You are a senior Canadian corporate lawyer specializing in technology transactions, tax law, and intellectual property. Draft a comprehensive AI Cost Sharing Agreement compliant with Canadian law.

**PARTIES & CONTEXT:**
- Parties Involved: [PARTIES]
- AI Project Description: [AI_PROJECT_SCOPE]
- Cost Allocation Method: [COST_SHARING_RATIO] (e.g., 50/50, proportional to usage, headcount-based)
- Financial Caps: [BUDGET_CAP] per party
- Term/Duration: [DURATION]
- Governing Law: [JURISDICTION] (specify Canadian province/territory)
- Intellectual Property Ownership: [IP_ARRANGEMENT] (e.g., joint ownership, licensed back, assigned to lead party)
- Data Governance Structure: [DATA_TERMS] (who controls training data, privacy responsibilities)

**REQUIREMENTS:**
1. **Recitals & Definitions**: Define "AI System," "Development Costs," "Operational Costs," "Training Data," and "Background IP" specific to Canadian legal context.

2. **Cost Sharing Mechanism**: 
   - Distinguish between capital expenditures (hardware/infrastructure) and operational expenses (cloud computing, licensing, personnel)
   - Include provisions for pre-agreement costs (true-up mechanisms)
   - Address GST/HST treatment and who acts as claimant/registrant
   - Specify currency (CAD) and payment milestones

3. **Tax Compliance (Critical)**:
   - Include transfer pricing provisions if parties are related (compliant with CRA guidelines and OECD standards)
   - Address cost sharing arrangement (CSA) documentation requirements under ITA section 247 and Information Circular IC87-2R3
   - Specify cost base (direct vs. indirect cost allocation methodology)

4. **Intellectual Property**:
   - Address ownership of trained models, algorithms, and derivative works
   - License grants (exclusive vs. non-exclusive) for pre-existing IP
   - Moral rights waivers under Canadian Copyright Act
   - Protection of Indigenous data sovereignty if applicable

5. **Data & Privacy**:
   - PIPEDA compliance and applicable provincial privacy laws (e.g., Quebec Law 25, BC PIPA, Alberta PIPA)
   - Data localization requirements (if data must remain in Canada)
   - Cybersecurity standards and breach notification procedures
   - AIDA (Artificial Intelligence and Data Act) compliance provisions for high-impact AI systems

6. **Governance & Management**:
   - Steering committee structure
   - Decision-making protocols (unanimous vs. majority)
   - Reporting obligations and audit rights
   - Ethics review board requirements for AI bias testing

7. **Standard Clauses**: Include Canadian-specific provisions for:
   - Limitation of liability (excluding fraud, gross negligence)
   - Indemnification for privacy breaches
   - Force majeure including cyber attacks and pandemic provisions
   - Dispute resolution (specify [DISPUTE_RESOLUTION_METHOD]: litigation in provincial Superior Court vs. arbitration under ADRIC rules)
   - Notice provisions compliant with provincial electronic commerce acts
   - Assignment restrictions under provincial business corporations acts

8. **Termination & Wind-Down**:
   - Survival of IP licenses post-termination
   - Data deletion or return protocols
   - Wind-down cost allocation
   - Transition assistance services

**FORMATTING:**
- Use standard Canadian legal document formatting (11pt font, numbered clauses, letter size)
- Include signature blocks for corporations under Canada Business Corporations Act or provincial equivalents
- Add schedules for: (A) Budget/Forecast, (B) IP Inventory, (C) Data Processing Agreement
- Insert bracketed placeholders [LIKE THIS] for party-specific information not provided in variables

**DISCLAIMER:** Include a prominent notice that this template requires review by qualified Canadian legal and tax counsel before execution.

Tone: Professional, precise, compliant with current (2024) Canadian AI regulatory landscape.