W I T N E S S E T H: --------------------
COST SHARING AGREEMENT
----------------------
THIS COST SHARING AGREEMENT ("Agreement") is entered into on
the 3rd day of January, 1996, by and between PREFERRED EMPLOYERS
GROUP, INC., a Florida corporation ("Preferred"), and INTERNATIONAL
INSURANCE GROUP, INC., a Florida corporation ("IIG").
W I T N E S S E T H:
--------------------
WHEREAS, Preferred currently provides office space, use of
equipment and other administrative services to IIG at 00000
Xxxxxxxx Xxxxxxxxx, x0xx Xxxxx, Xxxxx, Xxxxxxx; and
WHEREAS, Preferred is the lessee of the aforementioned 00000
Xxxxxxxx Xxxxxxxxx, x0xx Xxxxx, Xxxxx, Xxxxxxx, with the obligation
to pay rent therefor; and
WHEREAS, Preferred owns or leases certain business equipment
at the subject premises; and
WHEREAS, Preferred employs certain staff members to perform
administrative services and pays such personnel therefor; and
WHEREAS, the two companies wish to enter into a cost sharing
agreement setting forth the obligations of IIG to pay Preferred for
IIG's use of equipment and other administrative services to IIG at
00000 Xxxxxxxx Xxxxxxxxx, x0xx Xxxxx, Xxxxx, Xxxxxxx;
NOW, THEREFORE, in consideration of the mutual covenants set
forth below, the parties do hereby agree as follows:
1. Payment for Use of Equipment and other Administrative
Services. IIG agrees to pay Preferred such sums as are set forth
in Exhibit "A" hereto, as amended from time to time by agreement of
the parties.
2. Term of Agreement. This agreement shall commence on
January 1, 1996, and shall be effective for so long as IIG uses any
portion of Preferred's rental space, equipment and other
administrative services at 00000 Xxxxxxxx Xxxxxxxxx, x0xx Xxxxx,
Xxxxx, Xxxxxxx, or such other location upon which such items are
located.
3. Notices. Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and
delivered in person or sent by certified mail, return receipt
requested, as follows:
If to Preferred: Preferred Employers Group, Inc.
00000 Xxxxxxxx Xxxxxxxxx
x0xx Xxxxx
Xxxxx, Xxxxxxx 00000
1
Attn: Xxxxxxx X. Xxxxxxxx
Chief Financial Officer
If to IIG: International Insurance Group, Inc.
00000 Xxxxxxxx Xxxxxxxxx
Xxxxxxxxx Xxxxx
Xxxxx, Xxxxxxx 00000
Attn: Xxxxx Xxxx
Vice President
4. Breach of Agreement. Upon breach of IIG's obligation to
pay such sums as are set forth in Exhibit "A" attached hereto, as
amended from time to time, within ten (10) days from due date,
Preferred shall have a cause of action in the Circuit or County
Courts of Dade County (based on the jurisdictional amount claimed);
further, the prevailing party shall be entitled to a reasonable
attorney's fee and the parties agree to waive a trial by jury.
5. Miscellaneous. This Agreement may be amended but only by
an instrument in writing executed by the party to be burdened
thereby. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction
only, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remaining provisions
hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. This Agreement shall be
governed by, and construed and enforced in accordance with, the
laws of the State of Florida.
IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the date and year first above written.
PREFERRED EMPLOYERS GROUP, INC.
WITNESSES:
______________________________ By:____________________________
Xxxxxxx X. Xxxxxxxx
Chief Financial Officer
______________________________
INTERNATIONAL INSURANCE GROUP,
INC.
2
PREFERRED EMPLOYERS GROUP, INC.
