Common use of Container Royalty Distribution Clause in Contracts

Container Royalty Distribution. (a) Each year during the term of this Master Contract the total amount of Container Royalty benefits payable to the eligible workforce under the Master Contract shall be no less than the total sum paid in all ports in 2011. Similarly, each year during the term of this Master Contract, administrative expenses payable to the local port container royalty funds covered by the Master Contract shall be no less than the total sum of administrative expenses paid by those funds in 2011, except in any year when the total sum of administrative expenses paid by a port is less than the total sum of administrative expenses paid in 2011 by that port. For all ports other than the Port of New York and New Jersey, the year 2011 shall mean the contract year ending September 30, 2011; for the Port of New York and New Jersey, the year 2011 shall mean the calendar year ending December 31, 2011. (b) The ILA’s and USMX’s shares of the Container Royalty Nos. 1 and 3 assessments collected that are in excess of the amounts needed to satisfy the contractual obligations set forth in Article XII, Section 3(a) of this Master Contract shall be calculated as follows: i. At the end of the 2018-2019 contract year, the ILA’s share shall equal the sum of (a) the first $15 million (hereinafter referred to as “ILA’s Initial Lump-Sum Amount”) plus (b) 50% of the remaining excess; ii. At the end of the 2019-2020 contract year, the ILA’s share shall equal the sum of (a) the first $16 million plus