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1. Parties: Identification and details of both parties entering into the profit sharing agreement
2. Background: Context of the agreement, including the business relationship and purpose of the profit sharing arrangement
3. Definitions: Key terms used throughout the agreement, including 'Profit', 'Accounting Period', 'Business Day', etc.
4. Scope of Cooperation: Details of the business activities covered by the profit sharing arrangement
5. Profit Calculation: Definition and methodology for calculating distributable profits, including allowable deductions and expenses
6. Distribution Mechanism: Process and timing for the 50-50 profit distribution, including payment methods
7. Accounting and Records: Requirements for maintaining financial records, accounting standards, and audit rights
8. Obligations of the Parties: Specific responsibilities and commitments of each party
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Confidentiality: Protection of sensitive business information shared between parties
11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes
12. Miscellaneous: Standard legal provisions including severability, entire agreement, and amendments
1. Non-Competition: Restrictions on competing activities, used when parties operate in the same industry
2. Intellectual Property Rights: IP ownership and usage rights, included when the cooperation involves creation or use of IP
3. Force Majeure: Provisions for extraordinary events, important for long-term agreements or volatile industries
4. Employee Non-Solicitation: Prevents hiring of each other's employees, relevant when parties have valuable human resources
5. Dispute Resolution: Alternative dispute resolution procedures, useful for international parties or complex arrangements
6. Working Capital Contributions: Required when parties need to contribute capital to the shared business activities
7. Exit Mechanisms: Procedures for one party to exit the arrangement, important for long-term partnerships
1. Schedule 1: Calculation Methodology: Detailed formula and examples for profit calculation
2. Schedule 2: Accounting Principles: Specific accounting standards and practices to be followed
3. Schedule 3: Initial Business Plan: Projected revenues, costs, and profit expectations
4. Schedule 4: Authorized Representatives: List of persons authorized to act on behalf of each party
5. Appendix A: Reporting Template: Standard format for periodic financial reporting
6. Appendix B: Bank Account Details: Banking information for profit distributions
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Construction
Creative Industries
Consulting
Real Estate
Healthcare
Education
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Software Development
E-commerce
Legal
Finance
Business Development
Operations
Commercial
Executive Leadership
Accounting
Compliance
Partnership Management
Business Owner
Managing Director
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Business Development Manager
Partnership Manager
Project Manager
Startup Founder
Entrepreneur
Finance Director
Commercial Director
Operations Manager
Contract Manager
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