Elements of Cost Sharing Agreement - Rent
%-age time
allacated Charge Charge Charge Charge
Area Sq footage To PEGI PEGI IIG CMM RAC Total
----------------------------------- ------------ ----------- -------- -------- ------ --------- --------
MH office, bath and kitchen 587.73 75% 440.80 146.93 0.00 0.00
MH conference room 360.00 75% 270.00 90.00 0.00 0.00
KS reception area 193.61 50% 96.81 96.81 0.00 0.00
NR office 258.67 50% 129.34 129.34 0.00 0.00
DT office 265.60 75% 199.20 66.40 0.00 0.00
Empty office 187.20 0% 0.00 187.20 0.00 0.00
Color Me Mine office 189.93 0% 0.00 0.00 189.33 0.00
Color Me Mine secretarial area 100.00 0% 0.00 0.00 100.00 0.00
MA office 186.37 75% 139.78 0.00 0.00 46.59
------------ ----------- ----------- ----------- ----------- -----------
Office space allocated 2,328.51 55% 1,275.92 716.67 289.33 46.59
PEGI direct 9,258.90 100% 9,258.90 0.00 0.00 0.00
------------ ----------- ----------- ----------- ----------- -----------
Total direct 11,587.41 91% 10,534.82 716.67 289.33 46.59
------------ ----------- ----------- ----------- ----------- -----------
Common Areas:
Restrooms 337.09 91% 306.47 20.55 8.42 1.38
Reception/waiting area 679.50 91% 617.77 42.03 16.97 2.73
------------ ----------- ----------- ----------- ----------- -----------
Total common areas 1,015.59 91% 924.24 62.88 25.38 4.09
------------ ----------- ----------- ----------- ----------- -----------
Total square footage 12,604.00 91% 11,459.06 779.55 314.71 50.68 12,604.00
============ =========== =========== =========== =========== ===========
Effective date: 01-Jan-96 01-Jan-96 22-Jul-96 01-Jan-96
Total =========== =========== =========== ===========
Rental payments: -----------
Jan. 1996 $6,893.39 $6,267.20 $598.47 $0.00 $27.72
Feb. 1996 $6,893.39 $6,267.20 $598.47 $0.00 $27.72
Mar. 1996 $6,893.39 $6,267.20 $598.47 $0.00 $27.72
Apr. 1996 $13,786.78 $12,534.40 $1,196.95 $0.00 $55.44
May. 1996 $13,786.78 $12,534.40 $1,196.95 $0.00 $55.44
Jun. 1996 $13,786.78 $12,534.40 $1,196.95 $0.00 $55.44
Jul. 1996 $13,786.78 $12,534.40 $1,196.95 $0.00 $55.44
Aug. 1996 $13,786.78 $12,534.40 $852.70 $344.25 $55.44
Sep. 1996 $13,786.78 $12,534.40 $852.70 $344.25 $55.44
Oct. 1996 $0.00 $0.00 $0.00 $0.00 $0.00
Nov. 1996 $0.00 $0.00 $0.00 $0.00 $0.00
Dec. 1996 $0.00 $0.00 $0.00 $0.00 $0.00
----------- ----------- ----------- ----------- -----------
Total $103,400.85 $94,007.96 $8,288.62 $688.49 $415.77
===========
Paid - to - date $103,400.85 $0.00 $0.00 $0.00
----------- ----------- ----------- -----------
Rental balance due ($9,392.89) $8,288.62 $688.49 $415.70 $9,392.89
===========
Equipment balance due $9,716.36 $0.00 $322.35 $10,048.72
----------- ----------- ----------- ----------
Total balance due $18,004.98 $688.49 $748.12 $19,441.60
=========== =========== =========== ==========
PREFERRED EMPLOYERS GROUP, INC.
