🪙 Profit sharing agreement

About this category

A profit sharing agreement is a contract between an employer and an employee in which the employer agrees to share profits with the employee. The agreement may specify how the profits will be shared, how often the payments will be made, and how the payments will be calculated.

🪙 Profit sharing agreement

templates

Profit Share Agreement (Property)

A profit share provision is a type of arrangement that may be used with a real estate finance facility agreement. Under this arrangement, the borrower agrees to pay an exit fee or profit share to the lender if certain events occur. The fee is calculated by deducting the acquisition and development costs relating to a property from its sale proceeds or latest valuation.

What to watch out for

The borrower may have to pay an exit fee or profit share to the lender if certain events occur

The fee is calculated by deducting the acquisition and development costs relating to a property from its sale proceeds or latest valuation

This type of arrangement may also be referred to as a profit participation

Publisher

Genie AI

Jurisdiction

England and Wales

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Associated business activities

Exit fee or profit share

1. An exit fee or profit share may be used when there is a concern that one party will attempt to unfairly benefit from the agreement. 2. An exit fee or profit share may also be used to ensure that both parties are treated fairly in the event that the agreement is terminated. 3. Finally, an exit fee or profit share may be used to protect the interests of both parties in the event that the agreement is terminated prematurely.

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Legal firms who might be able to help

Note: Although we list lawyers as well as legal firms who may be able to help, this does not indicate that the listed law firms have an affiliation or partnership with Genie AI.