[{"data":1,"prerenderedAt":509},["ShallowReactive",2],{"document-profit-sharing-plan-D483":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":36,"customDescModule":181,"customdescription":6,"mdFm":182,"mdProseHtml":508},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"Profit Sharing Plan Your business slogan here. Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com PROFIT-SHARING PLAN FOR SELF-EMPLOYED INDIVIDUALS The following document is a model profit-sharing plan that is intended to give you an idea of what a typical profit-sharing plan contains. You can modify this form to meet your specific circumstances. Of course, if you intend to use this plan, you should make sure that your attorney reviews it and approves any changes you make. TABLE OF CONTENTS Article Preamble 1. Purpose and Definitions Preamble Purpose Definitions Construction 2. Service Credit and Participation Hour of Service Service Break in Service Loss of Service Multiple Trades and Businesses Participation Originating Under This Plan Cessation of Participation Service and Reentry 3. Contributions Contributions by Employer Member Voluntary Contributions Member Voluntary Contributions (Alternate) 4. Individual Accounts and Allocations Establishment of Individual Accounts Allocation of Employer Contributions Allocation of Gains and Losses Allocation of Forfeitures Notification to Members 5. Retirement Benefit 6. Death Designation of Beneficiary Benefit No Beneficiary 7. Disability Benefit 8. Termination of Employment, and Forfeitures Eligibility Benefit Forfeitures Early Retirement 9. Distribution Notices and Methods of Payment Notice to Trustee Subsequent Notices Time and Methods of Payment Limitations on Payment Minority or Disability Payments 10. Special Governmental Requirements Limit on Annual Additions Under [CODE SECTION] Top-Heavy Restrictions 11. Administration Appointment of Committee Committee Powers and Duties Claims Procedure Committee Procedures Authorization of Benefit Payments Payment of Expenses Unclaimed Benefits 12. Trust Fund Establishment of Trust Fund Payment of Contributions to Trust Fund 13. Amendments Right to Amend 14. Withdrawal and Termination Transfers of Plan Assets and Plan Mergers Plan Termination Suspension and Discontinuance of Contributions and Plan Termination Liquidation of Trust Fund 15. General Provisions Non-guarantee of Employment Manner of Payment Non-alienation of Benefits Amounts Returnable to the Employer Governing Law PROFIT-SHARING PLAN FOR SELF-EMPLOYED INDIVIDUALS OF [YOUR COMPANY NAME] Preamble [YOUR COMPANY NAME], organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] of [state/PROVINCE], hereby establishes a profit-sharing plan for its employees as hereinafter defined, effective [the effective date]. Said organization, as part of the aforesaid Plan, adopts concurrently herewith a Trust agreement creating a Trust Fund (hereinafter at times referred to as the \"Fund\"), to which contributions shall be made and from which benefits shall be paid in accordance with the terms and conditions thereof. The Plan hereby established is conditioned upon its qualification under [SECTION] of [CODE] , as amended from time to time, with employer contributions being deductible under [SECTION] of [CODE] or any other applicable sections thereof, as amended from time to time. The Plan is intended to qualify as a profit-sharing plan. Purpose and Definitions Purpose: The purpose of this Plan is to encourage Employees to save and invest, systematically, a portion of their current Compensation in order that they may have a source of additional income upon their Retirement or Disability, or for their family in the event of death. The benefits provided by this Plan will be paid from the Trust Fund and will be in addition to the benefits Employees are entitled to receive under any other programs of the Employer. This Plan and the separate related Trust forming a part hereof are established and shall be maintained for the exclusive benefit of the eligible Employees of the Employer and their Beneficiaries. No part of the Trust Fund can ever revert to the Employer or be used for or diverted to any other purpose other than for the exclusive benefit of the Employees of the Employer and their Beneficiaries, except as provided in Section 18.4 hereof. Definitions: Where the following words and phrases appear in this Plan, they shall have the respective meanings set forth below, unless the context clearly indicates otherwise: Allocation Date: The date as of which contributions are allocated hereunder, which shall be the last day of the Plan Year. The Committee may use more frequent Allocation Dates if it so desires. Affiliated Employer: Any business entity (including an Employer hereunder) that, together with an Employer hereunder, constitutes a controlled group of corporations, a group of trades or businesses under common control, or an affiliated service group, all as defined in [CODE SECTION] (subject, however, to the provisions of [CODE SECTION] when applying the benefit limitations of [CODE SECTION]). Beneficiary: A person designated by a Member to receive benefits hereunder upon the death of such Member. Code: The [SECTION] of [CODE] , as amended from time to time. Committee: The person or persons appointed to administer the Plan in accordance with Article XII hereof. Compensation: As to Owner-Employees and any partner who owns less [%] capital or profits interest in the trade or business, Compensation means the Earned Income of such individual, which is net income from self-employment derived from the business with respect to which the Plan is established, provided his personal services are a material income producing factor in such business, determined without regard to items which are not included in gross income for purposes of federal income tax and the deductions properly allocable to or chargeable against such items, and determined after deduction for contributions on behalf of said Owner-Employee and all other Employees. Earned Income also includes gains which are not treated under the Code as gains from the sale or exchange of capital assets and net earnings derived from the sale or other disposition of, the transfer of any interest in, or the licensing of the use of property (other than goodwill) by an individual whose efforts created such property. It is the intent of the foregoing to incorporate the definition of earned income as set forth in [CODE SECTION]. As to any other Employee, the total cash remuneration paid to the Employee for a calendar year by an Employer (or predecessor company) for personal services as reported on the Employee's federal income tax withholding statement or statements. Effective for the Plan Year beginning in [year], this Plan shall not take into consideration compensation in excess of [AMOUNT], as indexed under [CODE SECTION], in computing any Plan benefits. Covered Employment: The employment category for which the Plan is maintained, which includes any employment with the Employer. Disability: A physical or mental condition which, in the judgment of the Committee, totally and presumably permanently prevents an Employee from engaging in substantial gainful employment with his Employer. Effective Date: [Effective date]. Employee: Any person who, on or after the Effective Date, is receiving remuneration for personal services rendered as a common law employee of the Employer or Affiliated Employer (or who would be receiving such remuneration except for an authorized Leave of Absence), or any Owner Employee, or a partner who has less than a [%] capital or profits interest in the trade or business. 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Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Contents Letter from the CEO 3 Executive Summary 4 1. Purpose of the Equity Incentive Plan 5 1.1 Purpose 5 1.2 Why Do We Need a Plan? 5 2. Administration of the Plan 6 2.1 General 6 2.2 Committee 6 2.3 Powers of the Administrator 6 2.4 Effects of Administrator's Decision 7 2.5 Indemnification 7 3.Eligibility 8 4. Grant of Options 9 5. Stock Subject to Plan 10 6. Aggregate Fair Market Value 11 7. Exercise of Option 12 8. Option Price 13 9. Option Non-Transferable 14 9.1 Other Option Terms 14 10. Amendment and Termination of Plan 15 Letter from the CEO Every company needs to show value and appreciation for its employees. For this reason, equity-based incentive compensation becomes highly imperative. The core purpose of the Equity Incentive Plan is to appropriately attract, retain and incentivize employees. At [COMPANY NAME], rewarding employees, directors, contractors, and partners is a priority. It's also important for us in granting them necessary shares or units in the Equity Incentive Plan. With equity Awards, the Company can successfully align its interests with that of the recipient. Based on history, equity plans were limited to the enterprise market and the professional management of significant corporations. Equity plans were originally directed to the issuance of options. However, these plans have expanded to other sectors, including privately owned businesses. With our [COMPANY NAME] Equity Incentive Plan, we can rightfully attract the best available personnel for positions with major responsibilities. Options granted under the Equity Incentive Plan may include Incentive Stock Options or No Statutory Stock Options, depending on the Administrator at the period of granting. There's also a possibility of granting Restricted Stock under the Plan. In the following pages, you will discover how [COMPANY NAME] plans to grant equity-based incentives to employees. It's in everyone's interest that they stay aware of the Plan in order to be prepared. Enjoy your reading and thank you for your participation. [CEO NAME] Executive Summary [COMPANY NAME] has developed an Equity Incentive Plan to compensate employees and other important individuals in the organization. This could include directors, consultants, partners, and contractors. [Write more content under the executive summary that provides a brief, but descriptive breakdown of the key components of the Equity Incentive Plan. In order to ensure that this summary is clear and comprehensive, it's advisable to write the content after the other sections of the document have been written. A first-time reader should be able to read the executive summary by itself and comprehend what the Equity Incentive Plan involves. Ensure that the summary stands alone and doesn't directly refer to any part of the Plan. The executive summary should motivate readers to continue reading the rest of the document. It should be one to three pages in length.] 