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Project Profit Sharing Agreement
"I need a Project Profit Sharing Agreement for a Manila-based real estate development project starting March 2025, involving three local investors and one foreign investor, with profit distribution quarterly and a 70-30 split between developers and investors."
1. Parties: Identification and details of all parties entering into the agreement
2. Background: Context of the agreement, including project overview and parties' intentions
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Project Scope: Detailed description of the project, its objectives, and deliverables
5. Roles and Responsibilities: Specific duties and obligations of each party in the project
6. Financial Contributions: Details of initial and ongoing financial contributions required from each party
7. Profit Definition and Calculation: Clear methodology for calculating project profits, including revenue recognition and cost allocation
8. Profit Distribution: Mechanism and formula for sharing profits among parties, including timing and payment methods
9. Management and Control: Decision-making processes and project governance structure
10. Accounting and Records: Requirements for financial reporting, auditing, and record-keeping
11. Term and Termination: Duration of the agreement and circumstances for early termination
12. Confidentiality: Protection of confidential information and trade secrets
13. Dispute Resolution: Procedures for resolving disagreements between parties
14. Governing Law: Specification of Philippine law as governing law and jurisdiction
15. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Intellectual Property Rights: Allocation of IP rights when project involves creation of intellectual property
2. Employment and Labor: Required when profit sharing extends to employees or affects labor relationships
3. Insurance and Indemnification: Specific insurance requirements and indemnification provisions for high-risk projects
4. Environmental Compliance: Required for projects with environmental impact or requirements
5. Foreign Investment Provisions: Required when foreign entities are involved in the project
6. Technology Transfer: Needed when project involves transfer of technology or technical knowledge
7. Competition and Non-Compete: Restrictions on competitive activities, if applicable
8. Force Majeure: Provisions for handling unforeseen circumstances affecting project execution
1. Schedule A - Project Description: Detailed technical specifications and scope of the project
2. Schedule B - Financial Model: Detailed financial projections and profit calculation methodology
3. Schedule C - Profit Distribution Formula: Mathematical formulas and examples of profit sharing calculations
4. Schedule D - Initial Contributions: Itemized list of initial contributions from each party
5. Schedule E - Key Performance Indicators: Metrics for measuring project success and profit triggers
6. Schedule F - Management Structure: Organizational chart and management procedures
7. Appendix 1 - Required Permits and Licenses: List of regulatory approvals needed for the project
8. Appendix 2 - Timeline and Milestones: Project schedule and key delivery dates
9. Appendix 3 - Accounting Principles: Specific accounting standards and procedures to be followed
Authors
Real Estate Development
Infrastructure
Mining and Natural Resources
Technology and Software Development
Manufacturing
Renewable Energy
Agriculture and Agribusiness
Tourism and Hospitality
Construction
Telecommunications
Legal
Finance
Corporate Development
Business Development
Operations
Compliance
Risk Management
Project Management
Investment
Strategic Planning
Chief Executive Officer
Chief Financial Officer
Project Director
Legal Counsel
Business Development Manager
Investment Manager
Operations Director
Finance Manager
Corporate Secretary
Compliance Officer
Project Manager
Joint Venture Manager
Commercial Director
Risk Manager
Strategic Planning Director
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