4. Profit Sharing


4. Profit Sharing


4.1. Operating Reserves

  1. The Company will keep cash reserves covering at least 2 years of operating costs.
  2. Operating costs include all fixed costs and variable costs. These costs are likely to change depending on the growth of the Company.
  3. These cash reserves will be used to ensure employment for all employees for the period.
  4. Profit will be distributed if cash reserves equal or exceed the required amount of reserves specified above.


4.2. Distribution Allocation

  1. At end of the Company’s financial year the profit will be distributed as follows:
    1. 50% of profit will return to the Company.
    2. 20% will be used to pay off existing debts.
    3. 5% will be donated to open source projects. The projects will be chosen by the employees of the company by vote. Special preference will be given to open source projects utilized by the Company in pursuit of profits.
    4. 5% will be used to support local charities and non-profit organizations. The projects will be chosen by the employees of the company by vote.
    5. 20-40% (depending on existing debts specified above) will be given out to employees and investors. The form of the distribution will be done according to the request of the individual employee. Any costs incurred by the Company to transfer the distribution to an employee will be deducted from the distribute itself.