Mandatory Investments Clause Samples
The Mandatory Investments clause requires parties to commit to making specified investments as outlined in the agreement. This typically involves a contractual obligation for one or more parties to contribute a certain amount of capital, resources, or assets within a defined timeframe or according to a set schedule. For example, a partner in a joint venture may be required to invest a minimum sum annually to maintain their stake. The core function of this clause is to ensure that all parties fulfill their financial or resource commitments, thereby supporting the project's success and preventing underfunding or non-participation.
Mandatory Investments. On or prior to the dates indicated in the table below, ITG shall obtain, and shall contribute the same to US Borrowers to be used for purposes permitted by this Agreement, not less than the following amounts in gross cash proceeds from the issuance of Stock and Stock Equivalents to WLR and other Persons: March 2, 2007 $ 50,000,000 May 1, 2007 $ 50,000,000 ”
Mandatory Investments. On or prior to the dates indicated in the table below, ITG shall obtain, and shall contribute the same to Borrowers to be used for purposes permitted by this Agreement, not less than the following amounts in gross cash proceeds from the issuance of Stock and Stock Equivalents to WLR and other Persons: March 2, 2007 $ 50,000,000 June 8, 2007 $ 50,000,000 Notwithstanding the foregoing, Agent and Lenders acknowledge and agree that ITG shall not be required to make the $50,000,000 minimum equity contribution due on or prior to June 8, 2007 if ITG shall have consummated the issuance of Subordinated Indebtedness in the initial principal amount of at least $80,000,000 on or prior to June 8, 2007; provided, however, that in the event ITG has not consummated such an issuance on or prior to June 8, 2007, the $50,000,000 minimum equity contribution shall be immediately due and payable on June 8, 2007.
Mandatory Investments. 3 Section 2.1 Leverage Reduction in Connection with Covenant Defaults..3 Section 2.2 Leverage Reduction in Connection with Shirt Group Sale...3 Section 2.3 Leverage Reduction in Bankruptcy.........................3 Section 2.4 Limitation on Investment Obligations.....................4 SECTION 3 CONDITIONS...........................................................4 Section 3.1 Conditions to Effectiveness..............................4 SECTION 4 DEPOSIT OF CAPITAL CALL NOTICES WITH AGENT...........................5 Section 4.1 Deposit of Capital Call Notices..........................5
Mandatory Investments. US Warburg hereby agrees that, to the extent that Holdback Merger Consideration becomes payable from time to time by the Borrower pursuant to the terms of the Side Letter, then US Warburg shall immediately make (or cause other investors in the Parent to immediately make) a Mandatory Investment.
Mandatory Investments. Section 2.1 Leverage Reduction relating to Shirt Group Restructuring or Vestar Default. --------------------------------------------------------------------
(a) In the event that the Leverage Reduction Requirements shall not have been satisfied by the last day of the Leverage Reduction Period, the Sponsor shall make a Mandatory Investment on such day in an amount equal to (i) if the Shirt Group Restructuring shall have been consummated by such date, the amount necessary (after giving effect to all prepayments made pursuant to Section 3.3(b)(iii)(A) of the Credit Agreement after the Amendment No. 5 Effective Date through and including such date) to enable satisfaction of the Leverage Reduction Requirements or (ii) if the Shirt Group Restructuring shall not have been consummated by such date, the then current Investment Commitment.
(b) Upon the occurrence of any Event of Default hereunder, the Sponsor immediately shall, upon written demand by the Agent, make a Mandatory Investment in an amount equal to the then current Investment Commitment.
(c) The Sponsor may, at its option, in lieu of making a Mandatory Investment required by Section 2.1(a)(i), pay directly to the Agent and direct the Agent to purchase on behalf of the Sponsor, on or before the time that such Mandatory Investment is required to be made, an undivided, non-voting participation interest in the Credit Party Obligations then outstanding under the Credit Documents for a purchase price equal to the amount of the Mandatory Investment that otherwise would have been required. The Sponsor may, at its option, in lieu of making a portion of the Mandatory Investment required by Section 2.1(a)(ii) in an amount equal to the amount of the prepayment required to be made on the last day of the Leverage Reduction Period pursuant to Section 3.3(c) of the Credit Agreement, pay directly to the Agent and direct the Agent to purchase on behalf of the Sponsor, on or before the time that such Mandatory Investment is required to be made, an undivided, non-voting participation interest in the Credit Party Obligations then outstanding under the Credit Documents for a purchase price equal to the amount of the prepayment required to be made on the last day of the Leverage Reduction Period pursuant to Section 3.3(c) of the Credit Agreement. Any participation interest in the Credit Party Obligations acquired on behalf of the Sponsor in accordance with the terms of this Section 2.1(c) shall be subject to an intercreditor a...