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Profit Sharing Agreement For Investors
"I need a Profit Sharing Agreement For Investors for my Singapore-based tech startup, where three angel investors will receive 20% of quarterly profits starting March 2025, with special provisions for early exit options after 18 months."
1. Parties: Identification and details of all parties involved in the agreement
2. Background: Context and purpose of the profit sharing arrangement
3. Definitions: Key terms used throughout the agreement
4. Investment Terms: Amount, nature, and timing of investment
5. Profit Sharing Structure: Detailed mechanism for calculating and distributing profits
6. Payment Terms: Timing and method of profit distribution
7. Reporting Requirements: Financial reporting obligations and frequency
8. Term and Termination: Duration of agreement and termination provisions
9. Governing Law: Specification of Singapore law as governing law
1. Exit Provisions: Terms for investor exit when dealing with long-term investments
2. Non-Competition: Restrictions on competitive activities when protecting business interests is crucial
3. Tag-Along Rights: Rights to join in sale of shares when multiple investors are involved
4. Management Rights: Investor's involvement in management decisions for active investors seeking management participation
1. Investment Schedule: Detailed breakdown of investment amounts and timing
2. Profit Calculation Methodology: Detailed formula and examples of profit calculations
3. Financial Reporting Template: Standard format for required financial reports
4. Due Diligence Documents: List of completed due diligence items
5. Relevant Corporate Resolutions: Copies of corporate approvals for the agreement
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