profit share agreements

A profit share agreement is a contractual arrangement where two or more parties agree to share the profits generated from a specific project, business venture, or investment. Instead of a fixed payment, the involved parties receive a predetermined percentage of the profits. This type of agreement aligns incentives, as all parties benefit from the success of the venture. It is commonly used in partnerships, joint ventures, or contractor relationships, providing flexibility and risk-sharing based on the actual financial results rather than fixed fees.