The Non Disclosure Agreement Compensation is designed for situations where parties need to exchange valuable confidential information under German law, and the receiving party is to be compensated for their confidentiality obligations. This type of agreement is particularly relevant in consulting arrangements, specialized advisory services, or situations involving high-value trade secrets where the receiving party's confidentiality obligations are substantial enough to warrant compensation. The document ensures compliance with the German Trade Secrets Act (GeschGehG) and relevant provisions of the German Civil Code (BGB), while establishing clear terms for both the protection of confidential information and the associated compensation structure. It is commonly used in technology transfers, specialized consulting engagements, and strategic partnerships where the value of the confidential information necessitates a formal compensation arrangement.
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1. Parties: Identification of the disclosing and receiving parties, including full legal names, addresses, and registration details as required under German law
2. Background: Context of the agreement, relationship between parties, and purpose of sharing confidential information
3. Definitions: Clear definitions of key terms, especially 'Confidential Information', 'Trade Secrets', 'Compensation', and other relevant terms in compliance with GeschGehG
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including handling, protection, and non-disclosure requirements
6. Permitted Uses: Specific permitted uses of the confidential information and any restrictions
7. Compensation Structure: Details of compensation for maintaining confidentiality, including payment terms, calculation methods, and payment schedule
8. Security Measures: Required security measures for protecting confidential information in compliance with GeschGehG
9. Return or Destruction of Confidential Information: Procedures for returning or destroying confidential information upon request or termination
10. Term and Termination: Duration of the agreement and termination provisions
11. Breach and Remedies: Consequences of breach, including penalties and remedies under German law
12. General Provisions: Standard legal provisions including governing law, jurisdiction, and severability
13. Execution: Signature blocks and execution requirements
1. Data Protection Provisions: Additional provisions when confidential information includes personal data subject to GDPR
2. Employee and Subcontractor Obligations: Additional provisions when the receiving party needs to share information with employees or subcontractors
3. Intellectual Property Rights: Specific provisions regarding IP rights when confidential information includes patentable or copyrightable material
4. Export Control: Provisions for international data transfer restrictions when applicable
5. Non-Competition Provisions: Additional restrictions on competitive activities, if permissible under the specific circumstances
6. Insurance Requirements: Provisions requiring specific insurance coverage for confidential information protection
7. Audit Rights: Provisions allowing the disclosing party to audit the receiving party's compliance
1. Schedule 1: Description of Confidential Information: Detailed list or categories of confidential information covered by the agreement
2. Schedule 2: Compensation Details: Detailed compensation structure, including calculation methods, payment schedules, and any variable components
3. Schedule 3: Security Protocols: Specific technical and organizational measures required for protecting confidential information
4. Schedule 4: Authorized Personnel: List of authorized individuals who may access the confidential information
5. Schedule 5: Reporting Requirements: Templates and procedures for required reporting related to confidential information handling and compensation
6. Appendix A: Form of Confidentiality Undertaking: Template for confidentiality undertakings to be signed by employees or subcontractors
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