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NDA Commission Agreement

NDA Commission Agreement Template for Malaysia

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Key Requirements PROMPT example:

NDA Commission Agreement

"I need an NDA Commission Agreement for appointing a sales representative in Malaysia to sell our software products, with a 15% commission structure and strict confidentiality provisions to protect our source code and client data, starting March 1, 2025."

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Document background
The NDA Commission Agreement is essential for businesses operating in Malaysia that engage external parties for sales, business development, or similar activities on a commission basis while sharing confidential information. This document type is particularly relevant when companies need to protect their proprietary information while establishing commission-based relationships with agents, representatives, or consultants. The agreement ensures compliance with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955, and Personal Data Protection Act 2010. It typically includes detailed commission structures, payment terms, confidentiality obligations, non-disclosure provisions, and specific performance metrics, while providing legal protection for sensitive business information shared during the relationship.
Suggested Sections

1. Parties: Identification and details of the parties entering into the agreement

2. Background: Context of the agreement, business relationship, and purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of services to be provided

5. Commission Structure: Details of commission rates, calculation methods, and payment terms

6. Confidentiality Obligations: Core confidentiality provisions, scope of confidential information, and protection requirements

7. Duration and Term: Period of the agreement and any renewal provisions

8. Payment Terms: Timing, method, and conditions for commission payments

9. Representations and Warranties: Basic promises and guarantees made by each party

10. Termination: Circumstances and process for ending the agreement

11. Post-Termination Obligations: Continuing obligations after agreement ends, especially regarding confidentiality

12. Governing Law and Jurisdiction: Specification of Malaysian law and jurisdiction

Optional Sections

1. Non-Competition: Restrictions on competitive activities, used when there's a risk of direct competition

2. Non-Solicitation: Restrictions on soliciting clients or employees, included when protecting client relationships is crucial

3. Intellectual Property Rights: IP ownership and protection clauses, needed when IP might be created or shared

4. Data Protection: Specific data protection obligations, required when personal data processing is involved

5. Force Majeure: Provisions for unforeseen circumstances, important in long-term relationships

6. Assignment and Subcontracting: Rights to transfer obligations, needed when flexibility in execution is required

7. Insurance: Insurance requirements, relevant when services involve significant risks

8. Audit Rights: Rights to audit commission calculations, useful in complex commission structures

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and special conditions

2. Confidential Information Categories: Specific listing of types of confidential information covered

3. Reporting Templates: Standard formats for commission reports and calculations

4. Territory Schedule: Definition of geographical areas covered by the agreement

5. Product/Service Schedule: List of products or services covered by the commission arrangement

6. Key Performance Indicators: Metrics and targets for commission qualification

7. Approved Marketing Materials: Templates or guidelines for marketing activities

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Confidential Information
Commission
Commission Period
Effective Date
Net Sales
Principal
Representative
Services
Territory
Intellectual Property Rights
Commission Rate
Payment Date
Permitted Purpose
Products
Trade Secrets
Gross Revenue
Commission Statement
Business Day
Commencement Date
Termination Date
Authorized Recipients
Sales Target
Commission Threshold
Performance Metrics
Reporting Period
Proprietary Information
Customer
Marketing Materials
Business Hours
Qualifying Transaction
Commission Base
Confidentiality Period
Operating Territory
Payment Currency
Relevant Industries

Financial Services

Real Estate

Insurance

Technology Sales

Manufacturing

Retail

Telecommunications

Professional Services

Healthcare

Automotive

Consumer Goods

Energy

Construction

Education Services

Relevant Teams

Legal

Sales

Business Development

Human Resources

Finance

Compliance

Commercial Operations

Partner Relations

Contract Administration

Risk Management

Relevant Roles

Sales Director

Business Development Manager

Channel Manager

Commission Agent

Sales Representative

Chief Commercial Officer

Legal Counsel

Compliance Officer

HR Director

Finance Manager

Contract Administrator

Regional Sales Manager

Partnership Manager

Agency Relations Manager

Industries
Contracts Act 1950: The foundational law governing contract formation, validity, and enforcement in Malaysia, essential for establishing the basic framework of the agreement
Employment Act 1955: Relevant if the commission relationship could be construed as an employment relationship, providing guidelines on commission payments and working relationships
Personal Data Protection Act 2010: Governs the collection, use, and disclosure of personal data, which may be relevant for confidentiality provisions
Trade Secrets Act (Common Law Principles): While Malaysia doesn't have a specific trade secrets act, common law principles protecting confidential information and trade secrets must be considered
Competition Act 2010: Relevant for ensuring commission arrangements don't violate anti-competitive practices regulations
Digital Signature Act 1997: Important if the agreement will be executed electronically, providing legal framework for digital signatures
Income Tax Act 1967: Relevant for tax implications of commission payments and reporting requirements
Sales Tax Act 2018: May be relevant if the commission involves goods or services subject to sales tax
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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