The Business Management Agreement serves as a foundational document for outsourced management arrangements in the United States. It is typically used when a company seeks to delegate operational management to professional managers or a management company. The agreement addresses crucial aspects such as strategic planning, operational oversight, financial management, and performance expectations. It must comply with both federal and state-specific regulations, including corporate governance requirements, employment laws, and industry-specific standards. This document is particularly important for establishing clear lines of authority, accountability, and risk allocation between parties.
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1. Parties: Identifies the parties entering into the agreement, including legal names and addresses
2. Background/Recitals: Provides 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. Obligations and Responsibilities: Duties of both manager and client
8. Governing Law: Specifies jurisdiction and applicable laws
1. Non-Compete: Restricts competitive activities - include when protecting business interests from competition
2. Force Majeure: Addresses unforeseeable circumstances preventing performance of obligations - include when significant external risks exist
3. Insurance: Insurance requirements and coverage - include when specific risks need to be covered
4. Intellectual Property: IP ownership and usage rights - include when IP is created or used in management services
1. Schedule A - Services Description: Detailed breakdown of management services
2. Schedule B - Fee Schedule: Detailed fee structure and payment terms
3. Schedule C - Key Personnel: List of key management team members
4. Schedule D - Performance Metrics: KPIs and performance measurement criteria
5. Schedule E - Reporting Requirements: Format and frequency of management reports
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Commencement Date
Confidential Information
Effective Date
Fees
Force Majeure Event
Initial Term
Intellectual Property Rights
Key Performance Indicators
Management Services
Manager
Material Breach
Notice
Operating Expenses
Performance Standards
Personnel
Renewal Term
Reports
Service Level Agreement
Service Provider
Term
Territory
Working Hours
Applicable Laws
Business Day
Commencement Date
Confidential Information
Effective Date
Fees
Force Majeure Event
Initial Term
Intellectual Property Rights
Key Performance Indicators
Management Services
Manager
Material Breach
Notice
Operating Expenses
Performance Standards
Personnel
Renewal Term
Reports
Service Level Agreement
Service Provider
Term
Territory
Working Hours
Clauses
Appointment and Authority
Scope of Services
Term and Termination
Compensation and Fees
Performance Standards
Reporting Requirements
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property Rights
Representations and Warranties
Indemnification
Insurance
Force Majeure
Assignment and Delegation
Notices
Dispute Resolution
Governing Law
Amendment and Modification
Entire Agreement
Severability
Compliance with Laws
Personnel and Staffing
Record Keeping
Audit Rights
Liability Limitations
Data Protection
Business Continuity
Scope of Services
Term and Termination
Compensation and Fees
Performance Standards
Reporting Requirements
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property Rights
Representations and Warranties
Indemnification
Insurance
Force Majeure
Assignment and Delegation
Notices
Dispute Resolution
Governing Law
Amendment and Modification
Entire Agreement
Severability
Compliance with Laws
Personnel and Staffing
Record Keeping
Audit Rights
Liability Limitations
Data Protection
Business Continuity
Relevant Industries
Relevant Teams
Relevant Roles
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