Common use of Redundant Assets Clause in Contracts

Redundant Assets. Each significant redundant asset should be separately identified with the rationale in support of its indemnification. Both the method of valuing the redundant asset as well as the valuation calculations should be disclosed as set out elsewhere herein. The financial impact, if any, on historical and projected income and cash flow statements should be disclosed. As relevant, the following type of information supporting the calculation of value should be disclosed: - appraisal values, appraisal dates, and names of appraisers; - estimated costs of disposition, if any; - tax, calculations (e.g. tax rates, capital gains, tax shield, etc.); - interest rates; and - financial ratios (such as current ratio; debt equity ratios, etc.) used to determine excess or redundant leverage.