Project Profit Sharing Agreement Template for Malaysia

The Project Profit Sharing Agreement is essential for collaborative business ventures in Malaysia where multiple parties contribute resources, expertise, or capital to a specific project and agree to share its profits. This document is commonly used in various sectors including construction, real estate development, and technology projects, providing a legally binding framework under Malaysian law. It addresses key aspects such as profit calculation, distribution mechanisms, management rights, and dispute resolution while ensuring compliance with Malaysian regulations including the Contracts Act 1950, Partnership Act 1961, and relevant tax laws. The agreement is particularly important for joint ventures, foreign-local partnerships, and project-specific collaborations where clear profit sharing arrangements are crucial for success.

1. Parties: Identifies all parties to the agreement with their full legal names and addresses

2. Background: Describes the context of the agreement, including the project overview and parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Project Scope: Detailed description of the project, its objectives, and deliverables

5. Profit Definition and Calculation: Specifies how project profits will be calculated, including revenue recognition and cost allocation principles

6. Profit Distribution: Details the profit sharing ratio, distribution mechanism, and timing of distributions

7. Parties' Contributions: Outlines what each party will contribute to the project (capital, resources, expertise, etc.)

8. Management and Control: Describes project management structure and decision-making processes

9. Financial Records and Audit Rights: Specifies requirements for maintaining financial records and parties' audit rights

10. Representations and Warranties: Standard representations and warranties from each party

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

12. Confidentiality: Obligations regarding confidential information

13. Dispute Resolution: Procedures for resolving disputes between parties

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.