When Reference Pre-Tax Profit is not met Sample Clauses

When Reference Pre-Tax Profit is not met. If the Pre-Tax Profit for the Earn Out Period (as determined pursuant to Clause 3.3.1(a)) is less than the Reference Pre-Tax Profit, each of the Adjustment Amounts shall be determined in accordance with the formulae below:‌ In respect of the EDragon Adjustment Amount: EDragon Adjustment Amount = Pre-Tax Profit Shortfall Reference Pre-Tax Profit × EDragon Initial Consideration In respect of the LY Development Adjustment Amount: LY Development Adjustment Amount = Pre-Tax Profit Shortfall Reference Pre-Tax Profit × LY Development Initial Consideration provided that if the Target Company is loss-making during the Earn Out Period and the Pre-Tax Profit for the Earn Out Period is a negative figure, the Pre-Tax Profit Shortfall shall be equal to the Reference Pre-Tax Profit for the purposes of calculating the Adjustment Amounts.
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