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The Operating Management Agreement is essential in business arrangements where owners seek professional expertise to manage their assets or operations in the Philippines. This document type is commonly used in various sectors including hospitality, healthcare, and real estate, where specialized operational knowledge is crucial for success. The agreement must comply with Philippine legislation, including the Civil Code, Corporation Code, and sector-specific regulations. It typically covers key aspects such as appointment terms, operational standards, financial arrangements, personnel management, reporting requirements, and termination provisions. The document is particularly relevant in cases where owners want to maintain asset ownership while delegating operational control to experienced management companies, ensuring clear delineation of responsibilities and protection of both parties' interests under Philippine law.

1. Parties: Identifies the Owner and the Operator, including their complete legal names, addresses, and company registration details

2. Background: Sets out the context of the agreement, including details about the business/property being managed and the operator's expertise

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Specifies the operator's appointment, scope of authority, and duration of the agreement

5. Operator's Rights and Obligations: Details the responsibilities and authority of the operator in managing the business

6. Owner's Rights and Obligations: Outlines the owner's responsibilities and retained rights

7. Personnel and Employment: Addresses staffing arrangements, including hiring, training, and employment terms

8. Financial Arrangements: Details management fees, performance fees, expense allocations, and payment terms

9. Operating Standards: Establishes the required standards and benchmarks for operation

10. Reporting and Compliance: Specifies reporting requirements and compliance obligations

11. Intellectual Property: Addresses ownership and usage of trademarks, systems, and proprietary information

12. Insurance and Indemnification: Details insurance requirements and indemnification obligations

13. Termination: Sets out grounds for termination and the termination process

14. Post-Termination Obligations: Specifies obligations and transitions upon agreement termination

15. General Provisions: Contains standard legal provisions including notices, governing law, and dispute resolution