Profit Sharing Agreement Template – Canada

The Profit Sharing Agreement Template – Canada is offered in multiple formats, including PDF, Word, and Google Docs. Each version is customizable and ready for printing, so you can easily adapt it to your specific requirements.


Sample

Profit Sharing Agreement Template – Canada

Editable – Printable



1. Parties Involved



2. Purpose of the Agreement

3. Profit Sharing Structure

4. Responsibilities of Each Party

5. Payment Schedule

6. Duration of Agreement

7. Termination Conditions

8. Confidentiality Obligations

9. Dispute Resolution

10. Governing Law

11. Signatures and Acceptance




PDF


WORD

Examples


Profit Sharing Agreement Template – Canada (1)
Between:
[Partner 1’s Name]
[Partner 1’s Address]
[Partner 1’s Phone]
[Partner 1’s Email]
And:
[Partner 2’s Name]
[Partner 2’s Address]
[Partner 2’s Phone]
[Partner 2’s Email]
Introduction:
This Profit Sharing Agreement (“Agreement”) outlines the terms under which profits from [specific business or project] will be shared between [Partner 1’s Name] and [Partner 2’s Name], effective from [Start Date].
Clause 1: Profit Sharing Ratio
Profits from the operation of [business name] will be shared as follows: [percentage]% to [Partner 1’s Name] and [percentage]% to [Partner 2’s Name].
Clause 2: Definition of Profits
For the purposes of this Agreement, “Profits” shall mean the total revenues generated minus all applicable costs and expenses directly associated with the operation of the business.
Clause 3: Distribution of Profits
Profits will be calculated and distributed quarterly, within [number] days after the end of each quarter.
Clause 4: Responsibilities of Each Partner
Each partner shall contribute to the business as follows:
[Partner 1’s Name]: [specific duties]
[Partner 2’s Name]: [specific duties].
Clause 5: Decision Making
Decisions regarding the business will be made jointly. In case of a disagreement, a majority vote will determine the outcome.
Clause 6: Confidentiality
Both partners agree to keep confidential any non-public information regarding the business and its operations, and not to disclose it to any third parties without prior written consent.
Clause 7: Termination of Agreement
This Agreement may be terminated by either party with a written notice of [Notice Period]. Upon termination, the remaining profits will be distributed according to the agreed sharing ratio.
Clause 8: Governing Law
This Agreement shall be governed by the laws of Canada.
Signed in [City], [Date].
Sincerely,
[Partner 1’s Signature]
[Partner 1’s Name]
[Partner 2’s Signature]
[Partner 2’s Name]
Profit Sharing Agreement Template – Canada (2)
Between:
[Partner 1’s Name]
[Partner 1’s Address]
[Partner 1’s Phone]
[Partner 1’s Email]
And:
[Partner 2’s Name]
[Partner 2’s Address]
[Partner 2’s Phone]
[Partner 2’s Email]
Introduction:
This Agreement establishes the terms of profit sharing for [business name], commencing on [Start Date].
Clause 1: Profit Allocation
The profits generated from [business activities] will be allocated [specific percentage]% to [Partner 1’s Name] and [specific percentage]% to [Partner 2’s Name].
Clause 2: Calculating Profits
“Profits” shall include all gross revenue derived from [business activities] less any costs, direct expenses, and taxes incurred.
Clause 3: Profit Distribution Schedule
Profits will be distributed on a [monthly/quarterly] basis, with distributions processed within [number] days following the relevant period.
Clause 4: Partner Contributions
Each partner shall commit the following resources and efforts:
[Partner 1’s Name]: [specific contributions]
[Partner 2’s Name]: [specific contributions].
Clause 5: Joint Decisions
All major decisions related to the business will require mutual consent. If consensus cannot be reached, an external mediator may be sought.
Clause 6: Non-Disclosure Agreement
Each partner agrees to maintain confidentiality about all sensitive business practices and strategies and to avoid sharing this information with anyone outside the partnership unless agreed upon in writing.
Clause 7: Right to Terminate
This Agreement may be terminated at any time by either partner with [Notice Period] written notice. Upon termination, partners will settle accounts and divide remaining profits accordingly.
Clause 8: Applicable Law
This Agreement will abide by the laws of Canada.
Signed in [City], [Date].
Sincerely,
[Partner 1’s Signature]
[Partner 1’s Name]
[Partner 2’s Signature]
[Partner 2’s Name]

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Profit Sharing Agreement Template - Canada