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 搂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 搂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 搂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 搂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
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