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Joint Venture Profit Sharing
Summary
The conversation involves drafting a joint venture agreement with specific terms for profit sharing and equity transfer. Party A and Party B have agreed on a 60/40 profit split for parts sales, with a 50/50 split for tires and rims. Equity participation is based on sales milestones, with a cap at 25%. Amendments to the agreement require mutual consent.Full Conversation
Party A will receive *% of the sales price of any parts that Party B causes to be sold.
Party B will receive *% of the sales prices of any parts that it sells through its sales channels.
The only exception to this split will be the tires, and rims, these items will have */*.
Once Party B establishes performance, it will be entitled to receive equity participation of Party A’s holding company.
Equity will be based on its sales volume and comparative percentage to the sales generated by Party A’s own sales channels (EBAY).
Once party B achieves *,* dollars in consistent monthly sales for a period of at least * consecutive months, Party A will transfer *% equity shares to party B.
Once party B achieves *,* dollars in consistent monthly sales for a period of at least * consecutive months, Party A will transfer additional *% equity shares to party B.
Got it! Here's a draft for Exhibit A based on the terms you provided:
Exhibit A: Profit Sharing Terms for Joint Venture Agreement
*. Profit Sharing:
- Sales by Party B through its Sales Channels:
- Party A will receive *% of the sales price of any parts that Party B causes to be sold.
- Party B will receive *% of the sales prices of any parts that it sells through its sales channels.
- Exception for Tires and Rims:
- The sales of tires and rims will have a */* profit-sharing split between Party A and Party B.
*. Equity Participation:
- Upon establishing performance, Party B will be entitled to receive equity participation in Party A’s holding company.
- Equity participation will be based on Party B’s sales volume and comparative percentage to the sales generated by Party A’s own sales channels (e.g., EBAY).
*. Equity Transfer Conditions:
- First Equity Transfer:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer *% equity shares to Party B.
- Second Equity Transfer:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
Please review and let me know if there are any changes or additional details you would like to include!
*. Profit Sharing:
- Sales by Party B through its Sales Channels:
- Party A will receive *% of the sales price of any parts that Party B causes to be sold.
- Party B will receive *% of the sales prices of any parts that it sells through its sales channels.
- Exception for Tires and Rims:
- The sales of tires and rims will have a */* profit-sharing split between Party A and Party B.
*. Equity Participation:
- Upon establishing performance, Party B will be entitled to receive equity participation in Party A’s holding company.
- Equity participation will be based on Party B’s sales volume and comparative percentage to the sales generated by Party A’s own sales channels (e.g., EBAY).
*. Equity Transfer Conditions:
- First Equity Transfer:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer *% equity shares to Party B.
- Second Equity Transfer:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
Please review and let me know if there are any changes or additional details you would like to include!
Once party B achieves *,* dollars in consistent monthly sales for a period of at least * consecutive months, Party A will transfer additional *% equity shares to party B.
The equity component per this agreement is caped at *% of equity. If at a later time parties decide to amend this agreement, this must be done by mutual consent.
Here's a draft of Exhibit A for your joint venture agreement based on the terms provided:
*. Profit Sharing:
- Party A will receive *% of the sales price of any parts that Party B causes to be sold.
- Party B will receive *% of the sales prices of any parts that it sells through its sales channels.
- For tires and rims, profits will be split */* between Party A and Party B.
*. Equity Participation:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer *% equity shares to Party B.
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
- The equity component per this agreement is capped at *% of equity.
*. Amendments:
- Any amendments to this agreement must be made by mutual consent of both parties.
Feel free to consult with a legal professional to ensure that this exhibit aligns with your specific needs and complies with relevant laws.
Exhibit A
Profit Sharing and Equity Transfer Terms*. Profit Sharing:
- Party A will receive *% of the sales price of any parts that Party B causes to be sold.
- Party B will receive *% of the sales prices of any parts that it sells through its sales channels.
- For tires and rims, profits will be split */* between Party A and Party B.
*. Equity Participation:
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer *% equity shares to Party B.
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
- Once Party B achieves $*,* in consistent monthly sales for a period of at least * consecutive months, Party A will transfer an additional *% equity shares to Party B.
- The equity component per this agreement is capped at *% of equity.
*. Amendments:
- Any amendments to this agreement must be made by mutual consent of both parties.
Feel free to consult with a legal professional to ensure that this exhibit aligns with your specific needs and complies with relevant laws.
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