Consultant Profit Sharing Agreement

ERISA makes it possible to distribute the income of the sponsors of a retirement plan, so that part of the income earned by the investment funds is kept in an expense account. The funds are used to pay the management and operating fees of the 401(k) plans. The amount of money to be allocated and paid into the revenue sharing accounts is set out in the revenue sharing agreement. The trustee must inform investors of how the revenue is spent, which contributes to transparency. The same number of companies in our study apply three-year or one-year calculations. One-year contracts may have advantages for some agencies. Many companies today use, in addition to profitability and volume, growth and engagement factors to determine the Agency`s bonus. Some companies reward the agent separately for growth and/or engagement, while others penalize the otherwise profitable agency, which does not grow and/or keeps the business at a certain level. As already mentioned, a profitable agency would not be entitled to a profit-off payment under certain contracts if the growth/engagement objectives were not met. THE WHOLE AGREEMENT. This Agreement constitutes the full understanding of the Parties and supersedes all prior oral or written agreements concerning the subject matter annexed thereto. CONSIDERING that the company and the representative wish to enter into an agreement under which [PARTNER 1] and [PARTNER 2] share the profits from the sale of the product due to the efforts of the representative, in accordance with the conditions set out therein. An agency should check its business book later this year to determine whether the minimum is met, as excluded lines are not taken into account in the calculation of the minimum volumes required.

A ledger with excluded lines could give an agency the mistaken impression that it qualifies for profit-making if it doesn`t or if it only qualifies for a reduced payment…