The Revenue Sharing Contract is a vital legal instrument used in Malaysian business environments when parties agree to share revenue generated from business activities, joint ventures, or collaborative projects. This document is essential when establishing business relationships where income or profits need to be divided according to predetermined terms. It addresses key aspects such as revenue calculation methods, distribution mechanisms, payment schedules, and reporting obligations, while ensuring compliance with Malaysian legal requirements including the Contracts Act 1950, Income Tax Act 1967, and other relevant legislation. The agreement is particularly valuable for businesses engaging in partnerships, platform-based businesses, content creation, distribution arrangements, or any venture where multiple parties contribute to and share in the generated revenue.
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1. Parties: Identification and details of all parties to the agreement
2. Background: Context of the agreement, business relationship, and purpose
3. Definitions and Interpretation: Definitions of key terms including 'Revenue', 'Gross Revenue', 'Net Revenue', 'Calculation Period'
4. Revenue Sharing Terms: Core terms defining the revenue sharing arrangement, percentages, and calculation methods
5. Payment Terms: Timing, method, and currency of payments, including handling of taxes
6. Reporting and Records: Requirements for financial reporting, record-keeping, and documentation
7. Audit Rights: Rights to audit financial records and dispute resolution for calculations
8. Representations and Warranties: Standard warranties about capacity to contract and accuracy of financial information
9. Confidentiality: Protection of sensitive financial and business information
10. Term and Termination: Duration of the agreement and circumstances for termination
11. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Intellectual Property Rights: Include when revenue is generated from IP-based products or services
2. Exclusivity: Include when parties agree to exclusive revenue sharing arrangements
3. Performance Obligations: Include when revenue sharing is tied to specific performance targets
4. Marketing and Promotion: Include when parties have specific responsibilities for revenue generation
5. Territory Restrictions: Include when revenue sharing applies to specific geographic areas
6. Non-Competition: Include when parties agree not to compete in related business areas
7. Force Majeure: Include when need to address extraordinary circumstances affecting revenue generation
8. Bank Guarantee/Security: Include when security for revenue sharing payments is required
1. Schedule 1 - Revenue Calculation Methodology: Detailed formula and examples of revenue calculations
2. Schedule 2 - Reporting Template: Standard format for regular revenue reports
3. Schedule 3 - Payment Procedures: Detailed payment processes including bank details
4. Schedule 4 - Excluded Revenue: List of revenue streams excluded from sharing arrangement
5. Schedule 5 - Audit Procedures: Detailed procedures for conducting financial audits
6. Appendix A - Initial Business Plan: If applicable, projected revenue and growth plans
7. Appendix B - Key Performance Indicators: Metrics for measuring revenue generation performance
Relevant legal definitions
Agreement
Applicable Law
Business Day
Calculation Period
Commencement Date
Confidential Information
Effective Date
Excluded Revenue
Financial Year
Force Majeure Event
Gross Revenue
Initial Term
Intellectual Property Rights
Malaysian Ringgit
Material Breach
Net Revenue
Payment Date
Payment Method
Permitted Purpose
Quarter
Records
Revenue Share
Revenue Share Percentage
Revenue Statement
Services
Term
Territory
Working Hours
Applicable Law
Business Day
Calculation Period
Commencement Date
Confidential Information
Effective Date
Excluded Revenue
Financial Year
Force Majeure Event
Gross Revenue
Initial Term
Intellectual Property Rights
Malaysian Ringgit
Material Breach
Net Revenue
Payment Date
Payment Method
Permitted Purpose
Quarter
Records
Revenue Share
Revenue Share Percentage
Revenue Statement
Services
Term
Territory
Working Hours
Clauses
Definitions
Revenue Calculation
Revenue Share
Payment Terms
Reporting Requirements
Audit Rights
Record Keeping
Confidentiality
Intellectual Property
Representations and Warranties
Term and Duration
Termination
Force Majeure
Dispute Resolution
Governing Law
Assignment
Notices
Entire Agreement
Severability
Amendment
Non-Competition
Exclusivity
Performance Obligations
Indemnification
Tax Compliance
Bank Accounts
Security
Waiver
Compliance with Laws
Revenue Calculation
Revenue Share
Payment Terms
Reporting Requirements
Audit Rights
Record Keeping
Confidentiality
Intellectual Property
Representations and Warranties
Term and Duration
Termination
Force Majeure
Dispute Resolution
Governing Law
Assignment
Notices
Entire Agreement
Severability
Amendment
Non-Competition
Exclusivity
Performance Obligations
Indemnification
Tax Compliance
Bank Accounts
Security
Waiver
Compliance with Laws
Relevant Industries
Technology
E-commerce
Media and Entertainment
Financial Services
Real Estate
Retail
Manufacturing
Professional Services
Healthcare
Education
Hospitality
Digital Marketing
Software Development
Telecommunications
Relevant Teams
Legal
Finance
Business Development
Operations
Commercial
Compliance
Accounting
Partnership Management
Revenue Management
Project Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Finance Director
Business Development Manager
Commercial Director
Legal Counsel
Contract Manager
Partnership Manager
Revenue Manager
Financial Controller
Compliance Officer
Operations Manager
Account Manager
Business Analyst
Project Manager
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