Management Fee/Bonus Fee Clause Samples
The Management Fee/Bonus Fee clause defines the compensation structure for a manager or service provider, specifying both a standard management fee and the conditions under which a bonus fee may be earned. Typically, the management fee is a fixed percentage of assets under management or a set amount paid periodically, while the bonus fee is contingent on achieving certain performance targets or milestones. This clause ensures that compensation is clearly outlined and incentivizes the manager to meet or exceed agreed-upon objectives, thereby aligning the interests of the parties and reducing potential disputes over payment.
Management Fee/Bonus Fee. As compensation to Manager for the ------------------------ full and faithful performance of its duties under this Agreement, Owner shall pay Manager the Management Fee and Bonus Fee described below.
(a) The Management Fee as to each "Management Year" (as defined below) shall be the amount of One Hundred Twenty-Five Thousand Dollars ($125,000); provided that on the third, sixth and ninth anniversaries hereof and each such third anniversary thereafter during the term of this Agreement, such amount shall be adjusted by the Inflation Amount, provided further that the Inflation Amount shall in no event exceed 9%. The Management Fee shall be prorated for any Management Year comprised of less than twelve (12) calendar months.
(b) The Bonus Fee as to each Management Year shall be an amount equal to the positive difference, if any, between (A) the lesser of (i) five (5) percent of Gross Income for such