Asset Valuation Methodology Clause Samples
The Asset Valuation Methodology clause defines the process and standards by which the value of assets is determined within an agreement. Typically, this clause specifies the valuation techniques to be used—such as market value, book value, or independent appraisal—and may outline the timing and frequency of valuations, as well as the qualifications required for any third-party valuators. Its core practical function is to ensure consistency and transparency in how assets are valued, thereby reducing disputes and providing a clear basis for financial calculations or transactions involving those assets.
Asset Valuation Methodology. The Value of: (i) any Unpaid Amount Deliverable; and (ii) any other Security (each such Security being Valued, a “Relevant Asset”) as at the relevant Asset Valuation Date shall be an amount in US dollars determined by the Company in accordance with the following provisions (the “Asset Valuation Methodology”):
17.1.1 Proceeds of sale: if the Company sells or has sold on that date a Security that is fungible with, or otherwise substantially economically equivalent to, the Relevant Asset, the proceeds of sale; or
Asset Valuation Methodology. Asset Valuation Methodology
Asset Valuation Methodology. 21.1 The value of any Security or the obligation to deliver Securities as at the relevant valuation date will be an amount in US dollars determined by the Company using a specified valuation methodology (the “Asset Valuation Methodology”). The value will be:
21.1.1 if the Company has sold Securities of that type on that date, the proceeds of sale; or
21.1.2 otherwise: (i) the mid-market price for that Asset that is reported by a recognised pricing source; (ii) failing which, the arithmetic mean of the bid and offer prices that are published on a recognised pricing source; (iii) failing which, the mid-point between firm bid and offer quotations; or (iv) failing which, the mid-point between indicative bid and offer quotations or, if one or more bid prices and offer prices are both provided, the arithmetic mean of the bid prices and the offer prices; or
21.1.3 otherwise, the fair market value (which will be based on mid-market pricing and may be zero) for the Asset, as determined by the Company. The Company may take into account any Relevant Information, including, without limitation, one or more of the following types of information: