Financial Model Updates Clause Samples
The Financial Model Updates clause establishes the requirement and process for periodically revising and updating the financial model used in a project or agreement. Typically, this clause outlines when updates must occur—such as after key milestones, changes in project scope, or at regular intervals—and may specify the parties responsible for preparing and reviewing the updated model. By ensuring that all stakeholders have access to the most current financial projections and assumptions, this clause helps maintain transparency, supports informed decision-making, and mitigates the risk of disputes arising from outdated or inaccurate financial information.
Financial Model Updates. 14 Section 5.03 Deposit and Use of Permit Fee and Other Payments. 15 Section 5.04 Sharing of Cost and Interest Rate Savings. 15
Financial Model Updates. The Concessionaire shall provide to the Department an updated Base Case Financial
(i) on or before April 30 of each calendar year, including the updated TRI to the end of the preceding calendar year;
(ii) within 60 days after the occurrence of a Compensation Event;
(iii) within 60 days after the parties agree that amendments to the Agreement or the other Project Agreements (including Department Changes during the Work Period pursuant to Section 7.12) have a material effect on future costs or Toll Revenues; and
(iv) concurrently with written notice of any proposed Refinancing in accordance with Section 6.06(a)(ii). The Department shall have the right to challenge any such update to the Base Case Financial Model. To the extent that the Concessionaire and Department cannot agree on the changes within 90 days of the Concessionaire delivering the updated Base Case Financial Model to the Department, the update will be resolved in accordance with the dispute procedures of Section 17.06. In the event of a challenge, the immediately preceding Base Case Financial Model that has not been challenged shall remain in effect pending resolution of the challenge or until a new Base Case Financial Model is issued and unchallenged. If an updated Base Case Financial Model has not been challenged, or if any such challenge has been so resolved, the updated Base Case Financial Model shall be submitted to the Escrow Agent in accordance with Section 18.05(e). In no event shall the Financial Model used in the Base Case Financial Model be changed except with the prior written approval of both the Department and the Concessionaire, each in its sole discretion.
Financial Model Updates. 14.2.1 As agreed to from time to time by the Parties, the Financial Model may be updated to reflect changes in this Agreement. The Financial Model Update will become the Financial Model and will be attached to this Agreement by amendment.
14.2.2 Developer shall prepare the Financial Model Updates and shall provide the Department with each Financial Model Update and a complete set of the updated and revised assumptions, and other data that form a part of the Financial Model as updated, including updated and revised projections and calculations with respect to revenues, expenses, the payment of Project Debt and Distributions to Equity Members. The Department may require that the Financial Model Updates be audited by an independent audit firm satisfactory to the Department prior to Financial Model Update becoming a part of this Agreement. The Parties shall bear equally in the cost of the audit. The audit of the Financial Model Update may be the same one required by the Lenders.
14.2.3 The Department shall have the right at all times to gain access, on an open book basis, to the Financial Model and each Financial Model Update and the set of updated and revised assumptions and other data that form part of each such model. The Department shall have the right to challenge the validity, accuracy or reasonableness of any Financial Model Update or the related updated and revised assumptions and data. In the event of a challenge, the immediately preceding Financial Model Update that has not been challenged (or, if there has been no unchallenged Financial Model Update, the Financial Model) shall remain in effect pending the outcome of the challenge or until a new Financial Model Update is issued and not challenged.
14.2.4 In no event shall the Financial Model Formulas be changed except with the prior written agreement of both Parties.
Financial Model Updates. 16.2.1 Developer shall run new projections and calculations under the Financial Model Formulas to establish a Financial Model Update:
Financial Model Updates. (a) Other than in accordance with the terms of Section 6.01(a) and this Section 6.02, in no event will the Financial Model be changed.
(b) Upon the occurrence of the following events, the Developer will provide to the LA DOTD a proposed Financial Model Update which will (except as otherwise agreed by the parties) include new projections and calculations, setting forth the impact of the event and incorporating only those changes caused by the event for which the Financial Model is being updated:
(i) upon submission of a written notice of a proposed Refinancing provided by the Developer to the LA DOTD under Section 7.05(a);
(ii) within 60 days after the LA DOTD’s acceptance of any claim by the Developer for a Delay Event;
(iii) within 60 days after determination of any Developer Damages;
(iv) within 60 days after a Request for Change Proposal is issued by the LA DOTD under Section 13.02(b); and
(v) within 60 days after the parties agree that any amendments to this Agreement have had or will have a material effect on future expenses or Gross Revenues.
(c) Any proposed Financial Model Update provided by the Developer under Section 6.02(b) will become the Financial Model in effect following (i) review, comment and approval by the LA DOTD of such Financial Model Update, and (ii) the LA DOTD’s receipt of a satisfactory audit report and opinion delivered by the Financial Model Auditor in accordance with Section 6.04.
Financial Model Updates. Developer shall cause a Financial Model Auditor to audit any Financial Model Update and Developer shall deliver the relevant Financial Model Audit Report to the Owner prior to such Financial Model Update becoming effective under this Agreement. The updated Financial Model Audit Report shall take into account the changes incorporated in the Financial Model Update in accordance with Section 16.2.1.
Financial Model Updates. 1 is amended to read in its entirety as follows:
Financial Model Updates