THE NON-LIFE DIVISION Sample Clauses

THE NON-LIFE DIVISION. 2.1.1. The profit made up according to appendix 6, shall be distributed with 30% to the partners according to ownership shares and with 70% (the "Advance Profit") among the partners who are insurance brokers, the administrative partners being paid via the operating costs, provided always, however, that the aggregate salaries of I/S (including both Life and Non-Life partners' salaries and normal salaries as defined in schedule A) shall not exceed 62% (in 1998), 61% (in 1999) and 60% (in 2000-2005), respectively, of the total income of I/S (excluding investment income). If the aggregate salaries of I/S exceed those thresholds a reduction of 30% of the excess amount shall be made in the Advance Profit and distributed to WCE. The reference to 30% above shall be changed to always correspond to WCE's percentage ownership of the shares of A/S. The parties agree to use their best endeavours to reach an operating margin as defined in Schedule B of at least 20%. In any event the parties agree that AG Group shall have a minimum operating margin of 15% in the years 2000 - 2005 and that in the event this figure is not reached the partners' salaries shall be reduced to an amount which enables AG Group to have a profit margin of 15%. In 2005 the shareholders and partners shall undertake a review process which shall determine both whether 60% remains a fair and reasonable demarcation for "aggregate salaries" and whether 20% remains a fair and reasonable expected operating margin; after having undertaken bench marking against other similar companies engaged in the same or similar businesses; and AG Group's profitability". 2.1.2. The advance profit is divided into a base consideration and a bonus consideration. 2.1.3. Between 90 and 95 percent of the budgetted advance profit shall be used as base consideration. The remaining 5-10 percent and advance profit in excess of the budgeted amount shall be set aside for bonus consideration. 2.1.4. Where the share of advance profit called base consideration is smaller than the budgeted amount, the deficit shall be distributed among the partners in proportion to the base consideration fixed for the year for the individual partner.
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