Cost Sharing Agreement

The Cost Sharing Agreement is a document that outlines the agreement between Party 1 (the servicer) and Party 2 (the company) regarding the provision of office and administrative services. The document begins by highlighting the importance of the agreement, which is to reduce the company's administrative and other costs by utilizing the servicer's office space and administrative services.

 

The agreement is divided into several sections, each addressing different aspects of the arrangement. The first section provides a detailed introduction, explaining the purpose of the agreement and the services to be provided by the servicer. It emphasizes that the servicer will perform services and activities related to the day-to-day operations of the company.

 

The second section focuses on the reimbursement of shared costs. It states that the company agrees to reimburse the servicer on a monthly basis for the costs of the services and facilities provided. The actual cost attributable to the company's use of the services will be determined by the servicer, with the company's reasonable approval. The charges for services will be based on the servicer's actual costs without any allowance or margin for profit.

 

The third section addresses the payment of shared costs. It states that the servicer will invoice the company promptly each month, and the company is required to make the payment within five business days of the invoice date. If the company disagrees with any invoiced amount, it can notify the servicer in writing and defer payment of the disputed item until the disagreement is resolved.

 

The fourth section discusses the maintenance of books and records. It states that the servicer will maintain appropriate and accurate books of account and records relating to the services utilized by the company. These books and records will be accessible for inspection by the company's representatives, including auditors, at any time during normal business hours.

 

The fifth section addresses the limitation of liability. It states that if any services under the agreement are negligently performed or omitted, the servicer will rectify the situation at no extra expense to the company. However, the maximum liability of both parties to each other is limited to the total sums payable by the company to the servicer under the agreement.

 

The document also includes sections on termination, law and jurisdiction, and a signature block for both parties. The termination section allows either party to terminate the agreement by providing one month's written notice. The law and jurisdiction section states that the parties will use all reasonable endeavors to resolve any disputes amicably and in good faith.

 

In summary, the Cost Sharing Agreement is a detailed document that outlines the agreement between the servicer and the company regarding the provision of office and administrative services. It covers various aspects of the arrangement, including reimbursement of shared costs, payment terms, maintenance of books and records, limitation of liability, termination, and law and jurisdiction.

How to use this document?

1. Reimbursement of shared costs: The company is required to reimburse the servicer on a monthly basis for the costs of the services and facilities provided. The actual cost attributable to the company's use of the services will be determined by the servicer, with the company's reasonable approval.

2. Payment of shared costs: The servicer will invoice the company promptly each month, and the company is required to make the payment within five business days of the invoice date. If the company disagrees with any invoiced amount, it can notify the servicer in writing and defer payment of the disputed item until the disagreement is resolved.

3. Maintenance of books and records: The servicer will maintain appropriate and accurate books of account and records relating to the services utilized by the company. These books and records will be accessible for inspection by the company's representatives, including auditors, at any time during normal business hours.

4. Limitation of liability: If any services under the agreement are negligently performed or omitted, the servicer will rectify the situation at no extra expense to the company. However, the maximum liability of both parties to each other is limited to the total sums payable by the company to the servicer under the agreement.

5. Termination: Either party can terminate the agreement by providing one month's written notice to the other party or in a mutually agreed manner.

6. Law and jurisdiction: The parties should make all reasonable efforts to resolve any disputes amicably and in good faith. If a dispute cannot be resolved, the agreement should specify the applicable law and jurisdiction.

Please note that this guidance is a summary of the key steps and considerations. It is important to refer to the actual document for the complete and accurate instructions.