MINIMUM REDEMPTION; LIMITATIONS Sample Clauses
The "Minimum Redemption; Limitations" clause sets a baseline amount or threshold that must be met before a party can redeem or withdraw funds, shares, or other interests from an agreement or investment. Typically, this clause specifies the smallest allowable redemption amount and may also outline restrictions on the frequency or timing of redemptions, such as prohibiting redemptions below a certain dollar value or within a specific period. Its core function is to prevent administrative burdens and costs associated with processing small or frequent redemptions, thereby ensuring operational efficiency and stability for the entity managing the redemptions.
MINIMUM REDEMPTION; LIMITATIONS. If the events specified in Section 18.1(i) and 18.1(ii), with Section 18.1(ii) being determined on an individual Stockholder basis, have not occurred within the time specified, AmPaM shall be obligated to purchase from each eligible Stockholder no less than 10% of the AmPaM Stock held by such Stockholder annually; provided, however, that the Stockholders shall not be entitled to exercise their Put Rights if and to the extent the Company has not achieved the Target Net Income (as defined in Annex I hereto) for the year preceding the year in which a Stockholder seeks to exercise his Put Right. The redemptions will be funded by internal cash flows or alternative financing arrangements but AmPaM's obligation to make any redemption pursuant to this Section 18 will be subject to the covenants and restrictions contained in AmPaM's then existing private or public debt or equity instruments.