Calculation of Group Agreements with Day-based Time Units

Compensation agreements using a percentage-based calculation type are defined as a percent of the sum of the amounts of a group of selected compensation agreements.

The amount contributed by each group agreement is dependent on the percent of overlap between the percent agreement and the group agreement.

E₁ denotes the effective period of the percent agreement and E₂ is the effective period of the group agreement with a time unit measured in days, and which pay out days are defined by D₂. We let the overlapping effective period between the agreements be defined as E₁₂ = E₁₂ E₂, and 0₁₂ be the percent of overlap between the effective periods of the percent agreement (1) and the group agreement (2).

For the cases where the time unit of the group agreement is measured in days, the following method to measures the overlap. It is dependent on the payout days of the group agreement:

Overlap = D ₂ (E ₁₂ ) / D ₂ (E ₂ )

If there is no overlap between the effective periods of the two agreements, the result is zero.