Profit Sharing Agreement Template for Germany

1. Employee Participation Rights: Required when the agreement involves employee profit sharing schemes, addressing works council requirements and employee representatives

2. Tax Provisions: Detailed tax handling when specific tax structures or international elements are involved

3. Corporate Governance: Required for agreements involving corporate entities, addressing decision-making processes and corporate approvals

4. Change of Control: Provisions dealing with changes in ownership or control of participating entities

5. Intellectual Property: Required when profit sharing is linked to IP exploitation or licensing

6. Non-Competition: Restrictions on competitive activities when profit sharing creates special relationships between parties

1. Profit Calculation Methodology: Detailed technical specifications for profit calculation, including accounting principles and adjustments

2. Distribution Formula: Mathematical formulas and examples of profit share calculations

3. Participating Entities: List of all entities participating in the profit sharing arrangement, including their respective shares

4. Reporting Templates: Standard forms for financial reporting and profit share calculations

5. Key Performance Indicators: Metrics and benchmarks used in profit calculations or adjustments

6. Tax Treatment Overview: Summary of tax implications and handling for different types of distributions