Gross Profit Margin definition
Examples of Gross Profit Margin in a sentence
Notwithstanding the foregoing, at the sole discretion of the Company’s Board of Directors, upon recommendation of the Compensation Committee, the Gross Profit Margin Requirement described in this Section 4.3 may be decreased or waived entirely for an acquisition(s) or merger or otherwise adjusted as determined by the Compensation Committee.
Gross Profit Margin is calculated by subtracting the cost of goods from the revenue being booked (pursuant to GAAP); provided, however, that no overhead charges or allocations shall be included in such calculation except for the amortized portion of any Message Logic software development costs (pursuant to GAAP).
The determination of whether or not a particular Sales Goal Threshold and Gross Profit Margin, including any adjustments thereto, if any, is met during a given year is made by the Compensation Committee based on the independent annual audited financial statements of the Company, as approved by the Audit Committee, and ratification and approval of such determination by the Board of Directors.
First, the Board of Directors of the Company shall determine if the Gross Profit Margin of the Company was 30% or greater for the most recent fiscal year ended December 31.
In addition to the Sales Goal Thresholds requirement, a 25% Gross Profit Margin must be achieved for the number of Options apportioned to each Sales Goal Threshold set forth in Section 4.1 to vest.