Free Intercompany Cost Sharing Agreement Template
Intercompany Cost-Sharing Agreement
I. Agreement Overview
This Intercompany Cost Sharing Agreement ("Agreement") is entered into on April 10, 2050, by and between:
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[Your Company Name], a corporation incorporated under the laws of Colorado, with its principal place of business at [Your Company Address] ("Party A"), and
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ZenExa, a corporation incorporated under the laws of Colorado, with its principal place of business at Denver, CO 80202 ("Party B").
This Agreement outlines the terms and conditions under which costs incurred for shared services will be allocated between the Parties.
II. Purpose and Scope
The purpose of this Agreement is to define the terms for sharing costs related to services and resources used by both Parties in connection with mutual operations. The shared services will include administrative, technical, legal, and operational services as agreed upon by the Parties.
III. Shared Costs
The following costs shall be shared between [Your Company Name] and ZenExa:
1. Administrative Costs
These costs will include salaries, office space, supplies, and other overhead expenses related to administrative functions.
2. Legal and Compliance Costs
Costs incurred for legal advice, audits, and compliance with industry standards or regulations.
3. Technology Costs
Expenses related to software, hardware, and IT services used by both Parties, including licensing fees and technical support.
4. Operational Costs
Shared expenses related to day-to-day business operations, including travel, employee training, and customer service operations.
5. Marketing and Advertising Costs
Expenses associated with joint marketing campaigns, advertising, and promotional activities for products or services benefiting both Parties.
IV. Allocation of Costs
1. Method of Allocation
Costs will be allocated based on the following method:
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For shared administrative costs: The total will be split equally between the Parties, unless otherwise agreed upon.
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For specialized costs: Costs will be allocated based on the actual usage of services, as determined by the Parties on a case-by-case basis.
2. Payment Terms
Each Party will be invoiced for their portion of the shared costs on a quarterly basis. Payments are due within 30 days of receiving the invoice. Failure to pay within this period will result in a late fee of 1.5% per month on the outstanding balance.
V. Confidentiality and Data Sharing
Both Parties agree to maintain confidentiality regarding the cost-sharing arrangements and any proprietary or sensitive information exchanged under this Agreement. Any data shared will be used solely for the purpose of this Agreement and will not be disclosed to any third party without prior consent from the other Party.
VI. Duration and Termination
1. Agreement Duration
This Agreement will be effective from April 10, 2050, and will continue for a period of two (2) years unless terminated earlier in accordance with the terms of this Agreement.
2. Termination for Convenience
Either Party may terminate this Agreement by providing 30 days written notice to the other Party.
3. Breach and Termination
If a Party breaches any material term of this Agreement and fails to remedy such breach within 15 days after notice from the non-breaching Party, the non-breaching Party may terminate this Agreement immediately.
VII. Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of Colorado, without regard to its conflict of law provisions. Any dispute or claim arising from this Agreement shall be resolved through binding arbitration in Denver, Colorado, under the rules of the American Arbitration Association.
VIII. Signatories
For [Your Company Name]:
Name: [Your Name]
Job Title: Chief Financial Officer
Date: April 10, 2050
For ZenExa:
Name: Jolie Cassin
Job Title: Chief Operations Officer
Date: April 10, 2050
Should you have any inquiries regarding this Agreement, please contact [Your Name] at [Your Email] or [Your Company Email] for further assistance.
