Revenue Sharing Contract for Switzerland

Revenue Sharing Contract Template for Switzerland

A Revenue Sharing Contract under Swiss law is a legally binding agreement that establishes the terms and conditions for sharing revenue between two or more parties. The document, governed by Swiss contract law and specifically the Swiss Code of Obligations, outlines the mechanism for calculating shared revenue, payment terms, reporting requirements, and audit rights. It includes provisions for revenue calculation methodology, payment schedules, record-keeping obligations, and dispute resolution procedures, all while ensuring compliance with Swiss regulatory requirements and tax implications.

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What is a Revenue Sharing Contract?

The Revenue Sharing Contract is essential for business arrangements where multiple parties agree to share revenue generated from specific activities, products, or services. This document, governed by Swiss law, is commonly used in various business contexts including platform partnerships, content distribution, technology licensing, and joint ventures. The contract defines how revenue is calculated, shared, and paid, while ensuring compliance with Swiss regulatory requirements, particularly the Swiss Code of Obligations. It includes crucial elements such as revenue calculation methodologies, payment terms, audit rights, and reporting obligations. This type of agreement is particularly relevant in today's digital economy where collaborative business models and platform-based businesses are increasingly common.

What sections should be included in a Revenue Sharing Contract?

1. Parties: Identification of the contracting parties with full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement, including 'Revenue', 'Gross Revenue', 'Net Revenue', and 'Calculation Period'

4. Revenue Sharing Structure: Core terms defining the revenue sharing arrangement, including percentages and calculation methodology

5. Revenue Calculation and Reporting: Detailed provisions on how revenue will be calculated, frequency of calculations, and reporting requirements

6. Payment Terms: Terms governing payment frequency, method, currency, and timing

7. Audit Rights: Rights and procedures for auditing revenue calculations and related records

8. Record Keeping: Obligations regarding maintenance of financial records and supporting documentation

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Provisions protecting confidential information shared between parties

11. Representations and Warranties: Standard representations and warranties from both parties

12. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes

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

What sections are optional to include in a Revenue Sharing Contract?

1. Minimum Guaranteed Revenue: Used when there is a guaranteed minimum payment regardless of actual revenue

2. Excluded Revenue: Required when certain types of revenue are to be excluded from the sharing calculation

3. Marketing and Promotion: Include when parties have specific marketing obligations related to revenue generation

4. Intellectual Property Rights: Necessary when IP is involved in the revenue-generating activities

5. Non-Competition: Include when parties agree to restrictions on competing activities

6. Force Majeure: Optional clause for circumstances preventing revenue generation

7. Change of Control: Include when revenue sharing rights should be affected by ownership changes

8. Territory Restrictions: Used when revenue sharing applies to specific geographic areas

What schedules should be included in a Revenue Sharing Contract?

1. Schedule 1 - Revenue Calculation Methodology: Detailed explanation of revenue calculations, including formulas and examples

2. Schedule 2 - Reporting Template: Standard format for regular revenue reports

3. Schedule 3 - Excluded Costs and Deductions: List of costs that can be deducted before revenue sharing calculation

4. Schedule 4 - Key Performance Indicators: Metrics used to measure performance and impact on revenue sharing

5. Appendix A - Contact Details: List of key contacts for operational and financial matters

6. Appendix B - Banking Details: Payment information for revenue sharing transfers

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Media and Entertainment

E-commerce

Financial Services

Software Development

Digital Marketing

Retail

Healthcare

Real Estate

Professional Services

Manufacturing

Telecommunications

Gaming and Interactive Entertainment

Hospitality

Relevant Teams

Legal

Finance

Business Development

Commercial

Operations

Sales

Compliance

Revenue

Partnerships

Accounting

Strategy

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Revenue Officer

Business Development Manager

Commercial Director

Partnership Manager

Legal Counsel

Contract Manager

Finance Manager

Revenue Analyst

Operations Director

Compliance Officer

Account Manager

Sales Director

Industries
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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