Management Fee Agreement Template for India

The Management Fee Agreement is a crucial document used in Indian business operations where one entity provides strategic, operational, or administrative management services to another entity. This agreement type is commonly employed in corporate group structures, investment arrangements, or professional service relationships where specialized management expertise is required. The document clearly defines the scope of services, fee calculations, payment mechanisms, and service standards while ensuring compliance with Indian regulatory requirements, including Companies Act provisions, tax regulations, and foreign exchange laws where applicable. It serves as a formal framework for documenting management service arrangements, protecting both parties' interests, and establishing clear accountability and performance metrics.

1. Parties: Identification and details of the service provider and recipient, including registered addresses and company registration numbers

2. Background: Context of the agreement, relationship between parties, and purpose of the management services arrangement

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Term and Appointment: Duration of the agreement and formal appointment of the management service provider

6. Management Fee Structure: Detailed breakdown of fees, calculation methodology, and payment terms

7. Payment Terms: Timeline for payments, invoicing process, and payment methods

8. Obligations of the Service Provider: Duties, responsibilities, and service standards of the management service provider

9. Client Obligations: Responsibilities and obligations of the client, including provision of information and access

10. Representations and Warranties: Standard and specific warranties from both parties

11. Confidentiality: Provisions for handling confidential information

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. Indemnification: Mutual indemnification provisions and liability limitations

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability