Common use of INDIRECT COMPENSATION Clause in Contracts

INDIRECT COMPENSATION. A descrip- tion of all indirect compensation (as defined in paragraph (c)(1)(viii)(B)(2) of this section) that the covered service provider, an affiliate, or a subcon- tractor reasonably expects to receive in connection with the services de- scribed pursuant to paragraph (c)(1)(iv)(A) of this section; including identification of the services for which the indirect compensation will be re- ceived, identification of the payer of the indirect compensation, and a de- scription of the arrangement between the payer and the covered service pro- vider, an affiliate, or a subcontractor, as applicable, pursuant to which such indirect compensation is paid. (3) Compensation paid among related parties. A description of any compensa- tion that will be paid among the cov- ered service provider, an affiliate, or a subcontractor, in connection with the services described pursuant to para- graph (c)(1)(iv)(A) of this section if it is set on a transaction basis (e.g., com- missions, soft dollars, finder’s fees or other similar incentive compensation based on business placed or retained) or is charged directly against the covered plan’s investment and reflected in the net value of the investment (e.g., Rule 12b–1 fees); including identification of the services for which such compensa- tion will be paid and identification of the payers and recipients of such com- pensation (including the status of a payer or recipient as an affiliate or a subcontractor). Compensation must be disclosed pursuant to this paragraph (c)(1)(iv)(C)(3) regardless of whether such compensation also is disclosed pursuant to paragraph (c)(1)(iv)(C)(1) or (2), (c)(1)(iv)(E), or (c)(1)(iv)(F) of this section. This paragraph (c)(1)(iv)(C)(3) shall not apply to compensation re- ceived by an employee from his or her employer on account of work per- formed by the employee.