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Management Fee Agreement
"I need a Management Fee Agreement for our private equity firm to provide investment management services to a German portfolio company, including a 2% base fee and 20% performance fee structure, starting January 2025."
1. Parties: Identification of the service provider (manager) and the recipient (company), including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the management services
3. Definitions: Key terms used throughout the agreement, including 'Management Services', 'Fee Period', 'Performance Metrics', etc.
4. Scope of Services: Detailed description of management services to be provided
5. Management Fee Structure: Base fee, calculation method, payment terms, and frequency
6. Payment Terms: Invoicing details, payment deadlines, currency, and payment method
7. Obligations of the Manager: Key responsibilities, service standards, and performance requirements
8. Obligations of the Company: Company's duties, including information provision and cooperation
9. Term and Termination: Duration of agreement, renewal terms, and termination provisions
10. Confidentiality: Protection of confidential information and trade secrets
11. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements
12. Force Majeure: Provisions for unforeseen circumstances affecting performance
13. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes
14. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Performance Metrics: Specific KPIs and performance measurement criteria - include when fee is performance-based
2. Variable Fee Components: Structure for success fees or performance-based compensation - include for complex fee arrangements
3. Intellectual Property Rights: IP ownership and licensing provisions - include when services involve creation of IP
4. Non-Competition: Restrictions on competitive activities - include when protecting market position
5. Data Protection: GDPR compliance measures - include when personal data processing is involved
6. Service Level Agreement: Detailed service standards and response times - include for technical or operational services
7. Regulatory Compliance: Specific regulatory obligations - include for regulated industries
8. Group Company Provisions: Extension of services to affiliates - include for corporate group structures
1. Schedule 1 - Scope of Services: Detailed breakdown of management services and deliverables
2. Schedule 2 - Fee Calculation: Detailed methodology for calculating management fees
3. Schedule 3 - Key Personnel: List of key management team members and their roles
4. Schedule 4 - Service Levels: Specific performance standards and metrics
5. Schedule 5 - Reporting Requirements: Templates and timing for required reports
6. Appendix A - Power of Attorney: If required for specific management actions
7. Appendix B - Company Group Structure: Overview of company group for scope definition
8. Appendix C - Compliance Guidelines: Specific compliance requirements and procedures
Authors
Financial Services
Private Equity
Investment Management
Professional Services
Real Estate
Manufacturing
Technology
Healthcare
Consulting
Industrial Services
Retail
Energy
Infrastructure
Telecommunications
Legal
Finance
Operations
Corporate Development
Tax
Compliance
Treasury
Investment Management
Business Development
Risk Management
Corporate Governance
Strategy
Chief Executive Officer
Chief Financial Officer
Managing Director
General Counsel
Legal Director
Finance Director
Head of Operations
Investment Manager
Corporate Controller
Tax Director
Compliance Officer
Business Development Manager
Portfolio Manager
Management Consultant
Group Financial Controller
Treasury Manager
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