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Share Profit Agreement Template for Ireland

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Key Requirements PROMPT example:

Share Profit Agreement

"I need a Share Profit Agreement under Irish law for a technology startup partnership where three founding partners will share profits equally, with quarterly distributions starting from March 2025, and including provisions for future employee profit-sharing scheme implementation."

Document background
The Share Profit Agreement is a crucial document used in Irish business contexts to formalize arrangements for sharing profits between various business stakeholders. This agreement type is particularly relevant when establishing new business partnerships, implementing employee profit-sharing schemes, or structuring joint venture arrangements. The document addresses key aspects such as profit calculation methodologies, distribution frequencies, and stakeholder rights, all while ensuring compliance with Irish corporate law, tax regulations, and financial reporting requirements. It's essential for businesses operating in Ireland who wish to create transparent and legally sound profit-sharing structures, whether for internal stakeholders or external business partners.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the profit-sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Profit', 'Accounting Period', and 'Distribution Date'

4. Profit Sharing Structure: Core terms of the profit-sharing arrangement, including percentage splits and basis of entitlement

5. Calculation of Profits: Methodology for calculating distributable profits, including accounting principles and adjustments

6. Distribution Mechanics: Timing, method, and procedure for profit distributions, including payment details

7. Accounting and Records: Requirements for maintaining financial records, conducting audits, and providing financial information

8. Rights and Obligations: Key responsibilities and rights of each party regarding the profit-sharing arrangement

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Provisions regarding the treatment of confidential information

11. Dispute Resolution: Procedures for resolving disagreements between parties

12. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Tax Provisions: Detailed tax handling procedures - include when tax implications are complex or involve international elements

2. Employee Participation: Specific provisions for employee profit-sharing schemes - include when agreement involves employee participants

3. Intellectual Property: IP rights and their relationship to profit calculation - include when IP forms part of the profit generation

4. Change Control: Procedures for handling business changes - include for complex or long-term arrangements

5. Non-Competition: Restrictions on competitive activities - include when parties may have competing interests

6. Force Majeure: Provisions for handling unforeseen events - include when external factors could significantly impact profits

7. International Provisions: Specific clauses for cross-border arrangements - include for international agreements

Suggested Schedules

1. Schedule 1 - Profit Calculation Methodology: Detailed formula and examples of profit calculations

2. Schedule 2 - Distribution Timeline: Annual calendar of key dates for accounting, verification, and distribution

3. Schedule 3 - Accounting Principles: Specific accounting standards and principles to be applied

4. Schedule 4 - Excluded Items: List of items specifically excluded from profit calculations

5. Schedule 5 - Reporting Template: Standard format for financial reports and profit statements

6. Appendix A - Initial Financial Baseline: Starting financial position for profit calculation purposes

7. Appendix B - Authorized Representatives: List of individuals authorized to act on behalf of each party

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Teams

Legal

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Relevant Roles

Chief Executive Officer

Chief Financial Officer

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Tax Manager

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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