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Intercompany Cost Plus Agreement
"I need an Intercompany Cost Plus Agreement under German law for IT support services provided by our Munich-based parent company to its subsidiary in Hamburg, with a 5% mark-up rate and implementation date of March 1, 2025."
1. Parties: Identification of the service provider and service recipient entities, including full legal names, registration details, and addresses
2. Background: Context of the agreement, relationship between the parties, and purpose of the cost-plus arrangement
3. Definitions: Definitions of key terms including 'Costs', 'Mark-up', 'Services', 'Transfer Pricing', and other relevant terms
4. Scope of Services: Detailed description of services to be provided under the agreement
5. Cost Calculation: Methodology for calculating applicable costs, including direct and indirect cost components
6. Mark-up Determination: Specification of the agreed mark-up percentage and its calculation basis
7. Invoicing and Payment: Terms for invoicing, payment procedures, currency, and payment timelines
8. Documentation Requirements: Requirements for maintaining documentation to comply with German transfer pricing regulations
9. Audit Rights: Rights of parties to audit cost calculations and supporting documentation
10. Term and Termination: Duration of the agreement and conditions for termination
11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
1. Service Level Requirements: Specific service levels and performance metrics, used when detailed service standards need to be established
2. Intellectual Property Rights: Provisions regarding IP created or used during service provision, included when services involve intellectual property
3. Personnel: Terms regarding personnel providing services, included when specific staff requirements or restrictions apply
4. Confidentiality: Detailed confidentiality provisions, included when sensitive information is involved beyond standard business operations
5. Force Majeure: Provisions for unforeseen circumstances, included when specific risk allocation is needed
6. Transfer Pricing Adjustments: Mechanism for adjusting mark-up rates, included when periodic reviews and adjustments are anticipated
7. Subcontracting: Terms for subcontracting services, included when subcontracting is permitted
1. Schedule 1 - Service Description: Detailed description of all services covered under the agreement
2. Schedule 2 - Cost Components: Detailed list and description of all cost components included in the cost base
3. Schedule 3 - Calculation Methodology: Detailed methodology for cost allocation and mark-up calculation
4. Schedule 4 - Documentation Requirements: Specific documentation requirements and templates for cost reporting
5. Schedule 5 - Key Personnel: List of key personnel involved in service delivery and their roles
6. Appendix A - Transfer Pricing Benchmark Study: Supporting transfer pricing analysis justifying the chosen mark-up rate
7. Appendix B - Service Level Metrics: Detailed performance metrics and measurement methods
Authors
Affiliate
Applicable Law
Base Costs
Business Day
Confidential Information
Cost Base
Cost Plus Mark-up
Direct Costs
Documentation Requirements
Effective Date
Force Majeure
German GAAP
Group
Indirect Costs
Intellectual Property Rights
Invoice
Mark-up
Operating Expenses
Parent Company
Party/Parties
Related Party
Services
Service Provider
Service Recipient
Service Standards
Shared Service Center
Supporting Documentation
Term
Territory
Transfer Pricing
Transfer Pricing Documentation
Working Hours
Service Provision
Service Standards
Cost Calculation
Mark-up Determination
Invoicing
Payment Terms
Transfer Pricing Compliance
Documentation Requirements
Audit Rights
Warranties
Confidentiality
Data Protection
Intellectual Property
Personnel
Liability
Force Majeure
Term and Termination
Change Control
Assignment and Subcontracting
Notices
Entire Agreement
Severability
Amendments
Governing Law
Dispute Resolution
Language
Counterparts
Manufacturing
Technology
Financial Services
Pharmaceuticals
Automotive
Consumer Goods
Professional Services
Energy
Telecommunications
Chemical Industry
Logistics
Healthcare
Legal
Finance
Tax
Compliance
Treasury
Accounting
Operations
Shared Services
Internal Audit
Corporate Development
Risk Management
Chief Financial Officer
Tax Director
Transfer Pricing Manager
Legal Counsel
Finance Manager
Group Controller
Compliance Officer
Head of Shared Services
International Tax Manager
Corporate Finance Director
Operations Director
Financial Controller
Treasury Manager
Head of Accounting
Commercial Director
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