Net Profit Share Clause Samples
The Net Profit Share clause defines how profits, after deducting allowable expenses, are distributed among the parties involved in an agreement. Typically, this clause outlines the method for calculating net profit, specifying which costs are subtracted from gross revenue and the percentage or formula used to allocate the remaining profit. By clearly establishing the basis and process for sharing profits, this clause ensures transparency and fairness, reducing the risk of disputes over financial distributions.
Net Profit Share. During the Initial Term and any renewal periods, Athenex shall pay to Gland a payment equivalent to percent (%) of the Net Profits from sale of the Products as defined in Schedule A. Athenex will provide payment to Gland on a quarterly basis not more than Thirty (30) days following the end of each quarterly period following the Launch Date. Each payment shall be accompanied by a statement showing the Net Sales of the product for the applicable quarter, the aggregate Transfer Price paid for the units sold, and the calculation of the Net Profit Share. “
Net Profit Share. 6.3.1 ETON shall pay to Sintetica the first five hundred y thousand ($500,000) of Net Profits from sales by ETON of the Products in the Territory. After five hundred thousand ($500,000) is paid to Sintetica, ETON and Sintetica will share the Net Profits from sales by ETON of the Products in the Territory, if any, as follows: (a) ETON’s share is fifty percent (50%) of Net Profits, and (b) Sintetica’s share is fifty percent (50%) of Net Profits (the “Sintetica Net Profit Share”).
6.3.2 ETON will have the right to withhold the following amounts on a Product-by-Product basis from the commercialization of such Products by ETON in the Territory: five (5%) percent of Net Sales (the “Selling, General and Administrative Fee” or “SG&A Fee”).
6.3.3 Within sixty (60) days following the end of each Calendar Quarter following first commercial sale in the Territory, including the first and last Payment Period which may be of a shorter duration (each, a “Payment Period”), ETON shall: (a) compute and report to Sintetica in a mutually acceptable format the Net Sales, Net Profits and Sintetica Net Profit Share for each Product sold in the Territory during the Payment Period, and (b) pay to Sintetica within thirty (30) days of the delivery of the report, the aggregate Sintetica Net Profit Share for all Products for that Payment Period as reflected in the report. For the first commercial year, if aggregate Net Profit for all Products for any Payment Period equals a negative amount, then Sintetica shall not be entitled to receive any Sintetica Net Profit Share for such Payment Period and ETON shall be permitted to carry over such negative amount to apply against aggregate positive Net Profit amounts in subsequent Calendar Quarters until such negative amount is reduced to zero.
Net Profit Share. Manager shall pay CRDA a profit share based on achievement of certain Net Profit thresholds in each Contract Year (“Profit Share”) in accordance with Manager’s certified audit described in Section 8.08, as adjusted on the basis of CRDA’s audit, as follows: Contract Year. 50%.
(a) Manager shall retain the first $4,000,000 of any Net Profit each
(b) For any Net Profit in excess of $4,000,000, the Profit Share shall be For example, if Net Profit in a Contract Year is $5,000,000, Manager shall retain $4,500,000 for its own account and pay to CRDA the Profit Share of $500,000. Profit Share payments shall be due and payable in full no later than one hundred fifty (150) days after the end of each Contract Year. For the first and last Contract Years, the Profit Share shall be payable with the $4,000,000 threshold described above prorated on a daily basis based upon the length of such Contract Years. There shall be no carry-over of Operating Net Loss at the end of any Contract Year.
Net Profit Share. (a) Following the First Commercial Sale of any Licensed Product in the Field in the Collaboration Territory, KVK shall pay to KemPharm an initial percentage of the Net Profits (if any), in accordance with the table below (“Net Profit Sharing Percentage”; such profit share, the “Net Profit Share”). Less than or equal to [*] 70% to KVK / 30% to KemPharm Greater than [*] but less than or equal to [*] [*]% to KVK / [*]% to KemPharm Greater than [*] 50% to KVK / 50% to KemPharm For clarity, once a certain Net Profit Sharing Percentage is reached with respect to a given Rolling Year, irrespective of the amount of future Net Sales in subsequent calendar quarters, the Net Profit Sharing Percentage shall not reset to a lower Net Profit Sharing Percentage for subsequent Rolling Years. An hypothetical example computation of Net Profit Share is attached hereto as Exhibit E.
Net Profit Share. Net Profit generated by IDP Portugal from the Project shall be split ninety percent (95%) to IDP Canada and five percent (5%) to ▇▇▇▇▇▇▇ (the “Net Profit Share”).
Net Profit Share. (a) Subject to Section 10.4(b) below, Net Profit generated by IDP Portugal from the Project shall be split ninety-five percent (95%) to IDP Canada and five percent (5%) to ▇▇▇▇▇▇▇; and
(b) Net Profit generated by IDP Portugal from the Project utilizing the Smart Nature Licenses shall be split ninety percent (90%) to IDP Canada and ten percent (10%) to ▇▇▇▇▇▇▇. ((a) and (b) shall collectively be referred to as the “Net Profit Share”)”
(f) Section 1.5 shall be deleted and replaced with the following:
Net Profit Share. Net Profit generated by IDP India from the Joint Venture shall be shared in accordance with the Net Profit Share.
Net Profit Share. 3% of the Net Profit of the Film shall be shared among the Artists in the Film according to the formula set out in the Agreement.
Net Profit Share. Both parties agree that the net profits of the JV will be split between iOcean and ITonis on a 51% and 49% basis respectively.