Pilot Facility Funding Clause Samples

Pilot Facility Funding. (a) If on or prior to the first anniversary of this Agreement, (i) the President submits a Pilot Facility Plan to the Members for approval, and (ii) the Company has met all applicable Milestones, then, notwithstanding TESI's obligations under Section 2.6(a) to fund all costs and expenses during the R&D Phase, all costs and expenses associated with the applicable Pilot Facility, to the extent such costs and expenses exceed cash available from the operation of such Pilot Facility, and subject to the limits set forth in Section 2.6(a)(iv) ("Pilot Facility Costs"), shall be funded by Capital Contributions of the Members as set forth in this Section 2.11. (b) If the Members approve the Pilot Facility Plan, and the applicable Pilot Facility has a capacity of 20,000 units per year or less, TESI shall fund 100% of all Pilot Facility Costs associated with such Pilot Facility. (c) If the Members approve the Pilot Facility Plan, and the applicable Pilot Facility has a capacity of more than 20,000 units per year, all Pilot Facility Costs associated with such Pilot Facility ("High Capacity Facility Costs") shall be funded as follows: (i) TESI shall fund: