Common use of Failure to Meet Profit Standard Clause in Contracts

Failure to Meet Profit Standard. (a) If the net operating profits of Company for any annual accounting period of Company shall be less than the net operating profits in the previous fiscal year by 20% percent, Company at its option may terminate this Agreement by giving written notice of termination to Executive. (b) The term ''net operating profits,'' as used herein, means the net operating profits after taxes as determined and certified by the independent certified public accountants regularly retained by Company in accordance with sound accounting principles and in accordance with the past accounting practices of Company. (c) Termination under this section shall be considered ''for cause'' for the purposes of this Agreement.

Failure to Meet Profit Standard. (a) If the net operating profits of Company for any annual accounting period of Company shall be less than the net operating profits in the previous fiscal year by 20% percent, Company at its option may terminate this Agreement by giving written notice of termination to Executive. (b) The term ''’‘net operating profits,'' ’’ as used herein, means the net operating profits after taxes as determined and certified by the independent certified public accountants regularly retained by Company in accordance with sound accounting principles and in accordance with the past accounting practices of Company. (c) Termination under this section shall be considered ''’‘for cause'' ’’ for the purposes of this Agreement.