1. Purpose of the Equity Incentive Plan 1.1 Purpose The purpose of this Equity Incentive Plan is to help strengthen [COMPANY NAME] by providing adequate Incentive Stock Options to key personnel, officers, employees, directors, consultants, advisors, contractors, and other individuals. These individuals are usually expected to provide major services to [COMPANY NAME] and its subsidiaries, including officers and directors of the participating companies. This Equity Incentive Plan also functions to encourage a proprietary interest in the Company. Hence, it aligns the significant interests of service providers in [COMPANY NAME] with that of significant stockholders in [COMPANY NAME]. With this Plan, there can be Awards of equity-based incentives to major personnel, employees, officers, directors, and other providers of services to the Company. These Awards can either be through a participating company or directly. [ADD ANY ADDITIONAL CONTENT HERE] 1.2 Why Do We Need a Plan? An Equity Incentive Plan is an important component in an employee's overall compensation package that helps employees own a portion of the Company they work for. These equity incentives can either be shares or incentives. We need a Plan for: Promoting the Company's long-term success Attracting and retaining talent Improving a compensation package without reducing cash flow [ADD ANY ADDITIONAL CONTENT HERE] 2. Administration of the Plan 2.1 General This Plan will be appropriately administered by the Board or Committee, or a combination thereof, as determined by the Board of [COMPANY NAME]","Equity Incentive Plan","15","https://templates.business-in-a-box.com/imgs/1000px/equity-incentive-plan-D13224.png","https://templates.business-in-a-box.com/imgs/250px/13224.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13224.xml",{"title":93,"description":6},"equity incentive plan",[95,98],{"label":96,"url":97},"Finance & Accounting","finance-accounting",{"label":99,"url":100},"Raising Capital","raising-capital","/template/equity-incentive-plan-D13224",{"description":103,"descriptionCustom":6,"label":104,"pages":105,"size":106,"extension":10,"preview":107,"thumb":108,"svgFrame":109,"seoMetadata":110,"parents":111,"keywords":115,"url":116},"MANAGEMENT AGREEMENT This Management Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Manager\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Company is in the business of operating a [SPECIFY] (the \"Business\"); WHEREAS the Manager has knowledge and expertise in the area of establishing, developing, operating and managing [SPECIFY BUSINESS TYPE], as well as in the area of the management of enterprises carrying on activities similar to those of the Company; WHEREAS the Company considers that the Manager's expertise will enable the Company to successfully and profitably operate its Business; WHEREAS the Manager has represented to the Company that it shall, during the term of this Management Agreement, be primarily responsible for the performance of the services to be provided hereunder; WHEREAS the Company wishes to engage the Manager to manage the Business on the terms and conditions set out below, and the Manager is prepared to enter into the present Management Agreement with the Company. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. ENGAGEMENT 1.1 The Company hereby engages the Manager to provide expertise in the operation of the Business and such management services as may, from time to time, be requested by the Company. Such services shall be provided by the Manager and through such other agents and supervisors employed by the Manager as may be named by the Manager. 2. TERMS AND RENEWAL 2.1 The terms of the present Management Agreement shall run for [NUMBER] ([NUMBER]) months from the date of the opening for business of the Business, unless sooner terminated or subsequently continued in accordance with the terms and conditions of the present Management Agreement. 2.2 The Company may, at its option, renew the present Management Agreement for an additional period of [NUMBER] ([NUMBER]) months, provided that at the end of the initial term: 2.2.1 the Company has given the Manager written notice of such election to renew not less than [NUMBER] ([NUMBER]) months and not more than [NUMBER] ([NUMBER]) months prior to the expiry of the initial term; 2.2.2 the Company has satisfied all monetary obligations owed by it to the Manager, and has timely met such obligations throughout the term of the present Management Agreement; 2.2.3 the Company shall execute not less than [NUMBER] ([NUMBER]) months prior to renewal the Manager's then-current form of Management Agreement, which Agreement shall supersede in all respects the present Management Agreement, and the terms of which may differ from the terms of the present Management Agreement, including, without limitation, a revised Management Fee; and 2.2.4 the Company shall execute a general release, in a form prescribed by the Manager, of any and all claims against the Manager and its subsidiaries and affiliates, if any, and in respect of their respective officers, directors, agents and employees. 3. FEES AND PAYMENTS 3.1 The Company shall pay to the Manager during the terms of this Management Agreement a fee for its management services in an amount equal to [PERCENTAGE %] percent ([PERCENTAGE %]) of the Gross Sales at the Business (the \"Management Fee\"), which Management Fee shall be payable monthly in arrears. The term \"Gross Sales\" as used herein shall include the aggregate of the total amount of all sales, receipts, receivables, sales of merchandise made or services rendered in, at, on, or from the Business, and sales wherever made of food, beverage and products stored on the Business's premises, including catering on and off the Business's premises, or any other business conducted from the Business, whether made by the Company or any assignee, successor or sub-lessee, and whether made on a cash basis, or by check, or on credit, paid or unpaid, collected or uncollected, including deposits not refunded to customers, and the amount of any orders received at or solicited from the Business although such orders may be filled elsewhere, in the same manner and with the same effect as if such sales or services have been made or performed on the Business premises. Each charge or sale upon credit shall be treated as a sale for the full price in the week during which such charge or sale shall be made, irrespective of the time when the Company shall receive payment, either full or partial, therefor. Any installation fee, continuing rental, or percentage sales or any other revenue received by the Franchisee from vending and other machines and public telephone permitted to be installed on the Business's premises under Paragraph 5.6 hereof shall form part of Gross Sales. 3.4 The term \"Gross Sales\" as used herein shall not, however, include, or there shall be deducted therefrom, as the case may be the following amounts: the amount of all sales for which cash has been refunded, but only to the extent of such refund, provided that the amount of such sales shall have previously been included in Gross Sales; the amount of any gratuities to employees; the amount of any sales, retail, excise, or similar tax imposed by any federal, provincial, municipal or other governmental authority directly on sales or services and added to the price thereof, where such amounts have been collected from the customer at the point of sale by the Company acting as agent for such authority and actually in turn paid by the Company to such governmental authority; the amount of any promotional discounts approved by the Franchisor, including, without limitation, coupon redemptions and other sales of food pursuant to promotional programs which have been approved in writing by the Franchisor prior to implementation; meals served to employees of the Company and consumed on the Business's premises, provided an accurate list of such meals consumed is reported on the weekly report required by Paragraph 4.3 hereinabove. 