Capital Priority Right Clause Samples

Capital Priority Right. (i) Lennar shall have the right (the “Capital Priority Right”) to utilize the Reserved Priority Amount (defined below) determined as of any given Reservation Date (defined below) for admitting Properties into the Program, up to a total priority amount calculated as (a) the initial capital amount of $[8,000,000,000] (the “Initial Capital Amount”) plus (b) 50% of any additional capital (whether debt, excluding Revolving Debt (defined below), or equity) raised by Owner following the date hereof, excluding any capital specifically raised in connection with a specific transaction with a non-Lennar Party plus (c) an annual growth rate of 5% of the sum of the foregoing (a) and (b), compounded annually (the “Priority Amount”). Lennar may elect to utilize all or a portion of the Priority Amount by exercising its Capital Priority Right every Reservation Date (as defined below) and the period between successive Reservation Dates shall be referred to as the “Reservation Period”. “Revolving Debt” shall be any revolving credit facility to be used for working capital not to exceed $2,000,000,000, unless approved by Lennar. For purposes of this Agreement, the first “Reservation Date” shall be the date hereof. As of the date hereof, the Priority Amount is [$___] of which ▇▇▇▇▇▇ has elected to utilize [$___], as reflected in a plan submitted to Owner prior to the date hereof. The second Reservation Date shall be the first day of Lennar’s fiscal quarter that commences at least six (6) calendar months after the first Reservation Date. Thereafter, Reservation Dates shall occur on the first day of every second Lennar fiscal calendar quarter. By way of example, if the first Reservation Date occurs on November 15, 2024, then the next Reservation Date would be June 1, 2025, the following Reservation Date would be December 1, 2025, and Reservation Dates thereafter would occur on June 1 and December 1 of each subsequent year.