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Software Sales Commission Agreement

Software Sales Commission Agreement Template for Denmark

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Software Sales Commission Agreement

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Document background
The Software Sales Commission Agreement is essential for companies operating in Denmark that sell software products through commissioned sales representatives or agents. This document establishes the legal framework for the sales relationship, defining commission structures, territories, and performance expectations while ensuring compliance with Danish law, including the Commercial Agents Act (Handelsagentloven) and relevant EU regulations. It's particularly crucial for software companies expanding their sales force through external representatives, protecting both parties' interests while clarifying compensation mechanisms, reporting requirements, and termination procedures. The agreement addresses specific software industry needs such as license handling, recurring revenue considerations, and technical support obligations.
Suggested Sections

1. Parties: Identification of the principal company and the sales representative/agent

2. Background: Context of the agreement and general business relationship

3. Definitions: Key terms used throughout the agreement, including software products, territory, customers, and commission types

4. Appointment and Territory: Scope of appointment, exclusivity/non-exclusivity, and defined territory

5. Software Products: Description of software products covered by the agreement

6. Commission Structure: Basic commission rates, calculation methods, and payment terms

7. Sales Targets: Minimum performance requirements and sales objectives

8. Representative's Obligations: Key responsibilities, reporting requirements, and performance standards

9. Principal's Obligations: Support, training, and resources to be provided

10. Intellectual Property: Protection of software IP and usage rights

11. Confidentiality: Protection of business secrets and confidential information

12. Data Protection: GDPR compliance and data handling requirements

13. Term and Termination: Duration, renewal, and termination provisions

14. Post-Termination: Obligations and rights after agreement ends

15. Governing Law and Jurisdiction: Application of Danish law and dispute resolution

Optional Sections

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

2. Customer Transfer: Provisions for transferring customers, used in exclusive territory arrangements

3. Sub-Agents: Rules for appointing sub-agents, used when allowing delegation of sales activities

4. Marketing Requirements: Specific marketing obligations, used when representative handles promotion

5. Special Bonus Schemes: Additional incentive structures, used for high-value products

6. Insurance Requirements: Specific insurance obligations, used for high-risk territories or products

7. Training Commitments: Detailed training requirements, used for complex software products

Suggested Schedules

1. Schedule 1 - Software Products: Detailed list and descriptions of software products covered

2. Schedule 2 - Commission Rates: Detailed commission structures, including any variations by product or customer type

3. Schedule 3 - Sales Targets: Specific quarterly/annual sales targets and measurement criteria

4. Schedule 4 - Reporting Templates: Standard forms for sales reporting and commission calculations

5. Schedule 5 - Territory Definition: Detailed description of geographical or customer segment boundaries

6. Appendix A - Technical Requirements: Technical specifications and support requirements

7. Appendix B - Training Program: Details of required training and certification programs

Authors

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Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing formation and validity of contracts in Denmark, essential for establishing the basic framework of the commission agreement
Danish Commercial Agents Act (Handelsagentloven): Regulates relationships between principals and commercial agents, including provisions on commission calculations, payment terms, and termination rights
Danish Salaried Employees Act (Funktionærloven): May apply if the commission agreement creates an employment-like relationship, covering aspects like notice periods and compensation
Danish Act on Commission (Kommissionsloven): Specific regulations governing commission-based business relationships and transactions
Danish GDPR Implementation Act (Databeskyttelsesloven): Regulates personal data processing, relevant for handling customer data and commission calculations
Danish Tax Assessment Act (Ligningsloven): Contains provisions on the tax treatment of commission payments and business expenses
Danish Competition Act (Konkurrenceloven): Ensures the commission agreement doesn't contain anti-competitive provisions or market restrictions
Danish Bookkeeping Act (Bogføringsloven): Requirements for recording and documenting commission payments and related business transactions
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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