{"component": "clause", "props": {"groups": [{"samples": [{"hash": "10SZTmCBkGE", "uri": "/contracts/10SZTmCBkGE#initial-adjustment", "label": "Agreement and Plan of Merger (Rex Energy Corp)", "score": 23.6036960986, "published": true}, {"hash": "3FSUHZFnbkP", "uri": "/contracts/3FSUHZFnbkP#initial-adjustment", "label": "Merger Agreement (Markwest Energy Partners L P)", "score": 23.5954825462, "published": true}], "size": 2, "snippet_links": [{"key": "prior-to-the-closing-date", "type": "clause", "offset": [42, 67]}, {"key": "the-company-shall", "type": "clause", "offset": [69, 86]}, {"key": "deliver-to", "type": "definition", "offset": [87, 97]}, {"key": "the-parent", "type": "clause", "offset": [98, 108]}, {"key": "certificate-of-the-manager", "type": "clause", "offset": [111, 137]}, {"key": "authorized-officer", "type": "clause", "offset": [160, 178]}, {"key": "relate-to", "type": "definition", "offset": [202, 211]}, {"key": "preparation-of-financial-statements-of-the-company", "type": "clause", "offset": [216, 266]}, {"key": "closing-certificate", "type": "definition", "offset": [282, 301]}, {"key": "estimated-balance-sheet", "type": "definition", "offset": [325, 348]}, {"key": "closing-calculation-date", "type": "definition", "offset": [374, 398]}, {"key": "in-accordance-with", "type": "definition", "offset": [409, 427]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [452, 481]}, {"key": "the-principles", "type": "clause", "offset": [486, 500]}, {"key": "preparation-of-the", "type": "clause", "offset": [513, 531]}, {"key": "latest-balance-sheet", "type": "definition", "offset": [532, 552]}, {"key": "calculation-of-net-working-capital", "type": "clause", "offset": [572, 606]}, {"key": "definition-of-net-working-capital", "type": "clause", "offset": [639, 672]}, {"key": "estimated-working-capital", "type": "clause", "offset": [679, 704]}, {"key": "estimated-amount", "type": "definition", "offset": [718, 734]}, {"key": "estimated-closing-cash", "type": "definition", "offset": [757, 779]}, {"key": "closing-indebtedness", "type": "definition", "offset": [815, 835]}, {"key": "in-the-event", "type": "clause", "offset": [837, 849]}, {"key": "the-initial-closing", "type": "clause", "offset": [902, 921]}, {"key": "the-parties-shall", "type": "clause", "offset": [935, 952]}, {"key": "in-good-faith", "type": "definition", "offset": [967, 980]}, {"key": "changes-to-the", "type": "definition", "offset": [1019, 1033]}, {"key": "in-writing", "type": "clause", "offset": [1099, 1109]}, {"key": "the-company-and-the", "type": "clause", "offset": [1113, 1132]}, {"key": "prior-to-closing", "type": "clause", "offset": [1255, 1271]}, {"key": "for-purposes-of-the", "type": "clause", "offset": [1352, 1371]}, {"key": "target-working-capital", "type": "clause", "offset": [1443, 1465]}, {"key": "equal-to", "type": "definition", "offset": [1482, 1490]}, {"key": "base-consideration", "type": "clause", "offset": [1583, 1601]}], "snippet": "(a) No later than three (3) Business Days prior to the Closing Date, the Company shall deliver to the Parent a certificate of the Manager of the Company (or an authorized officer whose responsibilities relate to the preparation of financial statements of the Company) (the \u201cInitial Closing Certificate\u201d) setting forth (i) an estimated balance sheet of the Company as of the Closing Calculation Date, prepared in accordance with GAAP applied on a basis consistent with past practice and the principles used in the preparation of the Latest Balance Sheet, (ii) an estimated calculation of Net Working Capital prepared in accordance with the definition of Net Working Capital (the \u201cEstimated Working Capital\u201d), (iii) the estimated amount of Closing Cash (the \u201cEstimated Closing Cash\u201d) and (iv) the estimated amount of Closing Indebtedness. In the event that Parent disagrees with any amounts set forth in the Initial Closing Certificate, the parties shall work together in good faith to resolve any such disputes, and any changes to the amounts set forth in the Initial Closing Certificate agreed upon in writing by the Company and the Parent shall be substituted for the amounts set forth in the Initial Closing Certificate. If such dispute is not resolved prior to Closing, then the amounts set forth in the Initial Closing Certificate shall be binding for purposes of the Closing.