Free Profit Sharing Agreement

This Profit Sharing Agreement ("Agreement") is made and entered into on [Date], by and between [Party A Name], residing at [Party A Address], hereinafter referred to as "Party A", and [Party B Name], residing at [Party B Address], hereinafter referred to as "Party B".

I. Purpose

The primary objective behind drafting this Agreement is to clearly outline and set forth the stipulations, terms, and conditions by which profits made by the "Chic Boutique" retail clothing store, regarded hereafter as the "Business," and which is currently situated at the provided address, [Location], will be correspondingly distributed or shared between two entities Party A and Party B.

II. Profit Calculation

The computation of the Business's profits will happen post the consideration of all pertinent aspects for the specified period. This includes accounting for the Business's net income (the foundation for the calculation), minus all incurred expenses, taxes due, and any other outstanding liabilities within the set period. After these deductions from the net income, the residual amount is accepted as profit.

III. Distribution Schedule

IV. Profit Sharing Ratio

Following the agreed-upon terms, the generation of profits from the present enterprise will result in a distribution that shall be respectfully divided between Party A and Party B. This division will adhere strictly to a predetermined ratio wherein Party A is slated to receive an allotment in the proportion of 60 percent of the generated net profits. Following the same agreed-upon ratio, Party B will be the recipient of a share amounting to 40 percent of the net profits.

V. Responsibilities and Obligations

1. Each party involved in this agreement mutually lends their consent to perform their duties and responsibilities.

2. They pledge to execute their tasks thoroughly, with diligent effort and professionalism.

3. Leveraging the best of their skills, knowledge, and abilities, they intend to tirelessly work towards the common objective.

4. The common objective is to ensure the success and profitability of the Business.

VI. Term and Termination

This Agreement will commence on the established effective date and its terms and conditions will remain in force, maintaining full effect until one of the parties chooses to end it. Should a decision be taken to terminate the Agreement, written notice, complete with the reasons for termination, must be provided to the other party at least 60 days before the intended termination date.

VII. Confidentiality

Both parties involved in this agreement have mutually agreed to keep any information that is considered proprietary, and any trade secrets that are related to the business operations, strictly confidential. This is significant in ensuring that sensitive information about the business does not fall into unauthorized hands. They have both recognized the importance of this information and hence they are committed to maintaining its confidentiality.

VIII. Dispute Resolution

The parties engaged in this accord have mutually acknowledged a specific aspect. Any principle or provision-related controversies within the agreement will be handled and resolved by both parties. These issues will chiefly be resolved via mediation, and the mediator’s role is critically significant. The mediator should ideally be a reputable person whom both parties acknowledge and respect. This method is intended to offer an unprejudiced resolution of potential conflicts or issues that may arise concerning this agreement in the future.

IX. Governing Law

The stipulations incorporated into this Agreement, along with the interpretations of such, will be governed and comprehended by the laws that are currently in effect within the [State/Country]. This implies that any disputes over the meaning, execution, or violation of this Agreement's terms will be determined under the jurisdiction of these laws.

X. Entire Agreement

This Agreement signifies and encapsulates the entire understanding and agreement that exists between all the involved parties about the subject matter presented herein. In this regard, it surpasses, overrides, and renders null and void all the previous agreements and understandings that might have existed before this, irrespective of whether those understandings and agreements were voiced orally or established in written form.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

[Party A Name]

[Party B Name]

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