Reserve Adjustment Sample Clauses
A Reserve Adjustment clause defines the process by which financial reserves set aside for specific obligations or contingencies may be modified during the term of an agreement. Typically, this clause outlines the circumstances under which the reserve amount can be increased or decreased, such as changes in estimated liabilities, regulatory requirements, or actual losses incurred. Its core function is to ensure that the reserved funds accurately reflect current risk exposures, thereby maintaining financial stability and transparency between the parties.
Reserve Adjustment. (A) Subject to Section 2(d)(iv)(C) below, within twenty (20) days after the date that is 9 months following the Closing Date, Buyer may prepare and deliver at its sole discretion to Seller a report setting forth the Preliminary Reserve Activity (the “Reserve Report”). Following delivery of the Reserve Report, the Final Reserve Report and the Final Reserve Activity shall be determined in accordance with the procedures set forth in Section 2(d)(vi) below. For purposes of determining the Preliminary Reserve Activity and the Final Reserve Activity, the following provisions shall apply: (i) any charge made against the End-of-Life component of the Accrued Sales Return Reserve shall be based on activity during the nine month period following the Closing Date that is specifically attributable to products shipped or sold on or prior to the Closing Date; (ii) any charges made against the Defective RMA or Slow-moving Inventory components of the Accrued Sales Return Reserve shall be based on all activity during the five month period following the Closing Date, regardless of whether such activity can be attributed to products shipped or sold on, before or after the Closing Date; (iii) the total number of units charged against the Accrued Sales Return Reserve shall in no event exceed, for all Inventory Categories, the Final Inventory Level for all Inventory Categories minus the number of units of the respective Inventory Categories sold through to end-users during the five month period following the Closing Date; (vi) no charges
Reserve Adjustment. The reserve adjustments for reinsurance under this Agreement on a YRT Plan of Reinsurance shall be as stipulated in the relevant Exhibit.
Reserve Adjustment. Current Reinsurance Agreement
Reserve Adjustment. (a) Within 30 days after the Reserve Date, Purchaser will prepare and deliver, or cause to be prepared and delivered, to the Securityholders’ Representative, at Purchaser’s expense, an unaudited statement (the “Reserve Statement”), which shall set forth in good faith and reasonable detail (i) the net proceeds received by or on behalf of the Company from collections of the Reserved A/R through the Reserve Date (the “Collected Reserved A/R”), (ii) the net proceeds received by or on behalf of the Company from collections of the Reserved Deferred Revenue (the “Collected Deferred Revenue”), (iii) the net proceeds received by or on behalf of the Company from sales of the Reserved Inventory through the Reserve Date (the “Collected Reserved Inventory”), and (iv) the amounts recognized as income through the Reserve Date on account of the Reserved Continental Deferred Revenue (the “Collected Continental Deferred Revenue”). During the period from Closing through the Reserve Date, the Purchaser shall exercise commercially reasonable efforts to collect the Collected Reserved A/R, the Collected Deferred Revenue and the Collected Reserved Inventory and to recognize into income the Collected Continental Deferred Revenue. The Securityholders’ Representative and its Representatives shall have the right to review, at the Securityholders’ Representative’s expense, any of the applicable books, records and work papers relating to the preparation of the Reserve Statement; provided, however, that to the extent such books, records and work papers include confidential or proprietary information, Purchaser may condition any such review of the books, records and work papers upon the Securityholders’ Representative and its Representatives executing a mutually satisfactory and customary confidentiality agreement to keep all matters disclosed under this Section 4.4 confidential, provided, further, than any delays as a result of such requirement shall automatically extend the applicable objection period for the Securityholders’ Representative. Within 45 calendar days after the date that the Securityholders’ Representative receives the Reserve Statement, the Securityholders’ Representative will advise Purchaser in writing that the Securityholders’ Representative either (i) agrees that the Reserve Statement was prepared in accordance with the first sentence of this Section 4.4 or (ii) does not agree that such Reserve Statement was so prepared, in which event the Securityholders’ Representa...
Reserve Adjustment. Based on Seller's reserve analyses completed for calendar year 2002, a calculation of the reserve adjustment for increases (compared to the amounts therefor set forth on the audited TSL balance sheet at December 31, 1999) in ultimate estimated liabilities relating to 1999 and prior accident years (the "Reserve Adjustment Increase Amount") will be completed. Following completion of the calculation, Buyer will tender immediately available funds to Seller in an amount equal to the Reserve Adjustment Increase Amount within 30 days after receiving written request therefor from Seller. In the event that the Reserve Adjustment Increase Amount would otherwise be a negative number, the Reserve Adjustment Increase Amount shall be deemed to be zero.