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This Profit Sharing Agreement Independent Contractor template is designed for use under Danish jurisdiction when establishing a performance-based collaboration between businesses and independent contractors. It's particularly useful when parties wish to align interests through profit sharing rather than fixed compensation. The document addresses key requirements under Danish law regarding independent contractor classification, tax considerations, and business regulations. It includes comprehensive provisions for profit calculation, distribution mechanisms, and reporting requirements while maintaining the contractor's independent status. This agreement type is commonly used in various business sectors where contractors contribute significantly to revenue generation or business growth, requiring a more sophisticated compensation structure than traditional fixed-fee arrangements.

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration numbers

2. Background: Context of the agreement, nature of the business relationship, and confirmation of independent contractor status

3. Definitions: Key terms including 'Profit', 'Calculation Period', 'Services', 'Revenue', 'Eligible Expenses', and other relevant financial and operational terms

4. Scope of Services: Detailed description of services to be provided by the independent contractor

5. Independent Contractor Status: Clear statement of contractor's independent status and relationship between parties

6. Profit Calculation: Methodology for calculating profit, including revenue recognition and allowable deductions

7. Profit Share Percentage: Agreed-upon percentage split of profits between parties

8. Payment Terms: Timing, method, and currency of profit share payments, including any minimum guarantees

9. Reporting and Audit Rights: Financial reporting requirements and audit provisions

10. Term and Termination: Duration of agreement and conditions for termination

11. Confidentiality: Protection of business and financial information

12. Intellectual Property: Ownership and usage rights of IP created during the engagement

13. Representations and Warranties: Standard business warranties and specific profit-related representations

14. Governing Law and Jurisdiction: Specification of Danish law and jurisdiction for dispute resolution