Interim Management Agreement Template for Germany

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Key Requirements PROMPT example:

Interim Management Agreement

"I need an Interim Management Agreement for a turnaround CFO position at our manufacturing company in Munich, starting March 2025 for 9 months, with specific KPIs for cost reduction and restructuring objectives."

Document background
The Interim Management Agreement is a specialized contract used when a company requires temporary senior-level management expertise for specific projects, transitions, or crisis periods. Under German law, this agreement carefully structures the relationship as a service contract (Dienstvertrag) rather than an employment agreement, addressing the unique aspects of interim management engagements. The document is essential for companies seeking temporary leadership solutions while maintaining legal compliance with German commercial and corporate laws. It typically includes comprehensive provisions for scope of work, authority levels, compensation, confidentiality, and termination rights, while addressing specific German regulatory requirements such as data protection and works council considerations. This agreement type is particularly crucial for ensuring clear delineation of responsibilities and protecting both parties' interests in temporary management arrangements.
Suggested Sections

1. Parties: Identification of the contracting company and the interim manager/management company, including full legal names, registration details, and addresses

2. Background: Context of the engagement, including the company's need for interim management services and the interim manager's qualifications

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', 'Confidential Information', and specific company terminology

4. Appointment and Scope: Terms of appointment, confirmation of independent contractor status, and detailed scope of services

5. Term and Time Commitment: Duration of the agreement and expected time commitment from the interim manager

6. Duties and Responsibilities: Detailed description of the interim manager's duties, authority levels, and reporting requirements

7. Fees and Expenses: Payment terms, fee structure, reimbursable expenses, and invoicing procedures

8. Independent Contractor Status: Clear stipulation of the interim manager's status as an independent contractor, not an employee

9. Confidentiality: Obligations regarding confidential information, both during and after the engagement

10. Data Protection: Compliance with GDPR and German data protection laws, data handling requirements

11. Intellectual Property: Ownership and rights to work products created during the engagement

12. Liability and Indemnification: Scope of liability, limitations, and indemnification provisions

13. Termination: Conditions for termination, notice periods, and consequences of termination

14. Post-Termination Obligations: Continuing obligations after the end of the agreement

15. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement

Optional Sections

1. Corporate Authority: Required when the interim manager will have official corporate positions or signing authority

2. Performance Metrics: Include when specific performance targets or KPIs are part of the engagement

3. Success Fees: Used when additional compensation is tied to achieving specific objectives

4. Insurance: Detailed insurance requirements when the company requires specific coverage

5. Non-Competition: Include when restricting the interim manager's ability to work with competitors

6. Works Council Interaction: Required when the role involves significant interaction with works councils

7. International Travel: Include when the role requires international travel and associated terms

8. Team and Resources: Used when the interim manager will manage a team or require specific resources

9. Crisis Management: Include for turnaround or crisis management situations

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of services, deliverables, and specific projects

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Key Performance Indicators: Specific metrics and targets for measuring performance

4. Schedule 4 - Company Policies: Relevant company policies applicable to the interim manager

5. Schedule 5 - Reporting Requirements: Format and frequency of required reports and updates

6. Appendix A - Power of Attorney: If required, specific authorities granted to the interim manager

7. Appendix B - Data Protection Agreement: Detailed data protection and processing requirements

8. Appendix C - Handover Plan: Template or requirements for final handover of responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Financial Services

Technology

Healthcare

Retail

Professional Services

Energy

Telecommunications

Automotive

Construction

Logistics

Pharmaceuticals

Real Estate

Media and Entertainment

Consumer Goods

Relevant Teams

Legal

Human Resources

Finance

Operations

Procurement

Corporate Governance

Risk Management

Compliance

Business Development

Strategy

Project Management Office

Corporate Communications

Relevant Roles

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operations Officer (COO)

Chief Restructuring Officer (CRO)

Managing Director

Program Director

Transformation Director

Division Head

Project Manager

Turnaround Manager

Change Manager

Department Head

Business Unit Leader

Operations Manager

Finance Director

Industries
German Civil Code (Bürgerliches Gesetzbuch - BGB): Particularly §§ 611-630 regarding service contracts (Dienstvertrag) and §§ 675-675b concerning business management contracts. Forms the basic legal framework for the contractual relationship.
German Commercial Code (Handelsgesetzbuch - HGB): Regulates commercial relationships and business transactions, particularly relevant for interim managers acting as commercial agents or business consultants.
Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb - UWG): Relevant for non-compete clauses and protection of business secrets during and after the interim management period.
German Data Protection Act (Bundesdatenschutzgesetz - BDSG): Governs the handling of personal and business data, particularly important as interim managers often have access to sensitive company information.
Income Tax Act (Einkommensteuergesetz - EStG): Relevant for the tax treatment of interim management services and compensation.
Social Security Code (Sozialgesetzbuch - SGB): Important for determining the social security status of interim managers, who typically work as independent contractors rather than employees.
German Stock Corporation Act (Aktiengesetz - AktG): If the client company is a stock corporation, this law is relevant for corporate governance aspects and responsibilities of interim managers.
Limited Liability Companies Act (GmbH-Gesetz): Relevant when the interim manager takes on managing director responsibilities in a GmbH (limited liability company).
Works Constitution Act (Betriebsverfassungsgesetz - BetrVG): May be relevant if the interim manager's role involves interaction with works councils or employee representatives.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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