3.5 The Manager shall be reimbursed for all travelling and other expenses actually and properly incurred by it in connection with its duties hereunder. The Manager shall furnish statements and vouchers to the Company in respect of all such expenses for which reimbursement is claimed. 3.6 All monthly payments required by this Article 3 must be paid by check drawn to the order of the Manager and received by the Manager at its address designated in sub-paragraph 9.1.1 hereof, by [HOUR] o'clock in the afternoon ([HOUR] a.m/p.m.) on the [DAY] immediately following the close of each monthly period, accompanied by a written report detailing the calculations of the Company's Gross Sales at the Business for each such monthly period. If any payment is overdue, the Company shall pay to the Manager, in addition to the overdue amount, interest on such amount from the date it was due until the date of payment, at the rate of [PERCENTAGE %] percent ([PERCENTAGE %]) per annum, and entitlement to such interest shall be in addition to any other remedies which the Manager may have. 4. AUTHORITY, POWER, OBLIGATIONS AND RESPONSIBILITIES OF THE MANAGER 4.1 The Manager shall have full power and authority to manage the Business on behalf of the Company during the terms of the present Management Agreement. 4.2 For greater certainty, the Manager's authority, powers, duties and responsibilities hereunder towards the Company shall include: 4.2.1 the recruitment, employment, and dismissal of all employees of the Company working in the Business; 4.2","Management Agreement","6",63,"https://templates.business-in-a-box.com/imgs/1000px/management-agreement-D163.png","https://templates.business-in-a-box.com/imgs/250px/163.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#163.xml",{"title":6,"description":6},[112],{"label":113,"url":114},"Consultant & Contractors","consulting-contractor-business","partnership agreement","/template/partnership-agreement-D163",{"description":118,"descriptionCustom":6,"label":119,"pages":120,"size":9,"extension":10,"preview":121,"thumb":122,"svgFrame":123,"seoMetadata":124,"parents":126,"keywords":125,"url":131},"STOCK OPTION PLAN This Stock Option Plan (the \"Plan\") is given by [COMPANY NAME] (the \"Company\"), having its registered office at [SPECIFY ADDRESS] to its Employees. This Plan was approved and adopted by the Board of Directors and by the stockholders on [DATE]. STATEMENT OF PURPOSE [COMPANY NAME] has formulated this Plan, in furtherance of the corporate policy of the Company, for creating an environment conducive to higher growth opportunities for its Employees and the Employees of its Affiliates, and with a view to align the interests of such Employees and those of the shareholders by creating a common sense of purpose towards creating sustainable shareholder value. DEFINITIONS Administrator shall mean the Compensation Committee of the Board (or a subcommittee thereof) acting in its capacity as Administrator of the Plan. Applicable Laws shall mean the legal requirements related to the Plan and the option under applicable provisions of the securities laws of [STATE/PROVINCE]. Board shall mean the Company's Board of Directors. Company shall mean [NAME OF COMPANY]. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the attached Exhibit A. Optionee shall mean the person eligible to avail the Stock Option Plan. Permanent Disability shall mean the inability of the Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of [NUMBER OF MONTHS] months or more. Plan shall mean this Stock Option Plan. GRANT OF OPTION The Company hereby grants to the eligible person (the \"Optionee\") an option to purchase shares of Common Stock under the Plan. The date on which this option is granted (the \"Grant Date\"), the number of shares of Common Stock purchasable under this option (the \"Option Shares\"), the exercise price payable per share (the \"Exercise Price\"), the applicable vesting schedule by which this option shall vest and become exercisable incrementally for the Option Shares (the \"Vesting Schedule\") and the date to be used to measure the maximum term of this option (the \"Expiration Date\") are indicated on the attached Exhibit A to this Plan. The remaining terms and conditions governing this option shall be as set forth in this Plan. ELIGIBILITY FOR THE GRANT OF OPTIONS The criteria to be fulfilled by an Employee for being considered an Eligible Employee may be prescribed by the Committee from time to time. Only Employees fulfilling such criteria and who are not Disqualified Employees shall be considered Eligible Employees for the purposes of this Plan. An option can be granted only to an Eligible Employee who has been selected by the Committee. While selecting Eligible Employees for the award of grants and for deciding the number of options to be granted to such Eligible Employees, the Committee may be guided by the following considerations (i.e. eligibility criteria): Number of years of service Job profile and grade Performance rating or key result area appraisal Any other factors the Board of Directors or the Committee may deem appropriate. OPTION TERM The term of this option shall commence on the Grant Date and continue to be in effect until the close of business on the last business day prior to the Expiration Date specified in the attached Exhibit A, unless sooner terminated in accordance with this Plan. LIMITED TRANSFERABILITY This option shall be neither transferable nor assignable by the Optionee other than by will or the laws of inheritance following the Optionee's death and may be exercised, during the Optionee's lifetime, only by the Optionee. DATE OF EXERCISE This option shall vest and become exercisable for the Option Shares in a series of installments in accordance with the Vesting Schedule set forth in the attached Exhibit A. As the option vests and becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the last business day prior to the Expiration Date or any sooner termination of the option term. CESSATION OF SERVICE The option mentioned above shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: Except as otherwise expressly provided in subparagraphs 8.1.2 through 8.1.7 of this Paragraph 8, should the Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the [NUMBER OF MONTHS]-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, but in no event shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. In the event the Optionee ceases Continuous Service by reason of his or her death while this option is outstanding, then this option may be exercised, for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, by (i) the personal representative of the Optionee's estate or (ii) the person or persons to whom the option is transferred pursuant to the Optionee's will or the laws of inheritance following the Optionee's death. However, if the Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following the Optionee's death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the close of business on the last business day prior to the earlier of (a) the expiration of the twelve (12)-month period measured from the date of the Optionee's death or (b) the Expiration Date. Upon the expiration of such limited exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. Should the Optionee cease Continuous Service by reason of Permanent Disability while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the twelve (12)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. Except as otherwise precluded by Applicable Laws, should (i) the Optionee cease Continuous Service after completion of at least three (3) years of Continuous Service and (ii) the sum of the Optionee's attained age and completed years of Continuous Service at the time of such cessation of service equals or exceeds seventy (70) years, then the Optionee shall have until the close of business on the last business day prior to the expiration of the thirty-six (36)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date.","Stock Option Plan","9","https://templates.business-in-a-box.com/imgs/1000px/stock-option-plan-D13284.png","https://templates.business-in-a-box.com/imgs/250px/13284.