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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."
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
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
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
Financial Services
Technology
Manufacturing
Professional Services
Healthcare
Retail
Telecommunications
Pharmaceutical
Energy
Construction
Transportation and Logistics
Media and Entertainment
Finance
Accounting
Legal
Compliance
Tax
Treasury
Operations
Shared Services
Internal Audit
Corporate Development
Financial Planning and Analysis
Risk Management
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
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