Revenue Share Agreement

Revenue Share Agreement Template for Denmark

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Document background

The Revenue Share Agreement is essential for business arrangements where parties agree to share revenue generated from specific products, services, or joint business activities under Danish law. This document is commonly used in various commercial contexts, from technology partnerships to content distribution agreements, and is particularly relevant for digital platforms, service providers, and collaborative business ventures. The agreement must comply with Danish legal requirements, including the Danish Contracts Act (Aftaleloven) and relevant commercial regulations. It typically includes detailed provisions for revenue calculation, payment mechanisms, reporting obligations, and audit rights, ensuring transparency and enforceability. The document is crucial for establishing clear financial terms and maintaining long-term business relationships while providing legal certainty under Danish jurisdiction.

Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the agreement, business relationship, and purpose of the revenue sharing arrangement

3. Definitions: Detailed definitions of key terms, especially 'Revenue', 'Gross Revenue', 'Net Revenue', and other financial terms

4. Revenue Share Terms: Core terms including revenue share percentages, calculation methodology, and included/excluded revenue streams

5. Payment Terms: Payment frequency, method, currency, and timing of revenue share payments

6. Reporting and Calculations: Requirements for revenue reporting, calculation verification, and supporting documentation

7. Audit Rights: Rights to audit revenue calculations, records access, and audit process

8. Confidentiality: Protection of confidential information shared during the revenue sharing arrangement

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Representations and Warranties: Basic warranties about capacity to contract and accuracy of revenue reporting

11. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

12. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Minimum Guarantee: Used when there's a guaranteed minimum payment regardless of actual revenue

2. Marketing and Promotion: Include when parties have specific marketing obligations that affect revenue generation

3. Intellectual Property: Required when IP rights are relevant to the revenue-generating activities

4. Non-Competition: Add when parties agree to restrictions on competing activities

5. Force Majeure: Include for protection against unforeseen events affecting revenue generation

6. Data Protection: Required when personal data processing is involved in revenue calculation or reporting

7. Anti-Corruption: Include for international arrangements or when dealing with public sector entities

8. Change of Control: Add when revenue share rights should be affected by ownership changes

Suggested Schedules

1. Revenue Calculation Methodology: Detailed explanation of how revenue is calculated, including formulas and examples

2. Excluded Revenue: List of specific revenue streams excluded from the sharing arrangement

3. Reporting Template: Standard format for regular revenue reports

4. Product or Service Description: Details of products or services generating the shared revenue

5. Key Performance Indicators: Metrics used to measure performance and calculate revenue share

6. Bank Account Details: Payment account information for all parties

7. Audit Procedures: Detailed procedures for conducting revenue audits

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