As you mentioned the entire contract will be issued separately per Company , meaning this will be the service that YAS will render for YTSP.
I hope you can clarify my #3 concern in charges allocation for the 108% of Total operating cost of YAS - Before we are being charged according to direct operating expenses incurred for service rendered directly for YTSP only, it is easier to verify and estimate in terms of budget preparation. After YAS visited YTSP, they will prepare supporting receipts for the 108% charges. With this, we have no idea how much this could be. It will be hard also to quantify the cost and benefits of the charges.
1. In consideration of the above Services provided, YRC shall pay a service fee to YAS at the rate of 108% of YAS’s “total operating costs” incurred during the term hereof (“Service Fee”). The “total operating costs” shall mean the total amount of all business costs allowed to be reckoned up according to the generally accepted accounting principles of Thailand, i.e., including not only direct costs, but also indirect costs, interest, non-operating costs, extraordinary losses and others incurred from the Service provided, but excluding any taxes imposed on YAS.
The ultimate Service Fee chargeable merely to YRC could be calculated by an allocation formula in accordance with YRC’s estimated sales budget as shown below.
Service Fee chargeable to YRC = [total operating costs*(YRC’s estimated sales budget / the totality of estimated sales budget of all of YAS’s beneficial affiliates)]
Assuming that per YRC estimated budget for YTSP is higher than the rest, however, the service rendered directly for YTSP is lower compared the rest of the beneficial affiliates. This means that YTSP will still have the biggest allocation of cost.
Hope you can clarify this matter.
Vien