Distribution Profit definition
Examples of Distribution Profit in a sentence
In the event that an adjustment is required, the Parties shall in good faith negotiate a new arm’s length Distribution Profit level.
If the agreed Distribution Profit level of [***] is within full range of applicable benchmarks, no adjustment should be made.
If the Parts Profit for a month is less than the Distribution Profit, the Distributor will issue an invoice to the Principal for the shortfall.
The Parties have agreed that the Distribution Profit shall be [***] of Net Revenue.
The License Fee should be calculated as the difference between the Actual Total Parts Profit and the Distribution Profit.
Principal will compensate Distributor for the warranty cost incurred through the Distribution Profit as further described in Section 5 and Appendix 1.
The level of the Distribution Profit shall be reviewed and agreed between the Parties on a yearly basis based on the latest comparable benchmarks.
If the Parts Profit for a month exceeds the Distribution Profit, the Principal will issue an invoice for the License Fee payable by the Distributor for the relevant month.
The Distribution Profit is further defined in Appendix 1 of this Parts Supply & License Agreement.
From the fifth anniversary of the Effective Date through the expiration or termination of this Agreement, PHC-SUB shall receive a General Management Fee of twenty percent (20%) of the annual Pre- Distribution Profit Margin, up to the Cap.