The Commercial Management Agreement serves as a foundational document for businesses seeking professional management services in the United States. It outlines the relationship between the management company and the client, detailing service scope, performance expectations, fee structures, and operational parameters. This agreement is particularly crucial when outsourcing management functions or establishing long-term management relationships. It must comply with federal and state regulations while protecting both parties' interests through clear delineation of rights, obligations, and risk allocation.
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1. Parties: Identification of the parties entering into the agreement, including legal names and addresses
2. Background/Recitals: Context and purpose of the agreement, including any relevant business relationship history
3. Definitions: Key terms used throughout the agreement and their specific meanings
4. Scope of Services: Detailed description of management services to be provided
5. Term and Termination: Duration of the agreement and conditions for termination
6. Compensation: Fee structure, payment terms, and reimbursement provisions
7. Obligations and Responsibilities: Specific duties of each party under the agreement
1. Non-Compete: Restrictions on competitive activities - used when protecting business interests from competition is crucial
2. Force Majeure: Provisions for unforeseeable circumstances - used when operations might be affected by external events
3. Insurance Requirements: Specific insurance coverage requirements - used when management involves significant operational risks
4. Intellectual Property Rights: Protection of IP and ownership provisions - used when management involves creation or use of intellectual property
1. Schedule of Services: Detailed breakdown of management services to be provided
2. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms
3. Performance Metrics: KPIs and performance measurement criteria
4. Operational Procedures: Specific procedures and protocols for management activities
5. Insurance Requirements Schedule: Detailed insurance coverage requirements and limits
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