A Profit Share Agreement is a contract that outlines the terms and conditions surrounding the amount of profit generated or lost by a business and how that profit is shared among parties who have invested in the enterprise. This agreement essentially establishes the responsibilities and rights of the investors, shareholders, and other stakeholders in the company, with respect to the financial outcome of the business. It also provides guidance on how profits should be divided amongst those involved in the venture, as well as outlining tax obligations and other potential legal requirements. To ensure fair and equitable distribution of profits, a Profit Share Agreement can be a great way to ensure mutual benefits for all parties involved.