Does anybody understand this sentence?



The part in boldface seems kind of odd to me, as if it didn't belong to that sentence. Does it? If yes, what does it mean? Can the payment of the costs and expenses possibly be subject to negotiation?

I think this is legal terminology to cover all eventualities. What it means to me (lay person, not lawyer) is that all costs, whether they are the costs of the negotiation (and preparation/execution) of the agreement, or just incidental costs, are paid by the party which incurred them. Some punctuation might be helpful here, but lawyers use their own type of language. In regular English, I would suggest:

Each party shall pay its own costs and expenses (whether direct or incidental) of the negotiation, preparation and execution of this Agreement.

So, one party to the agreement can't claim any costs whatsoever from the other party, for making the agreement itself.

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I would live all my life in nonchalance and insouciance, Were it not for making a living, which is rather a nouciance. Ogden Nash