Profit Sharing Agreement Template

This profit sharing agreement template has 3 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our profit sharing agreement template:

PROFIT-SHARING AGREEMENT This Profit-Sharing Agreement ("Agreement") is entered into effect as of [DATE], BETWEEN: [COMPANY NAME], ("Company"), an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [EMPLOYEE/PARTNER NAMES], ("Participants") an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] PURPOSE OF THE AGREEMENT The Parties agree to establish the terms and conditions for the sharing of profits generated by the Company among the Participants based on their respective contributions and interests. DEFINITIONS 2.1 Profits: Net profits generated by the Company, calculated according to generally accepted accounting principles (GAAP). 2.2 Participant: An individual or entity that is a Party to this Agreement and entitled to a share of the profits. PROFIT SHARING PLAN 3.1 The Company shall establish a Profit-sharing Plan, the details of which are outlined in Exhibit A attached hereto. 3.2 The Profit-sharing Plan shall specify the distribution of profits among the Participants, including any criteria, percentages, or formulas used to determine each Participant's share.