Define: Shutdown Costs

How is Shutdown Costs defined in a legal contract?

• Shutdown Costs means any costs that aren’t Sustaining Costs, that are incurred during the cessation of operations. This can include the ending or modification of contracts, handling of materials, inventory or waste, termination of employees, revocation of tax benefits, or the payment for professional services.
  Seen in 3 SEC filings.
• Shutdown Costs means all costs associated with ceasing or suspending operations within a mining area. These can include costs related to rehabilitation and mine closure, and redundancy or termination payments to any consultants, contractors, or employees involved in the operations.
  Seen in 2 SEC filings.
• Shutdown Costs means all costs, charges, and expenses that have been incurred in relation to an Asset Sale. This could include the decommissioning, restoration, or operation expenses of a site, removal of equipment, and any costs associated with restructuring, severance, relocation, or similar activities in connection with the Asset Sale.
  Seen in 2 SEC filings.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for ‘Definitions of shutdown costs’ yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Shutdown Costs means incurred costs associated with ceasing or changing operations, eliminating roles, handling materials, and conducting necessary finalizations.

Relevant Contract Types

• Asset Purchase Agreement
• Business Sale Agreement
• Franchise Agreement
• Joint Venture Agreement
• Service Level Agreement

Relevant Circumstances

• Business closure or relocation
• Merger & Acquisition activities involving changes in business operation
• Project termination or suspension

Relevant Sectors

• Manufacturing and Production
• Mining
• Construction
• Logistics and Supply Chain
• Information Technology & Services

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Genie Definition 2

• Shutdown Costs means expenses related to asset sale including decommissioning, removal of equipment, or restructuring activities.

Relevant Contract Types

• Asset Purchase Agreement
• Business Sale Agreement
• Lease Agreement
• Real Estate Purchase Agreement
• Private Equity Investment Agreement

Relevant Circumstances

• End of operations in a facility or plant
• Sale, discontinuation, or decommission of assets
• Large scale equipment removal or replacement

Relevant Sectors

• Real Estate
• Manufacturing
• Telecommunications
• Energy
• Information Technology & Services

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