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Intercompany Management Fees Agreement
"I need an Intercompany Management Fees Agreement for our Hong Kong regional headquarters to provide strategic management and IT support services to our manufacturing subsidiaries in Asia, with a cost-plus markup structure and specific service level requirements."
1. Parties: Identification of the service provider and recipient companies
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of management services to be provided
5. Service Standards: Quality and performance standards for service delivery
6. Fees and Payment Terms: Fee calculation methodology, payment schedule, and invoicing requirements
7. Transfer Pricing Compliance: Provisions ensuring compliance with transfer pricing regulations and arm's length principles
8. Term and Termination: Duration of agreement and termination rights
9. Confidentiality: Protection of confidential information exchanged during service provision
10. Intellectual Property: Ownership and usage rights of IP created or used in service delivery
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Force Majeure: Provisions for handling unforeseen circumstances
13. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Personnel and Secondment: Include when services involve staff secondment or dedicated personnel arrangements
2. Data Protection: Include when personal data will be processed or transferred between parties
3. Tax Gross-up: Include when there may be withholding tax implications requiring gross-up provisions
4. Service Level Agreement: Include when specific performance metrics and KPIs need to be measured
5. Audit Rights: Include when regular auditing of services or costs is required
6. Non-Competition: Include when protection against competition between group companies is needed
7. Cost Allocation: Include when complex cost sharing or allocation methodologies are used
1. Schedule 1 - Services Description: Detailed breakdown of management services to be provided
2. Schedule 2 - Fee Calculation: Detailed methodology for calculating management fees
3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements
4. Schedule 4 - Key Personnel: List of key personnel involved in service delivery
5. Schedule 5 - Transfer Pricing Documentation: Required documentation to support arm's length nature of fees
6. Schedule 6 - Cost Allocation Methodology: Detailed breakdown of cost allocation principles and calculations
7. Appendix A - Form of Invoice: Standard format for invoicing
8. Appendix B - Reporting Requirements: Templates and requirements for service reporting
Authors
Financial Services
Manufacturing
Technology
Real Estate
Retail
Professional Services
Healthcare
Telecommunications
Logistics
Consumer Goods
Energy
Media and Entertainment
Legal
Finance
Tax
Treasury
Compliance
Corporate Secretarial
Accounting
Internal Audit
Operations
Shared Services
Chief Financial Officer
Head of Legal
Tax Director
Group Financial Controller
Company Secretary
Transfer Pricing Manager
Treasury Manager
Financial Planning Manager
Legal Counsel
Compliance Officer
Group Operations Director
Head of Shared Services
Management Accountant
Corporate Finance Manager
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