Common use of Costs and Funding Clause in Contracts

Costs and Funding. 6.1 BT plc shall fund (or procure the funding of) all costs and expenses (including Taxation or any form of pension contributions) that are reasonably and properly incurred by Openreach Limited in accordance with BT policies and the AOP and/or MTP pursuant to the Governance Protocol in connection with the proper performance of the Services or other compliance by Openreach Limited with its obligations under this Agreement (the Openreach Costs). 6.2 The means by which Openreach Costs are funded in accordance with clause 6.1 shall be at BT plc’s sole discretion and shall include, without limitation: (a) BT plc directly discharging or procuring the direct discharge of any such Openreach Costs; (b) BT plc putting Openreach Limited in funds in order to enable it to pay such Openreach Costs; or (c) BT plc being recharged or reimbursing any such Openreach Costs which have been directly discharged by Openreach Limited, in each case including where appropriate by way of BT plc making a Balancing Payment to Openreach Limited and provided always that any Taxation incurred by Openreach Limited as a result of any undue delay in BT plc complying with its obligations under clause 6.1 shall be treated as Openreach Costs and subject to the same funding obligations. 6.3 Save to the extent that any Openreach Costs which have been directly discharged by Openreach Limited are recharged to or reimbursed by BT plc, Openreach Limited shall not charge BT plc any fee or be entitled to any form of remuneration in connection with performing its obligations under this Agreement, including any Services provided as agent for the account of BT plc. 6.4 All Openreach Costs shall be fully accounted for in the Openreach Division. 6.5 Openreach Limited shall not undertake, or agree to undertake, any of the following actions without authorisation from BT plc: (a) open or control any bank account; (b) incur any liability in respect of any borrowing, credit, finance or other indebtedness in the nature of borrowing (other than the receipt of trade credit in the ordinary course of business); (c) dispose of any interest in any part of the Openreach Division (other than the disposal of any asset in the ordinary course of business in compliance with the AOP or MTP); or (d) create or grant any option, right to acquire, mortgage, charge, pledge or other form of security or encumbrance on, over or affecting any asset or undertaking of the Openreach Division.

Costs and Funding. 6.1 BT plc shall fund (or procure the funding of) all costs and expenses (including Taxation or any form of pension contributions) that are reasonably and properly incurred by Openreach Limited in accordance with BT policies and the AOP and/or MTP pursuant to the Governance Protocol in connection with the proper performance of the Services or other compliance by Openreach Limited with its obligations under this Agreement (the Openreach Costs). 6.2 The means by which Openreach Costs are funded in accordance with clause clause 6.1 shall be at BT plc’s sole discretion and shall include, without limitation: (a) BT plc directly discharging or procuring the direct discharge of any such Openreach Costs; (b) BT plc putting Openreach Limited in funds in order to enable it to pay such Openreach Costs; or (c) BT plc being recharged or reimbursing any such Openreach Costs which have been directly discharged by Openreach Limited, in each case including where appropriate by way of BT plc making a Balancing Payment to Openreach Limited and provided always that any Taxation incurred by Openreach Limited as a result of any undue delay in BT plc complying with its obligations under clause 6.1 shall be treated as Openreach Costs and subject to the same funding obligations. 6.3 Save to the extent that any Openreach Costs which have been directly discharged by Openreach Limited are recharged to or reimbursed by BT plc, Openreach Limited shall not charge BT plc any fee or be entitled to any form of remuneration in connection with performing its obligations under this Agreement, including any Services provided as agent for the account of BT plc. 6.4 All Openreach Costs shall be fully accounted for in the Openreach Division. 6.5 Openreach Limited shall not undertake, or agree to undertake, any of the following actions without authorisation from BT plc: (a) open or control any bank account; (b) incur any liability in respect of any borrowing, credit, finance or other indebtedness in the nature of borrowing (other than the receipt of trade credit in the ordinary course of business); (c) dispose of any interest in any part of the Openreach Division (other than the disposal of any asset in the ordinary course of business in compliance with the AOP or MTP); or (d) create or grant any option, right to acquire, mortgage, charge, pledge or other form of security or encumbrance on, over or affecting any asset or undertaking of the Openreach Division.