\n(b) If the Estimated Working Capital is:\n(i) greater than the Target Working Capital, then an amount equal to (x) the Estimated Working Capital minus (y) the Target Working Capital will be added to the Base Consideration; and\n(ii) less than the Target Working Capital, then an amount equal to (x) the Target Working Capital minus (y) the Estimated Working Capital will be subtracted from the Base Consideration.", "hash": "8ac66a1aa41e73ed619c52e081f02890", "id": 4}, {"samples": [{"hash": "f3VaQfL0j0C", "uri": "/contracts/f3VaQfL0j0C#initial-adjustment", "label": "Lease Agreement (Source Interlink Companies Inc)", "score": 18.0, "published": true}], "size": 2, "snippet_links": [{"key": "commencing-on", "type": "clause", "offset": [0, 13]}, {"key": "adjustment-date", "type": "clause", "offset": [24, 39]}, {"key": "basic-rent", "type": "definition", "offset": [72, 82]}, {"key": "the-product", "type": "clause", "offset": [140, 151]}, {"key": "lease-years", "type": "definition", "offset": [204, 215]}, {"key": "from-the-commencement-date", "type": "clause", "offset": [235, 261]}, {"key": "subject-adjustment", "type": "definition", "offset": [274, 292]}, {"key": "in-effect", "type": "definition", "offset": [335, 344]}, {"key": "as-soon-as-practicable", "type": "definition", "offset": [472, 494]}, {"key": "following-the", "type": "definition", "offset": [495, 508]}, {"key": "change-in-the-consumer-price-index", "type": "definition", "offset": [545, 579]}, {"key": "in-the-event-the", "type": "clause", "offset": [673, 689]}, {"key": "by-lessor", "type": "definition", "offset": [790, 799]}, {"key": "to-lessee", "type": "clause", "offset": [800, 809]}, {"key": "the-option", "type": "clause", "offset": [847, 857]}, {"key": "of-landlord", "type": "clause", "offset": [858, 869]}], "snippet": "Commencing on each such adjustment date described in Section 3.1.2, the Basic Rent shall be automatically increased, such increase to equal the product of three percent (3.0%) multiplied by the number of Lease Years which have elapsed from the Commencement Date through the subject adjustment date, as an estimate of the actual change in effect as set forth inSection3.l.2 above (\"Estimated Change\"). The Estimated Change shall be applied to the amount of the Basic Rent. As soon as practicable following the subject adjustment date, the actual change in the Consumer Price Index as calculated in Section 3.1.2 shall be determined and reconciled with the Estimated Change. In the event the Estimated Change has resulted in Lessee paying excessive Basic Rent, then such excess shall be paid by Lessor to Lessee or credited to future Basic Rent, at the option of Landlord.", "hash": "081dc77a172954864a2a557a7e039b74", "id": 7}, {"samples": [{"hash": "52tgimEdGJb", "uri": "/contracts/52tgimEdGJb#initial-adjustment", "label": "Collective Agreement", "score": 29.2942237678, "published": true}, {"hash": "Ro0cFtuFml", "uri": "/contracts/Ro0cFtuFml#initial-adjustment", "label": "Collective Bargaining Agreement", "score": 26.2639578566, "published": true}, {"hash": "9biN4yF8OEn", "uri": "/contracts/9biN4yF8OEn#initial-adjustment", "label": "Collective Agreement", "score": 26.1704312115, "published": true}], "size": 11, "snippet_links": [{"key": "october-1", "type": "definition", "offset": [0, 9]}, {"key": "base-kilometer-rate", "type": "clause", "offset": [24, 43]}, {"key": "effective-october", "type": "clause", "offset": [63, 80]}, {"key": "based-on", "type": "clause", "offset": [89, 97]}, {"key": "fuel-price", "type": "clause", "offset": [121, 131]}, {"key": "base-fuel-rate", "type": "clause", "offset": [161, 175]}, {"key": "rounded-to", "type": "clause", "offset": [225, 235]}, {"key": "decimal-places", "type": "clause", "offset": [241, 255]}], "snippet": "October 1, 2005\na) The \u2018base kilometer rate\u2019 shall be adjusted effective October 1, 2005 based on the difference in the \u2018fuel price\u2019 on October 1, 2005 and the \u2018base fuel rate\u2019 multiplied by 1/10.