Intercompany Recharge Agreement
I. Overview of the Agreement
This Intercompany Recharge Agreement ("Agreement") is made and entered into on November 15, 2050, by and between:
[Your Company Name], a corporation duly organized under the laws of Utah, with its principal office located at [Your Company Address], and
BluWave, a corporation duly organized under the laws of Utah, with its principal office located at Salt Lake City, UT 84101.
This Agreement sets forth the terms and conditions under which [Your Company Name] will recharge costs for certain services and resources to BluWave, ensuring proper cost allocation and compliance with applicable financial regulations governing intercompany transactions.
II. Purpose and Objectives
A. Purpose
The purpose of this Agreement is to regulate the recharging of costs incurred by [Your Company Name] to BluWave for services, support, and resources provided by [Your Company Name] to BluWave in the ordinary course of business. This includes all shared services, overhead costs, and expenses directly related to the provision of such services.
B. Objectives
The primary objectives of this Agreement are as follows:
To establish clear terms for the allocation and reimbursement of costs between [Your Company Name] and BluWave.
To ensure transparency and fairness in the recharging process.
To ensure compliance with relevant tax laws, accounting standards, and financial regulations governing intercompany transactions.
III. Scope of Services and Rechargeable Costs
A. Scope of Services
[Your Company Name] agrees to provide the following services and resources to BluWave:
IT and Technology Support: Provision of IT infrastructure, software systems, network maintenance, and user support services.
HR and Administrative Services: Assistance with employee management, recruitment, payroll, and benefits administration.
Marketing and Branding Services: Support in branding, advertising campaigns, market research, and promotional activities.
Logistics and Warehousing: Services related to storage, inventory management, and order fulfillment.
B. Rechargeable Costs
The costs associated with the services provided by [Your Company Name] will be recharged to BluWave as follows:
IT and Technology Support: Rechargeable costs will be based on a percentage of the total IT-related expenses incurred by [Your Company Name]. This includes hardware, software licenses, and maintenance fees.
HR and Administrative Services: Rechargeable costs will be allocated based on the number of employees from BluWave using the services, or a fixed monthly fee per employee.
Marketing and Branding Services: Rechargeable costs will be calculated based on actual expenses incurred, including agency fees, campaign costs, and any third-party services utilized.
Logistics and Warehousing: Rechargeable costs will be based on the volume of goods handled, stored, and shipped on behalf of BluWave.
C. Calculation of Rechargeable Costs
Rechargeable costs will be calculated on a monthly basis and will be invoiced to BluWave by [Your Company Name] within 10 business days after the end of each month. Invoices will provide a detailed breakdown of the services rendered and the associated costs, with appropriate supporting documentation.
IV. Payment Terms
A. Payment Schedule
Invoicing: [Your Company Name] will issue an invoice to BluWave for the rechargeable costs as per the agreed terms outlined in Section III.
Payment Due Date: Payments will be due 30 days from the date of the invoice.
Currency: All payments shall be made in USD, unless otherwise agreed upon by both parties.
Late Payments: Any late payments will be subject to an interest charge of 2% per month or the maximum amount allowed by law, whichever is less.
B. Dispute Resolution
In case of any disputes regarding the invoicing or recharge calculations, both parties will meet in good faith to resolve the issue within 15 business days from the receipt of the disputed invoice.
V. Confidentiality
A. Confidential Information
Both parties agree to treat all proprietary and confidential information, including financial details, operational data, and intellectual property, as confidential and will not disclose such information to any third party without the prior written consent of the other party, except as required by law.
B. Non-Disclosure Obligations
This confidentiality obligation will remain in effect for 5 years after the termination of this Agreement.
VI. Term and Termination
A. Term of Agreement
This Agreement shall begin on November 15, 2050, and continue in effect until terminated by mutual written agreement or as otherwise provided for in this Agreement.
B. Termination for Convenience
Either party may terminate this Agreement with 30 days' written notice to the other party, subject to the terms of the agreement.
C. Termination for Breach
Either party may terminate this Agreement if the other party breaches any material term of this Agreement and fails to cure such breach within 15 days of receiving written notice of the breach.
D. Post-Termination Obligations
Upon termination, both parties shall settle any outstanding recharges and payments within 30 days of termination.
VII. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of Utah, without regard to its conflict of law provisions.
VIII. Signatories
For [Your Company Name]:
Name: [Your Name]
Job Title: Chief Financial Officer
Date: November 15, 2050
For BluWave:
Name: Jarvis White
Job Title: Chief Operating Officer
Date: November 15, 2050
For any inquiries or further clarification, please contact [Your Name] at [Your Email] or [Your Company Email].
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