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Cost Sharing Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Cost Sharing Agreement

"I need a Cost Sharing Agreement for three technology companies in Hong Kong sharing research and development facilities, with specific focus on intellectual property rights and allocation of employee costs, to be effective from March 2025."

Document background
This Cost Sharing Agreement template is designed for use under Hong Kong law when two or more entities wish to formalize arrangements for sharing costs related to specific activities, services, or resources. It is particularly valuable for corporate groups, joint ventures, and strategic partnerships seeking to optimize resource utilization and achieve cost efficiencies. The document addresses key aspects such as cost identification, allocation methodologies, payment procedures, and governance mechanisms, while ensuring compliance with Hong Kong's regulatory requirements, including relevant tax, company law, and competition law considerations. This agreement is commonly used in shared service arrangements, group procurement initiatives, research and development collaborations, and other scenarios where multiple parties contribute to common costs.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including registered addresses and company details

2. Background: Context of the arrangement, relationship between parties, and purpose of the cost sharing agreement

3. Definitions: Definitions of key terms used throughout the agreement, including types of costs, calculation periods, and specific terminology

4. Scope of Cost Sharing: Details of which costs are to be shared and the general principles of the arrangement

5. Cost Allocation Method: The agreed methodology for calculating and allocating costs between parties

6. Payment Terms: Timeline and method for payments, including invoicing procedures and payment deadlines

7. Record Keeping and Audit Rights: Requirements for maintaining cost records and rights of parties to audit shared costs

8. Confidentiality: Obligations regarding confidential information shared during the cost sharing arrangement

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Dispute Resolution: Process for resolving disagreements about cost allocation or other aspects of the agreement

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

Optional Sections

1. Service Levels: Include when the cost sharing relates to specific service standards that must be maintained

2. Intellectual Property Rights: Include when shared costs involve development or use of intellectual property

3. Employee Sharing: Include when costs involve shared employees or contractors

4. Insurance Requirements: Include when parties need to maintain specific insurance coverage for shared activities

5. Force Majeure: Include when parties want protection from unforeseen events affecting cost sharing obligations

6. Tax Provisions: Include when specific tax treatment or allocation needs to be addressed

7. Change Control: Include when formal procedures for changing cost allocation methods are needed

8. Third Party Rights: Include when third parties might have rights under the agreement

Suggested Schedules

1. Schedule of Shared Costs: Detailed list of all costs to be shared under the agreement

2. Cost Allocation Methodology: Detailed formulas and examples of how costs will be calculated and allocated

3. Payment Procedures: Detailed procedures for invoicing, payment timing, and payment methods

4. Service Specifications: Details of services or activities covered by the cost sharing arrangement

5. Key Personnel: List of key contacts responsible for cost sharing administration

6. Reporting Templates: Standard formats for cost reporting and reconciliation

7. Audit Procedures: Detailed procedures for conducting cost audits

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses


































Relevant Industries

Financial Services

Technology

Manufacturing

Professional Services

Real Estate

Healthcare

Retail

Telecommunications

Energy

Infrastructure

Logistics

Shared Services

Research and Development

Education

Entertainment

Relevant Teams

Legal

Finance

Operations

Procurement

Compliance

Risk Management

Treasury

Commercial

Business Development

Shared Services

Cost Accounting

Project Management

Corporate Development

Tax

Internal Audit

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Commercial Director

Operations Manager

Procurement Manager

Financial Controller

Compliance Officer

Project Manager

Business Development Manager

Group Financial Controller

Head of Shared Services

Cost Accounting Manager

Treasury Manager

Risk Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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