Disrupted Transactions Clause Samples
The Disrupted Transactions clause defines how parties should handle situations where a transaction cannot proceed as originally planned due to unforeseen events or disruptions. Typically, this clause outlines the steps to be taken if a transaction is delayed, canceled, or otherwise affected by factors such as regulatory changes, market interruptions, or technical failures. Its core practical function is to provide a clear process for managing disruptions, thereby reducing uncertainty and allocating responsibility between the parties when transactions do not go as intended.
Disrupted Transactions. If this Section 19.2 is specified as applicable in the Schedule, then the following Provisions shall apply to Transactions under this Agreement: If the price of a Transaction is based on an industry reference index (the “Original Index”) that ceases to be published or is not published for any period applicable to calculation of the Reference Price of one or more Transactions (the “Disrupted Transactions”), the Parties shall in good faith (a) select an alternative index that reflects as nearly as possible the same information as published in the Original Index; or (b) negotiate an interim Reference Price for the Disrupted Transaction until the Original Index recommences publishing or an alternative index can be identified to replace the Original Index. In the event the Parties are unable to agree on an alternative index or otherwise agree on a price within ten (10) days after the Original Index ceases to be published or is not published for any period applicable to calculation of the Reference Price of a Disrupted Transaction, then the issue shall be promptly submitted to an Expert for resolution. The cost of the Expert shall be shared equally between the Parties. Upon appointment of the Expert, each Party shall submit to the Expert its determination of the Price for the Disrupted Transaction. The Expert shall select from the two submissions the Price that it determines best reflects the Price that would have applied to the Disrupted Transaction based on the Original Index in the absence of its disruption. The Expert’s decision shall be final and binding, absent fraud, and shall be provided to the Parties in the form of a report that contains the facts and other data supporting the Expert’s decision. The Expert’s decision shall be provided to the Parties within thirty (30) days after the Original Index ceases to be published or is not published for any period applicable to calculation of the Reference Price of a Disrupted Transaction.
Disrupted Transactions. [ ] Applicable. If not checked, inapplicable. Confirming Party: [ ] Party A [ ] Party B
Disrupted Transactions. [ ] Applicable.
Disrupted Transactions. [ ] Applicable. If not checked, inapplicable. Confirming Party: [X ] Seller [ ] Buyer (“Seller”) By: Name: Fax: Title: Date: (“Buyer”) By: Name: Fax: Title: Date:
Disrupted Transactions. [X] Applicable. If not checked, inapplicable. Confirming Party: [ ] Party A [ ] Party B Schedule to the LEAP LCFS Agreement attached on pages [28-33]. Exhibit 3 to the LEAP LCFS Agreement attached on page [34] Specify, if any: Schedule to the LEAP LCFS Agreement Schedule to the LEAP LCFS Agreement attached on pages [28-33].