The Commission Agreement Between Broker And Agent is a crucial document for businesses operating in Germany that rely on commission-based sales or service arrangements through intermediaries. This agreement is specifically designed to comply with German commercial law, particularly the strict requirements of the Handelsgesetzbuch (HGB) regarding commercial agency relationships. It's typically used when a company (broker) wants to engage an independent agent to promote their products or services in return for commission-based compensation. The document covers essential elements such as commission calculations, payment terms, territorial rights, and mandatory provisions required by German law, including the agent's statutory right to compensation upon termination (Ausgleichsanspruch). The agreement is particularly important in regulated industries where clear documentation of intermediary relationships is required for compliance purposes.
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1. Parties: Identification and details of the Broker and Agent, including registration numbers and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of the Agent's appointment, territory, and scope of authority
5. Agent's Obligations: Detailed responsibilities and duties of the Agent, including reporting requirements and compliance with laws
6. Broker's Obligations: Responsibilities of the Broker, including support and information provision to the Agent
7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission
8. Payment Terms: Timing and method of commission payments, accounting periods, and statement provisions
9. Intellectual Property: Usage rights for trademarks, logos, and other IP owned by the Broker
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Term and Termination: Duration of agreement, notice periods, and grounds for termination in accordance with German law
12. Post-Termination Obligations: Obligations after contract termination, including return of materials and final settlements
13. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement provisions
1. Non-Compete Clause: Restrictions on competitive activities during and after the agreement (only if compliant with German competition law)
2. Data Protection: GDPR compliance provisions, needed if personal data processing is involved
3. Training and Support: Details of training and support provided by Broker, if applicable
4. Performance Targets: Specific sales or performance targets, if part of the arrangement
5. Insurance Requirements: Specific insurance obligations, particularly relevant for regulated industries
6. Sub-Agents: Provisions regarding the appointment of sub-agents, if permitted
7. Marketing and Advertising: Guidelines for marketing activities and use of promotional materials
8. Compliance with Industry Regulations: Specific provisions for regulated industries (e.g., financial services, insurance)
1. Commission Rates Schedule: Detailed breakdown of commission rates for different products or services
2. Territory Description: Detailed description of geographical area or market segment covered
3. Product/Service List: Comprehensive list of products or services covered by the agreement
4. Reporting Templates: Standard forms for regular reporting and commission calculations
5. Operating Procedures: Detailed procedures for day-to-day operations and interactions
6. KPI Metrics: Detailed performance indicators and measurement criteria
7. Approved Marketing Materials: List of approved marketing materials and usage guidelines
8. Data Processing Agreement: Detailed GDPR-compliant data processing terms if required
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Insurance
Real Estate
Manufacturing
Wholesale Trade
Retail
Technology Distribution
Automotive
Pharmaceuticals
Industrial Equipment
Telecommunications
Consumer Goods
Relevant Teams
Legal
Sales
Compliance
Finance
Operations
Business Development
Partner Relations
Commercial Operations
Contract Administration
Risk Management
Commission Administration
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Sales Operations Manager
Channel Manager
Commission Administrator
Contract Manager
Agency Relations Manager
Chief Commercial Officer
Regional Sales Manager
Partner Success Manager
Independent Agent
Broker Principal
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