Revenue Share Agreement for Malta

Revenue Share Agreement Template for Malta

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Revenue Share Agreement

"I need a Revenue Share Agreement for my e-commerce platform where marketplace sellers will receive 70% of the revenue from their sales, with monthly payments and quarterly performance reviews, to be implemented from January 2025 under Maltese law."

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What is a Revenue Share Agreement?

Revenue Share Agreements are essential business documents used when two or more parties agree to share revenue generated from specific business activities. This document type is particularly relevant in Malta's growing digital economy and financial services sector, where complex revenue-sharing arrangements are common. The agreement must comply with Maltese commercial law, tax regulations, and financial services requirements. A Revenue Share Agreement typically includes detailed mechanisms for calculating shared revenue, payment terms, reporting obligations, audit rights, and dispute resolution procedures. It's commonly used in platform businesses, digital services, agency relationships, and joint business ventures where parties contribute different resources or services to generate shared revenue streams.

What sections should be included in a Revenue Share Agreement?

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

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Revenue', 'Gross Revenue', 'Net Revenue', and 'Excluded Revenue'

4. Revenue Share Terms: Core terms defining the revenue sharing arrangement, percentages, and basis of calculation

5. Payment Terms: Timing, method, and currency of payments, including payment procedures and bank details

6. Reporting and Audit Rights: Requirements for financial reporting, record-keeping, and audit provisions

7. Representations and Warranties: Standard and specific warranties regarding business operations and revenue reporting

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

9. Confidentiality: Provisions protecting confidential information shared between parties

10. Governing Law and Jurisdiction: Specification of Maltese law as governing law and jurisdiction for disputes

11. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

What sections are optional to include in a Revenue Share Agreement?

1. Intellectual Property Rights: Include when the revenue sharing involves licensing or use of intellectual property

2. Non-Competition: Include when parties need to be restricted from competing activities

3. Data Protection: Include when personal data or sensitive business data will be shared

4. Marketing and Promotion: Include when parties have specific marketing obligations or restrictions

5. Minimum Performance Requirements: Include when setting minimum revenue or performance targets

6. Change of Control: Include when agreement needs to address ownership changes in either party

7. Territory Restrictions: Include when revenue sharing is limited to specific geographic areas

What schedules should be included in a Revenue Share Agreement?

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

2. Excluded Revenue Categories: List of revenue types explicitly excluded from the sharing arrangement

3. Reporting Template: Standard format for regular revenue reports and financial statements

4. Contact Details and Notice Information: Comprehensive contact information for all parties and key personnel

5. Bank Account Details: Banking information for revenue share payments

6. Compliance Requirements: Specific Maltese legal and regulatory requirements affecting the arrangement

7. Service Level Agreement: If applicable, metrics and standards for service delivery

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

Relevant legal definitions
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Technology

E-commerce

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Legal

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Relevant Roles

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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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