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Business Development Commission Agreement

Business Development Commission Agreement Template for Germany

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Key Requirements PROMPT example:

Business Development Commission Agreement

"I need a Business Development Commission Agreement for engaging an external consultant to develop our software sales in the DACH region, with a tiered commission structure starting from March 2025, including non-compete provisions and GDPR compliance requirements."

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Document background
The Business Development Commission Agreement is essential for companies seeking to expand their business through external business developers or agents in the German market. This agreement type is specifically designed to comply with German law, particularly the Handelsgesetzbuch (HGB) and relevant EU directives, while establishing clear parameters for commission-based business development activities. It is commonly used when companies want to engage professional business developers without creating an employment relationship, defining the scope of authority, territory, commission structure, and performance expectations. The agreement is particularly important as it addresses mandatory provisions under German commercial law regarding agency relationships, including statutory notice periods, commission calculations, and post-termination compensation (Ausgleichsanspruch).
Suggested Sections

1. Parties: Identification of the principal company and the business developer, including full legal names, registration details, and addresses

2. Background: Context of the agreement, business purpose, and basic premises of the relationship

3. Definitions: Key terms used throughout the agreement, including 'Successful Introduction', 'Commission', 'Territory', and 'Target Customers'

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of business development services

5. Business Developer's Obligations: Core responsibilities, reporting requirements, and performance standards

6. Principal's Obligations: Support, information, and resources to be provided by the principal

7. Commission Structure: Detailed commission calculations, qualifying transactions, and payment terms

8. Payment Terms: Timing of payments, invoice requirements, and payment methods

9. Intellectual Property: Ownership and usage rights of relevant IP, including marketing materials

10. Confidentiality: Protection of business secrets and confidential information

11. Term and Termination: Duration of agreement, renewal terms, and termination provisions

12. Post-Termination: Obligations and rights after agreement ends, including commission on pipeline deals

13. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Non-Compete: Restrictions on competing activities, used when business developer will have access to sensitive market information

2. Performance Targets: Specific KPIs and minimum performance requirements, included when needed for performance management

3. Training and Support: Details of training provided by principal, included for complex products/services

4. Marketing and Branding: Guidelines for representing the principal's brand, included when business developer will conduct marketing activities

5. Compliance Requirements: Specific regulatory or industry compliance obligations, included for regulated industries

6. Data Protection: Detailed GDPR compliance provisions, included when personal data processing is significant

7. Insurance: Required insurance coverage, included when business developer's activities carry significant risks

Suggested Schedules

1. Commission Rates and Calculations: Detailed breakdown of commission structures, including any variations by product/service type

2. Territory Definition: Specific geographical or market segment definitions for the business developer's activities

3. Approved Marketing Materials: List of pre-approved materials and templates for business development activities

4. Reporting Templates: Standard formats for activity reports and commission calculations

5. Product/Service Description: Detailed description of products/services covered by the agreement

6. Key Performance Indicators: Detailed metrics and measurement methods for performance evaluation

7. Compliance Procedures: Step-by-step procedures for regulatory compliance and documentation requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions














































Clauses






























Relevant Industries

Technology

Manufacturing

Professional Services

Financial Services

Real Estate

Healthcare

Telecommunications

Energy

Consumer Goods

Industrial Equipment

Software and IT

Consulting

Distribution and Logistics

Relevant Teams

Legal

Business Development

Sales

Finance

Compliance

Operations

Commercial

Partnership Management

Account Management

Contract Administration

Relevant Roles

Business Development Manager

Sales Director

Commercial Director

Chief Revenue Officer

Managing Director

Legal Counsel

Contracts Manager

Account Executive

Partnership Manager

Regional Sales Manager

Chief Commercial Officer

Business Development Representative

VP of Business Development

Channel Manager

Industries






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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