Long Term SUMF definition

Long Term SUMF has the meaning given to this term in Article 4.3;

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Long Term SUMF has the meaning given to this term in Article 4; “Loss or Damage” means any loss, damage or injury of whatever nature, including without limitation, personal injury, disease and death; “Maintenance Capital” means the cost of acquiring intangible assets and PPE by purchase, construction or other means. In order for an item to be qualified as Maintenance Capital, criteria include: ◦ item will be installed permanently (not removed after a specific use). ◦ item will last longer than 1 year. ◦ meets or exceeds the "Capitalization Threshold" which is USD 50,000. For clarity, just meeting Capital Threshold alone is not a sufficient criterion for capitalization. ◦ replacements and renewals of assets: Costs incurred in the replacement or renewal of an existing asset in its entirety are capitalized. Parts of an asset may require replacement. To meet the capital criteria, partial replacement must carry a clear and measurable future economic benefit in that there is expected to be a material increase in the asset’s useful economic life or functionality/performance (for example, capacity, throughput/output or reduction in running cost). ◦ spare parts, spare capacity and stand-by equipment: are usually carried as inventory and charged to P&L when consumed. However, there are the following exceptions:

Examples of Long Term SUMF in a sentence

• Article 10 provides specific termination provisions for Long Term SUMF Items.

• Conversely, the Purchaser shall pay the reasonable costs, including personnel termination costs (including those actuarially determined) determined in accordance with Article 10.8, which result from the Supplier’s fixed cost reduction efforts in response to a permanent or long-term reduction by the Purchaser of a Sole Supplier SUMF Item or a Long Term SUMF Item.

• Upon the termination of a Long Term SUMF Item, the Purchaser shall physically disconnect from that SUMF Item’s delivery system in the time and manner instructed by the Supplier.

• The Supplier shall pay the costs associated with the physical disconnection of the Long Term SUMF Item that are not required to be paid by the Purchaser as provided in the preceding sentence.

• The Purchaser shall pay the costs associated with the physical disconnection, if a Long Term SUMF Item is terminated (i) by Purchaser pursuant to Article 10.2(A) or 10.3(C) or (ii) by Supplier pursuant to Article 10.4(A) or 10.5(A).

• The Purchaser shall pay the costs associated with the physical disconnection, if a Long Term SUMF Item was terminated (i) by Purchaser pursuant to Article 10.2(B) or 10.3(D) or (ii) by Supplier pursuant to Article 10.4(A), 10.4(B), 10.5(A) or 10.5(B).

• At the end of the initial or any extension term of a Long Term SUMF Item or a Sole Supplier Item, all costs associated with the physical disconnection shall be paid 50% by Purchaser and 50% by Supplier.

• Article 10 provides specific termination clauses for Long Term SUMF Items.

• Depending on the classification of the schedule (Sole Supplier SUMF, Long Term SUMF or Short Term SUMF), the schedules can be reviewed each year during the Annual Budgeting Plan and Budget and approved for the following calenderyear.

• Depending on the classification of the schedule (Sole Supplier SUMF, Long Term SUMF or Short Term SUMF), the schedules can be reviewed each year during the Annual Budgeting Plan and Budget and approved for the following calender year.