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1. Parties: Identification of all parties to the agreement, including their legal status and contact details
2. Background: Context of the agreement, business relationship, and purpose of the profit distribution arrangement
3. Definitions: Defined terms used throughout the agreement, including 'Profits', 'Distribution Period', 'Calculation Date', etc.
4. Profit Calculation: Method and basis for calculating distributable profits, including applicable accounting principles
5. Distribution Mechanism: Process, timing, and method of profit distributions, including payment procedures
6. Distribution Ratios: Agreed proportions or percentages of profit distribution among parties
7. Reporting Requirements: Financial reporting obligations, documentation, and verification procedures
8. Party Obligations: Specific responsibilities of each party regarding the profit distribution process
9. Term and Termination: Duration of the agreement and circumstances for termination
10. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction over disputes
11. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions
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: Ƶ 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
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