Non-qualifying Expenditures Clause Samples

The Non-qualifying Expenditures clause defines which costs or expenses are not eligible for reimbursement or inclusion under a contract or agreement. Typically, this clause lists specific types of expenditures—such as fines, penalties, or unrelated administrative costs—that the paying party will not cover. By clearly outlining these exclusions, the clause helps prevent disputes over payment and ensures that only appropriate, agreed-upon expenses are claimed, thereby protecting both parties from misunderstandings and unintended financial obligations.