Common use of Compensation of Service Company Clause in Contracts

Compensation of Service Company. As compensation for such services rendered to them by Service Company, Client Companies hereby agree to pay to Service Company the cost of such services, computed in accordance with applicable rules and regulations, including any applicable rules and regulations of the FERC, and appropriate accounting standards, i.e., the Uniform System of Accounts for Service Companies (18 C.F.R. Part 367). Service Company costs will be classified into either a direct, direct allocated or indirect category. Direct costs are defined as costs that can be identified as being applicable to services performed for a single Client Company or group of Client Companies. Costs applicable to a single Client Company will be directly charged to that Client Company. Costs applicable to two or more Client Companies will be distributed based on allocation factors listed in Appendix A and defined in Appendix B. These factors will be assigned to a Service Request project (as defined in Section 4 below) based on the nature of the activity being performed by Service Company. Service Request processing captures all of the costs assigned to Service Request projects and distributes the costs based on the allocation factor results. Indirect Costs shall include those costs of a general overhead basis which cannot be identified to a single Client Company or group of Client Companies. These indirect costs are defined as either functional or corporate in nature. Functional indirect costs, such as office supplies and secretarial labor, will be accumulated by functional area and distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by a particular functional area as compared to all such costs charged to all Client Companies and Other Client Companies. Indirect costs identified as corporate in nature, such as the Service Company’s banking activities and rent, will be distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by Service Company as compared to all such costs charged to all Client Companies and Other Client Companies. Overhead costs associated with labor, such as pensions, benefits and payroll taxes will be charged to the Client Company based on Service Company labor costs charged to the Client Company. Compensation to be paid by Client Companies shall include direct charges, indirect charges and Client Companies’ pro rata share of Service Company’s direct allocated costs. All Service Company direct, allocated direct and indirect costs charged to Client Companies and Other Client Companies shall reflect the Service Company’s actual costs. Moreover, notwithstanding anything to the contrary herein, Service Company shall allocate its direct, allocated direct and indirect costs to all companies it provides services to in a manner that does not cause any company receiving services from Service Company, whether under this Agreement or any other agreement Service Company may enter into in the future with Other Client Companies, to subsidize the cost of any other company receiving services from Service Company.

Compensation of Service Company. As compensation for such services rendered to them by Service Company, Client Companies hereby agree to pay to Service Company the cost of such services, computed in accordance with applicable rules and regulations, including any applicable rules and regulations of the FERC, and appropriate accounting standards, i.e., the Uniform System of Accounts for Service Companies (18 C.F.R. Part 367). Compensation to be paid by Client Companies shall include direct charges and Client Companies’ fairly allocated pro rata share of certain of Service Company’s costs, using the allocated direct cost factors determined as set out on Schedule 2, attached hereto and made a part hereof. Service Company costs will be classified into either a direct, direct allocated or indirect category. Direct costs are defined as costs that can be identified as being applicable to services performed for a single Client Company or group of Client Companies. Costs applicable to a single Client Company will be directly charged to that Client Companycompany. Costs applicable to two or more Client Companies will be distributed based on direct allocation factors listed in Appendix A and defined in Appendix B. Schedule 1. These factors will be assigned to a Service Request project (as defined in Section 4 below) based on the nature of the activity being performed by Service Company. Service Request processing captures all of the costs assigned to Service Request projects and distributes the costs based on the allocation factor results. Indirect Costs shall include those costs of a general overhead basis which cannot be identified to a single Client Company or group of Client Companies. These indirect costs are defined as either functional or corporate in nature. Functional indirect costs, such as office supplies and secretarial labor, will be accumulated by functional area function and distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by a particular functional area function as compared to all such costs charged to all Client Companies and Other Client Companies. Indirect costs identified as corporate in nature, such as the Service Company’s banking activities property taxes and rent, insurance costs will be distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by Service Company as compared to all such costs charged to all Client Companies and Other Client Companies. Overhead costs associated with labor, such as pensionspensions and benefits, benefits and payroll taxes and injuries and damage expense will be charged to the Client Company based on Service Company labor costs charged to the Client Company. Compensation to be paid by Client Companies shall include direct charges, indirect charges and Client Companies’ pro rata share of Service Company’s direct allocated costs. All Service Company directdirect costs, allocated direct indirect costs, and indirect overhead costs charged to Client Companies and Other Client Companies shall reflect the Service Company’s actual costs. Moreover, notwithstanding anything to the contrary herein, Service Company shall allocate its direct, allocated direct and indirect costs to all companies it provides services to in a manner that does not cause any company receiving services from Service Company, whether under this Agreement or any other agreement Service Company may enter into in the future with Other Client Companies, to subsidize the cost of any other company receiving services from Service Company.

