This 50-50 Profit Sharing Agreement is designed for use in Canadian business contexts where two parties wish to establish an equal profit-sharing arrangement while maintaining clear operational and financial boundaries. The document is particularly valuable for joint ventures, business partnerships, or collaborative projects where parties contribute different resources or capabilities but agree to share profits equally. It addresses key Canadian legal requirements including federal and provincial partnership laws, tax regulations, and corporate governance standards. The agreement includes comprehensive provisions for profit calculation, distribution mechanisms, financial reporting requirements, dispute resolution procedures, and termination conditions. It's commonly used in various business scenarios, from startup collaborations to established business partnerships, and can be customized to specific industry requirements while maintaining compliance with Canadian legal frameworks.

1. Parties: Identification and details of all parties entering into the profit sharing agreement

2. Background: Context of the agreement, business relationship, and purpose of the profit sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Profit', 'Revenue', 'Expenses', etc.

4. Profit Sharing Structure: Core terms of the 50-50 split and mechanism for profit distribution

5. Calculation of Profit: Detailed methodology for calculating profit, including allowable expenses and revenue recognition

6. Payment Terms: Timing and method of profit distribution, including payment procedures and currency

7. Accounting and Records: Requirements for maintaining financial records, audit rights, and reporting obligations

8. Management and Control: Decision-making process and operational control of the business

9. Representations and Warranties: Standard declarations by both parties regarding capacity, authority, and compliance

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Dispute Resolution: Process for resolving disagreements, including mediation and arbitration procedures

13. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.