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Business Percentage Agreement
"I need a Business Percentage Agreement to establish a 30% profit-sharing arrangement with a software development partner, including quarterly payment terms and audit rights, starting from March 2025."
1. Parties: Identification and details of all parties to the agreement
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Percentage Structure: Details of the agreed percentage split and calculation method
5. Payment Terms: Timing and method of percentage payments
6. Calculation Period: Defines the periods for which percentages are calculated
7. Reporting Requirements: Requirements for financial reporting and transparency
8. Term and Termination: Duration of agreement and termination provisions
9. Governing Law: Specification of applicable law and jurisdiction
1. Audit Rights: Right to audit financial records - use when dealing with significant amounts or complex calculations
2. Minimum Guaranteed Payments: Minimum payment guarantees regardless of performance - use when one party requires income security
3. Confidentiality: Provisions for protecting sensitive information - use when sharing sensitive business information
4. Non-Compete: Restrictions on competitive activities - use when protecting business interests is crucial
1. Calculation Method Schedule: Detailed explanation of how percentages are calculated
2. Reporting Template: Standard format for regular financial reporting
3. Excluded Items Schedule: List of items excluded from percentage calculations
4. Key Performance Indicators Schedule: Metrics used to measure performance if relevant to calculations
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