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The Share Profit Agreement is a crucial document used in Nigerian business relationships where multiple parties agree to share in the profits of a business venture. It is particularly relevant in joint ventures, partnerships, and investment arrangements where parties contribute different resources or expertise but wish to share in the financial success of the enterprise. The agreement must comply with Nigerian legislation, particularly the Companies and Allied Matters Act (CAMA) 2020, and typically includes detailed provisions for profit calculation, distribution mechanisms, financial reporting, tax considerations, and dispute resolution. This document is essential for establishing clear frameworks for profit sharing, preventing potential conflicts, and ensuring transparent financial arrangements between business parties.

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

2. Background: Context of the agreement, including the business relationship and purpose of the profit-sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Profits', 'Financial Year', 'Business', etc.

4. Profit Calculation: Detailed methodology for calculating distributable profits, including accounting principles to be applied

5. Profit Distribution: Terms and mechanisms for profit distribution, including percentages, timing, and payment methods

6. Financial Records and Reporting: Requirements for maintaining financial records, preparation of accounts, and reporting obligations

7. Management and Control: Decision-making processes and management rights related to profit-sharing matters

8. Tax Provisions: Handling of tax matters and responsibilities of each party regarding tax payments

9. Confidentiality: Obligations regarding confidential information and business secrets

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

12. Miscellaneous: Standard boilerplate clauses including notices, amendments, and entire agreement provisions