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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
Authors
Applicable Laws
Business Day
Commencement Date
Confidential Information
Distributable Profits
Effective Date
Excluded Costs
Financial Year
Force Majeure Event
Gross Profit
Initial Term
Net Profit
Operating Expenses
Parties
Profit Share
Profit Share Percentage
Profit Sharing Period
Quarter
Relevant Business
Revenue
SGD
Singapore Dollars
Term
Territory
Working Capital
Calculation of Profits
Distribution of Profits
Payment Terms
Accounting and Records
Reporting Requirements
Audit Rights
Confidentiality
Non-Competition
Representations and Warranties
Term and Duration
Termination
Force Majeure
Assignment and Transfer
Notices
Dispute Resolution
Governing Law
Amendment and Modification
Entire Agreement
Severability
Waiver
Further Assurance
Costs and Expenses
Third Party Rights
Counterparts
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