The Software Sales Commission Agreement is essential for businesses operating in Pakistan's growing technology sector, establishing clear terms for commission-based software sales relationships. This document is typically used when a software company wishes to engage sales representatives or agents to promote and sell their software products on a commission basis. It includes crucial elements such as commission rates, payment structures, sales territories, performance metrics, and compliance with Pakistani law. The agreement ensures alignment with local regulations including the Contract Act 1872 and Electronic Transactions Ordinance 2002, while providing necessary protections for intellectual property and defining clear obligations for all parties. It's particularly relevant for companies expanding their software sales operations in Pakistan through commission-based sales structures.
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1. Parties: Identification of the software company and the sales representative/agent
2. Background: Context of the agreement, business relationship, and purpose
3. Definitions: Key terms including Software Products, Territory, Net Sales, Commission, Customers
4. Appointment and Territory: Scope of appointment, exclusivity/non-exclusivity, and defined sales territory
5. Commission Structure: Commission rates, calculation method, and qualifying sales
6. Payment Terms: Timing of payments, currency, payment method, and tax implications
7. Representatives Obligations: Sales targets, reporting requirements, and performance standards
8. Company Obligations: Support, training, and resources provided by the software company
9. Intellectual Property: Protection of software IP, usage rights, and restrictions
10. Confidentiality: Protection of business information and trade secrets
11. Term and Termination: Duration, renewal, and termination conditions
12. Post-Termination: Obligations and rights after agreement ends
13. General Provisions: Standard clauses including notices, amendments, governing law
1. Non-Compete: Restrictions on competing activities - include when dealing with sensitive markets or proprietary technology
2. Performance Metrics: Detailed KPIs and evaluation criteria - include for performance-based agreements
3. Training Requirements: Specific training obligations - include when technical expertise is crucial
4. Marketing Support: Marketing obligations and support - include when joint marketing is part of the arrangement
5. Subcontracting Rights: Rights to involve third parties - include when subcontracting might be needed
6. Insurance Requirements: Specific insurance obligations - include for high-value contracts
7. Data Protection: Specific data handling requirements - include when dealing with personal data
1. Schedule A - Software Products: Detailed list of software products covered under the agreement
2. Schedule B - Commission Rates: Detailed commission structure, tiers, and special rates
3. Schedule C - Territory Definition: Detailed description of geographical territory and any exclusions
4. Schedule D - Sales Targets: Quarterly/annual sales targets and performance metrics
5. Schedule E - Reporting Templates: Standard formats for sales reports and commission calculations
6. Schedule F - Training Program: Details of required training and certification programs
7. Appendix 1 - Approved Marketing Materials: List of approved marketing materials and usage guidelines
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