Form of Profits Interest Award Agreement under Equity ...

Profits Interest Plan | Practical Law - Westlaw

A form of profits interest plan that can be used by limited liability companies to enable service providers to acquire equity interests in the company.

Profits Interest: Definition and Comparison to Capital Interest

The award consists of receiving a percentage of profits from a partnership without having to contribute capital. In effect, it is a form of equity compensation ...

Utilizing profits interests as equity incentive compensation

The holder of a profits interest (referred to in this article as the “grantee”) benefits from (1) profits generated by the employer or service ...

6.7 Classification of awards issued by "pass-through" entities

In this fact pattern, the profits interest award is akin to a profit-sharing arrangement or performance bonus, not an equity award. SC LLC ...

Valuation of Profits Interests in Private Equity Transactions

Profits interests are an area of equity incentive securities similar to other share-based payments including stock options, restricted stock and variants.

PROFITS INTERESTS IN LLCs: A Tax-Friendly Alternative to Stock ...

A profits interest in an LLC is a legal form of equity and will make the recipient a partner or member of the LLC for tax purposes.

Profits Interest Grants Explained | Warren Averett CPAs & Advisors

Profits interest grants are a type of equity compensation but differ from traditional equity compensation in both what the worker receives ...

Profits Interests Explained - Linden Law Partners

A profits interest is an equity interest in a partnership that gives the holder the right to a share of future profits and appreciation of the partnership.

DP&W Private Equity Newsletter - Davis Polk

Profits interests are partnership interests that entitle the recipient to a specified share of future profits in the partnership. Properly structured, the ...

Incentivizing with Equity in LLCs - Stock Legal's Profits Interests ...

The award agreement is the agreement between the company and the recipient of profits interests whereby the holder is granted his or her profits ...

The basics of profits interests - McDonald Hopkins

A capital interest is an interest that gives the employee an actual share in the value of the company at the time of grant. Example: A group of ...

Profits Interests 101: Part I – A Crash Course in Profits Interests

A profits interest, also known as “carried interest” or “promote,” is an equity interest in the future appreciation of a partnership (or an LLC that is taxed ...

Profits interest grants – basics - DLA Piper Accelerate

The grant of the profits interest should not result in any taxable income to the recipient. A profits interest may be initially granted as a fully vested or may ...

Key Points in Valuing Profits Interests | Valuation Research

Profits Interests are valued as options, and when estimating their fair value consider the total equity framework, including vesting interests.

Why the Private Company Council Wants to Simplify Accounting ...

Profits interest awards are a flexible type of equity compensation used by limited liability companies (LLCs) and partnerships to ...

Profits Interests 101: The Basics and Uses of Profits Interests

The documentation signed by the parties in connection with the issuance of the profits interest may contain a vesting schedule incentivizing the ...

Equity Incentives in Limited Liability Companies (LLCs) - NCEO

While there is no statutory requirement to do so, having an outside professional valuation of the profits interest at the time of grant is advisable. That ...

What is a Profits Interest? - Hutchison PLLC

Profits interests in an LLC can be subject to vesting in the same way as stock options or the grant of restricted stock in a corporation can be ...

Aspirational Consumer Lifestyle Corp. (Form: S-4, Received

... equity or other form of security to the Treasury in connection with such awards. ... Profits Interest Awards and WUP Restricted Interest Awards. If at any ...

Form of Agreement for Profits Interest Participation Right Units

The PIPR Interest is an “Other Equity-Based Award” within the meaning of Section 8 of the Plan. These PIPR Units are not performance-based restricted ...