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13284.xml",{"title":125,"description":6},"stock option plan",[127,130],{"label":128,"url":129},"Legal Agreements","business-legal-agreements",{"label":128,"url":129},"/template/stock-option-plan-D13284",{"description":133,"descriptionCustom":6,"label":134,"pages":135,"size":9,"extension":10,"preview":136,"thumb":137,"svgFrame":138,"seoMetadata":139,"parents":141,"keywords":140,"url":148},"EMPLOYMENT AGREEMENT - AT WILL EMPLOYEE This Employment Agreement for \"At Will\" Employee (the \"Agreement\") is made and effective this [DATE], BETWEEN: [EMPLOYEE NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Corporation\"), an entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Corporation hereby employs the Employee and the Employee hereby agrees to perform services as an employee of the Corporation, on an \"at will\" basis, upon the following terms and conditions: APPOINTMENT The Employee is hereby employed by the Corporation to render such services and to perform such tasks as may be assigned by the Corporation. The Corporation may, in its sole discretion, increase or reduce the duties, or modify the title and job description, of the Employee from time to time, and any such increase, reduction or modification shall not be deemed a termination of this Agreement. ACCEPTANCE OF EMPLOYMENT Employee accepts employment with the Corporation upon the terms set forth above and agrees to devote all Employee's time, energy and ability to the interests of the Corporation, and to perform Employee's duties in an efficient, trustworthy and business-like manner. DEVOTION OF TIME TO EMPLOYMENT The Employee shall devote the Employee's best efforts and substantially all of the Employee's working time to performing the duties on behalf of the Corporation. The Employee shall provide services during the hours that are scheduled by the Corporation management. The Employee shall be prompt in reporting to work at the assigned time. NO CONFLICT OF INTEREST Employee shall not engage in any other business while employed by the Corporation. Employee shall not engage in any activity that conflicts with the Employees duties to the Corporation. Employee shall not provide any service or lend any aid or assistance to any party that competes with the services offered by the Corporation. Employee shall not provide any services to clients or prospective clients of the Corporation outside of the provision of services for the Corporation, whether such services are provided with or without compensation or remuneration. CORPORATION PROPERTY Employee acknowledges and agrees that while employed by the Corporation the Employee may be provided with use of computer equipment and other property of the Corporation. The use and possession of the such items shall be subject to any policies, requirements or restrictions established by the Corporation. Such items may only be used in performance of the Employee's duties for the corporation. On request of the Corporation, the Employee shall immediately deliver any such items to the Corporation. Upon termination of employment, Employee shall have the affirmative duty to return any such item to the Corporation whether a request is made or not. The obligation to return Corporation property shall extend and include any and all work product, client property, proprietary rights, intangible property, and all other property of the corporation regardless of the form or medium. COMPENSATION The Corporation shall pay the Employee such hourly compensation as determined by the Corporation. Payment shall be at the same time as the Corporations usual payroll to other employees. BONUS & BENEFITS Payment of any bonuses shall be at the complete discretion of the Corporation. No guarantee or representation that any bonuses will be paid has been made to the Employee. Standard benefits that are provided to other non-management employees shall be offered to the Employee, subject to the Corporation's policies and the terms and conditions of such benefits. WITHHOLDING All sums payable to Employee under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. QUALIFICATIONS OF EMPLOYEE The employee shall satisfy all of the qualification that are established by the Corporation. TERM OF AGREEMENT There shall be no guaranteed term of employment. Employer acknowledges and agrees that Employee shall be an \"At Will\" Employee and that Employee's employment may be terminated at any time by the Corporation, with or without cause. FEES FROM EMPLOYEE'S WORK The Corporation shall have exclusive authority to determine the fees, or a procedure for establishing the fees, to be charged to clients by the Corporation for services that are provided by the Employee. All sums paid to the Employee or the Corporation in the way of fees, in cash or in kind, or otherwise for services of the Employee, shall, except as otherwise specifically agreed by the Corporation, be and remain the property of the Corporation and shall be included in the Corporation's name in such checking account or accounts as the Corporation may from time to time designate. CLIENTS AND CLIENT RECORDS The Corporation shall have the authority to determine who will be accepted as clients of the Corporation, and the Employee recognizes that such clients accepted are clients of the Corporation and not the Employee. All client records and files of any type concerning clients of the Corporation shall belong to and remain the property of the Corporation, notwithstanding the subsequent termination of the employment. POLICIES AND PROCEDURES The Corporation shall have the authority to establish from time to time the policies and procedures to be followed by the Employee in performing services for the Corporation. This may include, but is not necessarily limited to, employment policies, computer use policies, Internet access policies, email policies, and all other policies, procedures, directives, and mandates established by the Corporation, whether or not in written form or formally adopted. Employee shall abide by the provisions of any contract entered into by the Corporation under which the Employee provides services. Employee shall comply with the terms and conditions of any and all contracts entered by the Corporation. TERMINATION Employee acknowledges and agrees that Employee is an \"at will\" employee of the Corporation. As such, no term of employment is created hereby and employee may be terminated at any time in the sole discretion of the Corporation, whether there exists any cause for termination or not. CREATIONS AND INVENTIONS Employee acknowledges and agrees that any and all work product of the Employee that is conceived or created during the Employee's employment with the Corporation is the exclusive property of the Corporation. This shall include any and all copyrights, trade secrets, confidential information, patents, trademarks, trade dress, ideas, concepts, plans, business plans, business concepts, techniques, inventions, drawings, artwork, logos, graphics, web pages, databases, software, programs, CGI's, plug ins, applications, brochures, inventions, marketing plans and concepts, and all other ideas and work product of the Employee. The Employee acknowledges and agrees that all creations shall be \"works made for hire\" as defined in the [ACT OR CODE]. Notwithstanding the fact that this material may be considered to be a work made for hire, Employee agrees, during Employee's employment and thereafter, which covenant shall survive any termination of the employment relationship, to execute any and all documents requested by the Corporation to confirm the Corporation's ownership and control of all such material, including but not limited to assignments of copyright, confirmations of work for hire status, waivers of proprietary rights, copyright application, and any other documents requested by Corporation. RESTRICTIVE COVENANTS","Employment Agreement_At Will Employee","7","https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_at-will-employee-D541.png","https://templates.business-in-a-box.com/imgs/250px/541.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#541.xml",{"title":140,"description":6},"employment agreement_at will employee",[142,144,147],{"label":18,"url":143},"human-resources",{"label":145,"url":146},"Hire an Employee","hire-employee",{"label":128,"url":129},"/template/employment-agreement_at-will-employee-D541",{"description":150,"descriptionCustom":6,"label":151,"pages":152,"size":153,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":158,"keywords":163,"url":164},"Employee Handbook Understanding employment at [YOUR COMPANY NAME] Revised on [DATE] Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Content Table of Content 2 Welcome to [YOUR COMPANY NAME]! 5 1. Organization Description 6 1.1 Introductory Statement 6 1.2 Customer Relations 6 1.3 Products and Services Provided 7 1.4 Facilities and Location(s) 7 1.5 The History of [YOUR COMPANY NAME] 7 1.6 Management Philosophy 7 1.7 Goals 8 2. The Employment 9 2.1 Nature of Employment 9 2.2 Employee Relations 9 2.3 Equal Employment Opportunity 10 2.4 Diversity 10 2.5 Business Ethics and Conduct 12 2.6 Personal Relationships in the Workplace 13 2.7 Conflicts of Interest 13 2.8 Outside Employment 14 2.9 Non-Disclosure 15 2.10 Disability Accommodation 16 2.11 Job Posting and Employee Referrals 17 2.12 Whistleblower Policy 18 2.13 Accident and First Aid 20 3. Employment Status and Records 21 3.1 Employment Categories 21 3.2 Access to Personnel Files 22 3.3 Personnel Data Changes 23 3.4 Probation Period 23 3.5 Employment Applications 24 3.6 Performance Evaluation 24 3.7 Job Descriptions 25 3.8 Salary Administration 25 3.9 Professional Development 26 4. Employee Benefit Programs 27 4.1 Employee Benefits 27 4.2 Vacation Benefits 27 4.3 Military Service Leave 29 4.4 Religious Observance 29 4.5 Holidays 29 4.6 Workers Insurance 30 4.7 Sick Leave Benefits 31 4.8 Bereavement Leave 32 4.9 Relocation Benefits 33 4.10 Educational Assistance 33 4.11 Health Insurance 34 4.12 Life Insurance 35 4.13 Long Term Disability 35 4.14 Marriage, Maternity and Parental Leave 36 5. Timekeeping / Payroll 40 5.1 Timekeeping 40 5.2 Paydays 40 5.3 Employment Termination 41 5.4 Administrative Pay Corrections 42 6. Work Conditions and Hours 43 6.1 Work Schedules 43 6.2 Absences 43 6.3 Jury Duty 45 6.4 Use of Phone and Mail Systems 45 6.5 Smoking 46 6.6 Meal Periods 46 6.7 Overtime 46 6.8 Use of Equipment 47 6.9 Telecommuting 47 6.10 Emergency Closing 48 6.11 Business Travel Expenses 49 6.12 Visitors in the Workplace 51 6.13 Computer and Email Usage 51 6.14 Internet Usage 52 6.15 Workplace Monitoring 54 6.16 Workplace Violence Prevention 55 7. Employee Conduct & Disciplinary Action 57 7.1 Employee Conduct and Work Rules 57 7.2 Sexual and Other Unlawful Harassment 58 7.3 Attendance and Punctuality 60 7.4 Personal Appearance 60 7.5 Return of Property 61 7.6 Resignation and Retirement 61 7.7 Security Inspections 62 7.8 Progressive Discipline 62 7.9 Problem Resolution 64 7.10 Workplace Etiquette 65 7.11 Suggestion Program 67 Acknowledgement of Receipt 68 Welcome to [YOUR COMPANY NAME]! On behalf of your colleagues, we welcome you to [YOUR COMPANY NAME] and wish you every success here. At [YOUR COMPANY NAME], we believe that each employee contributes directly to the growth and success of the company, and we hope you will take pride in being a member of our team. This handbook was developed to describe some of the expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should become familiar with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with [YOUR COMPANY NAME]. We believe that professional relationships are easier when all employees are aware of the culture and values of the organization. This guide will help you to better understand our vision for the future of our business and the challenges that are ahead. