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Indirect Cost Agreement Template for Ireland

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Key Requirements PROMPT example:

Indirect Cost Agreement

"I need an Indirect Cost Agreement under Irish law for a technology shared service center allocating IT infrastructure costs between our parent company and three subsidiaries, with the agreement to commence on March 1, 2025."

Document background
This Indirect Cost Agreement template is designed for use under Irish law when two or more business entities need to establish a formal arrangement for sharing and allocating indirect costs. The document is particularly valuable for organizations operating shared service centers, multinational companies with Irish operations, or groups of affiliated entities sharing resources and overhead costs. It addresses key requirements under Irish corporate law, tax legislation, and EU regulations, providing a comprehensive framework for cost identification, allocation methodology, payment procedures, and compliance requirements. The agreement is essential for ensuring transparent, fair, and legally compliant cost sharing arrangements while minimizing potential disputes and maintaining clear audit trails.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including registered addresses and company details

2. Background: Context of the agreement, relationship between parties, and purpose of the cost-sharing arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Scope of Agreement: Overview of services/activities covered by the indirect cost arrangement

5. Cost Allocation Methodology: Detailed explanation of how indirect costs will be identified, calculated, and allocated

6. Cost Categories: Specification of which indirect costs are included and excluded from the agreement

7. Allocation Keys: Definition of allocation keys or drivers used to distribute costs among parties

8. Calculation and Payment: Procedures for calculating, invoicing, and settling cost allocations

9. Books and Records: Requirements for maintaining accurate records of costs and calculations

10. Audit Rights: Provisions for auditing cost allocations and related records

11. Confidentiality: Protection of confidential information shared under the agreement

12. Term and Termination: Duration of agreement and circumstances allowing termination

13. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction for disputes

Optional Sections

1. Regulatory Compliance: Required when parties are subject to specific regulatory oversight or compliance requirements

2. Tax Provisions: Detailed tax handling when significant cross-border or VAT implications exist

3. Service Levels: Include when quality metrics are relevant to cost allocation

4. Dispute Resolution: Detailed dispute resolution procedures for complex multi-party agreements

5. Insurance Requirements: Specific insurance obligations when high-value or high-risk activities are involved

6. Data Protection: Required when cost sharing involves processing of personal data

7. Change Control: Procedures for modifying allocation methodologies in complex arrangements

8. Force Majeure: Include when external events could significantly impact cost allocation

Suggested Schedules

1. Schedule 1 - Cost Allocation Methodology: Detailed technical explanation of allocation methodologies and calculations

2. Schedule 2 - Covered Services and Activities: Comprehensive list of services and activities subject to cost sharing

3. Schedule 3 - Allocation Keys and Drivers: Detailed specification of allocation keys and their application

4. Schedule 4 - Service Levels and Performance Metrics: Performance standards and measurement criteria if applicable

5. Schedule 5 - Reporting Templates: Standard formats for cost allocation reports and invoices

6. Schedule 6 - Contact Details: Key contacts for operational and administrative matters

7. Appendix A - Sample Calculations: Examples of cost allocation calculations

8. Appendix B - Governance Procedures: Procedures for oversight and management of the cost sharing arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
















































Clauses




































Relevant Industries

Financial Services

Technology

Manufacturing

Professional Services

Healthcare

Retail

Telecommunications

Pharmaceutical

Energy

Construction

Transportation and Logistics

Media and Entertainment

Relevant Teams

Finance

Accounting

Legal

Compliance

Tax

Treasury

Operations

Shared Services

Internal Audit

Corporate Development

Financial Planning and Analysis

Risk Management

Relevant Roles

Chief Financial Officer

Financial Controller

Cost Accounting Manager

Shared Services Director

Finance Manager

Corporate Controller

Treasury Manager

Tax Director

Legal Counsel

Compliance Officer

Operations Director

Business Unit Head

Group Financial Director

Management Accountant

Financial Planning Analyst

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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