The Termination of Retainer agreement is essential when parties wish to formally end an ongoing professional services arrangement under German law. This document is typically used when either the service provider or client wishes to conclude their professional relationship, whether at the natural end of the engagement or through early termination. It must comply with the German Civil Code (BGB) provisions regarding service contracts (Dienstvertrag) and professional services termination. The agreement covers critical elements such as final billing, document handover, confidentiality obligations, and any transition requirements. It's particularly important for regulated professions and situations where significant materials or confidential information have been exchanged during the retainer period.
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1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details if applicable
2. Background: Reference to the original retainer agreement, its date, and general scope of services
3. Definitions: Key terms used in the agreement, including 'Effective Date', 'Original Agreement', 'Outstanding Fees', and 'Confidential Information'
4. Termination Declaration: Clear statement of termination and the effective date
5. Final Fee Settlement: Provisions for calculation and payment of any outstanding fees up to the termination date
6. Handover of Materials: Process and timeline for returning or transferring any documents, materials, or property between parties
7. Surviving Obligations: Specification of which obligations from the original agreement survive termination (e.g., confidentiality, non-compete)
8. Mutual Release: Release of claims and obligations between parties, subject to specified exceptions
9. Governing Law: Confirmation of German law as governing law and jurisdiction
10. Signatures: Execution block with date and signature lines for all parties
1. Transition Arrangements: Used when services need to be transferred to another provider, including handover process and cooperation requirements
2. Intellectual Property Rights: Include when the retainer involved creation or use of intellectual property
3. Non-Solicitation: Include when parties wish to prevent solicitation of employees or clients post-termination
4. Dispute Resolution: Optional alternative dispute resolution procedures, particularly relevant for high-value or complex retainers
5. Insurance and Liability: Include when specific arrangements regarding professional liability insurance or limitation of liability need to be addressed
6. Data Protection: Include when personal data processing was involved in the retainer, addressing GDPR requirements
7. Press Announcements: Include for high-profile relationships where public announcements need to be controlled
1. Schedule 1 - Outstanding Fees Calculation: Detailed breakdown of any outstanding fees, expenses, and payment arrangements
2. Schedule 2 - Materials for Handover: Itemized list of all documents, materials, and property to be returned or transferred
3. Schedule 3 - Original Retainer Agreement: Copy of the original retainer agreement being terminated
4. Appendix A - Confirmation of Completed Tasks: List of completed and pending tasks under the retainer
5. Appendix B - Final Invoice: Final invoice or statement of account
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