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! [PRESIDENT NAME] President & CEO 1. Organization Description 1.1 Introductory Statement This handbook is designed to acquaint you with [YOUR COMPANY NAME] and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by [YOUR COMPANY NAME] to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As [YOUR COMPANY NAME] continues to grow, the need may arise and [YOUR COMPANY NAME] reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. Employees will be notified of such changes to the handbook as they occur. 1.2 Customer Relations Customers are among our organization's most valuable assets. Every employee represents [YOUR COMPANY NAME] to our customers and the public. The way we do our jobs presents an image of our entire organization. Customers judge all of us by how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any customer or potential customer. Nothing is more important than being courteous, friendly, helpful, and prompt in the attention you give to customers. [YOUR COMPANY NAME] will provide customer relations and services training to all employees with extensive customer contact. Customers who wish to lodge specific comments or complaints should be directed to the [TITLE AND NAME OF THE PERSON RESPONSIBLE] for appropriate action. Our personal contact with the public, our manners on the telephone, and the communications we send to customers are a reflection not only of ourselves, but also of the professionalism of [YOUR COMPANY NAME]. Positive customer relations not only enhance the public's perception or image of [YOUR COMPANY NAME], but also pay off in greater customer loyalty and increased sales and profit. 1.3 Products and Services Provided You will find more information about our products and services by reading the [YOUR COMPANY NAME] Corporate Brochures. 1.4 Facilities and Location(s) Head Office: [ADDRESS] [CITY], [STATE] [ZIP/POSTAL CODE] [COUNTRY] 1.5 The History of [YOUR COMPANY NAME] [DESCRIBE THE HISTORY OF YOUR COMPANY HERE] 1.6 Management Philosophy [YOUR COMPANY NAME] management philosophy is based on responsibility and mutual respect. Our wishes are to maintain a work environment that fosters on personal and professional growth for all employees. Maintaining such an environment is the responsibility of every staff person. Because of their role, managers and supervisors have the additional responsibility to lead in a manner which fosters an environment of respect for each person. People who come to [YOUR COMPANY NAME] want to work here because we have created an environment that encourages creativity and achievement. [YOUR COMPANY NAME] aims to become a leader in [DESCRIBE YOUR COMPANY'S FIELD OF EXPERTISE]. The mainstay of our strategy will be to offer a level of client focus that is superior to that offered by our competitors. To help achieve this objective, [YOUR COMPANY NAME] seeks to attract highly motivated individuals that want to work as a team and share in the commitment, responsibility, risk taking, and discipline required to achieve our vision. Part of attracting these special individuals will be to build a culture that promotes both uniqueness and a bias for action. While we will be realistic in setting goals and expectations, [YOUR COMPANY NAME] will also be aggressive in reaching its objectives. This success will in turn enable [YOUR COMPANY NAME] to give its employees above average compensation and innovative benefits or rewards, key elements in helping us maintain our leadership position in the worldwide marketplace. 1.7 Goals [DESCRIBE YOUR COMPANY'S GOALS HERE] 2. The Employment 2","Employee Handbook","34",280,"https://templates.business-in-a-box.com/imgs/1000px/employee-handbook-D712.png","https://templates.business-in-a-box.com/imgs/250px/712.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#712.xml",{"title":6,"description":6},[159,160],{"label":18,"url":143},{"label":161,"url":162},"Company Policies","company-policies","employee handbook","/template/employee-handbook-D712",{"description":166,"descriptionCustom":6,"label":167,"pages":168,"size":9,"extension":169,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":175,"keywords":174,"url":180},"Indicates the future financial performance of a business for a period of twelve months.","Financial Projections_12 Months","1","xls","https://templates.business-in-a-box.com/imgs/1000px/financial-projections_12-months-D360.png","https://templates.business-in-a-box.com/imgs/250px/360.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#360.xml",{"title":174,"description":6},"financial projections_12 months",[176,177],{"label":96,"url":97},{"label":178,"url":179},"Financial Statements","financial-statements","/template/financial-projections_12-months-D360",false,{"seo":183,"reviewer":194,"legal_disclaimer":181,"quick_facts":198,"at_a_glance":200,"personas":204,"variants":229,"glossary":256,"sections":290,"how_to_fill":336,"common_mistakes":377,"faqs":402,"industries":430,"comparisons":455,"diy_vs_pro":469,"educational_modules":482,"related_template_ids_curated":485,"schema":495,"classification":497},{"meta_title":184,"meta_description":185,"primary_keyword":186,"secondary_keywords":187},"Profit Sharing Plan Template (Free Word)","Free profit sharing plan template for small businesses. Define eligibility, contribution formulas, vesting schedules, and distribution rules. Free Word and PDF download.","profit sharing plan template",[188,189,190,191,192,193],"profit sharing plan example","employee profit sharing plan","profit sharing plan word","profit sharing policy template","small business profit sharing plan","profit sharing plan free download",{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":199,"legal_review_recommended":181,"signature_required":181},"medium",{"what_it_is":201,"when_you_need_it":202,"whats_inside":203},"A Profit Sharing Plan is a formal policy document that defines how a company allocates a portion of its annual profits among eligible employees. This free Word download covers eligibility criteria, the contribution formula, vesting schedules, distribution timing, and administration rules — giving you a structured, editable starting point you can export as PDF and share with employees or advisors.\n","Use it when you want to tie employee compensation to company performance, retain key staff with a deferred incentive, or formalize an informal profit-sharing arrangement that has been running on verbal agreements.\n","Plan purpose and objectives, employee eligibility conditions, profit calculation methodology, contribution allocation formula, vesting schedule, distribution rules and timing, administrative responsibilities, and amendment and termination procedures.