Annual Deduction Clause Samples
The Annual Deduction clause defines the maximum amount that can be deducted from a party’s liability or payment obligations within a given year under a contract. Typically, this clause sets a cap on the total deductions that can be made annually, such as for damages, penalties, or other offsets, ensuring that deductions do not exceed a specified threshold in any contract year. By establishing this limit, the clause provides predictability and financial protection for the parties, preventing excessive or unexpected reductions in payments and helping to manage risk exposure over the contract term.
Annual Deduction. For each Calendar Year, a deduction in the amount of $82,500 shall be made to the aggregate amount of the CMI Sales Commissions and the CHS Sales Commissions payable to the Employee. Such deduction shall be made prior to any payment of such commissions for such Calendar Year.
Annual Deduction. An employee who opts for Local 39 membership dues shall not be permitted to change such deduction except during the month of June of each year of this MOU. At any time with proper authorization, an employee who opts for Agency Fee shall be permitted to change to Union membership dues but not to a charitable contribution. An employee who opts for a charitable contribution shall be permitted to change to an Agency Fee or Union membership dues at any time during the term of the Agreement.