Increase in Purchase Limit Clause Samples
The 'Increase in Purchase Limit' clause allows for the adjustment of the maximum amount a party is permitted to purchase under an agreement. Typically, this clause outlines the conditions or procedures required to raise the purchase cap, such as mutual consent, written notice, or meeting certain performance criteria. Its core function is to provide flexibility in commercial arrangements, enabling parties to respond to changing business needs without renegotiating the entire contract.
Increase in Purchase Limit. The Seller may, on any Business Day prior to the Facility Termination Date, with the written consent of the Administrator (not to be unreasonably withheld or delayed), request an increase of the Purchase Limit by delivering a request substantially in the form attached hereto as Annex G (each, a “Purchase Limit Increase Request”) or in such other form acceptable to the Administrator, at least ten (10) Business Days prior to the desired effective date of such increase (the “Purchase Limit Increase”) identifying the additional Purchaser(s) (or, with the written consent of the applicable Purchaser Agent and Related Committed Purchaser(s) or related LC Participant, additional Commitments for existing Purchaser(s)) and the related Purchaser Group(s), which additional Purchaser(s) shall be reasonably acceptable to the Administrator (other than in the case of the existing Purchaser(s), which shall be deemed acceptable), and the amount of its Commitment (or additional amount of the Commitment(s) of the existing Purchaser(s)); provided, however, that:
(a) the aggregate amount of all Purchase Limit Increases shall not exceed $100,000,000 and any such Purchase Limit Increase shall be in an amount not less than $10,000,000 (or such lesser amount then agreed to by the Administrator);
(b) no Unmatured Termination Event or Termination Event shall have occurred and be continuing at the time of the request or the effective date of the Purchase Limit Increase;
(c) the representations and warranties of the Seller contained in Exhibit III of this Agreement are true and correct in all material respects on and as the date of such purchase or reinvestment as though made on and as of such date (except for representations and warranties which apply as to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date); and
(d) the conditions set forth in clause 2 of Exhibit II shall be satisfied. The effective date of the Purchase Limit Increase shall be agreed upon by the Seller and the Administrator. Upon the effectiveness thereof, the new Purchaser (or, if applicable, existing Purchaser) shall make Purchases in an amount sufficient such that after giving effect to its Purchases each Purchaser Group shall have outstanding its Ratable Share of the Aggregate Capital outstanding. The Seller agrees to pay the expenses of the Administrator (including reasonable attorneys’ fees) relating to any Purchase Limit Increase. Notwithstandin...
Increase in Purchase Limit. Section 1.24