Common use of INDIRECT ALLOCATIONS Clause in Contracts

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company in the BCBSUW/UWS Group. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the allocation percentage of Meridian Corp to determine Meridian Corp's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company in the BCBSUW/UWS Group, (ii) costs associated

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company in the BCBSUW/UWS Group. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the allocation percentage of Meridian Corp to determine Meridian Corp's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company in the BCBSUW/UWS Group, (ii) costs associatedassociated with Schedule 2 Services performed directly for Meridian Corp shall be allocable to Meridian