# Profit Distribution Agreement
**This Profit Distribution Agreement ("Agreement") is made and entered into as of [Date] by and between the following parties:**
1. **Party A**
Name: [Full Name]
Address: [Address]
Email: [Email]
2. **Party B**
Name: [Full Name]
Address: [Address]
Email: [Email]
**Collectively referred to as the "Parties."**
## Recitals
WHEREAS, the Parties wish to establish a formal agreement regarding the distribution of profits arising from [Describe the business or project],
WHEREAS, the Parties agree to cooperate and contribute resources toward operating the business,
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties agree as follows:
## 1. Purpose
The purpose of this Agreement is to outline the terms and conditions under which profits generated from [Describe the business or project] are to be distributed among the Parties.
## 2. Definition of Profits
For the purposes of this Agreement, "Profits" shall be defined as the total revenue generated from [Describe the business or project] minus all operating expenses, taxes, and any other costs associated with the business.
## 3. Profit Distribution
The distribution of Profits shall be conducted according to the following percentages:
- **Party A:** [Percentage]%
- **Party B:** [Percentage]%
Any changes to the distribution percentages must be agreed upon in writing by both Parties.
## 4. Payment Terms
Profits will be calculated and distributed quarterly, with payments made within [number of days, e.g., 30 days] following the end of each quarter.
## 5. Reporting
Both Parties shall maintain accurate records of all income and expenses related to the business. A financial report shall be prepared and shared with both Parties before distribution occurs.
## 6. Responsibilities of Parties
- **Party A Responsibilities:**
- [List responsibilities, e.g., managing daily operations, marketing, etc.]
- **Party B Responsibilities:**
- [List responsibilities, e.g., financial oversight, managing contracts, etc.]
## 7. Term and Termination
This Agreement shall commence on the date first above written and shall continue in effect until terminated by either Party upon [number of days, e.g., 30 days] written notice to the other Party.
## 8. Confidentiality
The Parties agree that all information shared and exchanged in relation to this Agreement shall remain confidential and shall not be disclosed to third parties without prior written consent from the other Party.
## 9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
## 10. Entire Agreement
This Agreement contains the entire understanding between the Parties and supersedes all prior discussions, agreements, or understandings of any kind.
## 11. Amendments
Any changes or amendments to this Agreement must be executed in writing and signed by both Parties.
IN WITNESS WHEREOF, the Parties hereto have executed this Profit Distribution Agreement as of the day and year first above written.
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**Party A Signature:** ___________________________
**Date:** [Date]
**Party B Signature:** ___________________________
**Date:** [Date]
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### Annexes (if applicable)
1. **Annex A:** Detailed profit calculation methods
2. **Annex B:** List of allowable expenses
3. **Annex C:** Quarterly reporting template
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This document is for informational purposes and should not be considered legal advice. Parties are advised to consult with a legal professional before entering into any contract.