Optional Basis Adjustments Clause Samples
The "Optional Basis Adjustments" clause allows parties to modify the underlying terms or calculations used in a contract, typically in response to changes in external benchmarks or reference rates. In practice, this clause may permit adjustments to interest rates, payment schedules, or other financial metrics if the original basis becomes unavailable or is replaced. Its core function is to provide flexibility and ensure the contract remains fair and operational even when market standards or reference points change, thereby reducing uncertainty and potential disputes.
Optional Basis Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 734(b) or 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations.
Optional Basis Adjustments. To the extent an adjustment to the basis of any Company assets pursuant to Code Section 734(b) or 743(b) is required, pursuant to Treas. Reg. §1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of