract Date or a Contract Date Anniversary in a subsequent Contract Year, the AWA for that Contract Year will be prorated as described below. “GMIB Benefit Base” and “Annual Rollup Rate” are defined below.
“Contract Year” means a 1 year period starting on the Effective Date or an anniversary of the Effective Date.
Following the end of each Contract Year to which the financial report relates, Company will submit to Auditor a financial report which states its Eligible Non-Google Search Revenue for the previous Contract Year.
“For purposes of this Agreement, prior to December 31, 2022, a “Contract Year” shall mean the period beginning on August 1 of a given year and ending at 11:59 p.m. on July 31 of the following year until December 31, 2022, after which a “Contract Year” shall mean the period beginning on January 1 of a given year and ending at 11:59 p.m. on December 31 of such year. For the avoidance of doubt, Contract Year 1 shall be August 1, 2021 through July 31, 2022, Contract Year 2 shall be a prorated year from August 1, 2022 through December 31, 2022, Contract Year 3 shall be January 1, 2023 through December 31, 2023, Contract Year 4 shall be January 1, 2024 through December 31, 2024, and Contract Year 5 shall be January 1, 2025 through December 31, 2025.
The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit.
This Contract applies to Losses from Covered Events which commence during the period from 12:00:01 a.m., Eastern Time, June 1, 2021, to 12:00 midnight, Eastern Time, May 31, 2022 (the “Contract Year”). The SBA shall not be liable for Losses from Covered Events which commence after the effective time and date of expiration or termination. Should this Contract expire or terminate while a Covered Event is in progress, the SBA shall be responsible for such Covered Event in progress in the same manner and to the same extent it would have been responsible had the Contract expired the day following the conclusion of the Covered Event in progress.
This term means the sum of the Balance of the Fund as of December 31 of a Contract Year, plus any reinsurance purchased by the FHCF, plus the amount the SBA is able to raise through the issuance of revenue bonds under Section 215.555(6), Florida Statutes.
The Buffer Rate is the negative Index Change on an annual point-to-point basis potentially absorbed to calculate any Adjusted Index Change for each Contract Year in a Crediting Period.
For any Contract Year, transfers out of the DIR Fixed Account are limited in amount to 30% of the Contract Value allocated to such account at the time of the first transfer in that Contract Year. If the Contract Owner transfers 30% of the Contract Value in the DIR Fixed Account for three consecutive Contract Years, in the fourth consecutive Contract Year the Contract Owner may transfer up to the entire amount in the DIR Fixed Account, provided that Purchase Payments or transfers have not been applied to the DIR Fixed Account from the time the first annual transfer was made.
[During the first Contract Year, the Contract Owner may withdraw up to 10% of the Purchase Payments reduced by any Free Withdrawal Amount(s) previously taken during such Contract Year. Beginning in the second Contract Year, the Contract Owner may withdraw up to 10% of the Contract Value determined as of the end of the previous Contract Year plus 10% of any Purchase Payment received in the current Contract Year reduced by any Free Withdrawal Amount(s) previously taken during the current Contract Year.]
The FHCF Reimbursement Contract (‘Contract’) for the 2023/2024 Contract Year is due to be executed no later than Wednesday, March 1, 2023, via DocuSign.
This Contract applies to Losses from Covered Events which commence during the period from 12:00:01 a.m., Eastern Time, June 1, 2023, to 12:00 midnight, Eastern Time, May 31, 2024 (the “Contract Year”). The SBA shall not be liable for Losses from Covered Events which commence after the effective time and date of expiration or termination. Should this Contract expire or terminate while a Covered Event is in progress, the SBA shall be responsible for such Covered Event in progress in the same manner and to the same extent it would have been responsible had the Contract expired the day following the conclusion of the Covered Event in progress.
The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit.
Transfers out of the Fixed Account(s) excluding the DCA Fixed Account(s) during the first Contract Year are limited in amount to thirty percent (30%) of the Contract Value allocated to the Fixed Account(s) determined as of the time of the first transfer. Transfers out of the Fixed Account(s), excluding LT Fixed Account and the DCA Fixed Account(s), during any subsequent Contract Year are limited in amount to thirty percent (30%) of the Contract Value allocated to the Fixed Account(s) determined as of the end of the previous Contract Year. Transfers out of the Fixed Account(s) are done on a first-in-first-out basis and are subject to any restrictions attributable to the Fixed Account(s). The entire Contract Value allocated to the Fixed Account(s) may be transferred in the fourth Contract Year following 30% transfers in each of the immediately preceding three Contract Years, provided that Purchase Payments or Transfers have not been applied to the Fixed Account(s) from the time the first annual transfer was made.
Automatic Resets at Beginning of Contract Years 2 and 3.
A subsequent Purchase Payment of $100,000 is received during Contract Year 1.
A withdrawal equal to or less than the Enhanced Income Amount is taken during Contract Year 2.
Calendar years 2021, 2022, and 2023 (corresponding to the Company's fiscal years) are referred to herein as “Contract Year(s)”. With respect to each Contract Year during which Executive served as President for the entirety of such year (or in the case of 2021, from January 19, 2021 through December 31, 2021), if and only if Penn-Patriot’s actual consolidated policy year underwriting income for such Contract Year (“Actual Contract Year UI”) equals or surpasses 75% of the amount of Penn-Patriot’s consolidated policy year underwriting income included in the business plan approved (and as may be modified) by the Board, in its absolute discretion, in respect of such Contract Year (the “Board Targeted UI”), then Executive shall be entitled to a bonus award (“Bonus Award”) in respect of such Contract Year.
The Bonus Award in respect of a Contract Year will be $487,500 if Actual Contract Year UI is 75% of Board Targeted UI, $650,000 if Actual Contract Year UI is 100% of Board Targeted UI, and $812,500 if Actual Contract Year UI is 125% or more of Board Targeted UI. If Actual Contract Year UI is between 75% and 125% of Board Targeted UI, the Bonus Award in respect of a Contract Year will be determined by interpolation based on the preceding sentence.
When the Designated Life is 59½ years of age or older, you may withdraw up to the Protected Payment Amount each Contract Year, regardless of market performance, until the Rider terminates. The Protected Payment Amount will be reduced by the amount withdrawn during the Contract Year, inclusive of any applicable charges and taxes, and will be reset each Contract Anniversary. Any portion of the Protected Payment Amount not withdrawn during a Contract Year may not be carried over to the next Contract Year. If a withdrawal does not exceed the Protected Payment Amount immediately prior to that withdrawal, the Protected Payment Base will remain unchanged.
A Contract Year is a term used to define a specified period of time during a contract. Typically, a contract year refers to a duration of one year, but it may not necessarily align with the calendar year. Instead, it often starts from the effective date of the contract and ends 12 months later.
You should use a Contract Year when it is important to track the performance, obligations, or terms within a specific annual cycle that does not necessarily follow the calendar year. This is common when:
To write a Contract Year in a contract, clearly define the time frame it covers. Here’s an example of how you might specify it:
“For the purposes of this Agreement, the term ‘Contract Year’ shall mean a period of twelve (12) consecutive months commencing on the Effective Date of this Agreement and each successive twelve-month period thereafter.”
Ensure that the definition is placed in a section where key terms are defined, often early in the contract, usually under “Definitions.”
Contracts that often include a Contract Year designation are:
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