Reinvestment Right definition

Reinvestment Right shall have the meaning provided in Section 5.2(a)(iii).

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Reinvestment Right means the right of the Borrower and its Material Subsidiaries to, within 365 days after the receipt of any Net Proceeds from an Asset Sale, (a) apply such Net Proceeds, at the Borrower’s or such Material Subsidiary’s option to (i) acquire all or substantially all of the assets of, or a majority of the Voting Stock of, another Permitted Business, or Voting Stock of a Material Subsidiary engaged in a Permitted Business (other than any such Voting Stock owned or held by a Subsidiary), (ii) to make a capital expenditure, or (iii) to acquire other assets that are used or useful in a Permitted Business that have an expected useful life of one year or longer, or (b) enter into a legally binding agreement to apply such Net Proceeds as described in the preceding clause (a) within six months after such agreement is entered into and apply such Net Proceeds in accordance with the terms of such agreement or the provisions of clause (a) above; provided that if such agreement terminates the Borrower shall have until the earlier of (x) 90 days after the date of such termination and (y) six months after the date of the Asset Sale resulting in such Net Proceeds to effect such an application.

Reinvestment Right shall have the meaning set forth in the definition of “Net Cash Proceeds.”

Examples of Reinvestment Right in a sentence

Investor may exercise the Reinvestment Right by reinvesting up to the Reinvestment Amount in increments of $250,000.00 each (such that each reinvestment transaction is a multiple of $250,000.00) in one (1) transaction or multiple transactions.
Company agrees to seek stockholder approval of the Note and the issuance of Conversion Shares (as defined in the Note) under the Note and the Reinvestment Right (as defined in the Purchase Agreement) in excess of the Exchange Cap (the “Approval”) within 120 days of the Purchase Price Date.
For the avoidance of doubt, the provisions of this Section 9 would apply to the issuance of any additional debt securities to Investor pursuant to the Reinvestment Right.
The floor price of any new Convertible Promissory Note issued in connection with the Reinvestment Right will be equal to 20% of the Nasdaq minimum price on the Trading Day immediately preceding the issuance date.
Upon each exercise of the Reinvestment Right, the Floor Price will automatically reset to 20% of the Nasdaq minimum price at the time of the exercise (the “Adjusted Floor Price”) if at such time the Adjusted Floor Price is less than the then-current Floor Price (each such instance of adjustment, a “Floor Price Adjustment”); provided, however, that Company’s consent will be required to make a Floor Price Adjustment.
For the avoidance of doubt and subject to the other terms and provisions of the Transaction Documents, the Reinvestment Right will not prevent a payoff or refinancing of the Note.
Notwithstanding the fact that Request #1 originated from Company, Investor agrees that following the issuance by Company of the Series 2 Stock pursuant to Request #1, the amount of the Reinvestment Right will be reduced by $1,000,000.
Company’s breach of its obligations with respect to the Reinvestment Right will not be considered an Event of Default (as defined in the Note) under the Note.
Within twenty (20) days after DFG provides such information, the Shareholder shall provide written notice of whether it intends to exercise the Reinvestment Right and the dollar amount of the Shareholder's investment.
The parties agree that the Reinvestment Right will supersede and replace the reinvestment right granted to Investor in connection with its prior purchase of Series 1 Shares.

More Definitions of Reinvestment Right

Reinvestment Right means the right of the Borrower and its Subsidiaries to, within 90 days after the receipt of any Net Proceeds from an Asset Sale, apply such Net Proceeds, at the Borrower’s or such Subsidiary’s option, to (i) make a capital expenditure or (ii) acquire other assets that are used or useful in a Permitted Business that have an expected useful life of one year or longer.

Reinvestment Right defined in Section 5.14.