The Revenue Share Agreement is essential for business arrangements in Indonesia where parties agree to share revenues from specific business activities or ventures. This document is commonly used in various commercial contexts, from technology partnerships to distribution arrangements, and must comply with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and tax regulations. The agreement typically details revenue calculation methods, payment procedures, reporting obligations, audit rights, and specific performance requirements. It's particularly relevant for businesses seeking to establish collaborative ventures, platform partnerships, or commission-based arrangements in Indonesia, where clear revenue allocation and compliance with local regulations are crucial for successful business operations.
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1. Parties: Identification of all parties to the agreement, including their legal status and registration details
2. Background: Context of the agreement, business relationship, and purpose of the revenue sharing arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Revenue', 'Gross Revenue', 'Net Revenue', and calculation periods
4. Revenue Share Structure: Core terms defining the revenue sharing percentages, calculation methodology, and basis for sharing
5. Payment Terms: Payment frequency, method, currency, and timing of revenue share payments
6. Reporting and Audit Rights: Requirements for financial reporting, record-keeping, and audit rights of parties
7. Representations and Warranties: Standard and specific warranties regarding business operation and revenue recognition
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Confidentiality: Protection of confidential information shared between parties
10. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
11. Language: Compliance with Law No. 24 of 2009 regarding language requirements
12. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment rights
1. Intellectual Property Rights: Required when revenue sharing involves licensing or use of intellectual property
2. Exclusivity: Include when parties agree to exclusive revenue sharing arrangements
3. Marketing and Promotion: Needed when parties have specific obligations regarding business promotion
4. Regulatory Compliance: Required for regulated industries or when specific permits/licenses are needed
5. Force Majeure: Optional but recommended for long-term revenue sharing arrangements
6. Non-Competition: Include when parties agree to restrictions on competing activities
7. Tax Provisions: Detailed tax clauses needed for complex cross-border arrangements
1. Schedule 1 - Revenue Calculation Methodology: Detailed formula and examples of revenue calculations
2. Schedule 2 - Reporting Template: Standard format for periodic revenue reports
3. Schedule 3 - Payment Procedures: Detailed payment processes including bank account details
4. Schedule 4 - Key Performance Indicators: Metrics used to measure business performance, if relevant to revenue sharing
5. Schedule 5 - Excluded Revenue: List of revenue streams excluded from the sharing arrangement
6. Appendix A - Required Permits and Licenses: Copies or details of regulatory approvals needed
7. Appendix B - Initial Business Plan: If relevant, agreed business plan affecting revenue targets
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