Contract offering a profit interest in a product line (not the company) for an LLC

Hello,

I had a question about structuring a contract that offers an independent contractor payment in the form of a % profits interest in a product line, with 3 conditions:

1. A vesting period (must be in a working relationship with company for at least 1 year) that must be met before profit interest payments are made
2. A time limit on how long independent contractor holds profit interest (it is returned to company after X years)
3. Contractor continues to perform work on an as-needed basis to maintain profit interest (after the initial 1 year period, before the X years where profit interest returns to company)

The company is set up as an LLC.
The party receiving the profit interest is an independent contractor.
The profit interest is for the P&L of a specific product line, not for the entire company's profits.

I was not able to find examples of this type of arrangement in online research. I did find some examples that discussed how to give equity to employees of an LLC but that seemed different from this arrangement.

Can anyone offer insight on how to structure this agreement? Is such an agreement legal and acceptable in the state of California?

Thank you in advance,

Better consult a business attorney.

Any recommended attorneys in the California - specifically Los Angeles - area that you would recommend or are recommended by thelaw.com?

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