Maximum Exchangeable Amount Sample Clauses
The Maximum Exchangeable Amount clause sets a cap on the total value or quantity of assets, funds, or items that can be exchanged under the terms of an agreement. In practice, this means that even if parties wish to exchange more, the contract restricts them to a predetermined upper limit, such as a maximum number of shares or a fixed monetary amount. This clause is essential for managing risk and ensuring predictability, as it prevents excessive or unintended exchanges that could expose either party to unforeseen liabilities or financial exposure.
Maximum Exchangeable Amount. The Company may set a maximum aggregate number or dollar value of Exchangeable Units that may be exchanged by the Exchanging Holders on a Quarterly Exchange Date (the “Maximum Exchangeable Amount”) and shall include the applicable Maximum Exchangeable Amount in the applicable Quarterly Exchange Date Notice. If the aggregate number or dollar value of Exchangeable Units that the Exchanging Holders propose to exchange on the Quarterly Exchange Date (as set forth on the Elective Exchange Notices) exceeds the Maximum Exchangeable Amount, then the number or dollar value of Exchangeable Units that each Exchanging Holder specified in its Elective Exchange Notice shall be reduced by the same percentage by which the aggregate number or dollar value of Exchangeable Units of all Exchanging Holders is reduced so that the aggregate number or dollar value of Exchangeable Units does not exceed the Maximum Exchangeable Amount.