\n",[205,209,213,217,221,225],{"title":206,"use_case":207,"icon_asset_id":208},"Small business owners","Replacing informal profit-sharing handshakes with a documented policy","persona-small-business-owner",{"title":210,"use_case":211,"icon_asset_id":212},"HR managers","Standardizing incentive compensation across departments and locations","persona-hr-manager",{"title":214,"use_case":215,"icon_asset_id":216},"CFOs and finance directors","Formalizing the profit pool calculation and distribution schedule for audit purposes","persona-cfo",{"title":218,"use_case":219,"icon_asset_id":220},"Startup founders","Offering profit sharing as a retention tool when base salaries are below market","persona-startup-founder",{"title":222,"use_case":223,"icon_asset_id":224},"Operations directors","Aligning frontline team incentives with company-wide profitability targets","persona-operations-director",{"title":226,"use_case":227,"icon_asset_id":228},"Partnership and LLC members","Documenting agreed profit allocation rules among co-owners and key employees","persona-business-partner",[230,234,238,242,246,249,253],{"situation":231,"recommended_template":232,"slug":233},"Sharing profits with all full-time employees based on salary ratio","Profit Sharing Plan (Pro-Rata)","profit-sharing-plan-D483",{"situation":235,"recommended_template":236,"slug":237},"Distributing profits to a select group of senior managers","Executive Bonus Plan","bonus-plan-D13250",{"situation":239,"recommended_template":240,"slug":241},"Tying payouts to individual or team performance metrics","Employee Incentive Compensation Plan","equity-incentive-plan-D13224",{"situation":243,"recommended_template":244,"slug":245},"Formalizing equity-like participation for key employees","Phantom Stock Plan","phantom-stock-plan-D13748",{"situation":247,"recommended_template":248,"slug":233},"Linking profit distributions to a retirement savings vehicle","401(k) Profit Sharing Plan",{"situation":250,"recommended_template":251,"slug":252},"Distributing profits among business co-owners or partners","Partnership Agreement","partnership-agreement-D163",{"situation":254,"recommended_template":74,"slug":255},"Documenting revenue sharing with a sales team or channel partner","revenue-sharing-agreement-D13477",[257,260,263,266,269,272,275,278,281,284,287],{"term":258,"definition":259},"Profit Pool","The total dollar amount set aside from annual net profits for distribution to eligible employees under the plan.",{"term":261,"definition":262},"Allocation Formula","The mathematical method used to divide the profit pool among participants — commonly pro-rata by salary, equal shares, or points-based.",{"term":264,"definition":265},"Vesting Schedule","The timeline over which an employee earns the right to keep their profit-sharing allocation, typically structured as cliff or graded vesting.",{"term":267,"definition":268},"Cliff Vesting","A vesting structure where the employee gains full entitlement to their allocation only after a single defined period — for example, 100% vested after three years of service.",{"term":270,"definition":271},"Graded Vesting","A vesting structure where entitlement accrues incrementally — for example, 20% per year over five years.",{"term":273,"definition":274},"Plan Year","The 12-month accounting period used to measure profits and calculate contributions — usually the calendar year or the company's fiscal year.",{"term":276,"definition":277},"Eligible Employee","An employee who meets the plan's minimum requirements — such as tenure, hours worked, and active employment status — to participate in a given plan year.",{"term":279,"definition":280},"Discretionary Contribution","A profit-sharing contribution whose amount is determined each year by the employer rather than fixed by a formula in advance.",{"term":282,"definition":283},"Net Profit","Revenue minus all operating expenses, taxes, and interest — the base figure from which the profit pool is calculated.",{"term":285,"definition":286},"Distribution Date","The specific date or schedule on which vested profit-sharing amounts are paid out to eligible participants.",{"term":288,"definition":289},"Plan Administrator","The individual or committee responsible for calculating allocations, maintaining records, communicating with participants, and managing distributions.",[291,296,301,306,311,316,321,326,331],{"name":292,"plain_english":293,"sample_language":294,"common_mistake":295},"Plan purpose and objectives","States why the plan exists — to share financial success with employees, improve retention, and align individual effort with company profitability.","[COMPANY NAME] establishes this Profit Sharing Plan to reward eligible employees for their contribution to company profitability, support long-term retention, and align individual performance with organizational financial goals.","Writing a vague purpose statement that could apply to any incentive program. A specific purpose — tied to the company's actual strategic goals — makes the plan easier to communicate and defend if employees later dispute eligibility decisions.",{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Eligibility criteria","Defines which employees qualify to participate, including minimum tenure, minimum hours worked per year, and employment status on the distribution date.","Employees who have completed [X] months of continuous service, worked at least [1,000] hours during the plan year, and remain actively employed on [DISTRIBUTION DATE] are eligible to participate.","Omitting an 'actively employed on distribution date' requirement. Without it, employees who resign before the payout date may still have a legal claim to their allocation under some employment standards.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Profit calculation methodology","Specifies which profit figure is used as the basis for the pool — gross profit, operating profit, or net profit — and any adjustments made before the percentage is applied.","The profit pool is calculated as [X]% of the Company's audited net profit for the plan year, defined as revenue minus operating expenses, interest, and income taxes. One-time charges approved by the Board are excluded from the calculation.","Using an undefined or ambiguous profit figure. Employees and their advisors will scrutinize the number — linking the calculation to audited financials and listing specific exclusions prevents disputes.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Contribution allocation formula","Explains how the profit pool is divided among participants — most commonly pro-rata by base salary, equal shares, or a points-based system that weights tenure or role.","Each eligible participant's share equals their annual base salary divided by the total base salaries of all eligible participants, multiplied by the profit pool. Example: Participant salary $[50,000] ÷ Total eligible salaries $[500,000] × Pool $[100,000] = $[10,000].","Choosing an allocation formula without modeling its output across different employee populations. A pro-rata-by-salary formula concentrates the payout at the top of the pay scale, which may undermine the retention goal for junior employees.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Vesting schedule","Sets out how quickly employees earn a non-forfeitable right to their allocation — either immediately, on a cliff schedule, or graded over multiple years.","Allocations vest on the following graded schedule: 0% after Year 1, 33% after Year 2, 66% after Year 3, 100% after Year 4. Allocations vest immediately upon death, disability, or a change of control.","Omitting accelerated vesting triggers for change of control or termination without cause. Employees who leave in a merger or acquisition and lose unvested allocations create goodwill damage and sometimes legal claims.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Distribution rules and timing","States when and how vested amounts are paid — cash lump sum, installments, or deferral into a retirement account — and the specific distribution date or window.","Vested allocations will be distributed in cash within [60] days of the close of the plan year, following completion of the audited financial statements. Participants may elect to defer distributions into the Company's [401(k) / RRSP] plan, subject to applicable contribution limits.","Promising a specific distribution date before the audit is complete. Linking the payment date to audit completion rather than a fixed calendar date prevents the company from being in breach if financial close takes longer than expected.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Forfeiture and clawback provisions","Defines what happens to unvested allocations when an employee leaves, is terminated for cause, or engages in conduct harmful to the company.","Unvested allocations are forfeited upon voluntary resignation or termination for Cause and reallocated to the profit pool for the following plan year. The Company reserves the right to clawback vested distributions within [24] months if the underlying financial statements are materially restated.","No clawback clause. If profits are later restated downward due to accounting errors, the company has no recourse to recover overpaid distributions without explicit clawback language.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Plan administration","Identifies the plan administrator, describes their responsibilities (recordkeeping, calculations, participant communications), and sets the timeline for annual plan statements.","The Plan Administrator is [TITLE / NAME / COMMITTEE]. The Administrator is responsible for calculating annual allocations, maintaining individual participant accounts, distributing annual statements within [90] days of plan year end, and responding to participant inquiries within [10] business days.","Assigning administration to 'the Company' without naming a specific role or committee. Ambiguous ownership leads to delays in statements, calculation errors, and employee distrust in the plan.