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The Third Party Data Processing Agreement is essential whenever an organization (data controller) engages another party (data processor) to process personal data on its behalf within the German legal framework. This document is required under Article 28 of the GDPR and German data protection law, particularly when outsourcing data processing activities such as cloud services, payroll processing, or customer support. It sets out the processor's obligations regarding data security, confidentiality, and compliance with data protection laws, while establishing clear lines of responsibility and accountability. The agreement must incorporate specific requirements under German law, including strict data security standards and specific documentation requirements, making it more rigorous than standard EU data processing agreements.

1. Parties: Identification of the data controller and data processor, including full legal names and registered addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used in the agreement, including GDPR-specific terminology

4. Subject Matter and Duration: Scope, purpose, and duration of the data processing activities

5. Nature and Purpose of Processing: Detailed description of processing operations and legitimate purposes

6. Types of Personal Data and Categories of Data Subjects: Specification of data types and individuals whose data will be processed

7. Obligations and Rights of the Controller: Controller's responsibilities, including instructions and monitoring rights

8. Processor Obligations: Processor's duties under GDPR Article 28, including processing only on documented instructions

9. Confidentiality: Confidentiality obligations and personnel commitments

10. Technical and Organizational Measures: Security measures to ensure appropriate level of data protection

11. Sub-processing: Conditions and requirements for engaging sub-processors

12. Data Subject Rights: Assistance in responding to data subject requests

13. Personal Data Breach: Notification requirements and procedures for data breaches

14. Audit Rights: Controller's audit rights and processor's obligations to demonstrate compliance

15. Data Return and Deletion: Obligations regarding data handling upon termination

16. Liability and Indemnity: Allocation of liability and indemnification provisions

17. Term and Termination: Duration of agreement and termination conditions

18. Governing Law and Jurisdiction: Specification of German law application and jurisdiction