\nb) Kilometer rates shall be rounded to four decimal places after the dollar ($0.0000).", "hash": "f0c251c2132d1d044d8c2a384f4b87a7", "id": 1}, {"samples": [{"hash": "3HXI5uWX4rC", "uri": "/contracts/3HXI5uWX4rC#initial-adjustment", "label": "Collective Bargaining Agreement", "score": 26.2639578566, "published": true}, {"hash": "lQx5nF0bk7n", "uri": "/contracts/lQx5nF0bk7n#initial-adjustment", "label": "General Service Collective Agreement", "score": 26.1704312115, "published": true}, {"hash": "eezPPbCJvRh", "uri": "/contracts/eezPPbCJvRh#initial-adjustment", "label": "Collective Agreement", "score": 26.1704312115, "published": true}], "size": 5, "snippet_links": [{"key": "october-1", "type": "definition", "offset": [0, 9]}], "snippet": "October 1, 2005", "hash": "7f9c16df1d01e78bf42a79f3259b0382", "id": 2}, {"samples": [{"hash": "3uIsTWYNkIi", "uri": "/contracts/3uIsTWYNkIi#initial-adjustment", "label": "Management Services Agreement", "score": 31.340862423, "published": true}, {"hash": "5cUFu6bBpAN", "uri": "/contracts/5cUFu6bBpAN#initial-adjustment", "label": "Management Services Agreement (Vein Associates of America Inc)", "score": 21.0, "published": true}], "size": 4, "snippet_links": [{"key": "adjustment-to", "type": "clause", "offset": [6, 19]}, {"key": "the-management-fee", "type": "clause", "offset": [20, 38]}, {"key": "year-of-the-term", "type": "definition", "offset": [62, 78]}, {"key": "succeeding-year", "type": "definition", "offset": [134, 149]}, {"key": "equal-to", "type": "definition", "offset": [159, 167]}, {"key": "operations-fee", "type": "definition", "offset": [195, 209]}, {"key": "sum-of", "type": "clause", "offset": [238, 244]}, {"key": "expenses-and", "type": "clause", "offset": [275, 287]}, {"key": "professional-expenses", "type": "clause", "offset": [288, 309]}, {"key": "applicable-percentage", "type": "definition", "offset": [342, 363]}, {"key": "applicable-year", "type": "definition", "offset": [502, 517]}, {"key": "for-purposes-of-this", "type": "clause", "offset": [519, 539]}, {"key": "practice-operating-expenses", "type": "definition", "offset": [557, 584]}, {"key": "cost-savings", "type": "definition", "offset": [638, 650]}, {"key": "by-manager", "type": "clause", "offset": [663, 673]}, {"key": "malpractice-insurance", "type": "clause", "offset": [687, 708]}, {"key": "date-of", "type": "clause", "offset": [733, 740]}, {"key": "the-adjustment", "type": "clause", "offset": [741, 755]}, {"key": "determine-the", "type": "clause", "offset": [884, 897]}, {"key": "new-fees", "type": "clause", "offset": [898, 906]}, {"key": "divided-by", "type": "clause", "offset": [1140, 1150]}, {"key": "illegal-or-unenforceable", "type": "clause", "offset": [1431, 1455]}], "snippet": "If an adjustment to the Management Fee is required during any Year of the Term, the Management Fee for the rest of such Year and each succeeding Year shall be equal to the greater of (a) (i) the Operations Fee for such Year plus (ii) the sum of the Operations Fee, marketing expenses and Professional Expenses for such Year multiplied by the Applicable Percentage, as defined below, for such Year or (b) (i) the Operations Fee for such Year plus (ii) twenty percent (20%) of the Operations Fee for the applicable Year. For purposes of this calculation, the Practice Operating Expenses shall not be reduced by any objectively determinable cost savings implemented by Manager (e.g., group malpractice insurance savings). If, as of the date of the adjustment, less than twelve (12) full months of the Term have transpired, then the Management Fee provided for above shall be prorated to determine the new fees for the remainder of such Year. \u201cAp plicable Percentage\u201d shall mean the average of the Management Fee for the three (3) years (or such shorter period if three (3) years have not transpired) immediately preceding the applicable Year, divided by the average for the three (3) years (or such shorter period if three (3) years have not transpired) immediately preceding the applicable Year, of the sum of the Operations Fee, marketing expenses and Professional Expenses. If either clause (a) or (b) above is or becomes invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining clause shall not be affected thereby.", "hash": "7615bdff483ea2bf3f8f6b99fb3b3259", "id": 