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Amendment and termination","Reserves the company's right to modify or discontinue the plan with reasonable notice and specifies how participants are notified of material changes.","The Company reserves the right to amend or terminate this Plan at any time upon [30] days' written notice to participants. No amendment shall reduce a participant's vested allocation as of the amendment date. Upon termination, all vested amounts shall be distributed within [90] days.","No amendment clause at all. Without one, employees may argue that the plan creates an implied contractual entitlement that cannot be changed — courts in several jurisdictions have found in employees' favor on this basis.",[337,342,347,352,357,362,367,372],{"step":338,"title":339,"description":340,"tip":341},1,"Define the plan's purpose in one or two sentences","Write a concise purpose statement tying the plan directly to a specific business goal — retention, productivity, or shared ownership culture. Avoid generic language that could apply to any incentive plan.","Involve at least one senior manager outside HR in drafting the purpose statement — their buy-in makes implementation much smoother.",{"step":343,"title":344,"description":345,"tip":346},2,"Set eligibility requirements","Decide on minimum tenure (commonly 6 or 12 months), minimum hours worked (commonly 1,000 per year), and whether part-time or fixed-term employees qualify. State explicitly that participants must be actively employed on the distribution date.","Model your eligibility criteria against your actual workforce before finalizing — rules that exclude 80% of employees signal an executive bonus plan, not a profit-sharing plan.",{"step":348,"title":349,"description":350,"tip":351},3,"Choose and document the profit calculation base","Select a profit definition — typically audited net profit — and list any specific exclusions such as one-time restructuring charges, acquisition costs, or extraordinary items approved by the board.","Link the profit figure to a line in your audited financial statements by name to eliminate ambiguity and make administration simpler each year.",{"step":353,"title":354,"description":355,"tip":356},4,"Select and model the allocation formula","Run the formula against your current employee population at two or three different profit pool sizes. Check whether the resulting individual payouts are meaningful enough to influence behavior — amounts under $500 per person rarely move the needle.","A pro-rata-by-salary formula is the easiest to defend and administer; a points-based formula better rewards tenure and performance but requires more annual maintenance.",{"step":358,"title":359,"description":360,"tip":361},5,"Set the vesting schedule","Choose between immediate vesting (simple to communicate, no retention effect), cliff vesting (strong retention cliff, but employees who leave just before the cliff feel penalized), or graded vesting (balanced retention effect). Add accelerated vesting triggers for change of control and termination without cause.","A four-year graded schedule (0/33/66/100%) is the most commonly accepted structure for private company profit-sharing plans — long enough to retain, short enough to be credible.",{"step":363,"title":364,"description":365,"tip":366},6,"Define distribution timing tied to audit completion","Set the distribution window as a number of days after the audited financial statements are finalized — typically 45 to 90 days. Specify the payment method (cash, check, direct deposit, or 401(k) deferral election).","Give participants a 30-day deferral election window before the distribution date — it costs nothing and is a meaningful benefit for higher earners managing tax exposure.",{"step":368,"title":369,"description":370,"tip":371},7,"Name the plan administrator and document their responsibilities","Assign a specific role (e.g., VP of Finance or the HR Committee) and list their annual tasks: calculate allocations, issue participant statements, respond to inquiries, and maintain records for at least seven years.","Build a simple annual administration calendar — four or five dated tasks tied to audit close — and attach it as an internal exhibit. It prevents the plan from being forgotten between plan years.",{"step":373,"title":374,"description":375,"tip":376},8,"Add amendment, termination, and clawback language","Reserve the right to amend or terminate with at least 30 days' notice. State that no amendment reduces already-vested amounts. Include a clawback provision covering financial restatements within 24 months of distribution.","Have your CFO or outside accountant review the clawback clause — the window and trigger should match any existing executive compensation clawback policy for consistency.",[378,382,386,390,394,398],{"mistake":379,"why_it_matters":380,"fix":381},"Omitting the 'actively employed on distribution date' requirement","Without this clause, employees who resign two weeks before payout may have a legal basis to claim their full-year allocation, especially in jurisdictions with strong wage-protection statutes.","Add explicit language stating that participants must be actively employed on the distribution date to receive any allocation, and state this condition clearly in the eligibility section.",{"mistake":383,"why_it_matters":384,"fix":385},"Using an undefined or informal profit figure","Calculating the pool from 'company profits' without defining which line item creates disputes every year — employees naturally favor the highest profit figure; management naturally favors the lowest.","Tie the calculation to a specific line in the audited financial statements and list any pre-approved exclusions in writing before the plan year begins.",{"mistake":387,"why_it_matters":388,"fix":389},"No amendment or termination clause","Courts in several jurisdictions have found that an undocumented profit-sharing arrangement, consistently paid over multiple years, becomes an implied contractual entitlement that the employer cannot unilaterally remove.","Include an explicit amendment and termination clause reserving the company's right to modify or end the plan with 30 days' notice, and have employees acknowledge it in writing at enrollment.",{"mistake":391,"why_it_matters":392,"fix":393},"Setting a distribution date before the audit is complete","Promising payment by March 31 when audits routinely close in April puts the company in technical breach of its own plan, creating legal exposure and employee distrust.","Define the distribution date as a number of days after audit completion rather than a fixed calendar date — for example, within 60 days of receipt of audited financial statements.",{"mistake":395,"why_it_matters":396,"fix":397},"No clawback provision for financial restatements","If the company's financials are restated downward after profit-sharing distributions have been made, the company has no recourse to recover the overpayment without explicit clawback language.","Add a clawback clause that allows recovery of distributions made in excess of what would have been paid under restated financials, within a defined window of 24 months.",{"mistake":399,"why_it_matters":400,"fix":401},"Assigning plan administration to 'the Company' with no named owner","Ambiguous administrative ownership results in late statements, miscalculated allocations, and employees who never receive updates — all of which erode trust in the plan faster than a small payout would.","Name a specific title or committee as plan administrator and attach a one-page annual calendar listing each administrative task with a deadline tied to the audit close date.",[403,406,409,412,415,418,421,424,427],{"question":404,"answer":405},"What is a profit sharing plan?","A profit sharing plan is a formal policy document that defines how a company allocates a percentage of its annual profits among eligible employees. It specifies who qualifies, how the pool is calculated, how it is divided, when it vests, and when it is paid out. Unlike a bonus plan tied to individual targets, profit sharing distributes a portion of the company's overall financial result — linking every participant's payout to collective performance.\n",{"question":407,"answer":408},"How is the profit sharing pool typically calculated?","Most plans apply a fixed percentage — commonly 5% to 15% — to audited net profit for the plan year. The specific profit definition (gross, operating, or net) and any exclusions for one-time charges should be stated explicitly in the plan document. Some plans set a minimum profitability threshold below which no pool is funded, protecting the company in low-margin years.\n",{"question":410,"answer":411},"What is the difference between a profit sharing plan and a bonus plan?","A bonus plan ties payouts to individual or team performance targets — revenue quotas, project milestones, or manager discretion. A profit sharing plan distributes a share of the company's collective profit regardless of individual performance. Profit sharing is broader and less discriminatory; bonus plans are more targeted. Many companies use both: a profit-sharing plan for all eligible employees and a separate bonus plan for high performers or specific roles.\n",{"question":413,"answer":414},"Do profit sharing plans require vesting?","Vesting is not legally required for a basic cash profit sharing plan in most jurisdictions, but it is strongly recommended for retention purposes. Without a vesting schedule, there is no financial incentive for employees to stay beyond the current plan year. A three- to four-year graded vesting schedule is the most commonly used structure for private company plans. Plans linked to a 401(k) retirement vehicle must follow IRS vesting rules under ERISA in the United States.\n",{"question":416,"answer":417},"Can a small business implement a profit sharing plan without a 401(k)?","Yes. A standalone cash profit sharing plan — where profits are distributed directly as cash compensation rather than into a retirement account — does not require a 401(k) or any qualified retirement plan structure. It is simply a documented compensation policy. Plans that use a 401(k) as the distribution vehicle carry additional IRS compliance requirements, including annual nondiscrimination testing and Form 5500 filing.