A Management Agreement is essential when one entity wishes to delegate operational control or management responsibilities to another professional entity or individual. This contract type is commonly used across various industries including real estate, hospitality, and healthcare, where specialized management expertise is required. Under U.S. jurisdiction, the Management Agreement must comply with federal regulations and state-specific laws, particularly regarding employment, compensation, and fiduciary responsibilities. The agreement typically covers crucial elements such as scope of authority, performance standards, fee structures, reporting requirements, and termination provisions, while clearly delineating the rights and obligations of both parties.
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1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details
2. Background/Recitals: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the management services to be provided
5. Term and Termination: Duration of agreement and conditions for termination
6. Compensation: Fee structure, payment terms, and expenses
7. Authority and Responsibilities: Defines management powers and limitations
1. Non-Compete: Restricts manager's ability to compete - used when protecting business interests is crucial
2. Performance Metrics: Specific KPIs and performance standards - used when quantifiable metrics are important
3. Insurance Requirements: Specific insurance coverage requirements - used when managing high-risk activities
1. Schedule A - Services Description: Detailed outline of management services
2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment terms
3. Schedule C - Performance Metrics: Specific KPIs and measurement criteria
4. Schedule D - Reporting Requirements: Required reports and their frequency
5. Schedule E - Key Personnel: List of key management team members
Relevant legal definitions
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