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Software Sales Commission Agreement Template for New Zealand

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Key Requirements PROMPT example:

Software Sales Commission Agreement

"I need a Software Sales Commission Agreement for a SaaS platform targeting the New Zealand healthcare sector, with a tiered commission structure starting at 10% for new sales and increasing to 15% for renewals, including specific clauses for handling patient data privacy."

Document background
The Software Sales Commission Agreement is essential for businesses operating in New Zealand's technology sector that engage sales representatives on a commission basis. This document is specifically designed to comply with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant tax legislation. It's typically used when a software company wants to establish a formal relationship with sales representatives who will be compensated primarily through commission-based earnings. The agreement covers crucial aspects such as commission rates, sales territories, performance metrics, payment schedules, and obligations of both parties. It's particularly important for protecting intellectual property rights and ensuring clear understanding of commission structures while maintaining compliance with New Zealand's commercial and employment laws.
Suggested Sections

1. Parties: Identification of the company (principal) and the sales representative

2. Background: Context of the agreement, nature of the business, and purpose of the commission arrangement

3. Definitions: Key terms including 'Software Products', 'Commission', 'Territory', 'Qualified Sales', 'Net Revenue'

4. Appointment and Scope: Appointment of sales representative, territory definition, and exclusivity status

5. Commission Structure: Base commission rates, calculation methods, and qualifying criteria for commissions

6. Payment Terms: Timing of commission payments, payment methods, and reconciliation process

7. Sales Targets: Minimum performance requirements and sales quotas if applicable

8. Term and Termination: Duration of agreement, renewal terms, and termination conditions

9. Obligations of Sales Representative: Core duties, reporting requirements, and professional conduct expectations

10. Company's Obligations: Support, training, and resources provided by the company

11. Intellectual Property: Protection of company's IP and usage rights of sales materials

12. Confidentiality: Protection of confidential information and trade secrets

13. General Provisions: Standard clauses including governing law, dispute resolution, and entire agreement

Optional Sections

1. Non-Compete: Restrictions on competing activities, used when protecting market position is crucial

2. International Sales: Additional terms for cross-border sales, needed for international territories

3. Team Management: Include when sales representative may build and manage their own team

4. Marketing Responsibilities: When sales role includes marketing duties beyond pure sales

5. Customer Support: Include if sales representative has post-sale support duties

6. Expense Reimbursement: Terms for expense claims, needed if company covers certain sales expenses

7. Lead Management: Processes for handling and distributing leads, important in shared territories

8. Software Customization: Include when sales involve custom software modifications

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed commission structures, tiers, and bonus schemes

2. Schedule 2 - Territory Definition: Specific geographical or market segment boundaries

3. Schedule 3 - Product List: Current software products and services covered by the agreement

4. Schedule 4 - Sales Targets: Specific quotas and metrics for performance evaluation

5. Schedule 5 - Reporting Templates: Standard forms for sales reporting and commission calculations

6. Appendix A - Sales Policies: Company's sales policies and procedures

7. Appendix B - Technical Requirements: Technical specifications or requirements for software sales

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses


























Relevant Industries

Information Technology

Software Development

Cloud Services

SaaS (Software as a Service)

Enterprise Software

Business Solutions

Technology Consulting

Digital Services

E-commerce

Financial Technology

Healthcare Technology

Educational Technology

Relevant Teams

Sales

Legal

Human Resources

Finance

Operations

Revenue Operations

Business Development

Contract Administration

Compliance

Partner Relations

Relevant Roles

Sales Representative

Business Development Manager

Account Executive

Sales Director

Channel Sales Manager

Software Sales Specialist

Commission-based Sales Agent

Regional Sales Manager

Chief Revenue Officer

Sales Operations Manager

Contract Administrator

Legal Counsel

HR Manager

Finance Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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