Profit Distribution Agreement Template for New Zealand

1. Management Participation: Include when profit distribution is linked to management responsibilities or decision-making rights

2. Reinvestment Provisions: Include when parties may or must reinvest certain portions of profits back into the business

3. International Payments: Include when profit distributions involve cross-border payments

4. Dividend Policy: Include for corporate entities where profit distribution takes the form of dividends

5. Loss Allocation: Include when the agreement needs to address how losses are shared between parties

6. Working Capital Retention: Include when specific amounts need to be retained for business operations

7. Exit Provisions: Include when addressing profit distribution implications of a party's exit

8. Compliance with Shareholders' Agreement: Include when profit distribution must align with an existing shareholders' agreement

1. Schedule 1 - Profit Calculation Methodology: Detailed steps and formulas for calculating distributable profits

2. Schedule 2 - Distribution Waterfall: Detailed breakdown of distribution priorities and percentages

3. Schedule 3 - Accounting Principles: Specific accounting policies and principles to be applied

4. Schedule 4 - Tax Treatment: Detailed tax considerations and calculations

5. Schedule 5 - Bank Account Details: Payment details for each party

6. Schedule 6 - Reporting Template: Standard format for profit calculation and distribution reports

7. Appendix A - Initial Financial Statements: Baseline financial statements for reference

8. Appendix B - Worked Examples: Examples illustrating profit calculations and distributions