Readjustment Option Sample Clauses
A Readjustment Option clause allows parties to modify certain terms of an agreement in response to specified changes in circumstances, such as fluctuations in market conditions, costs, or regulatory requirements. Typically, this clause outlines the process for initiating a readjustment, the factors that may trigger it, and the method for determining new terms, such as price or delivery schedules. Its core practical function is to provide flexibility and ensure fairness by enabling the contract to adapt to unforeseen changes, thereby reducing the risk of disputes or contract breaches due to rigid terms.
Readjustment Option. At the end of the primary term and at the end of each period of ten (10) years thereafter (“Readjustment Period”), Lessor may exercise its option to readjust the terms and conditions of this Lease, to obtain market value return to the Lessor, (including, without limitation: rental rates, minimum royalties, royalty rates, valuation methods, and provisions concerning reclamation). Notice of intent to exercise the right to readjust is timely given by Lessor if mailed prior to the end of the Readjustment Period to the last address set forth for Lessee in Lessor’s files. Lessor shall have up to one year after exercising its option to readjust to review and communicate in writing the final readjusted terms of the lease. If within thirty (30) days after submission of the readjusted lease terms to the Lessee, the Lessee determines that any or all of the proposed readjusted terms and conditions are unreasonable, then Lessee shall so notify Lessor in writing and the parties, acting reasonably, shall attempt to resolve the objectionable term or condition. If the parties are unable, acting reasonably, to resolve the matter and agree upon the readjusted terms and conditions as submitted by Lessor at the end of the Readjustment Period, Lessee shall forfeit any right to the continued extension of this lease, and the lease shall automatically terminate, provided that nothing herein shall be deemed to preclude Lessee from appealing any readjustment by Lessor pursuant to applicable law.