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1. Parties: Identification of all parties to the agreement with their complete legal names, addresses, and registration details
2. Background: Context of the agreement, existing relationship between parties, and purpose of the profit sharing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including financial terms and calculation methods
4. Profit Sharing Structure: Detailed breakdown of how profits will be calculated and distributed among parties
5. Capital Contributions: Details of initial and ongoing capital contributions from each party
6. Management and Control: Rights and responsibilities of each party in managing the business/venture
7. Accounting and Records: Requirements for maintaining financial records, accounting standards to be followed, and audit rights
8. Distribution of Profits: Timing and mechanism for profit distributions, including payment methods and currencies
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
11. Confidentiality: Obligations regarding confidential information and trade secrets
12. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Islamic Finance Compliance: Required if the agreement needs to comply with Shariah principles, including specific terminology and structures for Musharakah or Mudarabah
2. Intellectual Property Rights: Include when the profit sharing involves exploitation of intellectual property
3. Non-Competition: Include when parties need to be restricted from competing activities
4. Exit Mechanisms: Include for long-term arrangements where parties may need predetermined exit options
5. Force Majeure: Include when specific provisions for unforeseen circumstances affecting profit generation are needed
6. Insurance Requirements: Include when specific insurance coverage is necessary for the business activities
7. Environmental Compliance: Include when the business activities have environmental implications
8. Employee Matters: Include when the arrangement involves shared employees or employment responsibilities
1. Schedule A - Profit Calculation Methodology: Detailed formula and examples of how profits will be calculated
2. Schedule B - Initial Capital Contributions: Itemized list of initial capital contributions from each party, including valuations
3. Schedule C - Business Plan: Detailed business plan and projections
4. Schedule D - Management Structure: Organizational chart and management responsibilities
5. Schedule E - Accounting Principles: Specific accounting standards and principles to be followed
6. Appendix 1 - Required Regulatory Approvals: List of necessary regulatory approvals and compliance requirements
7. Appendix 2 - Key Performance Indicators: Metrics for measuring business performance and profit calculations
8. Appendix 3 - Shariah Compliance Certificate: If applicable, certification of compliance with Islamic finance principles
Applicable Law
Business
Business Day
Business Plan
Capital Account
Capital Contribution
Commencement Date
Confidential Information
Default Event
Dispute
Distribution
Effective Date
Expenses
Financial Year
Force Majeure Event
Gross Profit
Initial Capital
Intellectual Property Rights
Loss
Management Committee
Material Adverse Effect
Net Profit
Operating Expenses
Parties
Profit
Profit Share
Profit Distribution Period
Project
Quarter
Regulatory Approvals
Related Party
Relevant Jurisdiction
Revenue
Shariah Principles
Termination Date
Territory
Transaction Documents
Venture
Working Capital
Definitions
Profit Sharing Structure
Capital Contributions
Management Rights
Distribution of Profits
Losses
Accounting and Records
Bank Accounts
Business Operations
Decision Making
Regulatory Compliance
Islamic Finance Compliance
Representations and Warranties
Covenants
Term and Duration
Termination
Events of Default
Consequences of Default
Force Majeure
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Assignment and Transfer
Dispute Resolution
Governing Law
Notices
Amendment and Modification
Entire Agreement
Severability
Waiver
Costs and Expenses
Further Assurance
Counterparts
Technology
Manufacturing
Real Estate
Agriculture
Retail
Financial Services
Professional Services
Healthcare
Education
Construction
Islamic Banking
Mining
Telecommunications
Energy
Transportation
Legal
Finance
Compliance
Corporate Development
Investment
Tax
Risk Management
Operations
Business Development
Islamic Banking
Corporate Affairs
Treasury
Governance
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Business Development Manager
Finance Director
Investment Manager
Partnership Manager
Compliance Officer
Shariah Advisor
Corporate Lawyer
Tax Consultant
Managing Partner
Investment Analyst
Risk Manager
Operations Director
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