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Drafting Profit Share Agreement
Summary
A legally binding profit share agreement should include key elements such as parties involved, profit share ratio, payment terms, duration, termination, and dispute resolution. For termination, consider mutual terms like 90 days notice or immediate termination for breach. Dispute resolution can involve negotiation, mediation, and arbitration under LCIA rules. The agreement should cover specific business activities, like those of Vocaira, and be governed by UK law. While the draft may seem short, its enforceability depends on clarity and completeness. Consulting a solicitor can ensure it meets legal requirements.Full Conversation
I want to draft a legally binding profit share agreement between my UK registered business and an external expert advisor.
Hi ****! To help you draft a legally binding profit share agreement, consider including the following key elements:
- Parties Involved: Clearly state the names and roles of your business and the expert advisor.
- Profit Share Ratio: Specify the percentage of profits each party will receive.
- Payment Terms: Outline when and how payments will be made.
- Duration: Define the length of the agreement.
- Termination: Conditions under which the agreement can be terminated.
- Dispute Resolution: Process for resolving any disagreements.
Would you like more details on any of these points?
- Parties Involved: Clearly state the names and roles of your business and the expert advisor.
- Profit Share Ratio: Specify the percentage of profits each party will receive.
- Payment Terms: Outline when and how payments will be made.
- Duration: Define the length of the agreement.
- Termination: Conditions under which the agreement can be terminated.
- Dispute Resolution: Process for resolving any disagreements.
Would you like more details on any of these points?
Business: Sentigenix Ltd, Consultant: Sarah Jane Stephenson, Profit share: *% of NET profit (EBITDA), Payment Terms: Upon invoice at the End of each financial year, Duration: Indefinite, Termination: please suggest standard mutual terms, Dispute Resolution: please suggest standard mutual terms. Other information: This agreement exclusively covers business activities, sales and revenue generated by Vocaira, an app developed by Sentigenix Ltd
For Termination and Dispute Resolution terms, you may consider the following:
Termination:
- Either party may terminate the agreement with 90 days' written notice.
- Immediate termination if either party breaches any material term of the agreement and fails to remedy the breach within 30 days of notice.
- Termination due to insolvency or bankruptcy of either party.
Dispute Resolution:
- Any disputes shall be resolved through negotiation in good faith.
- If unresolved, disputes shall be referred to mediation conducted by an independent mediator.
- If mediation fails, disputes shall be subject to arbitration in accordance with the rules of the London Court of International Arbitration (LCIA).
Would you like more details on these points or any other aspect?
Termination:
- Either party may terminate the agreement with 90 days' written notice.
- Immediate termination if either party breaches any material term of the agreement and fails to remedy the breach within 30 days of notice.
- Termination due to insolvency or bankruptcy of either party.
Dispute Resolution:
- Any disputes shall be resolved through negotiation in good faith.
- If unresolved, disputes shall be referred to mediation conducted by an independent mediator.
- If mediation fails, disputes shall be subject to arbitration in accordance with the rules of the London Court of International Arbitration (LCIA).
Would you like more details on these points or any other aspect?
Draft the full document
Sure, ****! Below is a draft of your profit share agreement:
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Profit Share Agreement
This Profit Share Agreement (the "Agreement") is made and entered into as of [Effective Date] by and between:
Sentigenix Ltd ("Company"), with its principal place of business at [Company Address], and
Sarah Jane Stephenson ("Consultant"), with an address at [Consultant Address].
*. Parties Involved:
The Company and the Consultant are collectively referred to as the "Parties."
*. Profit Share Ratio:
The Consultant shall be entitled to receive *% of the net profit (EBITDA) generated by the business activities, sales, and revenue of Vocaira, an app developed by Sentigenix Ltd.
*. Payment Terms:
The profit share payments shall be made upon invoice at the end of each financial year.
*. Duration:
This Agreement shall commence on the Effective Date and shall continue indefinitely until terminated as provided herein.
*. Termination:
- Either Party may terminate this Agreement with 90 days' written notice.
- Immediate termination if either Party breaches any material term of this Agreement and fails to remedy the breach within30 days of notice.
- Termination due to insolvency or bankruptcy of either Party.
*. Dispute Resolution:
- Any disputes arising out of or in connection with this Agreement shall be resolved through negotiation in good faith.
- If unresolved, disputes shall be referred to mediation conducted by an independent mediator.
- If mediation fails, disputes shall be subject to arbitration in accordance with the rules of the London Court of International Arbitration (LCIA).
*. Scope of Agreement:
This Agreement exclusively covers the business activities, sales, and revenue generated by Vocaira, an app developed by Sentigenix Ltd.
*. Governing Law:
This Agreement shall be governed by and construed in accordance with the laws of England and Wales.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
Sentigenix Ltd
By: ___________________________
Name: [Name of Authorized Person]
Title: [Title]
Sarah Jane Stephenson
By: ___________________________
Name: Sarah Jane Stephenson
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Would you like to make any adjustments or add more details to this draft?
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Profit Share Agreement
This Profit Share Agreement (the "Agreement") is made and entered into as of [Effective Date] by and between:
Sentigenix Ltd ("Company"), with its principal place of business at [Company Address], and
Sarah Jane Stephenson ("Consultant"), with an address at [Consultant Address].
*. Parties Involved:
The Company and the Consultant are collectively referred to as the "Parties."
*. Profit Share Ratio:
The Consultant shall be entitled to receive *% of the net profit (EBITDA) generated by the business activities, sales, and revenue of Vocaira, an app developed by Sentigenix Ltd.
*. Payment Terms:
The profit share payments shall be made upon invoice at the end of each financial year.
*. Duration:
This Agreement shall commence on the Effective Date and shall continue indefinitely until terminated as provided herein.
*. Termination:
- Either Party may terminate this Agreement with 90 days' written notice.
- Immediate termination if either Party breaches any material term of this Agreement and fails to remedy the breach within30 days of notice.
- Termination due to insolvency or bankruptcy of either Party.
*. Dispute Resolution:
- Any disputes arising out of or in connection with this Agreement shall be resolved through negotiation in good faith.
- If unresolved, disputes shall be referred to mediation conducted by an independent mediator.
- If mediation fails, disputes shall be subject to arbitration in accordance with the rules of the London Court of International Arbitration (LCIA).
*. Scope of Agreement:
This Agreement exclusively covers the business activities, sales, and revenue generated by Vocaira, an app developed by Sentigenix Ltd.
*. Governing Law:
This Agreement shall be governed by and construed in accordance with the laws of England and Wales.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
Sentigenix Ltd
By: ___________________________
Name: [Name of Authorized Person]
Title: [Title]
Sarah Jane Stephenson
By: ___________________________
Name: Sarah Jane Stephenson
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Would you like to make any adjustments or add more details to this draft?
It seems very short. Would this carry legal weight?
Hi ****! The length of a legal document doesn't necessarily determine its enforceability. The key is whether it clearly outlines the rights and obligations of the parties involved. Your draft covers the essential elements. However, you might consider having a solicitor review it to ensure it aligns with your specific needs and legal requirements.
Would you like more information on finding a solicitor or any other aspect of this agreement?
Would you like more information on finding a solicitor or any other aspect of this agreement?
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