The Termination Of Sales Representative Agreement is a critical document used when ending a commercial agency relationship under German law. It is specifically designed to comply with the stringent requirements of the German Commercial Code (HGB), particularly regarding the mandatory compensation claim (Ausgleichsanspruch) under §89b HGB. This document should be used when either party wishes to terminate the sales representative relationship, whether by mutual consent or unilateral notice. It addresses essential elements such as termination dates, compensation calculations, commission settlements, customer transitions, and post-contractual obligations. The agreement is particularly important in the German jurisdiction due to the significant statutory protections afforded to commercial agents and the specific requirements for handling their termination.
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1. Parties: Identification of the Principal and Sales Representative, including full legal names, registration details, and addresses
2. Background: Brief recap of the original Sales Representative Agreement, its date, and key terms
3. Definitions: Definition of key terms used in the termination agreement
4. Termination Date: Clear specification of when the Sales Representative Agreement will terminate
5. Compensation Claim: Details of the §89b HGB compensation claim (Ausgleichsanspruch) calculation and payment terms
6. Final Commission Payments: Provisions for calculating and paying any outstanding commissions
7. Handover of Business: Requirements for transferring customer relationships, documentation, and materials
8. Confidentiality: Ongoing obligations regarding confidential information
9. Return of Property: Requirements for returning company property, materials, and documents
10. Release of Claims: Mutual release of claims subject to compliance with the termination agreement
11. Governing Law: Confirmation of German law governance and jurisdiction
1. Non-Compete Obligations: Post-termination non-compete provisions, if agreed and compliant with §90a HGB
2. Customer Protection: Specific provisions regarding customer solicitation post-termination
3. Transitional Services: Arrangements for temporary continuation of specific services during a transition period
4. Tax Provisions: Specific arrangements regarding tax implications of termination payments
5. Severance Payment: Additional severance payments beyond statutory requirements, if applicable
6. Reference Letter: Agreement regarding the provision and content of a reference letter
7. Insurance: Provisions regarding continuation or termination of insurance coverage
1. Schedule 1 - Compensation Calculation: Detailed calculation of the §89b compensation claim
2. Schedule 2 - Outstanding Commissions: List and calculation of all outstanding commission payments
3. Schedule 3 - Company Property: Inventory of all company property to be returned
4. Schedule 4 - Customer List: List of customers and ongoing transactions to be handed over
5. Schedule 5 - Termination Timeline: Detailed timeline for implementing various aspects of the termination
6. Appendix A - Original Agreement: Copy of the original Sales Representative Agreement being terminated
Relevant legal definitions
Agreement
Original Agreement
Principal
Sales Representative
Termination Date
Effective Date
Territory
Products
Customers
New Customers
Existing Customers
Commission
Outstanding Commissions
Compensation Claim
Ausgleichsanspruch
Confidential Information
Intellectual Property Rights
Business Day
Handover Period
Transition Period
Customer Contracts
Sales Documentation
Company Property
Non-Compete Period
Force Majeure
Material Breach
Notice
Governing Law
Jurisdiction
Trade Secrets
Business Records
Commission Period
Final Settlement
Reference Date
Original Agreement
Principal
Sales Representative
Termination Date
Effective Date
Territory
Products
Customers
New Customers
Existing Customers
Commission
Outstanding Commissions
Compensation Claim
Ausgleichsanspruch
Confidential Information
Intellectual Property Rights
Business Day
Handover Period
Transition Period
Customer Contracts
Sales Documentation
Company Property
Non-Compete Period
Force Majeure
Material Breach
Notice
Governing Law
Jurisdiction
Trade Secrets
Business Records
Commission Period
Final Settlement
Reference Date
Clauses
Termination
Compensation
Commission
Confidentiality
Non-Compete
Property Return
Handover
Release of Claims
Governing Law
Dispute Resolution
Assignment
Notices
Entire Agreement
Severability
Waiver
Customer Transfer
Final Settlement
Post-Termination Obligations
Transition Services
Data Protection
Force Majeure
Further Assurance
Costs
Amendment
Third Party Rights
Cooperation
Insurance
Tax
Intellectual Property
Records Retention
Compensation
Commission
Confidentiality
Non-Compete
Property Return
Handover
Release of Claims
Governing Law
Dispute Resolution
Assignment
Notices
Entire Agreement
Severability
Waiver
Customer Transfer
Final Settlement
Post-Termination Obligations
Transition Services
Data Protection
Force Majeure
Further Assurance
Costs
Amendment
Third Party Rights
Cooperation
Insurance
Tax
Intellectual Property
Records Retention
Relevant Industries
Manufacturing
Industrial Products
Consumer Goods
Technology
Pharmaceuticals
Chemical Industry
Automotive
Medical Devices
Construction Materials
Wholesale Trade
Software and IT
Professional Services
Relevant Teams
Legal
Sales
Commercial
Compliance
Business Development
Operations
Executive Leadership
Finance
Contract Administration
Relevant Roles
Sales Director
Commercial Director
Legal Counsel
Contract Manager
Business Development Manager
Sales Operations Manager
Chief Commercial Officer
General Counsel
Sales Representative
Commercial Agent
Regional Sales Manager
Head of Sales
Compliance Officer
Managing Director
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