Compensation of Service Company. As compensation for such services rendered to them it by Service Company, Client Companies Company hereby agree agrees to pay to Service Company the cost of such services, computed in accordance with applicable rules and regulations, including any applicable rules and regulations of the FERC, and appropriate accounting standards, i.e., the Uniform System of Accounts for Service Companies (18 C.F.R. Part 367). Compensation to be paid by Client Company shall include direct charges and Client Company's fairly allocated pro rata share of certain of Service Company's costs, using the allocated direct cost factors determined as set out on Schedule 2, attached hereto and made a part hereof. Service Company costs will be classified into either a direct, direct allocated or indirect category. Direct costs are defined as costs that can be identified as being applicable to services performed for a single Client Company or group of Client Companies. Costs applicable to a single Client Company will be directly charged to that Client Companycompany. Costs applicable to two or more Client Companies will be distributed based on direct allocation factors listed in Appendix A and defined in Appendix B. Schedule 1. These factors will be assigned to a Service Request project (as defined in Section 4 below) based on the nature of the activity being performed by Service Company. Service Request processing captures all of the costs assigned to Service Request projects and distributes the costs based on the allocation factor results. Indirect Costs shall include those costs of a general overhead basis which cannot be identified to a single Client Company or group of Client Companies. These indirect costs are defined as either functional or corporate in nature. Functional indirect costs, such as office supplies and secretarial labor, will be accumulated by functional area function and distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by a particular functional area function as compared to all such costs charged to all Client Companies and Other Client Companies. Indirect costs identified as corporate in nature, such as the Service Company’s banking activities property taxes and rent, insurance costs will be distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by Service Company as compared to all such costs charged to all Client Companies and Other Client Companies. Overhead costs associated with labor, such as pensionspensions and benefits, benefits and payroll taxes and injuries and damage expense will be charged to the Client Company based on Service Company labor costs charged to the Client Company. Compensation to be paid by Client Companies shall include direct charges, indirect charges and Client Companies’ pro rata share of Service Company’s direct allocated costs. All Service Company directdirect costs, allocated direct indirect costs, and indirect overhead costs charged to Client Companies and Other Client Companies shall reflect the Service Company’s actual costs. MoreoverSchedule 1 may be revised from time to time. Services Company will assist Client Company to obtain all necessary regulatory approvals. To the extent Services Company receives necessary regulatory approvals for the Illinois Commerce Commission as it relates to allocation of costs by Services Company to any Illinois public utilities affiliated with the Services Company, notwithstanding anything to the contrary herein, Service Services Company shall allocate its direct, allocated direct notify and indirect apply revised allocation factors to costs to all companies it provides services Client Companies upon final approval. The purpose of the adoption of said schedules is to in a manner that does not cause any company receiving services from Service Company, whether under this Agreement or any other agreement Service Company may enter into in the future with Other Client Companies, to subsidize the cost conformity of any other company receiving services from Service Companyapplication of approved allocation factors.

Compensation of Service Company. As compensation for such services rendered to them by Service Company, Client Companies hereby agree to pay to Service Company the cost of such services, computed in accordance with applicable rules and regulations, including any applicable rules and regulations of the FERC, and appropriate accounting standards, i.e., the Uniform System of Accounts for Service Companies (18 C.F.R. Part 367). Compensation to be paid by Client Companies shall include direct charges and Client Companies’ fairly allocated pro rata share of certain of Service Company’s costs, determined as set out on Schedule 2, attached hereto and made a part hereof. Service Company costs will be classified into either a direct, direct allocated or indirect category. Direct costs are defined as costs that can be identified as being applicable to services performed for a single Client Company or group of Client Companies. Costs applicable to a single Client Company will be directly charged to that Client Companycompany. Costs applicable to two or more Client Companies will be distributed based on direct allocation factors listed found in Appendix A and defined in Appendix B. Schedule 1. These factors will be assigned to a Service Request project (as defined in Section 4 below) based on the nature of the activity being performed by Service Company. Service Request processing captures all of the costs assigned to Service Request projects and distributes the costs based on the allocation factor results. Indirect Costs shall include those costs of a general overhead basis which cannot be identified to a single Client Company or group of Client Companies. These indirect costs are defined as either functional or corporate in nature. Functional indirect costs, such as office supplies and secretarial labor, will be accumulated by functional area function and distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by a particular functional area function as compared to all such costs charged to all Client Companies and Other Client Companies. Indirect costs identified as corporate in nature, such as the Service Company’s banking activities property taxes and rent, insurance costs will be distributed to Client Companies based on the ratio of total direct and direct allocated costs charged to the Client Company by Service Company as compared to all such costs charged to all Client Companies and Other Client Companies. Overhead costs associated with labor, such as pensionspensions and benefits, benefits and payroll taxes and injuries and damage expense will be charged to the Client Company based on Service Company labor costs charged to the Client Company. Compensation to be paid by Client Companies shall include direct charges, indirect charges and Client Companies’ pro rata share of Service Company’s direct allocated costs. All Service Company directdirect costs, allocated direct indirect costs, and indirect overhead costs charged to Client Companies and Other Client Companies shall reflect the Service Company’s actual costs. Moreover, notwithstanding anything to the contrary herein, Service Company shall allocate its direct, allocated direct and indirect costs to all companies it provides services to in a manner that does not cause any company receiving services from Service Company, whether under this Agreement or any other agreement Service Company may enter into in the future with Other Client Companies, to subsidize the cost of any other company receiving services from Service Company.