3}, {"samples": [{"hash": "lRG2Ta7qsMz", "uri": "/contracts/lRG2Ta7qsMz#initial-adjustment", "label": "Pellet Sale and Purchase Agreement (Cleveland-Cliffs Inc.)", "score": 27.1943874059, "published": true}, {"hash": "iTCZDZzepbw", "uri": "/contracts/iTCZDZzepbw#initial-adjustment", "label": "Pellet Sale and Purchase Agreement (Cleveland-Cliffs Inc.)", "score": 27.1204654346, "published": true}], "size": 2, "snippet_links": [{"key": "before-december", "type": "clause", "offset": [6, 21]}, {"key": "ak-steel", "type": "definition", "offset": [68, 76]}, {"key": "in-writing", "type": "clause", "offset": [77, 87]}, {"key": "adjusted-price", "type": "clause", "offset": [92, 106]}, {"key": "effective-january", "type": "clause", "offset": [107, 124]}, {"key": "succeeding-year", "type": "definition", "offset": [134, 149]}, {"key": "for-september", "type": "clause", "offset": [247, 260]}, {"key": "current-year", "type": "definition", "offset": [419, 431]}], "snippet": "On or before December 15, Cliffs shall calculate and communicate to AK Steel in writing the Adjusted Price effective January 1 of the succeeding year (\"Initial Adjustment\"). The Initial Adjustment shall be calculated utilizing (1) the *** (\u201c***\u201d) for September, October and November as compared to the *** for the immediately preceding *** Year; and (2) the PPIs for the succeeding year as compared to the PPIs for the current year.", "hash": "9da62c943ce246a67469502485655585", "id": 5}, {"samples": [{"hash": "f0nR8pJ1dZK", "uri": "/contracts/f0nR8pJ1dZK#initial-adjustment", "label": "Hosting Service Agreement (BGIN BLOCKCHAIN LTD)", "score": 36.1403148528, "published": true}], "size": 2, "snippet_links": [{"key": "the-contract-period", "type": "definition", "offset": [24, 43]}, {"key": "hosting-fee", "type": "definition", "offset": [49, 60]}, {"key": "provided-that", "type": "clause", "offset": [159, 172]}, {"key": "the-post", "type": "clause", "offset": [173, 181]}, {"key": "electricity-price", "type": "clause", "offset": [201, 218]}], "snippet": "If, during any month of the contract period, the Hosting Fee Ratio exceeds [***]%, Host shall reduce the hosting fee to lower the Hosting Fee Ratio to [***]%, provided that the post-adjustment hosting electricity price shall not fall below USD[***]. And;", "hash": "0fbc202c6af07a9aa86caf8e7691739b", "id": 6}, {"samples": [{"hash": "lDfvvOBqrnY", "uri": "/contracts/lDfvvOBqrnY#initial-adjustment", "label": "Collective Bargaining Agreement (STC Broadcasting Inc)", "score": 18.0, "published": true}], "size": 1, "snippet_links": [{"key": "bargaining-unit-member", "type": "definition", "offset": [4, 26]}, {"key": "rate-of", "type": "clause", "offset": [86, 93]}, {"key": "effective-september", "type": "clause", "offset": [189, 208]}], "snippet": "Any bargaining unit member who was employed as of September 15, 1999 at a base hourly rate of less than Nine Dollars ($9.00) shall receive a raise to Nine Dollars ($9.00) base hourly rate, effective September 15, 1999.", "hash": "2168e2fe5ef982bd5b050d9a7c379d76", "id": 8}, {"samples": [{"hash": "9qPPVpfdW7U", "uri": "/contracts/9qPPVpfdW7U#initial-adjustment", "label": "Collection Services Agreement", "score": 21.3299110198, "published": true}], "size": 1, "snippet_links": [{"key": "service-rates", "type": "clause", "offset": [12, 25]}, {"key": "agreement-year", "type": "definition", "offset": [57, 71]}, {"key": "effective-march", "type": "clause", "offset": [72, 87]}, {"key": "applicable-year", "type": "definition", "offset": [100, 115]}, {"key": "exhibit-1", "type": "definition", "offset": [132, 141]}], "snippet": "The Maximum Service Rates shall be adjusted for 900 each Agreement Year effective March 1st of each applicable year as set forth in Exhibit 1.", "hash": "564852e72b49f58010442fa2ae876c43", "id": 9}, {"samples": [{"hash": "cJSwulFQhud", "uri": "/contracts/cJSwulFQhud#initial-adjustment", "label": "Asset Purchase Agreement (McGrath Rentcorp)", "score": 32.3620807666, "published": true}], "size": 1, "snippet_links": [{"key": "prior-to-the-closing-date", "type": "clause", "offset": [28, 53]}, {"key": "the-seller-shall", "type": "clause", "offset": [55, 71]}, {"key": "to-the-buyer", "type": "clause", "offset": [80, 