Profit Sharing Agreement Template

PROFIT SHARING AGREEMENT

Agreement Date: 9 Nov 2026

This Profit Sharing Agreement (“Agreement”) is made between the following parties (each a “Party”, together the “Parties”):

Party A:

Name: Daniel Reyes

Address: 14 Banksia St, Brisbane QLD 4000

Date of Birth: Party ADOB

Email: daniel@acmeclimate.com.au

Phone: 0412 345 678

and

Party B:

Name: Sarah Mitchell

Address: 22 Wattle Rd, Paddington QLD 4064

Date of Birth: Party B Do B

Email: sarah@mitchellco.com.au

Phone: 0423 456 789

(Add additional parties if more than two, replicate the above block.)

Background & Purpose

• The Parties agree to collaborate on the business/project described as: Joint Venture Business Description (the “Venture”).

• The Parties wish to record how profits (and where applicable, losses) generated by the Venture will be shared between them, under the terms described in this Agreement.

Definitions & Interpretation

• Accounting Period” — the time interval for calculating profits: e.g. monthly, quarterly, annually. Specified as: Profit Share Accounting Period

• “Net Profit” — gross revenue less allowable expenses, costs, taxes, and other deductions as defined in this Agreement. Calculation details in Schedule A.

• “Profit Share Ratio” — the percentage or share allocated to each Party. For example: Party A: Profit Share.Party A Percent%, Party B: Profit Share Party B Percent%.

• “Distribution Date” — the date after which profit shares are paid/distributed. Defined as: Profit Share Distribution Date

Profit Sharing & Distribution

1. At the end of each Accounting Period, Parties will calculate Net Profit.

2. After finalizing accounts, profit distribution will be done according to Profit Share Ratio.

3. Profit share payments to Parties will be made within Profit Share Payment Days days from the Distribution Date.

4. If Net Profit is negative or zero in any period, no distribution will occur; losses or deficit will be carried forward / handled as per clause Loss Handling Clause.

5. All payments to Parties will be subject to applicable taxes, withholding or statutory deductions. Parties are responsible for their own tax obligations.

Capital / Contributions & Responsibilities

Each Party’s contributions to the Venture are summarised below:

Parties agree to perform their obligations, responsibilities, and roles as described in Schedule B (Roles & Responsibilities).

Accounting, Records & Audit Rights

1. The Parties agree to maintain accurate and up-to-date financial records for the Venture, including revenues, expenses, invoices, receipts, and other relevant documentation.

2. After each Accounting Period, Parties will prepare a profit calculation report and share with all Parties by Report Delivery Days days after period end.

3. Any Party may request an independent audit (at its own cost) if a dispute arises over profit calculations.

Terms of the Agreement: Duration & Termination

• Term: This Agreement commences on 9 Nov 2026 and continues until terminated by agreement or as per termination clause.

• Termination: Either Party may terminate this Agreement by giving Termination Notice Days days written notice, or immediately if another Party materially breaches this Agreement.

• Effect of Termination: Upon termination, final profit calculation is done for the current period; any outstanding distributions, expenses or reimbursements will be settled within Final Settlement Days days.

Losses, Liabilities & Risk

• Parties agree that they also share losses arising from the Venture, in proportion to their Profit Share Ratio, unless otherwise agreed.

• Each Party is responsible for their own liabilities, costs, taxes, and obligations arising from their share of profits.

• The Parties indemnify each other from claims, liabilities or obligations arising from misconduct, negligence, or breach by the other Party.

Confidentiality & Non-Disclosure

All financial, operational, client, or business-sensitive information shared between Parties under this Agreement must be kept confidential and not disclosed to third parties without written consent, unless required by law or regulatory authorities.

Dispute Resolution

In case of any dispute arising under this Agreement:

1. Parties will attempt good-faith negotiation to resolve the dispute.

2. If unresolved within Mediation Period Days days, the dispute will be referred to mediation/arbitration under the laws of Governing State Or Territory.

3. Costs of mediation or arbitration will be shared equally by Parties, unless otherwise decided.

Governing Law & Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of Governing State Or Territory. Any legal action or proceeding arising out of this Agreement must be brought in the courts of that jurisdiction.

Entire Agreement & Amendments

This Agreement (including any Schedules and Appendices) represents the full understanding of the Parties with respect to profit sharing. Any changes or amendments must be in writing and signed by all Parties.

Signatures