Profit Distribution Agreement Template for Canada

1. Tax Provisions: Detailed tax handling and responsibilities - include when parties are in different tax jurisdictions or specific tax treatment is required

2. Audit Rights: Rights to audit profit calculations - include when large sums are involved or there's complexity in calculation

3. Reinvestment Provisions: Terms for reinvesting profits - include when parties agree to potential profit reinvestment

4. Dispute Resolution: Detailed dispute resolution procedures - include when parties prefer arbitration or mediation over court proceedings

5. Force Majeure: Provisions for handling extraordinary events - include when external factors could significantly impact profit generation

6. Confidentiality: Confidentiality obligations - include when sensitive financial information is involved

7. Non-Competition: Restrictions on competitive activities - include when parties have access to sensitive business information

8. Assignment Rights: Rights to assign distribution entitlements - include when transfer of rights might be contemplated

1. Profit Calculation Formula: Detailed mathematical formula and methodology for calculating distributable profits

2. Distribution Timeline: Calendar of calculation dates, distribution dates, and reporting deadlines

3. Excluded Costs: List of costs and expenses to be excluded from profit calculations

4. Required Financial Statements: Templates and formats for required financial reporting

5. Authorized Representatives: List of persons authorized to approve distributions and receive notices

6. Bank Account Details: Banking information for making distributions

7. Tax Forms: Required tax forms and documentation for distributions

8. Sample Calculations: Examples of profit calculations and distributions for illustration