Net Profits Defined Clause Samples

Net Profits Defined. For the purpose of this ------------ --------------------- Reorganization Agreement, "Net Profits" for each calendar year shall be as defined and computed in accordance with generally accepted accounting principles applied on a consistent basis from year to year. The determination of Net Profits shall include net losses from any one or more years of the Contingent Consideration Period, but shall not include net losses prior to such Contingent Consideration Period. The determination of Net Profits for each year of the Contingent Consideration Period and the computation of Contingent Consideration shall be made by independent certified public accountants regularly employed by Parent for the purpose of preparing the financial reports of Parent. The term "Net Profits" shall include the Net Profits of Subsidiary and the Net Profits of such other subsidiary or subsidiaries and such division or divisions of Parent as are then carrying on any part of the business formerly carried on by Subsidiary (herein referred to as the Subsidiary Business) to the extent such Net Profits of such subsidiary or subsidiaries and such division or divisions of Parent derived from the Subsidiary Business. If Parent or any division, subsidiary, or affiliate of Parent or Subsidiary in any manner directly or indirectly sells, deals in or manufactures software or performs services which were not previously sold, dealt in, manufactured or performed by Parent or such division, subsidiary, or affiliate of Parent but which were previously sold, dealt in, manufactured or performed by Subsidiary, or which are marketed under the trade name "Cimtronics", or any product or service trade name utilized by Subsidiary, but not utilized by Parent or any division, subsidiary, or affiliate of Parent, prior to the Effective Time, or any variant thereof, Parent or such division, subsidiary, or affiliate shall be conclusively presumed to be carrying on a part of Subsidiary Business.

Net Profits Defined. The term “net profits” as used in this Agreement shall mean the net profits of the Partnership as determined by generally accepted accounting principles for each accounting period provided for in this Agreement.

Net Profits Defined. For purposes of this Agreement, the term "Net Profits" shall mean all revenues from sales generated by the website plus outgoing freight. From this amount is deducted actual credit card processing fees for the customer order, product cost, actual cost of incoming freight and an administration fee per order as established by the Licensor (presently $.50 per order) to arrive at net sales. Each successive month there shall be an adjustment to provide for merchandise returned by customers.

Net Profits Defined