Foreign Cost Sharing Agreement

Under the cost-sharing agreement, the parent company`s subcontractor must pay $40 million, given that the patent subcontractor`s share of the benefits is 40% = 2/5 of the patent company`s total benefits and the parent company`s total cost for patent development was $100 million. If no cost-sharing agreement had been entered into, the parent company`s sub-company would have had to pay $200 million in present value, which is the current market value ($20 million/0.10) of the future revenues of the patent subcontract. Finally, it is possible to identify the cost contribution contract in which a group shares the costs and risks associated with the production or use of assets, services or rights. Generally speaking, the allocation of these expenses relates to research and development, with intangible rights or assets constituting the equivalent. (C) a description of the method used to determine the share of each controlled participant in the intangible development costs, including the projections used to estimate the benefits, and explain why that method was chosen; (ii) contracts of sale and sale (there is no transfer of assets or objects with the payment of a price); and (2) provide a methodology for calculating each controlled participant`s share of intangible development costs, based on factors that can reasonably be expected to reflect that participant`s share of the expected benefits; (A) General. The reliability of an estimate of expected benefits also depends on the reliability of the projections used in the estimate. The projections necessary for this purpose include, in general, a determination of the period between the start of research and development and the preservation of benefits, a projection of the period over which the benefits will be obtained and a projection of the expected benefits for each year in which the intangible benefits are expected to be generated. A projection of the relevant base to measure the expected benefits may require a projection of the underlying factors. For example, a projection of operating income may require a projection of revenue, revenue costs, operating costs, and other factors affecting operating income. If there are expected to be significant differences between the controlled participants at the time of their acquisition and, therefore, it is expected that the benefit shares will vary significantly over the years in which the benefits will be obtained, it may be necessary to use the current discount value of the projected benefits to reliably determine each controlled participant`s share of those benefits. If advantage shares are not expected to change significantly over time, current annual benefit shares can provide a reliable forecast of expected benefit actions. . .

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