The Business Development Commission Agreement is essential for companies seeking to expand their business through external business developers or agents in the German market. This agreement type is specifically designed to comply with German law, particularly the Handelsgesetzbuch (HGB) and relevant EU directives, while establishing clear parameters for commission-based business development activities. It is commonly used when companies want to engage professional business developers without creating an employment relationship, defining the scope of authority, territory, commission structure, and performance expectations. The agreement is particularly important as it addresses mandatory provisions under German commercial law regarding agency relationships, including statutory notice periods, commission calculations, and post-termination compensation (Ausgleichsanspruch).
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1. Parties: Identification of the principal company and the business developer, including full legal names, registration details, and addresses
2. Background: Context of the agreement, business purpose, and basic premises of the relationship
3. Definitions: Key terms used throughout the agreement, including 'Successful Introduction', 'Commission', 'Territory', and 'Target Customers'
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of business development services
5. Business Developer's Obligations: Core responsibilities, reporting requirements, and performance standards
6. Principal's Obligations: Support, information, and resources to be provided by the principal
7. Commission Structure: Detailed commission calculations, qualifying transactions, and payment terms
8. Payment Terms: Timing of payments, invoice requirements, and payment methods
9. Intellectual Property: Ownership and usage rights of relevant IP, including marketing materials
10. Confidentiality: Protection of business secrets and confidential information
11. Term and Termination: Duration of agreement, renewal terms, and termination provisions
12. Post-Termination: Obligations and rights after agreement ends, including commission on pipeline deals
13. General Provisions: Standard legal clauses including governing law, notices, and amendments
1. Non-Compete: Restrictions on competing activities, used when business developer will have access to sensitive market information
2. Performance Targets: Specific KPIs and minimum performance requirements, included when needed for performance management
3. Training and Support: Details of training provided by principal, included for complex products/services
4. Marketing and Branding: Guidelines for representing the principal's brand, included when business developer will conduct marketing activities
5. Compliance Requirements: Specific regulatory or industry compliance obligations, included for regulated industries
6. Data Protection: Detailed GDPR compliance provisions, included when personal data processing is significant
7. Insurance: Required insurance coverage, included when business developer's activities carry significant risks
1. Commission Rates and Calculations: Detailed breakdown of commission structures, including any variations by product/service type
2. Territory Definition: Specific geographical or market segment definitions for the business developer's activities
3. Approved Marketing Materials: List of pre-approved materials and templates for business development activities
4. Reporting Templates: Standard formats for activity reports and commission calculations
5. Product/Service Description: Detailed description of products/services covered by the agreement
6. Key Performance Indicators: Detailed metrics and measurement methods for performance evaluation
7. Compliance Procedures: Step-by-step procedures for regulatory compliance and documentation requirements
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