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Offer With Profit Sharing Clause
OFFER WITH PROFIT SHARING CLAUSE
[Date]
[Mr/Mrs/Ms/Dr] [First Name of applicant] [Last Name of applicant]
[Title of applicant]
[Company of applicant]
[Address of applicant]
[City of applicant], [State of applicant] [Zip Code of applicant]
Dear [Mr/Mrs/Ms/Dr] [Last Name of applicant]:
It is with great pleasure to inform you that you have been selected for the position of [Job Title] at [Company Name].
The annual base salary is $[salary per year] with a profit sharing provision of up to [percentage of profits] % of net profits over $ [net profits] per year. The actual percentage you earn is determined on a pro-rata share basis, based on the length of employment and the amount of net profits earned. Attached is a table of calculation and the derivation of net profit; your percentage share is highlighted.
Your share of the profits will be calculated within ten business days after the annual "closing of books" and distributed on the eleventh business day. If your employment is terminated during the fiscal year, your share will be calculated on a pro-rata basis. Refer to the Employee Handbook about benefits.
This agreement will remain effective for [Period of agreement] years from beginning date on [Initial date of agreement]. The agreement can be terminated at an earlier time by either party with a written notification at least weeks prior to the last working day.
We believe that you will find this agreement attractive and look forward to have you join our growing company.
Sincerely,
[Name of employer]
[Title of employer]
[Phone of employer]