Profit Sharing Clause Draft

Summary

To draft a profit-sharing clause favoring Masotra, consider increasing Masotras share of net profits, setting conditions for share increases, and prioritizing Masotra in profit distribution. For termination, ensure Masotra retains net profits and inventory, and can terminate the agreement if Global Dynamic Partners breaches any material term.

Full Conversation

The agreement will be based on: *. Contract between : Global Dynamic Partners S.A.R.L. Based in Lebanon and Masotra DMCC based in UAE *. Subject : Global Dynamic Partners role will be based on investment in cash to Masotra in order to purchase cigarettes from UAE and export them to Angola. *. Masotra will be only responsible for : Payment to the factory in UAE, Invoicing, Accounting, Distribution, sales and collection from clients. *. Global Dynamic Partners will be responsible for investment, marketing and advertisement strategies, coordination with our team in Angola. *. Investment will be held into account till the agreement is canceled. *. Global Dynamic Partners SARL will benefit from *% of the net profit margin made from sales as Masotra will have %* from it. *. Profit Margin will be used to grow our working capital for the first One year. The agreement will be based on: *. Contract between : Global Dynamic Partners S.A.R.L. Based in Lebanon and Masotra DMCC based in UAE *. Subject : Global Dynamic Partners role will be based on investment in cash to Masotra in order to purchase cigarettes from UAE and export them to Angola. *. Masotra will be only responsible for : Payment to the factory in UAE, Invoicing, Accounting, Distribution, sales and collection from clients. *. Global Dynamic Partners will be responsible for investment, marketing and advertisement strategies, coordination with our team in Angola. *. Investment will be held into account till the agreement is canceled. *. Global Dynamic Partners SARL will benefit from *% of the net profit margin made from sales as Masotra will have %* from it. *. Profit Margin will be used to grow our working capital for the first One year.
To draft a profit-sharing clause more favorable to Masotra, you could consider the following adjustments:
- Increase Masotra's share of the net profit margin.
- Specify conditions under which Masotra's share may increase, such as hitting certain sales targets.
- Include provisions for Masotra to receive priority in profit distribution.
Here’s an example clause:
"Masotra DMCC shall receive *% of the net profit margin derived from the sales, and Global Dynamic Partners S.A.R.L. shall receive *%. Additionally, if annual sales exceed $X, Masotra DMCC’s share shall increase by an additional *%."
Would you like to specify any particular conditions or percentages?
GIVE ANOTHER CLUASE MORE PROFESSIONAL
Certainly, here’s a more professionally worded profit-sharing clause:
---
"Masotra DMCC shall be entitled to *% of the net profit margin derived from the sales of the purchased cigarettes. Global Dynamic Partners S.A.R.L. shall be entitled to *% of the net profit margin. Furthermore, should the annual sales exceed $X, Masotra DMCC’s share shall increase by an additional *%. Profits shall be distributed quarterly, with priority given to fulfilling Masotra's operational requirements."
---
Would you like to specify the exact sales target or any other conditions?
another one
Certainly. Here's another professionally worded profit-sharing clause:
---
"Masotra DMCC shall be entitled to *% of the net profit margin derived from the sales of the purchased cigarettes. Global Dynamic Partners S.A.R.L. shall be entitled to *% of the net profit margin. Additionally, if annual sales surpass $X, Masotra DMCC’s share shall increase by an additional *%. Profit distributions will occur quarterly, prioritizing Masotra's operational and growth needs. Any further profit shall then be allocated according to the agreed percentages."
---
Would you like to include any specific operational or growth benchmarks?
termination clause related to this agreement
Certainly, here’s a professionally worded termination clause for the agreement between Global Dynamic Partners S.A.R.L. and Masotra DMCC:
---
**Termination Clause:**
Either party may terminate this Agreement by providing 60 days' written notice to the other party. Upon termination:
- All outstanding financial obligations must be settled within 30 days.
- Global Dynamic Partners S.A.R.L. shall receive any net profits accrued up to the date of termination.
- Any remaining inventory will be handled as mutually agreed upon.
Should either party breach any material term of this Agreement and fail to rectify such breach within 30 days of receiving written notice, the non-breaching party may terminate this Agreement immediately.
---
Would you like to include any specific conditions that could lead to immediate termination?
i need the clause to be in the interest MASOTRA
Certainly, here’s a termination clause that is more in the interest of Masotra DMCC:
---
**Termination Clause:**
Either party may terminate this Agreement by providing 60 days' written notice to the other party. Upon termination:
- All outstanding financial obligations must be settled within 30 days.
- Masotra DMCC shall receive any net profits accrued up to the date of termination.
- Any remaining inventory will be retained by Masotra DMCC.
- Should Global Dynamic Partners S.A.R.L. breach any material term of this Agreement and fail to rectify such breach within 15 days of receiving written notice, Masotra DMCC may terminate this Agreement immediately.
---
Would you like to include any specific financial safeguards or additional conditions to further protect Masotra's interests?