Profit Sharing Agreement by EasyLegalDocs
This Profit Sharing Agreement outlines the terms under which a Representative will receive a percentage of profits generated from their direct efforts for a Company. It details profit allocation, roles and responsibilities, confidentiality, and procedures for dispute resolution and termination. The agreement establishes an independent contractor relationship between the parties.
PROFIT SHARING AGREEMENT
This Profit Sharing Agreement (hereinafter referred to as the "Agreement") is made and effective [EFFECTIVE DATE],
BY AND BETWEEN: | [COMPANY NAME], with an address of [COMPANY ADDRESS], hereinafter referred to as the “Company.” |
AND: | [REPRESENTATIVE NAME], with an address of [REPRESENTATIVE ADDRESS], hereinafter referred to as the “Representative,” collectively referred to as the “Parties.” |
Duration
This Agreement shall be effective from the date of execution and continue until ____________.
Profit Allocation
Profit Sharing: The Representative is entitled to receive ____________% of profits generated from the products. The said profits are to be derived directly from the Representative's efforts.
Direct Result: For the purposes of this Agreement, a "direct result" refers to any customer engagement that culminates in a completed sale.
Profit Calculation: Profits shall be computed as follows: __________________________________________________________________________________
(Specify the formula or method for calculating the Representative's share of the profits, including any deductions, expenses, or other adjustments that will be made. E.g., "Total Revenue - Operational Costs = Profit; Representative's Share = Profit x ___________%")
Roles and Responsibilities
The Representative shall conduct research on potential customers, complete any necessary paperwork, and undertake any other tasks as may be assigned or unassigned by the Company.
Relationship Status
Both Parties agree that their relationship is that of independent contractors.
Confidentiality
The Representative commits to maintaining confidentiality regarding all information identified or acknowledged as confidential by the Company, both during the term of this Agreement and for a period of ____________ years thereafter.
Termination Effects
Upon termination:
The Representative will continue to accrue profit shares from ongoing sales directly attributable to their efforts.
The Representative will direct any inquiries or questions concerning the product to the Company.
The Representative will return or destroy any proprietary information belonging to the Company.
Amendments
Any modifications to this Agreement must be in writing and bear the signatures of both Parties for the amendments to be enforceable.
Severability
Should any provision of this Agreement be declared void or unenforceable by a court of competent jurisdiction, the remainder of the Agreement will continue in full force and effect.
Dispute Resolution
All disputes arising out of this Agreement shall be resolved through ____________ (Arbitration/Mediation/Negotiation) and will be subject to the laws of ____________.
Governing Law
This Agreement is governed by the laws of ____________.
Entire Agreement
This document embodies the entire Agreement between the Parties and supersedes all previous agreements, understandings, and arrangements, whether oral or written, related to the subject matter herein.
Signatures
By affixing their signatures below, the Parties hereby consent to all terms and conditions set forth in this Agreement:
COMPANY | REPRESENTATIVE |
_____________________________Signed (signature) | _____________________________Signed (signature) |
_____________________________Print Name | _____________________________Print Name |
_____________________________Date | _____________________________Date |
5.0 out of 5 on Google
Read reviewsAs seen in
Frequently asked questions
A template isn't binding on its own - like any contract, it becomes binding once it's properly completed and signed. Templates in our curated library are professionally drafted for US or UK law; review any template before you sign it.
Yes. Chat with GitLaw to edit any section, or make changes directly in the editor.
Yes, read about team plans here.
Describe what you need in the chat and GitLaw will draft it for you.
Templates in our curated library are professionally drafted for US or UK law. The wider library comes from the GitLaw community and public sources - a solid starting point, but check any template fits your situation before you rely on it.
Mostly US and UK law. Some templates use general commercial terms that work across jurisdictions, and many note which law they're written for.
It depends on the situation. Templates work well for routine business agreements. For anything involving significant money, complex IP, employment, or areas you're unsure about, it's worth getting professional advice before you sign. GitLaw provides templates and tools, not legal advice.
Open any template in GitLaw and describe the change you want in the chat — 'make clause 4 mutual' or 'add a 30-day notice period', for example. GitLaw drafts the revised language and shows it as a suggested edit. You accept, reject, or keep editing from there.
Yes. Upload a Word, PDF, or Markdown file and GitLaw will open it in the editor. You can review, edit, or chat with GitLaw about it the same way you would with any template from the library.
Trusted by thousands of businesses
From template to signed, in one place
Every template opens in an editor with an AI agent alongside it.
Open
Pick a template and open it. Nothing to download, and no credit card to start.
Free to open
Edit with AI
Describe your situation in chat and the agent adapts the wording, clause by clause.
Tracked changes you can review
Send and sign
Share it for negotiation, then collect signatures without leaving GitLaw.
eSign included
Built for your legal work, with practicing lawyers
Trained on 5.5K+ clauses and specialist areas of law. Built with a standards committee of independent lawyers.
As seen in
Start free
No sales calls, no credit card. Just chat with GitLaw.
GitLaw provides templates and tools, not legal advice. Templates are a starting point, not a substitute for advice on your situation - for anything significant, speak to a qualified lawyer.