Recalculation Procedures Clause Samples
The Recalculation Procedures clause establishes the method by which certain financial figures or contractual amounts are reviewed and adjusted during the term of an agreement. Typically, this clause outlines the specific triggers for recalculation, such as changes in market indices, costs, or other relevant variables, and details the process for determining the new values, including any required notifications or documentation. Its core practical function is to ensure that the contract remains fair and accurate over time by providing a clear mechanism for updating key figures in response to changing circumstances.
Recalculation Procedures. Any recalculation of Basic Rent, Stipulated Loss Value and Termination Value percentages and the Special Purchase Price pursuant to this Section 3.7 shall be determined by Owner Participant, and shall be subject to the verification of Lessee and its advisors. Such recalculated Basic Rent, Stipulated Loss Value and Termination Value percentages and Special Purchase Price (including installments thereof) shall be set forth in a Lease Supplement and, in the case of Basic Rent, shall become effective as of the next succeeding Rent Payment Date and, in the case of Stipulated Loss Value, Termination Value and the Special Purchase Price, shall be retroactive to the inception of this Lease. Such recalculated Basic Rent and, if applicable, the Special Purchase Price shall be determined so as to conform, in the opinion of Owner Participant's tax counsel, to all applicable tax constraints and requirements, including the requirements of Section 467 of the Code and Sections 4.(1)(B), 4.(6) and 5. of Revenue Procedure 75-21, 75-1 Cum. Bull. 715; provided, however, that notwithstanding the foregoing, all adjustments provided for herein shall be based on the same calculation methods and assumptions (including tax assumptions set forth in Section 2 of the Tax Indemnity Agreement) as were used initially by the Owner Participant in determining Basic Rent, Stipulated Loss Values, Termination Values and the Special Purchase Price for the Aircraft (except and only to the extent such assumptions are required to be changed by virtue of the event giving rise to the adjustment or any event giving rise to any prior adjustments pursuant to the terms of this Lease) and shall take into account the amount and timing of any contribution made by the Owner Participant to the Estate subsequent to the Delivery Date. If, upon verification of the percentages determined by Owner Participant pursuant to this Section 3.7, Lessee does not agree with the determination of Owner Participant, then an independent accounting firm, to be selected by Owner Participant and reasonably acceptable to Lessee, shall verify the computations. Such accounting firm shall be requested to make its determination within 30 days. Owner Participant shall provide to such accounting firm such information as it may reasonably require, including a description of the methodology of the calculations used in computing such adjustments SALE AND LEASE AGREEMENT [N396SW] -17- 24 and such other information as is necessary to determ...
Recalculation Procedures. Any recalculation of Interim Rent, Basic Rent, Stipulated Loss Value and Termination Value percentages and the Special Purchase Price pursuant to this Section 3.7 shall be determined by Owner Participant, and shall be subject to the verification of Lessee and its advisor. Such recalculated Interim Rent, Basic Rent, Stipulated Loss Value and Termination Value percentages and Special Purchase Price (including installments thereof) shall be set forth in a Lease Supplement and, in the case of Interim Rent or Basic Rent, shall become effective as of the next succeeding Rent Payment Date and, in the case of Stipulated Loss Value, Termination Value and the Special Purchase