CapEx Commitment Clause Samples
A CapEx Commitment clause defines the obligation of one or both parties to invest a specified amount in capital expenditures during the term of an agreement. This typically involves setting minimum spending thresholds for equipment, infrastructure, or facility improvements, and may require periodic reporting or proof of investment. The core function of this clause is to ensure that necessary investments are made to maintain or enhance operational capabilities, thereby protecting the interests of stakeholders and supporting the long-term objectives of the agreement.
CapEx Commitment. Each Lender severally agrees, on the terms and conditions set forth in this Agreement, to make CapEx Advances to the Borrower from time to time on any Business Day until the CapEx Commitment Termination Date; provided that after giving effect to such CapEx Advances, the sum of the aggregate outstanding amount of all CapEx Advances shall not exceed the aggregate CapEx Commitments in effect at such time. Each CapEx Borrowing (A) shall consist of CapEx Advances of the same Type made on the same day by the CapEx Lenders ratably according to their respective CapEx Commitments, (B) if the proceeds thereof are to be applied to fund or refinance the purchase of equipment from a vendor selling such equipment as part of its inventory, shall not exceed 80% of the Net Invoiced Cost of such equipment, and (C) if the proceeds thereof are to be applied to fund or refinance the purchase of equipment from a Person other than a vendor selling such equipment as part of its inventory, shall not exceed 80% of the NOLV of such equipment. The Borrower may not reborrow any CapEx Advances that have been repaid.
CapEx Commitment. The Borrower shall have the right, upon at least three Business Days’ irrevocable notice to the Administrative Agent, to terminate in whole or reduce in part the CapEx Commitments; provided that each partial reduction shall be in a minimum amount of $1,000,000 and in integral multiples of $1,000,000 in excess thereof. Furthermore, on the CapEx Commitment Termination Date, each Lender’s CapEx Commitment shall be reduced to zero. Any reduction or termination of the CapEx Commitments pursuant to this Section 2.1(c)(ii)(B) shall be applied ratably to each Lender’s CapEx Commitment and shall be permanent, with no obligation of the Lenders to reinstate such CapEx Commitments, and the applicable Commitment Fees shall thereafter be computed on the basis of the CapEx Commitments, as so reduced.
CapEx Commitment. (a) Each CAPEX Lender agrees to make CAPEX Draw Loans from time to time until the CAPEX Conversion Date in such Lender’s Pro Rata Share of such aggregate amounts as Borrower may request; provided that the CAPEX Draw Exposure will not at any time exceed CAPEX Draw Facility Commitment. Once CAPEX Draw Loans are made, such CAPEX Draw Loans may not be repaid and reborrowed.
(b) On the CAPEX Conversion Date, all CAPEX Draw Loans outstanding on such date shall be refinanced by the CAPEX Lenders with the CAPEX Term Loan. On the CAPEX Conversion Date, the CAPEX Draw Facility Commitment shall be automatically terminated, and, on and after the CAPEX Conversion Date, CAPEX Draw Loans shall no longer be available. Each CAPEX Lender agrees to participate in the making of the CAPEX Term Loan to Borrower on the CAPEX Conversion Date in the amount of such Lender’s Pro Rata Share of the CAPEX Commitment. The CAPEX Commitment of the Lenders to make the CAPEX Term Loan shall expire concurrently with the making of the CAPEX Term Loan on the CAPEX Conversion Date.
CapEx Commitment. W/C Commitment ----------------- ---------------- -------------- Paribas $ 166,668 $ 33,334 Bayerische Hypo- und Vereinsbank $ 166,666 $ 33,333 Rothschild $ 166,666 $ 33,333 ========== ========= Total Tranche E Commitments U.S. $ 500,000 U.S. $ 100,000
CapEx Commitment. The Borrower shall have the right, upon at least three Business Days’ irrevocable notice to the Administrative Agent, to terminate in whole or reduce in part the CapEx Commitments; provided that each partial reduction shall be in a minimum amount of $1,000,000 and in integral multiples of $1,000,000 in excess thereof. Furthermore, (1) on the CapEx Commitment Termination Date, each Lender’s CapEx Commitment shall be reduced to zero, and (2) with each CapEx Borrowing, each CapEx Lender’s CapEx Commitment shall be reduced by the amount of CapEx Advances funded by such Lender in connection with such CapEx Borrowing. Any reduction or termination of the CapEx Commitments pursuant to this Section 2.1(c)(ii)(B) shall be applied ratably to each Lender’s CapEx Commitment and shall be permanent, with no obligation of the Lenders to reinstate such CapEx Commitments, and the applicable Commitment Fees shall thereafter be computed on the basis of the CapEx Commitments, as so reduced.
CapEx Commitment