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Profit Sharing Agreement
1. Parties: Identification and details of all parties entering into the profit sharing agreement
2. Background: Context of the agreement, relationship between parties, and purpose of the profit sharing arrangement
3. Definitions: Key terms used throughout the agreement, including specific financial and accounting terms
4. Profit Calculation: Detailed methodology for calculating the profit that will be shared, including accounting principles and standards to be applied
5. Distribution Formula: Specific formula and percentages for profit distribution among parties
6. Payment Terms: Timing, method, and currency of profit share payments
7. Accounting and Records: Requirements for maintaining financial records, conducting audits, and providing financial statements
8. Rights and Obligations: Specific responsibilities and rights of each party regarding the profit sharing arrangement
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Confidentiality: Provisions regarding the handling of confidential information shared between parties
11. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for dispute resolution
12. General Provisions: Standard legal provisions including amendments, assignments, and notices
1. Tax Provisions: Detailed tax handling and responsibilities - include when parties are in different tax jurisdictions or specific tax arrangements are needed
2. Dispute Resolution: Specific procedures for handling disputes - include when parties want alternatives to court proceedings
3. Force Majeure: Provisions for handling unexpected events - include when profit sharing depends on specific operational conditions
4. Non-Competition: Restrictions on competitive activities - include when parties have access to sensitive business information
5. Employee Participation Rules: Specific rules for employee profit sharing - include when agreement involves employee incentive schemes
6. Currency Exchange: Provisions for handling currency conversions - include when parties operate in different currencies
7. Intellectual Property Rights: IP ownership and licensing provisions - include when profit sharing relates to IP-generated revenues
8. Change Control: Procedures for handling business changes - include when profit sharing depends on specific business conditions
1. Calculation Schedule: Detailed formulas and examples of profit calculations
2. Payment Schedule: Timeline and specific dates for profit share distributions
3. Accounting Principles: Specific accounting standards and principles to be applied
4. Excluded Items: List of items specifically excluded from profit calculations
5. Reporting Template: Standard format for regular financial reporting
6. Audit Procedures: Detailed procedures for conducting financial audits
7. Authorized Representatives: List of persons authorized to act on behalf of each party
8. Tax Treatment Summary: Overview of tax implications and handling procedures
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