Profit Sharing Agreement Template
Prepared by: [Sender.FirstName][Sender.LastName] [Sender.Company]
Prepared for: [Client.FirstName][Client.LastName] [Client.Company]
This Profit Sharing Agreement (the “Agreement”) is entered into as of date by and between [Sender.Company]having its principal place of business located at address (the “Company”) and [Sender.FirstName][Sender.LastName] having its principal place of business located at address (the “Representative”), both of whom agree to be bound by this Agreement.
WHEREAS, the Company has developed product (the “Product”) and holds ownership of all intellectual property rights in the Product;
WHEREAS, the Company desires to hire the Representative to market the Product for sale; and
WHEREAS, the Company and the Representative desire to enter into an arrangement whereby parthners will share the profits realized from the sale of the Product due to the efforts of the
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto, the Company and the Representative (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:
This Agreement shall last from the date of execution until terminated by thirty (30) days’ written notice by either party.
2. EFFECT OF TERMINATION
Upon termination according to section 1, the following shall occur:
a. The Representative shall continue to receive the profit share described herein from any continuing sales as a direct result of the Representative’s efforts;
b. The Representative shall direct all further inquiries regarding the Product back to the Company;
c. The Representative shall return or destroy any physical or digital copies of the Company’s proprietary information in its possession including (but not limited to) marketing material, business plans, customer lists, and pricing information.