Common use of NON-APPLICABLE COSTS Clause in Contracts

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: (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.. ADDENDUM TO TPC PROJECT COST PRINCIPLES A INTELLECTUAL PROPERTY PROTECTION Notwithstanding section 7(b) above, legal, accounting and consulting fees in connection with the obtaining of patents and statutory protection of other elements of the Intellectual Property are Eligible Costs. SCHEDULE 4 - CONTRACTUAL BENEFITS A - PAYMENTS TO MINISTER

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 the 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;; FILE NO. 710-487968 (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. FILE NO. 710-487968 ADDENDUM TO TPC PROJECT COST PRINCIPLES A. INTELLECTUAL PROPERTY PROTECTION Notwithstanding section 7(b) above, legal, accounting and consulting fees in connection with the obtaining of patents and statutory protection of other elements of the Intellectual Property are Eligible Costs.

NON-APPLICABLE COSTS. Notwithstanding that the following costs may have been or may be reasonably and properly incurred by the Proponent Recipient 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 ProponentRecipient; (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 due 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. ADDENDUM TO THE "TPC" PROJECT COST PRINCIPLES A] SPECIAL PURPOSE EQUIPMENT AND OTHER ITEMS OF MACHINERY & EQUIPMENT (1) To be an Eligible Cost, the Special Purpose Equipment and any item of machinery and equipment must be necessary for the performance of the Project, be described in sufficient detail in the Statement of Work, so as to be readily identifiable, along with the cost related thereto. (2) If a Pilot Plant is developed, constructed or integrated, by the Recipient or by approved subcontractors for the purposes of the Project, the costs related thereto will be eligible, only if those costs are specifically identified in the Statement of Work, in accordance with the provisions of sub-section (5) of this section. (3) Eligible Costs related to Special Purpose Equipment and to any item of machinery and equipment shall reflect the net laid-down cost to the Recipient, after deducting trade discounts and cash discounts for prompt payment. (4) Where applicable, periodic payments under a capital lease for Special Purpose Equipment or for any other significant items of machinery and equipment represent Eligible Costs, up to a maximum not exceeding the price of the item involved, if it were purchased at the commencement of the lease period; all interest and carrying charges are to be excluded. For operating leases, the Eligible Cost is the actual lease payments incurred during the performance of the Project activities. (5) Where applicable, labour and material costs required in the modification or adaptation of the Special Purpose Equipment, machinery and other items of equipment, for the purposes of the Project, are eligible provided such cost elements are specifically identified in the Statement of Work. (6) Unless such is otherwise allowed in the Statement of Work, costs of construction or alteration of plant facilities to accommodate the Special Purpose Equipment or any other item of machinery and equipment, and any profit, fees, general and administrative overhead expenses related thereto, are not eligible.

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 capitalcap ital, 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. Notwithstanding section 7(b) above, legal, accounting and consulting fees in connection with the obtaining of patents and statutory protection of other elements of the Intellectual Property are Eligible Costs. Notwithstanding the provisions on Direct Labour Costs and Indirect Costs contained above, in the event that it is mentioned in the Statement of W ork that the Canada Revenue Agency policy on Scientific Research and Experimental Development has been chosen by the Proponent as a proxy for Overhead calculations for this Pro ject, please see the attached guide, TPC Overhead Proxy.

NON-APPLICABLE COSTS. A. Notwithstanding that the following costs may have been or may be reasonably and properly incurred by the Proponent during Contractor in connection with the performance of Project activitiesa Statement of Work, they are considered non-applicable such costs shall not be included for the purposes of any Statement of Work and may not be charged to the ProjectCustomer or Users: (a) 1. allowance for interest on invested capital, bonds, debentures, bank or other loans together with related bond discounts and finance charges; (b) 2. 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 MinisterCustomer or Users; (c) 3. losses on investments, bad debts and expenses for the collection thereof; (d) 4. losses on other projects or contracts; (e) federal 5. federal, provincial, and provincial state income taxes, excess profit taxes or surtaxes and/or special expenses in connection therewith; (f) 6. provisions for contingencies; (g) 7. premiums for life insurance on the lives of officers and/or directors where proceeds accrue to the ProponentContractor; (h) 8. amortization of unrealized appreciation of assets; (i) 9. depreciation of assets paid for by the MinisterCustomer; (j) 10. fines and penalties; (k) 11. expenses and depreciation of excess facilities; (l) 12. unreasonable compensation for officers and employees; (m) 13. product development or improvement expenses not associated with the product products or services being acquired under the ProjectStatement of Work; (n) 14. 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) 15. entertainment expensesexpenses and travel expenses not directly related to the applicable Statement of Work; (p) donations 16. donations, except those to charities registered under the Canadian Income Tax Act; (q) 17. dues and other memberships memberships, other than regular trade and professional associations;; and (r) fees, 18. fees that are extraordinary or abnormal for professional advice in regard to technical, administrative or accounting matters, unless approval from the Minister Customer is obtained.