Finally, a frequent talking point is the management company`s ability to waive administrative costs, reduce them and dissolve funds. Executives want to maintain maximum flexibility in managing investor relations and investment conditions, while lenders want to ensure that the management company does not lower fees or terminate funds in a way that the management company is unable to repay its debts to the lender. And neither party wants to impose restrictions that could be considered a violation of the management company`s obligations. As a result, these restrictions are often the subject of in-depth negotiations and are tailored to the facts and circumstances of the management company and associated funds. While the borrower is an investment fund for subscription lines and lines of credit, the borrower is, for a line of management fees, the management company that provides management services to a group of investment funds. The management company receives a management tax (usually a percentage of the Fund`s assets) from each fund, which is monthly or quarterly and is paid regularly (quarterly, semi-annual or annually) to the management company. The terms of these administrative costs are generally documented at one of the two locations, either in the investment fund documents or in a separate investment management agreement. The management company, as collateral for its obligations under the facility, pledges its rights, administrative costs (and, in some cases, other fees to which the management company is entitled) and these fees are paid into a cash account that is mortgaged to the lender and subject to control. (a) Based on the services provided by the trustees, the company pays directors an annual, non-refundable and irrevocable administrative fee (the “administrative tax”) of $3,000,000 payable at the end of each quarterly schedule in quarterly late rates, subject to a timely adjustment as below.

Initial administrative costs are assessed to match the portion of the current calendar year that has elapsed before the closing date. Administrative costs are allocated so that each chief operating officer receives 50% of the administrative costs (including each phased payment). Of course, the owner can control the management company`s ability to make decisions about some or all of the issues described above. What kind of control should an owner have and what is reasonable to expect from an owner to maintain a certain degree of influence over the management company, while giving it the kind of independence that the management company deems necessary to carry out its work? (c) To the extent that, for any reason, the company does not pay or pay the management tax, including for reasons of prohibiting such payment under an applicable law or the terms of an agreement or agreement regarding the indebtedness of the company or its subsidiaries, the payment of the company or one of its subsidiaries is deferred to the managers of the accrued administrative costs and is immediately deferred. postponed to the old (i) day when the payment of such a deferred administration fee is no longer prohibited under such an agreement or cancellation applicable to the company and the company or its subsidiaries, it is also able to make or make such a payment and (ii) proceed with a liquidation, liquidation or liquidation of the company.