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Share Profit Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Share Profit Agreement

"I need a Share Profit Agreement for a UAE-based software development partnership where my company will provide the technical expertise and the partner will handle local market distribution, with an expected profit split of 60-40 and operations starting March 2025."

Document background
A Share Profit Agreement is essential for businesses operating in the UAE who wish to establish a formal profit-sharing arrangement with partners, investors, or other stakeholders. This document is particularly relevant in the context of UAE's dynamic business environment, where various forms of commercial partnerships and profit-sharing structures are common. The agreement must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations, making it suitable for both mainland and free zone entities. It typically includes detailed provisions for profit calculation, distribution mechanisms, governance structures, and dispute resolution procedures aligned with UAE jurisdiction. The Share Profit Agreement serves as a crucial tool for businesses looking to formalize their profit-sharing arrangements while ensuring legal compliance and protecting all parties' interests under UAE law.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including their legal status and registration details

2. Background: Context of the agreement, business relationship, and purpose of the profit sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Profit Sharing Structure: Core terms defining how profits will be calculated, shared, and distributed

5. Payment Terms: Timing, method, and currency of profit distributions

6. Financial Records and Audit Rights: Requirements for maintaining financial records and rights to audit

7. Management and Control: Decision-making process and management structure

8. Representations and Warranties: Standard declarations by all parties regarding their capacity and authority

9. Confidentiality: Protection of sensitive business information and trade secrets

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

12. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Non-Competition: Restrictions on competitive activities, used when parties operate in the same industry

2. Intellectual Property Rights: IP ownership and licensing terms, needed when the profit-generating activities involve IP

3. Force Majeure: Provisions for unexpected events, particularly relevant in long-term arrangements

4. Employee Non-Solicitation: Restrictions on hiring other party's employees, relevant in closely collaborative arrangements

5. Islamic Finance Compliance: Additional provisions ensuring Sharia compliance, needed for Islamic finance arrangements

6. Foreign Ownership Provisions: Special terms addressing foreign ownership restrictions, needed when foreign parties are involved

7. Exit Strategy: Procedures for party exit or business sale, important in long-term strategic partnerships

Suggested Schedules

1. Profit Calculation Methodology: Detailed formula and examples of profit calculation

2. Business Plan: Projected financials and business objectives

3. Key Performance Indicators: Metrics used to measure performance and profit calculations

4. Bank Account Details: Designated accounts for profit distributions

5. Corporate Documents: Copies of relevant corporate registrations and licenses

6. Management Structure: Detailed organizational chart and decision-making procedures

7. Financial Reporting Template: Standard format for financial reports and profit statements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































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Relevant Industries

Real Estate Development

Trading & Distribution

Financial Services

Technology & Software

Professional Services

Manufacturing

Retail & E-commerce

Hospitality & Tourism

Construction & Engineering

Energy & Resources

Healthcare

Education

Media & Entertainment

Logistics & Transportation

Relevant Teams

Legal

Finance

Compliance

Commercial

Business Development

Operations

Corporate Affairs

Risk Management

Strategy

Investment

Partnerships

Executive Leadership

Treasury

Accounting

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Commercial Director

Business Development Manager

Finance Manager

Compliance Officer

Managing Director

Partnership Manager

Investment Manager

Operations Director

Corporate Secretary

Risk Manager

Account Manager

Strategy Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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