Call Mechanics Clause Samples
The Call Mechanics clause defines the procedures and requirements for exercising a call option, typically in the context of financial instruments or contracts. It outlines the steps a party must follow to initiate a call, such as providing notice within a specified timeframe and fulfilling any payment or documentation obligations. This clause ensures that both parties understand the exact process for executing a call, thereby reducing the risk of disputes and ensuring smooth, predictable transactions.
Call Mechanics. At any time after the Conversion Call is exercisable pursuant to Section 1(a) above, the Company, in accordance with the terms hereof, may exercise the Conversion Call, in whole but not in part by delivering to the Investor written notice of the election (the “Conversion Call Notice”), duly executed by the Company, with a representation by the Company that it has a good faith expectation that it will maintain or increase the regular $0.075 dividend rate over the following twelve (12) months. At the conclusion of such twelve (12) months if the regular dividend rate has not been maintained or increased, then the Conversion Call Notice shall terminate and no additional conversions of Preferred Shares shall be required with respect to that Conversion Call Notice.
Call Mechanics. Subject to the terms and provisions hereof, the Purchaser hereby agrees to buy, and NGL hereby agrees, pursuant to the authority granted to NGL in Section 5.6 of the Partnership Agreement to issue and sell to the Purchaser (the “Sellers’ Call”), in a single transaction, an amount of common units of NGL (the “Units”) at an aggregate purchase price between Forty-Five Million Dollars ($45,000,000) and Sixty Million Dollars ($60,000,000), to be paid in cash by the Purchaser at the closing of the Sellers’ Call (the “Call Closing”). The Purchaser shall have the sole discretion to choose the aggregate purchase price for the Units to be purchased pursuant to the Sellers’ Call (the “Aggregate Call Price”), subject to the required range set forth above. The precise number of Units to be purchased shall be determined by dividing the Aggregate Call Price by the Agreed Value; provided, however, NGL shall not be obligated to issue and the Purchaser shall not be obligated to acquire any fractional Units (such that the exact number of Units to be acquired shall be rounded up or down to the nearest whole Unit). The Purchaser hereby agrees to be bound by the terms of NGL’s partnership agreement upon issuance of the Units.