NON-APPLICABLE COSTS Clause Samples
The NON-APPLICABLE COSTS clause defines which expenses or charges are excluded from reimbursement or consideration under the agreement. In practice, this clause lists specific types of costs—such as overhead, administrative fees, or unrelated third-party expenses—that the paying party will not be responsible for covering. By clearly identifying these excluded costs, the clause helps prevent disputes over payment obligations and ensures both parties have a mutual understanding of which expenses are not recoverable.
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NON-APPLICABLE COSTS. Notwithstanding that the following costs may have been or may be reasonably and properly incurred by the Proponent during the performance of Project activities, they are considered non-applicable costs to the Project:
(a) allowance for interest on invested capital, bonds, debentures, bank or other loans together with related bond discounts and finance charges;
(b) legal, accounting and consulting fees in connection with financial reorganization, security issues, capital stock issues, obtaining of patents and licenses and prosecution o claims against the Minister;
(c) losses on investments, bad debts and expenses for the collection thereof;
(d) losses on other projects or contracts;
(e) federal and provincial income taxes, excess profit taxes or surtaxes and/or special expenses in connection therewith;
NON-APPLICABLE COSTS. Notwithstanding that the following costs may have been or may be reasonably and properly incurred by the Proponent during the performance of Project activities, they are considered non-applicable costs to the Project:
(a) allowance for interest on invested capital, bonds, debentures, bank or other loans together with related bond discounts and finance charges;
(b) legal, accounting and consulting fees in connection with financial reorganization, security issues, capital stock issues, obtaining of patents and licenses and prosecution of claims against the Minister;
(c) losses on investments, bad debts and expenses for the collection thereof;
(d) losses on other projects or contracts;
(e) federal and provincial income taxes, excess profit taxes or surtaxes and/or special expenses in connection therewith;
(f) provisions for contingencies;
(g) premiums for life insurance on the lives of officers and/or directors where proceeds accrue to the Proponent;
(h) amortization of unrealized appreciation of assets;
(i) depreciation of assets paid for by the Minister;
(j) fines and penalties;
(k) expenses and depreciation of excess facilities;
(l) unreasonable compensation for officers and employees;
(m) product development or improvement expenses not associated with the product being acquired under the Project;
(n) advertising, except reasonable advertising of an industrial or institutional character placed in trade, technical or professional journals for the dissemination of information for the industry or institution;
(o) entertainment expenses;
(p) donations except those to charities registered under the Income Tax Act;
(q) dues and other memberships other than regular trade and professional associations;
(r) fees, extraordinary or abnormal for professional advice in regard to technical, administrative or accounting matters, unless approval from the Minister is obtained.
NON-APPLICABLE COSTS. Notwithstanding that the following costs may have been or may be reasonably and properly incurred by the Proponent during the performance of Project activities, they are considered non-applicable costs to the Project: