The Operating Management Agreement serves as a comprehensive framework for outsourcing operational management responsibilities while maintaining quality control and accountability. This document is essential when a business or property owner wishes to delegate day-to-day management to a professional management company while retaining ownership. It addresses key aspects such as service scope, performance standards, fee structures, and risk allocation, all while ensuring compliance with U.S. federal and state regulations. The agreement is particularly crucial for businesses seeking professional management expertise without transferring ownership rights.
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1. Parties: Identification of the contracting parties and their legal status
2. Background: Context and purpose of the management agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of management services to be provided
5. Term and Termination: Duration of agreement and termination conditions
6. Compensation: Fee structure and payment terms
7. Obligations and Responsibilities: Duties of both parties
8. Compliance with Laws: Requirements to comply with applicable federal, state and local laws
9. Governing Law: Specification of jurisdiction and applicable law
1. Performance Metrics: Specific KPIs and performance standards for management services
2. Intellectual Property: IP ownership and usage rights in management operations
3. Force Majeure: Provisions for unforeseeable circumstances affecting performance
4. Data Protection and Privacy: Requirements for handling sensitive information and compliance with privacy laws
5. Environmental Compliance: Specific provisions related to environmental regulations and responsibilities
1. Schedule A - Service Level Agreement: Detailed service specifications and performance standards
2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment structure
3. Schedule C - Key Personnel: List of key management team members and their roles
4. Schedule D - Operating Procedures: Detailed operational guidelines and protocols
5. Schedule E - Insurance Requirements: Required insurance coverage and limits
6. Schedule F - Compliance Requirements: Detailed listing of applicable laws and regulations
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