The Finder's Fee Agreement is essential for businesses operating in Germany who wish to formalize arrangements with intermediaries who facilitate valuable business connections or opportunities. This document type is commonly used when companies seek to expand their network, identify potential clients, or secure strategic partnerships through third-party introductions. The agreement must comply with German legal requirements, particularly the provisions of the German Civil Code (BGB) regarding brokerage contracts, and may also need to address specific regulatory requirements depending on the industry sector. Key elements typically include detailed definition of success criteria, fee calculation methods, payment triggers, and clear scope of authorized activities. The document should be structured to prevent disputes about commission claims and ensure transparency in the business relationship while maintaining compliance with German commercial law and relevant regulatory frameworks.
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1. Parties: Identification of the principal and the finder, including full legal names, addresses, and registration details if applicable
2. Background: Context of the agreement, including the principal's business and the type of introduction/connection sought
3. Definitions: Key terms including 'Successful Introduction', 'Target', 'Fee', 'Qualifying Transaction', and other relevant terms
4. Scope of Services: Detailed description of the finder's role, including specific activities authorized and prohibited
5. Fee Structure: Clear definition of when and how the finder's fee is earned, including success criteria and payment triggers
6. Payment Terms: Timing and method of payment, including any conditions precedent to payment
7. Representations and Warranties: Statements by both parties regarding their capacity, authority, and compliance with applicable laws
8. Confidentiality: Obligations regarding confidential information exchanged during the engagement
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Exclusivity/Non-Exclusivity: Whether the finder has exclusive rights for specific targets or territories
11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
12. General Provisions: Standard clauses including notices, amendments, assignment, and severability
1. Compliance with Industry Regulations: Required when the finder's activities fall under specific regulatory frameworks (e.g., financial services, real estate)
2. Non-Circumvention: Used when there's risk of the principal bypassing the finder to avoid paying fees
3. Tail Period: Defines period after termination during which finder remains entitled to fees for previously introduced contacts
4. International Transactions: Added when the agreement involves cross-border activities or international targets
5. Data Protection: Detailed GDPR compliance section when significant personal data processing is involved
6. Insurance Requirements: Specific insurance obligations when required by industry standards or risk profile
7. Non-Solicitation: Prevents parties from hiring each other's employees or contractors
8. Dispute Resolution: Alternative dispute resolution procedures if preferred over standard court proceedings
1. Schedule 1 - Service Description: Detailed scope of finder's services, including specific targets or industries
2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure, including examples and calculation methods
3. Schedule 3 - Approved Targets: List of pre-approved potential targets or industries, if applicable
4. Schedule 4 - Reporting Requirements: Format and frequency of progress reports and introduction documentation
5. Appendix A - Introduction Protocol: Step-by-step process for making and documenting introductions
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