\n",{"question":419,"answer":420},"How often should a profit sharing plan be updated?","Review the plan annually before the new plan year begins. Key items to revisit include the profit pool percentage (adjust if margins have changed significantly), eligibility criteria (add or remove employee categories as the workforce evolves), and allocation formula (verify it still produces meaningful individual payouts). Document each review in writing and notify participants of any material changes at least 30 days before the plan year starts.\n",{"question":422,"answer":423},"What happens to unvested allocations when an employee leaves?","Unvested allocations are typically forfeited upon resignation or termination and reallocated to the following year's profit pool or returned to company earnings — the plan document should specify which. The exception is accelerated vesting on termination without cause, change of control, death, or permanent disability, which should be explicitly addressed in the vesting section to avoid disputes.\n",{"question":425,"answer":426},"Is a profit sharing plan the same as equity or ownership?","No. A profit sharing plan gives employees a cash payment based on profits but does not grant any ownership stake, voting rights, or claim on company assets. Equity (stock, options, or phantom equity) conveys an ownership interest that appreciates with company value. Profit sharing is an operational compensation tool; equity is a structural ownership instrument. For key employees who want economic participation without actual ownership, a phantom stock or synthetic equity plan is the closer alternative.\n",{"question":428,"answer":429},"Do I need a lawyer to create a profit sharing plan?","For a straightforward cash profit sharing plan for a small business, a well-structured template is typically sufficient. Consider engaging an employment lawyer or compensation consultant when the plan covers more than 25 employees, when distributions will be deferred into a retirement account subject to ERISA, when operating across multiple jurisdictions with different wage-protection laws, or when the plan is a material component of executive compensation for senior hires.\n",[431,435,439,443,447,451],{"industry":432,"icon_asset_id":433,"specifics":434},"Professional services","industry-professional-services","Law firms, accounting practices, and consulting firms commonly use a points-based allocation formula that weights billable hours, client origination, and years of partnership — not just base salary.",{"industry":436,"icon_asset_id":437,"specifics":438},"Retail and hospitality","industry-retail","Location-level profit sharing pools align store or restaurant teams with unit-level margin performance, making the plan directly legible to frontline staff who control daily costs.",{"industry":440,"icon_asset_id":441,"specifics":442},"Manufacturing","industry-manufacturing","Plans often exclude capital expenditure and depreciation from the profit base to avoid penalizing employees for investment decisions made above their level.",{"industry":444,"icon_asset_id":445,"specifics":446},"Technology and SaaS","industry-saas","Early-stage tech companies use cash profit sharing as a retention bridge when equity dilution is a concern, typically with a one-year cliff and three-year graded vesting.",{"industry":448,"icon_asset_id":449,"specifics":450},"Construction and trades","industry-construction","Project-based profit sharing pools tied to individual job margins — rather than total company profit — give field supervisors a direct line of sight between their cost decisions and their payout.",{"industry":452,"icon_asset_id":453,"specifics":454},"Healthcare","industry-healthtech","Medical practices and clinics often exclude malpractice insurance premiums and settlement costs from the net profit base to keep the pool stable and the plan credible year over year.",[456,460,463,465],{"vs":457,"vs_template_id":458,"summary":459},"Employee Bonus Plan","incentive-compensation-plan-D12731","A bonus plan ties individual payouts to specific performance targets — sales quotas, project milestones, or manager ratings. A profit sharing plan distributes a share of collective company profit regardless of individual metrics. Bonus plans reward individual performance; profit sharing plans reward collective results. Many businesses run both in parallel.",{"vs":74,"vs_template_id":461,"summary":462},"revenue-sharing-agreement-D13635","A revenue sharing agreement distributes a percentage of gross revenue — before expenses — to a partner, investor, or employee group. A profit sharing plan distributes net profit after all costs. Revenue sharing creates a payout even in unprofitable periods; profit sharing only funds a pool when the company is profitable. Revenue sharing is most common in partnership and channel arrangements.",{"vs":251,"vs_template_id":252,"summary":464},"A partnership agreement governs the profit and loss allocation among business co-owners as a matter of legal ownership structure. A profit sharing plan allocates a portion of profits to employees who have no ownership stake. Partnership agreements are binding legal documents governing equity relationships; profit sharing plans are compensation policies that can be amended or terminated by the company.",{"vs":466,"vs_template_id":467,"summary":468},"Employee Stock Option Plan","stock-option-plan-D13621","A stock option plan gives employees the right to buy company equity at a fixed price, creating long-term wealth tied to company valuation. A profit sharing plan provides cash based on annual profitability with no ownership stake or upside beyond the current year's pool. Options are a structural ownership tool; profit sharing is an annual cash compensation tool. Early-stage companies often use both to balance immediate cash incentives with long-term ownership alignment.",{"use_template":470,"template_plus_review":474,"custom_drafted":478},{"best_for":471,"cost":472,"time":473},"Small businesses and startups implementing a straightforward cash profit sharing policy for fewer than 25 employees","Free","2–4 hours",{"best_for":475,"cost":476,"time":477},"Companies with 25 or more employees, multi-location operations, or plans that include a 401(k) deferral election","$500–$1,500 for an HR consultant or employment lawyer review","3–5 business days",{"best_for":479,"cost":480,"time":481},"Larger organizations, executives with complex deferred compensation arrangements, or plans subject to ERISA qualified plan rules","$2,000–$8,000 for a compensation attorney or benefits specialist","2–6 weeks",[483,484],"profit-sharing-vs-bonus-plans-explained","vesting-schedules-cliff-vs-graded",[241,255,252,486,487,488,489,490,491,492,493,494],"stock-option-plan-D13284","employment-agreement_at-will-employee-D541","employee-handbook-D712","financial-projections_12-months-D360","non-disclosure-agreement-nda-D12692","independent-contractor-agreement-D160","job-offer-letter-long-D12769","strategic-planning-template-D13857","small-business-expense-report-D13396",{"emit_how_to":496,"emit_defined_term":496},true,{"primary_folder":143,"secondary_folder":498,"document_type":499,"industry":500,"business_stage":501,"tags":502,"confidence":507},"compensation-and-payroll","policy","general","all-stages",[503,504,505,506],"payroll","profit-sharing","compensation","employee-benefits",0.92,"\u003Ch2>What is a Profit Sharing Plan?\u003C/h2>\n\u003Cp>A \u003Cstrong>Profit Sharing Plan\u003C/strong> is a formal policy document that defines the rules under which a company distributes a portion of its annual profits to eligible employees. It specifies who qualifies to participate, how the profit pool is calculated from audited financial results, how that pool is divided among participants, when and how allocations vest, and when cash distributions are made. Unlike a discretionary bonus paid at management's sole option, a documented profit sharing plan creates transparent, consistent rules that every participant can understand and anticipate — making it a credible retention and motivation tool rather than a one-off reward.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating a profit sharing arrangement without a written plan exposes the business to predictable and avoidable problems. Employees who have received payouts for several consecutive years may assert a legal entitlement to continue receiving them, even if profits decline — courts in multiple jurisdictions have upheld this argument when no written plan documents the company's right to reduce or discontinue contributions. Disputes over how profits are calculated, who qualifies, and when payments are due are nearly impossible to resolve fairly without documented rules. A formal plan also protects against the reputational damage of inconsistent treatment — employees talk, and perceived favoritism in profit distributions destroys the motivational value the plan was designed to create. This template gives you the structure to implement profit sharing correctly from the start, with clear language your team, your accountant, and your legal counsel can all work from.\u003C/p>\n",1781186018055]