Net Asset Event Sample Clauses
A Net Asset Event clause defines the circumstances under which the net assets of a party, typically a company, are evaluated or triggered for specific contractual consequences. This clause may apply in situations such as insolvency, liquidation, or significant changes in the value of a party's assets, and it often outlines the process for calculating net assets and the resulting actions, such as early termination or adjustment of obligations. Its core function is to protect parties by providing a clear mechanism for addressing financial instability or material changes in asset value, thereby allocating risk and ensuring contractual certainty in the face of significant financial events.
Net Asset Event. Client's Net Asset Value on any Business Day has declined by (i) 20% or more from Client's Net Asset Value on the last Business Day of the immediately preceding calendar month; (ii) 30% or more from Client's Net Asset Value on the last Business Day of the third calendar month immediately preceding such Business Day; or (iii) 40% or more from Client's Net Asset Value on the last Business Day in the same month in the immediately preceding calendar year (each a "Net Asset Event"); or