Finance & Investment
Profit Participation Agreement
Agreement granting a participant a share of profits from a business venture or project. Two signers (company and participant).
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# Profit Participation Agreement **Effective Date:** ___________ This Profit Participation Agreement ("Agreement") is entered into by and between: **Company:** ___________ ("Company") **Participant:** ___________ ("Participant") ## 1. Recitals The Company operates or intends to operate the following business venture: **Venture/Project:** ___________ ___________ The Company desires to grant the Participant a right to participate in the profits of the venture, and the Participant desires to accept such participation, subject to the terms of this Agreement. ## 2. Profit Participation Right The Company hereby grants the Participant a profit participation right equal to ___________% of Net Profits (as defined below). **Type of Participation:** ___________ This profit participation right is ___________ and does not constitute an equity interest, ownership stake, or partnership interest in the Company. ## 3. Definition of Net Profits "Net Profits" shall mean the gross revenue of the venture, less: (a) Cost of goods sold or direct costs of service delivery; (b) Operating expenses directly attributable to the venture; (c) ___________; ___________
Fields (29)
effective date
date · required
company name
text · required
participant name
text · required
venture name
text · required
venture description
textarea · required
participation percentage
text · required
participation type
select · required
transferability
select · required
overhead allocation
select · required
overhead amount
text
reserve cap
select · required
accounting standard
select · required
distribution frequency
select · required
distribution deadline
select · required
minimum distribution
text · required
financial review
select · required
audit notice
select · required
participant role
select · required
role description
textarea
capital contribution
select · required
contribution amount
text
tax treatment
select · required
non compete
select · required
term
select · required
termination notice
select · required
governing state
select · required
company signer name
text · required
company signer title
text · required
participant signer name
text · required
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