Common use of Calculation and Payment of Service Fees Clause in Contracts

Calculation and Payment of Service Fees. The service fee charged by Party A shall, in principal, equal to 100% of the net profit of the Party B (but in case such net profit is less than zero, the service fee shall equal to zero). Party A may settle such fee on half-yearly basis (or such other intermittence as approval by two-thirds of the board member of Party A) by sending an invoice to Party B for the preceding calculating period. The Parties agree that with respect to the service provided by Party A, the service fee shall be determined based the technical difficulties and complexity of the service provided, the time spent by staff of the Party A in providing such service, the content of the service provided and the intellectual properties provided and the commercial value thereof, and the market value of the similar service, intellectual properties, equipment and factored leased. The time of the invoicing and the amount of the service fee charged shall be approved by the board of Party A following its due decision making procedure. The Parties agree that the service fees under this Agreement may be determined and paid based on the methods set forth in the separate agreements to be entered between Party A and Party B described in Section 1.3, provided such agreement does not contravene the principal set out in the preceding paragraph which can be amended by unanimous approval of the board of Party A.