The Profit Sharing Agreement is a vital legal instrument used in Malaysian business transactions where two or more parties agree to share the profits from a business venture or specific project. This document is particularly relevant in joint ventures, partnership arrangements, and investment structures where parties contribute different resources (such as capital, expertise, or assets) and agree to share the resulting profits. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Partnership Act 1961, and relevant tax regulations. It typically includes detailed provisions for profit calculation, distribution mechanisms, accounting requirements, management rights, and dispute resolution procedures. This type of agreement is commonly used in various sectors from real estate development to technology ventures, and can be adapted to both short-term projects and long-term business relationships.

1. Parties: Identification of all parties to the agreement with their full legal names, registration numbers, and registered addresses

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

3. Definitions: Definitions of key terms used throughout the agreement, including 'Profit', 'Accounting Period', and 'Distribution Date'

4. Scope of Agreement: Details of the business activities covered by the profit-sharing arrangement

5. Profit Calculation: Method and basis for calculating distributable profits, including allowable deductions and adjustments

6. Profit Distribution: Agreed profit-sharing ratios, timing, and method of profit distributions

7. Accounting and Records: Requirements for maintaining financial records, conducting audits, and preparing profit statements

8. Rights and Obligations: Specific rights and obligations of each party regarding the business operations and profit-sharing arrangement

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

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

12. Governing Law: Specification of Malaysian law as the governing law and jurisdiction

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