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.
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.
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