The Finder's Fee Commission Agreement is essential for businesses seeking to formalize relationships with intermediaries who facilitate valuable business connections. This document, governed by German law, specifically the BGB (Civil Code) and HGB (Commercial Code), establishes clear parameters for commission-based compensation when successful introductions are made. It's particularly relevant for companies expanding their business network, seeking acquisition targets, or looking for new business opportunities through third-party intermediaries. The agreement includes crucial elements such as success criteria, commission structures, and compliance requirements, while adhering to German regulatory requirements regarding commercial intermediaries and commission-based arrangements.
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1. Parties: Identification of the principal and the finder, including full legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the principal's business and the finder's services
3. Definitions: Key terms used in the agreement, including 'Successful Introduction', 'Target Companies', 'Commission', and 'Qualifying Transaction'
4. Scope of Services: Detailed description of the finder's duties, including introduction methods and target criteria
5. Success Criteria: Clear definition of what constitutes a successful introduction triggering commission payment
6. Commission Structure: Details of commission rates, calculation methods, and payment triggers
7. Payment Terms: Timeline and method of commission payments, including invoicing requirements and payment deadlines
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Compliance with Laws: Obligations to comply with relevant German laws, including anti-bribery and data protection
11. Representations and Warranties: Basic warranties about capacity to contract and regulatory compliance
12. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Exclusivity: Used when the finder is granted exclusive rights for certain territories or target companies
2. Reporting Requirements: Include when regular updates on finder activities are required
3. Post-Termination Provisions: Used when there are specific rules about commission claims after agreement termination
4. Non-Circumvention: Include when there's risk of direct engagement with introduced parties bypassing the finder
5. Dispute Resolution: Alternative dispute resolution procedures if preferred over standard court proceedings
6. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
7. Insurance Requirements: Used when specific insurance coverage is required from the finder
8. Marketing and Promotion: Include when the finder needs specific permissions or restrictions regarding marketing activities
1. Commission Structure Details: Detailed breakdown of commission rates, tiers, and calculation examples
2. Target Company Profile: Specific criteria and characteristics of target companies/individuals to be introduced
3. Excluded Parties: List of companies or individuals excluded from the scope of the agreement
4. Required Information Template: Template for information required when submitting potential introductions
5. Reporting Template: Standard format for periodic activity reports if required
6. Compliance Procedures: Detailed procedures for ensuring compliance with relevant regulations
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