92]}, {"key": "written-statement", "type": "clause", "offset": [95, 112]}, {"key": "estimated-balance-sheet", "type": "definition", "offset": [134, 157]}, {"key": "of-the-seller", "type": "clause", "offset": [158, 171]}, {"key": "with-respect-to", "type": "clause", "offset": [172, 187]}, {"key": "the-acquired-assets", "type": "clause", "offset": [188, 207]}, {"key": "assumed-liabilities", "type": "clause", "offset": [216, 235]}, {"key": "as-of-the-closing-date", "type": "clause", "offset": [236, 258]}, {"key": "the-transaction", "type": "clause", "offset": [289, 304]}, {"key": "in-good-faith", "type": "definition", "offset": [315, 328]}, {"key": "in-accordance-with", "type": "definition", "offset": [333, 351]}, {"key": "working-capital-principles", "type": "definition", "offset": [356, 382]}, {"key": "estimated-closing-balance-sheet", "type": "clause", "offset": [389, 420]}, {"key": "calculation-of-net-working-capital", "type": "clause", "offset": [465, 499]}, {"key": "estimated-working-capital", "type": "clause", "offset": [579, 604]}, {"key": "the-net", "type": "clause", "offset": [639, 646]}, {"key": "estimated-net-working-capital-adjustment", "type": "clause", "offset": [680, 720]}], "snippet": "At least five Business Days prior to the Closing Date, the Seller shall deliver to the Buyer a written statement setting forth (a) an estimated balance sheet of the Seller with respect to the Acquired Assets and the Assumed Liabilities as of the Closing Date, but without giving effect to the Transaction, prepared in good faith and in accordance with the Working Capital Principles (the \u201cEstimated Closing Balance Sheet\u201d), (b) an estimated and reasonably detailed calculation of Net Working Capital prepared in good faith in accordance with the Working Capital Principles (the \u201cEstimated Working Capital\u201d) and a corresponding estimate of the Net Working Capital Adjustment (the \u201cEstimated Net Working Capital Adjustment\u201d)", "hash": "cb71b94bbccb8914b03f5e6cea389722", "id": 10}], "next_curs": "ClsSVWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjcLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ihtpbml0aWFsLWFkanVzdG1lbnQjMDAwMDAwMGEMogECZW4YACAA", "clause": {"parents": [["group-insurance", "GROUP INSURANCE"], ["survival", "Survival"], ["management-fee-held-unlawful", "Management Fee Held Unlawful"], ["price-and-adjustments", "Price and Adjustments"], ["price-adjustments", "Price Adjustments"]], "title": "Initial Adjustment", "children": [], "size": 35, "id": "initial-adjustment", "related": [["additional-adjustment", "Additional Adjustment", "Additional Adjustment"], ["proportional-adjustment", "Proportional Adjustment", "Proportional Adjustment"], ["rental-adjustment", "RENTAL ADJUSTMENT", "RENTAL ADJUSTMENT"], ["annual-adjustment", "Annual Adjustment", "Annual Adjustment"], ["cpi-adjustment", "CPI Adjustment", "CPI Adjustment"]], "related_snippets": [], "updated": "2025-07-07T12:37:54+00:00", "also_ask": ["What are the most negotiable elements in an Initial Adjustment clause?", "Which drafting components are essential to prevent ambiguity or disputes?", "What common risks or loopholes could undermine enforceability?", "How does this clause compare to standard market practice or statutory requirements?", "What factors do courts consider when determining the validity of an Initial Adjustment clause?"], "drafting_tip": "Specify the adjustment method, set clear timing, and define calculation metrics to ensure predictability, prevent disputes, and facilitate enforceability.", "explanation": "The Initial Adjustment clause establishes the process for making preliminary changes to certain terms, such as pricing, quantities, or timelines, at the outset of an agreement. Typically, this clause allows parties to review and modify initial estimates or assumptions based on updated information or actual conditions encountered after the contract is signed but before full performance begins. Its core practical function is to ensure that the contract reflects accurate and fair terms from the start, thereby reducing the risk of disputes or imbalances caused by outdated or incorrect initial data."}, "json": true, "cursor": ""}}