CALCULATION OF THE FORMULA PRICE Clause Samples

The 'Calculation of the Formula Price' clause defines how the price of a product or service will be determined using a specific formula rather than a fixed amount. Typically, this clause outlines the variables, indices, or market references that will be used in the calculation, and may specify how and when adjustments are made if those variables change. By providing a clear method for price determination, this clause ensures transparency and fairness in pricing, reducing the risk of disputes over how much is owed under the contract.
CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to the Base Price (Homeowner’s Purchase Price plus the Added Value,) plus the Inflation Adjustment, calculated as described below.
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to Lessee’s Purchase Price, as stated below, plus 25% of the increase in market value of the Improvements, if any, calculated in the way described below.
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CALCULATION OF THE FORMULA PRICE. For only the first sale after initial home construction, Owner’s Purchase Price shall be defined as: 1) The actual dollar amount that the owner paid for the land. 2) $15,000 Community Amenities fee. ($1000 for Water Reserve Fund is included in this fee.) 3) The appraised value of the home (excluding the land) at the time of completion. Appraisal costs to be borne by the Owner. For all future and subsequent sales, Owner’s Purchase Price shall be defined as: 1) The purchase price paid by the current owner/seller. The Formula Price shall be equal to Owner’s Purchase Price, as stated above, plus an escalating appreciation factor of one and a half percent (1.5 %) simple annum during each of the first ten
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be calculated as follows. A market valuation of the Leased Premises and Home shall be conducted in accordance with the instructions set forth in 10.5 above (the “Current Appraised Value”).
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to Lessee’s Purchase Price, as stated below, compounded annually by 1.5% from the time of purchase, plus a credit for Qualified Capital Improvements, if applicable, compounded annually by 1.5% from the time the Capital Improvement is completed, plus a credit for Capital Systems Replacement, if applicable, minus Deferred Maintenance, Neglect and Excessive Damage Value, if applicable, as determined by Lessor, plus any indebtedness owed to the Washington State Housing Finance Commission for sums loaned to Lessee through their House Key Plus CLT or HomeChoice loan programs as evidenced by the Promissory note of date. Lessee's Purchase Price: The parties agree that the Lessee’s Purchase Price for the Improvements existing on the leased premises as of the commencement of the term of this Lease is $ . Any agreements regarding credit for Qualified Capital Improvements and/or credit for Capital System Replacement must be signed by Lessor and Lessee, duly notarized and shall become a legal attachment to this Lease. The Formula Price determines the maximum price for which a home can be sold and is NOT a guarantee of expected sale price. Lessee freely agrees that this Formula Price constitutes a fair return to them and/or their successors for the opportunity to enter the local homeownership marketplace which, prior to the execution of this Lease, remained closed to them as a matter of limited financial resources.
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to (a) the amount of Homeowner’s Purchase Price (as stated above), plus (b) the total amount of any duly approved Capital Improvement Credits (determined in accordance with Section 10.11 below), plus (c) 25% of an amount equal to any increase in the appraised value of Homeowner’s Ownership Interest minus the amount of the Improvement credit, if any. The following worksheet is to be used to calculate the Formula Price as defined above: 1 Homeowner’s Purchase Price: from Section 10.9 above $ 2 Initial Appraised Value: from Section 10.9 above $ 3 Ratio of Homeowner’s Purchase Price to Initial Appraised Value: Divide line 1 by line 2 . % 4 Homeowner’s Initial Ownership Interest: Multiply line 2 by line 3 $ 5 Appraised Value at Time of Resale: Determined in accordance with Section 10.5 above $ 6 Homeowner’s Ownership Interest at Resale: Multiply line 5 by line 3 $ 7 Increase in Homeowner’s Ownership Interest: Subtract line 4 from line 6 $ 8 Capital Improvement Credit: Determined in accordance with Section 10.11 below $ 9 Amount of Increase in Homeowner’s Ownership Interest to be shared: subtract line 8 from line 7 (if result is negative, enter 0) $ 10 Homeowner’s Share of Increase in Homeowner’s Ownership Interest: Multiply line 9 by 25% (.25) $ 11 Resale Formula Price: Add lines 1, 8, and 10 $
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to ▇▇▇▇▇▇’s Purchase Price, as stated below, plus 25% of the increase in market value of the Land and Improvements, if any, calculated in the way described below.
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CALCULATION OF THE FORMULA PRICE. The Formula Price shall be equal to the Base Price (Homeowner’s Purchase Price as defined below plus the Inflation Adjustment, calculated as described below).
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Related to CALCULATION OF THE FORMULA PRICE

  • Determination of Fair Market Value For purposes of this Section 10.2, “fair market value” of a Share (or Common Stock if the Shares have been converted into Common Stock) as of a particular date (the “Determination Date”) shall mean: (i) If the Conversion Right is exercised in connection with and contingent upon a Public Offering, and if the Company’s Registration Statement relating to such Public Offering (“Registration Statement”) has been declared effective by the Securities and Exchange Commission, then the initial “Price to Public” specified in the final prospectus with respect to such offering. (ii) If the Conversion Right is not exercised in connection with and contingent upon a Public Offering, then as follows: (A) If traded on a securities exchange, the fair market value of the Common Stock shall be deemed to be the average of the closing prices of the Common Stock on such exchange over the five trading days immediately prior to the Determination Date, and the fair market value of the Shares shall be deemed to be such fair market value of the Common Stock multiplied by the number of shares of Common Stock into which each share of Series Preferred is then convertible; (B) If traded on the Nasdaq Stock Market or other over-the-counter system, the fair market value of the Common Stock shall be deemed to be the average of the closing prices of the Common Stock over the five trading days immediately prior to the Determination Date, and the fair market value of the Shares shall be deemed to be such fair market value of the Common Stock multiplied by the number of shares of Common Stock into which each Share is then convertible; and (C) If there is no public market for the Common Stock, then fair market value shall be determined by the Board of Directors of the Company in good faith. In making a determination under clauses (A) or (B) above, if on the Determination Date, five trading days had not passed since the closing of the Company’s initial public offering of its Common Stock (“IPO”), then the fair market value of the Common Stock shall be the average closing prices or closing bid prices, as applicable, for the shorter period beginning on and including the date of the IPO and ending on the trading day prior to the Determination Date (or if such period includes only one trading day, the closing price or closing bid price, as applicable, for such trading day). If closing prices or closing bid prices are no longer reported by a securities exchange or other trading system, the closing price or closing bid price shall be that which is reported by such securities exchange or other trading system at 4:00 p.m. New York City time on the applicable trading day.