PROFIT SHARING AGREEMENT
Effective date: [DATE]. Complete the bracketed fields and remove unused options before signing.
Business: [FULL LEGAL NAME], [ADDRESS], [NOTICE EMAIL].
Recipient: [FULL LEGAL NAME], [ADDRESS], [NOTICE EMAIL].
1. ARRANGEMENT
Activity or business unit covered: [DESCRIPTION]. Term: [DATES]. Recipient contributions or eligibility conditions: [DETAILS]. This agreement grants [PROFIT PARTICIPATION ONLY / DESCRIBED OWNERSHIP RIGHTS]. Classification and tax treatment follow the actual arrangement and applicable rules.
2. PROFIT DEFINITION
Revenue included: [DETAILS]. Allowed deductions, overhead allocations, related-party charges and reserves: [SPECIFIC LIST]. Excluded costs: [DETAILS]. Accounting basis and treatment of losses carried forward: [TERMS]. No deduction may be added without the agreed change process.
3. CALCULATION AND PAYMENT
Recipient share: [PERCENTAGE / FORMULA]. Measurement period: [PERIOD]. Statement due: [DATE / DEADLINE]. Payment due: [DEADLINE], in [CURRENCY]. Withholding and tax documents: [DETAILS]. Advances and later adjustments: [TERMS].
4. RECORDS AND DISAGREEMENT
Provide supporting calculations with each statement. Recipient may inspect relevant records on reasonable notice under confidentiality terms. Dispute deadline, independent accountant process and cost allocation: [DETAILS]. Undisputed sums remain payable.
5. ENDING PARTICIPATION
Termination triggers and notice: [DETAILS]. Treatment of partial periods, earned but unpaid amounts, later receipts and final accounting: [TERMS]. No forfeiture of legally protected pay or accrued rights is intended.
6. NOTICES AND CHANGES
Notices must be sent to the addresses above by [AGREED DELIVERY METHOD] and take effect on [AGREED RECEIPT RULE]. Each party must promptly notify the other of changed contact details. Changes to this agreement must be recorded in writing and accepted by all affected parties.
7. LAW AND DISPUTES
Governing law: [AGREED LAW]. Courts or other agreed dispute process: [FORUM AND PROCESS]. The parties will first try to resolve a dispute through their named contacts for [NUMBER] days, without preventing urgent relief or missing a legal deadline. Nothing in this agreement removes rights or requirements that cannot lawfully be excluded.
8. COMPLETE AGREEMENT
This document and its completed schedules record the agreement on this subject. If a term cannot be enforced, the remaining terms continue to the extent permitted. Each signatory confirms authority to sign for the named party. Counterparts and electronic signatures may be used where permitted; any additional signing formalities must still be completed.
SIGNATURES
Business: [NAME]
Signature: ____________________ Date: ____________________
Signing capacity, if applicable: [TITLE / CAPACITY]
Recipient: [NAME]
Signature: ____________________ Date: ____________________
Signing capacity, if applicable: [TITLE / CAPACITY]