Calculation of Profit Margin Clause Samples

Calculation of Profit Margin. (a) During the first three years of the term of this Agreement, the profit margin to be charged by Techco shall be 5.76% of all costs and expenses it incurs on behalf of Novavision; provided, that no profit margin shall be charged by Techco on any costs or expenses it incurs for services provided to Techco by Sky Latin America, LLC ("ServiceCo"). (b) On the third anniversary of the date of this Agreement, and at the end of each three-year period thereafter (the "Determination Dates"), the appropriate profit margin to be charged hereunder shall be agreed among TNCL, Globo and Televisa (or their respective nominees) (collectively, the "Majority Partners");provided that the profit margin shall not be greater than the profit margin charged to any other platform which is an affiliate of Techco for similar services. If the Majority Partners are unable to agree on an appropriate profit margin within sixty (60) days following any Determination Date, the appropriate profit margin to be charged hereunder shall be referred for determination by Independent Accountants mutually acceptable to the Majority Partners. The fees and expenses of the Independent Accountants shall be paid by Techco. Promptly after receiving the Independent Accountants' determination, the Majority Partner will resume their discussions about the profit margin, with a view to reaching agreement on what margin to apply. In all such discussions, the Majority Partners will give due weight to the Independent Accountants' recommendation. Pending an agreement among the Majority Partners about the appropriate profit margin, the profit margin in place immediately before the most recent Determination Date will continue to apply.