Expansion Costs Clause Samples
The Expansion Costs clause defines how expenses related to the growth or extension of a project, service, or facility are handled between the parties. Typically, it outlines which party is responsible for paying for additional resources, infrastructure, or services required when the scope of the original agreement is increased. For example, if a tenant requests more office space or a client needs extra software licenses, this clause would specify who bears those costs and how they are calculated. Its core function is to allocate financial responsibility for expansion, thereby preventing disputes and ensuring both parties understand their obligations if the need for growth arises.
Expansion Costs. Costs for expanding the SWD System as a result of a Water Disposal Deficiency (as defined herein) shall be allocated pursuant to Section 5 of this Agreement.
Expansion Costs expenditures for Expansion Projects funded exclusively out of Capital Contributions made by the Members.
Expansion Costs. Section 4.02(a).
Expansion Costs. The third sentence of Section 2.1.3 of the Agreement is hereby amended and modified as follows (new language underlined, deleted language shown in strikethrough text): “At Customer’s election, Customer shall either (i) prepay Service Provider or (ii) be invoiced directly by such third parties (subject Customer’s satisfaction in its sole discretion of its KYC, diligence or other vendor requirements), in each case for the actual costs of labor and materials incurred to third parties (other than Service Provider or its affiliates) to complete the Expansion, up to a cumulative cost of [***] (such amount, the “Expansion Costs”), with such Expansion Costs to be paid to Service Provider or such third parties by Customer pursuant to the following payment schedule:
(a) Expansion Costs in an amount up to [***], to be paid within two (2) Business Days of Customer’s receipt of third-party invoices for work on the Expansion relating to such Expansion Costs (the “Initial Expansion Cost Payments”); and
(b) Following the Initial Expansion Cost Payments, Expansion Costs in an amount up to
Expansion Costs. The California Parties’ commitment, as set forth more fully 27 in Article 6, Paragraph 6.4 of the Joint Settlement Agreement, not to object to 28 the recovery in EPNG’s rates in its next rate case of the costs reasonably 1 incurred by EPNG in connection with the increase of physical California 2 delivery capacity from 3290 MMcf/day to 3840 MMcf/day.
Expansion Costs. If Landlord constructs the Expansion Space, for purposes of determining the Base Rent for the Expansion Space during the Initial Term following the Expansion Commencement Date, "EXPANSION COSTS" shall be the aggregate of all payment obligations of those contracts for so-called "hard costs" and "soft costs," including, but not necessarily limited to, all actual planning, design and construction costs, direct project overhead, general conditions of the Expansion Space contractor, insurance, reasonable construction loan interest costs, architect's and engineer's fees, reasonable legal fees, permit fees (including impact fees imposed by any governmental authority) and other municipality costs, and the amount of the return on Landlord's equity paid prior to the Expansion Completion Date at the Expansion Equity Return Rate which are incurred by or on behalf of Landlord for the construction of the Expansion Space pursuant to the Expansion Plans, but expressly excluding any profit fee payable to the Expansion Space contractor retained by Landlord for the construction for the Expansion Space. Landlord agrees to conduct the planning, design and construction of the Expansion Space on an "open-book" in the same manner as provided in the Work Letter in respect to the Initial Improvements so that Tenant shall have the opportunity to review and verify all of the component elements that comprise the Expansion Costs.
Expansion Costs. For purposes of determining the Base Rent for the Expansion Space for the fifteen (15) year period of the Term occurring on and after the Expansion Commencement Date, "Expansion Costs" shall be the aggregate of all payment obligations of those contracts for so-called "hard costs" and "soft costs," including, but not necessarily limited to, all actual construction costs, direct project overhead, insurance, reasonable construction interest costs, architect's and engineer's fees, permit fees (including impact fees imposed by any governmental authority) and other municipality costs, which are incurred by or on behalf of Landlord for the construction of the Expansion Space pursuant to the Expansion Plans. Landlord agrees to conduct its construction of the Expansion Space on an "open-book" basis so that Tenant shall have the opportunity to review and verify all of the component elements that comprise the Expansion Costs.
Expansion Costs. Section 4.03(a). Expansion Distributions – Section 5.02(b)(ii).
Expansion Costs. Each party initiating an expansion (a "Triggering Party") pursuant to the paragraph above shall be solely responsible for all costs and expenses associated with any Expansion Project initiated by such party (the "Triggering Party Expansion Costs"), except the other party (the "Piggy Back Party") desiring to add capacity to such Expansion Project shall be responsible for the additional costs of such Expansion Project (the "Piggy-Back Expansion Costs") as set forth below.
Expansion Costs. The third sentence of Section 2.1.6 of the Agreement is hereby amended and modified as follows (new language underlined, deleted language shown in strikethrough text): “In addition to the foregoing, Service Provider acknowledges that Customer has purchased and will deliver to the Facility two (2) transformers (the “Transformers”). Service Provider shall install the Transformers at the Facility for purposes of providing the Additional Capacity as part of the Expansion (the “Transformer Installation”) and Service Provider shall be responsible for any and all costs, fees or expenses incurred in connection with the Transformer Installation. Service Provider shall be responsible for continuing maintenance and operations with respect to the Transformers during the Term at its sole expense. For the avoidance of doubt, Service Provider agrees and acknowledges that Customer shall maintain full title and ownership over the Containers and the Transformers and that the Containers and Transformers shall not be considered or deemed or categorized as fixtures to any property or the Facility. Upon the end of the Term or other termination of the Agreement, Service Provider shall provide Customer with access to the Facility and provide reasonable cooperation to Customer to protect or remove the Containers and the Transformers from the Facility.”