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Profit Sharing Loan Agreement
"Need a Profit Sharing Loan Agreement for a Singapore-based fintech startup, where we're lending SGD 500,000 with a 15% profit share arrangement, to be disbursed by March 2025. The borrower will need to provide monthly financial reports."
1. Parties: Identification and details of the Lender and Borrower
2. Background: Context of the loan arrangement and relationship between parties
3. Definitions: Key terms used throughout the agreement including profit calculation methodology
4. Loan Amount and Purpose: Specification of the loan amount and its intended use
5. Profit Sharing Mechanism: Details of how profits will be calculated and shared between parties
6. Payment Terms: Terms for repayment of principal and profit shares, including payment schedule
7. Financial Reporting: Requirements for financial statements, profit calculations and reporting obligations
8. Default and Remedies: Events of default, consequences, and available remedies
9. Governing Law: Specification of Singapore law as governing law and jurisdiction
1. Security: Details of any collateral or security arrangements for the loan
2. Guarantees: Terms of any personal or corporate guarantees provided
3. Assignment: Rights and restrictions regarding assignment of the agreement
4. Insurance: Requirements for insurance coverage of business or assets
1. Schedule 1 - Profit Calculation Methodology: Detailed methodology and formulas for calculating profits
2. Schedule 2 - Payment Schedule: Detailed timeline and structure of payments including profit share distributions
3. Schedule 3 - Required Financial Reports: Format and content requirements for periodic financial reporting
4. Schedule 4 - Security Details: Detailed description of any security or collateral provided
5. Schedule 5 - Form of Guarantee: Template form of guarantee to be executed by guarantors if applicable
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