Fee Share Agreement

Fee Share Agreement Template for Denmark

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Document background

The Fee Share Agreement is essential for businesses and professionals operating in Denmark who wish to formalize arrangements for sharing fees, commissions, or revenues. This document is particularly relevant when two or more parties collaborate to provide services or generate business opportunities and need to establish clear terms for revenue distribution. Common applications include professional service partnerships, referral arrangements, and joint business ventures. The agreement must comply with Danish law, including the Danish Contracts Act, Financial Business Act, and relevant tax regulations. It typically includes detailed provisions for calculation methodologies, payment procedures, reporting requirements, and audit rights, while ensuring compliance with Danish financial regulations and GDPR requirements. The Fee Share Agreement serves as a crucial tool for managing financial relationships and preventing disputes by clearly documenting the agreed terms of revenue sharing.

Suggested Sections

1. Parties: Identification and details of all parties entering into the fee sharing arrangement

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Fee Sharing Structure: Core terms defining the fee split percentages and calculation methodology

5. Payment Terms: Timing, method, and currency of fee share payments

6. Accounting and Records: Requirements for maintaining financial records and conducting reconciliations

7. Reporting Requirements: Obligations regarding financial reporting and documentation

8. Audit Rights: Rights to audit fee calculations and relevant financial records

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

10. Confidentiality: Protection of confidential information shared between parties

11. Data Protection: GDPR compliance and data handling requirements

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

Optional Sections

1. Non-Compete: Restrictions on competitive activities, used when parties operate in the same industry

2. Intellectual Property: IP ownership and usage rights, relevant when shared activities involve creation of IP

3. Marketing and Branding: Rules for mutual promotion and brand usage, important for public-facing partnerships

4. Insurance: Insurance requirements, particularly relevant in regulated industries or high-risk activities

5. Force Majeure: Provisions for unexpected events, useful in long-term arrangements

6. Assignment: Rights to transfer the agreement, important for corporate restructuring scenarios

7. Dispute Resolution: Alternative dispute resolution procedures, useful for complex international arrangements

Suggested Schedules

1. Fee Calculation Schedule: Detailed methodology for calculating fee shares, including formulas and examples

2. Service Level Agreement: Performance metrics and service standards if the fee share is linked to service delivery

3. Reporting Template: Standard format for regular financial reporting and reconciliation

4. Approved Cost Categories: List of costs that can be deducted before fee sharing calculation

5. Contact Details: Key personnel and their roles in managing the fee sharing arrangement

6. Compliance Requirements: Industry-specific regulatory requirements and compliance procedures

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