Common use of Rules and Guidelines Clause in Contracts

Rules and Guidelines. (i) TAI shall be required to pay for all Capital Spending related to or affecting the Facilities. (ii) TAI has authority to approve all Minor Capital Spending in the Plan less than FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) per project, so long as such expenditures are consistent with the Plan. (iii) Proposed expenditures of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) per project or more related to or affecting the Cargill Facilities will be submitted to Cargill for prior approval, including all expenditures within the plan. (iv) TAI’s capital spending approval procedures will govern TAI’s decision-making process for Minor Capital Spending. (v) Substitutions within the framework of the Plan will be allowed for expenditures less than FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00). Substituted expenditures of amounts greater than FIFTY THOUSAN AND NO/100 DOLLARS ($50,000) will require the approval of the owner of the affected Facility. (vi) All Major Capital Spending in excess of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) per project will require prior approval by both parties regardless of the affected Facility. (vii) If, in the judgment of the parties, substantial new capital investment or a reduction in capital assets into the Leased Facilities is warranted, it is the intent of the parties to maintain reasonable parity between the parties. For example, if capital investments materially change projected EBT, then it would be reasonable that corresponding thresholds for calculation of income splits be reconsidered, however any such changes must be mutually agreed upon by the parties. (viii) All capital spending in excess of or outside of the Plan will require prior approval by both parties.

Rules and Guidelines. (i) TAI shall be required to pay for all Capital Spending related to or affecting the Facilities. (ii) TAI has authority to approve all Minor Capital Spending in the Plan less than FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) per project, so long as such expenditures are consistent with the Plan. (iii) Proposed expenditures of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) per project or more related to or affecting the Cargill Facilities will be submitted to Cargill for prior approval, including all expenditures within the plan. (iv) TAI’s capital spending approval procedures will govern TAI’s decision-making process for Minor Capital Spending. (v) Substitutions within the framework of the Plan will be allowed for expenditures less than FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00). Substituted expenditures of amounts greater than FIFTY THOUSAN AND NO/100 DOLLARS ($50,000) will require the approval of the owner of the affected Facility. (vii) All Major Capital Spending in excess of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) per project will require prior approval by both parties regardless of the affected Facility. (viiii) If, in the judgment of the parties, substantial new capital investment or a reduction in capital assets into the Leased Facilities is warranted, it is the intent of the parties to maintain reasonable parity between the parties. For example, if capital investments materially change projected EBT, then it would be reasonable that corresponding thresholds for calculation of income splits be reconsidered, however any such changes must be mutually agreed upon by the parties. (viii) All capital spending in excess of or outside of the Plan will require prior approval by both parties.