The Management Agreement is essential in situations where professional management expertise is required for business operations in India. This document is commonly used when companies seek external management services, during corporate restructuring, or when establishing new business ventures requiring professional management oversight. The agreement must comply with Indian legal requirements, including the Companies Act 2013, Indian Contract Act 1872, and relevant labor laws. The Management Agreement typically includes detailed provisions for service scope, authority delegation, performance standards, compensation structures, and operational guidelines, making it suitable for various business arrangements from single-facility management to comprehensive corporate operations management. It's particularly relevant in scenarios involving business expansion, turnaround situations, or when specialized management expertise is needed.
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1. Parties: Identification of the parties entering into the agreement, including registered addresses and company details
2. Background: Context of the agreement, business rationale, and brief description of the parties' intentions
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Appointment and Scope of Services: Terms of appointment and detailed description of management services to be provided
5. Authority and Limitations: Extent and limitations of management authority, decision-making powers, and reserved matters
6. Duties and Responsibilities: Specific obligations of the management service provider and the client
7. Management Fees and Expenses: Fee structure, payment terms, reimbursable expenses, and invoicing procedures
8. Performance Standards: Expected service levels, KPIs, and quality standards
9. Representations and Warranties: Statements of fact and assurances from both parties
10. Confidentiality: Protection and handling of confidential information
11. Intellectual Property Rights: Ownership and usage rights of IP created during the management services
12. Term and Termination: Duration of agreement, renewal terms, and termination provisions
13. Indemnification and Liability: Risk allocation, limitations of liability, and indemnification obligations
14. Force Majeure: Provisions for unforeseen circumstances affecting performance
15. Governing Law and Dispute Resolution: Applicable law and mechanisms for resolving disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Compete and Non-Solicitation: Restrictions on competitive activities and employee solicitation, used when protecting business interests is crucial
2. Compliance with Anti-Corruption Laws: Specific provisions for compliance with anti-corruption laws, important for international parties or public sector contracts
3. Insurance: Insurance requirements and obligations, relevant when specific risk coverage is needed
4. Data Protection: Provisions for handling personal data, important when processing sensitive information
5. Foreign Exchange Compliance: Required for cross-border transactions and international parties
6. Step-In Rights: Rights to take over management in specific circumstances, useful in critical service arrangements
7. Transition Services: Provisions for handover of management responsibilities, important for temporary management arrangements
1. Schedule 1 - Scope of Services: Detailed description of management services, deliverables, and exclusions
2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, incentives, and payment calculations
3. Schedule 3 - Key Personnel: List of key management team members and their roles
4. Schedule 4 - Performance Metrics: Detailed KPIs, measurement methodologies, and reporting requirements
5. Schedule 5 - Delegated Authority Limits: Specific financial and operational authority limits for management decisions
6. Schedule 6 - Required Reports: List and format of required management reports and their frequency
7. Schedule 7 - Compliance Requirements: Specific regulatory and compliance obligations
8. Appendix A - Standard Operating Procedures: Detailed operational procedures and guidelines
9. Appendix B - Form of Reports: Templates for required management reports
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