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Profit Sharing Agreement
"I need a Profit Sharing Agreement under Singapore law for a tech startup with three co-founders, where we want to split profits 40-30-30, including quarterly distribution and detailed reporting requirements, starting from January 2025."
1. Parties: Identification and details of all parties involved in the profit sharing arrangement
2. Background: Context and purpose of the profit sharing arrangement
3. Definitions: Key terms used throughout the agreement including profit calculation methods, accounting periods, and relevant financial terms
4. Profit Calculation: Method and basis for calculating distributable profits, including accounting principles to be applied
5. Distribution Mechanism: Process and timing of profit distributions, including profit sharing ratios and payment procedures
6. Payment Terms: Details of how and when payments will be made, including payment methods and currency
7. Term and Termination: Duration of agreement and circumstances under which the agreement can be terminated
8. Governing Law: Specification of Singapore law as governing law and jurisdiction for disputes
1. Non-Competition: Restrictions on competitive activities during and after the profit sharing arrangement
2. Intellectual Property: Rights and ownership of intellectual property related to the profit-generating activities
3. Confidentiality: Obligations regarding protection and non-disclosure of confidential information
4. Assignment: Provisions regarding the transfer or assignment of profit sharing rights and obligations
1. Schedule 1 - Profit Calculation Formula: Detailed methodology and formulas for calculating distributable profits
2. Schedule 2 - Payment Schedule: Timing and frequency of profit distributions throughout the term
3. Schedule 3 - Excluded Costs: Comprehensive list of costs and expenses excluded from profit calculations
4. Schedule 4 - Reporting Requirements: Format, content, and frequency of financial reports and statements
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