profit share agreement

profit share agreement
England, Wales
In the context of a finance transaction, an agreement between a lender and borrower, where the borrower agrees to pay the lender a fee or profit share on the occurrence of a specified, future contingent event. Profit share agreements have long been a feature of certain property finance transactions.
Events which may trigger the payment of such a fee or profit share include one or more of the following:
• An event of default occurring under the finance documents.
• Prepayment or repayment in full of the facility (or certain tranches of the facility).
• Disposal of certain property prior to the final repayment date of the facility.
• A change of control occurring (as defined in the facility agreement).
The parties may need to consider how the exit fee or profit share is classified for accounting and tax purposes. For example, in certain circumstances, it can be treated as interest and, in others, a capital payment.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • profit participation agreement — England, Wales See profit share agreement. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Profit-sharing agreement (USA) — A profit sharing agreement in the United States is the agreement that establishes a pension plan maintained by the employer to share its profits with its employees.HistoryA profit sharing agreement used to be supplemental to a type of pension… …   Wikipedia

  • exit fee agreement — England, Wales See profit share agreement. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • profit-sharing — profˈit sharing noun A voluntary agreement under which an employee receives a share, fixed beforehand, of the profits of a business • • • Main Entry: ↑profit * * * ˈprofit sharing [profit sharing] noun uncountabl …   Useful english dictionary

  • Tobacco Master Settlement Agreement — The Tobacco Master Settlement Agreement (MSA) was entered in November 1998, originally between the four largest US tobacco companies and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry… …   Wikipedia

  • Offset agreement — Defense offset agreements are legal trade practices in the aerospace and military industries. These commercial practices do not need state regulations but, since the purchasers are mostly military departments of sovereign nations comparable to… …   Wikipedia

  • cash underpinning agreement: synopsis — A note of the main terms of a cash underpinning arrangement (also known as a cash underwritten alternative) applying on a takeover bid. A cash underpinning arrangement (also known as a cash underwritten alternative) will be required where the… …   Law dictionary

  • partnership agreement — articles of partnership An agreement made between the partners of a partnership. In the absence of either an express or an implied agreement the provisions of the Partnership Act (1890) apply. These provisions are also applicable if an agreement… …   Accounting dictionary

  • partnership agreement — articles of partnership An agreement made between the partners of a partnership In the absence of either an express or an implied agreement the provisions of the Partnership Act (1890) apply. These provisions are also applicable if an agreement… …   Big dictionary of business and management

  • Production sharing agreement — Production sharing agreements (PSAs) are a common type of contract signed between a government and a resource extraction company (or group of companies) concerning how much of the resource (usually oil) extracted from the country each will… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”