Consultant Profit Sharing Agreement Template for Singapore

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Key Requirements PROMPT example:

Consultant Profit Sharing Agreement

"I need a Consultant Profit Sharing Agreement for my Singapore-based tech startup that will engage a strategy consultant for 18 months starting March 2025, with a profit-sharing model of 5% of net profits from new product launches."

Document background
The Consultant Profit Sharing Agreement is essential when businesses wish to align consultant compensation with company performance through profit-sharing mechanisms. This document, governed by Singapore law, provides a comprehensive framework for defining consulting services, profit calculation methodologies, payment structures, and associated terms. It's particularly valuable for long-term consulting engagements where traditional fee structures may not adequately serve both parties' interests. The agreement ensures compliance with Singapore's regulatory requirements while protecting both parties' rights and obligations.
Suggested Sections

1. Parties: Identification and details of the consulting firm/individual and the client

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including profit calculation methodology

4. Scope of Services: Detailed description of consulting services to be provided

5. Profit Sharing Structure: Formula and mechanisms for calculating and distributing profits

6. Payment Terms: Timing, method, and conditions for profit share payments

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information shared during the consultation

9. Representations and Warranties: Statements of fact and assurances by both parties

10. General Provisions: Standard contractual provisions including governing law, notices, and entire agreement

Optional Sections

1. Non-Competition: Restrictions on competitive activities during and after the agreement term

2. Intellectual Property Rights: Ownership and usage rights of IP created during consultation

3. International Provisions: Cross-border considerations and requirements for international consulting

4. Force Majeure: Provisions for unforeseen circumstances preventing performance

5. Data Protection: Compliance with Singapore Personal Data Protection Act and data handling procedures

Suggested Schedules

1. Schedule 1: Profit Calculation Methodology: Detailed formula and examples of profit calculations

2. Schedule 2: Service Specification: Detailed scope of consulting services and deliverables

3. Schedule 3: Key Performance Indicators: Metrics for measuring consultant performance

4. Schedule 4: Reporting Requirements: Templates and timing for financial and performance reporting

5. Schedule 5: Fee Structure: Base fees, profit sharing percentages, and payment schedules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Civil Law Act (Cap. 43): Primary legislation governing contract formation, validity, and enforcement in Singapore, based on English common law principles

Employment Act (Cap. 91): Must be considered to ensure clear distinction between consultant and employee status, avoiding unintended employment relationships

Income Tax Act (Cap. 134): Governs taxation of consulting income, profit-sharing arrangements, and withholding tax requirements for non-resident consultants

Goods and Services Tax Act: Relevant for GST implications on consulting services and profit-sharing payments

Competition Act (Cap. 50B): Ensures profit-sharing arrangements comply with competition law and don't constitute anti-competitive practices

Personal Data Protection Act 2012: Regulates collection, use, and disclosure of personal data in the course of consulting arrangements

Companies Act (Cap. 50): Relevant for corporate structure considerations and implementation of profit-sharing mechanisms

Copyright Act: Protects intellectual property rights in consulting deliverables and work products

Patents Act: Governs protection of patentable innovations developed during consulting engagement

Trade Marks Act: Relevant for protection of trademarks and brand-related consulting work

Arbitration Act: Framework for alternative dispute resolution through arbitration in consulting agreements

Mediation Act: Provides structure for mediation as a dispute resolution mechanism

Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act: Ensures compliance with anti-money laundering regulations in profit-sharing arrangements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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