Elements of Cost Sharing Agreement-Equipmentt
Telephone Computer Furniture Total
Area Count and Printer Cost Artwork Furn/Art
---------------------------------------- --------- ----------- --------- -------- ---------
MH office, bath and kitchen 1 1 $35,888 $1,505 $37,393
MH conference room 0 0 $30,476 $251 $30,729
KS reception area 2 1 $13,580 $1,254 $14,834
NR office 2 1 $0 $753 $753
DT office 1 1 $2,000 $502 $2,502
Empty office 1 0 $2,000 $502 $2,502
Color Me Mine office 1 0 $4,080 $0 $4,080
Color Me Mine secretarial area 1 1 $500 $0 $500
MA office 1 1 $2,000 $0 $2,000
IIG file room 1 0 $0 $0 $0
PEGI 0 0 $0 $4,014 $4,014
--------- ---------- --------- ------- --------
Total direct 11 6 $90,526 $8,781 $99,307
--------- ---------- --------- ------- --------
Common Areas:
Restrooms 0 0 $0 $0 $0
Reception/waiting area 2 0 $16,207 $2,007 $18,214
--------- ---------- --------- ------- --------
Total common areas 2 0 $16,207 $2,007 $18,214
--------- ---------- --------- ------- --------
Total allocated 13 6 $106,733 $10,788 $117,521
========= ========== ========= ======= ========
Total system count 53
=========
Total system cost $70,973
=========
Average cost per system $1,339 $3,500
========= ==========
PREFERRED EMPLOYERS GROUP, INC.
Elements of Cost Sharing Agreement - Equipmentt
%-age
Telephone Computer Total Total Allacated Charge Charge Charge Charge
Area Cost and Printer Furn/Art Cost To PEGI PEGI IIG CMM RAC
---- ---- ----------- --------- ---- ------- ------ ------ ----- ------
MH office, bath and kitchen $1,339 $3,500 $37,393 $42,232 75% $31,674 $10,558
MH conference room $0 $0 $30,729 $30,729 75% $23,047 $7,882
KS reception area $2,878 $3,500 $14,834 $21,013 50% $10,508 $10,506
NR office $2,678 $3,500 $753 $6,931 50% $3,465 $3,485
DT office $1,339 $3,500 $2,502 $7,341 75% $5,506 $1,835
Empty office $1,339 $0 $2,502 $3,841 0% $0 $3,841
Color Me Mine office $1,339 $0 $4,080 $5,419 0% $0 $5,419
Color Me Mine secretarial area $1,339 $3,500 $500 $5,339 0% $0 $5,339
MA office $1,339 $3,500 $2,000 $6,839 75% $5,129 $1,710
IIG file room $1,339 $0 $0 $1,339 0% $0 $1,339
------- ------- -------- -------- -- ------- ------- ------- ------
Total $14,730 $21,000 $95,293 $131,023 61% $793 $39,227 $10,758 $1,710
------- ------- -------- -------- -- ------- ------- ------- ------
Common Areas:
Restrooms $0 $0 $0 $0 91% $0 $0 $0 $0
Reception/waiting area $2,678 $0 $18,214 $20,892 91% $18,994 $1,440 $395 $63
------- ------- -------- -------- -- ------- ------- ------- ------
Total common areas $2,678 $0 $18,214 $20,892 91% $18,994 $1,440 $395 $63
------- ------- -------- -------- -- ------- ------- ------- ------
Total allocated $17,408 $21,000 $113,507 $151,915 65% $98,322 $40,667 $11,153 $1,773
======= ======= ======== ======== == ======= ======= ======= ======
Assumed lease term (mos) 48 48 48
======= ======= ======
Monthly equipment payment:
Jan. 1996 $1,080 $0 $37
Feb. 1996 $1,080 $0 $37
Mar. 1996 $1,080 $0 $37
Apr. 1996 $1,080 $0 $37
May. 1996 $1,080 $0 $37
Jun. 1996 $1,080 $0 $37
Jul. 1996 $1,080 $0 $37
Aug. 1996 $1,080 $0 $37
Sep. 1996 $1,080 $0 $37
Oct. 1996 $0 $0 $0
Nov. 1996 $0 $0 $0
Dec. 1996 $0 $0 $0
------- ------- ------
Total $9,716 $0 $332
Paid - to - date $0 $0 $0
------- ------- ------
Balance due $9,716 $0 $332
======= ======= ======
