Profit / Revenue Sharing Agreement between Employer and Employee

This is a profit / revenue sharing agreement between an employer and one employee.

This was written to enable a small business to offload a specific business operation to a specific employee.

The goal is to create an incentive for them to grow the business while leveraging the company assets and structure, without becoming an equity partner or collecting investment.

Profit / Revenue Sharing Agreement between Employer and Employee Name

This agreement defines the distribution of profits and revenue payouts between an employer and employee for specific business operations. The goal is to create an incentive for the employee to grow the business while leveraging the company assets and structure, without becoming an equity partner or collecting investment.

IT IS MUTUALLY AGREED upon that Employer, the EMPLOYER, and Employee Name, the EMPLOYEE, hereby acknowledge the following schedule for financial distribution of funds to represent a profit and revenue sharing agreement.

1. QUALIFYING MEMBER - A Qualifying Member is a person or people authorized by the Officer's of the EMPLOYER to be eligible in payouts, typically the person serving as Treasurer of the EMPLOYER.

2. PAYOUTS - Payouts will be made on the last day of each and every month for work completed within that qualifying month. Payouts are not valid for sessions of said OPERATIONS when they employee is not actively engage, either in providing the service / sales or ensuring their successful completion.

3. TERM - All financial payouts are available for viewing, but under no circumstances, unless authorized by the President of the EMPLOYER, can any payment be written or paid to by any member of the EMPLOYER other than the QUALIFYING MEMBER. The QUALIFYING MEMBER must have authorization from any company officer for EMPLOYEE payment.

4. PROFIT SHARING - Any and all profits after expenses, specific to the business operations defined, are eligible for profit sharing. Profits will be calculated as sales for that period minus expenses for that period, leveraging GAAP, Generally Accepted Accounting Principles.

5. METHOD - Below is the standard responsibility of the EMPLOYER for payouts and profit sharing in order of financial distribution based on per project, job, shift - OPERATIONS. No payouts will be given until the balance of said operation is paid in full to the EMPLOYER.

6. MODIFICATIONS - This instrument may not be changed orally. Any modifications of this agreement must be by written supplemental agreement executed by all parties thereto.

7. TERMINATION - This is terminated upon the termination of the employee or end of the employee's involvement in said OPERATIONS.


OPERATION
(service, sales, revenue stream)
AMOUNT
(% of profit after expenses)
OPERATION 1 OPERATION 1 % profit after expenses
OPERATION 2 OPERATION 2 % profit after expenses
OPERATION 3 OPERATION 3 % profit after expenses
OPERATION 4 OPERATION 4 % profit after expenses
OPERATION 5 OPERATION 5 % profit after expenses
TOTAL PAYOUT PER OPERATION is EQUAL or LESS THAN 100%

IN WITNESS WHEREOF, the parties have hereunto signed this partnership agreement on Today's Date.

EMPLOYEE Signature: Employee Name

QUALIFYING MEMBER Signature: QUALIFYING MEMBER
(at time of signing)

Public Document

Number of times Signed
17
Number of Saves
11
Number of Downloads
4.6k
Number of Views
53.2k

This is version 3, from 4 years ago.

Suggest changes by making a copy of this document. Learn more.

Create Branch