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The Consultant Profit Sharing Agreement is essential for businesses in Pakistan seeking to engage consultants with a performance-based compensation structure. This document is particularly valuable when companies want to align consultant incentives with business success by offering a share of profits in addition to or instead of fixed fees. The agreement addresses key aspects such as profit calculation methods, payment terms, service scope, and performance metrics while ensuring compliance with Pakistani legislation, including the Contract Act 1872 and Income Tax Ordinance 2001. It's commonly used for long-term consulting engagements where the consultant's expertise is expected to directly impact business performance and profitability. The document provides necessary legal protections while establishing a clear framework for the profit-sharing arrangement.

1. Parties: Identification of the company and consultant, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, brief description of the company's business, and the purpose of engaging the consultant

3. Definitions: Definitions of key terms used throughout the agreement, including 'Profits', 'Services', 'Confidential Information', etc.

4. Appointment and Scope: Formal appointment of the consultant and detailed description of services to be provided

5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

6. Consultant's Obligations: Detailed responsibilities, performance standards, and delivery requirements

7. Company's Obligations: Company's responsibilities, including provision of information and resources

8. Profit Sharing Structure: Detailed mechanism for calculating and distributing profits, including basis of calculation and payment terms

9. Payment Terms: Timing of payments, method of payment, currency, and handling of expenses

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Intellectual Property: Ownership and rights to intellectual property created during the engagement

12. Non-Competition: Restrictions on consultant's involvement with competing businesses

13. Relationship of Parties: Clarification that the relationship is independent contracting, not employment

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability