Production Payment Agreements are commonly used in resource-based and manufacturing industries as alternative financing instruments. Under Singapore law, these agreements provide a structured framework for investors to receive returns based on actual production output rather than fixed interest payments. The agreement typically defines the scope of production subject to payment rights, calculation methodologies, payment schedules, and security arrangements. A Production Payment Agreement is particularly useful when traditional debt financing is not suitable or when parties prefer to link returns directly to production performance. The document incorporates Singapore's comprehensive commercial law framework, including relevant provisions from the Contracts Act and Securities and Futures Act.

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background/Recitals: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including references to Singapore legislation such as Contracts Act, Civil Law Act, and Companies Act

4. Production Payment Terms: Core terms defining the production payment, calculation method, and payment schedule in compliance with Singapore financial regulations

5. Property Description: Detailed description of the property or asset generating the production

6. Payment Mechanics: Procedures for calculating, making and receiving payments, incorporating relevant Singapore banking and payment services regulations

7. Representations and Warranties: Standard assurances from both parties, including compliance with Singapore regulatory requirements

8. Term and Termination: Duration of agreement and termination provisions

9. Governing Law: Specification of Singapore law and jurisdiction, including reference to relevant legislation and common law principles