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Investment Profit Sharing Agreement Template for Switzerland

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Key Requirements PROMPT example:

Investment Profit Sharing Agreement

"I need an Investment Profit Sharing Agreement under Swiss law for a tech startup investment where our VC firm will invest CHF 2 million for a 30% profit share, with quarterly distributions starting from March 2025 and specific provisions for future funding rounds."

Document background
The Investment Profit Sharing Agreement is a critical document used in Swiss business and investment transactions to formalize arrangements between investors and businesses seeking capital. This agreement type is particularly relevant in Switzerland's sophisticated financial market, where it must comply with the Swiss Code of Obligations, Federal Act on Financial Services (FinSA), and other relevant financial regulations. The document is typically employed when investors seek to participate in business profits without necessarily taking an equity stake, or when establishing structured investment vehicles. It comprehensively addresses investment terms, profit calculation and distribution mechanisms, governance rights, reporting requirements, and exit provisions. The agreement's Swiss jurisdiction offers advantages including political stability, strong investor protection, and a well-developed financial regulatory framework.
Suggested Sections

1. Parties: Identification and details of all contracting parties, including their legal status and registered addresses

2. Background: Context of the agreement, including the purpose of the investment and brief description of the business venture

3. Definitions: Detailed definitions of key terms used throughout the agreement, including financial and technical terms

4. Investment Structure: Details of the investment amount, form of investment, and any staged investment provisions

5. Profit Definition and Calculation: Clear methodology for calculating profits, including accounting principles and specific inclusions/exclusions

6. Profit Distribution: Framework for profit sharing, including distribution percentages, frequency, and payment mechanisms

7. Reporting and Accountability: Requirements for financial reporting, access to information, and audit rights

8. Management and Control: Decision-making processes, voting rights, and management responsibilities

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Representations and Warranties: Standard and specific representations made by each party

11. Confidentiality: Provisions regarding the protection and handling of confidential information

12. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for dispute resolution

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Exit Mechanisms: Procedures for parties to exit the investment, including buy-out provisions and valuation methods - include when dealing with long-term investments

2. Tag-Along and Drag-Along Rights: Rights of investors in case of sale to third parties - relevant for multiple investor scenarios

3. International Payment Provisions: Specific provisions for cross-border payments and currency conversion - include for international investments

4. Intellectual Property Rights: Provisions regarding IP ownership and licensing - include when the investment involves technological or creative ventures

5. Non-Competition and Non-Solicitation: Restrictions on competitive activities - include when protecting business interests is crucial

6. Force Majeure: Provisions for unforeseeable circumstances - include when long-term or high-risk investments are involved

7. Tax Provisions: Specific tax-related provisions and allocations - include when complex tax structures are involved

8. Regulatory Compliance: Specific regulatory obligations and compliance requirements - include when dealing with regulated industries

Suggested Schedules

1. Investment Schedule: Detailed breakdown of investment amounts, timing, and conditions precedent

2. Profit Calculation Methodology: Detailed technical explanation of profit calculation, including formulae and examples

3. Business Plan: Detailed business plan and financial projections

4. Reporting Templates: Standard formats for regular financial and operational reporting

5. Key Performance Indicators: Specific metrics and targets for measuring business performance

6. Corporate Structure Chart: Diagram showing corporate structure and ownership

7. Management Structure: Organizational chart and management responsibilities

8. Compliance Checklist: List of regulatory and compliance requirements to be maintained

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Technology

Real Estate

Private Equity

Venture Capital

Manufacturing

Healthcare

Renewable Energy

Hospitality

Agriculture

E-commerce

Biotechnology

Infrastructure

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Investment

Treasury

Compliance

Risk Management

Executive Management

Business Development

Financial Planning and Analysis

Mergers and Acquisitions

Strategy

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Chief Executive Officer

Investment Director

Fund Manager

Corporate Lawyer

Financial Controller

Business Development Director

Risk Manager

Compliance Officer

Portfolio Manager

Managing Partner

Investment Analyst

Treasury Manager

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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