Management Fee Agreement

Management Fee Agreement Template for Denmark

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Document background

A Management Fee Agreement is essential when establishing a formal arrangement for the provision of management services between parties under Danish jurisdiction. This document type is commonly used in corporate groups, investment structures, and professional service relationships where one entity provides management expertise to another for a fee. The agreement needs to comply with Danish legal requirements, including the Danish Contracts Act, Financial Business Act, and relevant tax regulations. It typically details the scope of services, fee structure, payment terms, reporting obligations, and compliance requirements. The document is particularly important for documenting related party transactions, ensuring proper corporate governance, and maintaining transparency in fee arrangements.

Suggested Sections

1. Parties: Identification of the service provider and recipient of management services

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

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Services: Detailed description of management services to be provided

5. Management Fee Structure: Calculation methodology and amounts of management fees

6. Payment Terms: Timing, method, and currency of fee payments

7. Reporting and Documentation: Requirements for service documentation and performance reporting

8. Term and Termination: Duration of agreement and termination provisions

9. Confidentiality: Protection of confidential information exchanged

10. Liability and Indemnification: Allocation of risks and liability between parties

11. Governing Law and Jurisdiction: Specification of Danish law and jurisdiction for disputes

Optional Sections

1. Regulatory Compliance: Specific compliance obligations - include if parties are regulated entities

2. Data Protection: GDPR compliance provisions - include if personal data is processed

3. Non-Competition: Restrictions on competitive activities - include for sensitive industry sectors

4. Insurance: Insurance requirements - include for high-value services

5. Force Majeure: Provisions for unforeseen circumstances - include for long-term agreements

6. Assignment and Subcontracting: Rights to transfer or delegate obligations - include if relevant to business model

7. Audit Rights: Right to audit service provision - include for regulated industries or complex fee structures

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services and deliverables

2. Schedule 2 - Fee Calculation: Detailed methodology for calculating management fees

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Reporting Template: Format and content of required service reports

5. Schedule 5 - Key Personnel: List of key individuals responsible for service delivery

6. Appendix A - Power of Attorney: If required for specific management actions

7. Appendix B - Compliance Requirements: Specific regulatory or internal compliance requirements

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