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Advanced CLE

2020 Revenue Share Agreements in Business


Total Credits: 1.2 MCLE, 0.0 Kansas Credit


Dates


Description

Businesses frequently pool resources – capital, intellectual property, talent, other property – to pursue certain commercial opportunities.  In these arrangements, the companies involved agree to share revenue.  The concept is straight-forward but, as whenever finance meets the law, the implementation is more complex. Successful revenue share agreements depend on carefully defining gross revenue, allocable costs, and shareable revenue.  If these and other categories are not carefully planned and drafted, clients risk losing the benefit of their bargain and that loss may result in litigation. This program will provide you with a practical guide to drafting revenue share arrangements in business transactions.

  • How companies use revenue share arrangements in business transactions
  • Counseling clients about the benefits and risks of revenue sharing
  • Defining the “pie” – how references to “gross revenue” can lead drafters astray
  • Allocation of cash and non-cash expenses for purposes of defining sharable revenue
  • Preferential returns of capital contributions before the revenue share

Materials

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