PROFIT-SHARING AGREEMENT

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Agreements
February 20, 2024

PROFIT-SHARING AGREEMENT

This Profit-Sharing Agreement (“Agreement”) is entered into on this [INSERT DATE], (the “Effective Date”) between [INSERT YOUR REAL ESTATE FIRM’S NAME], a real estate company organized and existing under the laws of Washington State, with its principal place of business located at [INSERT YOUR REAL ESTATE FIRM’S ADDRESS], (hereinafter the “Company”),  and [INSERT DESIGNATED BROKER’S NAME] an individual residing at [INSERT DESIGNATED BROKER’S ADDRESS] (hereinafter the “Designated Broker”), also individually referred to as a “Party” and collectively referred to as the “Parties”.

RECITALS:

WHEREAS, the Company desires to reward the Designated Broker for his/her contributions to the success of the Company by paying a portion of the Company’s profits to the Designated Broker while at the same time the Designated Broker desires to receive a share of the Company’s profits in recognition of his/her contributions; and

WHEREAS, the Company and the Designated Broker hereby agree, for the duration of this Agreement, to enter into an arrangement where the Parties will share profits realized from the marketing and selling of the Company’s products by the Designated Broker in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:

  1. PURPOSE

The purpose of this Agreement is to outline the profit-sharing arrangement between the Company and the Designated Broker, while reiterating the Company’s controlling interest and decision-making authority over strategic direction and major financial investments.

  1. PROFIT-SHARING
  2. Distribution of Profits:

 

  1. The Designated Broker shall be entitled to a share of the profits generated by the Company.

 

  1. The profit distribution shall be calculated as 20% percent of the net profits after deducting all legitimate expenses incurred by the Company.

 

  1. Monthly Distribution:

 

  1. The profit share shall be distributed on a monthly basis within [INSERT NUMBER] days after the end of each calendar month.

 

  1. The Company shall provide the Designated Broker with a detailed statement of the net profits and the calculations supporting the profit distribution.

 

  • CONTROLLING INTEREST AND DECISION-MAKING AUTHORITY

 

  1. Controlling Interest:

The Designated Broker acknowledges that the Company retains a controlling interest, providing [INSERT YOUR NAME] as the majority owner with ultimate decision-making authority over matters that impact the strategic direction and major financial investments of the Company.

  1. Designated Broker’s Role:

While the Designated Broker holds a significant position within the Company, it is understood that the Designated Broker’s role primarily focuses on operational matters and day-to-day management, subject to the ultimate authority and direction provided by [INSERT YOUR NAME] as the majority owner.

  1. COMPANY’S STRATEGIC DIRECTION AND MAJOR FINANCIAL INVESTMENTS

 

  1. Decision-Making Authority

Decisions related to the Company’s strategic direction and major financial investments, including but not limited to acquisitions, mergers, substantial property transactions, significant financial commitments, and other material business decisions, require the ultimate approval of [INSERT YOUR NAME] as the majority owner.

  1. Designated Broker’s Input:

The Company acknowledges and values the Designated Broker’s expertise and contributions in operational matters. The Designated Broker shall have the opportunity to provide recommendations and insights for consideration during the decision-making process. However, the final decision shall rest with [INSERT YOUR NAME] as the majority owner.

  1. CONFIDENTIALITY

Both Parties agree to maintain the confidentiality of all financial and proprietary information disclosed or obtained during the course of their engagement. This obligation shall continue even after the termination of this Agreement.

  1. REPRESENTATIONS AND WARRANTIES

The Parties warrant that they possess the full right, power and authority to enter into and perform this Agreement.

  • INDEMNITY

The Parties agree to indemnify each other as well as their related affiliates, officers, agents, permitted successors and assigns against any and all kinds of claims, losses, liabilities, penalties, damages, expenses, reasonable legal fees and costs of any kind whatsoever, which may result from negligence or breach of this Agreement by the indemnifying Party, its respective successors and assigns that occur in connection with this Contract.

  • TERMINATION

This Agreement may be terminated under the following circumstances:

  • Material breach of the Agreement by either party
  • Mutual agreement to terminate the Agreement
  • Expiration of the agreed-upon term
  • Other grounds for termination as specified in the Agreement
  1. GOVERNING LAW AND JURISDICTION

 

  1. This Agreement shall be governed by and interpreted in accordance with the laws of Washington State.

 

  1. Any disputes arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts in Washington State.

 

  1. GENERAL PROVISIONS

This Agreement, along with any addendums or separate agreements related thereto, constitutes the entire understanding between the Company and the Designated Broker and supersedes all prior agreements, whether oral or written, with respect to the subject matter contained herein.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first above written.

[Your Real Estate Company’s Name]

By: ________________________

Name: ______________________

Title: _______________________

[Designated Broker’s Name]

By: ________________________

Name: ______________________

Date: ________________________

 

 

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