Pre-Operational Expenses Clause Samples
The 'Pre-operational expenses' clause defines how costs incurred before the official start of a project or business operation are handled. It typically outlines which expenses—such as feasibility studies, legal fees, or initial setup costs—are considered pre-operational, and specifies whether these costs are reimbursable, who is responsible for payment, and how they are to be documented. This clause ensures that all parties have a clear understanding of financial responsibilities for early-stage expenditures, preventing disputes and facilitating smooth project initiation.
Pre-Operational Expenses. 10.3.1 Pre-operational Expenses
Pre-Operational Expenses. All pre-operational expenses of CMS which shall include principal and interest payments due on the bonds, adjusted by any arbitrage requirements, plus all operating expenses prior to such time as the system is operational and producing adequate usage data to formulate charges will be borne equally by County, City and KUB, except to the extent that the policy board as hereinafter defined determines such expenses may be capitalized and paid from the proceeds of the bond issue. The policy board shall determine the time at which there is sufficient usage data in the CMS to formulate charges to users.
Pre-Operational Expenses. 10.3.1 Pre-operational Expenses Split Lake Cree will immediately settle all moneys referenced in subsection 10.2.1 of this Article, save and except only those moneys which are to be available for reasonable expenses incurred, and to be incurred, by Split Lake Cree, in the definition and establishment of implementation structures, and arrangements with respect to this Agreement, ("Preoperational Expenses"), which are further described in subsection 10.3.2 below. The money from the Settlement Proceeds approved for Pre-operational Expenses shall not exceed seven hundred and fifty thousand dollars ($750,000.00).