This Profit-sharing agreement is entered into on _____________________ (“Effective Date”) by and between ________________________ (“Company”) and ___________________ (“Employee”). Each referred to as ‘Party” collectively referred to as “Parties”. 

WHEREAS, the Company will contribute 1.5% of the profits monthly;

WHEREAS, the amount contributed monthly will be deposited into an investment account on the first day of every month;

WHEREAS, the profits from the investment account will be split in the ratio of 25% to the Company and the balance split evenly between the active participants;


  • Capital

The primary capital is owned and remains owned by the Company. The Capital is not subject to the profit sharing.

  • Sharing of Profits

The profits will be shared between the Company and the active participants whereby the Company will receive 25% of the profits and 75% will be shared between the active participants.

  • Vesting Schedule

The vesting schedule is the share of profits from the start of the next quarter after entering into the agreement. The vesting schedule on the profits is as follows:

  1. 20% after 1 year
  2. 50% after 2 years
  3. 100% of profits after 3 years

The Employee should notify the Company in writing, 30 days before withdrawing any vested amount. 

In instances where the Employee takes out profits, the Company will also take out profits evenly based on their 25%.

  • Termination

The Employee can terminate the agreement by issuing a 30 day written notice to the Company. Upon termination, the employee will be paid out all vested profits within 30 days.

  • Modification

The Company can modify the amount deposited and the frequency within the 30 days’ notice.

  • Entire Agreement

This Agreement represents the full understanding of the Parties and shall supersede all previous oral or written agreements regarding the subject matter herein. This Agreement is binding on all parties. 

  • Applicable Law

This Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the United States and subject to the exclusive jurisdiction of the federal and state courts located in the United States

IN WITNESS WHEREOF, each of the Parties has executed this Agreement, both Parties by its duly authorized officer, as of the day and year set forth below.

Company Representative Name: ____________________

Signature: ____________________

Date: ____________________


Name: ________________

Signature: ___________________

Date: _____________________


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